Agenda packet, regular meeting — San Mateo City Council, April 15, 2024 (part 1 of 2)

CITY OF SAN MATEO
City Council Regular Meeting
April 15, 2024
7:00 PM
City Hall Council Chamber
Entrance is on O’Farrell Street

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

AGENDA
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April 15, 2024
To join via telephone: (408) 638-0968
Webinar ID: 850 2950 7140 Passcode: 053043
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
AB 2449 Requests and Considerations for Meeting Participation by Teleconference due to Just Cause or Emergency Circumstances

CEREMONIAL

1. City Clerk Patrice M. Olds – Commendatory Retirement Resolution

2. Dispatcher Appreciation Week – Proclamation

3. Volunteer Appreciation Week - Recognition

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. Citywide Small Trash Capture Project – Agreement
Approve an agreement with United Storm Water, Inc. for the Citywide Small Trash Capture Project in the amount of $697,277; establish a contingency reserve in the amount of $105,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue change orders as allowed by the contract documents and within the contingency amount.

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.)

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5. Shoreview Park Restroom Remodel – Construction Contract Adopt a Resolution to approve an alternative purchasing procedure to award a construction contract to Angeles Contractor, Inc. in the amount of $379,386.64; approve the construction contract and establish a contingency reserve in the amount of $57,000; and authorize the Public Works Director to execute the contract in substantially the form presented and issue change orders within the contingency amount.

6. Temporary Standby Generator for Dale Avenue Pump Station Upgrade – Change Order Approve Contract Change Order No. 4 to the Agreement with Herc Rentals, Inc. for a temporary emergency standby generator to support the Dale Ave Pump Station Upgrade project in an amount not to exceed $66,565.48, increasing the total agreement amount to $569,608.17; add $45,000 to the contingency reserve; extend the Agreement term to July 31, 2024; and authorize the Public Works Director to execute the change order in substantially the form presented and issue change orders within the contingency amount.

CEQA: The work addressed by this administrative report is being undertaken to support the Clean Water Program.

This project is subject to the requirements of the California Environmental Quality Act (CEQA), the general components of which are included as part of the Final Programmatic Environmental Impact Report (Final PEIR) (SCH No. 201532006) that was prepared for the Clean Water Program. The Final PEIR was certified by City Council on June 6, 2016.

7. 2024 Annual Investment Policy – Approval
Adopt a Resolution to approve the City of San Mateo 2024 Investment Policy CEQA: This 2024 Investment Policy 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. Enterprise Resource Planning Software Project - Supplemental Budget Appropriation and Change Orders Adopt a Resolution to approve a supplemental budget appropriation of $211,305 of unassigned fund balance from the Equipment Replacement Fund to increase the budget for the Enterprise Resource Planning Software Project; approve Change Order No. 7 to the master services agreement with Collaborative Solutions, LLC for ERP implementation services in the amount of $396,705, for a new agreement total of $4,539,370; approve Change Order No. 443997 to the master subscription agreement with Workday, Inc. for delivery assurance services in the amount of $24,600, for a new agreement total of $177,355; and authorize the City Manager to execute the Change Orders in substantially the form presented.

CEQA: Approval of the change orders for ERP implementation support is not subject to CEQA review under the common sense exemption in it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (CEQA Guidelines Section 15061.) In addition, approval of a supplemental budget appropriation for the Project is not subject to CEQA review in that it consists of 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).

9. City Council Priority List – Adoption
Adopt the City Council Priority List for fiscal year 2024-25.

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CEQA: This City Council Priority List 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).)

10. B Street Pedestrian Mall Improvements Project – Bid Rejection Adopt a Resolution to reject all bids received for the B Street Pedestrian Mall Improvements Project; and authorize the Public Works Department to initiate a second Notice Inviting Bids.

CEQA: This project is categorically exempt from CEQA as a project that has been disapproved. (CEQA Guidelines Section 15270.)

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.

11. Fiscal Year 2024-25 Comprehensive Fee Schedule – Approval Adopt a Resolution to approve the revisions to the proposed fiscal year 2024-25 Comprehensive Fee Schedule.

CEQA: This Comprehensive Fee Schedule update for fiscal year 2024-25 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

12. 2024-29 Capital Improvement Plan Preview
Receive a preview and provide feedback on the 2024-29 Capital Improvement Plan.

CEQA: This budget preview is not a project subject 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).)

13. General Fund 2024-25 Operating Budget – Preview and General Fund Ten-Year Forecast Receive the General Fund 2024-25 operating budget preview and General Fund ten-year forecast CEQA: This report 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).)

14. City Manager, City Attorney, Department Head and Deputy Director Compensation Plan – Amendment Adopt a Resolution to amend the Compensation Plan to: 1) add Juneteenth, June 19th as an annual holiday; 2) increase the salary range for the Police Chief classification; and 3) increase the salary range for the Human

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Resources Director classification.

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

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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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.

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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.

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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: 4 Section Name: CONSENT CALENDAR Account Number: 21-4678 File ID: 24-8556 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: April 15, 2024
SUBJECT:

Citywide Small Trash Capture Project – Agreement
RECOMMENDATION:

Approve an agreement with United Storm Water, Inc. for the Citywide Small Trash Capture Project in the amount of $697,277; establish a contingency reserve in the amount of $105,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue change orders as allowed by the contract documents and within the contingency amount.

BACKGROUND:

The San Francisco Bay Regional Water Quality Control Board (Regional Board) has mandated the City of San Mateo (City) to reduce trash discharged to the San Francisco Bay through the City’s storm drain system based on a 2009 baseline trash generation rate. The permit requires a 100% reduction rate, relative to the 2009 baseline values, by June 30, 2025.

To date, the City has achieved approximately 87% reduction through the following methods: existing trash capture devices, source control measures, creek and shoreline cleanups, street sweeping, and other control mechanisms. The credits for jurisdiction-wide source control efforts and creek and shoreline cleanups will no longer count toward compliance after June 30, 2025. In order to ensure the City achieves the 100% trash reduction mandate by June 30, 2025, the City must install additional trash capture devices in strategic trash generation areas throughout the City. Non- compliance with trash reduction targets can result in enforcement actions or fines from the Regional Board, or other exposures.

The Citywide Small Trash Capture Project (Project) is designed to satisfy Regional Board requirements, bringing the City closer to the required 100% reduction by installing approximately 450 small trash capture inlet devices at strategic trash generation areas throughout San Mateo.

The Project was advertised on February 8, 2024, and a total of six (6) bids were received and opened on March 7, 2024.

The bids received are listed below in order of increasing bid amount.

Company Name Total Bid Amount
United Storm Water Inc. $697,277.00
GSW Construction $830,020.00
ETIC $987,449.38
Cazadoro Construction $1,206,600.00
Golden Bay Construction $1,283,426.00
Ghilotti Bros $1,329,000.00

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CITY OF SAN MATEO
The engineer’s estimate is $1,470,000. Staff reviewed the bids and determined that United Storm Water Inc. is the lowest responsive, responsible bidder and recommends for it be awarded the construction contract. Staff is requesting a larger contingency amount of 15% to cover potential unexpected storm drainage system site conditions given the volume of devices to be installed Citywide. In addition, staff may need to make minor modifications or replace existing storm drain inlets at some locations to allow installation of the small trash capture devices.

BUDGET IMPACT:

There are sufficient funds in Project #46C001 to fund this work in the amount of $697,277.00 and the contingency reserve of $105,000.00 for a total of $802,277.00.

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 Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Agreement

STAFF CONTACT
Jimmy Vo, Senior Engineer
[email protected]
(650) 522-7319

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AGREEMENT

AGREEMENT WITH UNITED STORM WATER, INC.

FOR PUBLIC IMPROVEMENT
FOR

CITYWIDE SMALL TRASH CAPTURE PROJECT
CITY PROJECT NO. 46C001-46000-0005-46350

THIS AGREEMENT FOR PUBLIC IMPR OVEMENTS (“Agreement”), made and entered into in the City of San Mateo, County of San Mateo, State of Cali fornia, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California, (hereinafter called "City") and UNITED STORM WATER , a corporation, with offices at 14000 E. Valley Bl vd., City of Industry, CA 91746 (hereinaft er called "Contractor" ), entered into this day of ___________________.

RECITALS:

(a) City has taken appropriate proceedings to authorize construction of the public work and improvements or other matters herein provided, and execution of this Agreement.

(b) A notice was duly published for bids for the contract for the improvement hereinafter described.

(c) After notice duly given, on the date hereof, the City awarded the contract for the construction of the improvements hereinafter described to Contractor.

IT IS AGREED, as follows:

1. Scope of Work. Contractor shall perform the work according to the Contract Book entitled:

CITYWIDE SMALL TRASH CAPTURE PROJECT

CITY PROJECT NO. 46C001-46000-0005-46350

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2. Contract Price. City shall pay, and the Contractor shall accept, the sum of SIX-HUNDRED NINETY- SEVEN THOUSAND TWO-HUNDRED AND SEVENTY-SEVEN ($697,277.00) in full payment for the work set forth above.

Said price is determined by the prices contained in Contractor's bid, and shall be paid as described in the Contract Book. In the event work is performed or materials furnished in addition to or a reduction of those set forth in Contractor's bid and the specifications herein, such work and materials will be paid for as described in the Contract Book.

3. The Contract Documents. The complete contract consists of the following documents: this Agreement; the Notice Inviting Sealed Proposals; the Accepted Proposal; the Contract Book which includes the Special Provisions and Contract Drawings, Addendum Number 1 issued to the Contract Book, the APWA-AGC Standard Specifications for Public Works Construction, 2015 Edition, the Faithful Performance Bond, and the Labor and Material Bond (hereinafter referred to as the “contract documents”).

All rights and obligations of City and Contractor are fully set forth and described in the contract documents. The contract documents constitute the entire contract between the parties hereto pertaining to the subject matter hereof, fully supersede any and all prior understandings, representations, warranties and agreements between the parties hereto, or any of them, pertaining to the subject matter hereof, and may be modified only by written agreement signed by all of the parties hereto.

All of the above-named documents are complementary and are intended to operate in harmony, so that any work called for in one, and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. In the event of any variation or discrepancy between any portion of this Agreement and any portion of the contract documents, this Agreement shall prevail.

The precedence of the remaining contract documents will be as specified in the Contract Book.

4. Schedule. All work shall be performed in accordance with the schedule provided pursuant to the Contract Book.

5. Performance by Sureties. In the event of any termination as hereinbefore provided, City shall immediately give written notice thereof to Contractor and Contractor's sureties, and the sureties shall have the right to take over and perform the Agreement, provided, however, that if the sureties, within 5 days after giving them said notice of termination, do not give City written notice of their intention to take over the performance thereof within 5 days after notice to City of such election, City may take over the work and prosecute the same to completion, by contract or by any other method it may deem advisable, for the account, and at the expense of Contractor, and the sureties shall be liable to City for any excess cost or damages occasioned City thereby; and, in such event, City may, without liability for so doing, take possession of, and utilize in completing the work, such materials, appliances, plant and other property belonging to Contractor as may be on the site of the work and necessary therefor.

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6. Legal Work Day - Penalties for Violation. Eight hours of labor shall constitute a legal day's work.

Contractor shall not require more than 8 hours labor in a day and 40 hours in a calendar week from any person employed by Contractor in the performance of such work unless such excess work is compensated for at not less than 1-1/2 times the basic rate of pay. Contractor shall forfeit as a penalty to City the sum of $25.00 for each laborer, workman or mechanic employed in the execution of this contract by Contractor, or by any subcontractor for each calendar day during which such laborer, workman or mechanic is required or permitted to labor more than 8 hours in any calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 and 1816, inclusive, of the Labor Code of the State of California.

7. Prevailing Wage Scale. The prevailing wage scale as determined by the Director of Industrial Relations of the State of California, in force on the day the bid was announced, will be the minimum paid to all craftsmen and laborers working on this project. Contractor shall also require any subcontractors who work or provide any services related to the project to pay all persons performing labor or rendering service under said subcontract or other arrangement at least the general prevailing rate of wages, determined as set forth herein for the respective crafts and employments, including such wages for holiday and overtime work. A copy of the correct determination will be posted at the job site. It is understood that it is the responsibility of Contractor to determine the correct scale. Copies of the prevailing wage rates are on file at the City Clerk's office, however, errors or defects in the materials in the City Clerk's office will not excuse a bidder's failure to comply with the actual scale then in force.

Contractor must submit certified payrolls to the Department of Industrial Relations in accordance with Labor Code Section 1776.

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.

8. Senate Bill 854 Compliance Required. In accordance with Labor Code Sections 1725.5 and 1771.1, all contractors and subcontractors must be registered with the Department of Industrial Relations.

In accordance with Labor Code Section 1771.4 the contractor must post job site notices as required by regulation and this project will be subject to compliance monitoring and enforcement by the Department of Industrial Relations.

9. Insurance. The Contractor shall procure and maintain for the duration of the contract and five years thereafter the insurance as specified in Exhibit A of this agreement.

10. 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 active negligence, 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.

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11. 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.

12. 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 California State Board of Mediation and Conciliation, 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.

13. Provisions Cumulative. The provisions of this agreement are cumulative, and in addition to and not in limitation of, any other rights or remedies available to City.

14. Notices. All notices shall be in writing, and delivered in person or transmitted by certified mail, postage prepaid.

a. Notices required to be given to City shall be addressed as follows:

Director of Public Works
City of San Mateo
330 West 20
th Avenue
San Mateo, CA 94403

Notices required to be given to Contractor shall be addressed as appears in the signature block as shown on the Bidder's Statement.

15. Interpretation. As used herein any gender includes each other gender, the singular includes the plural and vice versa.

16. Governing Law and Venue. This Agreement, the contract documents, and the performance hereon shall be governed, interpreted, construed, and regulated by the laws of the State of California. The

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parties agree that any action related to this Agreement or the contract documents will be venued in the County of San Mateo.

17. Headings. The title and headings of the various sections of this Agreement and the contract documents are intended solely for convenience of reference and are not intended to explain, modify, or place any construction on any provisions.

18. No Partnership or Agency. Nothing in this Agreement nor the contract documents shall be deemed to constitute a partnership in law between City and Contractor, or any sub-contractor, to constitute either party as an agent of the other for any purpose; or to entitle either party to commit or bind the other in any manner unless expressly agreed upon in the contract documents.

19. Severability. If any part or provision of the contract documents is determined by any court to be illegal, invalid, or unenforceable, in whole or in part, the contract documents shall continue to be valid as to its other provisions and the remainder of the affected provision, unless it can be concluded from the circumstances that, in the absence of the provisions found to be null and void, the parties would not have entered into the contract documents. The parties shall use all reasonable efforts to replace any and all provisions or parts found to be null and void with provisions that are valid under the applicable law and come closest to their original intention.

20. Waiver. None of the following shall operate as a waiver of any provision of the contract documents, or of any power herein reserved by the City, or any right to damages herein provided: 1) inspection by the City or its authorized agents or representatives; 2) any order or certificate for payment, or any payment for, or acceptance of the whole or any part of the work by the City; 3) an extension of time; or 4) any position taken by the City or its authorized agents or representatives.

21. Warranty. Contractor warrants and guarantees that the materials and equipment provided shall be at least of the quality specified and new unless otherwise required or permitted by the contract documents, and, if no quality is specified, then the materials and equipment shall be of commercial grade, suitable for heavy public use in facilities of similar size and complexity, that the work performed hereunder will be free from defects, and that the work will conform to the requirements of the contract documents.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, this agreement between the CITY OF SAN MATEO and UNITED STORM WATER, INC. has been duly executed by the parties hereinabove named, as of the day and year first above written.

CITY OF SAN MATEO

CONTRACTOR

Matt Fabry
Public Works Director

Date <Insert Name>
Its Authorized Agent
<Insert Title>

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 <Insert Name>
<Insert Title>

Date

Attachments:

Exhibit A: Insurance Requirements

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Exhibit A
Insurance Requirements for Construction Contracts

Contractor shall procure and maintain for the duration of the contract, and for x years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees, or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the genera l aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.

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

4. Surety Bonds as described below.

5. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Entity. At the option of the Entity, either: the contractor shall cause the insurer shall to reduce or eliminate such self-insured retentions as respects the Entity, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the Entity guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Entity.

Other Insurance Provisions

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

1. The Entity, its officers, officials, employees, a nd volunteers are to be covered as additional insureds 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 and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor. 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, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insuranc e or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers sh all be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause sh all provide that coverage shall not be canceled, except with notice to the Entity.

Builder’s Risk (Course of Construction) Insurance
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the Entity as a loss payee as their interest may appear.

If the project does not involve new or major reconstruction, at the option of the Entity, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Entity’s site.

Claims Made Policies – (If at all possible avoid and require occurrence type CGL policies) If any coverage required is written on a claims-made coverage form:

1. The retroactive date must be shown, and this da te must be before the execution date of the contract or the beginning of contract work.

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

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

4. A copy of the claims reporting requirements must be submitted to the Entity for review.

5. If the services involve lead-based paint or asbe stos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Co ntractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

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Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M.

Best rating of no less than A: VII, unless otherwise acceptable to the Entity.

Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the Entity for all work performed by the Contractor, its employees, agents and subcontractors.

Verification of Coverage
Contractor shall furnish the Entity with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to Entity before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

Subcontractors
Contractor shall require and verify that all s ubcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Entity is an additional insured on insurance required from subcontractors. For CGL coverage subcon tractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Bid bond

2. Performance bond

3. Payment bond

4. Maintenance bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in th e contract is for longer than on e year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of Calif ornia and secured through an authorized agent with an office in California.

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

City of San Mateo (CSM) SPECIAL PROVISIONS TEMPLATE.

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CITY OF SAN MATEO
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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: 82-4681 File ID: 24-8569 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: April 15, 2024
SUBJECT:

Shoreview Park Restroom Remodel – Construction Contract RECOMMENDATION:

Adopt a Resolution to approve an alternative purchasing procedure to award a construction contract to Angeles Contractor, Inc. in the amount of $379,386.64; approve the construction contract and establish a contingency reserve in the amount of $57,000; and authorize the Public Works Director to execute the contract in substantially the form presented and issue change orders within the contingency amount.

BACKGROUND:

The Shoreview Park public restrooms are due for remodeling. Renovations are needed to replace old infrastructure and upgrade the facilities to comply with current accessibility standards required by the Americans with Disabilities Act (ADA).

In 2016, the Public Works Facilities Division and the Parks and Recreation Department assessed the restrooms and developed a long-term plan for remodeling based on greatest need and available funding. Park restrooms included in Phases I, II, III and IV (Beresford and Los Prados, Martin Luther King, Bayside, Parkside, Indian Springs, Casanova, and Fiesta Meadows) were remodeled in 2016-2023. The park restrooms included in Phase V include the Shoreview and Lakeshore parks.

The construction drawings for the renovation of the Shoreview Park restrooms were developed by Public Works in coordination with the Parks and Recreation Department. The scope of work includes improving accessible site features, new fixtures, flooring, wall finishes, lighting, and painting. The City’s Building Division approved the construction drawings for a building permit, which was used as the basis for development of a fixed-price proposal utilizing a process called “job order contracting” (JOC). The JOC process includes a contract for a fixed term or maximum dollar value in which a contractor is selected based on a competitive bid to perform various and separate job orders in the future, during the life of the contract. The JOC contract serves as an "on call" contracting program that is procured through one umbrella or framework contract. The contract is competitively procured at the onset of the program using a unit price book (UPB), unit price list construction catalog, or custom list of construction prices as a basis for pricing in the procurement process. Each individual job order is then priced from that UPB and allows for rapid deployment of projects with a transparent pricing mechanism.

The JOC process is a competitive procurement method for construction services approved by the City Council by resolution on March 18, 2019, pursuant to San Mateo Municipal Code section 3.60.070(h)(3), which permits the use of procedures approved by the Council that are not set forth in the purchasing ordinance. Specifically, this process involves the development of a detailed project list, establishment of a firm price using a unit price book, and the selection of a pre- qualified construction contractor upon the City’s authorization to proceed.

In this case, a multi-step process was used to select Angeles Contractor, Inc. to perform the work, subject to Council

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CITY OF SAN MATEO
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approval. First, Sourcewell (formerly known as the National Joint Powers Alliance or NJPA) conducted a competitive proposal process to select The Gordian Group, Inc. (Gordian) to implement JOC on behalf of Sourcewell member agencies.

Second, Gordian competitively bids and administers the JOC process with the use of Gordian’s unit price book that will provide the best price to the City. This allows the City to complete required public improvements efficiently by eliminating the need to develop project specifications and eliminating solicitation of bids through a project-specific competitive bidding process. Here, Gordian used the JOC process to select Angeles Contractor, Inc., the low bidder and pre-qualified contractor selected to construct the improvement project.

The request for 15% contingency is above the typical 10% and is based on experiences with previous park restroom remodels such as foundation movement, existing non-compliant conditions, or underground utility conflicts. Similar conditions are expected at this location during construction.

With contract approval, construction will begin in May 2024 and be complete by August 2024. Based on the above, staff recommends award of the contract to Angeles Contractor, Inc. because of their experience and availability to perform these construction services.

BUDGET IMPACT:

There is sufficient funding available in the Phase V Park Restroom Project (46F015) project to award this agreement.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - Contract

STAFF CONTACT
Steve Wu, Project Manager II
[email protected]
(650) 522-7345

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5 CITY OF SAN MATEO
RESOLUTION NO. ____ (2024)

APPROVING AN ALTERNATIVE PURCHASING PROCEDURE TO AWARD A CONSTRUCTION CONTRACT TO ANGELES CONTRACTOR, INC. FOR THE SHOREVIEW PARK RESTROOM REMODEL WHEREAS, San Mateo Municipal Code Section 3.60.070(h)(3) authorizes the City Council to approve alternative purchasing procedures upon a finding that the alternative purchasing procedure is in the best interest of the City; and
WHEREAS, Sourcewell (formerly known as NJPA) has conducted competitive bidding processes to select Gordian, Inc. (Gordian) to implement Job Order Contracting on behalf of their member agencies; and WHEREAS, the Job Order Contracting process allows for an umbrella construction contract to cover various and separate job orders during the life of the contract, and is beneficial for renovation, remodeling, or alterations where many small project tasks will arise, but the timing, type, and quantity of work are unknown; and
WHEREAS, Sourcewell and Gordian have conducted competitive bidding to select contractors to perform Job Order Contracting based on Gordian’s Unit Price Book; and WHEREAS, unit price books provide fixed unit prices used for establishing budgets for contractor services at member agencies; and
WHEREAS, use of Gordian’s Unit Price Book and contract provides a competitive price to the City and allows the City to complete required public improvements efficiently by eliminating the need to develop project specifications or solicit bids for each minor project task; and WHEREAS, on March 18, 2019, the City Council adopted a resolution approving Job Order Contracting as a competitive procurement method for construction services based upon findings that the Job Order Contracting process with Gordian is in the best interests of the City; and WHEREAS, the Shoreview Park Restroom Remodel project is designed and documented to be priced using Gordian’s Unit Price Book; and
WHEREAS, Angeles Contractor, Inc. was selected based on their experience and availability to perform construction services using the Gordian’s Unit Price Book; and WHEREAS, based on these circumstances, staff has determined that this is the best price available because companies have submitted competitive bids.

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

1. In accordance with CEQA Guidelines Section 15301, this project is categorically exempt from CEQA as an “existing facility” in that it consists of the renovation of an existing building and involves negligible or no expansion of existing or former use.

2. The Job Order Contracting process, as approved by City Council on March 18, 2019, utilizing Gordian’s contract and Unit Price Book to award a construction contract to Angeles Contractor, Inc. is in the best interests of the City because it offers the best price to the City and allows the City to complete the restroom remodel efficiently by eliminating the need to develop project specifications eliminating solicitation of bids through a project-specific competitive bidding process.

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This document is a MODIFIED version of EJCDC® C-522, Copyright © 2016 by the National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers, or is based in part on excerpts from copyrighted EJCDC documents. Those portions of the text that originated in copyrighted EJCDC documents remain subject to the copyright.

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6 CONTRACT FOR CONSTRUCTION
This Contract is by and between.

OWNER CONTRACTOR
The City of San Mateo
330 West 20th Street
San Mateo, California 94403
Angeles Contractor, Inc.
783 Phillips Drive
City of Industry, CA 91748
Owner and Contractor hereby agree as follows:

ARTICLE 1 - THE WORK

1.01 Work
A. Work includes all labor, materials, equipment, services, and documentation necessary to construct the Project defined herein. The Work may include related services such as testing, start-up, and commissioning, all as required by the Contract Documents.

B. The Contractor shall complete all Work as specified or indicated in the Contract Documents.

The Project is generally described as follows:

1.Shoreview Park Restroom Remodel which includes site barriers; demolition and disposal; framing; plumbing; electrical; mechanical; new fixtures; new accessories; wall tile; flooring; painting; inspection; testing and closeout.

2. The Site of the Work includes designated work areas described in greater detail in the Contract Documents but generally located at 950 Ocean Avenue, San Mateo, CA 94401.

ARTICLE 2 - DEFINITIONS AND TERMINOLOGY

2.01 Defined Terms
A. Wherever used in the Bidding Requirements or Contract Documents, a term printed with initial capital letters, including the term’s singular and plural forms, will have the meaning indicated in the definitions below. In addition to terms specifically defined, terms with initial capital letters in the Contract Documents include references to identified articles and paragraphs, and the titles of other documents or forms.

1. Constituent of Concern—Asbestos, petroleum, radioactive materials, polychlorinated biphenyls (PCBs), hazardous waste, and any substance, product, waste, or other material of any nature whatsoever that is or becomes listed, regulated, or addressed pursuant to (a) the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§9601 et seq. (“CERCLA”); (b) the Hazardous Materials Transportation Act, 49 U.S.C. §§5501 et seq.; (c) the Resource Conservation and Recovery Act, 42 U.S.C. §§6901 et seq. (“RCRA”); (d) the Toxic Substances Control Act, 15 U.S.C. §§2601 et seq.; (e) the Clean Water Act, 33 U.S.C. §§1251 et seq.; (f) the Clean Air Act, 42 U.S.C. §§7401 et seq.; or (g) any other federal, state, or local statute, law, rule, regulation, ordinance, resolution, code, order, or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic, or dangerous waste, substance, or material.

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6 2. Hazardous Environmental Condition— The presence at the Site of Constituents of Concern in such quantities or circumstances that may present a danger to persons or property exposed thereto. The presence at the Site of materials that are necessary for the execution of the Work, or that are to be incorporated in the Work, and that are controlled and contained pursuant to industry practices, Laws and Regulations, and the requirements of the Contract, does not establish a Hazardous Environmental Condition.

3. Resident Project Representative - The authorized representative of Owner assigned to assist Owner at the Site. As used herein, the term Resident Project Representative or “RPR” includes any assistants or field staff of Resident Project Representative. The RPR for this project is:
a. Steve Wu, City of San Mateo

2.02 Terminology
A. The words and terms discussed in the following paragraphs are not defined but, when used in the Bidding Requirements or Contract Documents, have the indicated meaning.

B. Intent of Certain Terms or Adjectives:

1. The Contract Documents include the terms “as allowed,” “as approved,” “as ordered,” “as directed” or terms of like effect or import to authorize an exercise of professional judgment by Owner, Engineer, or Architect. In addition, the adjectives “reasonable,” “suitable,” “acceptable,” “proper,” “satisfactory,” or adjectives of like effect or import are used to describe an action or determination of Engineer as to the Work. It is intended that such exercise of professional judgment, action, or determination will be solely to evaluate, in general, the Work for compliance with the information in the Contract Documents and with the design concept of the Project as a functioning whole as shown or indicated in the Contract Documents (unless there is a specific statement indicating otherwise). The use of any such term or adjective is not intended to and shall not be effective to assign to Engineer any duty or authority to supervise or direct the performance of the Work, or any duty or authority to undertake responsibility contrary to the provisions of any provision of the Contract Documents.

C. Day:

1. The word “day” means a calendar day of 24 hours measured from midnight to the next midnight.

D. Defective:

1. The word “defective,” when modifying the word “Work,” refers to Work that is unsatisfactory, faulty, or deficient in that it:
a. does not conform to the Contract Documents; or
b. does not meet the requirements of any applicable inspection, reference standard, test, or approval referred to in the Contract Documents; or c. has been damaged prior to Engineer’s recommendation of final payment (unless responsibility for the protection thereof has been assumed by Owner at Substantial Completion.

E. Furnish, Install, Perform, Provide:

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6 1. The word “furnish,” when used in connection with services, materials, or equipment, shall mean to supply and deliver said services, materials, or equipment to the Site (or some other specified location) ready for use or installation and in usable or operable condition.

2. The word “install,” when used in connection with services, materials, or equipment, shall mean to put into use or place in final position said services, materials, or equipment complete and ready for intended use.

3. The words “perform” or “provide,” when used in connection with services, materials, or equipment, shall mean to furnish and install said services, materials, or equipment complete and ready for intended use.

4. If the Contract Documents establish an obligation of Contractor with respect to specific services, materials, or equipment, but do not expressly use any of the four words “furnish,” “install,” “perform,” or “provide,” then Contractor shall furnish and install said services, materials, or equipment complete and ready for intended use.

F. Unless stated otherwise in the Contract Documents, words or phrases that have a well- known technical or construction industry or trade meaning are used in the Contract Documents in accordance with such recognized meaning.

2.03 Contract Documents Defined
A. The Contract Documents consist of the following documents:

1. This Contract.

2. Performance bond.

3. Payment bond.

4. Exhibits to this Contract (enumerated as follows):
a. Exhibit A – Scope of Work
b. Exhibit B – Insurance Requirements for Construction Contracts.

5. National Joint Powers Alliance - Book 2: IQCC Standard Terms and Conditions and Contract General Conditions.

6. National Joint Powers Alliance - Book 3: Task Catalog.

7. National Joint Powers Alliance Book 4: Technical Specifications.

8. The following which may be delivered or issued on or after the Effective Date of the Contract:
a. Work Change Directives.
b. Change Orders.
c. Field Orders.

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6 ARTICLE 3 - CONTRACT DOCUMENTS

3.01 Intent of Contract Documents
A. It is the intent of the Contract Documents to describe a functionally complete project. The Contract Documents do not indicate or describe all the Work required to complete the Project. Additional details required for the correct installation of selected products are to be provided by the Contractor and coordinated with the Owner and RPR. This Contract supersedes prior negotiations, representations, and agreements, whether written or oral.

The Contract Documents are complementary; what is required by one part of the Contract Documents is as binding as if required by other parts of the Contract Documents.

B. During the performance of the Work and until final payment, Contractor and Owner shall submit all matters in question concerning the requirements of the Contract Documents or relating to the acceptability of the Work under the Contract Documents to the RPR. RPR will be the initial interpreter of the requirements of the Contract Documents, and judge of the acceptability of the Work thereunder.

C. RPR will render a written clarification, interpretation, or decision on the issue submitted, or initiate a modification to the Contract Documents.

D. Contractor, and its subcontractors and suppliers, shall not have or acquire any title to or ownership rights to any of the Drawings, Specifications, or other documents (including copies or electronic media editions) prepared by RPR or its consultants.

3.02 Reporting and Resolving Discrepancies
A. Reporting Discrepancies:

1.Contractor’s Verification of Figures and Field Measurements: Before undertaking each part of the Work, Contractor shall carefully study the Contract Documents, and check and verify pertinent figures and dimensions therein, particularly with respect to applicable field measurements. Contractor shall promptly report in writing to Engineer any conflict, error, ambiguity, or discrepancy that Contractor discovers, or has actual knowledge of, and shall not proceed with any Work affected thereby until the conflict, error, ambiguity, or discrepancy is resolved, by a clarification or interpretation by Engineer, or by an amendment or supplement to the Contract Documents.

2.Contractor’s Review of Contract Documents: If, before or during the performance of the Work, Contractor discovers any conflict, error, ambiguity, or discrepancy within the Contract Documents, or between the Contract Documents and (a) any applicable Law or Regulation, (b) actual field conditions, (c) any standard specification, manual, reference standard, or code, or (d) any instruction of any Supplier, then Contractor shall promptly report it to Engineer in writing. Contractor shall not proceed with the Work affected thereby (except in an emergency as required by Paragraph 7.15) until the conflict, error, ambiguity, or discrepancy is resolved, by a clarification or interpretation by Engineer, or by an amendment or supplement to the Contract Documents issued pursuant to Paragraph 11.01.

3. Contractor shall not be liable to Owner or Engineer for failure to report any conflict, error, ambiguity, or discrepancy in the Contract Documents unless Contractor had actual knowledge thereof.

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6 B. Resolving Discrepancies:

1. Except as may be otherwise specifically stated in the Contract Documents, the provisions of the Contract Documents shall take precedence in resolving any conflict, error, ambiguity, or discrepancy between such provisions of the Contract Documents and:
a. the provisions of any standard specification, manual, reference standard, or code, or the instruction of any Supplier (whether or not specifically incorporated by reference as a Contract Document); or
b. the provisions of any Laws or Regulations applicable to the performance of the Work (unless such an interpretation of the provisions of the Contract Documents would result in violation of such Law or Regulation).

2. When a conflict exists between drawings or between drawings and details, the more stringent of the two shall prevail. When a conflict exists between two specifications, the more stringent of the two shall prevail.

3. In the event of a conflict that cannot be resolved by interpreting the Contract Documents as a single, integrated document and giving effect to each provision therein, the Contract Document higher in precedence shall control and supersede the Contract Documents lower in precedence in accordance with the following listing arranged from the highest to the lowest in precedence:
a. Change Order.
b. Addenda.
c. Contract.
d. Technical Specifications included as an Exhibit to this Contract. e. Drawings included as an Exhibit to this Contract.
f. Owner Standard Specifications.
g. Owner Standard Drawings.
h. National Joint Powers Alliance Book 4: Technical Specifications. i. National Joint Powers Alliance - Book 2: IQCC Standard Terms and Conditions and Contract General Conditions.
j. The provisions of any standard specification, manual, reference standard, or code, or the instruction of any Supplier (whether or not specifically incorporated by reference as a Contract Document).
k. The provisions of any Laws or Regulations applicable to the performance of the Work (unless such an interpretation of the provisions of the Contract Documents would result in violation of such Law or Regulation).
l. Notice to Bidder.
m. Instruction to Bidder.

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6 ARTICLE 4 - CONTRACT TIMES

4.01 Contract Times
A. The Work will be substantially completed within 365 days after the Effective Date of the Contract and completed and ready for final payment within 395 days after the Effective Date of the Contract.

4.02 Liquidated Damages
A. Contractor and Owner recognize that time is of the essence in the performance of the Contract, and that Owner will incur damages if Contractor does not complete the Work according to the requirements of Paragraph 4.01. Because such damages for delay would be difficult and costly to determine and the parties agree that $1000 per day is a reasonable approximation of the Owner’s damages, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty) Contractor shall pay Owner $1000 for each day that expires after the Contract Time for substantial completion.

4.03 Delays in Contractor’s Progress
A. If Owner, RPR, or anyone for whom Owner is responsible, delays, disrupts, or interferes with the performance or progress of the Work, then Contractor shall be entitled to an equitable adjustment in the Contract Times and Contract Price. Contractor’s entitlement to an adjustment of the Contract Times is conditioned on such adjustment being essential to Contractor’s ability to complete the Work within the Contract Times.

B. Contractor shall not be entitled to an adjustment in Contract Price or Contract Times for delay, disruption, or interference caused by or within the control of Contractor or their subcontractors or suppliers.

C. If Contractor’s performance or progress is delayed, disrupted, or interfered with by unanticipated causes not the fault of and beyond the control of Owner, Contractor, and those for which they are responsible, then Contractor shall be entitled to an equitable adjustment in Contract Times.

D. Contractor shall not be entitled to an adjustment in Contract Price or Contract Times for any delay, disruption, or interference if such delay is concurrent with a delay, disruption, or interference caused by or within the control of Contractor or Contractor’s subcontractors or suppliers.

4.04 Progress Schedules
A. Contractor shall develop a progress schedule and submit to the RPR for review and comment before starting Work on the Site. The Contractor shall modify the schedule in accordance with the comments provided by the RPR.

B. The Contractor shall update and submit the progress schedule to the RPR each month. The Owner may withhold payment if the Contractor fails to submit the schedule.

ARTICLE 5 - CONTRACT PRICE

5.01 Payment
A. Owner shall pay Contractor in accordance with the Contract Documents, the lump sum amount of $379,386.64 for all Work.

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6 B. For any additional Work authorized by Owner, Owner shall pay Contractor in an amount equal to the total of all extended prices for actual Work completed. The extended price is determined by multiplying the unit price in the National Joint Powers Alliance - Book 3: Task Catalog times the actual quantity of that Work item completed. Actual quantities installed will be determined by the RPR.

ARTICLE 6 - BONDS AND INSURANCE

6.01 Bonds
A. Before starting Work, Contractor shall furnish a performance bond and a payment bond from surety companies that are duly licensed or authorized to issue bonds in the required amounts in the jurisdiction in which the Project is located. Each bond shall be in an amount equal to the Contract Price, as security for the faithful performance and payment of all of Contractor’s obligations under the Contract. These bonds shall remain in effect until the completion of the correction period specified in Paragraph 7.12 but, in any case, not less than one year after the date when final payment becomes due.

B. Performance by Sureties. In the event of any termination, Owner shall immediately give written notice to Contractor and Contractor’s sureties, and the sureties shall have the right to take over and perform the Contract, provided, however, that if the sureties, within five days after giving them notice of said termination, do not give Owner written notice of their intention to take over the performance thereof within five days after notice, Owner may take over the work and prosecute the same to completion, by contract or by any other method it may deem advisable, for the account, and at the expense of Contractor, and the sureties shall be liable to Owner for any excess cost or damages occasioned Owner thereby; and, in such event, Owner may, without liability for so doing, take possession of, and utilize in completing the work, such materials, appliances, plant and other property belonging to Contractor as may be on the site of the work and necessary therefore

6.02 Insurance
A. The Contractor shall procure and maintain the insurance specified in the Exhibit B of this Contract for the greater of (1) the duration of the contract plus a period of five (5) years after completion of the Project or (2) the duration shown in Exhibit B.

ARTICLE 7 - CONTRACTOR’S RESPONSIBILITIES

7.01 Supervision and Superintendence
A. Contractor shall supervise and direct the Work competently and efficiently, devoting such attention thereto and applying such skills and expertise as may be necessary to perform the Work in accordance with the Contract Documents. Contractor shall be solely responsible for the means, methods, techniques, sequences, safety, and procedures of construction.

B. Contractor shall assign a competent resident superintendent who is to be present at all times during the execution of the Work. This resident superintendent shall not be replaced without written notice to and approval by the Owner and RPR except under extraordinary circumstances.

C. Contractor shall at all times maintain good discipline and order at the Site.

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6 D. Except as otherwise required for the safety or protection of persons or the Work or property at the Site or adjacent thereto, and except as otherwise stated in the Contract Documents, all Work at the Site shall be performed during regular working hours, Monday through Friday.

7.02 Other Work at the Site
A. In addition to and apart from the Work of the Contractor, other work may occur at or adjacent to the Site. Contractor shall take reasonable and customary measures to avoid damaging, delaying, disrupting, or interfering with the work of Owner, any other contractor, or any utility owner performing other work at or adjacent to the Site.

7.03 Services, Materials, and Equipment
A. Unless otherwise specified in the Contract Documents, Contractor shall provide and assume full responsibility for all services, materials, equipment, labor, transportation, construction equipment and machinery, tools, appliances, fuel, power, light, heat, telephone, water, sanitary facilities, temporary facilities, and all other facilities and incidentals necessary for the performance, testing, start up, and completion of the Work, whether or not such items are specifically called for in the Contract Documents.

B. All materials and equipment incorporated into the Work shall be new, of good quality and shall be stored, applied, installed, connected, erected, protected, used, cleaned, and conditioned in accordance with instructions of the applicable supplier, except as otherwise may be provided in the Contract Documents.

7.04 Subcontractors and Suppliers
A. Contractor may retain subcontractors and suppliers for the performance of parts of the Work acceptable to Owner, provided that no work may be performed by a subcontractor who is debarred pursuant to Labor Code Sections 1777.1 or 1777.7.

7.05 Quality Management
A. Contractor is fully responsible for the managing quality to ensure Work is completed in accordance with the Contract Documents.

7.06 Licenses, Fees and Permits
A. Contractor shall pay all license fees and royalties and assume all costs incident to performing the Work or the incorporation in the Work of any invention, design, process, product, or device which is the subject of patent rights or copyrights held by others.

B. Contractor shall obtain and pay for all construction permits and licenses unless otherwise provided in the Contract Documents.

7.07 Laws and Regulations; Taxes
A. Contractor shall give all notices required by and shall comply with all local, state, and federal Laws and Regulations applicable to the performance of the Work. Except where otherwise expressly required by applicable Laws and Regulations, neither Owner nor RPR shall be responsible for monitoring Contractor’s compliance with any Laws or Regulations.

B. Contractor shall bear all resulting costs and losses, and shall indemnify and hold harmless Owner and RPR, and the officers, directors, members, partners, employees, agents, consultants, and subcontractors of each and any of them from and against all claims, costs,

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6 losses, and damages if Contractor performs any Work or takes any other action knowing or having reason to know that it is contrary to Laws or Regulations.

C. Contractor shall pay all applicable sales, consumer, use, and other similar taxes Contractor is required to pay in accordance with Laws and Regulations.

D. In accordance with Public Contract Code Section 7103.5, the contractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties.

E. Contractor shall give notice of hazardous materials and certain changed conditions in jobs involving trenching more than four feet deep.

F. In accordance with Labor Code Section 1773.2, contractor will make travel and subsistence payments as required by statute.

G. In accordance with Labor Code Section 1771, contractor must pay prevailing wages. The prevailing wage scale as determined by the Director of Industrial Relations of the State of California, in force on the day the bid was announced, will be the minimum paid to all craftsmen and laborers working on this project. Contractor shall also require any subcontractors who work or provide any services related to the project to pay all persons performing labor or rendering service under said subcontract or other arrangement at least the general prevailing rate of wages, determined as set forth herein for the respective crafts and employments, including such wages for holiday and overtime work. A copy of the correct determination will be posted at the job site. It is understood that it is the responsibility of Contractor to determine the correct scale. Copies of the prevailing wage rates are on file at the City Clerk’s office; however, errors or defects in the materials in the City Clerk’s office will not excuse a bidder’s failure to comply with the actual scale then in force. In accordance with Labor Code Section 1775, the statutory provisions for failure to pay prevailing wages will be enforced.

H. In accordance with Labor Code Section 1776, contractor must comply with the statutory requirements relating to certified copies of payroll records.

I. In accordance with Labor Code Section 1777.5, contractor must comply with the statutory requirements relating to the employment of apprentices.

J. In accordance with Labor Code Section 1810, eight hours labor constitutes a legal day’s work.

Contractor shall not require more than eight hours’ labor in a day and 40 hours in a calendar week from any person employed by Contractor in the performance of such work unless such excess work is compensated for at not less than one and one-half times the basic rate of pay.

Contractor shall forfeit as a penalty to Owner the sum of $25.00 for each laborer, workman, or mechanic employed in the execution of this contract by Contractor, or by any subcontractor, for each calendar day during which such laborer, workman, or mechanic is required or permitted to labor more than eight hours in any calendar day and 40 hours in any one calendar week in violation of the provisions of Section 1810 and 1816, inclusive, of the Labor Code of the State of California.

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6 K. In accordance with Labor Code Section 1813, the statutory provisions for penalties for failure to comply with wage and hour laws will be enforced.

L. In accordance with Labor Code Section 1860, the contractor must secure the payment of workers’ compensation to its employees.

M. In accordance with Labor Code Section 6705, the contractor must submit a detailed plan of the shoring and bracing for trenches five feet deep or more for contracts in excess of $25,000.

N. In accordance with Labor Code Sections 1725.5 and 1771.1, all contractors and subcontractors must be registered with the Department of Industrial Relations. In accordance with Labor Code Section 1771.4, the contractor must post job site notices as required by regulation and this project will be subject to compliance monitoring and enforcement by the Department of Industrial Relations.

7.08 Record Documents
A. Contractor shall maintain one printed record copy of all Drawings, Specifications, Addenda, Change Orders, Work Change Directives, Field Orders, written interpretations and clarifications, and approved shop drawings in a safe place at the Site. Contractor shall annotate them to show changes made during construction. Contractor shall deliver these record documents to RPR upon completion of the Work.

7.09 Safety and Protection
A. Contractor shall be solely responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the Work.

B. Contractor shall take all necessary precautions for the safety of, and shall provide the necessary protection to prevent damage, injury, or loss to:

1. All persons on the Site or who may be affected by the Work;

2. All the Work and materials and equipment to be incorporated therein, whether in storage on or off the Site; and

3. Other property at the Site or adjacent thereto, including trees, shrubs, lawns, walks, pavements, roadways, structures, other work in progress, utilities, and underground facilities not designated for removal, relocation, or replacement in the course of construction.

C. All damage, injury, or loss to any property caused, directly or indirectly, in whole or in part, by Contractor, or anyone for whose acts the Contractor may be liable, shall be remedied by Contractor at its expense (except damage or loss attributable to the fault of Contract Documents or to the acts or omissions of Owner or RPR and not attributable, directly or indirectly, in whole or in part, to the fault or negligence of Contractor).

D. Contractor shall be responsible for coordinating any exchange of material safety data sheets or other hazard communication information required to be made available to or exchanged between or among employers at the Site in accordance with Laws or Regulations.

E. In emergencies affecting the safety or protection of persons or the Work or property at the Site or adjacent thereto, Contractor shall act to prevent threatened damage, injury, or loss.

Contractor shall give RPR prompt written notice if Contractor believes that any significant changes in the Work or variations from the Contract Documents have been caused thereby or are required as a result thereof. If RPR determines that a change in the Contract

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6 Documents is required because of the action taken by Contractor in response to such an emergency, a Work Change Directive or Change Order will be issued.

7.10 Shop Drawings, Samples, and Other Submittals
A. Contractor shall review and coordinate the shop drawing and samples with the requirements of the Work and the Contract Documents and shall verify all related field measurements, quantities, dimensions, specified performance and design criteria, installation requirements, materials, catalog numbers, and similar information.

B. Each submittal shall bear a stamp or specific written certification that Contractor has satisfied Contractor’s obligations under the Contract Documents with respect to Contractor’s review of that submittal, and that Contractor approves the submittal.

C. With each submittal, Contractor shall give RPR specific written notice, in a communication separate from the submittal, of any variations that the shop drawing or sample may have from the requirements of the Contract Documents.

D. RPR will provide timely review of shop drawings and samples.

E. RPR’s review and approval will not extend to means, methods, techniques, sequences, or procedures of construction or to safety precautions or programs.

F. RPR’s review and approval of a separate item does not indicate approval of the assembly in which the item functions.

G. Contractor shall make corrections required by RPR and shall return the required number of corrected copies of shop drawings and submit, as required, new samples for review and approval. Contractor shall direct specific attention in writing to revisions other than the corrections called for by RPR on previous submittals.

H. Shop drawings are not Contract Documents.

7.11 Warranties and Guarantees
A. Contractor warrants and guarantees to Owner that all Work will be in accordance with the Contract Documents and will not be defective. RPR and its officers, directors, members, partners, employees, agents, consultants, and subcontractors shall be entitled to rely on Contractor’s warranty and guarantee.

7.12 Correction Period
A. If within one year after the date of substantial completion, any Work is found to be defective, or if the repair of any damages to the Site, adjacent areas that Contractor has arranged to use through construction easements or otherwise, and other adjacent areas used by Contractor as permitted by Laws and Regulations, is found to be defective, then Contractor shall promptly and without cost to Owner, correct such defective Work.

7.13 Indemnification
A. To the fullest extent permitted by Laws and Regulations, and in addition to any other obligations of Contractor under the Contract or otherwise, Contractor shall indemnify and hold harmless Owner and RPR, and the officials, employees, and agents, of each and any of them from and against all claims, costs, losses, and damages (including but not limited to all fees and charges of RPR, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to the performance of

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6 the Work. Contractor will defend Owner, its elected and appointed officials, employees, and agents against any such claims. However, this provision does not apply to claims, loss, liability, damage, or expense arising from the sole negligence or willful misconduct of the Owner
ARTICLE 8 - OWNER’S RESPONSIBILITIES

8.01 Owner’s Responsibilities
A. Except as otherwise provided in the Contract Documents, Owner shall issue all communications to Contractor through RPR.

B. Owner shall make payments to Contractor as provided in this Contract.

C. Owner shall provide Site and easements required to construct the Project.

D. If Owner intends to contract with others for the performance of other work at or adjacent to the Site, unless stated elsewhere in the Contract Documents, Owner shall have sole authority and responsibility for such coordination.

E. The Owner shall be responsible for performing inspections and tests required by applicable codes.

F. The Owner shall not supervise, direct, or have control or authority over, nor be responsible for, Contractor’s means, methods, techniques, sequences, or procedures of construction, or the safety precautions and programs, or for any failure of Contractor to comply with Laws and Regulations applicable to the performance of the Work. Owner will not be responsible for Contractor’s failure to perform the Work in accordance with the Contract Documents.

G. While at the Site, Owner’s employees and representatives shall comply with the specific applicable requirements of Contractor’s safety programs of which Owner has been informed.

H. Owner shall furnish copies of any applicable Owner safety programs to Contractor.

I. In accordance with Public Contract Code Section 9201, Owner shall give contractor timely notification of the receipt of any third-party claims relating to the contract.

ARTICLE 9 - RPR’S STATUS DURING CONSTRUCTION

9.01 RPR’s Status
A. RPR will be Owner’s representative during construction. The duties and responsibilities and the limitations of authority of RPR as Owner’s representative during construction are set forth in this Contract.

B. Neither RPR’s authority or responsibility under this Article 9 or under any other provision of the Contract, nor any decision made by RPR in good faith either to exercise or not exercise such authority or responsibility or the undertaking, exercise, or performance of any authority or responsibility by RPR, shall create, impose, or give rise to any duty in contract, tort, or otherwise owed by RPR to Contractor, any subcontractor, any supplier, any other individual or entity, or to any surety for or employee or agent of any of them.

C. RPR will make visits to the Site at intervals appropriate to the various stages of construction.

RPR will not be required to make exhaustive or continuous inspections on the Site to check the quality or quantity of the Work.

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6 D. RPR has the authority to reject Work if Contractor fails to perform Work in accordance with the Contract Documents.

E. RPR will render decisions regarding the requirements of the Contract Documents and judge the acceptability of the Work.

F. RPR will not supervise, direct, control, or have authority over or be responsible for Contractor’s means, methods, techniques, sequences, or procedures of construction, or the safety precautions and programs, or for any failure of Contractor to comply with Laws and Regulations applicable to the performance of the Work. RPR will not be responsible for Contractor’s failure to perform the Work in accordance with the Contract Documents.

ARTICLE 10 - CHANGES IN THE WORK

10.01 Authority to Change the Work
A. Without invalidating the Contract and without notice to any surety, Owner may, at any time or from time to time, order additions, deletions, or revisions in the Work.

10.02 Change Orders
A. Owner and Contractor shall execute appropriate Change Orders covering:

1. Changes in the Contract Price or Contract Times which are agreed to by the parties, including any undisputed sum or amount of time for Work actually performed in accordance with a Work Change Directive;

2. Changes in the Work which are: (a) ordered by Owner or (b) agreed to by the parties or (c) resulting from the RPR’s decision, subject to the need for RPR’s recommendation if the change in the Work involves the design (as set forth in the Drawings, Specifications, or otherwise), or other engineering or technical matters; and

3. Changes in the Contract Price or Contract Times or other changes which embody the substance of any final binding results under Article 12.

B. If the provisions of any bond require notice to be given to a surety of any change affecting the general scope of the Work or the provisions of the Contract Documents (including, but not limited to, Contract Price or Contract Times), the giving of any such notice will be Contractor’s responsibility. The amount of each applicable bond will be adjusted to reflect the effect of any such change.

ARTICLE 11 - DIFFERING SUBSURFACE OR PHYSICAL CONDITIONS

11.01 Differing Conditions Process
A. If Contractor believes that any subsurface or physical condition including but not limited to utilities or other underground facilities that are uncovered or revealed at the Site either differs materially from that shown or indicated in the Contract Documents or is of an unusual nature, and differs materially from conditions ordinarily encountered and generally recognized as inherent in Work of the character provided for in the Contract Documents then Contractor shall, promptly after becoming aware thereof and before further disturbing the subsurface or physical conditions or performing any Work in connection therewith (except in an emergency), notify Owner and RPR in writing about such condition. Contractor shall not further disturb such condition or perform any Work in connection therewith (except with

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6 respect to an emergency) until receipt of a written statement permitting Contractor to do so.

B. After receipt of written notice, RPR will promptly:

1. Review the subsurface or physical condition in question;

2. Determine necessity for Owner obtaining additional exploration or tests with respect to the condition;

3. Determine whether the condition falls within the differing site condition as stated herein;

4. Obtain any pertinent cost or schedule information from Contractor;

5. Prepare recommendations to Owner regarding the Contractor’s resumption of Work in connection with the subsurface or physical condition in question and the need for any change in the Drawings or Specifications; and

6. Advise Owner in writing of RPR’s findings, conclusions, and recommendations.

C. After receipt of RPR’s written findings, conclusions, and recommendations, Owner shall issue a written statement to Contractor regarding the subsurface or physical condition in question, addressing the resumption of Work in connection with such condition, indicating whether any change in the Drawings or Specifications will be made, and adopting or rejecting RPR’s written findings, conclusions, and recommendations, in whole or in part.

ARTICLE 12 - CLAIMS AND DISPUTE RESOLUTION

12.01 Claims Process
A. The party submitting a claim shall deliver it directly to the other party to the Contract and the RPR promptly (but in no event later than 10 days) after the start of the event giving rise thereto.

B. The party receiving a claim shall review it thoroughly, giving full consideration to its merits.

The two parties shall seek to resolve the claim through the exchange of information and direct negotiations. All actions taken on a claim shall be stated in writing and submitted to the other party.

C. If efforts to resolve a claim are not successful, the party receiving the claim may deny it by giving written notice of denial to the other party. If the receiving party does not take action on the claim within 45 days, the claim is deemed denied.

D. If the dispute is not resolved to the satisfaction of the parties, Owner or Contractor shall give written notice to the other party of the intent to submit the dispute to a court of competent jurisdiction unless the Owner and Contractor both agree to an alternative dispute resolution process.

12.02 Mediation
Should any dispute arise out of this Contract, 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 the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be

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6 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 reach by the parties but not more than 60 days, unless the maximum time is extended by the parties.

ARTICLE 13 - TESTS AND INSPECTIONS; CORRECTION OF DEFECTIVE WORK

13.01 Tests and Inspections
A. Owner and RPR will have access to the Site and the Work at reasonable times for their observation, inspection, and testing. Contractor shall provide them proper and safe conditions for such access.

B. Contractor shall give RPR timely notice of readiness of the Work for all required inspections and tests and shall cooperate with inspection and testing personnel to facilitate required inspections and tests.

C. If any Work that is to be inspected, tested, or approved is covered by Contractor without written concurrence of RPR, Contractor shall, if requested by RPR, uncover such Work for observation. Such uncovering shall be at Contractor’s expense.

13.02 Defective Work
A. Contractor shall ensure that the Work is not defective.

B. RPR has the authority to determine whether Work is defective, and to reject defective Work.

C. Prompt notice of all defective Work of which Owner or RPR has actual knowledge will be given to Contractor.

D. The Contractor shall promptly correct all such defective Work.

E. When correcting defective Work, Contractor shall take no action that would void or otherwise impair Owner’s special warranty and guarantee, if any, on said Work.

F. If the Work is defective or Contractor fails to supply sufficient skilled workers or suitable materials or equipment, or fails to perform the Work in such a way that the completed Work will conform to the Contract Documents, then Owner may order Contractor to stop the Work, or any portion thereof, until the cause for such order has been eliminated.

ARTICLE 14 - PAYMENTS TO CONTRACTOR

14.01 Progress Payments
A. The Contractor shall prepare a schedule of values that will serve as the basis for progress payments. The schedule of values will be in a form of application for payment acceptable to RPR. The unit price breakdown submitted with the bid will be used for unit price work. Break lump sum items into units that will allow for measurement of Work in progress.

14.02 Applications for Payments:

A. Contractor shall submit an application for payment in a form acceptable to the RPR, no more frequently than monthly, to RPR. Applications for payment will be prepared and signed by

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6 Contractor. Contractor shall provide supporting documentation required by the Contract Documents. Payment will be paid for Work completed as of the date of the application for payment.

B. Beginning with the second application for payment, each application shall include an affidavit of Contractor stating that all previous progress payments received on account of the Work have been applied on account to discharge Contractor’s legitimate obligations associated with prior applications for payment.

14.03 Retainage
A. The Owner shall retain 5% of each progress payment until the Work is substantially complete.

14.04 Review of Applications
A. Within 10 days after receipt of each application for payment, the RPR will either indicate in writing a recommendation for payment and present the application for payment to Owner or return the application for payment to Contractor indicating in writing RPR’s reasons for refusing to recommend payment. The Contractor will make the necessary corrections and resubmit the application for payment.

B. RPR will recommend reductions in payment (set-offs) which, in the opinion of the RPR, are necessary to protect Owner from loss because the Work is defective and requires correction or replacement.

C. The Owner is entitled to impose set-offs against payment based on any claims that have been made against Owner on account of Contractor’s conduct in the performance of the Work, incurred costs, losses, or damages on account of Contractor’s conduct in the performance of the Work, or liquidated damages that have accrued as a result of Contractor’s failure to complete the Work.

14.05 Contractor’s Warranty of Title
A. Contractor warrants and guarantees that title to all Work, materials, and equipment furnished under the Contract will pass to Owner free and clear of (1) all liens and other title defects, and (2) all patent, licensing, copyright, or royalty obligations, no later than seven days after the time of payment by Owner.

14.06 Substantial Completion
A. The Contractor shall notify Owner and RPR in writing that the Work is substantially complete and request the RPR issue a certificate of substantial completion when Contractor considers the Work ready for its intended use. Contractor shall at the same time submit to Owner and RPR an initial draft of punch list items to be completed or corrected before final payment.

B. RPR will make an inspection of the Work with the Owner and Contractor to determine the status of completion. If RPR does not consider the Work substantially complete, RPR will notify Contractor and Owner in writing giving the reasons therefor.

C. If RPR considers the Work substantially complete or upon resolution of all reasons for non- issuance of a certificate identified in 14.06.B, RPR will deliver to Owner a certificate of substantial completion which shall fix the date of substantial completion and include a punch list of items to be completed or corrected before final payment.

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6 14.07 Final Inspection
A. Upon written notice from Contractor that the entire Work is complete, RPR will promptly make a final inspection with Owner and Contractor and will notify Contractor in writing of all particulars in which this inspection reveals that the Work, or agreed portion thereof, is incomplete or defective. Contractor shall immediately take such measures as are necessary to complete such Work or remedy such deficiencies.

14.08 Final Payment
A. Contractor may make application for final payment after Contractor has satisfactorily completed all Work defined in the Contract, including providing all maintenance and operating instructions, schedules, guarantees, bonds, certificates or other evidence of insurance, certificates of inspection, annotated record documents and other documents.

B. The final application for payment shall be accompanied (except as previously delivered) by:

1. All documentation called for in the Contract Documents;

2. Consent of the surety to final payment;

3. Satisfactory evidence that all title issues have been resolved such that title to all Work, materials, and equipment has passed to Owner free and clear of any liens or other title defects, or will so pass upon final payment;

4. A list of all disputes that Contractor believes are unsettled; and

5. Complete and legally effective releases or waivers (satisfactory to Owner) of all lien rights arising out of the Work, and of liens filed in connection with the Work.

C. The Work is complete (subject to surviving obligations) when it is ready for final payment as established by the RPR’s written recommendation of final payment.

14.09 Waiver of Claims
A. The making of final payment will not constitute a waiver by Owner of claims or rights against Contractor.

B. The acceptance of final payment by Contractor will constitute a waiver by Contractor of all claims and rights against Owner other than those pending matters that have been duly submitted.

ARTICLE 15 - SUSPENSION OF WORK AND TERMINATION

15.01 Owner May Suspend Work
A. At any time and without cause, Owner may suspend the Work or any portion thereof for a period of not more than 60 consecutive days by written notice to Contractor and RPR. Such notice will fix the date on which Work will be resumed. Contractor shall resume the Work on the date so fixed. Contractor shall be entitled to an adjustment in the Contract Price or an extension of the Contract Times, or both, directly attributable to any such suspension.

15.02 Owner May Terminate for Cause
A. Contractor’s failure to perform the Work in accordance with the Contract Documents or other failure to comply with a material term of the Contract Documents will constitute a default by Contractor and justify termination for cause.

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6 B. If Contractor defaults in its obligations, then after giving Contractor and any surety ten days written notice that Owner is considering a declaration that Contractor is in default and termination of the Contract, Owner may proceed to:

1. Declare Contractor to be in default, and give Contractor and any surety notice that the Contract is terminated; and

2. Enforce the rights available to Owner under any applicable performance bond.

C. Owner may not proceed with termination of the Contract under Paragraph 15.02.B if Contractor within seven days of receipt of notice of intent to terminate begins to correct its failure to perform and proceeds diligently to cure such failure.

D. Subject to the terms and operation of any applicable performance bond, if Owner has terminated the Contract for cause, Owner may exclude Contractor from the Site, take possession of the Work, incorporate in the Work all materials and equipment stored at the Site or for which Owner has paid Contractor but which are stored elsewhere, and complete the Work as Owner may deem expedient.

E. In the case of a termination for cause, if the cost to complete the Work, including related claims, costs, losses, and damages, exceeds the unpaid contract balance, Contractor shall pay the difference to Owner.

15.03 Owner May Terminate for Convenience
A. Upon seven days written notice to Contractor, Owner may, without cause and without prejudice to any other right or remedy of Owner, terminate the Contract. In such case, Contractor shall be paid for, without duplication of any items:

1. Completed and acceptable Work executed in accordance with the Contract Documents prior to the effective date of termination, including fair and reasonable sums for overhead and profit on such Work;

2. Expenses sustained prior to the effective date of termination in performing services and furnishing labor, materials, or equipment as required by the Contract Documents in connection with uncompleted Work, plus fair and reasonable sums for overhead and profit on such expenses; and

3. Other reasonable expenses directly attributable to termination, including costs incurred to prepare a termination for convenience cost proposal.

B. Contractor shall not be paid on account of loss of anticipated overhead, profits, or revenue, or other economic loss arising out of or resulting from such termination.

ARTICLE 16 - CONTRACTOR’S REPRESENTATIONS

16.01 Contractor Representations
A. Contractor makes the following representations when entering into this Contract:

1. Contractor has examined and carefully studied the Contract Documents, and any data and reference items identified in the Contract Documents.

2. Contractor has visited the Site, conducted a thorough visual examination of the Site and adjacent areas, and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work.

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6 3. Contractor is familiar with and is satisfied as to all Laws and Regulations that may affect cost, progress, and performance of the Work.

4. Contractor has considered the information known to Contractor itself; information commonly known to contractors doing business in the locality of the Site; information and observations obtained from visits to the Site; the Contract Documents; and the Site- related reports and drawings identified in the Contract Documents, with respect to the effect of such information, observations, and documents on:
a. The cost, progress, and performance of the Work;
b. The means, methods, techniques, sequences, and procedures of construction to be employed by Contractor; and
c. Contractor’s safety precautions and programs.

5. Based on the information and observations referred to in the preceding paragraph, Contractor agrees that no further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract.

6. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents.

7. Contractor has given RPR written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by RPR is acceptable to Contractor.

8. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work.

9. Contractor’s entry into this Contract constitutes an incontrovertible representation by Contractor that, without exception, all prices in the Contract are premised upon performing and furnishing the Work required by the Contract Documents.

ARTICLE 17 - MISCELLANEOUS

17.01 Cumulative Remedies
A. The duties and obligations imposed by this Contract and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to any or all of them which are otherwise imposed or available by Laws or Regulations, by special warranty or guarantee, or by other provisions of the Contract. The provisions of this paragraph will be as effective as if repeated specifically in the Contract Documents in connection with each particular duty, obligation, right, and remedy to which they apply.

17.02 Limitation of Damages
A. Neither Owner, RPR, nor any of their officers, directors, members, partners, employees, agents, consultants, or subcontractors, shall be liable to Contractor for any claims, costs, losses, or damages sustained by Contractor on or in connection with any other project or anticipated project.

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6 17.03 No Waiver
A. A party’s non-enforcement of any provision shall not constitute a waiver of that provision, nor shall it affect the enforceability of that provision or of the remainder of this Contract.

17.04 Survival of Obligations
A. All representations, indemnifications, warranties, and guarantees made in, required by, or given in accordance with the Contract, as well as all continuing obligations indicated in the Contract, will survive final payment, completion, and acceptance of the Work or termination or completion of the Contract or termination of the services of Contractor.

17.05 Contractor’s Certifications
A. Contractor certifies that it has not engaged in corrupt, fraudulent, collusive, or coercive practices in competing for or in executing the Contract.

17.06 Controlling Law and Venue
A. This Contract is to be governed by the law of the state of California and, in the event of litigation, venue will be in the County of San Mateo.

17.07 Notices
A. All notices shall be in writing, and delivered in person, or transmitted by certified mail, postage prepaid. Notices required to be given to Owner or Contractor shall be addressed as appears in the signature block at the end of this Contract.

17.08 No Partnership or Agency
A. Nothing in this Contract nor in the contract documents shall be deemed to constitute a partnership in law between Owner and Contractor, or any subcontractor, to constitute either party as an agent of the other for any purpose; or to entitle either party to commit or bind the other in any manner unless expressly agreed upon in the contract documents.

17.09 Severability
A. If any part or provision of the contract documents is determined by any court to be illegal, invalid, or unenforceable, in whole or in part, the contract documents shall continue to be valid as to its other provisions and the remainder of the affected provision, unless it can be concluded from the circumstances that, in the absence of the provisions found to be null and void, the parties would not have entered into the contract documents. The parties shall use all reasonable efforts to replace any and all provisions or parts found to be null and void with provisions that are valid under the applicable law and come closest to their original intention.

17.10 Waiver
A. None of the following shall operate as a waiver of any provision of the contract documents, or of any power herein reserved by the Owner, or any right to damages herein provided: 1) inspection by the Owner or its authorized agents or representatives; 2) any order or certificate for payment, or any payment for, or acceptance of the whole or any party of the work by the Owner; 3) an extension of time; or 4) any position taken by the Owner or its authorized agents or representatives.

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6 17.11 Warranty
A. Contractor warrants and guarantees that the materials and equipment provided shall be at least of the quality specified and new unless otherwise required or permitted by the contract documents and, if no quality is specified, then the materials and equipment shall be of commercial grade, suitable for heavy public use in facilities of similar size and complexity,, that the work performed hereunder will be free from defects, and that the work will conform to the requirements of the contract documents.

IN WITNESS WHEREOF, Owner and Contractor have signed this Contract.

This Contract will be effective on __________________ (which is the Effective Date of the Contract).

OWNER: CONTRACTOR:

By: Matt Fabry By: Young Kang
Title: Public Works Director Title: President
Address for giving notices: Address for giving notices:
330 West 20th Avenue 783 Phillips Drive
San Mateo, CA 94403 City of Industry, CA 91748
License No.: CA License # 858483
(where applicable)

APPROVED AS TO FORM
Linh Nguyen
Assistant City Attorney

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EXHIBIT A

SCOPE OF WORK

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EXHIBIT B

INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS
ARTICLE 18 - MINIMUM SCOPE AND LIMIT OF INSURANCE

18.01 Contractor shall procure and maintain for the duration of the contract, and for five (5) years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees, or subcontractors.

18.02 Coverage shall be at least as broad as:

A. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

B.Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.

C.Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

D.Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.

E.Surety Bonds as described below.

F.Professional Liability (if Design/Build), with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

G.Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

18.03 If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

18.04 Self-Insured Retentions. Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the contractor shall cause the insurer shall to reduce or eliminate such self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The

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policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

ARTICLE 19 - OTHER INSURANCE PROVISIONS

19.01 The insurance policies are to contain, or be endorsed to contain, the following provisions:

A.The City, its officers, officials, employees, and volunteers are to be covered as additional insureds 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 and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor. 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, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

B. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

C. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.

19.02 Builder’s Risk (Course of Construction) Insurance A. Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.

B. If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.

19.03 Claims Made Policies
A. If any coverage required is written on a claims-made coverage form:

1. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.

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

3. If coverage is cancelled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.

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4. A copy of the claims reporting requirements must be submitted to the City for review.

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

19.04 Acceptability of Insurers
A. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the City.

19.05 Waiver of Subrogation
A.Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.

19.06 Verification of Coverage
A. Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. 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.

19.07 Subcontractors
A. Contractor shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

19.08 Surety Bonds.

A. Contractor shall provide the following Surety Bonds:

1. Performance Bond

2. Payment Bond

3. Maintenance Bond
B. The Payment Bond and the Performance Bond shall be in a sum equal to the contract price.

If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

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19.09 Special Risks or Circumstances.

A. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances.

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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: 72-4674 File ID: 24-8538 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: April 15, 2024
SUBJECT:

Temporary Standby Generator for Dale Avenue Pump Station Upgrade – Change Order RECOMMENDATION:

Approve Contract Change Order No. 4 to the Agreement with Herc Rentals, Inc. for a temporary emergency standby generator to support the Dale Ave Pump Station Upgrade project in an amount not to exceed $66,565.48, increasing the total agreement amount to $569,608.17; add $45,000 to the contingency reserve; extend the Agreement term to July 31, 2024; and authorize the Public Works Director to execute the change order in substantially the form presented and issue change orders within the contingency amount.

BACKGROUND:

The Basins 2 & 3 Collection System Improvements (Basins 2 & 3) is a Clean Water Program project that increases capacity and improves flow management to prevent sanitary sewer overflows in several areas throughout the City, including one at Dale Avenue Pump Station (DAPS). The DAPS Upgrade project included refurbishment of force mains, pump station equipment upgrades, and replacement of the existing emergency standby generator.

In October 2019, City Council awarded an agreement to Anvil Builders, Inc. (Anvil) to construct the DAPS Upgrade project.

Anvil’s scope of work is nearly complete; however, there is still ongoing work associated with installation of a permanent emergency standby generator. The emergency standby generator at DAPS is critical, providing backup power for the pumps and facility during power failures. DAPS is the City’s largest sewer pump station, with a significant portion of overall wastewater flow routed through the station. Due to Bay Area Air Quality Management District requirements to comply with the latest air quality emission standards, installation of new pollution abatement equipment for the generator is required. While installing the new generator and pollution abatement equipment, a temporary standby generator is required to ensure continuous power capability at the station.

In August 2022, City Council approved a $222,090.41 agreement with Herc Rentals, Inc. (Herc) to provide a temporary standby generator required to support the DAPS Upgrade Project throughout the remainder of Anvil’s efforts to install the permanent emergency standby generator. The Council also approved establishing a $110,046 contingency reserve in case of unforeseen conditions or delays. At the time of the agreement approval, the new permanent emergency generator was expected to be installed by the end of summer of 2023.

In July 2023, the Public Works Director utilized the contingency reserve to execute Contract Change Order No. 1, adding $107,170.16 to the agreement. This change order addressed additional costs not accounted for in the original quote and agreement, such as utilizing longer cables to relocate the temporary generator from the public right of way onto the DAPS site. Residential property owners adjacent to the DAPS site raised a concern that storing the temporary generator in the public right of way impacted residential parking, so the temporary generator was relocated onto the DAPS property to address this concern.

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CITY OF SAN MATEO
In August 2023, City Council approved Contract Change Order No. 2 to increase the total agreement value to $436,477.21, to extend contract end date to January 2024, and approved an additional contingency reserve of $80,000.

In February 2024, the Public Works Director utilized the contingency reserve to execute Contract Change Order No. 3 to extend the use of the temporary generator through April 2024. Completion of the DAPS project has been challenging due to continued procurement delays and seismic design updates, which have extended the anticipated completion date to July 2024. As a result, an increase of $66,565.48 to the temporary generator agreement with Herc is required in order to have a temporary standby generator available through the end of July 2024, which is the estimated completion for the new permanent generator.

Based on the above, staff recommends approval of Contract Change Order No. 4 to increase the value of the agreement by $66,565.48, increasing the total agreement value to $569,608.17, to add $45,000 to the contingency reserve in case further unforeseen delays associated with procurement, installation, testing, and startup of the new permanent generator occur, and to extend the Agreement term until July 31, 2024.

BUDGET IMPACT:

Sufficient funds are available in the Basins 2 and 3 Collection System Improvements Project (46s003) to fund this change order.

ENVIRONMENTAL DETERMINATION:

The work addressed by this administrative report is being undertaken to support the Clean Water Program. This project is subject to the requirements of the California Environmental Quality Act (CEQA), the general components of which are included as part of the Final Programmatic Environmental Impact Report (Final PEIR) (SCH No. 201532006) that was prepared for the Clean Water Program. The Final PEIR was certified by City Council on June 6, 2016.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Contract Change Order No. 4

STAFF CONTACT
Tom Williams, Senior Engineer
[email protected]
(650) 522-7307
Deryk Daquigan, Engineering Manager
[email protected]
(650) 522-7287

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CITY OF SAN MATEO

PUBLIC WORKS DEPARTMENT
330 WEST 20TH AVENUE
SAN MATEO, CA 94403
(650) 522-7300 CONTRACT CHANGE ORDER # 4
PROJECT: Temporary Standby Generator for Dale Ave Pump Station Upgrade TO: Herc Rentals, Inc.

CONTRACT CHANGE ORDER NO. 4 Page 1 of 1
PO/SCON No. PO-0000378 Date 4/1/2024
Fund 590 Capital Projects Fund
Cost Center Wastewater Treatment Plant
Spend Category Other Contractual Services
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
Following is a description of work to be done, estimate of quantities, and prices to be paid.

The Original Agreement for renting of the 1000 kW temporary emergency standby generator at Dale Avenue Pump Station (DAPS) was signed with HercRentals on October 10, 2022. This rental agreement was for a period from September 16, 2022 through June 16, 2023.

Subsequently, CCO No. 1 was issued on August 7, 2023 for the supply of additional length of cables associated with relocation of the generator and for extending the rental period from June 16 through September 2023. Subsequent CCO No. 2 issued on August 29, 2023 extended the generator rental period through January 2024 and CCO No. 3 issued on February 16, 2024 further extended the rental period through April 31, 2024.

This Contract Change Order includes an extension of the temporary 1000 kW emergency standby generator rental for additional three (3) months from May 1, 2024 through July 31, 2024. The total cost of this extended rental period is $66,565.48 as per the attached quote from HercRentals.

Total cost of change not to exceed: $66,565.48
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, extension of time through July 31, 2024 will be allowed.

Date Accepted:

Contractor: Herc Rentals, Inc.

By:

Title:

DISTRIBUTION: Purchasing, City Clerk, Contractor, Construction Manager, Project Analyst, Project File

STATEMENT OF ACCOUNT
Original Contract Price $ 222,090.41
Previous Change Orders $294,468.12
Total to date $516,558.53
This Change Order $66,565.48
Revised Contract Price $569,608.17
Date Approved:

By:

Matt Fabry, 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: 7 Section Name: CONSENT CALENDAR Account Number: 10-2011 File ID: 24-8571 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: April 15, 2024
SUBJECT:
2024 Annual Investment Policy – Approval
RECOMMENDATION:

Adopt a Resolution to approve the City of San Mateo 2024 Investment Policy BACKGROUND:

The investment of funds by a California local agency, including the types of securities in which an agency may invest, is governed by the California Government Code (Sections 53000-53610). The City’s Investment Policy may be more restrictive than the Government Code; however, it may not be more permissive. Formal investment policies by local agencies are not required by law, but they are considered a best practice to provide guidelines for investing City funds in accordance with the Government Code. The City’s practice is to have the City Council review and approve the policy annually regardless of whether or not there are recommended changes.

The changes to the 2024 Investment Policy are mainly language cleanup to reflect mandates from Senate Bill 1489, which prohibits forward settlement time for trades from exceeding 45 days. Accordingly, the City's Investment Policy, included in Att 2, was updated to ensure compliance with the updated legislation.

BUDGET IMPACT:

Approval of the proposed changes to the City's Investment Policy for 2024 will not have a budgetary impact.

ENVIRONMENTAL DETERMINATION:

This 2024 Investment Policy 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 - 2024 Investment Police Track Changes

STAFF CONTACT
Karen Huang, Finance Director
[email protected]
(650) 522-7110

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CITY OF SAN MATEO
RESOLUTION NO. ___ (2024)

ADOPTING THE INVESTMENT POLICY FOR THE CITY OF SAN MATEO WHEREAS, investment policies guide staff and their advisors for all investment activities on behalf of cities; and
WHEREAS, those investment activities are primarily governed by the individual city’s adopted investment policies and by California state law (Government Code sections 53600-53610); and WHEREAS, the Investment Policy for the City of San Mateo is consistent with state law and, for the purpose of added safety and liquidity, is more restrictive than state law; and WHEREAS, Government Code section 53646 requires annual review and approval of a city’s investment policy only if there are changes, however it encourages cities to conduct an annual review and approval process even if there are no proposed changes; and WHEREAS, recognizing the importance of the City’s Investment Policy, staff proposes to continue the annual Council review and approval process even if there are no proposed changes; and WHEREAS, the Investment Advisory Committee concurs with staff’s recommendation to adopt the 2024 Investment Policy;
NOW, THEREFORE, THE SAN MATEO CITY COUNCIL HEREBY RESOLVES that:

1. In accordance with California Quality Act Guidelines section 15378(b)(5), this activity is not a project subject to CEQA in that it can be seen with certainty that it won’t have a significant impact on the environment.

2. The 2024 Investment Policy for the City is hereby adopted.

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THE CITY OF SAN MATEO

AND CITY OF SAN MATEO, ACTING AS SUCCESSOR AGENCY TO THE REDEVELOPMENT

AGENCY OF THE CITY OF SAN MATEO

I. SCOPE AND AUTHORITY
In accordance with the Charter of the City of San Mateo, (the “City”), the Finance Director/City Treasurer is responsible for investing the unexpended cash of the City and the Successor Agency to the Redevelopment Agency of the City of San Mateo (the “Successor Agency”) in the City Treasury. The authority governing investments for local agencies is set forth in the California Government Code Sections 41006 and 53600 et. seq.

This Investment Policy (the “Policy”) applies to all the investment activities of the City and the Successor Agency. The Policy will also apply to all other funds under the Finance Director/City Treasurer’s span of control unless specifically exempted by statute or ordinance. All the invested financial assets are accounted for in the City’s fund accounting system which includes: General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, Debt Service Funds, Internal Service Funds, and Successor Agency Funds.

All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually.

II. OBJECTIVES
City and Successor Agency funds shall be invested in accordance with all applicable City policies and codes, State statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:

A. Safety of principal

Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.

B. Liquidity Standard

The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

20232024

INVESTMENT POLICY

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C. Return on investment

The City’s investment portfolio shall be structured to attain a market-average rate of return through economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

III. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.

The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is hereby delegated to the Finance Director/City Treasurer (or his/her designee), who is appointed by the City Manager in accordance with the City Charter. Staff members of the Finance Department’s Treasury Division may be assigned to perform the day-to-day treasury activities related to the investment of City funds. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.

The City may utilize the services of an investment adviser registered under the Investment Advisers Act of 1940, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City’s financial resources. The adviser shall follow this Policy and such other written instructions as provided. Use of professional investment advisers is subject to City review and overriding discretion which will be exercised as needed. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

IV. INTERNAL CONTROLS
The Finance Director/City Treasurer has established a system of internal controls to ensure compliance with the investment policies and procedures of the City, the Successor Agency, and the California Government Code. Such controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees of the City. Investment decisions are made by the Finance Director/City Treasurer or his/her designee and executed by staff of the Finance Department’s Treasury Division. All wire transfers initiated by Finance Department staff members must be approved and transmitted by the Finance Director/City Treasurer or his/her designee. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction.

Timely bank reconciliation is conducted to ensure proper handling of all transactions.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by senior finance staff on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review and perform procedure testing on the City’s cash and investments. The Finance Director/City Treasurer shall review and assure compliance with investment processes and procedures.

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V. ETHICS AND CONFLICT OF INTEREST
In accordance with California Government Code Sections 1090 et seq. and 87100 et seq., officers and employees of the City will refrain from any activity that could conflict with the proper execution of the investment program or which could impair their ability to make impartial investment decisions, and all investment personnel shall subordinate their personal investment transactions to those of the City. In addition, City Council members, the City Manager, and Finance Director/City Treasurer, shall comply with the reporting requirements of California Government Code Section 87203 and regulations of the Fair Political Practices Commission and file a Statement of Economic Interest annually.

VI. PRUDENT INVESTOR STANDARD
The standard of prudence to be used for managing the City’s investments shall be California Government Code Section 53600.3, the prudent investor standard, which states that “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

The City recognizes that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized, that in a well-diversified investment portfolio, occasional measured losses may occur due to economic, bond market, or individual security credit events. These occasional declines in value must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.

The Finance Director/City Treasurer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of this Policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

VII. AUTHORIZED INVESTMENTS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit quality listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers. The authorized investments are described below.

A. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and

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interest. There is no limitation on the percentage of the portfolio that can be invested in this category. The maximum maturity shall not exceed five years.

B. Federal agency or United States government-sponsored enterprise (“GSE”) obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

The aggregate investment in federal agency securities/GSEs shall not exceed 70 percent of the City’s total portfolio, and the securities of any one federal agency/GSE shall not exceed 40 percent of the City’s total portfolio. The maximum percent of agency callable securities in the portfolio will be 20 percent. The maximum maturity shall not exceed five years.

C. A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond not defined in paragraphs A or B of the Authorized Investments section of this policy. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. No more than 5 percent of the City’s total portfolio shall be invested in any one issuer. Purchase of securities authorized by this subdivision shall not exceed 20 percent of the City’s total portfolio.

D. Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States and rated in a rating category of “A” or the equivalent or better by a Nationally Recognized Statistical Rating Organization(NRSRO). The aggregate investment in medium-term notes shall not exceed 30 percent of the City’s total portfolio, and no more than 5 percent of the City’s total portfolio shall be invested in the medium-term notes of any one issuer. The maximum maturity shall not exceed five years.

E. Non-negotiable Certificates of Deposit with a maturity not exceeding three years from the date of trade settlement, in state- or nationally-chartered banks or savings banks that are insured by the FDIC, subject to the limitations of California Government Code Section 53638. Amounts in excess of FDIC insurance coverage shall be secured in accordance with California Government Code Section 53652. No more than 5 percent of the City’s total portfolio shall be invested in the deposits of any one bank. The aggregate investment in non- negotiable certificates of deposit shall not exceed 30 percent of the City’s total portfolio. The maximum maturity shall not exceed three years.

F. “Prime” commercial paper with a maturity not exceeding 270 days from the date of trade settlement with the highest ranking or of the highest letter and number rating as provided for by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below:

1) The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated in a rating category of “A” or the equivalent or better by an NRSRO.

2) The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program-wide credit enhancements, including, but not limited to, overcollateralization, letters of credit or surety bond; and (3) have commercial paper that is rated at least “A-1” or the equivalent by an NRSRO.

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The City may purchase no more than 10 percent of the outstanding commercial paper of any one issuer, and the aggregate investment in commercial paper shall not exceed 25 percent of the City’s total portfolio. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000. Further, no more than 5 percent of the City’s total portfolio shall be invested in the commercial paper of any one issuer.

G. Eligible Banker’s Acceptances with a maturity not exceeding 180 days from the date of trade settlement, rated at least “A-1” or the equivalent or better by an NRSRO, drawn on or accepted by a commercial bank, whose deposits are insured by the FDIC, and whose senior long-term debt is rated in a rating category of “A” or the equivalent or better by an NRSRO at the time of purchase. No more than 5 percent of the City’s total portfolio shall be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 40 percent of the City’s total portfolio.

H. Repurchase Agreements with a final termination date not exceeding 90 days collateralized by obligations of the U.S. Treasury, federal agencies and/or government-sponsored enterprises (described in sections VII.A and VII.C above). For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102 percent of the dollar value of the funds borrowed. All collateral must be delivered to the City’s custodian bank by book entry, physical delivery, or by a third- party custodial agreement. The market value of the collateral securities shall be marked-to- the-market at least quarterly, and the value of the underlying collateral must be brought back up to 102 percent no later than the next business day. Market value must be calculated each time there is a substitution of collateral. No more than 10 percent of the City’s total portfolio shall be invested in repurchase agreements with any one counterparty, and the aggregate investment in repurchase agreements shall not exceed 10 percent of the City’s total portfolio.

The City or its custodian shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to Repurchase Agreement.

The City may enter into Repurchase Agreements only with primary dealers of the Federal Reserve Bank of New York. Approved Repurchase Agreement counterparties shall have a short-term credit rating of at least “A-1”, or the equivalent or better, and a long-term credit rating in the rating category of “A”, or the equivalent or better, by a NRSRO. Repurchase agreement counterparties shall execute a City-approved Master Repurchase Agreement with the City. The Finance Director/City Treasurer shall maintain a copy of the City’s approved Master Repurchase Agreement along with a list of broker/dealers who have executed this agreement.

Reverse repurchase agreements will not be permitted.

I. LOCAL AGENCY INVESTMENT FUND. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer (per Government Code Section 16429.1) for the benefit of local agencies up to the maximum amount permitted by LAIF.

J. SAN MATEO COUNTY POOL. The City may invest in the San Mateo County Pool established by the San Mateo County Treasurer for the benefit of local agencies (as established in California Code Section 53684). No more than 30 percent of the market value of the City’s total portfolio may be invested in this category.

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K. CALIFORNIA ASSET MANAGEMENT PROGRAM. The City may invest in the California Asset Management Program (CAMP) a California Joint Powers Authority established to provide California public agencies with professional investment services (California Code Section 53601 (p)). No more than 30 percent of the market value of the City’s total portfolio may be invested in this category.

L. Shares of beneficial interest issued by a diversified management company that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Provided that the money market funds are “no-load” (no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) have a rating of “AAA” or the equivalent by at least two NRSROs or have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). No more than 10 percent of the City’s total portfolio shall be invested in any one issuer and the aggregate investment in money market funds shall not exceed 20 percent of the City’s total portfolio.

M. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue-producing property owned, controlled, or operated by the state or any local agency or by a department, board, agency, or authority of the state or any local agency.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Securities in this section must have a short-term rating of “A-1” or the equivalent or better by an NRSRO or a long-term rating in the category of “A” or the equivalent or better by an NRSRO. No more than 5 percent of the City’s total portfolio shall be invested in any one municipal issuer, and the aggregate investment in municipal bonds shall not exceed 20 percent of the City’s total portfolio. The maximum maturity shall not exceed five years.

N. Negotiable certificates of deposit or deposit notes issued by a nationally- or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally-licensed or by a state- licensed branch of a foreign bank. Eligible negotiable certificates of deposit in amounts up to the FDIC insured limit do not require any credit ratings. Amounts above the FDIC insured limit must be issued by institutions which have long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO, or have short-term obligations rated “A-1” or its equivalent, or higher by an NRSRO. No more than 5 percent of the City’s total portfolio shall be invested in the negotiable certificates of deposit of any one issuer, and the aggregate investment in negotiable certificates of deposit shall not exceed 30 percent of the City’s total portfolio. The maximum maturity shall not exceed five years.

O. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the City’s moneys that

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may be invested pursuant to this section. No more than 10 percent of the portfolio may be invested in one single issuer.

P. Collateralized bank deposits that are the City’s deposits with financial institutions. Bank deposits will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be approved in advance by resolution of the City Council.

NOTE 1: References throughout this document to “the City’s total portfolio” will be the market value of the portfolio at the time the specific security is purchased.

VIII. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S.

Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited. Local governments that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

In the event all general objectives mandated by state law and set forth in Section III above are met and created equal, investments in corporate securities and depository institutions will be evaluated for social and environmental concerns. Investments are prohibited in entities that receive a significant portion of their revenues from the manufacture of tobacco products, fossil fuels, firearms, or weapons not used in our national defense.

IX. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Finance Director/Treasurer shall develop a questionnaire which will answer the following general questions:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how is it assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

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X. SELECTION OF BROKER/DEALERS
The Finance Director/City Treasurer shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to conduct transactions only with those authorized firms. To be eligible, a firm must be licensed by the State of California as a broker/dealer as defined in Section 25004 of the California Corporations Code, and:

1. Be recognized as a Primary Dealer by the Federal Reserve Bank of New York, or

2. Report voluntarily to the Federal Reserve Bank of New York, or

3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).

Each authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information form. The Finance Director/City Treasurer shall maintain a list of the broker/dealers that have been approved by the City, along with each firm’s most recent Broker/Dealer Information Request form.

If the City has not engaged the support services of an outside investment advisor while in the process of executing a particular transaction, the authorized broker/dealer(s) shall provide certification of having received and reviewed this Policy. For transactions initiated through an investment advisor, the investment advisor may use their own list of approved broker/dealers and financial institutions, which it will maintain and review periodically.

The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item F of the Authorized Investments section of this Policy.

XI. COMPETITIVE TRANSACTIONS
Each investment transaction shall be competitively transacted with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction, and their bid and offering prices shall be recorded.

If the City is offered a security for which there is no other readily available competitive offering, then the Finance Director/City Treasurer will document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

XII. SELECTION OF BANKS
The Finance Director/City Treasurer shall maintain a list of banks approved to provide depository and other banking services for the City. To be eligible for authorization, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5, shall be a member of the FDIC, and shall secure all deposits exceeding FDIC insurance coverage in accordance with California Government Code Section 53652.

XIII. SAFEKEEPING AND CUSTODY
The Finance Director/City Treasurer shall select a bank to provide safekeeping and custodial services for the City, in accordance with the provisions of Section 53608 of the California Government Code. A City-approved Safekeeping Agreement shall be executed with the custodian bank prior to utilizing that bank’s safekeeping services. The custodian bank will be selected on the basis of its ability to provide satisfactory safekeeping services and the competitive pricing of them.

The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery-versus-payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices.

All investment securities will be delivered by either book entry or physical delivery and will be held

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by the City’s custodian bank, its correspondent bank or its Depository Trust Company (DTC) participant account.

XIV. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment, either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

XV. RISK MANAGEMENT AND DIVERSIFICATION

Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.

 No more than 5 percent of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.

 If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

o If a security is downgraded, the Finance Director/City Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

o If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return.

The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

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 The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.

 The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20 percent) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints, and risk tolerances.

XVI. PORTFOLIO PERFORMANCE
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. An appropriate benchmark or benchmarks will be established against which portfolio performance shall be compared on a regular basis. When comparing the performance of the City’s portfolio, its rate of return will be computed net of all fees and expenses.

XVII. MONTHLY REPORTING
Monthly, the Finance Director/City Treasurer shall submit to the City Council a report of the investment earnings and performance results of the City’s investment portfolio. The report shall include the following information:

1. Investment type, issuer, date of purchase and maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;

2. A description of the funds, investments and programs;

3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;

4. A statement of compliance with this Policy or an explanation for non-compliance; and

5. A statement of the City’s ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case.

6. A statement of transactions made during the month.

XVIII. INVESTMENT POLICY ADOPTION
This Investment Policy shall be adopted by resolution of the City Council. The Policy shall be reviewed annually by the Investment Advisory Committee and any modifications made thereto must be approved by the City Council.

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From: Mason Fong
To: City Council (San Mateo)
Cc: Clerk
Subject: Public Comment for 4/15/24 Council Agenda Items 7, 12 & 13 Date: Monday, April 15, 2024 6:46:52 PM
Attachments: Screen Shot 2024-04-15 at 6.35.22 PM.png
Screen Shot 2024-04-15 at 6.24.18 PM.png
Greetings Councilmembers,
Just wanted to share a few thoughts on the Council agenda tonight:

Item #7: Investment Policy

1. The State government code restricts investments in crypto currencies. However, the State code does not restrict Cities from investing in convertible debt notes. From my non-expert perspective of the State Code, the City may be able to theoretically contact a company that is crypto-adjacent and make a deal to purchase a convertible debt note.

Example: The City of San Mateo contacts the company Microstrategy (MSTR) and requests to purchase a convertible debt note that would amortize much better than the City's current investments (which only bring in around 3% revenue/year), capitalizing on crypto market trends. Without explaining the complexities of Bitcoin and why it is a good asset to time through this funding strategy, just simply look at MSTR's performance over the past year (which admittedly is cyclical and volatile). A special convertible debt note might be able to be agreed upon that produces a more positive result/return than the City's current investment vehicles. - I would recommend the Council inquire with City staff if a City could purchase a convertible debt note from a private company. If so, then this might be of merit in studying, especially to address the recurring structural deficit related to the VLF/ERAF issue.

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Item #12: Capital Improvement Plan

1. Council should look at utilizing the City's Wastewater Treatment Facility as a revenue source, making a deal with any other water provider to sell your excess water to them.

This is something I explored while working in the City of San Jose between the City of San Jose and the Santa Clara Valley Water District and while as a Councilmember in the City of Sunnyvale.
- I would recommend Council ask questions of City staff to see what plans the City has to make water deals to generate revenue for the General Fund through the Wasterwater Treatment Facility. If no plans at this time, this should be prioritized for further study.

2. The Central Park Master Plan needs to incorporate the establishment of a permanent dog park and a permanent basketball court. The current pilot dog park also needs more resourcing in the form of a water station at the very least. We have baseball, softball, tennis, pickleball but no basketball, this should be changed. I currently travel to Foster City to play basketball with friends and have done so since growing up here. - I would recommend Council motion to 1) add a water station to the current pilot dog park & 2) direct City staff to return to Council at the next opportunity with a plan to incorporate a permanent dog park at Central Park and a permanent Basketball Court.

Item #13: Budget

1. The City should look at Pension Obligation Bonds (POBs) as a mechanism to ease UAL stresses on the budget and make smart investments that can pay off over time. The City should consult with the City of San Jose's recent POB studies and hire consultants to look at this as a solution to addressing the City's recurring structural deficits resulting from the VLF/ERAF issue. If the State does not change the VLF/ERAF issue, the City must get creative to ensure high quality public services don't get cut over time and that city employees are protected in their pension outlooks. Here is the study session from
the City of San Jose in 2021.
- I recommend the Council ask about POBs and direct City staff to return to Council at the next available time with a pro/con assessment of utilizing POBs either now or in the future to meet unfunded liabilities.

Here is a slide from that study session of the potential positive impacts of POBs:

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Thank you for your consideration and for your public service. --
Sincerely,
- Mason Fong

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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: 8 Section Name: CONSENT CALENDAR Account Number: 10-2111 File ID: 24-8583 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Information Technology Department
MEETING DATE: April 15, 2024
SUBJECT:

Enterprise Resource Planning Software Project - Supplemental Budget Appropriation and Change Orders RECOMMENDATION:

Adopt a Resolution to approve a supplemental budget appropriation of $211,305 of unassigned fund balance from the Equipment Replacement Fund to increase the budget for the Enterprise Resource Planning Software Project; approve Change Order No. 7 to the master services agreement with Collaborative Solutions, LLC for ERP implementation services in the amount of $396,705, for a new agreement total of $4,539,370; approve Change Order No. 443997 to the master subscription agreement with Workday, Inc. for delivery assurance services in the amount of $24,600, for a new agreement total of $177,355; and authorize the City Manager to execute the Change Orders in substantially the form presented.

BACKGROUND:

In February 2022, the City Council awarded a contract to Collaborative Solutions, LLC in the amount of $2,527,160 as part of the enterprise resource planning (ERP) system replacement project (Project). Collaborative Solutions, LLC is now known as Cognizant.

The ERP supports the City’s core administration functions of Human Capital Management (HCM), Payroll, and Core Financials. ERP implementation has occurred in phases. Phase 1 covered Core Financials, began in March 2022, and went live on November 1, 2022. Phase 2 began in October 2022 and covers HCM and Payroll. The Plan, Architect, and Configure Stages of Phase 2 have been completed, and project work is currently focused on the End-to-End Test Stage. When the End-to-End Test Stage is complete, the project will continue with Parallel testing, Deployment, and Post-Production Support. End-to-End testing is a critical time when HR and Payroll staff verify the system works as configured. Delays with End-to-End testing have resulted in the need for timeline extensions and Change Orders.

End-to-End testing was originally scheduled for completion on August 18, 2023, but was extended by 26 weeks with the approval by Council of Change Orders No. 5 and No. 6 on September 18, 2023. This resulted in a new target Go-Live in June 2024 and increased the Project budget by $780,580. However, in November 2023, it became clear that insufficient testing progress was occurring to meet the new Go-Live target. While Change Orders No. 5 and No. 6 extended the Project schedule and increased consultant resource commitments, they did not properly address the root causes of Project delays.

Approval of Change Order No.7 will extend the Project timeline an additional 26 weeks for a Go-Live in December 2024, concurrent with the first pay period of calendar year 2025. It will require significantly less funding than prior Change Orders. Rather than extend time and money on the same trajectory, the project team will address Project deficiencies and remediate them through a Project re-plan. This new approach will re-emphasize City staff doing the functional work, as is the best practice for Workday projects, rather than outsource that work to consultants to fill resource gaps. This re-plan also includes new Cognizant project managers and leadership to provide more support and guidance for the Project.

Additionally, the City’s Project Steering Committee formerly consisted of HR and Finance Directors who have since left City

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CITY OF SAN MATEO
employment. These roles have been re-filled by the City’s new Finance Director, IT Director, and an Interim HR Director (recruitment for a permanent Director is underway). The Project Steering Committee reports to the City Manager, who serves as the Project Sponsor.

Change Order No. 7 is a critical step in the Project re-plan. Change Order No.7 extends the timeline through December 2024, but also takes a more efficient approach to the Project plan, work tasks, resources, and project execution. HR and Payroll staff are re-committed to the Project with full support of leadership. Project management flaws have been corrected, Project status is being closely monitored, and a clear escalation path is defined that goes directly to the City Manager. Change Order No. 7 increases project costs, but to a far lesser extent than previous change orders, and in a more tightly managed context where City subject matter experts and leadership are shouldering the appropriate burden, rather than paying for consultant resources to fill functional gaps. As reflected in Attachment 2 (Change Order No. 7), the additional scope cost is $370,705. Cognizant has provided a ‘project investment’ credit of $80,000, reducing that cost to $290,705. Recognizing the importance of organizational change management and training (OC&T), this change order also adds $106,000 on a time and materials basis to ensure successful system roll-out to the citywide user base. As reflected in Attachment 3 (Change Order No. 443997), the additional delivery assurance services from Workday for the extended period will cost $24,600. All told, the Project cost increase is $421,305, minus a $210,000 savings from City staff members performing the functional work rather than consultants, resulting in a net Project increase and new appropriation of $211,305.

BUDGET IMPACT:

The proposed resolution, included as Attachment 1, approves adding $211,305 supplemental budget appropriations for the ERP Project from unassigned fund balance of the Equipment Replacement Fund. This fund balance will be replenished over a 10-year period.

ENVIRONMENTAL DETERMINATION:

Approval of the change orders for ERP implementation support is not subject to CEQA review under the common sense exemption in it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (CEQA Guidelines Section 15061.) In addition, approval of a supplemental budget appropriation for the Project is not subject to CEQA review in that it consists of 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).

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - Change Order No. 7
Att 3 - Change Order No. 443997

STAFF CONTACT
Pete Owen, Director, Information Technology
[email protected]
(650) 522-7074
Karen Huang, Deputy Director
[email protected]
(650) 522-7110

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1 0
0 2
3 CITY OF SAN MATEO
RESOLUTION NO. ____ (2024)
APPROVING A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $211,305 FROM THE

UNASSIGNED FUND BALANCE OF THE EQUIPMENT REPLACEMENT FUND TO THE CAPITAL BUDGET FOR THE ENTERPRISE RESOURCE PLANNING SOFTWARE PROJECT (Project No. 200001) WHEREAS, the City Council awarded a master services agreement to Collaborative Solutions, LLC in February 2022 for enterprise resource planning (ERP) system implementation services; and WHEREAS, additional time is required to complete End-to-End testing to ensure proper system functioning and to prevent payroll or benefits errors that may adversely impact employees at go-live; and WHEREAS, an additional 26 weeks will provide Human Resources and Payroll more time to complete testing, develop training materials, deliver training to users, and deploy on a new go-live date of December 22, 2024; and
WHEREAS, approval of the appropriation will enable the execution of Change Orders with Collaborative Solutions, LLC and Workday, Inc. to assist with ERP-related services during the additional 26 weeks.

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

1. This City Council action consisting of the adoption of a resolution approving a supplemental budget appropriation for the Enterprise Resource Planning Software Project is not subject to CEQA review, in that it consists of 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. A supplemental budget appropriation of $211,305, of unassigned fund balance from the Equipment Replacement Fund, to increase the budget for the Enterprise Resource Planning Software Project (Project No. 200001) by $211,305 is approved.

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1 Project Change Order #7
© 2023 Cognizant

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2 Contents
Project change order.................................................................................................................................3 Summary.....................................................................................................................................................3 Request Description..................................................................................................................................4 Business Purpose / Reason for Change................................................................................................4 Impact Assessment...................................................................................................................................5 Payment Terms..........................................................................................................................................6 Assumptions...............................................................................................................................................6 Authorization...............................................................................................................................................7

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3 Project change order
This Change Order form is used for requesting, documenting and approving changes to the Workday deployment or other applicable service offering, including, but not limited to, changes to the project’s Scope, changes for a major configuration element, project timeline/schedule changes, integration specifications changes, addition of resources or any other deliverable change from the originally planned Workday deployment or applicable service offering.

Summary
Client: City of San Mateo
SOW/Project Name: PROJ_54648/ City of San Mateo, CA – HCM/Pay - Phase 2 Change Order #: C07
Project Manager (Client): Pete Owen, Director of IT
Project Sponsor (Client): Pete Owen, Director of IT
Engagement Manager: Ken Clark Cognizant
Acceptance Due Date: 4/30/2024
Change Type: Term Extension (additional hours added)
Impact Assessed by: Jane Davis, Ken Clark, Neil Brosnan, Sarah Gardner, Rachel Taylor, Pete Owen, Jenifer Forsythe
Priority: High
Billing: Change #1: The project extension scope will be billed under current project.

Change #2: The OC&T scope of work to be billed separately under new T&M project.

Contract Line Type: The project extension scope will be Fixed Fee.

The OC&T scope of work will be Time & Material
Is new PO# required? No new PO# needed

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4 Request Description
Change #1: This Change Order extends the project timeline 26 weeks and set the anticipated Go-Live date to December 22, 2024. The Client has also decided to not move forward with Recruiting.

Go-Live Push Items Change Order Price
Extension of Resources for all Functional areas
including the EM
$361,630.00
Removal of Recruiting. Decouple recruiting
from the HCM business process (Hire, Job
change & Add Additional Job BP). Provide
additional testing support related to regression
testing the modified business processes.
$9,075.00
Sub Total $370,705.00
Cognizant Investment $80,000.00
“Go-Live” Change Order Amount $290,705.00
Change #2: New Scope. Provide additional Organizational Change Management & Training (OC&T) support as outlined in Appendix A.

OC&T Proposal Items Change Order Price
OC&T Architect
- Includes advising on resistance approach &
advice on sustainment best practices.
- Provide recommendations on training methods &
reinforcement activities to increase adoptions
$22,000.00
Training support $42,000.00
OC&T support $42,000.00
“OC&T” Change Order Amount $106,000.00
Change #3: The following projects end dates will also be revised:
•City of San Mateo, CA - FINS - Phase 1 (The remaining Adaptive working is under this project)
•City of San Mateo – Change Order #6 – Staff Aug on current project (Testing staff augmentation is under this project)

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5 Business Purpose / Reason for Change
Change #1: The client required more time to complete the End-to-End testing. Therefore, the project go-live date will move to 12/22/2024 from 7/21/2024 (CO#5). As a result of the extension of the project go-live date, the extended Post production support for Integrations and Payroll support, as stated under CO#6, end date will become on 4/11/2025.

Change #2: The client has requested additional Organizational Change Management & Training services to augment their Change Management work.

Change #3: Need to align all projects end dates to ensure work can continue.

Impact Assessment
Project Activities
Affected:

Timeline and Scope affected as a result of this change order Deliverables
Affected:

As per Appendix A
Project Schedule
Impact:

Schedule impact will include:
•Project extension of 26 weeks
•Current Go-Live Date 07/21/2024
•New Go-Live Date 12/22/2024
•Extended E2E testing by 14 weeks
•Extended Parallel testing by 4 weeks
•UES period will occur after the Parallel testing and be for 8 weeks •Current Project end date 10/13/2024
•Revised project end date 4/11/2025
Current Timeline
Total 109 weeks
4 12 16 49 8 4 16
Current Plan Stage Architect
Stage
Configuration
& Prototype
Testing Payroll
Parallel
Deploy Post
Production
Start 9/12/2022 10/10/2022 1/2/2023 4/24/2023 4/1/2024 5/27/2024 6/24/2024 End 10/7/2022 1/1/2023 4/23/2023 3/31/2024 5/26/2024 6/23/2024 10/13/2024 Revised Timeline
Total 135 weeks
4 12 16 63 20 4 4
Revised Plan Stage Architect
Stage
Configuration
& Prototype
Testing Payroll
Parallel +
UES
Deploy Post
Production
Start 9/12/2022 10/10/2022 1/2/2023 4/24/2023 7/8/2024 11/25/2024 12/24/2024 End 10/7/2022 1/1/2023 4/23/2023 7/7/2024 11/24/2024 12/23/2024 4/11/2025 Change 0 0 0 14 12 0 0

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6 Pricing Matrix Change #2: The following is the T&M Pricing Matrix:

Role Hourly
Rate
Estimated
Effort Total
Senior Principal Consultant $275 80 $22,000.00
Principal Consultant – Training $210 200 $42,000.00
Principal Consultant – OC&T $210 200 $42,000.00
Total 480 $106,000.00
Payment Terms
Change #1: The Total amount $290,705.00 will be split amongst the current milestone payment schedule. Payments for this change order will be made according to the milestone payment schedule below:

Fixed Fee and Invoicing
Event Invoice
Date
Current
Invoice
Amount CO7
Revised
Amount
(After C07)
Plan Stage: Delivery of Plan Artifacts 10/7/2022 $124,314.00 N/A Architect Stage: Sign off 1/01/2023 $251,529.75 N/A
Configure Stage: Delivery of End to End
Tenant
4/23/2023 $385,603.09 N/A
Test Stage: Delivery of End to End – 2
Tenant
10/02/2023 $499,280.00 N/A
Test Stage: Completion of End to End
Test
3/31/2024
6/7/2024
$431,223.09 $156,533.46 $587,756.55
Test Stage: Completion of Parallel Test 5/26/2024
9/30/2024
$385,603.07 $134,171.54

$519,774.61
Deploy Stage: Completion of Push to
Production (Go Live)
6/23/2024
12/23/2024
$310,785.00 $0 $310,785.00
Post Production Support: Completion of
Project
7/21/2024
4/11/2025
$155,757.00 $0 $155,757.00
Total Payments $2,544,095.00 $290,705.00 $2,834,800.00
Change #2: Time & Materials SOW: This Change Order will be billed monthly on a Time and Materials (“T&M”) Basis based on actual usage at the rates set forth in the SOW and as identified in the Pricing Matrix above.

Assumptions

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7 •Any additional changes after this date will go through our Change Control process and may have to be handled post go-live.
•All Assumptions from the SOW dated 21 February 2022 apply to this Change Order •
Authorization
Client Authorization Signature Cognizant Authorization Signature Name Name
Job Title Job Title
Date Date

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8 Appendix A - Organizational Change Management Scope
Cognizant Services Client Responsibilities
Organizational
Change
Management
•Facilitate weekly OC&T
workstream meetings for
on-going support and guidance
on usage of tools and
templates, for the duration of
the project
•Advise on resistance
management approach
•Provide overview of reward and
recognition materials
•Confirm major change impacts
for inclusion in readiness
materials
•Support the development of
end-user communications
verbiage, up to fifty (50) hours,
throughout the remainder of the
project
•Develop updated Change
Champion Network Plan
•Support Change Champion
Network activities, up to
fifty (50) hours, throughout the
remainder of the project
•Develop Change Impact
Readout
•Introduce In-System Guidance
planning tools
•Advise on sustainment best
practices
•Provide organizational change
counterpart to regularly
interface
with Cognizant’s OC&T team
•Engage project sponsor in
overview presentation of
resistance management and
reward and recognition
materials
•Partner in the confirmation of
change impacts
•Assume ownership of the
Change Impact Analysis
•Assume ownership of
communications plan
•Develop and deliver all
communications beyond
Cognizant’s defined scope
•Provide input and approve of
updated Change Champion
Network Plan
•Identify Change Champions
•Design, manage, and
implement Change Champion
Network activities beyond
Cognizant’s defined scope
•Provide input and approval of
Change Impact Readout
•Execute sustainment activities
Training •Provide two hundred (200)
hours of training support, to be
divided between:
oLeading the development
of prioritized training
materials, as defined in the
Training Needs
Assessment and
Curriculum Plan
oDelivering end-user
training, as defined in the
Training Needs
Assessment and
Curriculum Plan,
throughout the remainder
of the project
•Own the development,
conversion, and maintenance of
In-System Guidance (Help Text,
Guided Tours, etc.)
•Own the development of
training materials beyond the
defined Cognizant effort
allowance
•Own the delivery of training
activities beyond the defined
Cognizant effort allowance
•Own training logistics, including
but not limited to: registering
participants, tracking training
attendance and completion,
scheduling, etc.

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9 Cognizant Services Client Responsibilities
•Recommend training evaluation
methods
•Recommend additional
reinforcement activities to
increase adoption
•Evaluate training effectiveness
•Coordinate training
reinforcement activities, as
needed
•Measure and report on end-
user adoption
Appendix A – Timeline Extension
Function Amount
WD HCM Core Lead $36,300
WD HCM Consultant $17,820
WD Absence Management Lead $27,225
WD Absence Management Consultant $17,820
WD Time Tracking Lead $27,225
WD Time Tracking Consultant $17,820
WD Benefits Lead $21,725
WD Talent Management Lead $16,225
WD Learning Lead $16,225
WD Payroll Lead $27,225
WD Payroll SR. Principal Consultant $27,225
WD Change Management Lead $10,620
WD Reporting Lead $11,000
WD Data Conversion Lead $11,000
WD Integrations Lead $16,225
WD Integrations Principal $16,225
WD Engagement Manager $52,800
$370,705

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Confidential
Change Order (Delivery Assurance)
©2023 Workday, Inc. v23.4 Page 1 of 2
CHANGE ORDER # 443997
TO MASTER SUBSCRIPTION AGREEMENT (“MSA”)
(DELIVERY ASSURANCE – CHANGES FOR ACTIVE PROJECT ONLY)
Customer Name City of San Mateo
Workday Entity Name Workday, Inc. 6110 Stoneridge Mall Rd., Pleasanton, CA 94588 MSA Effective Date February 23, 2022
Change Order Effective Date The later of the dates beneath the parties’ signatures below Original Order Form # ORDER FORM #319918
Currency USD
Total Additional Consulting Fees $24,600.00
This Change Order is supplemental to and is governed by the terms and conditions stated in the Original Order Form referenced above.

The Order Term of the Original Order Form is hereby extended and will end on December 22, 2024.

Fees and Payment. Customer will be invoiced for the Total Additional Consulting Fees upon the Change Order Effective Date with fees payable in accordance with the terms of the MSA. All remittance advice and invoice inquiries may be directed to [email protected]. Any travel and other expenses associated with the Professional Services set forth in this Change Order are subject to the terms of the Original Order Form or the MSA to which the Original Order Form is subject, as the case may be.

Customer Contact Information Billing, In Care of
Contact Name Peter Owen
Street Address
City/Town, State/Region/Province, Zip/Postal Code
Country
330 W 20th Ave
San Mateo, California 94403
United States
Phone/Fax # 650-522-7000
Email (required) [email protected]
This Change Order is only valid and binding on the parties when executed by both parties and is subject to the additional terms in the MSA and Addendum A to the Original Order Form referenced above.

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Confidential
Change Order (Delivery Assurance)
©2023 Workday, Inc. v23.4 Page 2 of 2

THE VALIDITY OF THIS CHANGE ORDER IS CONDITIONED ON WORKDAY RECEIVING A FULLY SIGNED COPY OF THIS CHANGE ORDER NO LATER THAN NOON PACIFIC TIME ON April 15, 2024 (“DEADLINE”).

Notwithstanding the foregoing, Workday reserves the right to accept the Change Order signed after the Deadline in Workday’s sole discretion and will provide confirmation of its acceptance by adding its initials on the Change Order after the Deadline if it deems fit.

IN WITNESS WHEREOF, this Change Order is entered into and becomes a binding part of the above-referenced MSA as of the Change Order Effective Date, defined above.

City of San Mateo Workday, Inc.

Signature Signature
Name Name
Title Title
Date Signed Date Signed

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CITY OF SAN MATEO
4 7
7 7

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: 10-1311 File ID: 24-8604 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: April 15, 2024
SUBJECT:

City Council Priority List – Adoption
RECOMMENDATION:

Adopt the City Council Priority List for fiscal year 2024-25.

BACKGROUND:

The City Council's goal-setting process comprises a three-step deliberation procedure culminating in the adoption of a Priority List, facilitating comprehensive resource planning over multiple years. The first step of the process was a City Council workshop, held on February 3, 2024. At this workshop, the City Council reviewed the adopted fiscal year 2023-24 Priority List, removed operationalized and completed items, and proposed new priorities to add to the Priority List for fiscal year 2024-25.

The second step of the process was held during a City Council meeting on March 18, 2024. At this meeting, the City Council reviewed the proposed work plan for each objective and the estimated resource requirements to needed to achieve the proposed work plan objectives and received public comment on the draft Priority List. Some revisions were made to the Draft Priority List during the meeting, which included:
•Updated the proposed work plan on two items, #26 and #27, to accurately reflect the original intention of the City Councilmember who proposed the items. These items are highlighted in yellow on Attachment 1.

Priority Updated Work Plan based on Council Direction
#26: Improve and strengthen democratic
systems and decrease polarization.

Conduct a variety of educational outreach to current and future voters by, including registration events, utilizing mailers, and collaborating with service organizations. Staff will continue to conduct post-election review and will add additional metrics and analysis as an enhancement to this review.
#27: Work with schools, community colleges,
businesses, and other organizations to expand
youth and senior workforce development &
civic leadership opportunities.

Attract and retain youth/young adult interns by partnering with organizations, such as Empowerment Through Action and local businesses, and centralizing internships. Improve our volunteer program to attract and retain volunteers, especially seniors.
•Modified the priority language on 3 items, #24, #28, and #37, to refine the priorities based on the progress staff has made over the years and to accurately capture Councilmembers’ goals. These items are highlighted in green on Attachment 1.

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CITY OF SAN MATEO
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7 7
Draft Priority from Blue Sky Modified Verbiage based on Council Direction #18: Update the General Plan. Implement the adopted General Plan. #24: Enable more quick-build bicycle/micro
mobility/pedestrian projects by identifying
reliable City funding and installation via
Public Works staff and/or a trusted on-call
contractor.

Prioritize planning, design, construction and maintenance of rapid safety improvement projects citywide and ensure there is a reliable City fund for long term success.
#27: Fund and deliver the Clean Water
Program.

Deliver the Clean Water Program.
#37: Complete all High and Medium-High
priority projects in the 2020 Bicycle Master
Plan and the Pedestrian Master Plan.

Complete all High and Medium-High priority projects in the 2020 Bicycle Master Plan and the Pedestrian Master Plan with the goal of prioritizing quick-build projects where feasible.

The fiscal year 2024-25 Priority List, included as Attachment 1, is now before the City Council for adoption. Staff will return to the City Council in the fall for a progress report of the Priority List that will include updates on the status of each objective.

BUDGET IMPACT:

There is no budget impact from this agenda item. A majority of the resource requirements for the adopted Priority List are incorporated into the fiscal year 2024-25 budget proposal and the remainder will be brought back as needed, as the projects evolve following further analysis and Council direction.

ENVIRONMENTAL DETERMINATION:

This City Council Priority List 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 - City Council Priority List FY 2024-2025

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

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Proposed Fiscal Year 2024-25 City Council Priorities
# Department Lead(s) Council Priority
Resource
Requirement
intensity
Work Plan FY 24-25 Additional resources required above current budget Approved Modifications 1 City Manager's Office Establish policies to decarbonize existing buildings and infrastructure and eliminate methane gas use by 2030. Medium Conduct community outreach and provide education; present findings to Sustainability and Infrastructure Commission for recommendations to City Council; return to City Council with narrowed down policy options and related resource needs and receive final Council direction on policy formation.

Consultant and staff support for community
outreach/education and policy exploration is already
budgeted. Additional resources may be required
depending on final policy direction from City Council.
2 City Manager's Office Create a comprehensive, ongoing Citywide Community Outreach and Engagement Program. High
Onboard and train new communications team and retain professional communications consultants to reestablish regular eNews, implement biannual print newsletters, bolster social media campaigns, improve high interest webpages, work with staff Citywide to enhance public engagement, establish a townhall program, and develop civic engagement forums. Enhance customer service and community outreach training and education opportunities for staff citywide.
$150K is spread throughout parts of the CMO budget for
professional services and hosting specials events; a
significant amount of staff resources would be dedicated to this priority throughout the City.
3 Public Works
Create a Capital Infrastructure Plan or process for reinvesting in infrastructure to allow the City to evaluate City facilities and assets when upgrades are needed.

High
Budget for and engage a consultant to complete a Capital Improvement Program organizational assessment to optimize the process for identifying all City infrastructure improvements, evaluate the process of prioritizing improvements, and assess the scheduling and budgeting methodologies. In addition, procure a consultant to complete a comprehensive facilities assessment to identify required improvements.

Budget required for CIP organizational assessment and
facilities infrastructure study, which is included in the Operating Budget requests.
4 City Manager's
Office/Community
Development
Provide greater support to business development centers or mixed use development areas to increase economic vitality.

Medium
Hire an economic consultant to provide peer reviews of proposed new development with ground floor commercial space; develop a list of best practices for ground floor commercial marketability that can be shared with developers and incorporated into future planning documents, including the Downtown Area Plan Update; continue to monitor commercial vacancies Citywide and engage with building owners as needed to understand vacancy and support getting space re-occupied.

Would need to publish a request for proposals for
consultant work and dedicate staff time to administer
program and work with developers and prospective
business owners.
5 Public Works Expedite efforts to improve the stormwater collection, drainage, and storage system, including dredging the Marina lagoon.

High
Continue Stormwater Master Plan Update and complete critical components of data collection. Complete Marina Lagoon Maintenance Dredging design and initiate construction in Summer 2025.
$1M is requested in upcoming budget from the new
Stormwater Fund to complete the Stormwater Master
Plan Update. No additional resources anticipated for
Maintenance Dredging beyond what Council previously
appropriated.
6 City Attorney's Office Explore adopting a Gardening Waste ordinance. Low Conduct legal research and survey other local jurisdictions. No additional resources required. 7 City Manager's Office
Explore a resolution affirming the City's commitment to integrate new technologies, such as artificial intelligence(AI), without displacing work force.

Low Research County of San Mateo resolution. No additional resources required. 8 City Clerk's Office & Parks
and Recreation
Increase organizational capacity to support the Toyonaka Sister City Program within the Parks & Recreation Department and City Clerk Department.

Medium Develop a sister city policy or resolution to define City staff and non-profit roles and scope (look at Redwood City).

No additional resources required to develop a policy.

Depending on the nature of the policy, additional
resources may be required to facilitate.
9 Public Works
Conduct an Annual Transportation Review of progress on all ongoing plans, including project updates and key metrics such as City mode share, collision and safety data.

Low Staff will gather key metrics and present an annual transportation review to City Council. No additional resources required.

Items to be Completed within the Fiscal Year
yellow - updated work plan
green - priority modification 1

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Proposed Fiscal Year 2024-25 City Council Priorities
# Department Lead(s) Council Priority
Resource
Requirement
intensity
Work Plan FY 24-25 Additional resources required above current budget Approved Modifications 10 City Manager's Office Consider the adoption of wage theft protections High Partner and work with the County's Office of Labor Relations. No additional resources required. 11 City Manager's Office Integrate master plans to increase efficiency and community impact Low Continuously cross reference all city planning documents to ensure consistency. No additional resources required. 12 Public Works and City
Manager's Office
Design and implement capital improvements for permanent street closure
Medium Complete construction of the B Street Pedestrian Mall Improvement Project by Fall 2024.

The estimated construction cost increase range is up to $675K depending upon Council direction at the April 1,
2024 study session.
13 Finance Initiate a Community Budget Process for anticipated revenue from Measure CC Medium Continue to monitor Measure CC revenue. Report the results through quarterly updates. No additional resources needed. 14 Public Works Remove North Shoreview from FEMA Flood Assessment High Continue coordination with FEMA on formal removal of flood zone designation by Summer 2024/Fall 2024.

Likely no additional resources required if FEMA accepts the latest information submittals. If additional data is again required to be submitted, $50,000 in additional
consultant support may be needed.
15 City Manager's Office Explore the establishment of Property-Based Improvement Districts Medium Bring a study session to council for discussion. No additional resources required. 16 City Manager's Office Explore the implementation of a Customer Response Management or 311 system High
Research methods by which the City currently receives service requests and back-end systems where requests are managed. Select a suitable CRM that will work with existing back-end systems.

CIP request of $100k. Yearly operational request of $25k for CRM subscription.
17 City Manager's Office and
Public Works Enhance city-wide disaster response and emergency preparedness High Continue working with Office of Emergency Services on updates to the City's Emergency Operations Plan including associated staff training and exercises, ongoing training for staff roles and responsibilities at the Emergency Operations Center, and training on the transition to new virtual EOC software (Veoci); bolster City staff resources with emergency preparedness expertise; update departmental emergency plans and COOP/COGs; purchase additional emergency rations/provisions and equipment; pursue flood control permitting and upgrades; procure grant professional writing assistance; evaluate City infrastructure for resilience and fitness during disaster/extreme events.

Approximately $475k ($95k emergency standby
generator, $200k staff, $75k grant writing consultant,
$100k rations/equipment/training supplies)
Items to be Completed within 2 to 5 Years
yellow - updated work plan
green - priority modification 2

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Proposed Fiscal Year 2024-25 City Council Priorities
# Department Lead(s) Council Priority
Resource
Requirement
intensity
Work Plan FY 24-25 Additional resources required above current budget Approved Modifications 18 Community Development Implement the adopted General Plan High Support adoption of a resolution to place a ballot measure amending Measure Y on the November 2024 election; initiate a comprehensive Zoning Code update to implement the General Plan, including community outreach and engagement, starting with an RFP for a consultant to support the effort, with a target to initiate the update effort in Q3.

Approx. $500k-$750k for consultant support will be
required for the comprehensive Zoning Code update and
community outreach and engagement, with funding
coming from the Long Range Planning Fund.

Modify priority to include amending
Measure Y and initiating Zoning
Code amendments to implement
General Plan 2040.
19 Community Development Implement Housing Element Policies High Begin implementation of all 2023-2031 Housing Element policies and programs with a 2024/2025 target date.

Approx $100k from Long Range Planning Fund will be
needed for housing consultants to support
implementation of the HE programs with 24/25
completion targets.
20 Library and Public Works Address structural issues at the Marina Library High Complete design process, including addition structural analysis, by December 2024 and begin construction work in late Spring 2025. Complete Construction by the end of FY 25/26.

Need to procure resources for branch improvements
beyond essential structural work.
21 Public Works Reconstruct all failed streets in San Mateo by 2026 High Complete construction of Phase 4 by Fall 2024 and award construction contract for Phase 5 Spring 2025. Phase 5 is the final phase of the Smooth Streets Program. No additional resources required. 22 Public Works
Replace all remaining high voltage circuits to improve safety and reliability of the street light system High Complete construction of Phase 3. Complete Design for Phase 4 (Final Phase). Construction for Phase 4 is expected to begin in FY 25-26. No additional resources required. 23 City Manager's Office Implement a robust, year-round Downtown Activation Program as part of our core City services. High Organize a committee to focus on the vibrancy of Downtown.

Significant staff time diverted from other priority tasks, potential financial resources depending on Program
objectives
24 Public Works
Prioritize planning, design, construction and maintenance of rapid safety improvement projects citywide and ensure there is a reliable City fund for long term success.

High
Consolidate safety projects identified in existing and future plans into a prioritized list.

Develop an implementation strategy that includes staff resources and funding for each phase (planning, design, construction and maintenance).

Continue to progress in safety projects in design
- Delaware Safe Routes to School Protected Bike Lane
- Hillsdale GAP Closure
- 3rd and Norfolk Safety Improvement Project
[COST BELOW ASSUME A 5 YEAR DELIVERY WINDOW
AND COST ARE A TOTAL OF 5 YEARS]
I. Consultant to create a consolidated and prioritized list. ~$72,000
II. Designers to develop rapid build plans for
construction. ~$150,000
III. Construction management team to manage the
construction of the rapid safety projects. ~$200,000
IV. Maintenance options to maintain these rapid safety
improvements. ~$230,000
V. Immediate implementation of curb markings to
improve safety in key locations. ~$50,000 for internal
staff to start installation.

Priority verbiage was modified
during the March 18, 2024 City
Council meeting.
25 City Manager's
Office/Community
Development
Explore piloting a City Grant Fund. Medium Identify funding source and amount (50k), staff resources, structure, and process. $50K plus staff resources 26 City Clerk's Office & City
Attorney's Office
Improve and strengthen democratic systems and decrease
polarization.

Medium
Conduct a variety of educational outreach to current and future voters by, including registration events, utilizing mailers, and collaborating with service organizations. Staff will continue to conduct post-election review and will add additional metrics and analysis as an enhancement to this review.

Post-election review of campaign ordinance does not
require additional resources. Additional resources may
be required to broaden outreach depending on the
objective.
27 City Manager's Office and
Human Resources
Work with schools, community colleges, businesses, and other organizations to expand youth and senior workforce development & civic leadership opportunities.

Medium
Attract and retain youth/young adult interns by partnering with organizations, such as Empowerment Through Action and local businesses, and centralizing internships. Improve our volunteer program to attract and retain volunteers, especially seniors.

Outreach for both programs can be absorbed in existing
budget.
28 Public Works Deliver the Clean Water Program. High Complete all identified construction projects by the end of FY 25/26. No additional resources required. Deleted the reference of "Fund" as all funding is in place.
yellow - updated work plan
green - priority modification 3

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Proposed Fiscal Year 2024-25 City Council Priorities
# Department Lead(s) Council Priority
Resource
Requirement
intensity
Work Plan FY 24-25 Additional resources required above current budget Approved Modifications 29 Library Implement Library Space Master Plan High Complete rest of space enhance projects: Cafe, Lobby, Teen Area, Business Library, Jobseekers Space, Biotech Learning Center, Periodical Storage Space No existing funding for project. Meet w/ EHDD
(architects of Main Library) to reevaluate plans since
original plans are now 7 years old. Est. cost of new
consultation process is approximately $100k
30 Parks & Recreation Implement the Central Park Master Plan High Staff will complete phase 1 of the Central Park Playground Improvements, which consist of directing the project manager to solicit bids and manage the construction process.

Through the CIP process, additional resources will be
requested and identified to fulfill this item.
31 Public Works Expedite efforts to improve the stormwater collection, drainage, and storage system, including dredging the Marina lagoon High
Adopt a prioritized, long-term 5-Year Capital Improvement Plan based on Stormwater Master Plan Update. Initiate and complete environmental approval process for dredging of the Marina Lagoon. Begin implementation of other highly prioritized stormwater capital improvement projects as funding and resources allow.

Anticipate $2M for full design, permitting, and
environmental review for full-scale Marina Lagoon
Dredging project (federal earmark requested, with $500k proposed from the Stormwater Fund as local match).

Staff is still pursuing other near-term implementation
projects for small-scale drainage improvements and
camera/sensor installation with previously appropriated funding from Council.
32 Public Works Implement a Green Fleet by 2030 High
Complete design and initiate construction of City Hall/City Plaza EV charging infrastructure improvements by end of calendar year 2025. Seek additional grant funding and plan for Corp Yard/PD EV charging infrastructure improvements.

Significant additional funds will be needed to fully
implement. Some grant funding may be available for
electric vehicles and charging infrastructure.
33 Public Works
Expedite efforts to provide high quality effluent from the wastewater treatment plant upgrades to support the future production of potable water.

High
Continue participating in the Peninsula Pure Water (formerly San Francisco Peninsula Regional Purification) project to pursue a wastewater purification facility at the Silicon Valley Clean Water facility in Redwood Shores.

No additional resources needed for staff participation in the longer-term effort.
34 Public Works Minimize impacts to residents from train horn noise at City at- grade crossings High
Complete construction of all rail safety measures required for Train Horn Noise Quiet Zone (Quiet Zone) qualification by end of calendar year 2024. Staff to work with FRA and required stakeholders (e.g. CPUC, Caltrain, and Union Pacific) to complete administrative steps to establish Quiet Zone by end of calendar year 2025.

No additional resources required.
35 Public Works
Study resource feasibility for the downtown grade separations and long-term train corridor improvements High Identify resource needs for staffing, grant writer, and design consultant to implement the feasibility study.

Funds needed for a Consultant Grant Writer and
Consultant Designer.
36 Public Works Improve traffic flow on 19th Ave and Fashion Island Boulevard from Grant to Mariners Island Boulevard
High
Continue the design for 463338 Norfolk/Fashion Island intersection improvements. Continue design for the 19th Avenue Smart Corridor Project. Finalize negotiations to combine both projects on 19th Avenue and Fashion Island to help expedite delivery and coordination of both projects.

No additional resources required.
37 Public Works
Complete all High and Medium-High priority projects in the 2020 Bicycle Master Plan and the Pedestrian Master Plan with the goal of prioritizing quick-build projects where feasible.

High
Program all existing 2020 BMP projects into the Bike San Mateo Program in order to expedite the design and delivery of all High and Med-High bicycle projects. This will include quick-build bicycle projects. Identify all incomplete PMP projects and develop a workplan for expedited completion. Complete design for the Delaware SRTS Protected Bike Lane Project, Hillsdale Gap Closure project and the 3rd and Norfolk Island Intersection Safety Improvement project. Continue to the design for the 19th Avenue and Fashion Island Class IV bike lane projects.

Need Design Staff
Need Implementation Staff
Need funding above and beyond what is in the CIP
Partial priority verbiage was
modified during the March 18, 2024
City Council meeting.

Items to be completed in 5 or more years
yellow - updated work plan
green - priority modification 4

106 of 302

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: 10-4662 File ID: 24-8620 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: April 15, 2024
SUBJECT:

B Street Pedestrian Mall Improvements Project – Bid Rejection RECOMMENDATION:

Adopt a Resolution to reject all bids received for the B Street Pedestrian Mall Improvements Project; and authorize the Public Works Department to initiate a second Notice Inviting Bids.

BACKGROUND:

On May 17, 2021, City Council directed staff to establish a year-round Pedestrian Mall on the segment of B Street from 1st to 3rd Avenues (Pedestrian Mall). On October 4, 2021, Council adopted the Pedestrian Malls Ordinance, found in San Mateo Municipal Code (SMMC) Chapter 11.29. Thereafter, staff began work on the design phase of the Pedestrian Mall Improvement Project (Project), which includes enhancements such as street furnishings, planters, safety barriers (bollards) at the street ends, ADA access improvements, and bike racks.

The City entered into an agreement with Community Design + Architecture in January 2022 to design the above-described improvements to the Pedestrian Mall. By March 2024, Community Design + Architecture completed the design. The Project’s construction documents were prepared so that the bollards to be installed between 2nd and 3rd Avenues were included as part of the base bid (main contract). Meanwhile, the bollards to be installed between 1st and 2nd Avenues were included as “add alternate” bid items, meaning the City could choose to include the “add alternate” bid items at the time of contract award. The Engineer’s Estimate for the base bid was $980,000, and if the add alternative items were included, the total Engineer’s Estimate would be $1,347,000.

In accordance with Municipal Code section 3.60.030, a competitive public process was used to obtain bids for the Project.

A Notice Inviting Sealed Proposals was issued to advertise the Project on March 7, 2024. On the March 28, 2024 bid opening date, four bids were received:

Bidder Rank Contractor Base Bid Add. Alt. Bid Total Bid 1 BuildCorp Inc. $935,000 $144,000 $1,079,000
2 VNH Builders $980,700 $205,000 $1,185,700
3 Golden Bay Construction $1,326,834 $463,830 $1,790,664 4 Tennyson Electric $1,639,290 $712,150 $2,351,440

On April 1, 2024, staff presented an update on the Pedestrian Mall to City Council and requested direction on supporting a pilot program for the pedestrian mall between 1st and 2nd Avenues and on whether to install bollards or planter barriers on each block. City Council directed staff to move forward with planter barriers on both blocks of the pedestrian mall and not to install bollards at this time. Therefore, the Project as currently prepared cannot move forward as it includes bollards

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CITY OF SAN MATEO
between 2nd and 3rd Avenues as part of the main contract. Staff recommends rejecting all bids pursuant to SMMC section

3.60.040(a)(4) and readvertise the Project without the bollard scope.

Staff intends to start the re-advertisement of the revised Project by the end of this April. Staff will bring a future construction agreement award recommendation to City Council prior to the construction occurring in late summer/fall 2024. Staff will install the planter barriers through a separate procurement effort outside of the Project scope to facilitate their installation as soon as possible.

BUDGET IMPACT:

There is no budget impact for the rejection of bids.

ENVIRONMENTAL DETERMINATION:

This project is categorically exempt from CEQA as a project that has been disapproved. (CEQA Guidelines Section 15270.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution

STAFF CONTACT
Stephanie Piñon, Senior Engineer
[email protected]
650-522-7315

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1 0
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7 CITY OF SAN MATEO
RESOLUTION NO. ____ (2024)

REJECTING ALL BIDS FOR THE B STREET PEDESTRIAN MALL IMPROVEMENTS PROJECT WHEREAS, on October 4, 2021, the City Council adopted the Pedestrian Malls Ordinance, codified in San Mateo Municipal Code (SMMC) Chapter 11.29; and WHEREAS, the Pedestrian Mall Improvement Project (Project) was developed to include enhancements to street furnishings, planters, safety barriers (bollards) at the street ends, ADA access improvements, and bike racks along B Street between 1st and 3rd Avenue in the City; and WHEREAS, in 2022, work began on the design phase of the Project; and WHEREAS, the City advertised the Project on March 7, 2024, in accordance with SMMC Section

3.60.040; and
WHEREAS, on the March 28, 2024 bid opening date, four bids were received; and WHEREAS, on April 1, 2024, staff presented an update on the Project to City Council and requested direction whether to install bollards or planter barriers on each block; and WHEREAS, Council directed staff to move forward with planter barriers on both blocks of the pedestrian mall and not to install bollards at this time; and WHEREAS, the Project as currently prepared cannot move forward as it includes bollards between 2nd and 3rd Avenues as part of the main contract instead planter barriers; and WHEREAS, pursuant to San Mateo Municipal Code section 3.60.040(a)(4), the City Council, in its discretion, may reject all bids received.

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

1. This Council action is categorically exempt from CEQA as a project that has been disapproved. (CEQA Guidelines Section 15270.)

2. In accordance with San Mateo Municipal Code Section 3.60.040(a)(4), all bids for the B Street Pedestrian Mall Improvements Project are hereby rejected.

3. City staff is authorized to readvertise the Project for bidding.

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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: 11 Section Name: PUBLIC HEARING Account Number: 10-2021 File ID: 24-8580 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: April 15, 2024
SUBJECT:

Fiscal Year 2024-25 Comprehensive Fee Schedule – Approval RECOMMENDATION:

Adopt a Resolution to approve the revisions to the proposed fiscal year 2024-25 Comprehensive Fee Schedule.

BACKGROUND:

Section 3.64.010 of the San Mateo Municipal Code requires the City Manager to submit the City’s fee schedule to the City Council for approval prior to submittal of the annual budget. It is the City's policy and practice to increase fees annually by Consumer Price Index (CPI) for the San Francisco Bay Area. The proposed increases reflect the City's increase in materials and maintenance costs incurred in providing services. The City uses the CPI from the previous October, which is the most recent data available at the beginning of the review process (CPI for 2024-25 is 2.8% from November 2022 to October 2023). Certain fees are adjusted using other formulas including the San Francisco, CA Construction Cost Index (CCI) which was 0.7% this year. Other adjustments to fees are made periodically as deemed necessary to reflect actual staff costs, market alignments, or to comply with policy. The proposed fee adjustments are based on the annual CPI increase, a periodic adjustment, or are the result of a fee study and detailed analyses of the cost for providing specific programs/activities.

The Wastewater Capacity Charge is a fee based on the cost of construction, therefore annual adjustments should be made in accordance with the CCI. In FY21-22 to FY23-24, the Wastewater Capacity Charge fee was inadvertently adjusted annually according to the CPI resulting in a lower increase. In the proposed FY24-25 fee schedule, the proposed Wastewater Capacity Charge fee resolves the errors and includes the current CCI increases for FY24-25.

Recreation fees and park in-lieu fees were reviewed by the Parks and Recreation Commission at its February 13, 2024 meeting. Library fees were reviewed by the Library Board at its February 26, 2024 meeting. All fees will become effective July 1, 2024, except where otherwise noted. Sewer service charges are set separately by ordinance and are not part of this fee revision process. Tables summarizing the new fees and various fee changes including those in excess of CPI are provided in Attachment 3.

Public Works currently collects a deposit for plan review and inspection services for large multi-family, commercial, and mixed-used building permits (new or redevelopment projects with associated Planning Applications). This current practice results in excessive administrative and overhead costs to keep the deposit account current. With larger building permits taking 2 – 5 years to complete it also presents challenges with auditors as deposits have a high volume of transactions and have proven to be difficult to track.

The new proposed Public Works Building Permit Support fee of 25% of the building permit fee will remove the deposit-

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CITY OF SAN MATEO
based practice to establish a more streamlined approach. The flat fee will also provide better transparency to developers planning to develop in San Mateo as this fee can be calculated and accounted for upfront. The 2024 Public Works Fee Study recommended a building support fee of around 30% – 32%. Public Works is proposing 25% as a conservative number to make sure over-collection does not occur.

BUDGET IMPACT:

The changes to the fee schedule should result in some additional revenue in the new fiscal year. However, the actual amounts are difficult to calculate because the use of some services is voluntary, and the volume of activity varies.

ENVIRONMENTAL DETERMINATION:

This Comprehensive Fee Schedule update for fiscal year 2024-25 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. In accordance with Government Code sections 66018 and 6062a, notice of the fee increases was published twice, beginning 10 days in advance of the public hearing. Prior to the meeting, City staff made the data available for the public, indicating the amount of cost, or estimated cost, required to provide the service for which the fee or service charge is levied, and the receiving fund of the fee revenue.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - Proposed Comprehensive Fee Schedule FY 2024-2025 Att 3 - Tables Summarizing Changes

STAFF CONTACT
Karley Toffey, Senior Management Analyst
[email protected]
(650) 522-7106
Karen Huang, Finance Director
[email protected]
(650) 522-7110

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CITY OF SAN MATEO
RESOLUTION NO. ___ (2024)
ESTABLISHING A COMPREHENSIVE FEE SCHEDULE FOR FISCAL YEAR 2024-2025 WHEREAS, the City reviews its Comprehensive Fee Schedule on an annual basis; and WHEREAS, it is the City’s policy and practice to establish service fees sufficient to recover its costs, including inflation, based on increases to the Consumer Price Index, the Construction Cost Index, and to eliminate or reduce fees that are obsolete, no longer applicable to services provided, or succeeded by state or county agencies; and
WHEREAS, the increase to the Consumer Price Index (CPI) from November 2022 to October 2023 is

2.8%, and the increase to the Construction Cost Index is 0.7% from March 2023 to February 2024, which will be reflected in the fiscal year 2024-2025 budget; and
WHEREAS, fee increases in excess of the 2.8% CPI factor are appropriate, when based on increases in the City’s actual costs or market analyses, as follows:
•Police Outside Detail Rates
•Temporary No Parking Signs
•Utility Permits
•Encroachment Permits
•Grading Permits
•Mapping and Agreements Fees
•Curb Painting
•Wireless Permits
WHEREAS, an exception to reliance on the Consumer Price Index is the Wastewater Capacity Charge, which is a fee based on the cost of construction, and annual adjustments are therefore made in accordance with the San Francisco, CA Construction Cost Index; and
WHEREAS, in accordance with Government Code section 66016, the Council held a public hearing to consider these fee increases on April 15, 2024; and
WHEREAS, in accordance with Government Code section 66019, at least ten days prior to the public hearing, the City made data available to the public supporting the need for fee increases.

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

1. The approval of a Comprehensive Fee Schedule 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 impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

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1 0
0 5
2 2. The fees included in the Comprehensive Fee Schedule are approved.

3. All fees shall become effective July 1, 2024, except where otherwise noted.

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Proposed
Comprehensive Fee Schedule
July 1, 2024 - June 30, 2025

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CITY OF SAN MATEO

COMPREHENSIVE FEE SCHEDULE
Table of Contents
Parks & Recreation…………………………………………………………….........…8.1
Police……………………………………………………………………….…….....…9.1
Library……………………………………………………………………………........7.1
City Clerk's………………………………………………………………………….....1.1
Community Development
Building…………………...…………..……..…...………………..…....2.1
Code Enforcement………………………………………...………….....3.1
Planning………………...…………..………..…...……………...….…..4.1
Finance…………………………………………...………………………...……....….5.1
Information Technology………………………………………………………….....…6.1
Effective July 1, 2020, customers using credit/debit cards to pay for services will be charged a service fee payable to the City's merchant service provider at the rate of 2.6%+ in addition to the cost of services. The credit card service fee will be reflected as a separate transaction on your credit card statement. As an alternative, checks and money orders are acceptable by mail or cash, check, e-check and money orders in person at City facilities.

Public Works…………………………………………………………………............10.1
Penalties & Interest……………………………………………………………...…....11.1 Impact, In-lieu, and Linkage Fees…………………………………………....…...…..12.1

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UNIT FEE
I. ELECTION DOCUMENT COPIES Per Page $0.10
II. PHOTOCOPIES Per Page $0.15
III. OUTSIDE SERVICES
Reproductions not performed by City (maps, photos, etc.). Per Reproduction Actual Costs IV. CERTIFICATIONS Each $1.50
V. APPEALS to the City Council of a decision by the Planning Commission, Community Relations Commission, or Public
Works Commission.

Each Appeal $565.00
VI. INITIATIVE FILING FEE Each $200.00

CITY CLERK

DESCRIPTION OF SERVICES

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UNIT FEE
I.

A. % of Building Permit Fee 70%
B. % of Buildin g Permit Fee 75%
C. % of Building Permit Fee 65%
II.

Valuation $288.95
Valuation $288.95
(for 1st $500) $12.84 for each add'l $100 or fraction
thereof
Valuation $500.86
(for 1st $2,000) $22.33 for each add'l $1,000 or
fraction thereof
Valuation $1,065.98
(for 1st $25,000) $28.48 for each add'l $1,000 or
fraction thereof
Valuation $1,849.38
(for 1st $50,000) $21.94 for each add'l $1,000 or
fraction thereof
Valuation $3,056.64
(for 1st $100,000) $14.16 for each add'l $1,000 or
fraction thereof
Valuation $5,394.10
(for 1st $250,000) $7.75 for each add'l $1,000 or
fraction thereof
Valuation $7,526.03
(for 1st $500,000) $6.96 for each add'l $1,000 or
fraction thereof
Valuation $11,353.31
(for 1st $1,000,000) $3.48 for each add'l $1,000 or
fraction thereof
$500,001 to $1,000,000
$250,001.00 - $500,000
$1,000,001 and Over

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES

BUILDING PLAN REVIEW FEES
$1.00 - $500.00
$2,001.00 - $25,000.00
$50,001.00 - $100,000.00
$100,001.00 - $250,000.00

BUILDING PERMIT AND INSPECTION FEES
$25,001.00 - $50,000.00

SINGLE FAMILY/DUPLEX RESIDENTIAL PLAN
REVIEW

COMMERCIAL BUILDING PLAN REVIEW

MULTI-FAMILY RESIDENTIAL BUILDING PLAN
REVIEW

SINGLE FAMILY/DUPLEX RESIDENTIAL PERMIT

AND INSPECTION
$501.00 - $2,000.00

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UNIT FEE

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES
II.

Valuation $288.95
Valuation $288.95
(for 1st $500) $12.84 for each add'l $100 or fraction
thereof
Valuation $500.86
(for 1st $2,000) $30.96 for each add'l $1,000 or
fraction thereof
Valuation $1,284.27
(for 1st $25,000) $25.68 for each add'l $1,000 or
fraction thereof
Valuation $1,990.66
(for 1st $50,000) $29.65 for each add'l $1,000 or
fraction thereof
Valuation $3,621.74
(for 1st $100,000) $8.87 for each add'l $1,000 or
fraction thereof
Valuation $7,526.03
(for 1st $500,000) $10.55 for each add'l $1,000 or
fraction thereof
Valuation $13,331.17
(for 1st $1,00,000) $1.64 for each add'l $1,000 or
fraction thereof
Valuation $20,549.09
(for 1st $5,000,000) $2.60 for each add'l $1,000 or
fraction thereof
Valuation $34,830.84
(for 1st $10,000,000) $1.39 for each add'l $1,000 or
fraction thereof
Valuation $57,743.26
(for 1st $25,000,000) $1.04 for each add'l $1,000 or
fraction thereof
Valuation $86,306.76
(for 1st $50,000,000) $1.04 for each add'l $1,000 or
fraction thereof
Valuation $114,870.26
(for 1st $75,000,000) $0.52 for each add'l $1,000 or
fraction thereof
$50,000.01 - $100,000.00
$100,000.01 - $500,000.00
$500,000.01 - $1,000,000.00
$1,000,000.01 - $5,000,000.00
$5,000,000.01 - $10,000,000.00

COMMERCIAL BUILDING PERMIT AND INSPECTION
$501.00 - $2,000.00
$2,001.00 - $25,000.00
$1.00 - $500.00
$25,000.01 - $50,000.00
BUILDING PERMIT AND INSPECTION FEES (continued)
$10,000,000.01 - $25,000,000.00
$25,000,000.01 - $50,000,000.00
$50,000,000.01 - $75,000,000.00
$75,000,000.01 and Ove
r

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UNIT FEE

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES
II.

Valuation $288.95
Valuation $288.95
(for 1st $500) $12.84 for each add'l $100 or fraction
thereof
Valuation $500.86
(for 1st $2,000) $30.96 for each add'l $1,000 or
fraction thereof
Valuation $1,284.27
(for 1st $25,000) $25.68 for each add'l $1,000 or
fraction thereof
Valuation $1,990.66
(for 1st $50,000) $29.65 for each add'l $1,000 or
fraction thereof
Valuation $3,621.74
(for 1st $100,000) $8.87 for each add'l $1,000 or
fraction thereof
Valuation $7,526.03
(for 1st $500,000) $10.55 for each add'l $1,000 or
fraction thereof
Valuation $13,331.17
(for 1st $1,00,000) $3.57 for each add'l $1,000 or
fraction thereof
Valuation $29,025.69
(for 1st $5,000,000) $5.16 for each add'l $1,000 or
fraction thereof
Valuation $57,435.12
(for 1st $10,000,000) $1.73 for each add'l $1,000 or
fraction thereof
Valuation $85,998.63
(for 1st $25,000,000) $1.55 for each add'l $1,000 or
fraction thereof
Valuation $128,689.81
(for 1st $50,000,000) $1.04 for each add'l $1,000 or
fraction thereof
Valuation $157,253.30
(for 1st $75,000,000) $0.52 for each add'l $1,000 or
fraction thereof
NOTE: Valuation shall be determined based upon the International Code Council's most recently published Building Valuation Table with a regional cost modifier of 2.93. The project valuation will be inclusive of all trades - Building, Electrical, Mechanical, and Plumbing. The Building Official may adjust the plan checking/permit fee for an individual project when costs to the City are not congruent with this fee schedule.

BUILDING PERMIT AND INSPECTION FEES (continued)

MULTI-FAMILY RESIDENTIAL BUILDING PERMT

AND INSPECTION
$1.00 - $500.00
$501.00 - $2,000.00
$2,001.00 - $25,000.00
$25,000.01 - $50,000.00
$50,000.01 - $100,000.00
$100,000.01 - $500,000.00
$500,000.01 - $1,000,000.00
$1,000,000.01 - $5,000,000.00
$5,000,000.01 - $10,000,000.00
$10,000,000.01 - $25,000,000.00
$25,000,000.01 - $50,000,000.00
$50,000,000.01 - $75,000,000.00
$75,000,000.01 and Ove
r

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UNIT FEE

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES
III.

1. Commercial and Multi-Residential
0 -10,000 Square Feet Per Occurrence *See Note Below
10,001-35,000 Square Feet Per Occurrence *See Note Below 35,001-75,000 Square Feet Per Occurrence *See Note Below 75,001-120,000 Square Feet Per Occurrence *See Note Below Over 120,000 Square Feet Per Hour *See Note Below

2. Single Family and Duplex Plan Review
0-10,000 Square Feet Per Occurrence *See Note Below
B. Fee 10% of Building Permit Fee, with a minimum fee of $210
C.

1. Commercial % of Building Permit Fee 25%

2. Multifamily Residential % of Building Permit Fee 25%

3. Mixed-Use % of Building Permit Fee 25%
D. Hourly Rate Please refer to Buil ding, Fire and Planning Hourly Rate
E. Fee / Actual Cost Actual Cost for all City Departments for additional identical and mirror image plan checks where
applicable codes have not changed.

F.
a. Park and Recreation Tax on Residential Building
Permits
Per $100 Valuation on
Building Permit App.
$0.30
a. Consultants for specialized plan checking and
inspection services or to expedite plan checking and
inspection services
Fee is per Consultant's rate
b. Reimburse cost of staff or consultant time spent in
plan check or inspection services. Park Plan Check and Inspection Services on Building Permits. Fee to be
collected at time of Building Permit application. After payment of fees, Permittee may apply for an exemption
for projects having no Park Plan Check or Inspection
Requirements.

Building Valuation on Those
Building Permits Whose
Valuation is Over $5,000

0.05%
G. Construction Valuation of
All Projects

0.59% of valuation
H. Fee 13 mills/$1,000 valuation
Residential (Minimum $0.50)
28 mills/$1,000 valuation
Non-Residential. (Minimum $0.50)
I. Fee $1/$25,000 valuation
J. Percentage 0.15% of valuation
K All Required Permits Minimum of 100% of all building permit fees

ADDITIONAL REQUIRED PLAN REVIEW & BUILDING

PERMIT FEES

FIRE PLAN CHECK
*These fees are collected on behalf of the San Mateo Consolidated Fire Department. The current fee charged may be higher than those listed. Please see the San Mateo Consolidated Fire Department's fee schedule for current fees that will be collected by the City of San Mateo on behalf of San Mateo Consolidated Fire Department at: smcfire.org/i-want-to

PLANNING SUPPORT FEE (PLAN

CHECK/INSPECTION)
(Fee covers initial review and 2 resubmittals) The fee will be charged for all projects which require a planning application, for new single-family homes and duplexes, and for any other permit application that requires review by the Planning Division.

ADDITIONAL PLAN REVIEW FEES FOR PROJECTS
REVIEWED 4TH REVIEW AND BEYOND

PLAN CHECK FEES FOR IDENTICAL AND MIRROR

IMAGE PLANS

PARKS AND RECREATION FEES

1. Park and Landscape Resources

2. Development Project Review Fee

PUBLIC WORKS SUPPORT FEE
This fee will be charged for building permit reviews related to approved Planning Applications

GENERAL PLAN MAINTENANCE FEE

STATE TAX
Strong motion instrumentation and seismic hazard mapping (Fee set by State of California).

BUILDING STANDARDS ADMINISTRATION SPECIAL

REVOLVING FUND

TECHNOLOGY FEE

CONSTRUCTION WITHOUT A PERMIT
Penalty incurred when any construction is performed without a permit.

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UNIT FEE

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES
IV.

A. Per Hr (Min. 2 Hours) $282.78
B. Per Hr (Min. 1 Hour) $282.78
C. Per Hr
(Min. 1/2 Hour)
$294.87
D. Per Reactivation $176.04
E. Per Hour $244.27
F. Each $644.77
G. Each $907.73
H. $217.85
I. Per Permit $100.00*
J. Each $905.00
K.

1. Single Family Dwellings/Duplex's Flat Fee $539.14

2. Multi-Family, Mixed Use/Commercial
0-5,000 Sq Ft Flat Fee $539.14
Over 5,000 Sq Ft Flat Fee $962.75
L.

1. Bathroom or Kitchen Remodels - Pe r Remodel Each Combination Permit $719.58 M. Flat Fee $430.21
N. Flat Fee $642.56
O. Each $648.06
P.

Each $2,831.57
Each $2,031.12
Each $1,455.43
Q. Each $1,454.02
MISC. INSPECTIONS AND FEES
Applicable to building, plumbing, electrical and mechanical permits.

INSPECTIONS OUTSIDE OF NORMAL BUINESS
HOURS

REINSPECTION FEE

PLAN REVIEW REQUIRED BY CHANGES, ADDITIONS

OR REVISIONS TO APPROVED PLANS, OR MORE

THAN TWO RECHECKS
REACTIVIATION FEE FOR EXPIRED PERMITS (Use
50% of original permit fee if permit fee is less than the reactivation fee)

APPLICATION FOR DEMOLITION OF RESIDENTIAL

UNITS WHICH HAVE BEEN DECLARED A PUBLIC

NUISANCE OR WHICH ARE BEING DEMOLISHED ON

APPROVAL OF THE BUILDING OFFICIAL UNDER
SECTION 23.06.100.

APPLICATION FOR ALTERNATE MATERIALS AND

CODE INTERPRETATIONS

PERMITS FOR SMALL ANIMAL & FOWL

RE-ROOF'S

COMBINATION BUILDING, PLUMBING, ELECTRICAL,

AND MECHANICAL PERMITS FOR MINOR
RESIDENTIAL REMODELS:

HARDSHIP WAIVER FOR DISABLED ACCESS

REQUIREMENTS

WINDOW REPLACEMENTS FOR SINGLE FAMILY
AND DUPLEX (same location, same size, 5 maximum)

WINDOW REPLACEMENTS FOR SINGLE FAMILY
AND DUPLEX (same location, same size, more than 5)

PROTECTED TREE REMOVAL PERMIT
ADDRESS ASSIGNMENT FEE to be charged when
assignment is not required as a conditioin of construction; charge for non-essential address changes only
See Parks & rec section page 8 for other costs VII. PARK

AND LANDSCAPE RESOURCES

CALIFORNIA'S EARTHQUAKE BRACE AND BOLT

RETROFIT PROGRAM

ACCESSORY DWELLING UNITS

JUNIOR ACCESSORY DWELLING UNITS
Remodel
New Construction
Eligible Manufacture, Pre-Fab, or Pre-Approved

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UNIT FEE

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES
IV.

R. Flat Fee $450.00
S.

1. Single Family Dwellings Each Combination Permit $450.00

2. Multi-family Buildings
Up to 15 kW Each $450.00
16 kW and up Each $465.00
+ $15.00 for each additional kW

3. Commercial Buildings
Up to 50 kW Each $1,000.00
51 kW to 250 kW Each $1,007.00
+ $7.00 for each additional kW up to 250 kW
251 kW and up Each $2,405.00
+ $5.00 for each additional kW over 250 kW
T.

1. Single Family Dwellings Each Combination Permit $450.00

2. Multi-family Buildings
Up to 15 kWth Each $450.00
16 kWth and up Each $450.00
+ $15.00 for each additional kW

3. Commercial Buildings
Up to 30 kWth Each $1,000.00
31 kWth to 260 kWth Each $1,007.00
+ $7.00 for each additional kWth up to 260 kWth
261 kWth and up Each $2,615.00
+ $5.00 for each additional kWth over 260 kWth
U.

1. Single Family Dwellings & Duplexes Each $213.45

2. Multi-Family/Commercial (Level I/II)
1-6 Stations Flat Fee $600.76
7+ Stations Flat Fee $1,129.99
Multi-Family/Commercial (Level III)
1-6 Stations Each $981.45
7+ Stations Each $1
,464.47
V. Each $481.92
V. ELECTRICAL PERMIT FEES
A. RESIDENTIAL ELECTRICAL PERMIT FEE Each $289.37
B. COMMERCIAL ELECTRICAL PERMIT FEE Each $1,245.52
C. Sq Ft. $0.24
D. Each $924.24
MISC. INSPECTIONS AND FEES (continued)
Applicable to building, plumbing, electrical and mechanical permits.

SOLAR ENERGY SYSTEMS (Fee set by State of California
AB-1124; sunsets 1/1/2025
)
SOLAR THERMAL SYSTEMS (Fee set by State of
California AB-1124; sunsets 1/1/2025)

ELECTRICAL VEHICLE CHARGING STATIONS
NEW ENERGY STORAGE SYSTEMS ONLY (Fee set by
State of California AB-1124; sunsets 1/1/2025)

TEMPORARY CERTIFICATE OF OCCUPANCY
COMMERCIAL TENANT IMPROVEMENTS:

ELECTRICAL WORK ONLY

ELECTRICAL REWIRING FOR SFR AND DUPLEX

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UNIT FEE

COMMUNITY DEVELOPMENT

BUILDING DIVISION

DESCRIPTION OF SERVICES
VI. MECHANICAL PERMIT FEES
A. RESIDENTIAL MECHANICAL PERMIT FEE Each $289.37
B. COMMERCIAL MECHANICAL PERMIT FEE Each $962.75
C. Sq Ft. $0.24
D. Each $828.51
VII. PLUMBING PERMIT FEES
A. RESIDENTIAL PLUMBING PERMIT FEE Each $289.37
B. COMMERCIAL PLUMBING PERMIT FEE Each $962.75
C. Sq Ft. $0.24
D. TANKLESS WATER HEATER Each $507.23
E. Each $924.24
VIII. SIGN PERMIT FEES**
Permit fee determined by Commercial Valuation Table
Each $217.85
IX. CHILD CARE DEVELOPMENT FEE Per Sq. Ft.

Per Dwelling Unit $4,677.29
Per Dwelling Unit $3,373.46
B.

Per Sq. Ft. $0.39
Per Sq. Ft. $0.67
Per Sq. Ft. $0.22
Per Sq. Ft. $0.14
X.

A. Per Sq. Ft. $13.11
B. Per Sq. Ft. $6.55
C. Per Sq. Ft. $32.76
XI. Each 1.19% of valuation

HVAC INSTALLATIONS (RELOCATIONS AND NEW

INSTALLATIONS FOR SFR AND DUPLEX)
COMMERCIAL TENANT IMPROVEMENTS:

PLUMBING WORK ONLY
All permanent signs
Temporary Banner (30-day)
**PENALTY: When a sign permit is required and a sign is installed prior to obtaining a permit, a double fee shall be charged.

HOTELS
COMMERCIAL TENANT IMPROVEMENTS:

MECHANICAL WORK ONLY

RETAIL, RESTAURANTS, AND SERVICES

OFFICE, RESEARCH & DEVELOPMENT USES, AND

MEDICAL OFFICES

ART IN PUBLIC PLACE FEE
The fee is applicable to commercial and multi-family residential projects exceeding three (3) million dollars in total building valuation, excluding land acquisition and off-site improvement costs.

2. Multi-family

3. Industrial

4. Hotel

COMMERCIAL LINKAGE FEE
(City Council adopted September 16, 2016 - effective November 16, 2016)
New commercial construction in excess of 5,000
Exempts public uses such as hospitals, nonprofit and government facilities, churches, schools and child care centers. Developers who enter written agreements to pay area standard wages to all construction workers on the project are entitled to a 25% reduction of the fee. Additionally, developers may provide construction of affordable housing units in lieu of the fee t

REPIPE FOR WATER SUPPLY SYSTEMS FOR SFR

AND DUPLEX
Residential

1. Single-family

2. Office

1. Retail
Commercial

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UNIT
I.

1. First Citation $100.00
If not Abated, Second Citation $200.00
If not Abated, Third Citation $500.00
II. First Citation $200.00
If not Abated, Second Citation $300.00
If not Abated, Third Citation $500.00
III. Each Case Actual Cost *
IV. Each Appeal $565.00
V. Each Inspection $100.00ABATEMENT ORDER VIOLATION CORRECTION RE-INSPECTION FEE

COMMUNITY DEVELOPMENT

CODE ENFORCEMENT

DESCRIPTION OF SERVICES FEE

NUISANCE ABATEMENT FEES FOR VIOLATIONS OF THE SMMC

WHICH ARE SUBJECT TO ADMINISTRATIVE CITATION PER
SMMC 1.10.

Violations of the SMMC Administrative Citation Ordinance which have been abated within 10 days of service and verified by the Code Enforcement Division have a reduced fee.

NUISANCE ABATEMENT FEES FOR VIOLATIONS OF THE SAME
SMMC SECTION WITHIN 12 MONTHS OF INITIAL CITATION
VIOLATIONS OF THE SMMC REQUIRING 1) ORDER OF
ABATEMENT, 2) AN INSPECTION OF SEIZURE WARRANT, 3) A

POSTING OF AN ORDER DESIGNATING THE PROPERTY AS
UNSAGE TO OCCUPY, 4) THE COMMENCEMENT OF THE CIVIL
LITIGATION PROCEEDINGS OR 5) SUMMARY ABATEMENT OF
*Actual Cost includes all costs of abatement, including, but not limited to: code enforcement staff, and associated indirect costs, such as labor, equipment, private contractor, materials, materials storage, and all other costs reasonable and necessary to abate the nuisance.

APPEAL OF A DECISION OR ORDER TO ABATE

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CHARGE TYPE FEE OR INITIAL DEPOSIT
I. PLANNING APPLICATIONS
A. PLANNING APPLICATION(S)- ZONING ADMINISTRATOR

DECISION (SINGLE FAMILY ONLY OR CERTIFICATE OF

PUBLIC CONVENIENCE AND NECESSITY - ALCOHOLIC

BEVERAGES)
Initial Deposit $4,000.00
B. PLANNING APPLICATION(S)- ZONING ADMINISTRATOR
DECISION (OTHER THAN SINGLE FAMILY OR PCNs)
Initial Deposit $6,000.00
C. PLANNING APPLICATION(S)- PLANNING COMMISSION

DECISION - IF NO PRE-APPLICATION REQUIRED
Initial Deposit $10,000.00
D. PLANNING APPLICATION(S)- PLANNING COMMISSION

DECISION - IF PRE-APPLICATION REQUIRED
Initial Deposit $50,000.00
E. PLANNING APPLICATION(S)- PLANNING COMMISSION &

CITY COUNCIL DECISION
Initial Deposit $100,000.00
F. FENCE EXCEPTION SPAR PLANNING APPLICATIO N Initial Deposit $2,000.00 G. SPECIAL USE PERMIT - DAY CARE FACILITIE S Flat fee $2,000.00 H. ANNUAL REVIEW OF DEVELOPMENT AGREEMEN T Initial Deposit $4,500.00 I. DESIGN REVIEW BY CONSULTING ARCHITECT (required for
projects with 6+ units, 10,000+ SF non-residential; or other projects as determined by City Resolution)
Initial Deposit $5,000.00
J. LARGE PROJECT PRE-APPLICATIO
N Initial Deposit $25,000.00
K. INFORMATIONAL NEIGHBORHOOD MEETING (PRE-

APPLICATION) PUBLIC NOTICE LIST PREPARATION
Flat Fee $500.00
L. MODIFICATIONS OF APPROVED PLANNING APPLICATIONS -

ZONING ADMINISTRATOR DECISION
Initial Deposit $3,000.00
M. MODIFICATIONS OF APPROVED PLANNING APPLICATIONS -

PLANNING COMMISSION DECISION
Initial Deposit $10,000.00
II. ENVIRONMENTAL CLEARANCE (CEQA) PROCESSING
A. CATEGORICAL OR STATUTORY EXEMPTION (Excluding
Single Family and PCNs)
Initial Deposit $500.00
B. INITIAL STUDY/NEGATIVE DECLARATION Initial Deposit $5,000.00 C. INITIAL STUDY/EIR Initial Deposit $10,000.00
D. MANDATED FEDERAL, STATE OR COUNTY FEES (e.g., Fish
& Game CEQA Fee; Fish & Game Code §711.4; Negative
Declaration
; EIR)
As Mandated by State N/A
III. CITY STAFF TIME
Planning Staff Hourly Rate $291.50
All City departments reviewing a planning application. Hourly Rate Actual Cost IV. MONITORING OF REQUIRED MITIGATION MEASURE Initial Deposit for Determined for each project.

V. INVESTIGATIO N
FEE for properties with code violations before or after planning approval.

Hourly Rate $291.50
VI. RESEARCH FE E
A. RETRIEVAL OF OFF-SITE PLANNING APPLICATION Flat Fee $180.20 B. RESEARCH REQUIRING EXTENSIVE STAFF TIME Hourly Rate $291.50 C. POST PLANNING APPLICATION PROJECT CONSULTATIO
N Hourly Rate $291.50
VII. APPEALS
A. APPEAL FEE - ALL PLANNING APPLICATIONS Flat Fee $565.00 VIII. LANDSCAPE UNIT IN-LIEU FEES Per Landscape Unit $357.07

COMMUNITY DEVELOPMENT

PLANNING DIVISION

DESCRIPTION OF SERVICES

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CHARGE TYPE FEE OR INITIAL DEPOSIT

COMMUNITY DEVELOPMENT

PLANNING DIVISION

DESCRIPTION OF SERVICES
IX. SUBORDINATION PROCESSING FEE
Applies to requests to allow City Housing Program loans to subordinate to new mortgage lenders in conjunction with refinances. Per Loan $250.00 X.

A. In Lieu Fees for Fractional Units

1. Rental

0.1 Housing Unit $33,452.00

0.2 Housing Unit $66,903.00

0.3 Housing Unit $100,355.00

0.4 Housing Unit $133,807.00

2. Owner

0.1 Housing Unit $30,701.00

0.2 Housing Unit $61,401.00

0.3 Housing Unit $92,102.00

0.4 Housing Unit $122,802.00
B. In Lieu Fee for Pro jects Less than 11 Units

1. Rental
5 Unit Project $167,259.00
6 Unit Project $200,710.00
7 Unit Project $234,162.00
8 Unit Project $267,614.00
9 Unit Project $301,065.00
10 Unit Project $334,517.00

2. Owne
r
5 Unit Project $153,503.00
6 Unit Project $184,203.00
7 Unit Project $214,904.00
8 Unit Project $245,604.00
9 Unit Project $276,305.00
10 Unit Project $307,005.00
XI. POLICIES RE: PLANNING FEE
S
A.

The cost for staff time expended by all city staff pursuant to a planning application shall be billed to the project account at the hourly rate in section III.

Under extenuating circumstances, the Community Development Director has the authority to set a deposit amount below the amount indicated in the fee schedule.
"Planning applications" include: site plan and architectural review; special use permit; temporary use permit; variance; site development permit; subdivision and parcel maps; reclassification; planned development; general plan amendment; specific plan amendment; code amendments regarding land use regulation; development agreements, downtown economic development permit; planned signing districts and freestanding signs over 8 feet in commercial districts, single family dwelling design review (SFDDR), mills act contract, historic building survey amendment, historic building demolition permit and other planning applications as set forth in Chapter 27 of the San Mateo Municipal Code.

BELOW MARKET RATE HOUSING FEE
A fee in lieu of constructing affordable housing units onsite per Below Market Rate
program:

If the cost of the staff time spent on the application(s) is less than the amount of the deposit, the balance shall be refunded to the applicant.

If at any time before action is taken on an application, more than 70% of the deposit has been expended on the application, the applicant shall be required to pay an additional deposit.

No public hearing on a planning application shall be held unless all deposits requested have been fully paid. No application by an applicant shall be accepted as complete pursuant to title 27 of the San Mateo Municipal Code if that applicant has failed to pay amounts due and payable for another planning application.

The applicant is responsible for paying the costs of staff and consultant time incurred pursuant to any appeal.

The applicant shall pay the actual cost of any consultant services required to process a planning application including the environmental (CEQA) clearance processing.

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UNIT FEE
I. BUSINESS LICENSE LISTING Each Qtr. $32.00
II. RETURNED CHECK PROCESSING CHARGE
(Non-sufficient fund checks and other issues) Each $25.00 III. STATE MANDATED DISABILITY ACCESS FEE (SB 1186)
On each Business Tax application and renewal Each $4.00 IV. NEW BUSINESS - FIRE INSPECTION Each See Note Below* V. COLLECTION REFERRAL CHARGE Each $25.00

FINANCE

DESCRIPTION OF SERVICES
*This fee is collected on behalf of the San Mateo Consolidated Fire Department. Please see the San Mateo Consolidated Fire Department's fee schedule for current fees that will be collected by the City of San Mateo on behalf of San Mateo Consolidated Fire Department at: smcfire.org/i-want-to

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UNIT FEE
I.

A. GIS SERVICES Hour $91.00
Additional Time (Hourly) $91.00
B. HARDCOPY PLOTS OF CITY MAPS Each $16.75

INFORMATION TECHNOLOGY

DESCRIPTION OF SERVICES

GIS MAPPING / ELECTRONIC DATA FEES

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UNIT FEE
I. FINES
A. OVERDUE MATERIAL

1. Adult Materials Per Day & Per Item N/A

2. Juvenile Materials Per Day & Per Item N/A
No overdue fines for borrowers ages 19 & under

3. Technology Lending Devices Per Day & Per Item $1.00
a. Cleaning Fee for Devices Per Item $10.00
B. OVERDUE MAXIMUM FINE

1. Adult Per Item N/A

2. Juvenile Per Item N/A
C. LINK + SERVICE

1. Overdue materials Per Day & Per Item N/A

2. Overdue maximum fine Per Item N/A

3. Replacement charges Per Item $115.00
II. FEES
A. Per Item Price of material
+ processing fee of $5.00
B. COPY CHARGES

1. Photocopy machine
a. Black/white copies Per Copy $0.15

2. Computer printer copy
a. Black/white copies Per Page After 3 Pages $0.15
b. Microform reader-printer Per Copy $0.15
c. Color computer printer copy Per Copy $0.30
C. COMMUNITY MEETING ROOMS, MAIN LIBRARY

1. Oak Room and courtyard
a. Non profit/not for profit (business hours) $205.00 for 1st 4 hours + $30 each additional hour
b. Non profit/not for profit (after hours) Per Hour $175.00 c. Resident (business hours) Per Hour $140.00
Resident (after hours) Per Hour $210.00
d. Non-Resident (business hours) Per Hour $210.00
Non-Resident (after hours) Per Hour $275.00
e. San Mateo Business (business hours) Per Hour $210.00 San Mateo Business (after hours) Per Hour $315.00
f. Non San Mateo Business (business hours) Per Hour $315.00 Non San Mateo Business (after hours) Per Hour $420.00
g. Music recitals Per Use (Up to 3 Hours) $160.00
h. Security/damage deposit Per Use $360.00

2. Laurel and Cedar Rooms
a. Non profit/not for profit (business hours) $110.00 for 1st 4 hours + $20 each additional hour
b. Non profit/not for profit (after hours) Per Hour $105.00 c. Resident (business hours) Per Hour $105.00
Resident (after hours) Per Hour $210.00
d. Non-Resident (business hours) Per Hour $140.00
Non-Resident (after hours) Per Hour $245.00
e. San Mateo Business (business hours) Per Hour $210.00 San Mateo Business (after hours) Per Hour $315.00
f. Non San Mateo Business (business hours) Per Hour $315.00 Non San Mateo Business (after hours) Per Hour $420.00
g. Security/damage deposit Per Use $260.00

REPLACEMENT CHARGE FOR EACH ITEM LOST OR

DAMAGED

LIBRARY

DESCRIPTION OF SERVICES

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UNIT FEE

LIBRARY

DESCRIPTION OF SERVICES
II. FEES (continued)

3. Library computer training room
a. Non profit/not for profit Use of:
1 -10 computers
4 Hours (Minimum) $210.00 per every 4 hrs
11 - 20 computers 4 Hours (Minimum) $280.00 per every 4 hrs 21 – 26 computers 4 Hours (Minimum) $355.00 per every 4 hrs b. Resident or Non-Resident Use of:
1 -10 computers
4 Hours (Minimum) $210.00 per every 4 hrs
11 - 20 computers 4 Hours (Minimum) $280.00 per every 4 hrs 21 – 26 computers 4 Hours (Minimum) $355.00 per every 4 hrs c. Security/damage deposit Per Use $500.00
d. A/V Technician Use of:
1 - 10 computers Per Use $40.00
11 - 20 computers Per Use $80.00
21 – 26 computers Per Use $130.00

4. Library – Other Areas
a. Other Library areas – fees to be determined on a case-by-case basis by City Librarian or designee
Per Hour/Per Area
Up to $410.00
b. Security/damage deposit Per Use Up to $500.00

5. Miscellaneous Meeting Room Fees
a. A/V Technician Per Use $40.00
A/V Technician – special projects Per Hour $60.00
b. Portable Stage rental:

Single stage (8’x6’x16”)
Per Use $175.00
Double stage (16’x6’x16”) Per Use $245.00
c. Conference Phone rental Per Use $40.00
d. Piano tuning (special request) Each $205.00
D. COMPUTER FILES STORAGE DEVICES

1. USB flash drive
Each $15.00
E. MATERIAL RECOVERY FEE Per Account $10.00
F. LIBRARY LOGO REUSABLE BAGS Each $2.50
G.

1. One-time use fee per digital file for any medium
a. Personal/non profit use Each $20.00
b. For profit/commercial use Each $40.00
III. RESEARCH SERVICE
A. OBITUARY SEARCH SERVICE Each $20.00
Search for Non-San
Mateo County residents

USE FEES FOR PHOTOGRAPHS FROM DIGITAL ARCHIVES

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PARKS AND RECREATION
RECREATION COST RECOVERY AND PRICING POLICY*
The following shall serve as the policy guidance for establishing a Recreation Activities Cost Recovery Plan, developing annual activity budgets, and establishing fees to be charged for recreation activities. The specific elements of this policy are that:

The Park and Recreation Cost Recovery and Pricing Model shall be used.

In recognition of the wide variety of service values and revenue generating potentials of various activities, specific cost recovery thresholds shall be established for each recreation activity area at the most specific programming level that is administratively practical.

The thresholds shall include both minimum and target levels of cost recovery.

Strategies for achieving the minimum and target thresholds shall be established by staff for each activity area. These strategies may include immediate or gradual action depending upon the best interests of maintaining a strong program, achieving the target within a reasonable time period and current fiscal conditions.

Activity areas unable to meet their minimum threshold after these strategies have been applied shall be reviewed by the Park and Recreation Commission for consideration of recommending appropriate action: reduce costs; reduce cost recovery target; eliminate activity.

Activities that have achieved or exceeded their target threshold shall be evaluated to determine if the target can/should be increased.

The Cost Recovery Plan shall, where appropriate, also include specific other fee considerations (e.g. benchmarking to a specific competitor) that may supersede cost recovery target considerations.

Once a Cost Recovery Plan is established, and within that context, staff shall have the authority to set and adjust fees, except that no fee increase shall exceed 20% within a 1-year period without the review of the Park and Recreation Commission and approval of the City Council.

As part of the budgetary process, the Park and Recreation Commission shall review the Cost Recovery Plan and the performance of each activity compared to the plan and make any recommendations for changes to the plan.

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PARKS AND RECREATION
Operating Indirect Overhead (Op IOH): Division level and shared costs, such as departmental management, brochure, printing, photocopying, training, accounting support, technology, credit card discount costs, administrative office clerical support, computer, and recreation equipment sinking fund charges
Facility Indirect Overhead (Fac IOH): Calculated charges for the Public Works Building Maintenance for on-going maintenance and repairs (e.g. plumbing, electrical, mechanical, carpentry, painting).

Recreation Cost Tier Definitions
Direct: The specific “go-away” costs at the course or activity level. These include leaders, instructors and materials or services (e.g. transportation) specific to the course or activity.

Program Direct Overhead (DOH): Direct supervision of the program, and minor miscellaneous items such as supervisor mileage.

Facility Overhead (FOH): The combination of facility direct costs (the day-to-day costs to keep the building open- receptionist, custodial services, custodial products, utilities) and facility direct overhead (primarily facility supervision).

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PARKS AND RECREATION

MINIMUM
Direct
Direct
75% Direct
Direct
100% Subsidy
100% Subsidy
100% Subsidy

MINIMUM
Direct
50% of Direct
100% Subsidy
Direct
Direct
Direct
Direct
Direct
Direct
Summer Flex Camps
Recreation Swim

ACTIVITY
Swimming Lessons
King Center Teen Programs
Building Blocks
TARGET
Through FOH
Through DOH
Direct
Through DOH
100% Subsidy

OTHER FEE CONSIDERATIONS
Benchmark fees to bottom end of Peninsula cities
Benchmark fees to mid-point of Peninsula cities
King Center Drop-In
Senior Services Link
Group 2- Composed of core programs for youth and seniors, with service values as higher consideration. Typical thresholds range s: Minimum- Direct cost recovery. Target- Through Direct Overhead (DOH).

ACTIVITY
Children's Services Center Based Programs
King Center Children's Programs
Youth Art
Youth Gymnastics
Teen Dances
Senior Center Programs
Senior Center Special Events
Children's Services Special Events
Youth Dance/Dance Shows
100% Subsidy
100% Subsidy
Benchmark fees to mid-point of Peninsula cities.

RECREATION PROGRAMS COST RECOVERY PLAN - TABLE OF TARGETS Group 1- Highest service value consideration- composed of core youth programs. Typical thresholds ranges: Minimum- From 100% su bsidy to direct cost recovery. Target- From 100% su bsidy through Direct Overhead (DOH).

OTHER FEE CONSIDERATIONSTARGET
Direct +20%
Direct
100% Subsidy
Through DOH
Through DOH
Through DOH
Direct
Direct
Through DOH

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PARKS AND RECREATION

MINIMUM
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Through DOH
Direct + additional
required office staffing
Through DOH
67% of food costs

MINIMUM
Through DOH
Through DOH
Through DOH
Through DOH
NOTE:
*
Fees established through the Recreation Cost Recovery and Pricing Policy shall be collected at the time of course registration, with certain exceptions. Prior to completion of a course, patrons may withdraw from a course and receive a refund. Refunds may be returned immediately or left on account with the Recreation Division.

Does not include special non-general fund revenues or expenses from grants, trust, etc.

Adult Fitness
Youth Fitness
Full Cost Recovery
Adult Music/Drama
Adult Dance
Through FOH
Through FOH
Direct
Through FOH
Through FOH
Through FOH
Through FOH
Specialized Aquatics Programs
Group 4- Composed primarily of specialty activities, with cost recovery considerations of highest consideration among the 4 gro ups. Typical thresholds ranges: Minimum- Through Direct Overhead (DOH). Target- range of from through Fac ility Overhead (FOH) to full recovery.

ACTIVITY
Through Operating
Benchmark fees to less than top of market.

Fees less than top of market.

OTHER FEE CONSIDERATIONSTARGET
Through FOH
Through FOH
Through FOH
Adult Swimfit
Tennis
Adult Sports Leagues
Adult Arts and Crafts
Senior Lunch
Golf Lessons
Youth Music/Drama Through FOH
Benchmark fees to San Mateo Foster City School Through FOH Youth Sports Camps
Miscellaneous Athletic Activities
Beresford Kids Club
Through FOH
Through FOH
Ice Skating
Youth Leisure Education
Adults Leisure Education
Martial Arts Through Operating
Indirect Overhead
Through FOH
Through FOH

TARGET OTHER FEE CONSIDERATIONS
RECREATION PROGRAMS COST RECOVERY PLAN - TABLE OF TARGETS (continued) Group 3- Composed primarily of adult core, and youth additional typical programs, in which both service and cost recovery value s are of strong consideration. Typical thresholds ranges: Minimum- Through Direct Overhead (DOH). Target- Through Facility Overhead (FOH)

ACTIVITY

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PARKS AND RECREATION

UNIT FEES EFFECTIVE
THROUGH 12/31/24
FEES

EFFECTIVE
1/1/25
I. FACILITY RENTAL FEES
A.

Small Picnic Area (up to 30)
Beresford Park
Areas 1 or 3 Per Use $71.00 $73.00
Bocce Court Tables Per Use $71.00 $73.00
Per Use $71.00 $73.00
Indian Springs Park Per Use $71.00 $73.00
King Park Per Use $71.00 $73.00
Lakeshore Park Area 1, 2 or 3 Per Use $71.00 $73.00
Laurelwood Park Per Use $71.00 $73.00
Laurie Meadows Park Area 1 or 2 Per Use $71.00 $73.00
Paddock Park Per Use $71.00 $73.00
Medium Picnic Area (31-60)
Beresford Park Area 2 Per Use $93.00 $96.00
Casanova Park Per Use $93.00 $96.00
Central Park Area 2, 3, or 4 Per Use $93.00 $96.00
Joinville Park Area 1, 2 or 3 Per Use $93.00 $96.00
Los Prados Park Per Use $93.00 $96.00
Parkside Aquatic Park Per Use $93.00 $96.00
Ryder Park Area 1, or 2 Per Use $93.00 $96.00
Large Picnic Area (61+)
Central Park Area 1 Per Use $195.00 $200.00
Shoreview Park Per Use $195.00 $200.00
Beresford Park Shelter Per Use $233.00 $240.00
Miscellaneous Fees
Alcohol Fee Per Use $53.00 $55.00
Jumper Fee Per Use $26.50 $28.00
Catering Services Vendor Fee Per Use N/A $28.00
Non-resident picnic reservation surcharge Per Use $20.00 $20.00 Non-Profit groups (Classification B) are eligible for 25% discount) Discount Per Use -25% -25% Picnic Re-scheduling Fee Per Use
N/A $20.00
Picnic Use/Cleanup Fee
All areas if needed Per Use $270.00 $278.00
Picnic Cancellation Fee
At least 10 working days prior to the permit date Per use $20.00 $20.00 Less than 10 working days prior to the permit date Per use $20.00 $20.00 Picnic Re-Scheduling Fee Per use N/A $20.00

PICNIC AREAS

DESCRIPTION OF SERVICES
Harborview Park
The approved applicant and/or organization will be responsible for any damage or loss sustained to the grounds, building, furnishings, and equipment (or unusual clean-up required), as a result of the applicant's an/or organization's occupancy of the facility.

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PARKS AND RECREATION

UNIT FEES EFFECTIVE
THROUGH 12/31/24
FEES

EFFECTIVE
1/1/25
B. SPECIAL PARK PERMITS
Filming for commercial purposes Hour $53.00 $54.00
Central outdoor stage Per Hour $55.00 $56.00
Special Event Fee (minimum two hours) Per Hour $25.00 $25.00 Special Event Alcohol Fee Per Use $275.00 $275.00
C. Japanese Garden or Rose Garden Fees
Resident First 2 hours $215.00 $220.00
Non-Resident First 2 hours $270.00 $277.00
Resident Extra Hours Per Additional Hour $105.00 $107.00 Non Resident Extra Hours Per Additional Hour $132.00 $135.00 Non-Profit Rate Per Booking (2 HOURS) $31.00 $31.00
Chair Set-up Per Use $29.00 $29.00
Fee to rent Japanese or Rose Garden when renting in conjunction with Central Center Per Use $150.00 $154.00 II.

Field Reservations
Priority 1 No fee No fee
Priority 2
Youth Field Player Fee (Per season) Per Player $8.00 $ 8.00 Weekday and Half Day Per Use $8.00 $ 8.00
Weekend/Holiday/Full Day Per Use $15.00 $ 15.00 Tournament Per Hour/Field $105.00 $13.00
Tournament Refundable Deposit Per Use/Field $275.00 $280.00 Priority 3-4
Youth Field Player Fee (Per season) Per Player $21.00 $22.00 Weekday and Half Day Per Use $31.00 $32.00
Weekend/Holiday/Full Day Per Use $53.00 $55.00
Tournament Per Hour/Field $220.00 $28.00
Tournament Refundable Deposit Per Use/Field $275.00 $280.00 Priority 5
Resident Adult Field Reservation (Per season) Per Hour $26.00 $27.00 Priority 6
NR Adult Reservation Field Per Hour $34.00 $34.00
Camp or Clinic Fee
Soccer (Grass) Per Hour $53.00 $55.00
Soccer (Turf) Per Hour $63.00 $65.00
Baseball/Softball (Grass) Per Hour $42.00 $44.00
Baseball/Softball (Turf) Per Hour $53.00 $55.00
Non-Athletic based NP Field Reservation Per Hour $15.00 $16.00 Private Tournament Per Hour/Field $225.00 $29.00
Refundable Deposit Per Use/Field $280.00 $280.00
Light Charges Per Hour $29.00 $30.00
Fields - Unlocked Soccer Goal Fee Per Request $31.00 $32.00 Field Attendant Per Hour $22.00 $23.00
Tennis Court Rental for Organizations Per Hour $12.50 $12.50 Tennis Court Reservation Per Hour $9.50 $9.50
Bocce Courts (4 hours or less) Per Booking $11.50 $11.50 Bocce Courts (4+ hours) Per Booking $26.00 $26.00
Outdoor Fitness Fee Per Hour $26.00 $27.00
San Mateo High School Gymnasium Rentals
Gym Per Hour $105.00 $108.00
Lobby Per Hour $31.00 $32.00
Dance Studio Per Hour $42.00 $44.00
Multi-Purpose Room Per Hour $42.00 $44.00
Facility Specialist Per Hour N/A $23.00
Custodian Per Hour N/A $32.00
Tournament Refundable Deposit Per Use N/A $280.00
ATHLETICS (Priority Levels defined on page 8.13)

DESCRIPTION OF SERVICES

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PARKS AND RECREATION

UNIT FEES EFFECTIVE
THROUGH 12/31/24
FEES

EFFECTIVE
1/1/25
III. AQUATICS - (See Classification Categories on page 8.12) A. CENTER RENTALS - (See pages 8.10 - 8.12)

JOINVILLE
Large Pool (includes Dressing Room)
Classification A No Charge No Charge
Classification B $25.00 $25.00
Classification C $36.00 $36.00
Non-Resident $44.00 $44.00
Small Pool (includes Dressing Room)
Classification A No Charge No Charge
Classification B $12.00 $12.00
Classification C $18.00 $18.00
Non-Resident $22.00 $22.00
Multi-Purpose Room See Community Centers
Category 4 (pg 8.11)
See Community
Centers
Category 4 (pg

8.11)
Off Season Closure Period By negotiation - full cost
recovery
By negotiation -
full cost recovery

BIRTHDAY PARTY FEE
Reservation Fee/Deposit Includes 15 Guests $95.00 $95.00 Additional Guests Up to 20 Guests $6.00 $6.00

KING POOL
Both Pools (includes Dressing Room)
Classification A No Charge No Charge
Classification B $20.00 $20.00
Classification C $30.00 $30.00
Non-Resident $37.00 $37.00
Off Season Closure Period By negotiation - full cost
recovery
By negotiation -
full cost recovery
FACILITY PERS. RATES
Custodian Per Hour Staff Rate $32.00
Facility Specialist Per Hour Staff Rate $23.00

LIFEGUARDS
1st Guard - Senior Guard Per Hour Staff Rate Staff Rate 2nd & each additional Guard Per Hour Staff Rate Staff Rate IV. MISCELLANEOUS FEES
Volleyball net and standards rental Per Weekend $30.00 $30.00 Bocce Set Per Set $30.00 $30.00
Equipment Refundable Deposit $100.00 $100.00
Photocopies Per Page $0.15 $0.15
V. SCHOOL DISTRICT FEES
A.

UNIT FEES EFFECTIVE
THROUGH 6/30/24
FEES

EFFECTIVE
7/1/24
VI. GOLF COURSE
A. GENERAL
Weekdays Per Round $43.00 $44.00
Weekday Twilight Per Round $32.00 $33.00
Weekday Super Twilight Per Round $24.00 $24.00
Weekends (Fri., Sat., Sun., Holiday) Per Round $59.00 $60.00 Weekend Twilight Per Round $39.00 $40.00
Weekend Super Twilight Per Round $31.00 $32.00
Weekday-back 9 Per Round $26.00 $26.00
Weekend-back 9 Per Round $30.00 $30.00
Sr. 10 Play Card Each $330.00 $340.00
B. RESIDENT
Weekdays Per Round $38.00 $39.00
Weekday Twilight Per Round $32.00 $33.00
Weekday Super Twilight Per Round $24.00 $24.00
Weekends (Fri., Sat., Sun., Holiday) Per Round $51.00 $52.00 Weekend Twilight Per Round $39.00 $40.00
Weekend Super Twilight Per Round $31.00 $31.00
Weekday-back 9 Per Round $26.00 $26.00
Weekend-back 9 Per Round $30.00 $30.00
Senior Weekdays Per Round $33.00 $34.00
Sr. 10 Play Card Each $280.00 $290.00
C. JUNIOR
Jr. Weekdays Per Round $17.00 $17.00
Jr. Weekend Per Round $22.00 $22.00
D. RESIDENT GOLF I.D. CARD Per Annual Fee $20.00 $20.00 E. RANGE BALLS (BUCKET) Size: Warm-up $5.00 $5.00
Small $8.00 $8.00
Medium $11.00 $11.00
Large $14.00 $14.00
F. MEMBERSHIP SUBSCRIPTION Per Month $29.99 $29.99
Golf Fees ‐ The Parks and Recreation Director may
adjust green fee amounts for
marketing and promotional activities as is necessary to encourage optimum play at the municipal golf courses.

SAN MATEO FOSTER CITY SCHOOL DISTRICT (SMFCSD)
Unless otherwise specified in an adopted facility use agreement, indoor and athletic facility fees shall be calculated administratively to be comparable to the SMFCSD fee schedule as it pertains to City use of similar SMFCSD facilities. Picnic and special park facility fees, and staffing fees charged to SMFCSD shall be at the rates described in other sections of the fee schedule. Pool fees for SMFCSD use shall be charged at the non-profit rate.

Fees shall be applied to the district and affiliated organizations (eg. PTA, Boosters, Foundation) as follows:

SAN MATEO HIGH SCHOOL DISTRICT
Unless otherwise specified in an adopted facility use agreement, indoor, swimming pool and athletic facility fees shall be calc ulated administratively to be comparable to the SMUHSD fee schedule as it pertains to City use of similar SMUHSD facilities.

Picnic and special park facility fees, and staffing fees charged to SMUHSD shall be at the rates described in other sections of the fee schedule.

DESCRIPTION OF SERVICES

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PARKS AND RECREATION

UNIT FEES EFFECTIVE
THROUGH 12/31/24
FEES

EFFECTIVE
1/1/25
VII. PARK AND LANDSCAPE RESOURCES
A. HERITAGE TREE PERMIT Per Permit $105.00 $107.00
Tree Replacement Cost (24" Box Tree) Per Tree $784.00 $805.00 Right of Way Tree Removal Per Hour Actual cost charged by a city designated
private tree care
company
Actual cost
charged by a
city designated
private tree
care company
B. MEMORIAL BENCH Per Bench $2,650.00 $2,650.00
C. TREE REPLACEMENT COST (15 gallon) Each $490.00 $503.00 D. TREE REPLACEMENT COST (36 inch box) Each $1,550.00 $1,593.00 E. TREE REPLACEMENT COST (48 inch box) Each $3,130.00 $3,217.00 F. COMMEMORATIVE TREE Per Tree $1,060.00 $1,089.00
G. COMMUNITY GARDENS - Community Garden Plots Per Square Ft. $0.30 $0.30 H. Each $550.00 $565.00
I. MARINA LAGOON
Boating pass (power boats 5 hp and up) Annual $450.00 $450.00 Daily $40.00 $40.00
Boating pass (under 5 hp and sail over 8 ft.) Annual $250.00 $250.00 Daily $25.00 $25.00

UNIT FEES EFFECTIVE
THROUGH 6/30/24
FEES

EFFECTIVE
7/1/24
J. Each $100.00 $100.00
Per Residential Unit Type: Per Unit* Per Unit*
Single Family $29,029.40 $25,914.00
Multi-family 2-4 Units $23,385.00 $25,474.00
Multi-family 5+ Units $20,351.00 $18,510.00
Single Family 2.94 persons per unit Multi-family 2-4 units 2.89 persons per unit Multi-family 5+ units 2.10 persons per unit

UNIT FEES EFFECTIVE
THROUGH 12/31/24
FEES

EFFECTIVE
1/1/25
VIII.

A. Fee is per Consultant's
rate
Fee is per
Consultant's
rate
B. Building Valuation on Those
Building Permits Whose
Valuation is Over $5,000 0.05% 0.05%

REIMBURSE COST OF STAFF OR CONSULTANT TIME SPENT IN PLAN CHECK OR INSPECTION SERVICES. PARK PLAN CHECK AND INSPECTION SERVICES ON BUILDING PERMITS. FEE TO BE COLLECTED AT TIME OF BUILDING PERMIT APPLICATION. AFTER

PAYMENT OF FEES, PERMITTEE MAY APPLY FOR AN EXEMPTION FOR PROJECTS HAVING NO PARK PLAN CHECK OR INSPECTION REQUIREMENTS.

PARK IN-LIEU FEE / PARK IMPACT FEE FOR RESIDENTIAL PLANNING APPLICATION

PROJECTS INVOLVING PARCEL MAPS, SUBDIVISION AND OTHER MULTI-FAMILY RESIDENTIAL PROJECTS.

DESCRIPTION OF SERVICES

DEVELOPMENT PROJECT REVIEW FEE
1 CONSULTANTS FOR SPECIALIZED PLAN CHECKING AND INSPECTION SERVICES OR TO

EXPEDITE PLAN CHECKING AND INSPECTION SERVICES
HERITAGE TREE APPEAL TO PARK AND RECREATION COMMISSION (Applicant Exempt from Fee)
1These fees are collected by Community Development's Building Division - see page 2.3 K.
* Fee = Land Dedication Requirement x Median Land Value of $4,407,190 per acre adopted by City Council Resolution, where Land D edication Requirement = [(Quantity of proposed dwelling units x population factor per dwelling unit type) less (quantity of existing dwelling units x population factor per dwelling unit type) ] x (2 acres/ 1000 population) per Muni Code Section 26.64. The population factors per dwelling unit type are as follows:

DESCRIPTION OF SERVICES

TEMPORARY PARK ACCESS PERMIT

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PARKS AND RECREATION
12 3 4
-$ - $ - $ $ -

40.00$ 30.00 $ 25.00 $ $ 15.00 120.00$ 95.00 $ 75.00 $ $ 40.00 150.00$ 120.00 $ 95.00 $ $ 50.00 Per Hour
Non-residents, Businesses and schools
(other than San Mateo Union High
School District and San Mateo-Foster
City School District per Section IV).

B: Non-Profit or Not-For-Profit groups
serving the majority of City of San
Mateo residents and whose membership
is open to the general public.

Non -Profit as defined as 501c through
the IRS. Not-For-Profit as approved by
the Parks and Recreation Director or
approved delegate. Per Use
C: Residents of the City of San Mateo
Per Hour
Bookings on weekends or during non-operating hours will be charged:
• $50.00 additional per hour.
• $23.00/hour for Rental Officer
• $32.00/hour for Custodial staff required for set up and break down.
• $53.00/booking Alcohol permit fee if serving alcohol
during the event
• $250.00 Refundable Security Deposit for rentals serving alcohol (All or part of this security deposit will be
withheld if event goes past end time on contract or if there are damages to the property.)
CategoryPatron Classification
Additional Charges - applicable to patrons in Classifications B, C and Non-residents
A: City of San Mateo internal or
sponsored meetings, activities or events
as aproved by the Parks and Recreation
Director or approved delegate.

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PARKS AND RECREATION
Standing Theatre Facility Room Category
Beresford Assembly 1
614 439 Beresford Social 3
359 256 Beresford Activity 3
540 385 Beresford
Conference 4
Beresford Studio 4
333 238 Beresford Club 4
342 244 Central Activity A/B 2
265 189 Central Activity A 4
Central Stage 4
Central Lounge 4
307 219 Central Activity B 4
254 181 King Assembly 1
211 150 King Social A/B 2
235 168 King Studio 4
King Social A 4
King Conference 4
King Social B 4
King Gym 4
250 178 Joinville Pool Multipurpose 4
125 89 Shoreview Assembly 3
125 89 Shoreview Social 4
84 60 Sr. Center Assem/MP 1
Sr. Center Activity 3
Sr. Center Assem/MP A 4
Sr. Center
Conference 4
162 116 Sr. Center Game Room 4
170 122 Sr. Center Library Room 4
101 72
158 113
125 89
158 113
182 130
150 107
C. FACILITY CATEGORY TABLES
Beresford Assembly 205
King Assembly 120
Central Assembly
Facility Room Ba nquet
Category 1
Activity 102
111
114
88 Activity A/B
Sr. Center Assembly 180
Central
King Social A/B
Beresford
Category 2
Category 3
King Social B
Beresford Social
Studio 83
Category 4
85 Sr. Center Activity 70
Beresford
Beresford Conference
Joinville Pool Multipurpose
Shoreview Assembly 75
42 Beresford Studio B 42
Beresford Club 28
Beresford Studio A
26 Central Lounge
Central Stage
53 Shoreview Social 61
Sr. Center Assem/MP A 50
34 King Studio 53
King Social A 42
King
Activity A 54
Central Activity B 57
Note - Capacities are fire safety maximums. Rental capacities may vary and are established by each center consistent with use needs.

Conference
Central

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PARKS AND RECREATION
Non-Resident, Businesses, and schools (other than San Mateo Union High School District and San Mateo-Foster City School District per Section IV).

Classification B:

Non-profit and/or not-for-profit groups serving majority of City of San Mateo residents and whose membership is open to the general public. Non-Profit as defined as 501c through the IRS. Not-For-Profit as approved by the Parks and Recreation Director or approved delegate
Classification C:

FACILITY PERMIT CLASSIFICATION DEFINITIONS
Classification A:

City of San Mateo internal or sponsored meetings, activities or events as approved by the Parks and Recreation Director or approved delegate.

Resident of the City of San Mateo (Simplified Definition) Non-Resident:

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PARKS AND RECREATION
Priority 5:

A. Adult resident sports groups or teams.

B. Resident private rentals.

Youth or Adult non-resident groups, teams, or individuals. Nonresident is defined as having an organization address outside of the San Mateo City limits and/or having less than 25% residency.

Programs conducted by Elementary Schools (K-8) within the City of San Mateo. Also programs conducted by organizations that limit their recruitment and sign-ups to individuals living within the San Mateo City limits and are recreational in nature having a "everyone plays; no child is turned away" philosophy. Residency requirement for Priority 2 consideration is a minimum of 90% Athletics Field Priorities
Priority 1:

Programs and activities conducted or sponsored by the City of San Mateo. This includes the San Mateo Police Activities League program(s).

Priority 6:

Priority 3:

Programs conducted by private high schools within the City of San Mateo. Also, programs conducted by organizations in which participants must "tryout" or be selected based on skill level. Organizations may be "select" in that participants may be recruited from cities other than San Mateo. Residency requirement for Priority 3 consideration is a minimum of 50%. Residency verification may be required.

Priority 4:

Programs conducted by organizations in which participants must "tryout" or be selected based on skill level. Organizations may be "select" in that participants may be recruited from cities other than San Mateo. Residency requirement for Priority 4 consideration is a minimum of 25% residency. Residency verification may be required.

Priority 2:

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UNIT
I. PERMITS
A. MASSAGE ESTABLISHMENT:

1. Establishment Certificate for Non-Practitioner Owners Base Fee for Processing $638.00
+ Actual Time Spent x Rate Per
Hour as Appropriate

2. Establishment Certificate for Owner/Practitioners
Verification/Processing/Safety Inspection Base Fee for Processing $317.00 + Actual Time Spent x Rate Per
Hour as Appropriate
B. MASSAGE PRACTITIONER OFF- PREMISE
Verification/Processing Each $59.00
C. TANNING SALON

1. Tanning Facility Application Fee Each $541.00

2. Tanning Facility Biyearly Renewal Fee Each Facility $88.00 D. TAXI CAB DRIVER Investigation/Processing
New/Renewal $121.00
1 E. TAXI CAB INSPECTION $146.00 2
F. ENTERTAINMENT PERMIT Each $347.00
G. TOW SERVICE

1. Tow Truck Application Fee $316.00 1

2. Tow Truck Rotation List $48.00

3. Tow Truck Licensing Fee $3.00
H. Fee/Per Hour $173.00
II. COPIES OF REPORTS
A. ACCIDENT REPORTS Per Page $0.15
B. CAD REPORTS Per Page $0.15
C. ARREST REPORTS Per Page $0.15
D. CLEARANCE LETTER Each $10.00
E. PUBLIC RECORDS REQUEST Per Page $0.15
III. VIDEO/AUDIO TAPE RECORDS AND PHOTOS
A. VIDEO RECORDINGS

1. Each $12.00
B. PHOTOS Each $5.00
IV. Each $15.00
V.

A. Per 1/4 Hour $6.00
B. Per Page $0.10
C. Each Actual Cost
DVD / CD / Flash drive Recording

FILING OF REPORT OF REPOSSESSION
(State Law GC 41612)

SUBPOENA DUCES TECUM
(State Law CEC 1563)
CLERICAL COSTS (Charged on a 1/4 hr basis w/the hrly rate set at $24.00) STANDARD REPRODUCTION OF DOCUMENTS OF A SIZE OF 8 1/2 X 14 INCHES OR LESS

REPRODUCTION OF OVERSIZE DOCUMENTS, DOCUMENTS

REQUIRING SPECIAL PROCESSING, POSTAGE, RETRIEVAL/RETURN

OF RECORDS HELD OFF-SITE
POLICE

DESCRIPTION OF SERVICES FEE
Background Investigation/Verification/ Processing/Safety Inspection

PROJECT PLAN CHECKING FEE ON BUILDING PERMITS

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San Mateo City CouncilApril 15, 2024

San Mateo City Council
April 15, 2024