Agenda packet, regular meeting — San Mateo City Council, May 19, 2025 (part 1 of 2)

CITY OF SAN MATEO
City Council Regular Meeting
May 19, 2025
7:00 PM
City Hall Council Chamber
Entrance is on O’Farrell Street

COUNCIL MEMBERS
Robert Newsom Jr.

Adam Loraine
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

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

PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND REMOTEL Y.

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

To join via Zoom –

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M
ay 19, 2025
To join via telephone:

(408) 638-0968

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Passcode: 591672
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 Consideration for Meeting Participation by Teleconference due to Just Cause or Emergency Circumstances

CEREMONIAL

1. Public Works Week – Proclamation

2. LGBTQIA+ Commission - Proclamation

3. Mental Health Month – Proclamation

4. Lew Cohen – Proclamation

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.

5. City Council Meeting Minutes – Approval
Approve the minutes of the City Council meetings as follows: the special and regular meetings held on April 7, 2025, and April 21, 2025; and the special meetings held on April 17, 2025, and April 24, 2025.

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

6. LGBTQIA+ Progress Pride Flag Display at City Hall – Adoption Adopt a Resolution to direct that the LGBTQIA+ Progress Pride Flag be flown in recognition of Pride Month Pursuant to the City's Flag Policy beginning June 1, 2025, and continuing through June 30, 2025.

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

7. 29 Baytree Way and 22 De Sabla Road – Final Parcel Map Approval Adopt a Resolution to approve the final parcel map for a condominium conversion located at 29 Baytree Way and 22 De Sabla Road in substantially the form presented.

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

8. Metropolitan Transportation Commission Transit-Oriented Communities Policy Grant – Adoption Adopt a Resolution committing to completing the City of San Mateo’s tasks toward achieving compliance with the Metropolitan Transportation Commission’s (MTC) Transit-Oriented Communities (TOC) Policy, as a condition for MTC to allocate regional discretionary funding to the Housing Policy Development Project (Grand Nexus Study).

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

9. Fleet Maintenance Services – Agreement Approval
Adopt a Resolution approving an alternative purchasing procedure to award a two-year agreement to Vector Fleet Management, LLC, for Fleet Maintenance Services in the amount of $2,261,226.42, with three one-year extensions subject to future Council approval; establish an annual contingency in the amount of $75,000 per agreement year; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue amendments within the contingency amount.

CEQA: Approval of this agreement is not a project subject to CEQA, because it can be seen with certainty that there is no possibility that fleet maintenance services may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)

10. Wastewater Treatment Plant, Digester 2 Coating Project – Agreement Approval Approve an Agreement with Brand Safway to conduct Wastewater Treatment Plant Digester 2 Coatings in an amount not to exceed $406,881.35; approve a contingency of $82,000.00; and authorize the Public Works Director to execute the agreement in substantially the form presented and approve any necessary change orders within the approved 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 use. (CEQA Guidelines Section 15301.)

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11. East San Mateo Sanitary Sewer Lift Station Rehabilitation Project – Amendment Approve Amendment No. 6 with Schaaf & Wheeler for professional design services for the East San Mateo Sanitary Sewer Lift Station Rehabilitation Project to provide engineering services during construction in an amount not to exceed $334,247, for a total agreement amount of $2,396,431; amend the Scope of Project; extend the term; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue amendments within the balance of the previously approved contingency.

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.

12. On-Call Professional Consultant Services Agreement – Amendment Approval Approve Amendment No. 3 to the agreement with Sanbell-Bay Area, formerly Bellecci & Associates, for on-call professional design services increasing the agreement amount by $200,000, for a new agreement total of $450,000; extending the term of the Agreement to June 30, 2027; and authorizing the Director of Public Works to execute amendments within the Agreement amount including no-cost extensions.

CEQA: This amendment is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b) (5).) In addition, the proposed work relating to the Villa Terrace closure and median improvements at East Bellevue Avenue will include separate CEQA review documentation prepared for the project.

13. 2025 Annual Investment Policy – Approval
Adopt a Resolution approving the City of San Mateo 2025 Investment Policy and authorizing investments in United States Treasury obligations, Federal Agency obligations and State and Local Municipal obligations with a maximum maturity of up to seven years and an aggregate amount not to exceed ten percent of the City’s investment portfolio at the time of purchase.

CEQA: Approval of the City’s 2025 Investment Policy 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. Citywide Curb Painting, AB413 Red zones, Markers, Delineators, and Striping Services – Amendment Approve Amendment No. 1 to the Agreement with Quality Striping, Inc. for thermoplastic, painting, and marking services to increase the Agreement amount by $230,000, for a total revised Agreement amount of $320,000; update the payment rates; extend the term through June 30, 2026; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue no-cost time extensions.

CEQA: Approval of Amendment No. 1 for thermoplastic, striping, and pavement marking services is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use (CEQA Guidelines Section 15301.)

15. 2000 South Delaware Affordable Housing Development – Agreements Approve the subordination of specified sections of the City Regulatory Agreement with MP Delaware LLC for the 2000 South Delaware Affordable Housing Development to the Deed of Trust of the senior lender, Housing Trust Silicon Valley, and authorize the City Manager to execute a Subordination Agreement and other agreements

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associated with this transaction that do not differ from the term sheet approved by the City Council on August 19, 2024.

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

16. Investment Advisory Services – Agreement
Approve an agreement with Chandler Asset Management for Investment Advisory Services and authorize the Finance Director to execute the agreement in substantially the form presented.

CEQA: Approval of this Agreement for investment advisory services 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).)

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.

17. Downtown Business Improvement Area – Annual Renewal Adopt a Resolution to Levy the Annual Assessments for the Downtown Business Improvement Area for fiscal year 2025-26.

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

18. 2025-26 Community Development Block Grant Annual Action Plan – Adoption Adopt the 2025-26 Community Development Block Grant (CDBG) Annual Action Plan and direct staff to submit the plan to the U.S. Department of Housing and Urban Development (HUD); authorize the City Manager to execute the Funding Agreement with HUD for CDBG funds.

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

NEW BUSINESS

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19. Worker Resource Center Update and Agreement Renewal Terms – Presentation Receive a presentation from Samaritan House on the Worker Resource Center and provide direction on renewal of an agreement with Samaritan House to continue operations of the Worker Resource Center.

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

20. Climate Action Plan – Annual Progress Report
Receive a progress report on the implementation of the City's Climate Action Plan.

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

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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http://youtube.com/CityofSanMateo
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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.

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

ACCESSIBILITY: In compliance with the Americans with Disabilities Act, those with disabilities requiring special accommodations to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected]

. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 5 Section Name: CONSENT CALENDAR Account Number: 10-1111 File ID: 25-9989 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: May 19, 2025
SUBJECT:

City Council Meeting Minutes – Approval
RECOMMENDATION:

Approve the minutes of the City Council meetings as follows: the special and regular meetings held on April 7, 2025, and April 21, 2025; and the special meetings held on April 17, 2025, and April 24, 2025.

BUDGET IMPACT:

There is no budgetary impact associated with this minutes approval.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Minutes 2025-04-07 Special
Att 2 – Minutes 2025-04-07 Regular
Att 3 – Minutes 2025-04-17 Special
Att 4 – Minutes 2025-04-21 Special
Att 5 – Minutes 2025-04-21 Regular
Att 6 – Minutes 2025-04-24 Special

STAFF CONTACT
Martin McTaggart, City Clerk
[email protected]
(650) 522-7044

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City Council Special Meeting Minutes – 4/7/2025 Page 1
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COUNCIL MEMBERS
Rob Newsom Jr., Mayor
Adam Loraine, Deputy Mayor
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

CITY OF SAN MATEO
Special Meeting Minutes
City Council
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org

April 7, 2025
City Hall Council Chambers 5:30 PM
Special Meeting
CALL TO ORDER at 5:30 p.m.

Roll Call

STUDY SESSION

1. US 101 / SR 92 Direct Connector — Update
Carolyn Mamaradlo and Amy Linehan, San Mateo County Transportation Authority, gave the presentation and status update about the US-101/SR-92 Direct Connector project.

Public Comment:

Organized presentation by Mike Swire stated they oppose this project. Eugene Johnson, Rick Sakuda, Laura Wood, Jim Jensen, Kevin Simpson, Olivia McNally, Michael Lim, Laurie Watanuki, Mareva Godfrey, Robert Whitehair, Anna Kuhre, Christina Herlitz, Michael Ragan, Peter Mandle, Sheri Boles, Pete Moncheck, Seema Patel, Tom Lease, Giselle Godoy, Elaine Salinger, Karen Cutler, Vikash, Nikki Huth, James Cutler, Andrew Lamond, Victoria Tung, Susan Manheimer, Eddylee Alvarado, Stu Bruns, Giuliano Carlini, Abibat Rahman-Davies, Jordan Grimes, Annie Tsai, Melina Norton, Taso Zografos, and Laurie Hietter spoke in opposed to this project.

Council consensus was for Mayor Newsom and Council Member Cwirko-Godyki to co-author a letter of opposition to the San Mateo County Transportation Authority, City/County Association of Governments, Caltrans, Assembly Member Papan, and Senator Becker on the project; and invite the City of Foster City to join the letter. Council Member Fernandez asked for letter to C/CAG and asked Council Member Diaz Nash to convey as liaison in which she agreed.

ADJOURNMENT –The meeting adjourned at 7:10 p.m.

APPROVED BY: SUBMITTED BY:

Rob Newsom, Jr., Mayor Martin McTaggart, City Clerk

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City Council Regular Meeting Minutes – 4/7/2025 Page 1
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COUNCIL MEMBERS
Rob Newsom Jr., Mayor
Adam Loraine, Deputy Mayor
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

CITY OF SAN MATEO
Regular Meeting Minutes
City Council Meeting
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
April 7, 2025
City Hall Council Chambers 7:00 PM
Regular Meeting
CALL TO ORDER at 7:20 p.m.

Pledge of Allegiance
Roll Call

CEREMONIAL

1. Dispatcher Appreciation – Proclamation - Dispatch Supervisor Tayo Wilson-Anumudu accepted the proclamation.

2. Arab – American Heritage Month – Proclamation - Afif Baba, President of Ramallah Club; and Musa Tariq, Council of American-Islamic Relations (CAIR), accepted the proclamation.

3. National Library Week – Proclamation - Rukshana Singh, City Librarian gave a presentation and accepted the proclamation.

CONSENT CALENDAR
The following items, 4 through 19, were considered to be routine by the City Council. After the titles of the items were read by the City Clerk, the public was invited to comment and there were no speakers. Motion passed 5-0.

Moved: Diaz Nash, Seconded: Cwirko-Godycki
Ayes: Newsom, Loraine, Fernandez, Cwirko-Godycki, and Diaz Nash Noes: None

4. City Council Meeting Minutes – Approval
Approve the special and regular minutes of the City Council meetings of February 18, 2025, March 3, 2025, and March 17, 2025. Approve the minutes of the City Council special meetings of February 22, 2025, March 10, 2025, and March 14, 2025.

5. Boards and Commissions – Establish Annual Appointment Subcommittees Establish Appointment Subcommittees with Mayor Rob Newsom and the Commission Liaison to interview for vacancies on the Community Relations Commission, Library Board, Park and Recreation Commission, Personnel Board, Planning Commission, Senior Advisory Commission, Sustainability and Infrastructure Commission, and Measure S Oversight Committee. Direct staff, as necessary, if Council Members wish to serve on additional Appointment Subcommittees.

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6. Zoning Code Amendments to Implement General Plan Ballot Measure T – Ordinance Adoptions Adopt two Ordinances that amend the San Mateo Municipal Code Title 27, Zoning. to: 1) implement various programs and policies established in San Mateo’s 2023-2031 Housing Element, and 2) implement General Plan 2040 Ballot Measure T, approved by voters on November 5, 2024; and find that the Ordinances are exempt from further environmental review pursuant to California Environmental Quality Act (CEQA) Section 15183 (Projects Consistent With a Community Plan, General Plan, or Zoning).

Enactment: Ordinance Nos. 2025-03 and 2025-04

7. Peninsula Heights North Phase, 2800, and 2988 Campus Drive – Agreement Adopt a Resolution to approve the final map and the subdivision improvement agreement for the Peninsula Heights North Phase subdivision located at 2800 and 2988 Campus Drive and authorize the Public Works Director to execute the agreement in substantially the form presented.

Enactment: Resolution No. 29 (2025)

8. E 41st Place & Pacific Boulevard Trash Capture Project – Agreement Approve an agreement with GSW Construction, Inc. for the E 41st Place and Pacific Boulevard Trash Capture project in the amount of $257,240; establish a contingency reserve in the amount of $51,400; 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.

9. On-Site Fueling Station Replacement and Canopy Addition – Purchase and Construction Contracts Adopt a Resolution approving an alternative purchasing procedure for a purchase contract with Petroleum Marketing Equipment for fueling equipment and a tank for the On-Site Fueling Station Replacement and Canopy Addition Project in the amount of $125,606.39, and establish a contingency reserve of $13,000 for the purchase contract; approve a construction contract with Armer Norman & Associates, Inc. in the amount of $978,988.00, and establish a contingency reserve in the amount of $150,000.00; and authorize the Public Works Director to execute the purchase contract and construction contract in substantially the forms presented and issue change orders as allowed by the contract documents and within the contingency reserves.

Enactment: Resolution No. 30 (2025)

10. Citywide Small Trash Capture Project – Contingency Reserve Increase Approve a contingency reserve increase in the amount of $325,000 for the construction agreement with United Storm Water, Inc. for the Citywide Small Trash Capture Project, revising the original contingency reserve from $105,000 to $430,000; and authorize the Public Works Director to issue change orders within the contingency amount.

11. Marina Lagoon Vegetation and Water Quality Management — Agreement Approve a three-year agreement with Waterworks Industries, Inc. for Marina Lagoon Vegetation and Water Quality Management in the amount of $1,552,009, with two one-year options to extend, for a total potential amount not to exceed $2,662,963; approve a contingency reserve in the amount of $80,000; and authorize the Public Works Director to execute the agreement in substantially the form presented, to execute each optional one-year extension to the agreement, and sign change orders within the contingency reserve.

12. Gateway Park Pedestrian Bridge Replacement Project – Bid Rejection Adopt a Resolution to reject all bids received for the Gateway Park Pedestrian Bridge Replacement Project.

Enactment: Resolution No. 31 (2025)

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13. Enterprise Resource Planning Support Service – Agreement Approve a new Statement of Work to the master services agreement with Collaborative Solutions, LLC for Enterprise Resource Planning Support Service (ERP) post-production support services in the amount of $242,000 and authorize the City Manager to approve the Statement of Work in substantially the form presented.

14. Temporary Standby Generator for Dale Avenue Pump Station Upgrade – Contract Change Order Approve Contract Change Order No. 8 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 $66,944.28, increasing the total agreement amount to $781,731.99; increase the contingency reserve by $22,350; extend the Agreement term to April 30, 2025; and authorize the Public Works Director to execute the change order in substantially the form presented and issue change orders within the contingency amount.

15. Consulting Recruitment Services – Change Order
Approve Change Order No. 1 to the agreement with It's Personnel Consulting for the purpose of professional recruitment services in the amount of $100,000.00 for a new agreement total of $150,000.00; and authorize the City Manager to execute the Change Order in substantially the form presented.

16. Mobile Parking Revenue Collection – Amendment
Approve Amendment No. 1 to the agreement with PayByPhone US, Inc. for mobile parking payment services in the amount of $65,000 for a new agreement total of $150,000; and authorize the Public Works Director to execute the amendment in substantially the form presented.

17. San Mateo Public Library Foundation Operating Lease – Amendment Approve an Amendment to the Property Lease and Operating Agreement with the San Mateo Public Library Foundation to extend the lease for an additional year commencing retroactively on April 1, 2025, through March 31, 2026; and authorize its execution by the City Librarian.

18. SEIU Local 521, Maintenance, Side Letter of Agreement Regarding Salary Increase – Adoption Adopt a Resolution to amend the SEIU Local 521, Maintenance Memorandum of Understanding to implement additional equity salary adjustments.

Enactment: Resolution No. 32 (2025)

19. San Mateo Management Employees’ Association – Memorandum of Understanding Amendments Adopt a Resolution to amend the Memorandum of Understanding (“MOU”) between the City of San Mateo (“City”) and the San Mateo Management Employees’ Association (“SMMEA”) for a term through April 22, 2028.

Enactment: Resolution No. 33 (2025)

PUBLIC COMMENT
Trina Pierce, President of North Central Neighborhood Association, and Judy Hendrix stated they and the residents want their parking spaces back instead of the bike lanes. Olivia McNally, Shoreview/Parkside Neighborhood President, would like a recreation room on the eastside to be able to hold community meetings/events. She also stated that she has requested multiple times to have a speed assessment done in the Parkside area especially near Parkside Elementary School for safety reasons.

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PUBLIC HEARING

20. Fiscal Year 2025-26 Comprehensive Fee Schedule — Approval Karley Toffey, Senior Management Analyst, and Karen Huang, Finance Director, gave the presentation.

Public Comment – there were no speakers.

Council asked questions and made comments.

Motion to approve waiver of park and rec facility, non-profits or neighborhood associations. Park and Recreation Director will create a policy, this is a stopgap measure.

Motion to Adopt a Resolution to approve the revisions to the proposed fiscal year 2025-26 Comprehensive Fee Schedule. Motion passed 5-0.

Moved: Cwirko-Godycki, Seconded: Fernandez
Ayes: Newsom, Loraine, Fernandez, Cwirko-Godycki, and Diaz Nash Noes: None

Enactment: Resolution No. 34 (2025)

21. Status of Vacancies and Recruitment and Retention Efforts (Assembly Bill 2561/Government Code 3502.3) – Public Hearing
Conduct a Public Hearing in accordance with Government Code Section 3502.3 (Assembly Bill 2561) to present the status of vacancies, recruitment, and retentions efforts in advance of the adoption of an annual budget.

Aracelia Esparza, Director of Human Resources, gave a presentation.

Jesse Dolan, representing SEIU, gave a presentation.

Council asked questions and made comments.

Director of Human Resources Esparza, and Jesse Dolan, representing SEIU, responded.

The Mayor opened public comment.

Public Comment – Julie Lind, San Mateo Labor Council representing 103 affiliate unions and over 95,000 workers and their families countywide, spoke about the pressing need to support our city employees.

Council recessed from 9:00 p.m. to 9:10 p.m.

NEW BUSINESS

22. General Fund Reserve Policy – Review
Karen Huang, Finance Director, gave the presentation on the General Fund Reserve Policy and potential modifications.

Public Comment – there were no speakers.

Support from Council on proposed suggestions from staff. Unanimous approval of Council.

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REPORTS AND ANNOUNCEMENTS
City Manager, City Attorney and Council Members reported on their various assignments and liaison roles and noted past and future events.

Danielle Cwirko-Godycki proposed that the City introduce a “Mayoral Minute”, as a once per month outreach effort on the City’s social meeting. Monthly update in newsletter. Majority of Council approved it.

Public Works Director Matt Fabry gave an update on the train quiet zone progress.

Council convened to Closed Session at 10:00 p.m.

CLOSED SESSION

23. Conference with Legal Counsel – Existing Litigation (Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Housing Action Coalition v. City of San Mateo (San Mateo Superior Court Case No.: 24-CIV-03126) ADJOURNMENT –The meeting adjourned at 11:01 p.m.

APPROVED BY: SUBMITTED BY:

Rob Newsom Jr., Mayor Martin McTaggart, City Clerk

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City Council Special Meeting Minutes – 4/17/2025 Page 1 6 1
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COUNCIL MEMBERS
Rob Newsom Jr., Mayor
Adam Loraine, Deputy Mayor
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

CITY OF SAN MATEO
Special Meeting Minutes
City Council
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org

April 17, 2025
City Hall Council Chambers 6:30 PM
Special Meeting
CALL TO ORDER at 6:30 p.m.

Roll Call

Present: Mayor Newsom, Deputy Mayor Loraine, Council Members: Fernandez, Cwirko-Godycki, and Diaz Nash AB 2449 Requests and Considerations for Meeting Participation by Teleconference due to Just Cause or Emergency Circumstances – Deputy Mayor Loraine requested participation under Just Cause circumstances due to experiencing a contagious illness, Deputy Mayor Loraine confirmed there were no individuals over the age of 18 present in the room.

Motion Moved by Council Member Cwirko-Godycki, Seconded by Council Member Dias Nash. Motion passed 4-0.

CLOSED SESSION
Following the opportunity for public comment, there were two organized presentations, first Jeff Adams representing San Mateo Park Community expressed concern on the City’s response to Crown Castle’s deemed approved letter, second, Ariel Strauss representing No Cell Out Group thanked the Council for holding the special meeting and listening to concerned residents. Mr. Strauss expressed concerns on the City’s response to the deemed approved letter from Crown Castle. Following public comment, the City Council convened into Closed Session at 6:32 p.m. to consider:

1. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9:
(One case)

2. Conference with Legal Counsel - Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9:
(Five cases)
Council reconvened at 7:35 p.m. City Attorney Prasanna Rasiah reported there was no reportable action taken during the closed session, and separately he will be following up with Mr. Strauss on a related matter.

ADJOURNMENT –The meeting adjourned at 7:36 p.m.

APPROVED BY: SUBMITTED BY:

Robert Newsom, Jr., Mayor Martin McTaggart, City Clerk

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City Council Special Meeting Minutes – 4/21/2025 Page 1 6 1
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COUNCIL MEMBERS
Rob Newsom Jr., Mayor
Adam Loraine, Deputy Mayor
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

CITY OF SAN MATEO
Special Meeting Minutes
City Council
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org

April 21, 2025
City Hall Council Chambers 5:30 PM
Special Meeting
CALL TO ORDER at 5:30 p.m.

Roll Call

STUDY SESSION

1. General Fund 2025-26 Operating Budget – Preview
Karen Huang, Finance Director, gave a presentation on the General Fund 2024-25 operating budget preview.

Public Comment: Mason Fong offered suggestions for enhancing the City’s financial strategies. He recommended exploring the potential for generating revenue by selling water from the Water Treatment Plant to Cal Water. He also expressed concern about the City’s 25% reserve policy, suggesting it could be adjusted to 15% to free up funds for other priorities. Mr. Fong advocated for renovating the Third Avenue Garage sooner rather than delaying the project, noting that construction costs will likely increase over time. He referenced Sunnyvale as a city with policies worth considering and encouraged the City to prioritize projects that have the potential to generate revenue.

Council asked questions and made comments.

Staff to come back with information, bring something back in June for Community Budget.

2. 2025-30 Capital Improvement Program Plan Preview
Matt Fabry, Public Works Director, and Joanne Magrini, Park and Recreation Director, gave the presentation on the 2025-30 Capital Improvement Plan.

Public Comment: Mason Fong suggested a framework for prioritizing City projects. First, he recommended evaluating projects based on the long-term cost of deferred maintenance and their potential to generate revenue for the City. Second, he proposed exploring opportunities to recapture use tax revenue—for example, by making it a conditional use to redirect sales tax funds from the County to the City to support construction efforts. Third, he encouraged the City to consider a thought exercise of using reserves to help fund currently unfunded projects.

Council asked questions and made comments.

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ADJOURNMENT –The meeting adjourned at 6:52 p.m.

APPROVED BY: SUBMITTED BY:

Rob Newsom, Jr., Mayor Martin McTaggart, City Clerk

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COUNCIL MEMBERS
Rob Newsom Jr., Mayor
Adam Loraine, Deputy Mayor
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

CITY OF SAN MATEO
Regular Meeting Minutes
City Council Meeting
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
April 21, 2025
City Hall Council Chambers 7:00 PM
Regular Meeting
CALL TO ORDER at 7:00 p.m.

Pledge of Allegiance
Roll Call

CEREMONIAL

1. San Mateo High Schools 4.0 Grade Point Average Graduate – Recognition - Students from Hillsdale, San Mateo, Aragon and Serra high schools were recognized for their scholastic achievements.

Council recessed from 7:32 p.m. to 7:35 p.m.

CONSENT CALENDAR
The following items, 2 through 3, and 5 through 9, were considered to be routine by the City Council. Item 4 was removed to be considered separately. After the titles of the items were read by the City Clerk, the public was invited to comment and there were two speakers: Deborah commented on Item 4 stating that $300,000 would be better spent towards the grade separation projects that are desperately needed for pedestrian train and car safety and also the noise pollution; Maria also commented on Item 4 and reiterated what Deborah stated especially the noise situation. She also advocated for not making bike lanes on Humboldt because the residents need the parking spots. Motion passed 5-0.

Moved: Loraine, Seconded: Fernandez
Ayes: Newsom, Loraine, Fernandez, Cwirko-Godycki, and Diaz Nash Noes: None

2. Council Member and City Clerk – Travel Authorization Approve the request for travel out of state and lodging for Council Member Danielle Cwirko-Godycki and City Clerk Martin McTaggart, subject to the City Council Rules and Procedures, as the City's official representatives at the 101st Airborne 1st Brigade Ball on June 18, 2025 to recognize the 60th anniversary of the 101st Airborne's deployment to Vietnam.

3. Public Records Management Services - Agreement
Adopt a Resolution to approve an alternative purchasing procedure and approve an agreement with Granicus, LLC for public records management services for a three year term through December 27, 2027, in the amount of $70,911.55; authorize a contingency reserve of $7,091.15, for a total amount not-to-exceed, $78,002.70 over three years; and authorize the City Clerk to execute the agreement in substantially the form presented.

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Enactment: Resolution No. 35 (2025)

5. Wastewater Treatment Plant Biosolids Hauling and Disposal – Change Order Approve Contract Change Order No. 2 to an agreement with Synagro-WWT, Inc. for wastewater treatment plant biosolids hauling and disposal for an increase of $120,000, resulting in a total contract amount not to exceed $2,044,250; and authorize the Public Works Director to execute the change order in substantially the form presented.

6. Collection System Construction Management Services for the Clean Water Program – Amendments Approve Amendment No. 3 to the professional services agreements with Tanner Pacific, Inc. and Townsend Management, Inc. for as-needed construction management services for the Clean Water Program to increase each agreement amount by $1,000,000 for a revised total agreement amount not to exceed $6,000,000 for each firm and to extend the term of each agreement through January 1, 2027; and authorize the Public Works Director to execute the amendments in substantially the form presented and approve future amendments within the approved updated budget.

7. Human Resources Department Classification Updates, Reallocation, and New Position – Approval Adopt a Resolution to approve the 1) job specification revisions for the Deputy Human Resources Director classification; and 2) reallocate the Human Resources Manager position to the revised Deputy Director of Human Resources position.

Enactment: Resolution No. 36 (2025)

8. Sewer System Management Plan - Update and Recertification Adopt a Resolution to recertify the 2025 update of the Sewer System Management Plan.

Enactment: Resolution No. 37 (2025)

9. Construction Management Services for Central Park Playground Improvements Project – Contract Award a contract to 4LEAF, Inc. (Consultant) for construction management services for the Central Park Playground Improvements Project (Project) on a time and expense reimbursement basis for actual work performed, in an amount of $1,000,000; authorize a contingency amount of $150,000, for a total amount not to exceed $1,150,000; and authorize the Parks and Recreation Director to execute the contract, in substantially the form presented.

END OF CONSENT CALENDAR

REMOVED FROM CONSENT CALENDAR

4. Hillsdale Caltrain Station Bicycle Access Gap Closure Project – Agreement Mayor Newson pulled this item and asked City Manager Khojikian if the money for this project could be spent on rail corridor improvements or is it specific to bike lanes and could he give an update on the quiet corridor situation.

The City Manager responded, stating it is specifically for the bike lanes and that the train quiet zone noise initiative will be coming to Council at the August Council meeting for discussion.

Matt Fabry, Public Works Director, also answered questions from Council.

Motion to Adopt a Resolution authorizing an appropriation of $140,000 from the City’s Measure A funds for the Hillsdale Caltrain Station Bicycle Access Gap Closure Project (Project) for the Sanbell-Bay Area agreement and staff time. Approve an agreement with Sanbell-Bay Area for professional consultant services for the Project in the

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amount of $266,666, for a total Project budget of $318,411; and authorize the Public Works Director to execute the agreement, term extensions, and change orders in substantially the form presented. Motion passed 5-0.

Moved: Loraine, Seconded: Fernandez
Ayes: Newsom, Loraine, Fernandez, Cwirko-Godycki, and Diaz Nash Noes: None

Enactment: Resolution No. 38 (2025)

PUBLIC COMMENT
Michael Seville expressed concern about the San Mateo Golf Course VIP reservation system. Mike Swire commented on the meeting held a few weeks ago and encouraged the City to submit a letter to SMCTA and CCAG and share the concern of eminent domain and that the project was not a good use of funds and would not address the congestion problem. He suggested looking at transit, bike and pedestrian issues to get more people through without widening of Highway 101. He stated that he does not agree that the bike lanes should be removed as they are important for safety.

Deborah Rosenfield would like the Cal Train quiet zone meeting moved up and concerned about safe routes to school improvements which could cause more safety issues if lanes are reduced causing bottlenecks and safety hazards for drivers and bikers and pedestrians. She requested that a meeting be held to include all the large apartment and condo complexes in the Delaware area so that they may give their input on the matter.

The City Manager addressed a couple of the items. He has asked the Parks and Recreation Director to look into updating the VIP program once the Poplar Creek restaurant is done remodeling. The City is currently conducting circulation surveys with regard to street closures.

NEW BUSINESS

10. Housing Element Implementation – Anti-Displacement and Tenant Protection Policies Rachel Horst, Housing & Neighborhood Services Manager, and Jennifer Mora, Housing Specialist, gave the presentation on how to implement the tenant protection/anti-displacement policies in the 2023-2031 Housing Element.

Public Comment
Rhovy Lyn Antonio, Mitch Speigle, Michael Johnston, Tom Blake, Jeff LaMont, Desiree Tang, Marina van Blommestein, Laurie Watanuki, Brian Ponty, Mark Rain, Frank Vella, Gary Isoardi, Don Peterson, Martin Elliott, Fred Efltkei, Shawn Fahrenbruch, Brendon Aiello, Mason Fong, Alane Gilbrech, Chris Eckert, Colleen White, Amelia Mendez, John Mendez, Karim Sarrat, Jen Kilroy, Tina Wong, Michael Ragan Paul K., Jonathan Stone, and Gina Papan spoke in opposition to expanded tenant protections, such as rental registry, increased relocation assistance and other mechanisms due to undue burden to housing providers, disincentives for small business owners to enter the rental marked and increase constraints for landlords.

Bill Newell, John Medina, Teresa Gebler, Tina Doede, Rev. Penny Nixon, Seema Patel, John Love, Rosa Maria Fonseca, Imeldia Navarro, Lauren Matthews, Jorge Vergam, Ricardo Saucedo, Robert Whitehair, Terri Whitehair, John Ebneter, Alexis Lewis, Rev Alvaro Duran, Laura Hinz, Jessica Vacketta, Chris Worthmann, Paola Arellana Rasalas, Ted McKinnon, Reina, Rick Bonilla, Karyl Eldgridge, Stephanie Reyes, Amanda Chang, Suzanne Moore, Krista Hanson spoke in support of protections for tenants such as rental registry, emergency rental assistance, prohibition of no fault eviction, right of return after remodels, and increase relocation assistance.

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Council recessed from 9:32 p.m. to 9:42 p.m.

Council asked further questions of staff and deliberated.

Question #1. Given the commitment in Policy H.3.4(a) to extending relocation assistance for no-fault evictions for those with tenure less than one-year (day one, 3, 6, 9, 11 months)? If so how many months of assistance? –

Council consensus was for 11 months, with 1 month of relocation assistance.

Question #2. Would the City Council like to pursue a policy related to right-to-return as described in Policy H.3.4(b)?

Council consensus directed staff to notify tenant first of new market rate unit.

Question #3. Given the commitment in Policy H.3.4(c) to strengthening the enforcement penalty structure of the City’s existing ordinance on relocation assistance for tenants displaced by code enforcement activities, does the City Council wish to move forward with changing the existing requirement (3 months of HUD FMR) to actual 3 months’ rent (or costs)?
Council unanimously supports. Staff directed to propose ordinance amendments that align with best practices from comparable cities.

Council called for vote to continue the meeting after 11:00 p.m. Motion passed 5-0.

Ayes: Newsom, Loraine, Fernandez, Cwirko-Godycki, and Diaz Nash Noes: None
Question #4. Would the City Council like to pursue a rent registry, pursue a different model for data tracking, or rely on existing data sources to achieve the goals of Policy H.3.6?

Council consensus was to not pursue this but to review in a year and to return to City Council with other options for data tracking.

Question #5. Are there other policy alternatives the City Council would like to pursue based on the findings in this report (emergency rental assistance funding and program)?

Council unanimously indicated yes for emergency rental assistance.

Question #6. Does the City Council wish to prioritize any of these items as staff continues with implementation? Council did not formally rank the items, but indicated that enforcement (Q3), right-to-return (Q2), and relocation assistance (Q1) were higher priorities for near-term action. Rental registry (Q4) was identified as needing further analysis before moving forward.

11. City Council Priority List – Adoption
This item was moved to the May 5, 2025 regular meeting due to the length of this meeting.

REPORTS AND ANNOUNCEMENTS
City Manager, City Attorney and Council Members reported on their various assignments and liaison roles and noted past and future events, along with updates.

ADJOURNMENT –The meeting adjourned at 11:30 p.m.

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APPROVED BY: SUBMITTED BY:

Rob Newsom, Jr., Mayor Martin McTaggart, City Clerk

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COUNCIL MEMBERS
Rob Newsom Jr., Mayor
Adam Loraine, Deputy Mayor
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash

CITY OF SAN MATEO
Special Meeting Minutes
City Council
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org

April 24, 2025
City Hall Council Chambers 6:00 PM
Special Meeting
CALL TO ORDER at 6:00 p.m.

Roll Call

Deputy Mayor Adam Loraine attended remotely from Hyatt Regency Sacramento (1209 L Street, Sacramento, CA, US, 95814

CLOSED SESSION
Following the opportunity for public comment, there were no speakers, the City Council convened into Closed Session at 6:02 p.m. to consider:

1. Conference with Legal Counsel - Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: (one case) Existing facts and circumstances: IRS proposed administrative penalty re: filing of information returns Council reconvened at 6:15 p.m.

ADJOURNMENT –The meeting adjourned at 6:15 p.m.

APPROVED BY: SUBMITTED BY:

Rob Newsom, Jr., Mayor Martin McTaggart, City Clerk

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 6 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 25-10002 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: May 19, 2025
SUBJECT:

LGBTQIA+ Progress Pride Flag Display at City Hall – Adoption RECOMMENDATION:

Adopt a Resolution to direct that the LGBTQIA+ Progress Pride Flag be flown in recognition of Pride Month Pursuant to the City's Flag Policy beginning June 1, 2025, and continuing through June 30, 2025.

BACKGROUND:

On June 3, 2014, the San Mateo County Board of Supervisors unanimously adopted a resolution establishing the Lesbian, Gay, Bisexual, Transgender, Queer, Intersex, and Asexual (LGBTQIA+) Commission, the first county or city-level commission in California dedicated to addressing the needs of the LGBTQIA+ community. The Commission’s mission is to cultivate San Mateo County as a welcoming, affirming, and safe environment where its lesbian, gay, bisexual, transgender, queer, intersex, asexual, and gender expansive community members can thrive.

In 2020, the Commission launched its Pride Month Visibility Campaign, encouraging all cities and communities in San Mateo County to recognize and support Pride Month each June. Since 2021, all 20 cities within the county, including the City of San Mateo, have participated by issuing proclamations and raising the Pride Flag.

To continue the City’s commitment to promoting diversity and inclusion, staff recommends that the City Council adopt the attached Resolution authorizing the display of the LGBTQIA+ Progress Pride Flag during the month of June, in accordance with the City Hall Flag Display Policy.

BUDGET IMPACT:

There is no budgetary impact associated with the adoption of the attached Resolution.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

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STAFF CONTACT
Martin McTaggart, City Clerk
[email protected]
(650) 522-7044

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CITY OF SAN MATEO
RESOLUTION NO. ____ 2025
DIRECTION THAT THE LGBTQIA+ PROGRESS PRIDE FLAG BE FLOWN FROM JUNE 1, 2025 THROUGH JUNE 30, 2025 IN RECOGNITION OF PRIDE MONTH PURSUANT TO THE CITY OF SAN MATEO’S FLAG POLICY WHEREAS, the City of San Mateo’s Flag Policy directs that the Flag of the United States of America together with the Flag of the State of California shall be displayed on exterior flag poles at major City facilities, including the flagpole at City Hall; and
WHEREAS, the City’s flagpoles are not intended to serve as a forum of free expression by the public; and WHEREAS, flags other than the Flag of the United States of America, the Flag of the State of California or other governmental flag shall only be displayed upon approval by the City Council of the City of San Mateo by adoption of a resolution; and
WHEREAS, the City of San Mateo adopted the Flag Policy on September 3, 2024; and WHEREAS, in 2020, the San Mateo County LGBTQIA+ Commission initiated a Pride Month Visibility Campaign and invited all twenty (20) cities in San Mateo County to raise the Pride Flag in the month of June.

WHEREAS, in 2025, the City Council wishes to express its support for the LGBTQIA+ community and join the County of San Mateo to observe Pride Month with raising of a Progress Pride Flag to honor the history of the LGBTQIA+ movement and to support the rights of all citizens to experience equality and freedom from discrimination.

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

1. The City Council hereby directs that the LGBTQIA+ Progress Pride Flag be flown beginning June 1, 2025 and continuing through June 30, 2025 on the exterior flagpole at City Hall in addition to the regularly flown flags pursuant to the City’s Flag Policy.

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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: 26-4662 File ID: 25-9862 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 19, 2025
SUBJECT:
29 Baytree Way and 22 De Sabla Road – Final Parcel Map Approval RECOMMENDATION:

Adopt a Resolution to approve the final parcel map for a condominium conversion located at 29 Baytree Way and 22 De Sabla Road in substantially the form presented.

BACKGROUND:

On October 10, 2023, the Planning Commission approved the tentative parcel map for the conversion of an existing residential duplex to two (2) residential condominiums at 29 Baytree Way & 22 De Sabla Road (Planning Application # PA- 2022-064). In accordance with San Mateo Municipal Code (SMMC) Section 26.65.020, maps for conversions to condominiums are subject to subdivision map review by the City (SMMC Section 26.52), regardless of the number of lots or condominiums. Therefore, the final parcel map is subject to SMMC Section 26.52.090 and City Council approval is required prior to being recorded.

In January 2024, the Subdivider filed Parcel Map No. 483 with the City for condominium purposes in compliance with the Conditions of Approval (COAs), the Subdivision Map Act, and SMMC Section 26. The final parcel map was reviewed for accuracy and completeness by the City’s survey and mapping consultant, CSG Consultants. A copy of the final parcel map is included as Attachment 2.

Pursuant to SMMC Section 26.52.070(4), 26.65.060(7), and the COAs, all required public improvements, including sidewalk, curb, and gutter replacement on De Sabla Road, were completed and the encroachment permit was finalized on October 7, 2024. Consistent with SMMC Section 26.65.060(3) & (4) and the COAs, the building permit improvements were completed, and the building permit was finalized on March 7, 2025. All the conditions required for final parcel map approval have been satisfied.

The covenants, conditions, and restrictions (CC&Rs) for this project have been reviewed by the City Attorney's Office, Public Works Department, and Planning Division. The CC&Rs will be recorded with the County Recorder’s Office prior to the sale of the condominiums (included as Attachment #3).

BUDGET IMPACT:

Approval of the final parcel map will have no budgetary impact.

ENVIRONMENTAL DETERMINATION:

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

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NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Parcel Map No. 483
Att 3 – CC&Rs

STAFF CONTACT
Ryan Brunmeier, Associate Engineer
[email protected]
(650) 522-7314

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RESOLUTION NO. ____ (2025)
APPROVING THE FINAL PARCEL MAP FOR THE 29 BAYTREE WAY & 22 DE SABLA ROAD CONDOMINIUM

CONVERSION
WHEREAS, the tentative parcel map for the conversion of an existing residential duplex to two (2) residential condominiums at 29 Baytree Way & 22 De Sabla Road (Planning Application 2022-064) was approved by the Planning Commission on October 10, 2023; and
WHEREAS, the final parcel map conforms to the conditions of the tentative parcel map and is technically correct and all conditions of approval related to approval of the final parcel map have been met; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, RESOLVES that:

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

2. The Council approves the final parcel map entitled "Parcel Map No. 483,” and authorizes recordation of the map and CC&Rs with the County Recorder.

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(8) a judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

9.11. Number; Gender: The singular and plural number and masculine, feminine and neuter gender shall each include the other where the context requires.

9.12. General Rules. This Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for creating and operating a residential condominium development and maintaining the Common Area. As used in this Declaration, the singular includes the plural and the plural the singular. The masculine, feminine and neuter each includes the other, unless the context dictates otherwise.

9.13. Articles, Sections and Exhibits. The Article and Section headings have been inserted for convenience only and may not be considered in resolving questions of interpretation or construction.

Unless otherwise indicated, any references in this Declaration to articles, sections or exhibits are to Articles, Sections and Exhibits of this Declaration. Exhibit "A" attached to this Declaration is incorporated herein by this reference.

9.14. Priorities and Inconsistencies: If there are conflicts or inconsistencies between the Governing Documents, then the provisions of this Declaration shall prevail.

9.15. Severability: The provisions of this Declaration are independent and severable. A determination of invalidity or partial invalidity or unenforceability of any one provision of this Declaration by a court of competent jurisdiction does not affect the validity or enforceability of any other provisions of this Declaration.

9.16. Statutory References: All references made in this Declaration to statutes are to those statutes as currently in effect or to subsequently enacted replacement statutes.

9.17. City Provisions:

A. The entire Project and all of the properties located thereon shall be subject to the conditions and restrictions of all subdivision and other Project approvals by the City, with respect to the Project. Any changes and/or modifications to the Project and/or any Unit, including but not limited to changes to the exterior of any Unit, may be subject to review and approval of the City, as may be determined by review of the Project approvals by the City.

B. This Section may not be amended without the prior written consent from the City of San Mateo, Director of Community Development or their designee. Nothing contained in this Section shall limit any other right or remedy which the City may have under its ordinances or state law.

C. Compliance with the City Conditions of Approval: It shall be the responsibility of each Owner to insure that any changes or modifications to the Project or any Unit are in compliance with the original City approval of the project.

D. Property Shall Comply with the City of San Mateo Municipal Code and all other Laws. The Property, including all Common Areas, private streets and, parks within the Property, shall at all times comply with the City's Zoning Code and shall not be used for any purpose other than as permitted in the City Zoning Code.

E. Modifications to Property. Any alterations, modifications, or other improvements to the Property shall comply with the City of San Mateo Municipal Code.

F. Maintenance and Landscaping of Common Areas and Tree Protection. The Association is responsible for maintenance and landscaping of all parts of the Project which are held in common and such maintenance shall be performed to the standard of maintenance prevalent in the neighborhood. No trees shall be removed except in accordance with City requirements. 04/02/25 19
T:\ WPWIN60\PROJECTS\BA YTREE WA Y\DECLARA TION[04 02 25).doc

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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: 34-3133 File ID: 25-9867 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: May 19, 2025
SUBJECT:

Metropolitan Transportation Commission Transit-Oriented Communities Policy Grant – Adoption RECOMMENDATION:

Adopt a Resolution committing to completing the City of San Mateo’s tasks toward achieving compliance with the Metropolitan Transportation Commission’s (MTC) Transit-Oriented Communities (TOC) Policy, as a condition for MTC to allocate regional discretionary funding to the Housing Policy Development Project (Grand Nexus Study).

BACKGROUND:

In 2022, the Metropolitan Transportation Commission (MTC) adopted the Transit-Oriented Communities (TOC) Policy to support the region’s transit investments by creating communities around transit stations and along transit corridors that not only enable transit ridership, but also are places where all Bay Area residents can live, work and access services. TOC Policy applies to locations within half mile of existing and planned stops and stations served by Bay Area transit systems.

San Mateo’s three TOC areas include the half mile radius around the Hayward Park, Hillsdale, and San Mateo Caltrain transit stations.

TOC Policy requirements for local jurisdictions include minimum residential and commercial office densities for new developments, adoption of affordable housing production, preservation, and protection policies, as well as requirements for stabilizing businesses to prevent displacement. Additional requirements for parking management and transit station access are also applicable.

Compliance with TOC policy requirements is necessary for cities to be eligible for One Bay Area Grant (OBAG) funding. MTC acts as the pass-through agency for OBAG, a federal transportation funding source. OBAG 3, which spans the years 2023- 2026, totaled $750 million, and included a $200,000 grant to the City for parking management planning (Citywide parking requirements update), $610,000 for planning and rezoning update work, and $3,375,000 for Complete Street Class IV improvements at the 19th Ave/Fashion Island Blvd intersection. The process for cities to confirm compliance with TOC Policy will continue on a rolling basis until an anticipated deadline in early 2026, which corresponds with the OBAG 4 funding timeframe.

In October 2024, MTC announced its grant program, which allocated $60 million in planning and capital grants to provide support to cities to achieve compliance with TOC Policy. Twenty million was set aside for grants to cities for planning and implementation of specific TOC elements such as the adoption of TOC-compliant zoning amendments, housing policies, parking management, and planning for station access and circulation. MTC made approximately two million available for one-time grants to jurisdictions specifically to support the development and adoption of TOC-compliant housing policies.

City of San Mateo staff submitted two grant applications to MTC in November 2024. In one grant application, the City

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requested, and MTC granted, $610,000 to help fund the City’s Comprehensive Zoning Code Update. City Council accepted those grant funds under via Resolution on March 17, 2025.

The second grant application was for a multi-jurisdictional housing fee nexus and inclusionary housing policy study, referred to as the Grand Nexus and Feasibility Study, to be led by 21 Elements (San Mateo County’s regional planning collaborative) on behalf of the Cities of Belmont, Brisbane, Daly City, Menlo Park, Redwood City, San Bruno, and San Mateo. The City of San Mateo, among these other jurisdictions, committed to completing an update to the City’s housing nexus fees and inclusionary housing policy in the 2023-2031 Housing Element (Policy H 1.17). A joint study will cover topics relevant to all participating jurisdictions and consider each jurisdiction’s unique needs and housing requirements.

The City of Belmont submitted the application on behalf of all participating jurisdictions and committed to administering the grant funds as the fiscal agent. In March 2025, MTC awarded a grant for $500,000. The grant funding will offset a substantial portion of the consultant costs of implementing this requirement. The County of San Mateo, in coordination with 21 Elements, will act as the contracting entity on behalf of the participating jurisdictions. The County will manage the contract payments, and the City of Belmont will coordinate with them as the fiscal agent for the grant to manage reimbursements for the portion of the contract that is covered by the grant award.

The specific share of the grant funds that will be directly attributable to the City of San Mateo will be determined once the Request for Proposals (RFP) process is complete and the exact amount of the consultant contract is determined.

To accept this multi-jurisdictional grant award of $500,000, each city is required to adopt a Resolution committing to completing tasks that arise from the Grand Nexus Study and to comply with MTC TOC policy. The Belmont City Council approved a Resolution authorizing Belmont to accept the grant funds on April 22, 2025, and the next step is for each co- applicant jurisdiction to follow suit and adopt their own Resolutions. ABAG/MTC has set a deadline of June 30, 2025 for the Resolution adoptions. The Proposed Resolution is included as attachment 1.

BUDGET IMPACT:

There is no impact to the General Fund from participating in the Grand Nexus Study. The City of Belmont will receive the funds on behalf of the City of San Mateo and use them to cover the costs of the Grand Nexus Study.

Depending on the final consultant contract, it is anticipated that the City 19500will contribute up to $35,000 from the Commercial Linkage Fee fund (Fund 255) to cover remaining consultant fees for the Grand Nexus Study. There are sufficient funds available in Fund 255 to support these costs.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

STAFF CONTACT
Van Diggans, Housing Specialist II
[email protected]
(650) 522-7229

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6 CITY OF SAN MATEO
RESOLUTION NO. ___ (2025)
COMMITTING TO COMPLETING THE CITY OF SAN MATEO’S TASKS TOWARD ACHIEVING COMPLIANCE WITH THE METROPOLITAN TRANSPORTATION COMMISSION’S (MTC) TRANSIT ORIENTED-COMMUNITIES (TOC)

POLICY, AS A CONDITION FOR THE METROPOLITAN TRANSPORTATION COMMISSION (MTC) MTC TO

ALLOCATE REGIONAL DISCRETIONARY FUNDING TO THE MULTI-JURISDICTIONAL GRAND NEXUS AND

FEASIBILITY STUDY
WHEREAS, the Metropolitan Transportation Commission (MTC) adopted Res. 4530, the Transit-Oriented Communities (TOC) Policy; and
WHEREAS, the TOC Policy incentivizes local jurisdictions to plan and zone for higher residential and commercial densities in areas within a one-half mile of existing and planned fixed-guideway transit stops and stations to support the region’s transit investments and implement key strategies from Plan Bay Area 2050; and WHEREAS, incentivizing local jurisdictions to also adopt policies focused on increasing housing production of all types, particularly affordable housing production, preservation and protection, commercial anti-displacement and stabilization, parking management, and transit station access and circulation further supports regional transit investments and Plan Bay Area 2050 implementation; and WHEREAS, in 2023 MTC identified Hayward Park Caltrain, Hillsdale Caltrain, and San Mateo Caltrain as Tier 3 TOCs in the City of San Mateo; and
WHEREAS, MTC conditions the allocation of regional discretionary funding for fixed-guideway transit extension projects on compliance with the TOC Policy and MTC anticipates that future regional funding, such as the One Bay Area Grant (OBAG) program, will consider compliance with the TOC Policy as part of the prioritization and project selection process starting with OBAG 4, expected in 2026; and WHEREAS, on September 30, 2024, MTC announced a Call for Projects for the TOC Planning and Implementation Grant (Grant), and informed local jurisdictions of a November 22, 2024 deadline for submittals of Applications, as well as grant application guidance and requirements including compliance with TOC Policy; and
WHEREAS, the City of Belmont as the lead grant applicant on behalf of several cities, including the City of San Mateo, submitted a Grant application to MTC for $500,000 for a Multi-Jurisdictional Grand Nexus and Feasibility Study in the Housing Policy Development (Production) area, and in February 2025, MTC awarded the City of Belmont $500,000 and on April 22, 2025, the City of Belmont City Council passed a resolution authorizing the City of Belmont to accept the $500,000 Grant award; and WHEREAS, the City of San Mateo will benefit as a participant of the Multi-Jurisdictional Grand Nexus and Feasibility Study and will use its Grant member’s share to reduce costs to the City.

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

1. The resolution to accept Grant funds from a joint Grant application is not subject to CEQA review because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guidelines Section 157378(b)(5)).

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6 2. The City commits to completing the City’s tasks toward achieving compliance with the Metropolitan Transportation Commission’s (MTC) Transit-Oriented Communities (TOC) Policy, as a condition for MTC to allocate regional discretionary funding to the Housing Policy Development Project (Grand Nexus Study).

3. The City intends to cooperate with the City of Belmont and other cities on the Multi-Jurisdictional Grand Nexus Study and commits to completing the City’s tasks associated with the Multi- Jurisdictional Grant Nexus and Feasibility work scope in fulfillment of the Grant.

4. The City intends to adopt relevant policy updates emerging from the work completed from the Grant to comply with TOC Housing Policy Development requirements.

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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: 9 Section Name: CONSENT CALENDAR Account Number: 82-4683 File ID: 25-9829 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 19, 2025
SUBJECT:

Fleet Maintenance Services – Agreement Approval
RECOMMENDATION:

Adopt a Resolution approving an alternative purchasing procedure to award a two-year agreement to Vector Fleet Management, LLC, for Fleet Maintenance Services in the amount of $2,261,226.42, with three one-year extensions subject to future Council approval; establish an annual contingency in the amount of $75,000 per agreement year; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue amendments within the contingency amount.

BACKGROUND:

The City of San Mateo currently operates a fleet of over 300 vehicles and pieces of equipment, including sedans, trucks, street sweepers, tractors, police patrol vehicles, aerial lifts, motorcycles, turf mowers, and sewer trucks. The fleet incorporates various propulsion technologies, such as conventional internal combustion engines, hybrid electric, plug-in hybrid electric, battery electric, and compressed natural gas vehicles. The City has awarded an agreement for fleet maintenance services since 1991 with the current vehicle maintenance agreement due to expire on June 30, 2025.

In March 2025, staff issued a Request for Proposals (RFP) for a two-year term for Fleet Maintenance Services, with the option to extend the agreement in one-year increments for an additional three (3) years. If the service provider's initial two year term performance warrants staff to recommend pursuing any of the optional term extensions, staff will return to Council to request an amendment for the term extension and associated increase in fee. In the RFP, staff listed the estimated annual agreement amount to be $950,000. The RFP attracted inquiries from several qualified participants, who were also given the opportunity to attend an optional on-site facility walk-through. As a result, the following proposals for annual agreement amounts were received:

Company Proposed Annual Agreement Amount
Vector Fleet Management, LLC $930,613.21
Transdev Fleet Services, Inc. $1,327,623.00
Staff reviewed and assessed each submitted proposal based on the following criteria: Organization and Experience, Key Personnel, Approach and Understanding, and Cost Proposal, these factors were then assessed and weighted according to the RFP guidelines. The results of the scoring were:

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CITY OF SAN MATEO
Vendor Organization &
Experience Key Personnel Approach &
Understanding Cost Proposal Total Rank
30 Pts
Obtainable
55 Pts
Obtainable
70 Pts
Obtainable
45 Pts
Obtainable
200 Pts
Obtainable
TransDev 25 47.5 60 22.5 155 2
Vector 26.5 50 65 42.5 184 1
Based on the results of the evaluation, in addition to checking references with other municipal agencies, staff identified Vector Fleet Management, LLC to be the recommended firm. The breakdown of Vector Fleet Management’s annual fleet maintenance cost proposal is shown below:

Total Base Cost $ 861,678.90
Performance Based Compensation (8% of Base Cost) $ 68,934.31 Total Annual Agreement Amount $ 930,613.21
The RFP requested proposers to submit a Performance Based Compensation (PBC) amount, listed above, as part of their annual agreement amount. The PBC is intended to be a portion of the Vendor’s acceptable profit margin and therefore an incentive to both meet and exceed performance standards. The criteria for evaluating the PBC will be based on the overall Vendor performance and a set of Key Performance Indicators (KPIs) established by the City. Examples of KPI types are performance standards, Vendor cost savings/control, innovation, customer focus, etc. The PBC will be reviewed quarterly between staff and the Vendor and up to 25 percent of annual PBC may be paid upon quarterly review. In the event of subpar performance, guidance will be provided by staff to assist the Vendor toward improvement upon identified areas.

In addition, the RFP required proposers to submit hourly rates for non-contract labor to address expenses associated with accidents and major vehicle repair that is beyond the scope of typical maintenance. Based on prior years, staff estimates include a not-to-exceed $200,000 provision per year for these non-contract labor expenses.

This award of the Fleet Maintenance Services represents the first major change in operator of the City‘s Fleet Maintenance shop since the City first awarded and agreement with the incumbent maintenance provider in 1993. This change will require the month of June 2025 as a transition period for the incumbent to wind down operations and the new vendor to set up operations and hire staff. The agreement requires both the incumbent and new operator have stipulations for a phase in/out period to allow staff and the operators to manage the transition.

The initial agreement period will be in place for two years with an option to extend the agreement for up to three (3) additional one-year periods, bringing the total potential agreement term to a maximum of five (5) years. For the proposed two-year term, the agreement amount with the base cost, performance-based compensation allowance, and non-contract labor provisions for accidents and major vehicle repairs results in a total amount of $2,261,226.42. The three additional one-year periods may only be granted through an amendment to the agreement, which will require Council approval.

To address any market fluctuations and any unknown additional expenses, staff also recommends establishing an annual contingency in the amount of $75,000 renewing each agreement year and to be utilized within the agreement term for which it is reserved. If the service provider's initial two year term performance warrants staff to recommend pursuing any of the optional term extensions, staff will return to Council to request an amendment for the term extension and associated increase in fee.

San Mateo Municipal Code Section 3.60.030 generally requires competitive bidding for agreements of $100,000 or more.

San Mateo Municipal Code Section 3.60.070(h)(3) authorizes the City Council to approve an alternative purchasing procedure when it finds doing so is in the best interest of the City. In this case, utilizing the RFP process is more beneficial to the City because the City is not required to accept the lowest bid, but rather may evaluate other factors in addition to price such as Organization and Experience, Key Personnel, and Approach and Understanding. In addition, an RFP allows the City to consider proposals where the purpose and/or performance is known but for which no unique specification exists.

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CITY OF SAN MATEO
This process is in the best interest of the City as proposals are considered upon ability along with cost savings to the City.

Staff recommends awarding an agreement to Vector Fleet Management, LLC due to their requisite expertise, familiarity with this type of work, cost, and experience with similar fleet types.

BUDGET IMPACT:

Sufficient funding for this agreement and contingency have been requested through the annual budget development process in the Fleet and Building Maintenance Fund pending approval and adoption of the FY 2025-26 operating budget.

An annual contingency in the amount of $75,000 per agreement year is recommended to cover market fluctuations and additional expenses.

ENVIRONMENTAL DETERMINATION:

Approval of this agreement is not a project subject to CEQA, because it can be seen with certainty that there is no possibility that fleet maintenance services may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Agreement

STAFF CONTACT
Daniel Heffelfinger, Fleet Services Supervisor
[email protected]
650-522-7366
Steve Wu, Facilities and Fleet Manager
[email protected]
650-522-7345
Deryk Daquigan, Deputy Director Public Works
[email protected]
650-522-7287

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5 CITY OF SAN MATEO
RESOLUTION NO. ____ (2025)

APPROVING AN ALTERNATIVE PURCHASING PROCEDURE TO AWARD AN AGREEMENT FOR FLEET MAINTENANCE SERVICES WITH VECTOR FLEET MANAGEMENT LLC IN THE AMOUNT OF $2,261,226.42 WHEREAS, the City of San Mateo currently operates a fleet of over 300 rolling stock vehicles and equipment including sedans, trucks, street sweepers, tractors, police patrol vehicles, aerial lifts, motorcycles, turf mowers, sewer trucks, etc.; and
WHEREAS, the City has contracted on site fleet and equipment maintenance since 1993 and the term of the current fleet maintenance agreement expires on June 30, 2025; and WHEREAS, in March 2025, staff issued a request for proposals (RFP) on the City website, in the local paper (San Mateo Daily Journal March 20,2025) and posted on Barker Blue’s Bid Board to seek qualified candidates; and
WHEREAS, staff received inquiries from multiple qualified participants, conducted an optional on-site facility walk through and received proposals for a two-year term; and WHERAS, staff analyzed each submitted proposal and evaluated each on the following factors:

Organization and Experience, Key Personnel, Approach and Understanding and Cost proposal; and WHEREAS, staff selected Vector Fleet Management LLC as the recommended firm based on a review of its proposal; and
WHERAS, sufficient funding is available in the Vehicle and Equipment Maintenance Fund for these fleet maintenance services; and
WHEREAS, San Mateo Municipal Code Section 3.60.030 generally requires competitive bidding for contacts of $100,000 or more; and
WHEREAS, San Mateo Municipal Code Section 3.60.070(h)(3) authorizes the City Council to approve an alternative purchasing procedure when it is in the best interest of the City; and WHEREAS, based on these circumstances, staff recommends award of an agreement to Vector Fleet Management LLC in the amount of $2,261,226.42 for fleet maintenance services and;

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

1. Adoption of this resolution approving an alternative purchasing procedure to award an agreement to Vector Fleet Management LLC is not a project subject to CEQA, because it can be seen with certainty that there is no possibility that fleet maintenance services may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)

2. In accordance with San Mateo Municipal Code Section 3.60.070(h)(3), the award of an agreement to Vector Fleet Management LLC based on an RFP is in the City’s best interest for these reasons:
a.The RFP process is more beneficial to the City because the City is not required to accept the lowest bid but rather may evaluate other factors in addition to price such as Organization and Experience, Key Personnel, and Approach and Understanding.

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5 b.The RFP process is in the best interest of the City as it allows the City to consider proposals where the purpose and/or performance is known but for which no unique specification exists.
c.The RFP process is in the best interest of the City as proposals are considered upon ability along with Cost savings to the City.

3. The award of a fleet maintenance services agreement to Vector Fleet Management LLC in the amount of $2,261,226.42, with a contingency reserve in the amount of $75,000 per contract year, is approved.

4. The Public Works Director is authorized to issue change orders within the contingency amount and execute the agreement in substantially the form presented.

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4 Att 2 – Agreement

AGREEMENT WITH VECTOR FLEET MANAGEMENT, LLC

FOR FLEET MAINTENANCE SERVICES

FOR THE CITY OF SAN MATEO
This Agreement, made and entered into this day of ____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and VECTOR FLEET MANAGEMENT, LLC, a CORPORATION ("CONTRACTOR"), whose address is 8405 IBM DRIVE, BUILDING 301 CHARLOTTE NC 28262.

RECITALS:

A. CITY desires certain fleet maintenance services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these fleet maintenance services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
The scope of services to be performed by CONTRACTOR under this Agreement is as described in Exhibit A to this Agreement, which is attached and incorporated by reference.

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

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

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

CONTRACTOR and his subcontractors shall comply with State’s Prevailing Wage Laws.

For the work performed for the City, the CONTRACTOR and his subcontractors shall pay the workers at the prevailing wage rate as determined by the California Department of Industrial

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4 Relations, for this locality. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. 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.

SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

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

SECTION 4 - TERM
The services to be performed under this Agreement shall commence on July 1, 2025 and be provided for two (2) years. At the City’s discretion, up to three (3) one-year extensions may be granted through amendment of this Agreement.

SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR fee in an amount not to exceed $2,261,226,42 which is comprised of three separate not-to- exceed compensation categories and values: 1) “Total Base Cost” of $1,723,357.80; 2) “Performance Based Compensation” of $137,868.62; and 3) “Non-Contract Services” of $400,000.00. The fees associated with each of these compensation categories are pursuant to the rates stated in Exhibit B, attached and incorporated by reference.

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

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

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4 SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONTRACTOR in connection with the performance of this Agreement are confidential until released by CITY to the public.

CONTRACTOR shall not make any such documents or information available to any individual or organization not employed by CONTRACTOR or CITY without the written consent of CITY before any such release.

SECTION 9 - INTEREST OF CONTRACTOR
CONTRACTOR covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.

SECTION 10 - CONTRACTOR'S STATUS
It is expressly agreed that in the performance of the services required under this Agreement, CONTRACTOR shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONTRACTOR an agent or employee of CITY while providing services under this Agreement.

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

SECTION 12 - INSURANCE
Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement.

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

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4 SECTION 14 - RELIANCE UPON SKILL OF CONTRACTOR
It is mutually understood and agreed by and between the parties hereto that CONTRACTOR is skilled in the performance of the work agreed to be done under this Agreement and that CITY relies upon the skill of CONTRACTOR to do and perform the work in the most skillful manner, and CONTRACTOR agrees to thus perform the work. The acceptance of CONTRACTOR's work by CITY does not operate as a release of CONTRACTOR from said obligation.

SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

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

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

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

The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.

SECTION 19 - LITIGATION
CONTRACTOR shall testify at CITY'S request if litigation is brought against CITY in connection with CONTRACTOR'S services under this Agreement. Unless the action is brought by CONTRACTOR, or is based upon CONTRACTOR'S wrongdoing, CITY shall compensate CONTRACTOR for preparation for testimony, testimony, and travel at CONTRACTOR'S standard hourly rates at the time of actual testimony.

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

To CITY: Daniel Heffelfinger
City of San Mateo
1961 Pacific Blvd
San Mateo, CA 94403
To CONTRACTOR: Vector Fleet Management, LLC.

Attn: Aubrey Felton
8405 IBM Drive, Building 301
Charlotte NC, 28262

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4 SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

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

SECTION 22 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo. [SIGNATURE PAGE FOLLOWS]

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4 IN WITNESS WHEREOF, this agreement has been duly executed by the parties hereinabove named, as of the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Matthew Fabry
Public Works Director
Date Aubrey Felto
Its Authorized Agent
Executive Vice President
Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
Linh Nguyen
Assistant City Attorney
Date Eric Levandowski
Vice President - Finance
Date
Exhibit A- Scope of Work
Exhibit B- Cost Schedule
Exhibit C- Insurance Requirements

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4 EXHIBIT A – SCOPE OF SERVICES

FLEET MAINTENANCE SERVICES
SECTION 1 GENERAL

1.1 SCOPE OF SERVICES. The Contractor shall provide all superintendence, labor, equipment, and materials necessary to provide preventive maintenance, diagnostics, major repair, minor repair, repair analysis, overhaul, tire service, smog inspections, aerial lift inspections, and such other closely allied services as may be required to assure the continuity of effective and economical operation of the City of San Mateo, California, fleet of vehicles and equipment. Repair work for major component, accident or operator negligence up to $1,000.00 will be part of the fixed annual “BASE” target price. The Contractor shall provide such services at the City provided facility in a “captive shop” environment to only provide such services to the City owned fleet.

1.1.1 PREVENTIVE MAINTENANCE SCHEDULES: The Contractor shall perform Preventive Maintenance at the following intervals and complete all of the listed preventive maintenance tasks required by the vehicle manufacture specifications.

PREVENTIVE MAINTENANCE INTERVALS

VEHICLE/EQUIPMENT CLASSIFICATION PM SERVICE
TIME/MILES (earliest occurrence)
Administrative cars, light trucks and vans 180 Days or 5,000 miles Police Patrol Vehicles 45 Days or 2,500 miles
Police Motorcycles 60 Days or 1,000 miles
Medium and Heavy-Duty Trucks, Specialty &
Construction Equipment
High Use: Street Sweepers, VacCon’s, Waste
Disposal Vehicles & Associated Aux Engines
180 Days or 100 hours

45 Days or 50 hours
Construction Equipment, Generators, Other 180 days or 100 hours Lawn / Turf equipment 90 days or 100 hours
Trailers (except where DOT compliance
prevails)
180 days
FMCSA /DOT BIT Inspections 90 Days (per regulation)
CNG Inspections Annual (per regulation)
SMOG Emissions (light duty) Biennial
HD /IM Emissions (heavy duty) Quarterly (or per regulation) Aerial lifts / cranes -Aerial and Dielectric
Certification
Annual
Others TBD Annual Inspection or as Required by Law.

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4 PREVENTIVE MAINTENANCE TASKS
Safety Inspection

Inspect Fire Extinguisher and mount (replace if discharged or damaged) Inspect First Aid kit – replenish or replace as needed Inspect Safety Triangles (DOT vehicles) replace if worn, broken or missing Inspect Spare fuses onboard – replenish if needed (DOT vehicles) Inspect vehicle image, logo, unit number, DOT placards, reflectors – replace worn, faded or missing as needed
Inspect DVIR book or inspection reporting system – replenish as needed Inspect all glass – replace any broken or cracked windows/mirrors - replace windshield if cracked greater than 2” or damage is within wiper blade travel. Insect smooth operation of roll up or sliding windows, doors Inspect all door locks and latches, tailgates, storage boxes- repair or replace if not functioning smoothly
Inspect cargo securement / ladder racks / dump bed– repair or replace as needed Tires Regulatory compliance or Replace at 4/32 or older than 7 years from mfg. date code
Inspect TPMS system recalibrate as necessary
Inspect Spare Tire & jack components
Rims – inspect for bent, broken or cracked condition
Inspect parking brake (adjust as needed)
Lights (interior/exterior including turn signals, hazard lights, strobe, beacon, work lights, fog lamps, daytime running lights, interior, and gauge warning lights) Emergency lights and beacons
Sirens (if equipped)
Horn
Inspect radio – to include communications devices
Mirrors – replace if cracked, broken or missing Provide wide angle mirrors if requested Inspect back up camera / system
Inspect Windshield wipers and washers
Top-off all fluids
Inspect Seat belts operation and wear
Inspect Air Bag system
Inspect instrumentation and gauges
Inspect seat, upholstery, carpet and interior door cards /pulls / arm rests Inspect steering wheel for wear or play
Inspect sun visors for proper operation and condition
Inspect proper operation of Seat slide and recline
Battery and charging system diag (report) incl cleaning of terminals & inspection of cables
Batteries found to have less than 12.4 volts must be charged with a 110-volt charger to 95% or battery is deemed “dead” and must be replaced.
Heating/AC Defroster system operation
Inspect Rear defogger – if equipped

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4 Exhaust system, catalytic converters, oxygen sensors mufflers, resonators, hangers and clamps
Steering and suspension
Frame, cross members, bumpers and body joints
Drive shafts/U joints
Identify last PM and report elapsed time / mileage on work order Log date and time in & out for each event on work order

Inspect critical components, e.g., hoses, belts, clamps, etc. Inspect vehicle safety systems ADAS / Air Bags
Inspect vehicle key FOB (replace batteries as needed) Replace key FOBs when worn or failing Inspect telematics device – confirm proper operation and tamper seal Inspect ignition components (replace as necessary or upon MFG specification Inspect fuel system, fuel injectors, fuel pump and fuel regulator Inspect for any fluid leaks (A/C condensate is OK)
Inspect and test air system and slack adjusters on air brake equipped vehicles (DOT procedures)
Drain water from fuel water separator and air tanks (as equipped) Inspect hydraulic system
Inspect electrical components and systems
Inspect PTO
Inspect any ancillary components (pony motor, pump, water tank, PM if equipped) Inspect vehicle appearance for body damage, rust, interior condition (Report as necessary) Inspect vehicle seals and weather strip (repair or replace as necessary) Change engine oil and oil filter (drain plug and washer as needed) Lubrication (including chassis, doors, hood, trunks, locks) Scan ECM for codes
Service emission controls
Inspect brakes and record percentage of remaining life (Replace if at DOT/PD minimum or 3/32
Check starter/charging system
Check air and fuel filters Replace as needed or to MFG specification Check fuel cap (Replace if bent, broken, worn or failing to seal) PCV Replacement as needed or to MFG specification
Transmission – Service transmission Mfg. schedule or if fluid is low or burnt Drive shaft / CV axles, boots & joints (Replace if bent, broken or worn) Shock absorbers (Replace if bent, broken or worn)
Radiator (Replace if bent, broken or worn)
Steering and suspension (Replace if bent, broken or worn) Inspect trailer hitch, wiring and confirm lighting / braking operation w/ trailer tester Inspect Mud flaps – replace worn, missing or torn
Rotate tires & TPMS recalibration
Clean Windows (Int. & Ext.)
Clean and Vacuum Interior
Wash Exterior
Oil Analysis- every other oil change unless an issue has been identified at the last analysis Road Test
Other vehicle or added components

As Required / requested and upon Manufacturer’s specified interval

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4 Replace air filter
Battery replacement
Fuel Cap
Replace Cabin Air Filter
Align front end (new steering parts, Steering wheel out of clock position, tire wear or operator complaint)
Balance tires
Adjust headlights
Flush and replace radiator coolant
Change thermostat
Throttle body / intake cleaning
DPF service to include regen and bake out as required
Slack adjuster calibration / replace
TPMS calibration
Transmission Service
Differential Service
Shocks / Struts
Transfer Case Service
Power Steering Flush
A/C Recharge
Fuel Filter(S) / water separators
Coolant Filter(s)
Wiper Blades
Serpentine / Fan Belts
Replace timing belt / chain
Adjust valves / timing
Grease Chassis / steering / suspension / drive line

1.1.2 PERSONNEL LIFTS. All Personnel Lifts shall be serviced and tested by a qualified technician in accordance with manufacturer’s recommendation, and state and federal regulations. Annual Aerial and dielectric testing standards apply.

1.1.3 POOL CARS. In addition to maintaining the City Pool vehicles according to the standards set forth in this agreement, Contractor shall wash, clean and vacuum interior, and fuel all pool vehicles weekly.

1.1.4 CUSTOMER NOTIFICATION. Contractor shall in conjunction with the Contracting Officer, establish notification systems that are responsive to the City Customer’s needs. The system shall provide customers with monthly schedule of vehicles due for service with at least 15-days lead time. Additionally, the contractor shall provide a means of real time notification of vehicle status to the end user via Heads Up Display accessible to remote locations (URL, App, feed etc.) and configurable to specific department assigned vehicles.

Information should have functionality to automatically scroll to allow for all vehicles to be displayed. Display must include provisions for – Department (filterable or multiple department specific feeds), city unit number, vehicle year make model, Date & time In, Service description, Status, Estimated Completion, location. A typical system may be web

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4 or app based and must allow for projection to computer monitor / web connected TV, interoperability with existing hardware is preferred.

1.1.5 INSPECTIONS AND CERTIFICATIONS. Contractor shall perform all inspections and obtain any required certifications in accordance with local, state and federal law and regulations, these include but are not limited to annual speedometer calibration and certification meeting AAA or equivalent standards, SMOG, periodic smoke inspection test, dielectric and load testing of personnel lifts and any other established by regulation or industry standard.

1.1.5.1 Contractor shall perform all inspections and maintain all required records to comply with the California “Biennial Inspection of Terminals (BIT) Program. Contractor shall also perform all other statutory inspections when and as required by Federal or State Law.

1.1.6 ROAD TESTS. Contractor shall road test each vehicle and operationally test each piece of equipment after completion of a preventive maintenance inspection and/or repair.

1.1.7 ON-BOARD DATA COLLECTION SYSTEM. The maintenance levels as set forth in 1.1.1 are established as contract a starting point. The city will install an on-board collection data system to all non-emergency fleet vehicles. The contractor is expected to work with the city to define techniques for utilizing the on-board data collection system to improve maintenance techniques and reduce costs. This will be a factor consider in the Key Performance Indicators as described in

2.13.1. 1.1.8 COMPRESED NATURAL GAS (CNG) VEHILCES. The contractor is expected to provide technicians certified in the repair and inspection of CNG vehicle systems. However, when such repairs and or maintenance cannot be accomplished at city owned facilities the contractor will engage outside repair/maintenance services at contractor's expense.

1.2 PERSONNEL.

1.2.1 Contract Manager. The Contractor shall provide a Contract Manager who shall be responsible for the performance of the Work. The name of this person and an alternate(s) who shall act for the Contractor when the manager is absent shall be designated in writing to the Contracting Officer within 30 days of contract start date.

1.2.1.1 The Contract Manager or alternate shall have full authority to act for the Contractor on all contract matters relating to daily operation of this contract.

1.2.1.2 The Contract Manager or alternate shall be available during normal duty hours within 30 minutes to meet with city personnel designated by the Contracting Officer to discuss problem areas. After normal duty hours, the Contract Manager or designated alternate shall be available within 60 minutes.

1.2.1.3 The Contract Manager and alternate(s) must be able to read, write, speak, and understand English.

1.2.1.4 The City reserves the right to approve the appointment of the Contractor's Contract

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4 Manager, including replacements.

1.2.2. Employees. The selection, assignment, reassignment, transfer, supervision, management, and control of Contractor employees in performance of this work statement shall be the responsibility of the Contractor.

However, the Contractor shall comply with the general intent and specific policies set forth in the performance work statement concerning the conduct of employees as referenced herein.

Each of the contractor’s employees working at the City location are required to obtain clearance through the City approved background check system (examples include criminal background check, Live Scan, etc.), a review of qualifications and are to be approved by the City prior to appointment to a position at the City facility.

When the City directs, the Contractor shall remove from performance on the contract any employee who endangers life, property, or national security. The City reserves the right to deny any person deemed unfit or unqualified for the position, or any other reason, and bar employment at the City facility. The City may choose not to divulge the reason for this action.

1.2.3 Contractor personnel shall present a clean, neat appearance and be easily recognized.

Administrative personnel must wear a Contractor furnished badge which contains the company name and employee name. All other Contractor personnel must wear a Contractor furnished uniform with the company name and employee name clearly displayed.

1.2.4 The Contractor shall ensure that Contractor employees have the following current and valid professional certifications before starting work.

1.2.4.1 Within six months after initiation of the contract, Contractor shall ensure that at least two Contractor employees possess a valid Class "A" California state driver's license.

1.2.5 The Contractor shall provide the following full time employees- 1 Shop lead (ASE Master Technician or equivalent) and at minimum 2 ASE certified journey level technicians, one of which is required to maintain CNG Certification (Inspection and repair) The technicians shall be safety focused, qualified and ASE certified to work on the following repair categories:
a. Engine Diagnostics and Repair (to include Gas, Diesel CNG, EV) b. Can Bus systems (i.e. emergency vehicle lighting)
c. Electronic ignition systems
d. Emission controls systems
e. Fuel Systems (incl. CNG)
f. Steering and suspension
g. Automatic transmissions
h. Hydraulic systems
i. Electrical systems
j. Small Engine (i.e. lawn equipment)
k. Welding/fabrication
l. ABS and ADAS Brake systems
m. Engine management systems Diagnostics & Repair
o. FMCSA / DOT qualified inspector & HD/IM
p. Motorcycle repair & maintenance (currently BMW & Zero)

1.2.5.1 – Within ninety (90) days of the contract start, the Contractor shall employ or assure

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4 that at least one qualified journeyman level technician is trained and certified in the maintenance of Compressed Natural Gas (CNG) fueled engines, CNG fuel delivery systems

1.2.6 The Contractor shall not employ any person who is an employee of the City of San Mateo if the employment of that person would create a conflict of interest.

1.2.7 Employee Training.

1.2.7.1 General. The Contractor shall provide training of maintenance personnel in maintenance techniques, shop safety and safe driving .

1.2.7.2 Special Training. The Contractor shall be responsible for in-service training of personnel in the operations and maintenance of all specialized equipment currently assigned to the fleet.

The Contractor shall make all necessary arrangements on behalf of the City of San Mateo, California, to obtain such training for his personnel within 30 days after acceptance of new equipment and provide the Contracting Officer with written verification of compliance upon completion of training.

1.3 QUALITY CONTROL. The Contractor shall establish and maintain a complete Quality Control Plan to assure the requirements of the contract are provided as specified. One copy of the Contractor's Quality Control Plan shall be provided to the Contracting Officer not later than the pre-performance conference.

An updated copy must be provided to the Contracting Officer on contract start date and as changes occur.

The plan shall include:

1.3.1 An inspection system covering all the services required in this contract and must specify the areas to be inspected on either a scheduled or unscheduled basis, how often inspections will be accomplished, and the title of the individual(s) who will perform the inspection.

1.3.2 The methods for identifying and preventing defects in the quality of service performed before the level of performance becomes unacceptable.

1.3.3 On-site records of all inspections conducted by the Contractor and necessary corrective action taken. This documentation shall be entered into the contractor’s Fleet Management Information System and reports will be available for review by the City during the term of the contract.

1.4 QUALITY ASSURANCE. The City may evaluate the Contractor's performance under this contract utilizing the following methods:
(1) Fleet Maintenance Reports
(2) Sample work orders
(3) General observations
(4) Actual Performance vs. Performance Indicators
(5) Expenses / Cost avoidance
(6) Productivity
(7) Staffing
(8) Safety

1.4.1 Performance Evaluation Meetings. The Contractor Manager may be required to meet at

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4 least weekly with City representatives during the first month of the contract. Meetings will be as often as necessary thereafter as determined by the Contracting Officer. However, if the Contract Manager requests, a meeting will be held whenever a Contract Discrepancy Report is issued. The written minutes of these meetings shall be signed by the Contractor's manager, and the City representatives. Should the Contractor not concur with the minutes, the Contractor shall so state any areas of non-concurrence in writing within 10 calendar days of receipt of the signed minutes.

1.4.2 BI-MONTHLY END USER MEETINGS. The Contract Manager shall be required to attend regularly scheduled bi-monthly meetings with end-users in order to promote working relationships that may identify issues or areas of improvement needed.

1.5 PHYSICAL SECURITY. Contractor shall be responsible for safeguarding all city property provided for Contractor use. At the close of each work period, facilities, equipment, and materials shall be secured.

1.5.1 Key / Access Control Device. The Contractor shall establish and implement methods of insuring that all keys and access control devices issued to the Contractor by the City are not lost or misplaced, and are not used by unauthorized persons. No facility/building keys or access devices issued the Contractor by the City shall be duplicated.

1.5.1.1 The Contractor shall report the occurrences of a lost or duplicated keys or access devices to the Contracting Officer.

1.5.1.2 In the event keys, other than master keys are lost or duplicated, the Contractor will be required, upon direction of the Contracting Officer, to have new keys made or replace the affected lock or locks; however the City at its option, may replace the affected lock or locks or have new keys made. When the replacement of locks or obtaining new keys is performed by the City, the total cost of obtaining the keys or the replacement of the lock(s) shall be deducted from the monthly payment due the Contractor. In the event a master key is lost or duplicated, all locks and keys for that system shall be replaced by the City and the total cost deducted from the monthly payment due.

1.5.1.3 It is the responsibility of the Contractor to prohibit the use of keys and access devices issued by the City by any persons other than the Contractor's employees or city employees engaged in the performance of assigned work in those areas.

1.6 HOURS OF OPERATION.

1.6.1 Work Days/Hours. The Contractor shall indicate the days and hours, including shifts, that will be designated to operate the repair and maintenance facility.

Priority repair of vehicles and equipment designated as "Essential" shall be provided at any time within one hour of notification. Written procedures for recall of Technicians shall be provided to the Contracting Officer on Contract Start date.

1.6.2 Contingencies/Emergency Services. On occasion, services may be required to support an activation or exercise of contingency plans outside the normal duty hours described above. The Contractor's responsibilities for emergency support are described in Part IV - Section 6.

1.7 CONSERVATION OF UTILITIES. The Contractor shall instruct employees in utilities conservation practices. The Contractor shall be responsible for operating under conditions which preclude the waste

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1.7.1 Lights shall be used only in areas where and at the time when work is actually being performed.

1.7.2 Water faucets or valves shall be turned off after the required usage has been accomplished.

1.8 SAFETY REQUIREMENTS. In performing work under this contract, the Contractor shall conform to the CAL-OSHA safety requirements.

1.8.1 The Contractor shall develop and provide at the contract start date a Safety Plan for the protection of the City facilities and property to provide a safe work environment for Contractor personnel. The safety plan shall be written to conform to the CAL-OSHA safety requirements.

SECTION 2 SPECIAL PROVISIONS

2.0 to 2.2 RESERVED

2.3 OTHER CONTRACTS - The City reserves the right to let other contracts in connection with City equipment and vehicles as it may deem necessary. The City's right to let other contracts applies to any work outside the Scope of Work as described for normal operation and maintenance services.

2.4 INCLUSION/EXCLUSION - The City may add additional units by notifying the Contractor in writing.

Any unit to be added to the Contract will be included in the class of vehicles which most closely resembles the unit as mutually agreed upon by the City and the Contractor. To be effective, the notice adding a unit to the Contract must describe the additional unit by manufacturer, model and serial number. The notice must include fleet number, VIN number, license plate number (where applicable) and a brief description of the unit.

2.4.1 Notice of Inclusion to the Contractor will take effect upon the seventh calendar day following its receipt and be prorated by the Contractor, or on such later date as specified therein.

Each unit so added will be subject to this Contract as of the effective date; Contract charges and penalties will begin to accrue for units added to the fleet (see unit pricing sheet) at the same rate as existing units in its assigned class.

2.4.2 Any unit which is subject to this contract may be excluded from the Contract by means of a written notice from the City to the Contractor. Any such notice takes effect upon its receipt by the Contractor unless the notice provides otherwise. To be effective the notice must describe the unit by manufacturer, VIN number, fleet number, and include a brief description of the unit to be excluded.

2.5 VARIATION IN WORKLOAD.

2.5.1 If at the end of each three months of Contractor performance, the number of vehicle/equipment in Technical Attachment B varies above or below 8%, negotiations for an equitable price adjustment may be initiated by either the City or the Contractor. Adjustments to

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4 the contract amount will be made only for that portion of the increase or decrease in excess of 8%.

2.5.2 The contract amount used as a basis for computing the equitable adjustment will not contain any Over and Above amounts. All Over and Above amounts, either in the basic contract price or added by modification will be subtracted from the total contract amount in order to determine the adjustable contract amount.

2.5.3 The Contractor will notify the Contracting Officer in writing of all expected work variances as described in this change which may result in a request by the Contractor for equitable price increase and will provide the estimated amount of such price increases. Such notices will be provided at the earliest practicable time but in no event later than prior to performance of such work variances. The City will have no obligation under this clause unless a modification to this contract will have been issued establishing a line item in the schedule to cover such work variances.

2.5.4 The technical attachments referred to above and attached hereto will be the basis for all variation in workload computations for the duration of this contract including options. Only the elements described above will be the basis for an equitable adjustment based upon workload variations.

2.6 CHANGEOVER PERIOD - Upon the award of this Contract, and prior to start-up, there will be a sixty (60) day Changeover Period during which the Contractor will phase in. During the Changeover Period, the Contractor will ensure an adequate inventory of parts, lubricants, etc.; the Contractor will take all necessary steps and actions to ensure full administration of administrative program, including personnel hiring and training, setting up records, and all other procedures required for changeover. It will be the Contractor's responsibility during the Changeover Period to familiarize himself with the total fleet operations and requirements of the City covered by this Contract, so that he may be able to schedule personnel and maintenance to maximize fleet operations.

2.7 CITY OBSERVATION - City personnel may from time to time observe Contractor's operations.

However, these personnel may not interfere with Contractor's performance.

2.8 CITY PERFORMANCE OF SERVICES DURING LABOR STRIKES - The services called for under this Contract are of critical importance. In the event of a labor strike by the Contractor's employees, the Contractor will be responsible for maintaining the continuity of service to the City. However, the City reserves the right to take over the performance of this Contract. In such event, the services will be performed exclusively by City employees or by another Contractor and not by a mix of City and non-striking Contractor's employees. Under such circumstances and at the direction of the Contracting Officer, the Contractor agrees to remove its non-striking work force from performance sites and not to interfere in any way with City performance. The Contractor further agrees under such circumstances to permit the City to use essential Contractor-furnished property. The City will equitably compensate the Contractor for use of such property. The Contractor will not be entitled to payment for any performance period or part thereof during which the City assumes performance pursuant to this provision. This clause does not limit the City's rights under any other provision of this Contract including but not limited to "Default," "Termination for the Convenience of the City," and "Inspection of Services."

2.9 PHASE-IN/PHASE-OUT SERVICE - The Contractor recognizes that the services provided by this Contract are vital to the City's overall effort; that continuity thereof must be maintained at a consistently high level without interruption; that upon expiration of this Contract a successor, either the City or another Contractor, may continue these services; that the successor (the City or another

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4 Contractor) will need phase-in training; and that the Contractor must give his best efforts and cooperation in order to effect an orderly and efficient transition to a successor.

In view of the above, the Contractor agrees, upon written notification by the City, to provide phase-in/phase-out services for up to 60 days after Contract expiration at the same price as the previous period of performance. After notification, the Contractor agrees to negotiate in good faith with the City in determining the nature and extent of the phase-in/phase-out services, including a mutually acceptable detailed plan for phase-in/phase-out operations. The Contractor will be totally responsible for providing the services called for by this Contract during any phase-in/phase-out period.

The Contractor agrees to cooperate with the successor, whether it be the City or another Contractor, in allowing as many personnel as practical to remain on the job in order to enhance the continuity and consistency of the services called for by this Contract. Toward this end, the Contractor agrees to disclose necessary personnel records and to allow its successor to conduct on-site interviews with its employees.

2.10 COSTING METHODOLOGY – Contractors are to submit a fixed “BASE” annual target price for services based on the proposal. Maintenance, Diagnostic, repair, towing and recovery, body damage, per component per vehicle per occurrence up to $1,000.00 will be part of the fixed annual target price.

Contractor will submit a proposed percentage of “Base” as “Performance Based Compensation” (PBC).

The successful contractor will be issued a contract for the “Base” amount and the “PBC” amount reflected as reserve pending performance review (See 2.13.1.) If the actual monthly “BASE” costs exceed the target price the Contractor will bear the entire difference. If the actual monthly “BASE” costs are less than contracted price the contractor shall only bill for the actual “BASE” costs. Annual “BASE” costs differences will be calculated, and contractor overall cost effectiveness will be considered in the “PBC”. If contractor total “BASE” costs exceed the contract amount by more than 5% the contractor may submit in writing prior to annual “PBC” review, the reason(s) for the cost over-run. Factors that may not have been within the Contractor’s ability to control will be considered for total compensation review.

2.11 PAYMENT - The Contractor will submit monthly invoices for services performed during the previous month. After receipt and approval of monthly invoices by the Contracting Officer, payment will be due.

2.11.1 Payment is due thirty (30) days after the City has approved the invoice or after the Contracting Officer has accepted the services, whichever occurs later.

2.12 COST ADJUSTMENTS - Subject to City approval, cost adjustments for the third and subsequent year’s annual fixed amounts will be made using annual indexes of the "Consumer Price Index for All Urban Consumers," Bay Area City Average, all items (1967=100) as published in the Monthly Labor Review by the U.S. Department of Labor, (CPI). The Contractor will be responsible for calculating CPI adjustment factors based on the most recent February S.F. Bay Area CPI and submitting a revised Exhibit B to the City prior to March 31. Copies of calculations and published indexes of the "Consumer Price Index for all Urban Consumers," as identified in this section, will be submitted to the City with each adjustment for verification and approval request.

2.13 CRITERIA FOR EVALUATING BASE PERFORMANCE AND PAYMENT. Performance standards have been established by the City relating to downtime, preventive maintenance/statutory inspections and

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4 repair reworks (Section 10). The Contractor will be expected to meet those standards, minimally, without incurring deductions. If performance falls below these minimum standards the deductions, indicated, will be levied against the total monthly “BASE” contract price. Actual performance will be tracked on the Computerized Fleet Management System. The Contractor shall explain in writing the reason that service category(s) did not meet the minimum performance standard and how performance will be returned to acceptable levels. The Contracting Officer will evaluate the Contractor's explanation and determine if full payment, partial payment, or the contract termination process is applicable. If the contractor’s actual “BASE” costs for services

2.13.1 PERFORMANCE BASED COMPENSATION (PBC). The PBC is intended to be a portion of the contractor’s acceptable profit margin and therefore an incentive to both meet and exceed performance standards. The criteria for evaluating the PBC will overall Contractor performance and a set of Key Performance Indicators (KPIs) established by the City. The KPIs shall be specific, defined, reasonable, measurable and as objective as possible. Examples of KPI types are:

Performance Standards, Contractor Cost Savings/Control, Innovation, Customer Focus. PBC will be reviewed quarterly and up to 25% of annual PBC may be awarded upon quarterly review.

Quarterly, the Contractor and the City will examine the Performance Standards and the Key Performance Indicators to determine and evaluate the service levels, in the event of subpar performance, guidance will be provided to assist the Contract toward improvement upon identified areas.

2.14 ACCEPTANCE OF REPERFORMANCE OR LATE PERFORMANCE. Re-performance or late performance rights should be an exception rather than the rule in a performance work statement. The Contractor is expected to ensure performance to standard through the quality control system.

2.15 Except as otherwise provided by this section, the services required by this contract are of such nature that defective or incomplete performance disclosed by City inspection is not subject to correction by re-performance or late performance, and the Contractor shall not be required or entitled to re- perform, perform late, or otherwise correct defective services for the purpose of improving an existing inspection rating or avoiding a reduction in the full contract price.

2.16 At the sole election of the City and upon notification to the Contractor, the Contractor may be required to re-perform or perform late any or all defective work disclosed by City inspection including defective and incomplete performance. Where the City so elects, the Contractor shall be notified promptly after inspection that specified defective services will be re-performed or performed late, and completed within a reasonable time specified by the City. In such cases, the City shall re-inspect work designated for re-performance or late performance, and the Contractor will pay any damages sustained by the City including, for example, the costs associated with re-inspection.

2.17 METHOD OF PAYMENT - The Contract Charges accruing during a given calendar month will be tendered to the Contractor at the Contractor's then-current address for notices. If all of the data necessary to compute any Contract Charges (and any credits or offsets) are not available in time to make such payment when due, the City may make a good faith estimate of such data and compute the payment accordingly.

2.17.1 Adjustments to such payment will be made on the succeeding monthly payment after the necessary data are available. The City will not operate on the basis of estimates beyond thirty (30) calendar days.

2.17.2 Contractor will submit invoices on a monthly basis in arrears for services provided in accordance with contract requirements. (Annual Contract Price/12 months less (-) any

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4 Performance Requirement Indicator deductions plus any accident repair costs). Invoices will include an itemization of parts, labor, and outside repairs.

2.17.3 Invoices will be provided in triplicate and forwarded within ten (10) days following the month of service to the City.

2.17.4 City shall pay invoice within thirty (30) days of submission after the City has approved the invoice or after the Contracting Officer has accepted the services, whichever occurs later.

2.17.5 Payment for Performance Based Compensation award will be made within thirty (30) days of notice of award amount which will be communicated within thirty (3) days of the end of the contract year.

2.18 OUT-OF-CONTRACT WORK – Out of Contract work will be the balance of any single component repair or a single body work event greater than $1,000. Out of Contract work must be approved by the City upon diagnosis and an estimate documenting all costs must be provided.

Out of Contract work may include pass through invoices which will be invoiced by the Contractor to the City at Contractor’s actual cost. All repairs, diagnostics, maintenance, inspections, required testing and body damage or negligence up to $1,000.00 shall be part of the Fixed Annual Target Price and identified in the “BASE” cost proposal form. Contractor shall provide a written estimate for all directed work (i.e. adding lights, accessories, fabrication, etc.) and requires prior approval from an authorized manager in either writing or email acknowledgement prior to commencing work. No payment shall be made for unauthorized Out-of-Contract work. All Out-of-Contract work shall be at time and materials, at the hourly rate listed in Contractor’s cost proposal.

2.18.1 REPAIRS. All repairs, diagnostics, maintenance, inspections, required testing, keys, key fobs, body damage or negligence up to $1,000.00 per component or body work occurrence shall be part of the Fixed Annual Target Price and identified in the “BASE” cost proposal form.

Repair costs exceeding $1,000 per repair component, or body work occurrence shall constitute an “OUT OF CONTRACT” repair as in 2.18 above. Costs in excess of $1,000 will be the responsibility of the City and must be approved by the City at time of diagnosis, post repair approval will not be granted, and it will be the Contractor’s responsibility to cover those costs. * Repair component examples- alternator, starter, cylinder head. Repair component shall include the associated labor (Mitchell / ALLDATA labor guide) for replacement of the component – exclusive of diagnostic or other collateral components or services.

2.18.2 At any time during the contract term, the Contracting Officer, by written notice, may increase the Scope of Work, make changes in operating and maintenance requirements, add additional vehicles and equipment to the fleet, or request repairs and services not covered by the basic contract, as he may find necessary to accomplish the general purpose of the work and service contracted for. Any and all work or service performed by written notice by the Contractor will be performed in accordance with all requirements of the General Conditions and Specifications of this RFP, plus any special provisions, and any specifications or special instructions issued to execute the extra or changed work.

2.18.3 Whenever the Contractor receives a written notice, the Contractor will furnish (any or all, as requested in the written notice) the necessary manpower, service, parts, material, equipment,

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4 components or appurtenances required to accomplish the repair, work or service described in the Add Notice. Such repair, work or service will be completed within the applicable time when prescribed, but if no applicable completion time is prescribed, the work will be completed within a reasonable time.

2.18.4 Any item provided pursuant to a written notice must comply with the Contract and will be subject to the same reports, and inspections as well as acceptance or rejection in the same manner as any specific task herein described.

It is understood that the costs associated with Out-Of-Contract Work will be invoiced separately from the contract or target price. The cost for Out-of-Contract Work shall be charged at the hourly rate identified in Part IV – Section 1, Cost Proposal. The cost for parts associated with these repairs shall be at the Contractor’s acquisition cost.

2.19 to 2.21 RESERVED

2.22 CITY’S AUTO SHOP FACILITY RELOCATION. It is the City’s intent to have the Contractor operate at the City’s Corporation Yard. In the event that the City needs the Contractor to relocate, City will provide Contractor with 18 months notice. Contractor will relocate to a site within the City of San Mateo and City will pay the pass-through expense of Contractor’s lease of the new site. If no site is available within the City of San Mateo for a reasonable cost, City and Contractor will negotiate the terms of Contractor’s relocation. If City and Contractor are not able to reach agreement regarding the terms of Contractor’s relocation, City may terminate this agreement with six (6) months notice to contractor.

2.23 CERTIFICATIONS. Contractor must have at least one Full-Time ASE certified shop lead technician (ASE Master Technician certification preferred) and one or more Full-Time ASE certified technicians(s) in each of the following categories: CNG repair, maintenance and inspection (AFVI Cert or equivalent); Aerial Bucket Truck Repair & Maintenance; VacCon Repair & Maintenance within six (6) months of initial contract start date.

SECTION 3 GENERAL PROVISIONS

3.0 to 3.2 RESERVED

3.3 SURVIVAL - Notwithstanding the City's acceptance of services and payment of any charges or purchase price therefore, and notwithstanding the expiration of the Service Term, the Contractor will remain obligated to the City under all clauses of this Contract which expressly or by their nature extend beyond and survive such acceptance and payment.

3.4 FORCE MAJEURE - Timely performance by both parties is essential to this contract. However, neither the Contractor nor the City will be liable for delays in performing its obligations to the extent the delay is caused by Force Majeure, provided that no time extension because of Force Majeure will ever be allowed unless: (a) promptly upon the occurrence of a Force Majeure, the party whose performance is delayed thereby will provide the other party with written notice of the cause and extent thereof as well as request for a time extension equal to the estimated duration thereof; and (b) within seven (7) calendar days of the cessation of the Force Majeure, the party whose performance was delayed will provide the other party with written notice of the actual delay incurred, upon receipt of which the time of the delayed performance will be extended for the time actually lost by reason of the Force Majeure.

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4 3.5 NON-WAIVER - Failure of the City to insist upon strict performance of any of the terms and conditions hereof, or failure or delay to exercise any rights or remedies provided herein or by law, or failure of the City to notify the Contractor properly in the event of default, or review of or approval of any plans or specifications will not release the Contractor from any of the obligations of this contract, and will not be deemed a waiver of any right of the City to insist upon strict performance hereof or any of its rights or remedies as to prior or subsequent default hereunder.

3.6 OPERATIONS OF THE CONTRACTOR - This section will apply to operations of the Contractor pursuant to this contract on premises owned or controlled by the City. The Contractor will strictly observe all laws, codes and ordinances, and the Contractor will not create any hazardous or unhealthful conditions.

3.7 RESERVED

3.8 DEFAULT BY THE CITY – Default by the City will occur if the City fails to perform or observe any material, rather than minor, terms and conditions of this contract required to be performed or observed by the City. Should such a material default occur, the Contractor will have the right to terminate all or part of its duties under this contract as of the 30th day following the receipt by the City of a notice from the Contractor describing such material default and intended termination, provided: (1) such termination will be ineffective if within said 30-day period the City cures said material default and (2) such termination may be stayed, at the sole option of the Contractor, pending cure of said material default.

3.9 DEFAULT BY THE CONTRACTOR - Default by the Contractor will occur if: (1) the Contractor fails to perform or observe any of the terms or conditions of this Contract required to be performed or observed by it; or (2) the Contractor is dissolved or liquidated; the Contractor files a petition in bankruptcy; the Contractor is adjudicated as a bankrupt; the Contractor makes an assignment for the benefit of creditors; a court of competent jurisdiction assignment for the benefit of creditors; a court of competent jurisdiction approves any petition or other pleading in any action seeking reorganization, arrangement, adjustment or composition of or in respect of the Contractor under the federal bankruptcy laws or any similar federal or state laws; or a receiver, trustee or similar official for the Contractor, or the Contractor's property, is appointed, and such appointment remains in effect for sixty (60) days or more.

Should such a material default occur, the Contracting Officer will have the right to terminate all or part of the City's duties under this Contract as of the 30th day following the receipt by the Contractor of a notice from the Contracting Officer describing such material default and intended termination, provided: (1) such termination will be ineffective if within said 30-day period the Contractor cures said default, and (2) such termination may be stayed, at the sole option of the Contracting Officer, pending cure of said material default.

3.10 RESERVED

3.11 REMEDIES CUMULATIVE - The rights and remedies contained in this contract will not be exclusive but will be cumulative of all rights and remedies now or hereafter existing whether by statute, at law, or in equity; provided, however, neither party may terminate its duties under this contract except in accordance with the provisions hereof.

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3.13 RESERVED

3.14 NOT CITY EMPLOYEES - No employee, agent, or representative of the Contractor will be considered an employee of the City nor be eligible for any benefits, rights, or privileges to City employees.

3.15 PROVIDED CITY PROPERTY. In performance of work under this contract, certain City property identified in this contract in Technical Attachment C will be made available to the Contractor by the City and covered by the Facility and Equipment Use Fee. Such property will be utilized in the performance of this contract at the installation administering this contract. Under this clause, the City retains accountability as well as title to the property and the Contractor assumes user responsibilities to maintain such equipment and prevent any loss.

3.16 DAMAGE TO CITY PROPERTY - The Contractor will be held responsible for and required to repair, at his own expense all damages to persons or property caused by carelessness or negligence on the part of the Contractor, his agents or employees.

Upon expiration of this contract, or expiration of authorized extensions of this contract, the Contractor will return all City facilities back to the City in the same or like condition in which they were turned over to the Contractor, normal use and approved modifications excepted. Any items failing to meet acceptable standard will be charged at replacement value plus costs.

3.17 CAPTIVE SHOP- The Contractor shall operate a “CAPTIVE SHOP” at the City facility, no repairs or maintenance shall be performed on vehicles or equipment aside from the City Fleet without the approval of the City.

SECTION 4 REPORTS

4.1 The Contractor shall process data from the following functional areas of the contract on a daily basis and provide the following computerized reports in the frequency noted. All weekly reports shall be delivered to the Contracting Officer by 2:00 p.m. each Monday. All monthly reports shall be delivered to the Contracting Officer on or before the fourth calendar day of the month following the reporting period.

4.2 Vehicle Master List (Monthly). This list (Technical Attachment B) shall be updated monthly by the Contractor. The list shall include equipment no., equipment class, manufacturer description, license no., model, year, mileage/hours.

4.3 Vehicle/Equipment Service Schedule (Monthly). This calendar displays those vehicles/equipment due for service. It shall be prepared by the Contractor (by cost center) and submitted to the user division supervisors fifteen (15) weeks in advance.

4.4 Preventive Maintenance No Show Report (Weekly). A listing of vehicles not delivered for a scheduled preventive maintenance.

4.5 Fleet Downtime Report (Monthly). Hours of monthly downtime by class/vehicle number per Fleet

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4 Availability Performance Exhibit.

4.6 Fleet Operating Expense Report (Monthly). Summary of monthly operating expenses by class (includes Preventive Maintenance and Repairs).

4.7 Vehicle Abuse Report (Monthly). Summary of indications of abuse by vehicle operator in excess of wear and tear.

4.8 Management Report (Monthly). Summary (one page) of following:
a. Maintenance/repair detail costs for the month compared to contract “BASE” price. b. Non-Contract work detail
c. Unbilled / Pending Close Workorder detail
d. Follow On Repair Report
e. Failure/attainment in each performance area subject to reward/liquidated damages for that month and cumulative damages for that contract year.
f. Number of shop orders.
g. Number of service calls.
h. Number of vehicle PMs scheduled/completed.
i. Downtime by category and in total.
j. Cumulative records of sub-contracted work.
k. Total labor hours expended by each classification.
l. Total parts cost.
m.Problem/accident summary.
n. Service Report of repairs and Maintenance done on Police vehicles and other equipment as requested by the City.
o. Staffing and certifications to include expiration dates p. Safety Report – shop accident and lost time injuries q. Vehicle Rebound / Rework report
r. Overdue PM / Missed Scheduled Service report
s. Repair Trending Report
t. PM Schedule for next period
u. Vehicle Oil Analysis Reports
v. KPI Supporting report
SECTION 5 CITY-FURNISHED PROPERTY AND SERVICES

5.0 GENERAL. The City shall provide the facilities, equipment, materials, and/or services listed below.

5.1 PROPERTY.

5.1.1 Facilities. The City shall provide to the Contractor the facilities described in Technical Attachment A at no cost. The Contractor shall not use the facility for work on vehicles or equipment not owned or leased by the City. Compliance with the Occupational Safety and Health Act (OSHA) and other applicable laws and regulations for the protection of employees is exclusively the obligation of the Contractor. The City will assume no liability or responsibility for the Contractor's compliance or noncompliance with such requirements, with the exception of the aforementioned responsibility to make corrections in

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4 accordance with approved plans of abatement subject to city-wide priorities. Prior to any modification of the facilities performed by the Contractor, the Contractor must notify the Contracting Officer and provide documentation describing in detail the modifications to be performed. No alterations to the facilities shall be made without specific written permission from the Contracting Officer; however, in the case of alterations necessary for OSHA compliance, such permission shall not be reasonably withheld.

The Contractor shall return the facilities to the City in the same condition as received, normal use and approved modifications excepted. These facilities shall be used in the performance of this contract only.

5.1.2 Equipment. The City shall provide the Contractor with equipment listed in Technical Attachment C. The Contractor is responsible for maintaining all City furnished equipment. Maintenance will be performed throughout the performance period in accordance with approved commercial practices.

Contingent with funding, the City will replace equipment only when it is no longer usable for its intended purpose due to fair wear and tear.

5.1.2.1 Equipment Inventory. Not later than five (5) days prior to start of the basic contract period, the Contractor and a City representative shall conduct a joint inventory of all City furnished equipment. The Contractor shall receipt for all equipment provided by the City. The Contractor and a City representative shall jointly determine the working order and condition of all equipment. Items of equipment missing or not in working order shall be recorded. The City will replace missing items and repair all items not in working order or the Contracting Officer will direct the Contractor to replace the missing item(s) or accomplish the repair and the Contractor will be reimbursed as preagreed costs.

The City Representative will give disposition instructions for items beyond repair. The Contractor and the City Representative shall certify their agreement as to the working order of the equipment. If the Contractor does not participate in the inventory, the Contractor must accept as accurate the listing(s) and stated condition of equipment provided by the City. If the Contractor participates in the inventory, but does not agree with the City Representative's determination as to the working order of the equipment, this failure of the Contractor to agree on working order and defects shall be treated as a dispute pursuant to the clause of this contract entitled, "Disputes".

5.1.2.2 Equipment Accounting. The Contractor shall designate custodians and alternates to receipt and account for City furnished equipment. This equipment is designated in Technical Attachment C.

5.1.2.3 Obtaining Additional or Replacement Equipment. The Contractor shall submit requests for additional or replacement City furnished equipment required in the performance of the contract. The Contractor shall submit such requests through to the Contracting Officer for approval and any appropriate contract modification. Upon approval, the Contractor shall obtain the equipment by placing orders for such items through the Contracting Officer. Equipment purchased by the Contractor without Contracting Officer’s authorization shall be paid for by the Contractor.

5.1.2.4 Equipment Accountability. Thirty days prior to completion of the contract, a joint inventory of equipment shall be conducted by the Contractor and a City representative. The Contractor shall be liable for loss or damage to City furnished property beyond fair wear and tear. Compensation shall be effected either by reduced amounts owed to the Contractor or by direct payment from the Contractor, the method to be determined by the Contracting Officer. All equipment in need of repairs/maintenance shall be repaired/maintained by the Contractor within 30 days of discovery, but before the joint inventory is made. All repairs/maintenance not performed by the Contractor shall be made at the City's option and at the Contractor's expense. In the case of damaged property, the amount of compensation due the City by the Contractor shall be actual cost of repair, provided such amount does not exceed the

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4 economical value. In the case of loss or damage beyond economical repair to equipment, the amount of the Contractor's liability shall be the depreciated replacement value of the item to be determined by the Contracting Officer. Any failure of the Contractor to agree with such determination shall be treated as a dispute pursuant to the clause of this contract entitled "Disputes".

5.1.2.5 Disposition of Equipment. When equipment is determined to be beyond economical repair, the equipment will be returned to the City in its entirety. Upon completion of the contract, the remaining City equipment shall be returned to the City.

5.1.2.6 All City furnished equipment will remain in its designated area. A final inventory and evaluation shall be made prior to payment of final invoice.

5.1.3 Materials.

5.1.3.1 Parts and Supplies. The inventory of parts and supplies owned by the City or the City’s prior Contractor at the start of the contract period shall be purchased by the Contractor. The value of the inventory will be determined by a complete joint physical inventory to be taken by the City and the Contractor. Items that are mutually agreed upon as being obsolete or incorrect will be withheld from the agreement and disposed of by the City. The remaining items will become the responsibility of the Contractor for inventory control and accounting, utilizing a City approved Fleet Maintenance Information System.

The Contractor will be responsible for the security of the parts inventory. Upon expiration or termination of the contract, an inventory of parts and supplies of equal dollar value will be returned to the City at the City's selection. Such inventory will be applicable to the fleet then in service. The Contractor may sell to the City, additional usable parts and supplies inventory acquired for use by the Contractor in connection with the services and work provided for under this contract as approved by the City. The purchase price for the City shall be the Contractor's acquisition cost.

5.1.3.2 Fuels. The City will supply all fuels for City fleet vehicles and equipment. No fuel will be provided for noncity vehicles or equipment.

5.1.3.2.1 Oil, Petroleum, Lubrication Products. All oil, petroleum and lubrication products including "add-on" engine oil will be provided by the Contractor.

5.1.3.2.3 Tools and Equipment. Tools and equipment furnished to the Contractor will remain City property and shall be maintained by the Contractor during the term of the Contract.

5.1.3.2.4 The City shall supply the Contractor with repair parts for Special Purpose vehicles if those Parts are available only through City supply channels.

5.2 SERVICES.

5.2.1 Utilities. The City will provide gas, electricity, water and sewage service, and bill the Contractor accordingly based on usage. The Contractor shall comply with local energy conservation plans.

5.2.2 Telephone. The City will not provide telephone service.

5.2.3 Custodial Service. The City will not provide custodial services.

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4 5.2.4 Refuse Collection. Collection and disposal services shall be provided by the City with the exception of used oil, tires, and hazardous waste.

5.2.5 Insect and Rodent Control. Pest control will be provided by the City.

5.2.6 Grounds Maintenance. The City will provide maintenance and repair of roads, walks, parking areas, and designated draining areas.

5.2.7 Equipment Maintenance. The requirements for Contractor maintenance are detailed in Section 7.9. Radios and radio equipment will be maintained and/or replaced by the City. The City is responsible for installation of radio transmitters and receivers and repair to such equipment installed on vehicles.

5.2.8 Police and Fire Protection.

5.2.8.1 Police. Phone number 522-7600.

5.2.8.2 Fire Protection. Phone number 522-7900. The Contractor shall comply with standards of fire prevention and safety set forth in state and local directives. The Contractor shall make all assigned facilities, areas, and equipment available for inspections, surveys, and accomplishment of fire protection services, maintenance, and repair by authorized City or contract personnel.

Prior notification shall be given to the Contractor by Contracting Officer.

5.2.8.3 Fire prevention/protection services and inspection and maintenance of City furnished fire extinguishers and systems will be accomplished by the City.

5.2.9 Maintenance and repair of real property facilities will be accomplished by the City. The Contractor shall designate a building manager. The Building Manager shall identify routine maintenance and services and submit work orders to the City through the Contracting Officer.

Maintenance beyond normal "wear and tear" shall be the responsibility of the Contractor.

SECTION 6 CONTRACTOR-FURNISHED ITEMS AND SERVICES

6.1 GENERAL. The Contractor shall furnish everything required to perform all services required by this performance work statement. Except for those items or services specifically stated to be City furnished.

6.2 CONTRACTOR-FURNISHED ITEMS AND SERVICES.

6.2.1 Parts and Supplies. The Contractor will furnish at his own expense all parts required to perform the maintenance and repair work described in this Contract The Contractor will be responsible to ensure that parts are available to meet the operations essential requirements of this Contract, and to maintain the performance of the work described in this Contract to acceptable quality levels. The Contractor shall provide his own vehicle for parts pickup.

6.2.2 Batteries. The Contractor shall provide all batteries. Batteries shall have adequate CCA and reserve capacity to meet the load requirements of the vehicles, including all accessories. The group size should correspond to the application. CCA, reserve capacity, and group size of

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4 replacement batteries shall be no less than that of the original equipment battery. Batteries deemed dead 12.4 volts or less must be recharged or replaced. Vehicles failing a minimum battery voltage are to be considered Out of Service until battery is fully charged or replaced.

6.2.3 Oil Lubrication Products. The Contractor shall provide all oil and lubrication products, including addon oil, required in the performance of the work described in this Contract. Contractor shall provide recycled oil that has been certified as re-refined oil which meets or exceeds these specifications by the American Petroleum Institute (API). Contractor furnished products shall meet the requirements established by the vehicle manufacturers.

6.2.4 Tires. Contractor shall provide all tires and be responsible for their proper disposal. Tires shall meet the requirements established by the vehicle or equipment manufacturers. Tires will be replaced when the tread reaches 4/32”, Except police patrol vehicles which shall be replaced when the tread depth reaches 5/32”. Or when a tire has aged beyond 84 Months of manufacture date.

6.2.5 Hazardous Waste. The Contractor shall control, provide for and dispose of all hazardous waste materials generated from the performance of this contract including: oil, fuel, coolant, brake fluid, hydraulic fluid, power steering fluid, solvents, batteries, asbestos, oil filters, fuel filters, transmission filter, hydraulic filters, tires, brake pads / Brake materials, contaminated grease sweep, etc., according to all applicable laws and regulations.

6.2.6 Hand Tools. The Contractor shall ensure that each Technician has adequate tools to perform the required repairs and services as set forth in this contract. Contractor to provide insurance for each technician’s tools & toolbox(es) against theft, damage, and loss to include fire, flood and earthquake.

6.2.7 Computer and Software. The Contractor shall provide a Computerized Fleet Maintenance Information system capable of providing computerized records and scheduling of preventive maintenance on the vehicles and equipment detailed in this Contract, and other computerized records pursuant to this Contract as required. Computerized Records and Schedules will include as a minimum those listed in Technical Attachment C. Upon termination of this contract, the Contractor shall provide the City or successor with current and historical cost/productivity data and software as may be required for phasein/phaseout.

The Contract is to provide real time functionality for Heads Up Display such as internet connected TV to display vehicles under the shop control – Vehicle detail to include unit number, department, Service Request, date & time in, current status (e.g. Diag, pending tech waiting on parts, etc.), notes, and estimated time & date of completion. This system must be accessible to remote end users and offer department filter capability.

All records/data maintained during the term of the contract shall remain the property of the City.

6.2.8 Custodial Service. In all facilities furnished by the City, the Contractor shall maintain the facilities in such a condition that would not jeopardize safety, be conducive to fire hazards or cause deterioration of the facilities. Wash and rest areas will be kept clean and litter will be removed.

6.2.8 Physical Security. The Contractor shall be responsible for safeguarding all City property in its work area. At the close of each work period, facilities and equipment shall be secured.

6.3 TELEPHONE SERVICE. The Contractor shall use existing telephone lines and will bear the cost of usage.

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4 6.4. REMOVAL OF CONTRACTOR PROPERTY. Upon completion of the contract, a City representative will observe the removal of incumbent Contractor's equipment from installation premises: all Contractor equipment, supplies, and materials will be removed. The facilities being vacated by the outgoing Contractor shall be cleaned to the satisfaction of the City.

6.5 GROUNDS MAINTENANCE. The Contractor shall be responsible for policing his assigned grounds, sidewalks, storage and parking areas. This includes at least 50 feet from outside wall of furnished facilities.

6.6 REPAIR AND REPLACEMENT PARTS.

6.6.1 The Contractor shall provide motor vehicle and equipment repair parts equal in quality to replacement parts supplied by the original equipment manufacturer.

6.6.2 Commercially purchased or Contractor rebuilt parts may be used if they equal or exceed the quality of the original parts.

6.6.3 Used parts may be used only on an exception basis when other sources have been exhausted and with written approval of the Contract Officer. Used parts include cannibalized parts from City furnished vehicles.

6.6.4 The Contractor will be responsible to assure that parts are available to meet the requirements of the Contract.

6.6.5 Replacement Parts. The Contractor shall furnish all replacement parts. Quality of parts shall be equal to or better than the parts in the equipment when the equipment was turned over by the City.

SECTION 7 SPECIFIC TASKS

7.1 VEHICLE MAINTENANCE.

7.1.1 General. The Contractor shall maintain vehicles and equipment listed in Technical Attachment B to meet standards established by the original equipment manufacturer and as further amended by directives stated in this Contract. The Contractor shall perform maintenance, diagnostic, and repair service on all units covered by this contract in the facilities provided for this service, or in the field as required. Third party vendors may be utilized on a case by case basis and as approved by the City Contracting Officer.

7.1.1.1 The Contractor shall maintain vehicle and equipment listed in Technical Attachment B to meet standards; including scheduled and unscheduled maintenance.

7.1.1.1.1 Repair of vehicles damaged by accident, abuse and incident are the responsibility of the Contractor up to $1,000.00 per occurrence. All repair costs beyond this limit are to be approved by the City Contracting Officer. Contracting Officer is to be advised in advance of the commencement of any vehicle body repairs.

7.1.1.3 If a vehicle repair estimate exceeds the component repair limit, the Contractor shall submit the requirement to the Contracting Officer. The portion of the costs that exceeds the component repair

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4 limit shall be worked and paid in accordance with the over and above procedures outlined in this Contract. The repair cost will be authorized by the Contracting Officer and the Contractor prior to performing the work. VOC calculations stop when the City Representative receives the repair estimate and starts again when the Contracting Officer gives approval for the repair. If it is determined that the repair limit will not be exceeded, the VOC is calculated from the time the vehicle enters the shop.

7.1.1.4 Repair Parts.

7.1.1.4.1 The Contractor shall provide motor vehicle and equipment repair parts equal in quality to replacement parts supplied by the original equipment manufacturer.

7.1.1.4.2 Commercially purchased or Contractor rebuilt parts may be approved by the Contracting Officer on a case by case basis. Such parts must be of equal or superior quality of the original parts.

7.1.1.4.3 Used parts may be used only on an exception basis with Contracting Officer approval when other sources have been exhausted or when it is economically or chronologically advantageous to the City. Used parts include cannibalization of parts from City furnished vehicles.

7.1.1.4.4 Invoices for all parts purchased by the Contractor from any source shall be maintained for the duration of contract and options. The invoice and sales slip files shall be made available to the City upon request. Parts charged to individual vehicles shall be priced at Contractor's acquisition cost and sales slips will be attached to and filed with the work order.

7.1.1.5 Vehicle warranty work will be the responsibility of the Contractor. All warranty work that is out of commission and is not the fault of the Contractor will not be counted in VOC calculations.

Documentation of follow up actions shall be maintained and provided to the City every 10 days.

Scheduling, Vehicle Conveyance to and from warranty work is the responsibility of the Contractor.

7.1.1.6 Radio Installation, Maintenance and Repair.

7.1.1.6.1 The Contractor shall be responsible for coordinating the maintenance and repair of radio equipment with an approved vendor. These costs will be covered by the Contactor up to $1,000.00 per vehicle per occurrence.

7.1.1.6.2 The Contractor shall submit requests for the repair of radio equipment through the Contracting Officer.

7.1.1.6.3 The Contractor shall be responsible for repair and associated costs of Contractor caused damage to radio equipment.

7.1.1.7 Vehicle Accessory and Special Equipment. An item added to a vehicle to meet an operational requirement will be purchased by the vehicle using activity (requestor) and will be installed and maintained by the vehicle maintenance Contractor. The item will be transferred from one vehicle and installed on another vehicle upon receipt of an approved authorization. Examples of accessory and special equipment are spotlights, spare tire racks, mirrors, horns, lights, campers, cargo shells, hydraulic tail gates, towing hitches, winches, etc.

7.2 MINOR REPAIR. The Contractor shall:

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4 7.2.1 Provide a quick turnaround repair service for repairs estimated to take one half hour or less.

Repairs shall begin not later than 5 minutes after arrival of vehicle.

7.2.2 Operate a tire facility to provide repair, replacement and balancing of vehicle tires. Remove and reinstall mounted tires (includes unscheduled roadside service). Repair of flat tires will be by patching or patch/ plugging. Tire sealant is not to be utilized unless specifically authorized by the City on a case by case basis. Provide in contract dismount and disposal of orphan or cast off tire and rim assemblies.

7.3 ROAD CALLS. The Contractor shall provide onsite scheduled and unscheduled maintenance, diagnostics and repair for vehicles which because of design or immobility cannot be economically delivered to the vehicle maintenance facility.

7.3.1 Service calls to start, repair, or unlock vehicles that are disabled away from the shop area are the responsibility of the Contractor. Service calls shall be responded to immediately. Once Contractor is notified of a disabled vehicle, Contractor shall provide City staff with an estimated time for tow/repair service. Contractor shall provide this update within thirty (30) minutes of the original call for service.

Contractor shall make necessary arrangements for tow service or repair within one (1) hour from original time of service call. All service calls will be recorded. A service call control register using a consecutive numbering system will be maintained and these will be retained for the duration of the contract period.

7.3.2 AFTER HOURS/EMERGENCY SERVICE. Contractor shall provide an emergency contact telephone number for after hours and/or emergency service.

7.4 MAJOR REPAIR. Contractor is responsible for:

7.4.1 Repair or replacement of parts, assemblies, sub-assemblies, and components.

7.4.2 Fabrication or parts when required (weld, lathe work, etc.)

7.4.3 Glass replacement. The Contractor shall provide glass & mirror services, or have an approved third party vendor available as an on call basis. Glass shall be of an OEM approved type and tint. Where plastic film tint is utilized, the vendor will provide these services or an approved third party. Where units are fitted with Advanced Driver Safety Devices – those items shall be calibrated by an authorized vendor or the OEM dealer upon windshield replacement.

7.4.4 Body and Frame Repair (Major). Major or extensive body work shall be performed by a qualified body shop. The Contractor shall be responsible for arranging and managing the repairs of wrecked vehicles through an outside body shop. Before releasing a damaged or wrecked vehicle for repairs, the Contractor shall obtain three proposals on the repairs. Proposals shall include labor rates, and itemized cost for parts and labor. The Contractor shall submit the proposals to the Contracting Officer for approval to proceed. If the cost of repairing the unit exceeds its service value to the City, the Contracting Officer will review with the Contractor the cost-effectiveness of repairs versus replacement.

Invoices for major body work performed by an outside body shop will be accepted solely by the Contractor, who will be reimbursed by the City at cost.

7.4.5 Body Repair (Minor). Minor repair (under $1,000.00) on vehicle bodies, trim, decals, logos, glass replacement, mirror, Camera systems, painting, corrosion control and upholstery repair shall be accomplished as necessary to preserve safe operation and maintain the City image. Paint shall meet or exceed original equipment manufacturer's specifications.

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4 7.4.6 Painting and Marking. The Contractor is responsible to maintain the overall image of the City fleet. Decals, logos and wraps will be maintained and replaced as needed by the Contractor. A qualified body and paint shop will perform all painting of vehicles and corrosion control; however, complete vehicle/equipment painting to maintain cosmetic appearance shall be accomplished only when required and approved by the Contracting Officer. Paint shall meet or exceed original equipment manufacturers specifications. City logos, decals and wraps will be of premium quality and of design, color and size as approved by the City.

7.4.7 Upholstery Repair. Contractor is responsible for the repair and replacement of damaged, worn or threadbare upholstery, seating hardware and door panels. Material used in upholstery repair will meet or exceed original manufacturer's specifications and be of matching color. City Approved Seat Covers may be substituted upon special request.

7.4.8 Recalls, Technical Order modifications, service bulletins, and approved local modifications will, where applicable, be accomplished by the manufacturer (or designee). If not applicable, Contractor will perform same and will be reimbursed for parts and labor on an "over and above" basis. Vehicle Conveyance to and from manufacturer for the purposes of such items as described will be the responsibility of the Contractor.

7.4.9 Seasonal Equipment Repair. The Contractor shall establish a program to ensure seasonal equipment is fully serviceable at the start of the season. At the conclusion of the season, equipment to be stored shall be properly protected to include fuel stabilization and fogging along with any other storage preparations.

7.4.10 Corrosion Control. Corrosion control shall be accomplished by the Contractor. Early stages of corrosion are to be treated with a rust inhibitor or converter and paint sealed (e.g. SEM “rust mort”, CRC rust converter, etc.)

7.4.11 Delayed Maintenance Program. Contractor shall complete all delayed maintenance at the earliest possible date. As a minimum, it shall be completed on the next scheduled/unscheduled work order, not to exceed 180 calendar days from the last date the vehicle was seen for scheduled/unscheduled maintenance. If work consists of deferred parts and said parts are backordered for over 30 days, follow-up on parts will immediately be accomplished and documented. Follow-up shall be done every 5 working days thereafter and documentation provided to the City.

7.4.12 Provide Scheduled Maintenance and Service. The Contractor shall be responsible for the following:
a. Providing a comprehensive Preventive Maintenance Program. b. Adherence to the vehicle / equipment manufacturer’s scheduled maintenance guidelines c.CNG Annual inspection
d.Smog inspections will be performed in accordance with California State Regulations (biannual program).
e.HD/IM- Diesel powered vehicles requiring mandated HD/IM testing shall be performed by the Contractor.
f.BIT - Contractor will comply with the state's "Biennial Inspection of Terminals" (BIT) Program by performing the appropriate inspections and keeping proper maintenance and driver's records. g.Aerial Devices - Contractor shall perform or provide through a certified third party provider annual inspections and dielectric testing for aerial type equipment. The Contractor shall assure the safety inspection and preventive maintenance programs are accomplished during the month it is scheduled.
h.Other Regulatory Compliance

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4 7.4.13 Shipment and Storage of Vehicles. The Contractor shall process vehicles as directed by the City.

Contractor employees shall only park in the city’s employee lot or on street. Employees are not permitted to operate their vehicles within the Corporation Yard without City approval.

7.4.14 Receiving New Vehicles and Equipment. The Contracting Officer shall coordinate receipt and delivery of all new fleet vehicles and equipment through the Contractor and the City. The Contractor shall prepare and maintain files for all new vehicles added to the fleet.

7.4.15 Salvage Vehicles and Equipment. Units scheduled for salvage will be removed from the Contractor's active files. The Contractor shall assist the City in determining when fleet vehicles and equipment have reached their optimum period of retention. Contractor is responsible for decommissioning of Salvage units.

7.4.16 Decommissioning Vehicles and Equipment. The Contractor is responsible and shall include in the Fixed Annual Target Price for the decommissioning of City owned vehicles in preparation for auction sale or disposal. This includes removing all decals, license plates and, City owned equipment such as two-way radios, specialty safety lighting and equipment not originally equipped when vehicle was placed into service. Vehicles are to be cleaned and washed prior to dispatch to auction. The City may, at their discretion, send some specialty vehicles to a third party vendor for specialty equipment decommissioning. A typical example may include patrol car decommissioning. Decommissioning shall be performed in a timely manner and items to be redeployed are to be stored onsite until they can be reinstalled.

7.5 ADMINISTRATION.

7.5.1 The Contractor shall provide information concerning the maintenance status (for example, awaiting parts, estimated time in commission, etc.) of vehicles in the vehicle maintenance facility upon request. Contractor will provide functionality for a continuously updated, remotely viewable heads-up display type system to report to each end user department the current vehicle status.

7.5.2 The Contractor shall maintain a log to reflect the current status of manufacturer recalls, technical service bulletins and local modifications. Contractor is responsible for scheduling, conveyance and completion of recalls, technical service bulletins and local modifications.

7.5.3 The Contractor shall maintain a work order control register for the duration of the contract and shall issue all work order numbers. A consecutive numbering system shall be used. Work order system must reflect the City vehicle numbering system, vehicle year, make, model, assigned department along with date stamps for vehicle time in and completion along with a technician work hours log. This system is to be accessible to the City and shall be delivered to the city in digital form upon conclusion of the contract.

7.5.4 The Contractor shall maintain historical information of repair actions on each vehicle utilizing a City approved Fleet Maintenance Software System. The City is to have access to the Fleet Management Software and this historical data is to be supplied to the city in digital form upon the conclusion of the contract.

7.5.5 The Contractor shall comply with documentation requirements for vehicle accident/abuse in accordance with City requirements.

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4 7.5.6 The Contractor shall attend local meetings pertaining to vehicle maintenance, and safety as required by the Contracting Officer or City Representative.

7.5.7 The Contractor shall provide records, reports, and analysis as specified in the reports section.

Analysis will consist of a written in-depth assessment of all collected data to verbally explain what, when, why, and how actions occurred and recommendations to resolve any deficient area.

7.5.8 When requested, the Contractor shall prepare and submit budget estimates for City provided supplies (fuel, parts, supplies etc.) to the Contracting Officer.

7.5.9 Maintenance Manuals and Shop Manuals. The City has many of the maintenance manuals which will be turned over to the Contractor at the start of the contract period; however, it shall remain the Contractor's responsibility to obtain missing manuals and documents, and to update maintenance/repair manuals regularly. All Maintenance manuals shall become property of the City upon completion of the contract.

7.5.10 Technical Advisor. The Contractor shall act in the capacity of technical advisor to the City regarding the acquisition of new vehicles and equipment and shall provide historical maintenance data on proposed equipment as may be useful in determining selection of vehicles.

7.5.11 Correspondence. The Contractor shall prepare Vehicle Maintenance and Analysis related correspondence. Correspondence shall consist of replies, requests for assistance, suggestions (including evaluations), and other routine correspondence. Correspondence shall be answered in a timely manner.

7.6 POLICING THE GROUNDS. The Contractor shall be responsible for keeping the grounds around the facilities and interior shop areas, which the Contractor occupies, free of debris and litter. Vehicles under the Contractor’s control shall be safely parked, secured, locked and keys secured in a lock box inside the Fleet Garage.

7.7 VEHICLE ABUSE. The Contractor shall document areas of vehicle abuse, and furnish evidence of breakdown or failure due to suspected abuse to the Contracting Officer. The Contracting Officer will assess the evidence and may rule not to penalize the Contractor and to address the repair through Vehicle Rehabilitation.

7.8 ACCIDENTS. The Contractor shall record and report promptly to the Contracting Officer all available facts related to each instance of damage to City vehicles while being operated by Contractor personnel, and each instance of injury to either Contractor or City personnel. All accidents involving City of San Mateo vehicles must be reported and documented in accordance with the City's Accidents Involving City Vehicles policy.

7.9 EQUIPMENT MAINTENANCE. The Contractor is responsible for maintenance and repair of the City furnished equipment listed in Technical Attachment C.

7.9.1 Minor Maintenance. Shall include cleaning, adjusting, ordinary lubrications, tightening of nuts and bolts, and preventive maintenance actions recommended by the equipment manufacturer and the City.

7.9.2 Major Maintenance. Shall include repair of inoperable equipment, replacing components, parts, filters, hinges, gaskets, compressors, etc.

7.9.3 Repair Limits. The Contractor is responsible for individual unit repair costs up to $1,000 per

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4 component, per occurrence to include parts, consumables, and associated labor (industry standard labor guide – i.e. Mitchell, ALLDATA.) At Contract agreed labor rate - If no labor guide is available for the repair, Contractor will consult City Fleet manager. Repair costs to include Diagnostics, Preventive Maintenance, repairs, glass, keys, key FOBS, breakdowns / towing, body damage, or abuse. Body damage repaired in a single event will be considered a single occurrence in which the $1,000 will function as a deductible. Rework required due to faulty diagnostics, repair or parts shall be the sole responsibility of the contractor.

7.9.4 Repairs on Rolling Stock. The Contractor shall perform all maintenance, diagnostics and repairs on rolling stock as required. Routine repairs include, but are not limited to hitches, wheels, bearings, seals, safety lights and electrical wiring harnesses.

7.9.5 Repairs to Stationary Equipment. The Contractor shall perform all maintenance, diagnostics, and repairs on stationary equipment (i.e., standby generators).

7.9.6 Vehicle Master Key Library. The Contractor shall maintain spare Keys & Key FOBS for all City vehicles. The City has an existing inventory and provides duplicates upon new vehicle acquisition. The Contractor will provide replacement keys and FOBs in the event of end user or Contractor loss. The Contractor shall provide secure locking key storage and regularly complete an inventory of Keys & FOBs ensuring every unit has a spare set in the master Key Library. Costs of maintaining the Keys and FOBs shall be covered under BASE contract.

7.9.7 Vehicle On-Site Charging. On occasion it may be necessary for EV units to be charged, or vehicles repositioned within the Corp Yard charging infrastructure. The Contractor is uniquely positioned to access such units and may be called upon to act as a liaison for these needs as they arise. Contractor agrees to provide those services at no charge to the City.

7.9.8 Interim Maintenance Items. The Contractor shall provide support for interim maintenance items.

Interim maintenance items are periodic tasks that occur outside of a typical PM cycle. These items often include services such as- tire inflation, wiper blade replacement, grease points, sweeper broom replacement, lawn mower blade sharpening or other services. The Contractor will provide a convenient means to coordinate these “on-demand” services and prioritize technician support to ensure these tasks are completed in a timely manner.

7.9.9 BATTERY SHOP. Operate a battery shop to provide replacement batteries and battery services for all equipment. Establish a baseline battery inventory and ensure batteries are charged and ready for installation.

7.9.10 TOWING, RECOVERY AND ROADSIDE ASSISTANCE The Contractor will be responsible for providing towing/recovery of disabled vehicles/equipment. Towing to also include conveyance of a vehicle to and from a third-party vendor as needed. Roadside assistance to include: flat tires replacement, lock out / lost keys, “dead” battery replacement or other roadside mechanical repair.

7.10 MOBILITY DEPLOYMENT, DISASTER PREPAREDNESS AND OTHER CONTINGENCY/ EXERCISES.

7.10.1 Upon notification, the Contractor shall provide vehicle maintenance to support activation or exercise of contingency operations or plans.

7.10.2 The Contractor shall appoint a manager/supervisor to represent Fleet Services at the Emergency Operations Center (Logistics Section) during emergency drills/activation.

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4 7.10.3 The Contractor shall provide vehicle maintenance 24 hours a day, seven days a week, if required, for the duration of the contingency.

7.10.4 The Contractor shall use the priorities established by the City if the activation or exercise of multiple contingency plans generates conflicting support requirements. If the Contractor cannot accomplish a routine workload due to activation or exercise or any contingency plan, reductions in payment, based upon the performance requirements, summary shall not be made for non-support of the lower priorities.

7.10.5 The Contractor shall submit, on contract start date, a plan for providing the maximum required support. The plan must be approved by the Contracting Officer.

7.11 EMERGENCY OPERATIONS.

7.11.1 Upon notification by the Contracting Officer, the Contractor shall provide vehicle maintenance diagnostic, and repair to support national commitments, up to and including a declared war.

7.11.2 The Contractor shall appoint a manager/supervisor to represent Fleet Services at the Emergency Operations Center (Logistics Section) during emergency drills/activation.

7.11.3 The Contractor shall provide vehicle maintenance 24 hours a day, seven days a week, as required, for the duration of the emergency. The Contracting Officer shall advise the Contractor verbally of the required level of effort and follow up with a written change to the contract. A supplemental agreement shall be negotiated to compensate for services over and above the normal workload, pursuant to the "changes" clause of this contract.

SECTION 8 INDUSTRIAL SAFETY REQUIREMENTS

8.1 GENERAL REQUIREMENTS.

8.1.1 Mishap Reporting and Investigation:

8.1.1.1 The Contractor shall report within one hour to the Contracting Officer all pertinent facts relating to each case of damage to City property or lost time injury.

8.1.1.2 If the City decides to investigate the mishap, the Contractor shall cooperate fully and assist the City personnel until the investigation is completed.

8.1.2 The Contractor shall include a clause in all subcontracts to require sub-contractors to comply with the safety provisions of this section as applicable.

8.1.3 The Contractor shall submit to the Contracting Officer and the Safety Coordinator a detailed safety program and continuous safety training plan which will be followed during the life of the Contract. The Contractor will not deviate from the safety provisions of this section or make changes to the safety

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4 program plan without prior review and approval by the Contracting Officer and the Safety Coordinator.

8.1.4 Contractor will ensure that an inspection of all shop areas is accomplished daily. These inspections will be documented as to findings and corrective actions taken and monthly copies supplied to the Contracting Officer.

8.1.5 The Contractor will assign the Contract Manger to participate as a member of the City Service Center Safety Committee which meets monthly.

8.1.5 The Contractor will provide shop employees with weekly safety training on relevant training topics.

Training documentation to be supplied to the Contracting Officer monthly.

8.1.6 The Contractor will ensure shop employees are properly trained/licensed to operate vehicles and equipment assigned for repair. This shall include Forklift, bucket truck, CDL’s and other license or certifications as applicable.

8.2 SPECIFIC REQUIREMENTS.

8.2.1 The Contractor shall load, handle, and transport City property in such a way as to prevent damage to the City property.

8.2.2 City property shall be stored in such a manner as to prevent damage to the City property.

8.2.2.1 Broken or damaged pallets shall not be used for storage of City property.

8.2.2.2 The Contractor shall provide sufficient aisles between storage areas for any material handling equipment that may be required. Aisles shall be kept clean and dry at all times.

8.2.3 The Contractor shall inspect, maintain, and operate hoists, cranes, slings, and other lifting equipment in a safe manner to prevent damage to City property.

8.2.3.1 All lifting devices and equipment shall be visually inspected by the operator before each use or daily. On a periodic basis (annually) a documented inspection and weight test will be made on all hoists, cranes, slings, and other lifting equipment. (IAW ANSI B30 Series Standards). Vehicles should not remain on lifts or lifting devices for extended periods of time or overnight.

8.2.3.2 Slings shall not be used when tied in knots or when damaged.

8.2.3.3 All jacks shall have a sufficient rating to lift and sustain the load.

8.2.4 The Contractor shall provide equipment specific training and certifications for equipment utilized by Contractor’s employees to include but not limited to – vehicle lifting devices, forklifts, aerial devices etc.

8.2.4 The Contractor shall maintain a workplace chemical list, maintain an OSHA Material Safety Data Sheet file, and advise and train his employees concerned of the chemical hazards to which they are exposed. The informed handling and controlled disposal of hazardous and toxic materials shall be the responsibility of the Contractor.

Contract to supply a digital copy of these files to the City Fleet Manager on a quarterly basis, on City

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8.2.5 Flammable liquids in the vicinity of City property shall be handled and stored in a safe manner as per regulations to include:

8.2.5.1 Precautions shall be taken to prevent the ignition of flammable vapors.

8.2.5.2 No smoking, spark producing equipment or open flames shall be permitted in any flammable liquid storage area. (smoking is not permitted on any city property per city ordinance).

8.2.5.3 Proper handling of spills and approved disposal of waste material.

8.2.6 Spray applications using flammable and combustible materials in the vicinity of City property shall be done in accordance Cal OSHA and the following:

8.2.6.1 All spray operations shall be done in a power ventilated spray booth or spray room.

8.2.6.2 All electrical service and electrical equipment within the spray booth or spray room shall be explosion proof.

8.2.6.3 No spark-producing equipment or open flames shall be permitted within ten feet of any opening in a spray booth or room.

8.2.6.4 Portable electric lamps shall not be used in any spray area during spray operations.

8.2.5 Proper PPE shall be worn by all personnel in the vicinity.

8.2.7 Compressed gas from cylinders in the vicinity of City property shall be handled and stored in accordance with Cal OSHA and the following:

8.2.7.1 Compressed gas from cylinders shall not be used without reducing the pressure through a regulator.

8.2.7.2 When cylinders are not in use, the valve shall be closed tightly.

8.2.7.3 During use or storage, cylinders shall be restrained to prevent accidental upsetting or falling.

8.2.7.4 Smoking is not permitted on any city owned property. "NO SMOKING" signs shall be posted.

8.2.7.5 Oxidizing gases shall not be stored within 50 feet of flammable liquids unless separated by a wall with one-hour fire rating.

8.2.7.6 All compressed gas cylinders shall be labeled as to contents.

8.2.7.7 Valve protector caps shall be installed on all compressed gas bottles in storage.

8.2.8 No smoking, spark producing equipment or open flames shall be allowed in the battery shop.

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4 8.2.9 Only qualified persons shall be authorized to perform welding operations and a qualified observer is to be deployed for the duration of welding operation.

8.2.10 Welding operations shall not be permitted where flammable materials, gases or liquids are present.

8.2.11 All precautions shall be taken during vehicle fueling to prevent the possibility of spillage, fire or explosions.

8.2.11.1 Vehicles shall not be fueled near open flames or spark producing devices.

8.2.11.2 Vehicles shall not be fueled indoors and personnel shall not smoke during fueling operations.

8.2.11.3 Vehicles being supplied with fuel shall have the ignition off and the parking brake applied.

8.2.11.4 During fueling, the nozzle of the fuel hose shall be kept in constant contact with the intake pipe of the vehicle's fuel tank.

8.2.11.5 Spilled fuel is to be handled in accordance with regulations and properly disposed.

8.2.11.6 EV Charging – Precautions shall be taken in the charging of EV vehicles. Any cords, connectors, ports or devices found to be out of compliance must be tagged out and the Contracting Officer notified.

8.2.11.7 EV Charging Cords- EV charging cords shall be placed in a manner as not to pose a tripping hazard. Upon completion of vehicle charging cords are to be properly stored on the Charging Device and the port placed in the assigned storage port.

8.2.12 Shop machinery will be inspected daily by shop personnel, and periodically maintained.

8.2.13 Shop machinery found to be out of compliance shall be locked out / tagged out and repairs scheduled. Contracting Officer to be notified.

8.2.13 Good housekeeping is essential to safe motor vehicle shop operations.

8.2.13.1 Shop floors will be kept clean and free of oil, grease, water, gasoline, or other hazardous and slippery materials. Fuel and oil spills or other hazardous waste shall be promptly cleaned up and disposed of in an appropriate manner. Contractor to supply hazardous waste spill kits.

8.2.13.2 Drip pans under vehicles and mechanized equipment is essential.

8.2.13.3 Suitable containers with lids shall be strategically located throughout the work area for easy disposal of oil and grease soaked rags. All containers for this purpose shall meet OSHA requirements and be UL listed. Trash and oily rag receptacles shall be emptied daily.

8.2.13.3 Vehicle Storage Units left in the shop for extended periods or overnight shall be confirmed to be powered off or electrically isolated. Vehicles should not remain for extended periods or overnight on lifts or jackstands. Should the need arise, units remaining on a lift or

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4 jackstands are to have secondary securement. Units without oil, or other vital fluids, waiting for parts or serious repair concerns are to have keys removed along with Out of Service tags, cones or steering wheel covers to ensure unit is not operated. These items are to be supplied by the Contractor.

8.2.14 Shop personnel will wear appropriate personal protective equipment, to include but not limited to high visibility Jackets, protective eyewear, gloves, bump/hardhats, slip resistant steel / composite toe boots, fall protection, as required when performing any hazardous maintenance operation. PPE requirements will adhere to Cal OSHA Regulations and this equipment will be provided by the Contractor.

8.2.15 Chassis and axle supports will be used during vehicle maintenance. No makeshift devices will be used for chassis and axle supports.

8.2.16 Tire Mounting. Shop personnel will use mechanical devices, such as dollies, to help them mount or remove large, heavy tires.

8.2.16.1 Personnel will use guard cages when inflating heavy truck tires.

8.2.16.2 Personnel will use extreme caution when inflating tires or large trucks or heavy construction equipment.

8.2.17 Jacks. The rated load will be legibly and permanently marked in a prominent location on the jack by casting, stamping, or other suitable means (jacks supplied with the vehicles as standard tool equipment are excluded). The operator will make sure that the jack used has a rating sufficient to lift and sustain the load. Jacks will be inspected, tested, and documented in compliance with ANSI B30.1 American National Standard Safety Code for jacks, or an applicable technical order. After a vehicle has been raised by a jack, it will be securely blocked to prevent falling. At no time will a Technician place any part of their bodies directly under the wheels of a jacked vehicle.

8.2.18 Cables and Cords. Power cables and cords on portable electrical equipment will be made of heavy armored rubber or similar material, to prevent damage from oil or grease, and by chafing. Power cables and cords on all portable and fixed electrically operated equipment will be of the three-wire construction with a plug equipped with a ground lug. (Note: this requirement does not apply to double insulated tools.) Cables will be constructed to provide automatic grounding of equipment through integral conductors. Any cords or cables found to be worn or damaged must be removed from service and tagged out of service. Technicians utilizing portable electrical tools and lights will not string cables carelessly across shop floors.

8.2.19 Work area Isolation Areas where vehicle repair work is being performed, or vehicles are actively lifted or jacked shall have controlled access by means of cordoning off the area, closing of the garage door or safety chain across the garage door opening or other similar means.

8.2.20 Roadside Safety On the occasion of a roadside break down / repair, employees must have proper Cal OSHA approved PPE (such as High Visibility clothing etc.) additionally the work zone must be properly marked with safety triangles, flares and/or safety cones. Vehicle should be moved to the safest possible location for roadside service or vehicle recovery. Best practices to be applied. Local authorities to be notified as necessary and in a timely manner to ensure safety at the scene.

8.2.21 Fire Prevention. The Contractor will follow all local fire laws, regulations, and standards to

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4 ensure that damage does not occur to City property or personnel.

8.2.22 Ventilation The Contractor will ensure proper ventilation of the shop area and avoid operating Internal Combustion Vehicles within the confines of the shop area. All safety measures shall be taken to avoid buildup of fumes, dust and airborne debris in the shop vicinity or into adjacent buildings.

SECTION 9 DEFINITIONS
91 Add On Oil Oil added to a vehicle/equipment between oil changes.

9.2. ASI (Annual Safety Inspection) Maintenance performed annually; in accordance with state inspection requirements including LOF.

9.3 ASE Automotive Service Excellence is an automotive institute that certifies automotive technicians in an array of automotive vocations, of these certifications ASE Master Technician is the pinnacle

9.4 BIT Biennial Inspection of Terminals A terminal Inspection with a requirement to inspect every 90 days and maintain specific files for vehicles in excess of 10,000 lbs.

9.5 Captive Shop A vehicle maintenance facility dedicated to the sole service of a single client’s fleet

9.6 CNG Compressed Natural Gas A vehicle fuel that is comprised primarily of Methane and stored under pressure. Vehicles utilizing this fuel require specially certified technicians to maintain these systems.

9.6 Component An individual part or piece of a larger system (i.e. Alternator, Starter, Fuel Pump)

9.7 Component Repair Limit. The Component Repair Limit shall be $1,000.00 per component, per occurrence, per vehicle. All repair costs beyond this limit are the burden of the City and to be approved by the City Contracting Officer in advance of repair. Examples of typical Components are – Battery, Alternator, Water Pump, Catalytic Converter, Radiator, Brake Master Cylinder etc.

Component Repair Limit will include diagnostics, labor (approved book time – Mitchel / ALLDATA etc.) component part, ancillary items and / or fluids.

Examples of a Typical Component repair: Failed Alternator- Alternator diag, R&R labor- Alternator (part) along with replacement of the alternator belt (ancillary) in this example: should a failed battery be found, the battery is a separate component, and not part of the Alternator Component Repair Limit.

Bodywork in a single event shall be considered a single Component Repair with a limit of $1,000.00

9.8 Contingency Operation. Unanticipated increase or decrease of the level of service required.

9.9 Contractor. A person or entity submitting a proposal under this RFP.

9.10 Contractor Assigned Vehicles. City vehicles are defined as pooled vehicles which are operated and controlled primarily by Contractor personnel.

9.11 Contract Manager A person responsible for the performance of the work proposed under this RFP.

9.12 Contracting Officer. A City person responsible for surveillance of Contractor performance.

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4 9.13 Contracting Officer Approval Authorization to proceed with a repair, accept charges or otherwise grant permission

9.14 Defective Service. A unit of service which contains one or more defects, or nonconformance with specified requirements.

9.15 Delayed Maintenance. Maintenance that can be delayed without damage to the vehicle/equipment or compromise safety standards or prevents the vehicle/equipment from being used for its designed function.

9.16 DTC Diagnostic Trouble Codes a system by which vehicle conditions are stored within the vehicle’s on-board computer

9.17 Fleet Management Information System). Computer Software utilized to provide computerized record of Fleet operations.

9.18 Joint Serviceability Inspection. Inspection of vehicles, equipment, facilities by City and Contractor representation to inventory and determine their serviceability and physical condition.

9.19 Key Performance Indicator (KPI) KPI’s are a metric utilized to evaluate performance and adherence to contract requirements.

9.20 LOF (Lube, Oil and Filter). Maintenance performed periodically as specified by the manufacturer

9.21 Major Repair. Repair that is generally done in fixed workshops. It includes, but is not limited to, the following type of work: (1) repairing and replacing parts, assemblies, subassemblies and components; (2) fabrication of parts, when required (weld, lathe work, etc.) (3) body and structural repairs; (4) painting; (5) upholstery repairs; (6) scheduled inspections; (7) modification; and (8) corrosion control.

9.22 Minor Repair. Minor repair is the changing of parts such as mirrors, radiator and gas caps, windshield wiper arms and blades, fuses, lightbulbs, fan belts, etc. This includes minor adjustments that can be finished in one half hour or less. These repairs can be completed in or by the diagnostic and quality assurance section, general purpose repair shop, or any combination of them. As a rule, the operator stays with the vehicle while these repairs are done.

9.23 Monitoring. Those actions taken by a Contractor to control the performance of services so that they meet the requirements of the Scope of Work section.

9.24 On Board Data Vehicle information stored with in a vehicle’s on-board computer. Typical Data may include Diagnostic Trouble Codes, vehicle mileage, fuel level and battery state of charge.

9.25 Operational Contract Start Date. The date the Contractor assumes all responsibility for vehicle maintenance in accordance with the Scope of Work section.

9.26 Original Equipment Manufacturer. The manufacturer of the complete production vehicle, commercial or military, whether assembled from parts of its own manufacture or from parts or components furnished by other manufacturers or a combination of both.

9.27 Original Parts Manufacturer. A manufacturer of automotive parts supplied direct to the original

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4 equipment manufacturer for incorporation into the production vehicle and/or resale as replacement parts. The original equipment manufacturer is the actual parts manufacturer for those parts produced solely by it.

9.28 Out of Contract Costs Costs for maintenance, diagnostics, repair or installation that fall outside the scope of the contract.

9.29 Performance Requirement Indicator The maximum limit of acceptable downtime that is established per fleet vehicle classification.

9.30 Personal Protective Equipment. Personal protective equipment, commonly referred to as "PPE", is equipment worn to minimize exposure to hazards that cause serious workplace injuries and illnesses.

9.31 Priority Repair. Repair required of emergency vehicles or other vehicles when further loss of vehicles will degrade mission support.

9.32 Quality Assurance. Those actions taken by the City to assure services meet the requirements in the Scope of Work Section.

9.33 Rebuilt / Remanufactured Parts. Used parts that have been dismantled and reconstructed as necessary; all internal and external parts are cleaned and free from rust and corrosion; all impaired, defective, or substantially worn parts are restored to a sound condition or replaced with new, rebuilt, or unimpaired used parts; all missing parts are replaced with new, rebuilt, or unimpaired used parts; and such other operations are performed as necessary to put the product in sound working condition. Must meet or exceed original manufacturer's specification.

9.34 Recalibration A process by which a system is reset or calibrated to new or updated conditions

9.35 Special Marking. Any marking authorized of special significance to a particular user essential to effective communication within that unit.

9.36 Telematics A system by which vehicle on board data may be recorded and transmitted.

9.37 TPMS Tire Pressure Monitoring System A system that can alert a driver to an under inflated tire

9.38 Vehicle. An item of equipment mounted on wheels, tracks, runners, rollers or any combination of them which is designed for highway and/or land operation which derive power from a self-contained power unit or is designed to be towed by and/or used in conjunction with such self-propelled equipment.

9.39 Vehicle Accessory and Special Equipment. An item added to a vehicle to meet an operational requirement. The item shall be transferred from one vehicle and installed on another vehicle when authorized by the Contracting Officer. Examples of accessory and special equipment are spotlights, spare tire racks, mirrors, horns, coolant/oil/battery heaters, lights, campers, cargo shells, hydraulic tail gates, tow hitches, winches, etc.

9.40 VDP (Vehicle Deadlined for Parts). A vehicle placed in an out of commission status due to the nonavailability of parts.

9.41 VDP (Vehicle Deadlined for Repair) A vehicle placed in an out of commission status for repair

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4 9.42 VOC (Vehicle Out of Commission) The total time a vehicle is out of commission for repair and parts (VDR plus VDP).

SECTION 10 PERFORMANCE REQUIREMENTS INDICATORS

10.0 GENERAL The City intends to establish performance standards and utilize specific Key Point Indicators (KPI’s) to monitor Contractor performance. These KPI’s may include Safety, Regulatory Compliance, Technician Certification Compliance, Staffing, Fleet Availability, Vehicle Down Time, PM Currency, Shop productivity, rebound / rework statistics, and other metrics the City deems relevant to performance under this agreement. These standards will factor as “Key Performance Indicators” in correlation with “Performance Based Compensation” award

10.0.1 FLEET PERFORMANCE STANDARDS:

Performance standards have been established for each class of vehicle or equipment based on availability. Availability will be calculated by multiplying the number of units X hour basis X 30 days. The results will be multiplied by the percentage of acceptable downtime in order to establish the allowable hours of downtime. Exceeding the allowable downtime limits will cause the deduction to be made from the next monthly payment.

10.0.2 Downtime Calculation: Downtime shall start at the time the vehicle or equipment is delivered to the Contractor for service. “Requests for Services slips” will be date and timed stamped at the time the vehicle is left for service.

10.0.3 Acceptable levels of down time and deductions: The following downtimes are acceptable for each Class. The percentage deduction will be made from the monthly flat fee should the downtime limits be exceeded.

Fleet Class Downtime
%
Hour
Basis
Deduction (% of
monthly invoice)
Police Patrol Vehicles 2% 24 Hr 2%
Emergency or Essential Priority Units 2% 24 Hr 2%
Public Works Sweepers 8% 16 Hr 2%
VacCons 4% 16 Hr 2%
Field Mowers 4% 16 Hr 1%
Utility Trucks 4% 16 Hr 1%
All Other Classes 4% 8 Hr 1%

10.0.4 No single vehicle or piece of equipment shall be out of service for more than seven calendar days. After this period, should the City need to rent a substitute vehicle or piece of equipment, the Contractor shall reimburse the City for the resulting rental charges. Contractor may petition the contracting officer to exonerate payment of rental costs when documented evidence demonstrates the repair was impossible due to conditions outside the Contractor’s control.

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4 10.0.5 Key Performance Indicators shall include the following KPI list with a total obtainable score of 100 points. Contractor shall provide documentation for each KPI monthly and will supply a detailed report at each quarterly meeting for consideration of PBC distribution. KPI points award will be taken into consideration when calculating the quarterly Performance Based Compensation distribution.

KPI Scope Points
Safety KPI Safety Record, Lost time incident report, Safety Training Log 10 Staffing KPI 1 Manager, 1 Shop Lead, 2 Techs (Minimum Staffing - Full- time employees) 10
Productivity KPI Total Shop hours / Service Production hours 10 Certification / License KPI CNG Cert., ASE Master, ASE Techs, Commercial Drivers licensed Techs, etc. 20
Regulatory Compliance KPI Compliance with regulatory requirements BAR, BIT, CARB etc. 10
PM Currency KPI PM Currency Percentage MTD (Overdue/Current) 20 Fleet Availability (Up-Time) Availability by hours, percentage MTD 10 Rework Report Work Order report MTD Rework/Completed WO 5 Proactive Communications KPI
Proactive, timely updates of vehicle status, location, issues, reporting & requests 5
Total Possible KPI Points to Award 100

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4 TECHNICAL ATTACHMENT A - FACILITIES AND WORK AREA LAYOUT

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4 TECHNICAL ATTACHMENT B - VEHICLE MASTER LIST
List is subject to change.

Year Make Model Count
1957 PLYMOUTH BELVEDERE 1
1976 13' BOAT BT2 1998 CALKIN BOAT & TRAILER 1
1989 BOBCAT TRENCH3023 1
1991 ZIEMA 1150-TRAILER FOR S20 CASE PAVER 1
1998 FORD F800 1
1998 JHNDR T6A60-B Pump 1
1999 BOSTON WHL BOAT 1
1999 FORD EAGLE RV 1
1999 HAULMARK TRAILER 1
2000 FORD E250 VAN 1
2000 FORD F350 1
2000 FORD RANGER 2
2000 JOHN DEERE Aux Engine Schwarze Street Sweeper 3
2001 CARRIER BGTX 1
2001 FORD F350SUPER 1
2001 FORD GRUMMAN 1
2001 HAULMARK Cargo 1
2001 YALEX FORKLIFT 1
2002 FORD EXCURSION 1
2002 FORD F350 1
2002 HAULMARK Cargo 1
2002 ORLADI TRAILER 1
2004 CRSN SWAT TRAILER 1
2004 VOLVO MQ Power 400 1
2005 FORD RANGER 1
2005 FORD TAURUS 1
2005 TOYOTA PRIUS 2
2006 FORD F150 1
2006 SCHWARZE STREET SWEEPER 1
2006 TORO GROUNDSMASTER 580D 1
2006 TORO Mower 1
2006 UTILITY TRAILER BGTEX 1
2007 FORD EXPEDITION 1
2007 FORD F150 2
2007 FORD F350 2
2007 FORD F350SUPER 2
2007 GORMAN RUPP TRAILERED PORTABLE 6"Pump 1
2007 ISUZU NPR LCF-Irrigation Truck 1
2008 CASE 580M-BACK-HOE 1
2008 FORD F350 7
2008 FORD F-650 RODDER 1

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4 2008 FORD RANGER 2
2008 FORD SPORT TRAC 1
2008 FORD TAURUS 1
2008 JOHN DEERE 542/5625 TRACTOR 1
2008 ODB LTC600 Leaf Vacuum 1
2008 RU2 SYSTEMS RU2 SYSTEMS SMART 850 RADAR TRAILER 1
2008 TOYOTA PRIUS 6
2009 FORD E-150 VAN 2
2009 FORD F650 -CRANE 1
2009 FORD RANGER 3
2009 INTER WORKSTAR-SEWER FLUSHER 1
2009 JACOBSEN H683 TRAILER 1
2009 NISSAN FORKLIFT 1
2009 VAC-CON Aux Engine VacCon 1
2009 WELLS CARGO CONFINED SPACE TRAILER TMT104 1
2011 TORO GROUNDSMASTER 360 1
2012 FORD E350 VAN PASSENGER VAN 1
2012 FORD EXPLORER-INTERCEPTOR 1
2012 FORD F250 1
2012 KIA SORENTO 1
2013 FORD ESCAPE 1
2013 FORD TAURUS 1
2013 JOHN DEERE 5075M TRACTOR 1
2013 TORO GROUNDSMASTER 5910 1
2013 TORO PRO CORE 648 AERATOR 1
2014 Aux Engine Aux Engine AUX VacCon 2
2014 FORD EXPLORER-INTERCEPTOR 2
2014 FORD FUSION HYBRID SE 5
2014 FORD TAURUS 4
2014 FREIGHTLINER VAC-CON 2
2014 TOYOTA TACOMA 1
2015 CLARK 9,000 LBMODEL C45 PNEUMATIC FORKLIFT 1
2015 CHEVROLET IMPALA 1
2015 FORD ESCAPE S 1
2015 FORD EXPLORER-INTERCEPTOR 13
2015 GEM GEM EL HD ELECTRIC UTILITY 1
2015 ISUZU Loadmaster Trash Truck 1
2015 JOHN DEERE 4066M UTILITY TRACTOR W/LOADER 1
2015 KUBOTA BX1870-1N TRACTOR 1
2015 TOYOTA TACOMA 9
2016 CASE DV23 Compactor-Roller 1
2016 CLUB CAR CARRYALL 500 ELECTRIC UTILITY 4
2016 FORD EDGE SE 1
2016 FORD F150 2
2016 FORD TRANSIT CONNECT XL CARGO VAN 1

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4 2016 MULTIQUIP MQ POWER 125 KVA WHISPERWATT GENERTOR 1 2016 PACIFIC UTILITY HARBOR PATROL BOAT TRAILER 1
2016 TORO GROUND MASTER 2
2016 TORO GTX WORKMAN CART 1
2017 ALCOM LLC MISSION EQ-TILT TRAILER 2
2017 FORD F550 1
2017 FORD EXPLORER-INTERCEPTOR 14
2017 FORD F350 5
2017 FORD F350 UTILITY TRUCK WITH DUMP 9
2017 FORD F550 SST40-EIH (Bucket Truck) 1
2017 FORD F550 STAKE BED TRUCK 1
2017 FORD TRANSIT CONNECT XL CARGO VAN 1
2017 FORD E350 TRANSIT VAN 1
2017 KUSTOM -AMERICAN SMART VMS I MESSAGE BOARD TRAILER 3 2017 MERCURY Aux Engine - 90 HP 4 OUTBOARD ENGINE 1
2017 MULTIQUIP MQ POWER 125 KVA WHISPERWATT GENERTOR 2
2017 RU2 SYSTEMS RU2 FAST-870 SPEED RADAR TRAILER 2
2017 TOYOTA TACOMA 1
2018 CHEVROLET EQUINOX 1
2018 FORD F150 1
2018 LAMAR EQ-TILT TRAILER 2
2018 PETERBILT SCHWARZE STREET SWEEPER 2
2018 TOYOTA TACOMA 1
2019 BMW BMW850 GS-P POLICE MOTORCYLE 4
2019 BOBCAT T595 T4 TRACK LOADER 2
2019 FORD EXPEDITION 1
2019 FORD F150 1
2019 FORD T150 TRANSITVAN 2
2019 JEEP LATITUDE 2
2019 KENDON POLICE MOTORCYCLE TRAILER 1
2019 NISSAN FRONTIER 4X4 1
2019 TOWMASTER T-16DT BOBCAT TRAILER 1
2019 TOYOTA RAV4 HYBRID 7
2019 TOYOTA TACOMA 1
2019 WANCO WTSV VERTIAL ARROW BOARD 1
2020 CASE 580SN BACK-HOE 2
2020 CHEVROLET EQUINOX LE 1
2020 FORD EXPLORER-INTERCEPTOR 7
2020 FORD F550 PLATFORM TRUCK 1
2020 FORD RANGER 1
2020 MERCEDES-BENZ GLC 300 1
2020 TORO SAND PRO 5040 FIELD GROOMER 1
2020 TOYOTA CAMRY 2
2020 TOYOTA SIENNA LE 1
2020 WANCO WVTM(B) MINI MATRIX SIGN TRAILER 2

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4 2021 BEST TB82X14T TILTBED TRAILER 1
2021 DODGE DURANGO-POLICE PURSUIT 1
2021 DOOSAN P185WDO-T4F PORTABLE AIR COMP 1
2021 FREIGHTLINER VAC-CON 1
2021 TAKEUCHI MINI EXCAVATOR MODEL TB216R 1
2021 WANCO TRAILERED WLTT-4MM6K COMPACT DIESEL LIGHT TOWER 2 2022 MULTIHOG MULTIHOG CV350 COMPACT MULTI-PURPOSE 1
2022 BIG TEX BLACK SINGLE AXLE TRAILER 1
2022 BMW 1250 RT-P POLICE MOTORCYCLE 3
2022 FORD EXPLORER-INTERCEPTOR 8
2022 FORD F750 BUCKET TRUCK 1
2022 FREIGHTLINER PB LOADER ASPHALT TRUCK 1
2022 LEMCO CABLE REEL TRAILER 1
2023 BMW 1250 RT-P POLICE MOTORCYCLE 2
2023 CART-AWAY ST-125 CONCRETE BUGGY 1
2023 CHEVROLET BOLT EUV 4
2023 CHEVROLET TAHOE 1
2023 CHRYSLER PACIFICA 1
2023 CIMLINE Aux Engine 2023 M2 Series Crack Sealer 1
2023 DOOSAN P185-HP150WDO-T4F PORTABLE AIR Comp 1
2023 FORD E-TRANSIT CARGO VAN 2
2023 FORD EXPEDITION 1
2023 FORD EXPLORER-INTERCEPTOR 2
2023 FORD F150 2
2023 FORD F350 7
2023 FORD F650 DUMP 2
2023 FORD LIGHTNING 2
2023 FORD MAVERICK 9
2023 FREIGHTLINER VAC-CON 1
2023 MULTIQUIP MQ POWER 125 KVA WHISPERWATT GENERTOR 3
2023 VAC-CON AUX ENGINE EQUIPMENT 1
2024 FORD F150 1
2024 FORD F650 DUMP 2
2024 TPD DUI Trailer Model ST714 1
2025 TORO GROUNDSMASTER 4000-D 1

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4 TECHNICAL ATTACHMENT C - CITY FURNISHED EQUIPMENT

City Furnished Equipment (Subject to Change)
Description Quantity Make Model
Vehicle Hoist - Parallel 1 OMER 44,000 lbs. capacity
Vehicle Hoist 1 Benwil 7,000 lbs.

Vehicle Hoist 1 Rotary 10,000 lbs.

Vehicle Hoist 1 Challenger 12,000 lbs.

Brake Lathe 1 Ammco Disc/Drum
3' X 10' Workbench 1
3' X 5' Workbench 2
3' X 6' Workbench 1
Oil / Grease Reels 8
Water Reels 1
Air Reels 2
Waste Oil Container 500 Gallons 1
Oil Tank 15-40 500 Gallons 1
Waste Oil Portable Drain 4
Wheel Balancer 1 Hunter SW00
Tire Changer Machine 1 Hunter TCX500A
Tire Changer 1 Coats 850 40/50
Brake Lathe 1 Ammco Disc/Drum
Waste Oil Container 500 Gallons 1
Oil Tank 15-40 500 Gallons 1
Oil Filter Crusher 1
Tire Inflation Cage 1 Myers
Wire Spool Center 1
Roll Around 30-gallon Oil Drain Basket 1
Air Compressor 1 Curtis

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4 Exhibit B- Cost Schedule

FIRM FIXED ANNUAL COSTS
This sum represents the FIRM FIXED ANNUAL COSTS as detailed below:

Contract Costs
Total “BASE” costs: $____861,678.90________ (Matches Total “Base” Cost on next page) Performance Based Compensation
Percentage: ______ 8________ %
PBC Max (“BASE” x %): $______ 68,934.31 ____ (Per year, up to 25% to be awarded quarterly) Total Annual Contract Amount: $______ 930,613.21________ (Total “Base” Costs plus PBC Max) Non-Contract Labor
Technician Labor rate per hour $____51.25______

Shop Lead Labor rate per hour $_____53.29______

Manager Labor rate per hour $_____0_________
Any approved annual cost adjustments shall comply with the Scope of Services Section 2.12.

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4 Exhibit C- Insurance Requirements
Minimum Scope of Insurance
Coverage shall be at least as broad as:

1.Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

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

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

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

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

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

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary insurance as respects the City of San Mateo and the Estero Municipal Improvement District, their elected and appointed officials, employees, and agents. Any insurance or self-insurance maintained by the City of San Mateo and the Estero Municipal Improvement District, their elected and appointed officials, employees, or agents shall be excess of the Contractor’s insurance and shall not contribute with it.

Notice of Cancellation

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4 Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City.

Waiver of Subrogation
Contractor hereby grants to the City of San Mateo and the Estero Municipal Improvement District a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

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

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

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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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: 10 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 25-9891 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 19, 2025
SUBJECT:

Wastewater Treatment Plant, Digester 2 Coating Project – Agreement Approval RECOMMENDATION:

Approve an Agreement with Brand Safway to conduct Wastewater Treatment Plant Digester 2 Coatings in an amount not to exceed $406,881.35; approve a contingency of $82,000.00; and authorize the Public Works Director to execute the agreement in substantially the form presented and approve any necessary change orders within the approved contingency amount.

BACKGROUND:

The Clean Water Program (CWP) Annual Major Components (AMC) Projects includes several capital improvement projects that are currently under development or under construction and are intended to upgrade or rehabilitate aging infrastructure in the City’s sewer collection system and Wastewater Treatment Plant (WWTP). The AMC includes the WWTP Biogas and Biosolids Evaluation project which is being conducted by Brown and Caldwell (B&C). The scope includes the condition assessment and inspection of both digesters. An initial condition assessment of Digester 2 was recently completed and revealed that the coatings of the draft tube and interior of Digester 2 need repair. This will help prevent wear and tear related issues caused by the composition of digester sludge and gas.

Digester 2 is currently offline due to the mixer failure in 2022, which is being repaired off site and expected back in late May 2025. The WWTP is currently operating with only Digester 1, which is the older of the two Digesters, and there is concern about its current condition. It is in the City’s best interest to bring Digester 2 online as soon as possible. Operating the plant with only Digester 1 causes an increase in the liquid content in the off-haul material. This has increased the operational cost of hauling the material by $26,000 per month.

With Digester 2 offline, the City performed a cleaning and condition assessment of Digester 2 in the second week of March. To perform the condition assessment, an internal temporary scaffold was installed. Because the digester is egg shaped, the scaffold is complex and is costly to install. After the inspection and preliminary evaluation was performed, it was recommended to re-coat the digester and draft tube because the existing coating has worn off. Without the coating, the interior of the digester would be subject to corrosion which can cause issues with Digester 2 condition and performance. Given the results of this evaluation, the City deems it is most cost effective to re-coat the interior of the digester and draft tube while Digester 2 is currently offline, and the scaffolding is in place. This avoids the costs of dismantling and installing the scaffolding and recleaning the digester if the recoating is not performed while the digester is currently offline. In addition, taking a digester offline is not a simple process as it involves ensuring the gases are purged, which takes significant effort from the WWTP operations and maintenance staff.

In April 2025, the City obtained three proposals from three local coating vendors – JeffCo, Brand Safway (which owns National Coatings), and Redwood. City staff evaluated the proposals and determined Brand Safway as the lowest bidder to

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perform the work. They also demonstrated experience with this scope. The base amount for this project is $406,881.35, which includes labor, material, coating per manufacturer specifications, decontamination, dehumidification, and onsite power. In addition, staff recommends $82,000 be authorized as a contingency amount for any potential changes that may arise due to the nature of this work. The approximate duration of this work is 27 working days.

BUDGET IMPACT:

There are sufficient funds available in the CWP WWTP Annual Major Components Project (46T090) to fund this agreement and the proposed contingency reserve.

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 use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Agreement

STAFF CONTACT
Thomas Ruark, Senior Project Manager
[email protected]
650-522-7280
Deryk Daquigan, Deputy Director of Public Works
[email protected]
(650)522-7287

Matthew Fabry, Director of Public Works
[email protected]
(650)522-7303

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7 AGREEMENT WITH BRAND SAFWAY

FOR DIGESTER COATING SERVICES
FOR
AMC-DIGESTER 2 IMPROVEMENTS
This Agreement made and entered into this day of _____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and Brand Safway (“CONTRACTOR”).

RECITALS:

A. CITY desires certain digester maintenance and coatings services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these digester maintenance and coatings services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
The scope of services to be performed by CONTRACTOR under this Agreement is as described in Exhibit A to this Agreement, which is attached and incorporated by reference.

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

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

CONTRACTOR and his subcontractors shall comply with State’s Prevailing Wage Laws.

CONTRACTOR or subcontractor shall not be qualified to bid on, be listed in a bid proposal, or engage in the performance of any contract for public work unless currently registered and qualified to perform public work pursuant to Section 1725.5 of the Labor Code. For the work performed for the City, the CONTRACTOR and his subcontractors shall pay the workers at the prevailing wage rate as determined by the California Department of Industrial Relations, for this locality. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. CONTRACTOR

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7 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.

SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

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

SECTION 4 - TERM
The services to be performed under this Agreement shall commence on upon execution of this Agreement and be completed on October 31, 2025.

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

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7 SECTION 10 - CONTRACTOR'S STATUS
It is expressly agreed that in the performance of the services required under this Agreement, CONTRACTOR shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONTRACTOR an agent or employee of CITY while providing services under this Agreement.

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

SECTION 12 - INSURANCE
Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement.

SECTION 14 - RELIANCE UPON SKILL OF CONTRACTOR
It is mutually understood and agreed by and between the parties hereto that CONTRACTOR is skilled in the performance of the work agreed to be done under this Agreement and that CITY relies upon the skill of CONTRACTOR to do and perform the work in the most skillful manner, and CONTRACTOR agrees to thus perform the work. The acceptance of CONTRACTOR's work by CITY does not operate as a release of CONTRACTOR from said obligation.

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7 SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

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

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7 SECTION 19 - LITIGATION
CONTRACTOR shall testify at CITY'S request if litigation is brought against CITY in connection with CONTRACTOR'S services under this Agreement. Unless the action is brought by CONTRACTOR, or is based upon CONTRACTOR'S wrongdoing, CITY shall compensate CONTRACTOR for preparation for testimony, testimony, and travel at CONTRACTOR'S standard hourly rates at the time of actual testimony.

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

To CITY: Thomas Ruark
City of San Mateo
Biogas and Biosolids Evaluation
City of San Mateo
2050 Detroit Drive
San Mateo, CA
To CONTRACTOR: Dillon Bachemin
535-Watt Drive, Suite A
Fairfield, CA
94534
SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

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

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7 IN WITNESS WHEREOF, this agreement 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 Dillon Bachemin
Authorized Agent
Branch Manager
If a Corporation, can be either
1) President or 2) Vice
President plus an additional
corporate officer (i.e.,
Secretary, Treasurer) who shall
sign below.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Linh Nguyen
Assistant City Attorney
Date Dillon Bachemin
Branch Manager
Date
Attachments:

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

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7 EXHIBIT A

SCOPE OF SERVICES
Internal Coatings
Perform CSN testing Chlor-Rid wash the interior surfaces. Wash the interior surfaces utilizing Clor-Rid to remove soluble salts. One wash included.
Abrasive blast the shell surfaces of the egg-shaped digester to an SSPC-SP10 Near White Metal Blast Cleaning, with a minimum anchor profile of the 2-4 mils. Estimated at 17,850 FT2. Garnet abrasive to be utilized for this step to avoid any abrasive embedment. Apply a stripe coat of Dura-Plate 8200, per the manufacturer’s instructions, to all weld seams that coat.
Apply 1 coat of Dura-Plate 8200, per the manufacturer’s instructions at 20-35 mils DFT. High voltage spark test the coated surfaces per NACE-SP0188. Take DFT Readings per SSPC-PA2 Method no. 2.
oAbrasive blast the interior of the draft tube according to NAPF 500-03. oWash the interior surfaces of the draft tube with Chlor-Rid to remove soluble salts. One wash included.
oApply 1 coat of Dura-Plate 8200, per the manufacturer’s instructions at a minimum of 20 mils DFT.
oDFT and Holiday test accessible areas.

Exclusions/Clarifications
Any worked performed outside the work stated within, will be considered extra work. Any delays or call outs will be considered extra work. No training time for site access has been included.
No disposal or handling of hazardous waste has been included. Air monitoring or sampling.
1 Chlor-Rid wash has been included in this pricing.
This quote was based on interior access being supplied by others. No containment included other than ground coverage.

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7 EXHIBIT B

PAYMENT RATES
Digester Coatings
Labor $145,696.15
Material $111,487.27
Equipment $40,173.82
Total Costs $297,357.24
Duration 27 shifts
Schedule 5/10
Dehumidification – Triple Shift – 24 HRs $14,820.00
Diesel for Dehumidification $38,937.60
TOTAL COSTS INCLUDING DH & FUEL $351,114.84
Cost per SF $19.67/FT2
Draft Tube Interior Coating $55,766.51

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7 EXHIBIT C

INSURANCE REQUIREMENTS

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

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

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

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City.

Waiver of Subrogation

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7 Contractor hereby grants to the City of San Mateo and the Estero Municipal Improvement District a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

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

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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: CONSENT CALENDAR Account Number: 72-4674 File ID: 25-9895 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 19, 2025
SUBJECT:

East San Mateo Sanitary Sewer Lift Station Rehabilitation Project – Amendment RECOMMENDATION:

Approve Amendment No. 6 with Schaaf & Wheeler for professional design services for the East San Mateo Sanitary Sewer Lift Station Rehabilitation Project to provide engineering services during construction in an amount not to exceed $334,247, for a total agreement amount of $2,396,431; amend the Scope of Project; extend the term; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue amendments within the balance of the previously approved contingency.

BACKGROUND:

The Clean Water Program is improving the City's sanitary sewer system to prevent sanitary sewer overflows and unauthorized discharge of sewage. In 2016, a Sewer Pump Station and Force Main Condition Assessment (Assessment) was completed by AECOM, building on a previous pump station capacity study to improve the City’s lift stations’ reliability.

The East San Mateo Lift Station Rehabilitation Project (Project) addresses multiple lift stations, including the five highest priority lift stations from the Assessment: Kelly/Kehoe, Laurie Meadows, and Los Prados Nos. 1, 2, and 3.

On February 24, 2017, City Council awarded a professional design services agreement to Schaaf & Wheeler for this Project.

The Project was split into two packages for efficient delivery. Staff coordinated with Schaaf & Wheeler to complete each package with a three-phase approach: 1) alternatives analysis, 2) detailed design, and 3) engineering services during construction.

Package 1 included the abandonment of the Laurie Meadows lift station, the upgrade of the Woodbridge lift station, and the modifications to the surrounding sewers to redirect sewer flows. The scope of the original agreement included an alternatives analysis for these improvements. Three amendments were sequentially approved to allow Schaaf & Wheeler to progress through the Package 1 design and construction phases: Amendment No. 1 included scope for detailed design, Amendment No. 2 included additional investigations required to progress the design, and Amendment No. 3 included engineering services during construction. The construction contract was awarded to JMB Construction in 2019 and the project was completed in 2020.

Package 2 originally included the rehabilitation of the Los Prados area lift stations and Kelly/Kehoe lift station. In 2021, staff determined that the Arroyo lift station also required improvements. Utilizing Schaaf & Wheeler’s existing contract balance, Amendment No. 4 increased their scope to perform an alternatives analysis of these lift stations. The alternatives analysis recommendations for the Package 2 improvements include the Los Prados No. 1 lift station replacement and force main extension, the elimination of Los Prados No. 2 lift station, sewer main improvements between Los Prados No. 1 and No. 2 lift stations, Kelly/Kehoe lift station replacement and force main extension, and the Arroyo lift station rehabilitation.

Amendment No. 5 increased budget and scope for Schaaf & Wheeler to provide detailed design phase services for the

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recommended Package 2 improvements.

As part of the Package 2 scope, this Amendment No. 6 will maintain Schaaf & Wheeler’s engineering services during construction from construction award through construction completion. Staff reviewed and negotiated a proposal with Schaaf & Wheeler for Amendment No. 6 for a not-to-exceed amount of $334,247. Staff determined the proposal is reasonable for the scope of work and expertise required and recommend approving Amendment No. 6 to the agreement.

City Council previously approved a contingency reserve, which has a remaining balance of $87,200. An additional contingency request is not requested with the proposed amendment as this balance is anticipated to be sufficient to address unknowns and risks that may impact Schaaf & Wheeler’s scope and fee through the duration of the construction contract.

BUDGET IMPACT:

Sufficient funding for Amendment No. 6 is available in the East San Mateo Lift Station (469988) project budget. A summary of the approved agreement and amendments is shown in the table below:

Agreement/Amendments Contingency
Amount Cumulative Total Expended/Added Balance
Original Agreement $314,121 $314,121 +$30,000 $30,000
Amendment No. 1 - Detailed Design $723,327 $1,037,448 0 $30,000 Amendment No. 2 - Added Investigations $0 $1,037,448 -$21,426 $8,574 Amendment No. 3 - Services during
Construction
$153,312 $1,190,760 +$15,000 $23,574
Amendment No. 4 - Alternatives Analysis $0 $1,190,760 $0 $23,574 Amendment No. 5 - Detailed Design $871,424 $2,062,184 +$63,626 $87,200 Amendment No. 6 - Services during
Construction (proposed)
$334,247 $2,396,431 $0 $87,200
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. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Amendment No. 6

STAFF CONTACT
Laura Webb, Senior Engineer
[email protected]
(650) 522-7322
Thomas W. Williams, Engineering Manager
[email protected]
(650) 522-7307

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AMENDMENT NO. 6 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND SCHAAF & WHEELER

FOR EAST SAN MATEO SANITARY SEWER LIFT STATION

REHABILITATION PROJECT
($314,121 [Original Amount] / $723,327 [Amendment No. 1] / $0 [Amendment No. 2] / $153,312 [Amendment No. 3] / $0 [Amendment No. 4] / $871,424 [Amendment No. 5] / $334,247 [Amendment No. 6]

WHEREAS, the City of San Mateo (“City ”), a municipal corporation of the State of California, and Schaaf & Wheeler (“CONSULTANT”), entered into an Agreement for professional services (“Agreement”) on February 15, 2017; and

WHEREAS, on July 24, 2017, the CITY and CONSULTANT executed Amendment No. 1, extending the scope of the Agreement, the term of the Agreement, and increasing Agreement amount by $723,327, for a total Agreement in the amount of $1,037,448; and

WHEREAS, on October 17, 2017, the CITY and CONSULTANT executed Amendment No. 2, extending the scope of the Agreement without additional funds, maintaining the Agreement amount at $1,037,448; and

WHEREAS, on October 7, 2019, the CITY and CONSULTANT executed Amendment No. 3, extending the scope of the Agreement, the term of the Agreement, and increasing the Agreement amount by $153,312, for a total Agreement in the amount of $1,190,760; and

WHEREAS, on May 10, 2021, the CITY and CONSULTANT executed Amendment No. 4, extending the scope of the Agreement without additional funds, maintaining the Agreement amount of $1,190,760; and

WHEREAS, on April 7, 2022, the CITY and CONSULTANT executed Amendment No. 5, extending the scope of the Agreement, the term of the Agreement, and increasing the Agreement amount by $871,424, for a total Agreement in the amount of $2,062,184; and

WHEREAS, City and Consultant, wish to amend the Agreement to include Services During Construction as described in the attached Scope of Work. Amendment 6 amends the Agreement to amend the Scope of Work, increase the Agreement amount by $334,237, for a new total of $2,396,421, and extend the term of the Agreement.

NOW, THEREFORE, the parties agree as follows:

1. Section 1—Scope of Project of the Agreement is amended to include reference “Exhibits A, A1, A2, A3, A4 and A5”. Exhibit A5 to the Agreement is attached and incorporated by reference. Where conflicting information between “Exhibit A”, “Exhibit A1”, “Exhibit A2”, “Exhibit A3”, “Exhibit A4” and “Exhibit A5”, “Exhibit A5” shall take precedence.

2. Section 7—Term, Progress and Comple tion of the Agreement is amended to reference “Exhibits B, B1, B2, B3, B4 and B5”. Exhibit B5 to the

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agreement is attached and incorporated by reference. Where conflicting information between “Exhibit B”, “Exhibit B1”, “Exhibit B2”, “Exhibit B3”, “Exhibit B4” and “Exhibit B5”, “Exhibit B5” shall take precedence.

3. Section 8—Payment of the Agreement is amended to change the fee from “$2,062,184” to “$2,396,431”. Exhibit C5 to the agreement is attached and incorporated by reference.

4. Exhibits A5, B5, and C5 are attached and herein incorporated by reference.

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

IN WITNESS WHEREOF, CITY OF SAN MATEO and Schaaf & Wheeler have executed this Agreement on ________________________________.

CITY OF SAN MATEO CONSULTANT
S c h a a f & W h e e l e r

____________________________ ___________________________________ Matt Fabry Date Charles D. Anderson Date
Public Works Director President

APPROVED AS TO FORM

___________________________
Linh Nguyen Date Exhibits:

Assistant City Attorney Att achment A5 – Scope of Services Attachment B5—Schedule
Attachment C5—Rate and Cost Schedule

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ATTACHMENT “A5”

SCOPE OF SERVICES
For
Amendment 6

City of San Mateo
Clean Water Program
Sanitary Sewer Lift Station Rehabilitation Design Services Job No. CWP469988

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Attachment A5, Scope of Services - Sanitary Sewer Pump Station Rehabilitation Design Services Amendment 6

Page 2 of 4 ends

SCOPE OF SERVICES
As part of the East San Mateo Lift Station Rehabilitation Project, the Consultant will provide additional engineering consulting services for the following items which have been identified by the City’s Clean Water Program (CWP):

1. Provide additional General Services (Task 1) for the extended contract duration and additional construction contract.

2. Provide construction phase services for the Los Prados, Kehoe Kelly, and Arroyo Lift Station Rehabilitation Project, City Project No. 469988.

TASK 1 – General Services
Additional general services will be performed by the Consultant throughout the project as necessary for the extended contract duration and additional construction contract. These services include:

Task 1.1 – Project Management
Task 1.1.1 – General Management
The Consultant will be responsible for detailed management of the project, including subconsultants and subcontractors, and will keep the City appraised of the status of the project.

The Consultant will provide the key management personnel as described in their proposal on this project. The Consultant will not reassign the key project personnel without prior approval of the City per the Standard Agreement for Professional Consultant Services.

Task 1.1.4 – Progress Report
The Consultant will prepare and submit monthly progress reports that include a narrative of the work completed by task, project decision log, project action item log, upcoming work, project issues, budget and schedule status, percent complete, cost to complete, earned value versus actual spent analysis, potential scope or budget changes, and other important project information.

Task 1.1.5 – Project Invoices
The Consultant will prepare and submit monthly invoices in accordance with Program standards.

The invoices will document the man-hours and billing rates for staff for each task in the WBS, as well as overhead, profit and any direct costs. The current and previous billing period invoicing, as well as a summary of the budget spent, budget remaining, cost to complete, and all backup documentation for expenses will be included. The monthly progress report and project schedule will be submitted with the project invoice as part of the monthly request for payment.

Task 1.1.7 – Progress Schedule
The Consultant will prepare a cost loaded project schedule in significant detail to calculate a monthly earned value of work performed. The selection of tasks and task durations will be approved by the City. The Consultant will prepare a planned value curve for the Project. Prior to invoice submittal, the Consultant will evaluate the percent complete for each activity worked on during the billing period. The Consultant will calculate the earned value for the month. The earned value will be compared to the planned value and the actual invoice value for the month. The

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Attachment A5, Scope of Services - Sanitary Sewer Pump Station Rehabilitation Design Services Amendment 6

Page 3 of 4 ends

Consultant will need to justify any requests for monies over the planned value and explain how the overall budget will be met over the life of the project.

Task 1.5 – Management of Subconsultants
If the Consultant requires the services of any subconsultants, then the Consultant will include a list of them in the proposal, explain why they are needed, and provide a general description of their effort.

The Consultant will manage the activities of subconsultants during performance of the project. All requirements of the contract shall also apply to subconsultants.

Task 7 –Construction Phase Services
It is assumed that all work designed as part of the Los Prados, Kehoe Kelly, and Arroyo Lift Station Rehabilitation Project will be constructed under one construction contract.

The Consultant shall provide services during construction, which may include the following:
 Attendance at pre-construction conference. Agenda and minutes for meetings will be prepared by others.
 Attendance at construction progress meetings via teleconference meeting (assume 1 hour each and 80 meetings in total) by one Consultant representative, additional meeting attendance can be provided for an additional fee upon request). Agenda and minutes for meetings will be prepared by others.
o Electrical engineer will attend up to 4 meetings
 Project correspondence and general technical support including email and telephone correspondence throughout the duration of construction.  Periodic field visits (assumed 12 field visits by Schaaf & Wheeler staff) o Scope includes up to 4 field visits by the project geotechnical engineer to review existing conditions and provide recommendations to engineering staff. This does not include material testing or inspection services.
 General technical support
 Submittal review
 Request for information review
 Change order and contract document modifications preparation and review  Startup and commissioning support (assumed 3 field visits) o Assume up to three site visits for final walk through (one per lift station) and preparation of punch list
 Construction closeout support
 Preparation of record drawings
 Preparation of O&M manuals
 Review of warranty documents
 Attendance at a post-construction team meeting
Task 8 – Environmental Permit Compliance
Schaaf & Wheeler’s subconsultant, WRA, Inc., will provide environmental permit compliance support services as described below:
 Preconstruction Surveys and Reporting

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Attachment A5, Scope of Services - Sanitary Sewer Pump Station Rehabilitation Design Services Amendment 6

Page 4 of 4 ends

o Coordinate with CDFW to approve qualified Biologists and Biological Monitors o Two early detection surveys to identify active bird nests, bat roosts, or woodrat nests. Results will be transmitted via email, no formal reporting is required. o Woodrat nest survey (as required by the SAA) - If woodrat nests are found in the work area, additional consultation services may be necessary which are not covered under this scope.
o 48-Hours pre-construction survey (as required by the SAA) - If nesting birds or roosting bats are found in the work area, additional consultation services may be necessary which are not covered under this scope.
 Daily Inspections (as required by the SAA) – A qualified Biologist or Biological Monitor will conduct daily inspections, consisting of a maximum of 1 inspection per day. This scope of work covers up to 40 daily inspections. This task assumes that no special- status species will be present and therefore no formal reporting will be necessary. If the construction schedule requires additional daily inspections, additional budget will be necessary.
 Revegetation Plan Monitoring and Reporting (5 Years)
o Complete monitoring and reporting requirements defined in Section 5 of the Revegetation Plan.
o Prepare annual report with photo documentation points and a map figure per the NOA requirements.
o This scope includes 5 surveys and 5 annual reports. If the final success criteria are not achieved, additional budget may be necessary for reporting in subsequent years.
 RWQCB Notice of Termination – Prepare and submit RWQCB Notice of Termination Report.
 Project Management and Coordination – Coordination with City, CDFW, and RWQCB.

This scope includes up to 30 hours of coordination by WRA staff.

Task 9 – Prepare Standard Operating Procedures
Schaaf & Wheeler will prepare standard operating procures for each of the three lift stations.

The procedures will include the following:
 Standard heath and safety warnings
 General description of the pump station and surrounding sewer system  Operating procedure
 Pump station setpoints
 Station controls and control strategy
 Power failure and standby generator description
It is assumed that the standard operating procedure will be similar to the Standard Operating Procedure for DAPS Interim Operation – December 2021.

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ATTACHMENT “B5”

SCHEDULE
For
Amendment 6

City of San Mateo
Clean Water Program
Sanitary Sewer Lift Station Rehabilitation Design Services Job No. CWP469988

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ID Task Name Duration Start Finish
1 City Review of 100% Draft Submittal 50 days Fri 11/1/24 Thu 1/9/25 2 Prepare Bid Documents 36 days Fri 1/10/25 Fri 2/28/25 3 Submit Bid Documents 0 days Fri 2/28/25 Fri 2/28/25
4 Bid and Construction Support 148 days Mon 3/3/25 Wed 9/24/25 5 Prepare Documents For Advertising 40 days Mon 3/3/25 Fri 4/25/25 6 Bid Period 23 days Mon 4/28/25 Wed 5/28/25
7 AR to Council for Approval (1.5 months) 25 days Thu 5/29/25 Wed 7/2/25 8 Award Construction Contract 0 days Wed 7/2/25 Wed 7/2/25 9 Submittals and Mobilization 25 days Thu 7/3/25 Wed 8/6/25 10 Service Pedestal & Control Panel Shop Drawing Prep
and Review (3 Months)
3 mons Thu 7/3/25 Wed 9/24/25
11 Los Prados Construction 405 days Thu 9/25/25 Wed 4/14/27 12 2025/26 Lagoon Lower During Winter 117 days Mon 11/3/25 Tue 4/14/26 13 2026/27 Lagoon Lower During Winter 118 days Mon 11/2/26 Wed 4/14/27 14 LP1 Force Main 45 days Thu 12/4/25 Wed 2/4/26
15 Site Restoration, Paving, Etc.  (Force Main) 20 days Thu 2/5/26 Wed 3/4/26 16 Service Pedestal Lead Time (4 Months) 4 mons Thu 9/25/25 Wed 1/14/26 17 Service Pedestal Installation 20 days Wed 4/29/26 Tue 5/26/26 18 Schedule PG&E Installation 0 days Tue 5/26/26 Tue 5/26/26 19 Control Panel Lead Time (12 Months) 12 mons Thu 9/25/25 Wed 8/26/26 20 Construct Wetwell 20 days Wed 3/18/26 Tue 4/14/26
21 Pump Station Construction 4 mons Thu 7/30/26 Wed 11/18/26 22 Intersection Reconfiguration 25 days Thu 10/22/26 Wed 11/25/26 23 Los Prados Gravity Sewer 55 days Thu 11/19/26 Wed 2/3/27 24 LP2 Demolition 15 days Thu 1/14/27 Wed 2/3/27
25 Startup, Punchlist, Closeout 15 days Thu 2/4/27 Wed 2/24/27 26 Kehoe Kelly Construction 435 days Thu 8/7/25 Wed 4/7/27 27 Kehoe Force Mains 30 days Thu 8/7/25 Wed 9/17/25
28 Site Restoration, Paving, Etc.  (Force Main) 20 days Thu 9/18/25 Wed 10/15/25 29 Control Panel Lead Time (12 Months) 12 mons Thu 9/25/25 Wed 8/26/26 30 Pump Station Construction 3 mons Thu 12/17/26 Wed 3/10/27 31 Schedule PG&E Installation 0 days Wed 1/13/27 Wed 1/13/27 32 Startup, Punchlist, Closeout 20 days Thu 3/11/27 Wed 4/7/27 33 Arroyo Construction 423 days Mon 6/16/25 Wed 1/27/27 34 2025 Permit Construction Window for Work Outside of
Road
88 days Mon 6/16/25 Wed
10/15/25
35 2026 Permit Construction Window for Work Outside of
Road
89 days Mon 6/15/26 Thu 10/15/26
36 Arroyo Force Main 20 days Thu 10/16/25 Wed 11/12/25
37 Site Restoration, Paving, Etc.  (Force Main) 15 days Thu 11/13/25 Wed 12/3/25 38 Control Panel Lead Time (12 Months) 12 mons Thu 9/25/25 Wed 8/26/26 39 Pump Station Construction 3 mons Thu 10/8/26 Wed 12/30/26 40 Schedule PG&E Installation 0 days Wed 10/21/26 Wed 10/21/26 41 Startup, Punchlist, Closeout 20 days Thu 12/31/26 Wed 1/27/27 42 Construction Complete 0 days Wed 4/7/27 Wed 4/7/27
City Review of 100% Draft Submittal
2/28 Submit Bid Documents
7/2
5/26
1/13
10/21
4/7
January 202February 2March 2025April 2025 May 2025 June 2025 July 2025 August 202 September October 20 November December 2January 202February 2March 2026April 2026 May 2026 June 2026 July 2026 August 202 September October 20 November December 2January 202February 2March 2027April 2027 May City of San Mateo
Clean Water Program
Los Prados, Kehoe Kelly, and Arroyo Lift Station Rehabilitation Project Estimated Construction Schedule
City Project No. 469988
Updated April 21, 2025
Durations are in Working Days

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ATTACHMENT “C5”

RATE AND COST SCHEDULE
For
Amendment 6

City of San Mateo
Clean Water Program
Sanitary Sewer Lift Station Rehabilitation Design Services Job No. CWP469988

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Benjamin Shick
Project Manager
Glen Anderson
Design Manager
Curran Price
Project Engineer
Jonathan Ondracek
Project Engineer
Total
Schaaf & Wheeler Fee
Electrical Subconsultant -
TJC and Associates
Structural Subconsultant -
Biggs Cardosa & Assoc.

Geotechnical Subconsultant -
Cornerstone Earth Group
WRA, Inc. -
Environmental
Subconsultant Markup (5%)
Mileage
Total Cost
Charge Rate $332.73 $223.17 $182.60 $146.08
Task 1 - General Services 60 $19,964 $19,964

1.1 - Project Management

1.1.1 - General Management 12 $3,993 $3,993

1.1.4 - Progress Report 24 $7,986 $7,986

1.1.5 - Project Invoices 6 $1,996 $1,996

1.1.7 - Progress Schedule 2 $665 $665

1.5 - Management of Subconsultants 16 $5,324 $5,324
186 16 274 72 $126,009 $48,700 $7,930 $6,320 $3,148 $1,500 $193,606 Attendance at pre-construction conference 4 4 $2,061 $1,000 $50 $3,111 Attendance at progress meetings (80 meetings) 50 40 $23,941 $3,000 $150 $27,091 General technical support 40 8 24 16 $21,814 $6,000 $300 $28,114 Periodic field visits (12) 18 18 $9,276 $3,000 $3,440 $322 $1,200 $17,2 38 Submittal review 24 4 60 40 $25,677 $24,000 $4,500 $2,880 $1,569 $58,626 Request for information review 16 4 24 8 $11,767 $5,700 $3,430 $457 $21, 354 Change order and contract document modifications 4 8 $2,792 $2,792 Startup and commissioning support 16 32 8 $12,336 $6,000 $300 $18,636 Construction closeout support 2 8 $2,126 $300 $2,426
Preparation of record drawings 6 40 $9,300 $9,300
Review of warranty documents 2 12 $2,857 $2,857
Attendance at a post-construction team meeting 4 4 $2,061 $2,061 28 $9,316 $84,500 $4,225 $98,041
CDFW Approvals and Pre-Construction Surveys 2 $665 $9,000 $450 $10,115 Daily Inspections 4 $1,331 $32,500 $1,625 $35,456
Revegetation Monitoring and Reporting (5 Years) 10 $3,327 $32,400 $ 1,620 $37,347 RWQCB Notice of Termination 2 $665 $2,400 $120 $3,185
Project Management and Coordination (5 Years) 10 $3,327 $8,200 $41 0 $11,937 26 6 52 $19,485 $3,000 $150 $22,635
Draft Standard Operating Procedures 18 4 36 $13,455 $2,000 $100 $15,555 Final Standard Operating Procedures 8 2 16 $6,030 $1,000 $50 $7,080 300 22 326 72 $174,774 $51,700 $7,930 $6,320 $84,500 $7,523 $1,500 $334,247Phase 3 Total
Task 8 - Environmental Permit Compliance
Task 9 - Prepare Standard Operating Procedures
City of San Mateo
Sanitary Sewer Lift Station
Rehabilitation Design
Construction Phase Services
Schaaf & Wheeler
March 4, 2025
Phase 3: Construction Phase
Task 7 - Construction Phase Services

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 12 Section Name: CONSENT CALENDAR Account Number: 10-4662 File ID: 25-9905 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 19, 2025
SUBJECT:

On-Call Professional Consultant Services Agreement – Amendment Approval RECOMMENDATION:

Approve Amendment No. 3 to the agreement with Sanbell-Bay Area, formerly Bellecci & Associates, for on-call professional design services increasing the agreement amount by $200,000, for a new agreement total of $450,000; extending the term of the Agreement to June 30, 2027; and authorizing the Director of Public Works to execute amendments within the Agreement amount including no-cost extensions.

BACKGROUND:

In October 2018, Public Works staff issued a Request for Proposals (RFP) to select qualified firms to provide on-call professional consulting services. The City received proposals from thirteen (13) firms and evaluated them based on project understanding, relevant experience, project manager qualifications, and technical capabilities. Three firms were shortlisted, and in-person interviews were conducted with each project team. Sanbell-Bay Area (Sanbell), formerly Bellecci & Associates, Inc., was among the three firms selected to provide engineering support under an original agreement of $250,000.

In January 2024, Sanbell was engaged to provide engineering design services in support of San Mateo's implementation of a Train Quiet Zone. The scope of work included general project management and coordination, development of conceptual and final designs, and right-of-way mapping.

In Summer 2024, staff and Sanbell presented conceptual designs to City Council, which included a closure at Villa Terrace and median improvements at East Bellevue Avenue. Due to potential long-term impacts on surrounding residents, particularly related to loss of parking locations, the Council directed staff to further evaluate the project design at East Bellevue Avenue and to incorporate additional traffic operational analysis along previously unstudied intersections on Claremont Street.

Staff has been working with Sanbell to implement the necessary design changes and expand outreach efforts within the existing budget. However, additional funds are now required to meet Council expectations and to address newly expanded project scope elements.

Additional project elements requiring expanded scope and funding for Sanbell include:

1. Additional design services for storm drain improvements at Villa Terrace

2. Expanded right-of-way services and boundary research for Caltrain and Union Pacific rights-of-way

3. Revisions to design documents to potentially account for both complete and temporary closures

4. Additional coordination with agencies such as CPUC, Caltrain, Caltrans, and Union Pacific

5. Bid and construction support services

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CITY OF SAN MATEO
The expected cost for these additional tasks is conservatively estimated at $200,000 but will be refined further with Sanbell prior to issuance of Task Orders.

The City Council previously authorized amendments to Sanbell’s contract on March 21, 2022, and June 5, 2023, extending the contract term through December 31, 2025, without increasing the project budget. Given Sanbell’s ongoing involvement and expertise in the Train Quiet Zone efforts, as well as their responsiveness to City requests, staff recommends amending their existing on-call contract to provide additional design and consulting services in the amount not-to-exceed of $200,000, for a total agreement amount of $450,000, and extend the term through June 30, 2027, beyond the anticipated implementation date of December 2026.

BUDGET IMPACT:

There are sufficient funds in the Train Quiet Zone Project (462205) to fund this Amendment No. 3.

ENVIRONMENTAL DETERMINATION:

This amendment is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) In addition, the proposed work relating to the Villa Terrace closure and median improvements at East Bellevue Avenue will include separate CEQA review documentation prepared for the project.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Amendment No. 3

STAFF CONTACT
Jimmy Vo, Engineering Manager
[email protected]
(650) 522-7319

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Contract Amendment Page 1 of 2
CAO Approved June 2024
1 1
8 3
8 AMENDMENT NO. 3 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO

AND SANBELL-BAY AREA FOR ON-CALL PROFESSIONAL CONSULTING SERVICES

FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS
($250,000 [Original Amount], $0 [Amendment No. 1],
$0 [Amendment No. 2], $200,000 [Amendment No. 3])
This Amendment is made and entered into this day of __________________ by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and Sanbell-Bay Area, formerly known as Bellecci & Associates, Inc. ("CONSULTANT").

WHEREAS, on April 1, 2019, CITY and CONSULTANT entered into an agreement for professional consulting services (“Agreement”); and
WHEREAS, on March 29, 2022, CITY and CONSULTANT executed Amendment No. 1 to extend the term of the Agreement to June 30, 2023; and
WHEREAS, on June 27, 2023, CITY and CONSULTANT executed Amendment No. 2 to extend the term of the Agreement to December 31, 2025; and
WHEREAS, CITY and CONSULTANT wish to amend the Agreement to increase the Agreement amount by $200,000, for a new Agreement total amount of $450,000, and to extend the term of the Agreement to June 30, 2027.

NOW, THEREFORE, the parties agree as follows:

1. Section 7 – “Term, Progress and Completion” of the Agreement is amended to read:
“The services to be performed under this Agreement shall commence on April 1, 2019 and be completed on June 30, 2027. This term of this Agreement may be extended by written amendment executed by the Director of Public Works and a duly authorized representative of CONSULTANT.

It is understood and agreed that time is of the essence of this Agreement. CONSULTANT agrees to perform the services within the time limits set forth in each task order. CITY agrees to exercise due diligence in performing its tasks to implement the CONSULTANT'S timetable.”

2. The second sentence of the first paragraph of Section 8 – “Payment” of the Agreement is amended to read:
“In consideration for the full performance of the services and any reimbursable expenses set forth in this Agreement, CITY agrees to pay CONSULTANT a fee based on verified time and materials in an amount not to exceed $450,000.”

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

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Contract Amendment Page 2 of 2
CAO Approved June 2024
1 1
8 3
8 IN WITNESS WHEREOF, CITY OF SAN MATEO and CONSULTANT have executed this Amendment No. 3 on __________________.

CITY OF SAN MATEO CONSULTANT
Matt Fabry
Public Works Director
Date Daniel Leary
Its Authorized Agent
President
Date

APPROVED AS TO FORM
Linh Nguyen
Assistant City Attorney
Date

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CITY OF SAN MATEO
4 7
5 6

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 13 Section Name: CONSENT CALENDAR Account Number: 10-2011 File ID: 25-9772 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: May 19, 2025
SUBJECT:
2025 Annual Investment Policy – Approval
RECOMMENDATION:

Adopt a Resolution approving the City of San Mateo 2025 Investment Policy and authorizing investments in United States Treasury obligations, Federal Agency obligations and State and Local Municipal obligations with a maximum maturity of up to seven years and an aggregate amount not to exceed ten percent of the City’s investment portfolio at the time of purchase.

BACKGROUND:

The investment of public 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 provides a framework for managing public funds with a focus on safety, liquidity and return, and is designed to comply with State law and best practices in public fund management.

The City’s investment policy is reviewed periodically to reflect changes in investment strategies and regulatory updates. It has been the City’s practice to bring the investment policy to the City Council annually for review and approval, regardless of whether changes are proposed.

The current policy is more conservative than State law, including a more limited list of eligible investments and stricter caps on investment types and durations. Notably, the City currently limits the maximum maturity for all fixed-income securities to five (5) years, even though State law permits longer maturities under certain conditions.

As part of the 2025 annual review, staff identified an opportunity to update the Investment Policy to allow longer maturities, up to seven (7) years, for a limited set of high-quality fixed-income securities:
• United States Treasury obligations
• United States Federal Agency obligations
• State and Local Municipal obligations
This proposed change is timely and strategic for the following reasons:

Interest Rate Environment Creates a Unique Opportunity
The current fixed-income investment environment reflects a historically high-interest rate cycle. The yield curve, previously inverted, has flattened with some upward movement in long-term yields. While rates have declined slightly from recent peaks, they remain attractive. Allowing certain high-quality investments to extend to seven (7) years would enable the City to lock in attractive long-term rates, supporting consistent interest earnings over time.

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CITY OF SAN MATEO
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5 6
As shown below in Table 1, a 7-year U.S. Treasury currently yield 4.1 percent, compared to 3.9 percent for a 5-year or 3.8 percent for a 3-year.

These yields exceed the current core inflation rate, which remains around 3.0 percent per the latest CPI information. The ability to invest at the longer end of the yield curve allows the City to protect purchasing power and generate consistent income while maintaining a high level of safety and credit quality.

Table 1: Treasury market rates as of May 2, 2025 *
Treasury Notes Market Yield
7-Year Note 4.107%
5-Year Note 3.920%
3-Year Note 3.813%
2-Year Note 3.832%
1-Year Note 4.002%
*Note: It is important to note that interest rates fluctuate daily and are unlikely to match exactly the rates shown in Table 1.

Alignment with the City's Investment Approach: The City does not invest in equities. Instead, our investment portfolio is composed of high-quality fixed-income securities, structured to prioritize safety and long-term stability. Investments in the longer-term portfolio are typically held to maturity. Expanding the allowable maturity for certain high-quality securities aligns with this conservative approach and enhances both portfolio diversification and income stability.

Limited to High-Quality Securities: The proposed change applies only to the most secure investment types: U.S. Treasury obligations (backed by the full faith and credit of the federal government), U.S. Federal Agency obligations, and State and Local Municipal obligations.

Portfolio Diversification with Risk Control: The proposed change includes a 10 percent cap on securities with maturities beyond five years. This ensures that while the City can take advantage of higher long-term yields, the overall portfolio duration remains balanced, and risk exposure is managed within acceptable limits.

Support Fund Reserve Structure: All major City funds, including the General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds, maintain long-term reserves. Investing a portion of these reserves in longer-duration, high-quality securities is financially prudent and aligned with the long-term nature of the City’s reserve structure.

Next Steps
Under Government Code Section 53601, investments with maturities beyond five years require the City Council to grant express authority to make the investment either specifically or as part of an investment program. If the proposed Resolution and Amendments to the Investment Policy are approved by the City Council, the City will be authorized to purchase longer term securities as part of its investment program after a 90-day (three-month) waiting period.

BUDGET IMPACT:

Approval of the proposed changes to the City's Investment Policy for 2025 will not have an immediate budgetary impact.

ENVIRONMENTAL DETERMINATION:

Approval of the City’s 2025 Investment Policy is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution

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CITY OF SAN MATEO
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5 6
Att 2 – 2025 Investment Policy (redline)
Att 3 – 2025 Investment Policy (clean version)

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

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6 CITY OF SAN MATEO
RESOLUTION NO. ________ (2025)

ADOPTING THE INVESTMENT POLICY FOR THE CITY OF SAN MATEO

AND AUTHORIZING INVESTMENTS IN UNITED STATES TREASURY OBLIGATIONS,

UNITED STATES FEDERAL AGENCY OBLIGATIONS, AND STATE AND LOCAL MUNICIPAL

OBLICAITONS WITH A MAXIMUM MATURITY UP TO SEVEN YEARS AND AN AGGREGATE AMOUNT NOT TO EXCEED TEN PERCENT OF THE CITY’S INVESTMENT PORTFOLIO AT THE

TIME OF PURCHASE
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, it is the City’s practice to bring the investment policy to the City Council annually for review and approval regardless of whether there are proposed changes; and
WHEREAS, Government Code Section 53601 limits investments with maturities beyond five years unless express authority is granted by the governing body either for a specific investment or as part of an investment program; and
WHEREAS, based on the current market environment and long-term reserve structure of City funds, staff recommends extending the maximum maturity from five years to seven years for specific high-quality fixed-income securities, in order to better align with the City’s long-term reserve structure and investment strategy; and
WHEREAS, the proposed amendments to the Investment Policy authorize such longer-term investments only in the following three categories: United States Treasury obligations, United States Federal Agency obligations, and State and Local Municipal obligations; and WHEREAS, the proposed amendment also establishes that the aggregate amount of investments beyond five years shall not exceed ten percent (10%) of the total City investment portfolio at the time of purchase.

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

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6 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 City of San Mateo 2025 Investment Policy, including the proposed amendments to extend the maximum maturity for certain securities from five (5) years to seven (7) years, with a ten percent (10%) cap, is hereby approved and adopted.

3. Pursuant to Government Code Section 53601, the City Council grants express authority for the City to invest in United States Treasury obligations, United States Federal Agency obligations, and State and Local Municipal obligations with maturities not to exceed seven (7) years, provided that the aggregate amount of such investments not exceed ten percent (10%) of the City’s investment portfolio at the time of purchase.

4. The authority granted pursuant to this Resolution shall take effect ninety (90) days from the date of this resolution.

5. The City Treasurer, or designee, is authorized to take any and all actions necessary to implement this resolution and to manage the investment program in accordance with the approved Investment Policy and applicable law.

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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.
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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 fiveseven 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 fiveseven 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 fiveseven 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. Effective August 20, 2025, the City is authorized to invest in U.S. Treasury obligations, Federal agency debts, and municipal securities with maturities up to seven years.

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.
oIf 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. oIf 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

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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:
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. Investments with maturities longer than five (5) years are limited to no more than ten percent (10%) of the total investment portfolio.

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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THE CITY OF SAN MATEO

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

B. Liquidity Standard
The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
2025

INVESTMENT POLICY

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

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

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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 seven years.

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

Reverse repurchase agreements will not be permitted.

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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.

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.

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

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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).

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 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

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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.

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 14 Section Name: CONSENT CALENDAR Account Number: 10-4664 File ID: 25-9850 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: May 19, 2025
SUBJECT:

Citywide Curb Painting, AB413 Red zones, Markers, Delineators, and Striping Services – Amendment RECOMMENDATION:

Approve Amendment No. 1 to the Agreement with Quality Striping, Inc. for thermoplastic, painting, and marking services to increase the Agreement amount by $230,000, for a total revised Agreement amount of $320,000; update the payment rates; extend the term through June 30, 2026; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue no-cost time extensions.

BACKGROUND:

The Field Maintenance Division in the Public Works Department is responsible for maintaining striping, markings, and painted curbs (red, yellow, white, green, or blue) throughout the City. Additional contractor support for markers, delineators, and thermoplastic striping services allows the City to respond promptly to deteriorated or missing striping and pavement markings. Striping and pavement markings are essential for maintaining roadway safety and efficient traffic operations, and for providing safety for pedestrians, especially in and around school zones. These include, but are not limited to, centerlines, lane lines, stop bars, crosswalks, and directional arrows. Due to factors such as vehicular traffic, weather conditions, and regular wear, pavement markings deteriorate over time and require periodic maintenance to remain visible and effective.

In addition to ongoing maintenance needs, the City has recognized the need to replace the striping along the Peninsula Avenue Corridor, which is shared with the City of Burlingame. Striping and pavement marking work will generally be limited to the City of San Mateo right of way, which is located on the south half of the street. If work extends to Burlingame’s side of the street, staff will coordinate with the City of Burlingame for reimbursement.

The need for curb markings recently increased with California Assembly Bill 413 (AB413), which became effective January 1, 2025, introduced a "daylight" requirement aimed at enhancing pedestrian safety by improving visibility at intersections.

Starting January 1, 2025, it became illegal in California to park within 20 feet of the vehicle approach of any marked or unmarked crosswalk, even if a red curb is not present, or 15 feet of any crosswalk where a curb extension is present. The City will be installing new red curb markings as a result of the new law. Installation will focus on areas with high pedestrian-activity, commercial areas, schools, parks, and high priority locations identified in the adopted Local Road Safety Plan. Street parking will be removed for new red curb markings where there is existing parking next to the crosswalk. Over the next few months, residents should expect to see new red curb markings. However, vehicles may not park within 20 feet of a crosswalk regardless of whether the curb is painted red. Marking those zones with a red curb makes it clear to drivers that they cannot park there, supporting both enforcement and public awareness.

Funds for the current agreement have been exhausted, but there are remaining striping and marking needs for the fiscal

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year. Amending the contract will allow the City to more quickly address priority striping, pavement marking, and curb marking work this fiscal year as well as next fiscal year.

Based on the above, staff recommends approval of Amendment No. 1 with Quality Striping Inc. to increase the Agreement amount by $230,000, for a new total Agreement amount of $320,000, in order to meet the Manual on Uniform Traffic Control Devices (MUTCD) safety requirements, and the AB413 safety requirement. The Public Works Department must maintain proper road marking, curb marking and delineations for public safety. Public Works has been using Quality Striping, Inc. to assist in completing all overflow work, which has completed all work in a timely manner to the City's specifications consistently.

BUDGET IMPACT:

Sufficient funds have been identified in the FY 2024-25 Field Maintenance operating budget for transportation and traffic maintenance to support this amendment to increase the agreement. Approximately $140,000 of this increase will be funded from anticipated budget savings in salaries and other contractual services in the current fiscal year. Funding for these services in subsequent years has been incorporated into the baseline budget through the budget development process.

ENVIRONMENTAL DETERMINATION:

Approval of Amendment No. 1 for thermoplastic, striping, and pavement marking services 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 – Amendment No. 1

STAFF CONTACT
Tony Baltodano, Field Maintenance Manager
[email protected]
(650) 522-7359

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Contract Amendment Page 1 of 2
CAO Approved June 2024
AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
QUALITY STRIPING, INC. FOR

THERMOPLASTIC, PAINTING, AND MARKING SERVICES
($90,000.00 [Original Amount]; $230,000.00 [Amendment No. 1]) This Amendment is made and entered into this day of ______________ by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and Quality Striping, Inc. ("CONTRACTOR").

WHEREAS, on October 21, 2024, CITY and CONTRACTOR entered into an Agreement for thermoplastic, painting, and marking services; and
WHEREAS, CITY and CONTRACTOR wish to amend the Agreement effective upon execution of this Amendment to increase the Agreement amount by $230,000, for a new total Agreement amount of $320,000, update the payment rates, and to extend the term of the Agreement to June 30, 2026.

NOW
, THEREFORE, the Parties agree as follows:

1. Sect
ion 4 – “Term” of the Agreement is amended to read:
“The s
ervices to be performed under this Agreement shall commence on the date of execution of the Agreement and be completed on June 30, 2026.”

2. Sect
ion 5 – “Payment” of the Agreement is amended to read:
“Payme
nt shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR in an amount not to exceed $320,000, a fee pursuant to rates stated in Exhibit B-1, attached and incorporated by reference.”

3. Exhi
bit B is hereby replaced with Exhibit B-1, attached and incorporated by reference.

4. The
remaining terms of the Agreement remain in full force and effect. [SIG
NATURE PAGE FOLLOWS]

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Contract Amendment Page 2 of 2
CAO Approved June 2024
IN WITNESS WHEREOF, CITY OF SAN MATEO and CONTRACTOR have executed this Amendment No. 1 on _________________.

CITY OF SAN MATEO Quality Striping, Inc.

Matt Fabry
Public Works Director
Date Teri Seright
President
Date

APPROVED AS TO FORM
Linh Nguyen
Assistant City Attorney
Date
Attachments:

Exhibit B-1: Payment Rates

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Exhibit B-1

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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: 15 Section Name: CONSENT CALENDAR Account Number: 10-3133 File ID: 25-9926 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: May 19, 2025
SUBJECT:
2000 South Delaware Affordable Housing Development – Agreements RECOMMENDATION:

Approve the subordination of specified sections of the City Regulatory Agreement with MP Delaware LLC for the 2000 South Delaware Affordable Housing Development to the Deed of Trust of the senior lender, Housing Trust Silicon Valley, and authorize the City Manager to execute a Subordination Agreement and other agreements associated with this transaction that do not differ from the term sheet approved by the City Council on August 19, 2024.

BACKGROUND:
2000 South Delaware Acquisition by MidPen Housing
2000 South Delaware (2000 S. Delaware) is a 60-unit affordable housing development located at 2000 South Delaware St. in San Mateo on City-owned land. It was previously owned and operated by Westlake Reality Group, until it was acquired by MidPen Housing in September 2024.

On August 19, 2024, the City Council approved the reassignment of the Ground Lease for 2000 S. Delaware from Westlake Realty Group to MidPen Housing (as MP Delaware LLC) and a term sheet (Term Sheet) outlining the terms of a loan commitment of $500,000 that the City would provide in exchange for deepening the affordability of the units from moderate-income to low income (at or below 80 percent of Area Median Income, AMI).

With the $500,000 City Loan, MidPen Housing was able to close the financing gap required to acquire 2000 S. Delaware from Westlake Realty Group and lower the affordability level of the units. The full cost of the acquisition was financed by a loan from Housing Trust Silicon Valley (HTSV) in the amount of $17.6 million and a loan from MidPen Housing in the amount of $5.95 million. MidPen Housing closed on the HTSV and MidPen loans and recorded an Assignment and First Amendment of Ground Lease with Westlake Realty and the City on September 30, 2024.

On December 9, 2024, the City Council adopted a Resolution appropriating $500,000 from the City’s General Fund Housing Set-Aside for the loan and authorized the City Manager to execute all documents associated with this transaction. This included an Amended and Restated Ground Lease and a Regulatory Agreement, which guarantees the affordability of the units for households at or below 80 percent AMI for a 55-year term. The City executed these agreements with MidPen Housing prior to the end of December 2024.

City Regulatory Agreement
The City’s practice is to ensure that its regulatory agreements remain in “first position” in the recording order. Exceptions to this, such as allowing it to be subordinated to other public agencies’ regulatory agreements, are described in the provisions of the Regulatory Agreement. The Regulatory Agreement does not contemplate being subordinated to another lender’s Deed of Trust. The purpose of preventing this is to safeguard the ongoing affordability of the development in the

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event of a foreclosure or default by the borrower (MidPen Housing).

Typically, a regulatory agreement, ground lease, loan agreement, and associated documents from all lenders would be executed and recorded as part of the same loan closing. In this case, MidPen Housing’s acquisition involved multiple transactions, with staggered closing dates. When the Regulatory Agreement was recorded in December 2024, this was done separately from the other documents related to 2000 S. Delaware. The Regulatory Agreement was not recorded in first position but was placed below the HTSV and MidPen Deeds of Trust, which was already recorded as part of the October 2024 transaction.

HTSV has informed the City that it is not willing to allow its Deed of Trust to be fully subordinate to the City’s Regulatory Agreement. To enable the City to close with MidPen and HTSV and release the $500,000 in loan funds to MidPen, staff recommends executing a subordination agreement with HTSV (HTSV Subordination Agreement) that allows the Regulatory Agreement to be subordinated to the HTSV Deed of Trust, but that also identifies the specific affordability provisions of the Regulatory Agreement that will not be subordinated. The City will execute a separate subordination agreement with MidPen (MidPen Subordination Agreement) that subordinates the MidPen Housing Deed of Trust to the entire Regulatory Agreement.

Next Steps
If approved by the City Council, the City Manager will execute the remaining documents, including the HTSV Subordination Agreement, which specifies that the affordability provisions will not be subordinated to the HTSV Deed of Trust, and the MidPen Subordination Agreement. There are additional documents that will require execution and recordation as part of the closing, but these do not affect the original terms of the transaction with MidPen Housing as approved by the City Council.

HTSV has also requested changes to the Amended and Restated Ground Lease between the City and MidPen Housing related to the rights of the lender in the case of a default or bankruptcy by MidPen Housing. The new language requires the City to enter into a new ground lease with the “leasehold mortgagee” (the lender); the previous language stated that the City will “consider entering into” a new ground lease. This does not affect the original terms approved by the City Council between the City and MidPen but has been noted here for the awareness of City Council.

BUDGET IMPACT:

There is no impact to the General Fund from this action. $500,000 was previously appropriated by the City Council via Resolution to provide in the form of a loan to MidPen Housing. No additional funds are required to close this transaction.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Housing Trust Silicon Valley Subordination Agreement (updated 5.19.2025)

STAFF CONTACT
Rachel Horst, Housing Manager
[email protected]
(650) 522-7223

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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

HOUSING TRUST SILICON VALLEY
75 E. Santa Clara Street, Suite 1350
San Jose, CA 95113
Attn: Multifamily Housing Dept.

Ref: 2000 Delaware
San Mateo, California

SUBORDINATION AGREEMENT
THIS SUBORDINATION AGREEMENT (this “Agreement”) is dated as of May 22, 2025, by and among HOUSING TRUST SILICON VALLEY, a California nonprofit public benefit corporation (“ Lender”), CITY OF SAN MATEO , a California charter city (“Subordinate Lender ”), and MP 2000 DELAWARE LLC , a California limited liability company (“Borrower”).

RECITALS:

A. Lender has previously made a loan in the amount of $17,600,000.00 (the “Senior Loan”) to the Borrower, as evidenced by that certain Promissory Note Secured by Deed of Trust dated September 13, 2024 (the “Senior Note”), executed by Borrower and payable to the order of Lender, and secured by, among other things, that certain Leasehold Deed of Trust with Assignment of Rents, Security Agreement, and Fixture Filing dated September 13, 2024 and recorded on September 30, 2024 as Instrument No. 2024-051499 in the Official Records of the County of San Mateo (the “Senior Deed of Trust”), covering the property described in Exhibit A attached hereto and incorporated herein by this reference, together with all improvements thereon and personal property used relative thereto, all as more particularly des cribed in the Senior Deed of Trust ( the “Collateral”). The Senior Note, the Senior Deed of Trust and any and all other documents evidencing or securing the Senior Loan as the same may be from time to time amended, extended, restated, replaced, supplemented, increased, consolidated, decreased, renewed or otherwi se modified are hereinafter collectively referred to as the “Senior Loan Documents”.

B. Contemporaneously herewith, Subordinate Lender has made a loan in the aggregate amount of $500,000.00 (the “Subordinate Loan” ) to Borrower, as evidenced by that certain Promissory Note dated of even date herewith (the “Subordinate Note”), executed by Borrower and payable to the order of Subordinate Lender, and secured by, among other things, that certain Deed of Trust with Assignment of Rents, Security Agreement , and Fixture Filling of even date herewith (the “ Subordinate Deed of Trust ”), covering the property described in Exhibit A attached hereto and incorporated herein by this reference, together with the Collateral.

C. In addition to the Subordinate Deed of Trust, Subordinate Lender recorded a Regulatory Agreement and Declaration of Restrictive Covenants on December 20, 2024 as Instrument No. 2024- 068650 in the Official Records of the County of San Mateo (the “Subordinate Regulatory Agreement”). The Subordinate Deed of Trust, the Subordinate Note,

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the Subordinate Regulatory Agreement and together with the unrecorded loan documents executed by Borrower in connection with the Subordinate Loan, shall be collectively referred to herein as the “Subordinate Loan Documents .” Notwithstanding the foregoing, Sections 1.1(a),

1.1(b), 1.1(c), 1.1(h), 1.1(i), 1.1(l), 1.1(m), 1.1(n), 1.1(p), 1.1(q), 1.1(r), 1.1(s), 1.1(t), 1.1(x),

1.1(y), 1.1(z), 1.1(bb), 2.1, 2.2, 2.3, 2.4, 2.6, 2.7, 3.1 and 3.2 of the Subordinate Regulatory Agreement set forth certain affordabi lity provisions regarding residential units of the Collateral , which shall be senior to the Senior Loan Documents (the “Senior Regulatory Provisions”).

D. It is a condition precedent to making the Senior Loan, that the Senior Loan Documents and Lender ’s rights to payments under the Senior Loan Documents shall unconditionally be and remain at all times a lien or charge upon the Collateral, prior and superior to the Subordinate Loan Documents and any and all rights, restrictions, agreements, liens and charges in favor of Subordinate Lender and the Subordinate Lender’s right to payments under the Subordinate Loan Documents.

E. Lender is willing to make its Senior Loan, provided the condition precedent described above is satisfied and that Subordinate Lender will specifically and unconditionally subordinate the Subordinate Loan Documents, the Subordinate Lender ’s right to payments under the Subordinate Loan Documents, and any and all other rights, restrictions, agreements, liens and charges in favor of Subordinate Lender to the liens and charges of the Senior Loan Documents and Lender’s right to payments under the Senior Loan Documents.

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lender and Subordinate Lender do herein and hereby agree as follows:

1. Certification by Subordinate Lender. Subordinate Lender hereby certifies and warrants to Lender that the following information is true and complete as of the date hereof:
(a) The Subordinate Deed of Trust (any UCC-1 financing statements recorded and filed in connection therewith) are the only document s securing the Subordinate Loan and the Subordinate Regulatory Agreement is the only document restricting the use of the Collateral; (b) Subordinate Lender has never assigned any interest (whether collateral or otherwise) in or to the Subordinate Deed of Trust and/or the Subordinate Regulatory Agreement; (c) No default or event of default has been declared by Subordinate Lender under the Subordinate Deed of Trust;
(d) The term of the Subordinate Loan does not end before the stated term of the Senior Loan; and
(e) The Subordinate Loan Documents ha ve not been amended, modified, assigned or superseded.

2. Reliance. Lender would not make the Senior Loan to the Borrower without this Agreement. Accordingly, Subordinate Lender intentionally and unconditionally enters into the

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covenants and agreements as set forth herein, and understands that, in reliance upon and in consideration of such covenants and agreements, the Senior Loan shall be made and, as part and parcel thereof, specific monetary and other obligations have been, are being and shall be entered into which would not be made or entered into but for such reliance.

3. Priority of Senior Note and Senior Deed of Trust. Notwithstanding the time of the recording of the Senior Deed of Trust, and notwithstanding anything to the contrary whatsoever contained in the Subordinate Deed of Tru st and the Subordinate Regulatory Agreement , all of Subordinate Lender’s rights and remedies under the Subordinat e Deed of Trust and Subordinate Regulatory Agreement (excluding the Senior Regulatory Provisions) are hereby expressly made subject and subordinate in all respects including, without limitation, subordinate in lien, operation, and distribution, and subordinate in payment to the Senior Note and the Senior Deed of Trust (including, without limitation, any future advances by Lender to protect the Collateral or Lender’s lien thereon or rights thereto), and to all of Lender ’s rights and remedies under the Senior Loan Documents and to the Collateral. In addition, in furtherance of and without limiting the foregoing, Subordinate Lender agrees that:
(a) All rights of Subordinate Lender under the Subordinate Deed of Trust and under any of the other Subordinate Loan Documents in and to the Collateral and the proceeds thereof (including, without limitation, any rights with respect to leases, rents, insurance proceeds and condemnation awards) shall be expressly subject and subordinate to the rights of Lender in and to the Collateral and the proceeds thereof (including, without limitation, any rights with respect to leases, rents, insurance proceeds and condemnation), and to any other expenses incurred under and as permitted in the Senior Loan Documents.
(b) Subordinate Lender declares, agrees and acknowledges that Subordinate Lender consents to and approves all provisions of the Senior Note, the Senior Deed of Trust and each of the other Senior Loan Documents.
(c) Subordinate Lender hereby expressly consents to and authorizes, at the option of Lender and without any further consent of or notice to Subordinate Lender , the amendment, extension, restatement, refinance, or other modification, in whole or in part, of all or any of the Senior Loan Documents, including without limitation, increasing or decreasing the stated principal amount of the Senior Note, increasing or decreasing the interest rate payable under the Senior Note or altering any other payment terms under the Senior Note. Notwithstanding any provision of this Agreement to the contrary, any reference herein to the “ Senior Deed of Trust,” “Senior Loan Documents ” or “Senior Note” is deemed to include and refer to any renewal, replacement, amendment, modification, refinancing, extension, substitution or consolidation thereof whether by Lender, any successor or assign of Lender, or any other person or entity. (d) Subordinate Lender hereby agrees that Subordinate Lender shall not agree to, and the Subordinate Deed of Trust and the Subordinate Regulatory Agreement shall not be deemed to be evidence of approval by Lender of, any encumbrance on the Collateral or any increases in the amount evidenced by the Subordinate Deed of Trust. No further advances shall be provided by Subordinate Lender to the Borrower whether pursuant to the Subordinate Deed of Trust or otherwise.

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(e) If, notwithstanding the provisions of this Agreement, any payment, distribution or security of any character (whether in cash, securities or other property) shall be received by the Subordinate Lender out of or in connection with the Subordinate Deed of Trust or the Subordinate Regulatory Agreement before all of the Senior Loan shall have been paid in full, such payment, distribution or security, as applicable, shall not be commingled with any asset of Subordinate Lender, shall be held in trust for the benefit of, and shall be delivered over or delivered and transferred to, Lender or its representative, for application to the payment of the Senior Loan remaining unpaid, until all of the Senior Loan shall have been paid in full. Subordinate Lender is not and shall not be permitted to receive or apply payments against the Subordinate Deed of Trust or the Subordinate Regulatory Agreement until such time as all obligations under the Senior Loan Documents have been fully satisfied and the Senior Loan has been paid in full (the “Release Event”). Anything hereinabove to the contrary notwithstanding, Subordinate Lender shall be entitled to any regular installments of principal and interest under the Subordinate Note in accordance with the terms of the Subordinate Note. Subordinate Lender agrees that from and after such time as it has received from either Lender or Borrower written notice that a default or Event of Default (as defined under the Senior Loan Documents) then exists (which has not been expressly waived in writing by Lender) or otherwise has actual knowledge of such a default or Event of Default, Subordinate Lender shall not receive or accept any payments under the Subordinate Loan. (f) Subordinate Lender shall be bound by any consents or waivers made by Lender, and Subordinate Lender, hereby waives any and all rights of consent or approval with regard to any matters covered by or under the terms of the Senior Loan Documents. (g) In the event of an extension of the term of the Senior Loan, Subordinate Lender hereby agrees to extend the term of the Subordinate Loan for a corresponding or greater period of time.
(h) Subordinate Lender hereby agrees to deliver to Lender copies of any and all notices received by it or its agents in connection with the Subordinate Deed of Trust. Subordinate Lender hereby grants to Lender the right, but not the obligation, to cure any default under the Subordinate Deed of Trust, and the Subordinate Lender also accepts all such performance by Lender.

4. Certain Actions Regarding Subordinate Deed of Trust. Until the Release Event has occurred, Subordinate Lender shall not take any of the following actions with respect to the Subordinate Deed of Trust, without the prior written consent of Lender:
(a) Declare a default under the Subordinate Deed of Trust or the other Subordinate Loan Documents , accelerate all or any portion of any monies due pursuant to the Subordinate Deed of Trust or the other Subordinate Loan Documents , or exercise any of its remedies under the Subordinate Deed of Trust;
(b) Commence any legal proceedings against the Borrower; (c) Consent to any amendment, extension, restatement, replacement, supplement, increase, consolidation, renewal or modification of the Subordinate Deed of Trust;

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(d) Assign, convey, sell, hypothecate or transfer any interest whatsoever in the Subordinate Deed of Trust directly or indirectly (including, without limitation, by means of a transfer of ownership interests in Subordinate Lender), whether such interest be collateral in nature (e.g., pledges or grants of security interests) or absolute; (e) Commence or consent to any bankruptcy, insolvency, reorganization or similar proceeding by or against the Borrower; or
(f) Except as set forth in Section 3(e) above, accept any payments under the Subordinate Deed of Trust.

Any consent required of Lender in this Agreement may be given or withheld in the sole and absolute discretion of Lender. The Subordinate Lender shall have no rights to any proceeds of a refinancing of the Senior Loan in which rights under the Senior Loan Documents are sold or transferred or the Senior Loan is replaced, until such time as the entire indebtedness evidenced or secured by the Senior Loan Documents and all other sums evidenced or secured by the Senior Loan Documents have been paid in full. The Subordinate Lender acknowledges and agrees that any assignment or assignments of the Senior Loan and/or the Senior Loan Documents in connection with a sale by Lender of the Senior Loan (by itself or with other loans) shall not be deemed to be a repayment of the Senior Loan for purposes of this Agreement.

5. Bankruptcy Issues.
(a) This Agreement shall be applicable both before and after commencement, whether voluntary or involuntary, of any case by or against the Borrower under the United States Bankruptcy Code (as amended from time to time, the “Bankruptcy Code”) and all references herein to the Borrower shall be deemed to apply to the Borrower as a debtor-in-possession and to any trustee in bankruptcy for the estate of the Borrower. (b) In the event Lender is required under any bankruptcy or other law to return to the Borrower, Borrower’s bankrupt estate, any third party or any trustee, receiver or other similar representative of the Borrower any payment or distribution of assets, whether in cash, property or securities, including, without limitation any Collateral or any proceeds of the Collateral previously received by Lender on account of the Senior Loan Documents (a “Reinstatement Distribution”), then to the maximum extent permitted by law, this Agreement and the subordination of the Subordinate Note shall be reinstated with respect to any such Reinstatement Distribution. Lender shall not be required to contest its obligation to return such Reinstatement Distribution. (c) The Subordinate Lender hereby agrees that the Subordinate Lender shall not make any election, give any consent, commence any action or file any motion or take any other action in any case by or against Borrower under the Bankruptcy Code without the prior written consent of Lender . The Subordinate Lender hereby appoints Lender as its agent, and grants to Lender an irrevocable power of attorney coupled with an interest, and its proxy, for the purpose of exercising any and all rights and taking any and all actions available to the Subordinate Lender in connection with any case by or against Borrower under the Bankruptcy Code, including without limitation, the right to vote to accept or reject a plan, to file a claim, to make any election under Section 1111(b) of the Bankruptcy Code with respect to the Subordinate Deed of Trust or the Subordinate Regulatory Agreement and to file a motion to modify the automatic stay with respect

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to the Subordinate Loan. The Subordinate Lender hereby agrees that, upon the request of Lender, the Subordinate Lender shall do, execute, acknowledge and deliver to Lender all and every such further acts, deeds, conveyances and instruments as Lender may request for the better assuring and evidencing of the foregoing appointment and grant.

6. Subordinate Lender Notice and Cure . Lender hereby agrees to deliver to the Subordinate Lender copies of any default notice given by it or its agents in connection with the Senior Deed of Trust. Lender hereby grants to the Subordinate Lender the right, but not the obligation, to cure any default under the Senior Deed of Trust within thirty (30) days of Lender ’s delivery of a default notice to the Subordinate Lender, and the Lender also accepts all such performance by the Subordinate Lender.

7. Lender Notice and Cure. Subordinate Lender hereby agrees to concurrently deliver to Lender at the address set forth above copies of any default notice given by it or its agents to Borrower in connection with the Subordinate Deed of Trust. Subordinate Lender hereby grants to Lender the right, but not the obligation, to cure any default under the Subordinate Deed of Trust within sixty (60) days of Subordinate Lender’s delivery of a default notice to Lender (the “ Cure Period”), and the Subordinate Lender also accepts all such perfor mance by Lender. If the cure is completed within the Cure Period, Subordinate Lender will rescind any notice of default and accept all payments and acts done by Lender on behalf of Borrower within the Cure Period as though the same had been timely done and performed by Borrower, so that such acts and payments shall fully and totally cure and correct all such defaults, breaches, failures or refusals for all purposes.

8. Survival of the Senior Regulatory Provisions . Lender and Subordinate Lender hereby expressly agree that, notwithstanding anything to the contrary set forth elsewhere herein, the Senior Regulatory Provisions are senior in priority to and not subordinated to the Senior Deed of Trust and that following a foreclosure under the Senior Deed of Trust (a “Foreclosure Action”), the Senior Regulatory Provisions shall survive and the successor owner of the Collateral shall acquire the Collateral subject to all of the terms and conditions of the Senior Regulatory Provisions, except as otherwise expressly provided below:
(a) No successor owner shall be obligated under the Senior Regulatory Provisions to make any payment under, or to otherwise comply with, any of the Subordinate Loan Documents;
(b) No successor owner would be obligated to pay, or otherwise have any liability for or in connection with, any claim by Subordinate Lender for liquidated damages, for indemnification or for damages in connection with any breach of any term or provision of the Senior Regulatory Provisions f irst occurring prior to the date upon which such successor owner acquired title to the Collateral, except to the extent such breach continues after such successor owner acquires title to the Collateral subject to such succes sor owner having a reasonable period of time to comply with the Senior Regulatory Provisions and subject further to any applicable notice and cure periods under the Senior Regulatory Provisions or such longer notice and cure period consented to by the Subordinate Lender in writing; (c) No successor owner shall be required to cure any default under the Senior Regulatory Provisions first occurring prior to the date upon which such successor owner acquired title to the Collateral, except to the extent such default continues after such successor owner

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acquires title to the Collateral subject to such successor owner having a reasonable period of time to comply with the Senior Regulatory Provisions and subject further to any applicable notice and cure periods under the Senior Regulatory Provisions or such longer notice and cure period consented to by the Subordinate Lender in writing; and
(d) The Subordinate Lender, after a Foreclosure Action, shall not unreasonably withhold, delay or condition any consent or approval contemplated hereunder.

9. Miscellaneous Provisions:
(a) Entire Agreement; Amendment; Severability. This Agreement contains the entire agreement between the parties respecting the matters herein set forth and supersedes all prior agreements, whether written or oral, between the parties respecting such matters. Any amendments or modifications hereto, in order to be effective, shall be in writing and executed by the parties hereto. A determination that any provision of this Agreement is unenforceable or invalid shall not affect the enforceability or validity of such provision as it may apply to any other persons or circumstances.
(b) Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of California, except to the extent that the applicability of any of such laws may now or hereafter be preempted by federal law, in which case such federal law shall so govern and be controlling. Subordinate Lender, to the full extent permitted by law, hereby knowingly, intentionally and voluntarily, with and upon the advice of competent counsel, (i) submits to personal jurisdiction in t he State of California over any suit, action or proceeding by any person arising from or relating to this Agreement, (ii) agrees that any such action, suit or proceeding may be brought in any state or federal court of competent jurisdiction sitting in Santa Clara County, California, (iii) submits to the jurisdiction of such courts, and (iv) to the fullest extent permitted by law, agree s that it will not bring any action, suit or proceeding in any other forum (but nothing herein shall affect the right of lender to bring any action, suit or proceeding in any other forum). Subordinate Lender hereby further irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with this agreement sitting in Santa Clara County, California, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Subordinate Lender absolutely and unconditionally waives and relinquishes, for the benefit and reliance of Lender, any and all rights or claims that Subordinate Lender might have to require the marshalling of assets under the Senior Deed of Trust or to assert any and all principles of equitable subordination or alteration of priorities of the Senior Deed of Trust. (c) Assigns. The terms, provisions and conditions of this Agreement shall be binding upon Subordinate Lender, Lender and the successors and assigns of either; provided, however, nothing in this Section 9(c) shall be deemed to waive or diminish in any respect Subordinate Lender’s obligations pursuant to Section 4(d) above. (d) Further Assurances. Subordinate Lender agrees, within te n (10) business days after request by Lender , to execute such other documents (whether in recordable form or otherwise) as may be requested by Lender to further evidence the subordination and other

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agreements effectuated hereby. The Subordinate Lender hereby appoints Lender as its agent, and grants to Lender an irrevocable power-of-attorney coupled with an interest, and its proxy, for the purpose of exercising any and all rights and taking any and all actions in respect of the Subordinate Deed of Trust and/or the Subordinate Regulatory Agreement and in furtherance of this Agreement, in the name of the Subordinate Lender, with the same force and effect as the Subordinate Lender could do if this Agreement had not been made.
(e) No Third Party Beneficiaries; Securitization . It is expressly agreed and understood that each and every certificate and agreement of Subordinate Lender in this Agreement are for the benefit of Lender and subsequent owners or holder of the Senior Loan Documents. No third party shall be entitled to rely on any agreements or certifications provided herein to any extent whatsoever.
(f) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery and thereafter shall be deemed an original, and all of which shall be taken to be one and the same instrument, for the same effect as if all parties hereto had signed the same signature page. Any signature of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more additional signature pages. (g) WAIVER OF JURY TRIAL. SUBORDINATE LENDER, TO THE FULL

EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND

VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES

AND RELINQUISHES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR

PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS

AGREEMENT OR ANY CONDUCT, ACT OR OMISSION OF LENDER OR SUBORDINATE

LENDER OR ANY OF THEIR DIRECTORS, OFFICERS, PARTNERS, MEMBERS,

EMPLOYEES, AGENTS OR ATTORNEYS, OF ANY OTHER PERSONS AFFILIATED WITH

LENDER OR SUBORDINATE LENDER IN EACH OR THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.
(h) Estoppel Certificates. Subordinate Lender agrees that it shall, from time to time, upon the demand of Lender, furnish Lender with estoppel certificates pursuant to which the Subordinate Lender shall certify to Lender the matters set forth in Section 1 above remain true and correct and such other matters as Lender may reasonably require. (i) Costs and Expenses . As between Lender , on the one hand, and the Borrower and Subordinate Lender, on the other hand, the Borrower and Subordinate Lender shall be jointly and severally liable to pay any and all costs and expenses incurred by Lender in reviewing any matter requiring its approval hereunder (including, without limitation, the reasonable fees and expenses of counsel to Lender).
(j) No Partnership. This Agreement shall not in any respect be interpreted, deemed or construed as making Subordinate Lender a partner or joint venturer with any other person or entity, including, without limitation, Lender or Borrower, nor shall it be construed as making Subordinate Lender the agent or representative of Lender or Borrower nor Lender or Borrower the agent or representative of Subordinate Lender.

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(k) Severability. In the event that any provision of this Agreement or the application hereof to any party hereto shall, to any extent, be invalid or unenforceable, under any applicable statute, regulation or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute, regulation or rule of law, and the remainder of this Agreement and the application of any such invalid or unenforceable provisions to parties, jurisdictions or circumstances other than to whom or to which it is held, invalid or unenforceable, shall not be affected thereby nor shall same affect the validity of enforceability of any other provision of this Agreement. (l) Conflict. In the event of any conflict between the provisions of this Agreement on the one hand, and the Subordinate Deed of Trust and/or Subordinate Regulatory Agreement on the other hand, the provisions of this Agreement shall control. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK –
SIGNATURES ON FOLLOWING PAGES]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date hereinabove written.

SUBORDINATE LENDER:

CITY OF SAN MATEO,
a California charter city

By: ________________________________
Name: Alex Khojikian
Its: City Manager

APPROVED AS TO FORM:

By: ________________________________
Name: Prasanna W. Rasiah
Its: City Attorney

A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of ______________________ )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

[signatures continue on following pages.]

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LENDER:

HOUSING TRUST SILICON VALLEY,
a California nonprofit public benefit corporation

By: _______________________
Name: _______________________
Title: _______________________

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

[signatures continue on following pages.]

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BORROWER:

MP 2000 DELAWARE, LLC,
a California limited liability company

By: Mid-Peninsula Greenridge, Inc.,
a California corporation,
its sole member/manager

By:

Name:

Its:

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

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EXHIBIT A
(Legal Description)
Leasehold estate as created by that certain ground lease dated _______________, made by and between the CITY OF SAN MATEO, a municipal corporation, AS SUCCESSOR TO THE

HOUSING ASSETS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN MATEO PURSUANT TO PART 1.85 OF DIVISION 24 OF THE HEALTH AND SAFETY CODE, IN PARTICULAR, SECTION 34176 OF THE HEALTH AND SAFETY CODE, as landlord, and MP 2000 DELAWARE, LLC, as tenant, upon the terms and conditions contained in said lease, as memorialized in that certain Memorandum of Lease thereof recorded ____________ under Instrument No. ________________ , in Official Records, more particularly described as follows:

Parcel One:

Parcel B as shown on the parcel map entitled, "PARCEL MAP 433" filed April 23, 2012, in Book 80 of Parcel Maps, Pages 30 and 31 , Official Records of San Mateo County.

Parcel Two:

A non-exclusive easement for access, ingress and egress, parking, utilities, and incidental purposes as more particularly described in that certain Joint Use, Easement and Maintenance Agreement for 1990-2000 South Delaware dated April l , 20 1 2, and recor ded May 2, 2012, as Instrument No. 2012-61779, in the Official Records of San Mateo County.

APN: 035-320-470
JPN: 035-032-320-12A (Affects the land and other property)

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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: 16 Section Name: CONSENT CALENDAR Account Number: 10-2011 File ID: 25-9953 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: May 19, 2025
SUBJECT:

Investment Advisory Services – Agreement
RECOMMENDATION:

Approve an agreement with Chandler Asset Management for Investment Advisory Services and authorize the Finance Director to execute the agreement in substantially the form presented.

BACKGROUND:

On October 14, 2019, the Finance Department issued a Request for Proposals (RFP) for investment advisory services, posting on the City's website and Public Purchase, an online platform that provides bid notifications for governmental agencies in the procurement process. Through a competitive selection process, Chandler Asset Management, Inc. (“Chandler”) was chosen as the City’s investment advisor.

Chandler has satisfactorily provided investment advisory services for the City since 2020. The City Council approved the original agreement with Chandler on February 18, 2020, for a three-year term, with an option to extend. On July 17, 2023, the Council approved Amendment No. 1, extending the agreement through June 30, 2025.

Over the past five years, Chandler has served as a trusted investment advisor, supporting the City in managing its investment portfolio. Staff has been satisfied with Chandler’s performance, particularly their expertise in fix-income securities. They have consistently outperformed industry benchmarks, demonstrating strong investment returns while adhering to the City’s risk tolerance and investment policy.

Their advisory fee, averaging 5 base points (i.e. 0.05 percent), is highly competitive compared to industry peers offering similar services.

While the agreement technically does not include a not-to-exceed amount, the table below summarizes projected assets under management (AUM), estimated investment earnings and fees over the next three fiscal years, along with the estimated investment advisory fee for each of the next three fiscal years:

Fiscal Year
Estimated
Assets Under
Management
(AUM)
Estimated
Investment
Earnings
Estimated
Investment
Advisory Fee
Fee as % of
AUM
FY 2025-26 $395 million $14 ~ $15 million $195,000 0.05% FY 2026-27 $435 million $15 ~ $17 million $215,000 0.05% FY 2027-28 $475 million $17 ~ $19 million $235,000 0.05%

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Chandler's fees for the next three years will remain a small fraction of overall investment earnings.

Given Chandler’s strong performance, competitive pricing, and the City’s ongoing need for professional investment advisory services, staff recommends entering a new three-year contract with Chandler through June 30, 2028, with an option for a two-year extension. Staff does not recommend issuing a new RFP at this time, as the City is receiving high- quality service at favorable rates under the current agreement.

BUDGET IMPACT:

No additional budget appropriations are required. The Finance Department anticipates that the cost of services will be offset by investment returns for the portion of assets under the firm's management.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Agreement

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

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AGREEMENT WITH CHANDLER ASSET MANAGEMENT, INC.

FOR

INVESTMENT ADVISORY SERVICES

This Agreement, made and entered into this day of ____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California (“CITY”), and CHANDLER ASSET MANAGEMENT, INC., an incorporated Investment Advisory Services firm (“CONSULTANT”), whose address is 9255 Towne Centre Drive, Suite 600, San Diego, CA 92121.

RECITALS:

A. CITY desires certain investment advisory services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these investment advisory services by reason of its qualifications and experience for performing such services and CONSULTANT has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES

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

SECTION 2 - DUTIES OF CONSULTANT

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

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

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

CONSULTANT agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.

SECTION 3 - DUTIES OF CITY

CITY shall provide pertinent information regarding its requirements for the project.

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

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SECTION 4 - TERM

The services to be performed under this Agreement shall commence on July 1, 2025 and be completed on June 30, 2028, with the CITY’s option to extend an additional two years to June 30, 2030.

SECTION 5 - PAYMENT

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

SECTION 6 - TERMINATION

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

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

SECTION 7 - OWNERSHIP OF DOCUMENTS

All documents prepared by CONSULTANT in the performance of this Agreement, although instruments of professional service, are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 8 - CONFIDENTIALITY

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

SECTION 9 - INTEREST OF CONSULTANT

CONSULTANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.

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SECTION 10 - CONSULTANT'S STATUS

It is expressly agreed that in the performance of the professional services required under this Agreement, CONSULTANT shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Except as explicitly authorized herein, CONSULTANT shall not be considered an agent or employee of CITY while providing services under this Agreement.

SECTION 11 - INDEMNITY

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

SECTION 12 - INSURANCE

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

SECTION 13 - NON-ASSIGNABILITY

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

SECTION 14 - RELIANCE UPON PROFESSIONAL

SKILL OF CONSULTANT

It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this Agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT's work by CITY does not operate as a release of CONSULTANT from said obligation.

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SECTION 15 - WAIVERS

The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

SECTION 16 - SEVERABILITY

If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

SECTION 17 - COSTS AND ATTORNEY FEES

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

SECTION 18 - NON-DISCRIMINATION

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

SECTION 19 - MEDIATION

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

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SECTION 20 - LITIGATION

CONSULTANT shall testify at CITY'S request if litigation is brought against CITY in connection with CONSULTANT's services under this Agreement. Unless the action is brought by CONSULTANT, or is based upon CONSULTANT's wrongdoing, CITY shall compensate CONSULTANT for preparation for testimony, testimony, and travel at CONSULTANT's standard hourly rates at the time of actual testimony.

SECTION 21 - NOTICES

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

To CITY: Karen Huang, Finance Director
City of San Mateo
330 W 20th Avenue
San Mateo, CA 94403

To CONSULTANT: Chandler Asset Management, Inc.

Attn: Nicole Dragoo, CEO
9255 Towne Centre Drive, Suite 600
San Diego, CA 92121

SECTION 22 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT

This document represents the entire and integrated agreement between CITY and CONSULTANT and supersedes all prior negotiations, representations, and agreements, either written or oral.

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

SECTION 23 - AUTHORITY TO ENTER INTO AGREEMENT

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

SECTION 24 - GOVERNING LAW AND VENUE

This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.

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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT will provide the following activities to the CITY in accordance with the terms of this Agreement.

1. Assume the management of a portion of the investment portfolio.

2. Review the City’s investment policy and internal control procedures and make recommendations that are necessary.

3. Manage the City’s portfolio in a fiduciary capacity with discretionary authority.

4. Execute trades in accordance with the City’s investment policy.

5. Assist the City with maturity analysis.

6. Provide credit analysis of investment instruments in portfolio.

7. Provide monthly/quarterly/annual reporting.

8. Provide monthly investment reports for the City’s entire portfolio detailing holdings, composition and sector analysis, return, weighted average maturity and daily transaction activity.

9. Attend selected quarterly meetings with City staff and Investment Advisory Committee and occasional City Council meetings.

10. Evaluate market risk and develop strategies that minimize the impact on the portfolio.

11. Provide assurance of portfolio compliance with applicable policies and laws and the City’s Investment Policy.

12. Establish an appropriate performance benchmark.

13. Indicate full understanding of Investment Policy and recommend changes as appropriate.

14. Ensure portfolio structure matches City objectives.

15. Firm shall not have custody or possession of the funds or securities that the City has placed under its management. City has retained a custodian or safekeeping agent to take and have possession of its invested assets.

ADDITI ONAL TERMS

1. CITY Representative. In its capacity as investment manager, CONSULTANT shall receive all instructions, directions and other communications on CITY's behalf respecting CITY's account from the Finance Director or designee. CONSULTANT is hereby authorized to rely and act upon all such instructions, directions and communications from such Representative or any agent of such Representative.

2. Investment Policy. In investing and reinvesting CITY’s assets, Chandler shall comply with CITY’s Investment Policy.

3. Authority of CONSULTANT. CONSULTANT is hereby granted full discretion to invest and reinvest all assets under its management in any type of security it deems appropriate, subject to the instructions given or guidelines set by Representative.

4. Electronic Delivery. From time to time, CONSULTANT may be required to deliver certain documents to CITY such as account information, notices and required disclosures. CITY hereby

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consents to CONSULTANT’s use of electronic means, such as email, to make such delivery. This delivery may include notification of the availability of such document(s) on a website, and CITY agrees that such notification will constitute “delivery”. CITY further agrees to provide CONSULTANT with CITY’s email address(s) and to keep this information current at all times by promptly notifying CONSULTANT of any change in email address(s).

CITY email address(s): [email protected], [email protected],

5. Proxy Voting. CONSULTANT will vote proxies on behalf of CITY unless otherwise instructed.

CONSULTANT has adopted and implemented written policies and procedures and will provide CITY with a description of the proxy voting procedures upon request. CONSULTANT will provide information regarding how CITYs’ proxies were voted upon request. To request proxy policies or other information, please contact us by mail at the address provided, by calling 800-317- 4747 or by emailing your request to [email protected].

6. Custody of Securities and Funds. CONSULTANT shall not have custody or possession of the funds or securities that CITY has placed under its management. CITY shall appoint a custodian to take and have possession of its assets. CITY recognizes the importance of comparing statements received from the appointed custodian to statements received from CONSULTANT.

CITY recognizes that the fees expressed above do not include fees CITY will incur for custodial services.

7. Valuation. CONSULTANT will value securities held in portfolios managed by CONSULTANT no less than monthly. Securities or investments in the portfolio will be valued in a manner determined in good faith by CONSULTANT to reflect fair market value.

8. Investment Advice. CITY recognizes that the opinions, recommendations and actions of CONSULTANT will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that CONSULTANT acts in good faith, CITY agrees that CONSULTANT will not in any way be liable for any error in judgment or for any act or omission, except as may otherwise be provided for under the Federal Securities laws or other applicable laws.

9. Payment of Commissions. CONSULTANT may place buy and sell orders with or through such brokers or dealers as it may select. It is the policy and practice of CONSULTANT to strive for the best price and execution and for commission and discounts which are competitive in relation to the value of the transaction and which comply with Section 28(e) of the Securities and Exchange Act. Nevertheless, it is understood that CONSULTANT may pay a commission on transactions in excess of the amount another broker or dealer may charge, and that CONSULTANT makes no warranty or representation regarding commissions paid on transactions hereunder.

10. Other Clients. It is further understood that CONSULTANT may be acting in a similar capacity for other institutional and individual clients, and that investments and reinvestments for CITY's portfolio may differ from those made or recommended with respect to other accounts and clients even though the investment objectives may be the same or similar. Accordingly, it is

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agreed that CONSULTANT will have no obligation to purchase or sell for CITY's account any securities which it may purchase or sell for other clients.

11. Confidential Relationship. The terms and conditions of this Agreement, and all information and advice furnished by either party to the other shall be treated as confidential and shall not be disclosed to third parties except (i) as required by law, rule, or regulation, (ii) as requested by a regulatory authority, (iii) for disclosures by either party of information that has become public by means other than wrongful conduct by such party or its officers, employees, or other personnel, (iv) for disclosures by either party to its legal counsel, accountants, or other professional advisers, (v) as necessary for CONSULTANT to carry out its responsibilities hereunder, or (vi) as otherwise expressly agreed by the parties.

12. Receipt of Brochure and Privacy Policy. CITY hereby acknowledges receipt of the disclosure statement or "brochure" and “brochure supplement” also known as Part 2A and Part 2B of Form ADV, required to be delivered pursuant to Rule 204-3 of the Investment Advisers Act of 1940 (Brochure). CITY further acknowledges receipt of CONSULTANT’s Privacy Policy, as required by Regulation S-P.

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EXHIBIT B

FEE RATES

CITY shall compensate CONSULTANT monthly an amount calculated on the average market value of CITY’s portfolio, including accrued interest, in accordance with the following schedule:

Assets Under Management Annual Investment Management Fee First $25 million
Next $25 million
Next $50 million
Assets in excess of $100 million

0.10 of 1% (10 basis points)

0.08 of 1% (8 basis points)

0.06 of 1% (6 basis points)

0.04 of 1% (4 basis points)

The fees expressed above do not include any custody fees that may be charged by CITY’s bank or other third-party custodian.

Fees shall be prorated to the effective date of termination on the basis of actual days elapsed, and any unearned portion of prepaid fees shall be refunded. CITY is not required to pay any start up or closing fees; there are no penalty fees.

The Consultant agrees to bill the City monthly in arrears based on the average market value of the assets under management for the month.

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EXHIBIT C

INSURANCE REQUIREMENTS

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

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

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

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

4. Professional Liability (Errors and Omissions): Insurance appropriate to the CONSULTANT’s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.

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

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

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

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

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Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City.

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

CONSULTANT agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

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

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

Verification of Coverage
CONSULTANT shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONSULTANT’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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INSR ADDL SUBR

LTR INSR WVD

DATE (MM/DD/YYYY)

PRODUCER CONTACT
NAME:

FAX PHONE
(A/C, No): (A/C, No, Ext):

E-MAIL
ADDRESS:

INSURER A :

INSURED INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

POLICY NUMBER POLICY EFF POLICY EXP TYPE OF INSURANCE LIMITS (MM/DD/YYYY) (MM/DD/YYYY)

COMMERCIAL GENERAL LIABILITY

AUTOMOBILE LIABILITY

UMBRELLA LIAB

EXCESS LIAB

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

AUTHORIZED REPRESENTATIVE
INSURER(S) AFFORDING COVERAGE NAIC #
Y / N
N / A
(Mandatory in NH)

ANY PROPRIETOR/PARTNER/EXECUTIVE
OFFICER/MEMBER EXCLUDED?
EACH OCCURRENCE $
DAMAGE TO RENTED $PREMISES (Ea occurrence) CLAIMS-MADE OCCUR MED EXP (Any one person) $
PERSONAL & ADV INJURY $
GENERAL AGGREGATE $GEN'L AGGREGATE LIMIT APPLIES PER:

PRODUCTS - COMP/OP AGG $
$
PRO-
OTHER:

LOC JECT

COMBINED SINGLE LIMIT
$(Ea accident)
BODILY INJURY (Per person) $ANY AUTO
OWNED SCHEDULED BODILY INJURY (Per accident) $AUTOS ONLY AUTOS

AUTOS ONLY
HIRED PROPERTY DAMAGE $AUTOS ONLY (Per accident)
$
OCCUR EACH OCCURRENCE $
CLAIMS-MADE AGGREGATE $
DED RETENTION $ $

PER OTH-

STATUTE ER
E.L. EACH ACCIDENT $
E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below POLICY

NON-OWNED

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer any rights to the certificate holder in lieu of such endorsement(s).

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

The ACORD name and logo are registered marks of ACORD ACORD 25 (2016/03)

ACORD TM CERTIFICATE OF LIABILITY INSURANCE
Travelers Casualty Insurance
Travelers Insurance Company
Hartford Fire Insurance Company
Twin City Fire Insurance Company
Houston Casualty Co
05/05/2025
Starkweather & Shepley
PO Box 549
Providence, RI 02901-0549
401 435-3600
Linda Vecoli
781-234-0085
[email protected]
Chandler Asset Management Inc
9255 Towne Center Drive Suite 600
San Diego, CA 92121
19046
25674
19682
29459
42374
A X
X
X Per Written Contract
Ded -0-
X
Y Y 6802C0796052442 09/01/2024 09/01/2025 2,000,000
1,000,000
5,000
2,000,000
4,000,000
4,000,000
A
X
X X
Y Y BA4N1159572442G
Liab Ded -0-
09/01/2024 09/01/2025 1,000,000
B X X
X 0
Y Y CUP2C0850222442 09/01/2024 09/01/2025 10,000,000
10,000,000
C
N
Y 02WECCR2756 09/01/2024 09/01/2025 X
1,000,000
1,000,000
1,000,000
D
E
C
Professional Liab
Cyber Liability
Crime
08DC021984524
H24NGP20973102
08FA024546724
08/02/2024
08/02/2024
08/02/2024
08/02/2025
08/02/2025
08/02/2025
10,000,000
4,000,000
10,000,000
Endurance Risk Solutions #43630 1st Excess Professional Liability F1X3001867804 Eff. 8-02-2024 Exp. 8-02-2025 Limit $10,000,000
Everest National #10120 2nd Excess Professional Liability FL5EX00728241 Eff. 8-02-2024 Exp. 8-02-2025 Limit $10,000,000
Total Professional (E&O) Limit $30,000,000
(See Attached Descriptions)
Karen Huang, Finance Director
City of San Mateo
330 W 20th Avenue
San Mateo, CA 94403
1 of 2
#S2605227/M2448141
CHANDAST Client#: 62001
SHL
1 of 2
#S2605227/M2448141

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SAGITTA 25.3 (2016/03)
DESCRIPTIONS (Continued from Page 1)
The City of San Mateo, it's elected and appointed officials, employees and agents are additional insured on a primary and non-contributory basis as required by written contract or agreement. A waiver of subrogation also applies to the additional insured per written contract or agreement. Notice of cancellation shall be provided as per the policy provisions.
2 of 2
#S2605227/M2448141

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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: 17 Section Name: PUBLIC HEARING Account Number: 14-1311 File ID: 25-9852 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: May 19, 2025
SUBJECT:

Downtown Business Improvement Area – Annual Renewal
RECOMMENDATION:

Adopt a Resolution to Levy the Annual Assessments for the Downtown Business Improvement Area for fiscal year 2025-26.

BACKGROUND:

The Downtown Business Improvement Area (DBIA) was formed in 1986 for the purpose of improving Downtown San Mateo and promoting businesses within the area. The Downtown San Mateo Association (DSMA) has served as the DBIA administrator since its formation. The DSMA provides the City Council with a report of its activities and expenditures for the previous fiscal year and proposes an assessment schedule for the upcoming fiscal year, as required by the California Street and Highways Code Section 36533. In April 2025, the DSMA submitted its annual report, incorporating a summary of fiscal year 2024-25 activities and proposed program and budget for fiscal year 2025-26 (included as Attachment 2).

Before the City Council may act on the DSMA’s request to renew the DBIA assessments, the request must be considered at two City Council meetings. At the previous meeting on May 5, 2025, the City Council accepted the DSMA’s annual report, adopted a Resolution of Intent to Levy the Annual Assessment, and set a public hearing date for May 19, 2025. At the second meeting, the City Council is asked to adopt the Resolution to levy the annual assessment (included as Attachment 1).

Annual Assessment
This is the second year the DSMA has had a full-time Executive Director, Mackenzie Jakoubek, who brings 15 years of experience in nonprofit management, customer service, and event planning. After the resignation of the previous Executive Director in 2017, Downtown business owners—with administrative support from the City—kept the organization running as volunteers. A major step forward came in 2022, when the City Council approved the first update to the business assessment formula since 2009, making contributions more equitable and enabling DSMA to expand operations. These updated assessments made it possible to hire a full-time executive director.

Since taking on her role in July 2023, Ms. Jakoubek has reenergized DSMA’s presence in the community, engaging with merchants and community partners including the City of San Mateo, the Chamber of Commerce, and B Street Boosters.

Her leadership has steadied and strengthened DSMA’s mission to champion Downtown businesses and revitalize the district.

Key Accomplishments (2024–2025):
Engaged over 74 Downtown merchants in DSMA events

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Hosted 14 pop-up community events (a 27 percent year-over-year increase) Allocated $95,000 for Downtown clean-up efforts
Increased social media engagement by 17 percent on Facebook and 41 percent on Instagram Launched the first-ever Boba Day, attracting more than 5,000 attendees Partnered with Headwest Market to pilot a holiday vendor fair on the pedestrian mall These accomplishments reflect DSMA’s renewed capacity to create meaningful experiences for residents and visitors, foster business growth, and cultivate a thriving Downtown community.

Financial Overview:

The DSMA anticipates generating approximately $355,000 in DBIA assessments, sponsorships, and partnership funds for FY 2025–26, aligning with its projected expenditures. While payroll is expected to remain flat, modest cost increases are anticipated for Downtown cleanup, marketing, professional services, banners, and events due to inflation and rising costs.

Looking ahead, the DSMA is exploring opportunities to expand revenue in FY 2026–27. Additionally, the DSMA maintains a money market account with $240,000 in reserves, set aside for emergency use.

For the fiscal year 2025-26, the DSMA expects to generate approximately $355,000 from DBIA assessments, aligning with its budget.

The DSMA shares an office with the Downtown Coordinator and does not utilize any City equipment or furniture. The shared space allows the DSMA to redirect savings towards programs and events. Additionally, the shared office facilitates a closer relationship between the City and the DSMA, enhancing collaboration and communication. While some stakeholders have voiced dissent in having to participate in the fees, the majority have noticed the benefits of having increased events, enhanced marketing, and vibrancy in the Downtown.

At the May 19, 2025 public hearing, Mackenzie Jakoubek, Executive Director of the DSMA will present an overview of the DSMA’s Annual Report and will be able to address any questions from the Council and public.

According to Streets and Highways Code Section 36535, if written protests are submitted by business owners in the DBIA, and these protests collectively represent 50 percent or more of the proposed assessments, no additional actions to impose the assessments will occur for a period of one year.

Any written protests received will be provided prior to the May 19, 2025 Council meeting. Should Council adopt the Resolution levying the proposed annual Downtown Business Improvement Area assessment, the Finance Department will include the 2025-26 DBIA assessments in the City business tax license fees for businesses located within the boundaries of the DBIA.

BUDGET IMPACT:

The levying of the annual DBIA assessment does not have an impact on the General Fund.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED

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CITY OF SAN MATEO
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All meeting noticing requirements were met. Pursuant to California Streets and Highways Code Section 36534, a notice for the public hearing was published in the San Mateo Daily Journal at least seven (7) days prior to the May 19, 2025 City Council hearing.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – DSMA Annual Report 2024-2025
Att 3 – Support Letters

STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009

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9 CITY OF SAN MATEO
RESOLUTION NO. (2025)
LEVYING THE ANNUAL ASSESSMENT (2025-2026)

FOR THE DOWNTOWN BUSINESS IMPROVEMENT AREA
WHEREAS, the City Council established the Downtown Business Improvement Area (DBIA) pursuant to Streets and Highways Code Section 36500, et seq.; and WHEREAS, the Downtown San Mateo Association, in conjunction with City staff, acts as the advisory board to the City Council for the DBIA; and
WHEREAS, the City Council has received and reviewed the annual report submitted by the Downtown San Mateo Association and hereby confirms said Association as the advisory board for the DBIA; and
WHEREAS, a public hearing was held after being duly noticed for a time and place specified in the notice of intention; and
WHEREAS, all protests, either written or otherwise to the assessments proposed in the report were heard and considered at the public hearing; and
WHEREAS, Streets and Highways Code section 36535(b) authorizes the City Council, upon the conclusion of the public hearing, to order changes in any of the matters provided in the report, including changes in the proposed assessments; and
WHEREAS, staff recommends that the City Council approve the proposed assessments.

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

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

2. The City Council confirms that a majority protest, within the meaning of Streets and Highways Code Section 36525, was not made with regard to the proposed assessments.

3. The City Council approves the assessments set forth in the “Proposed Annual Assessment Schedule 2025-2026,” attached hereto as Exhibit A, for the Downtown Business Area set forth in the “DBIA Boundary Map,” attached hereto as Exhibit B.

4. The City Council confirms the annual report submitted by the Downtown San Mateo Association as filed and attached to the May 5, 2025, Administrative Report.

5. The City Council authorizes the levying and collection of the 2025-2026 annual DBIA assessments in the amounts shown in the “Proposed Annual Assessment Schedule 2025- 2026, attached hereto as Exhibit A for the Downtown Business Area set forth in the “DBIA Boundary Map,” attached hereto as Exhibit B.

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9 Exhibit A
Proposed Annual Assessment Schedule FY 2025-2026
Retail (Based on Annual Gross Receipts)
Annual Gross Revenue Proposed 2025-26 Previous 2024-25
Zone 1 Zone 2 Zone 1 Zone 2$0 - $150,000
$200 $100 $200 $100
$150,001 - $400,000 $400 $200 $400 $200
$400,001-$600,000 $800 $400 $800 $400
$600,001-$1,000,000 $1,150 $575 $1,150 $575
$1,000,000+ $1,500 $750 $1,500 $750
Professional (based on number of employees)
Category Proposed 2025-26 Previous 2024-25
Number Of Employees Zone 1 Zone 2 Zone 1 Zone 2
Sole Proprietor, No
employees
$200 $100 $200 $100
1 to 5 Employees $550 $275 $550 $275
6-15 Employees $1,000 $500 $1,000 $500
16-35 Employees $2,300 $1,150 $2,300 $1,150
36-75 Employees $3,050 $1,525 $3,050 $1,525
76+ Employees 1, 2 $3,050 $1,525 $3,050 $1,525
Service (based on number of employees)
Category Proposed 2025-26 Previous 2024-25
Number of Employees Zone 1 Zone 2 Zone 1 Zone 2
Sole Proprietor, No
employees
$200 $100 $200 $100
1 to 5 Employees $400 $200 $400 $200
6-15 Employees $800 $400 $800 $400
16-35 Employees $1,700 850 $1,700 $850
36-75 Employees $2,300 $1,150 $2,300 $1,150
76+ Employees 3, 4 $2,300 $1,150 $2,300 $1,150
Financial (flat rate)
Category Proposed 2025-26 Previous 2024-25
Zone 1 Zone 2 Zone 1 Zone 2
Financial
$1,500 $775 $1,500 $775
See footnote for 1,2,3,4

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9 Proposed Annual Assessment Schedule FY 2025-2026 (Continued) Retail businesses include but is not limited to businesses that have goods and foods for sale including automotive vehicles and parts dealers, home furnishing stores, jewelers, electronics and appliance stores, building material and garden equipment and supplies dealers, food and beverage stores, fullserve restaurants, limited services restaurants, fast food restaurants, cafeterias, dessert and snack establishments, bars, gasoline stations, clothing and clothing accessories, sporting goods, hobby stores, music instruments, book stores, general merchandise store, wireless phone stores and similar.

Professional businesses include but is not limited to businesses that offer services that are highly specialized and typically require licensing and regulations. Professional service providers and information-based businesses such as software publishers, data processing, network hosting and related services, internet publishing and broadcasting and web search portals, venture capital, insurance agencies and brokerage, real estate agents and brokers, offices of lawyers, accounting, architectural, engineering advertising, translation and interpretation services, veterinary services, offices of physicians, offices of dentists, other health practitioners, and similar.

All businesses classified as Professional shall pay an annual assessment based on the number of fulltime equivalency employees.

Sole Proprietor is defined as a self-employed individual who works for themselves without hiring any employees.

Service businesses include but is not limited to providers of personal and business services such as hair salons, nail salons, lock smiths, dry cleaners, auto service and maintenance shops, gyms, vacuum repair shops, educational, childcare, electronic equipment repair, personal care services, and similar.

All businesses classified as Service shall pay an annual assessment based on the number of full-time equivalency employees.

Financial businesses include but not limited to businesses in the financial industry such as money management, payments, digital banking, banks, savings and loan companies, credit unions, finance companies, and similar.

All businesses classified as Financial shall pay a flat annual assessment.

For Professional and Service businesses, the number of employees shall be determined based on Full Time Equivalent of 40 hours a week as reported on the initial business license application and updated thereafter during the annual business license renewal.

Footnote
1 - $3,050 + $14.00 per employee over 75 employees for Zone 1 2- $1,525 + $10.00 per employee over 75 employees for Zone 2 3- $2,300 + $10.00 per employee over 75 employees for Zone 1 4- $1,150 + $7.00 per employee over 75 employees for Zone 2

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9 Exhibit B
DBIA Boundary Map
Zone 1 – Shaded parcels
Zone 2 --Parcels outlined in black

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DOWNTOWNSAN MATEOASSOCIATION
PREPARED BY:

MACKENZIE JAKOUBEK
Executive Director
FISCAL YEAR 2023-24

ANNUAL REPORT
JULY 1, 2023 - JUNE 30, 2024

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"The difference that I've noticed... is distinctand palpable. As a resident, a follower of theDSMA Instagram account, and recipient of thenewsletter, the buzz around Downtown SanMateo in the past few months feels cohesiveand alive in a way that it hasn't in years." -Sarah Meier-Heredia
“Please know that your efforts havemade a lasting impact on ourcommunity, and I am truly grateful forall that you do.” -Boba Day Participant

ACCOMPLISHMENTS AT A GLANCE
61+ Downtownmerchants directlyparticipated in DSMAcommunity events 11 pop up communityevents added toDowntown calendar
Facebook reachincreased by 160%
Instagram reachincreased by 2k+%
30k+ Downtownrestaurant guidesdistributed throughoutthe Peninsula

DOWNTOWN SAN MATEOASSOCIATION SUMMARY
The Downtown San Mateo Association (DSMA) continues
to play a pivotal role in fostering the resilience and vibrancy of Downtown San Mateo. Since 1986, DSMA has managed
the Downtown Business Improvement District, supporting
merchants and nurturing community connections.

Downtown San Mateo is a regional hub for business and
leisure, attracting visitors from across the Bay Area with its diverse mix of businesses, notably its renowned dining
scene, and its strategic location in Silicon Valley.

Under the leadership of Executive Director Mackenzie
Jakoubek, DSMA has prioritized collaboration and
community engagement as key strategies for activating
Downtown San Mateo. Through partnerships with local
organizations and active participation in and coordination of community events, DSMA has successfully enhanced
Downtown's appeal and visibility. Looking ahead to Fiscal Year 2024-25, DSMA remains committed to building upon
its achievements, with a focus on expanding marketing
and activation efforts, bolstering civic partnerships, and enhancing Downtown's cleanliness and attractiveness.

With a projected budget reflecting strategic resource
allocation and continued support from its dedicated Board of Directors, DSMA is poised to further elevate Downtown San Mateo as a vibrant destination for residents, visitors, and businesses alike.
$96k used forDowntown clean-upefforts
JUNE 2024

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In the heart of the Peninsula, Downtown San Mateo stands as a testament to resilience, diversity, and evolution– a dynamic hub where commerce and community connect. At its core is the Downtown San Mateo Association (DSMA), a key player in shaping the district's vibrancy.

Each year since 1986, the DSMA has been designated by City Council to manage the Downtown Business Improvement District. We are honored to be tasked with supporting the merchants of Downtown San Mateo and bringing together the community who loves this downtown district.

FY 2023-24 ANNUAL REPORT

INTRODUCTION
JUNE 2024 2

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

Visitors come from San Francisco, Santa
Clara County, the East Bay, and, most often,
nearby Peninsula cities. Downtown is known
for its abundance and variety of restaurants,
which make up more than 20% of district
businesses. It is also an important node in the
Silicon Valley ecosystem, hosting start-ups
and tech-based companies of all sizes. The
presence of Mills Health Center means that
Downtown also includes many medical
professionals and other healthcare uses.

While there are traditional retailers in the
district, the storefronts on most blocks are
dominated by food and drink purveyors,
along with services such as salons, fitness
studios, and banks. Several body shops and
automotive businesses can be found east of
the railroad tracks.

In 2024, COVID-19 is behind us, but remote
work remains prevalent. The hybrid work
model continues to shape the reality of the
Bay Area, and the traditional Monday
through Friday, 9-5 office routine has
become less common. However, due to the
balance between housing and office spaces
in Downtown, workers and residents can be
observed working in coffee shops and
restaurants throughout the day. The hybrid
work setup also facilitates flexibility for
fitness studios, salons, and other personal
services to cater to clients at various times,
FY 2023-24 ANNUAL REPORT

DOWNTOWN SANMATEO OVERVIEW
especially during lunch hours. Weekends
are consistently busy, particularly in the
evenings, with residents and visitors
enjoying Downtown’s varied offerings.

Like all downtown areas, San Mateo has
encountered challenges in the past year.

Some small businesses continue to feel the
financial setbacks from COVID, impacting
their operations today. Rising costs due to
inflation have further squeezed their bottom
lines. Additionally, recent layoffs in Silicon
Valley have brought about uncertainty,
leading to reduced personal spending,
particularly on dining out, personal services,
and consumer goods.

Downtown San Mateo grapples with
common challenges for all business
districts. Downtown patrons voice
dissatisfaction with congested traffic,
insufficient parking availability, and unclean
surroundings. While businesses voice
discontentment around rising costs,
inconsistent foot traffic, difficulty finding
help, and other day-to-day obstacles.

Despite these obstacles, the overall
Downtown outlook from businesses and
visitors is positive. New businesses continue
to open up in our district, often citing safety,
cleanliness, and lively atmosphere as the
main reasons for selecting Downtown San
Mateo. Visitors have noted the positive
energy of Downtown, especially with the
increase in special events over the past
year.

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In November 2022, the City Council
approved a modification to the assessments
for Downtown's business improvement
district (BID). This decision was necessary,
as the assessments had not received an
increase since 2011, and the fee structure
remained largely unchanged since the BID's
establishment in 1986. The updated
assessments aim for equity, ensuring that all
businesses that benefit from the BID
contribute their fair share to keep the
Downtown clean, safe, and lively.

Additionally, the new assessments better
reflect the diverse mix of businesses in
Downtown, spanning retail, professional
services, technology, and personal services.

Under the previous assessments, DSMA was
unable to hire full-time staff or expand
operations. The approval of the assessments
and annual levy are essential for the DSMA's
success. It allows DSMA to partner with the
City on the mission of fostering an active and
sustainable Downtown for businesses,
visitors, and residents.

In July 2023, DSMA hired Executive Director
Mackenzie Jakoubek. With 15 plus years
background in nonprofit management,
customer service, and event planning,
Mackenzie hit the ground running, adding to
the incredible efforts over the past five years
from DSMA’s all-volunteer “army” of Board
Members.

FY 2023-24 ANNUAL REPORT

DSMA OVERVIEW
Mackenzie’s first goal was to connect with
and learn from Downtown merchants,
DSMA Board members past and present,
City of San Mateo staff and leadership,
involved residents, and her counterparts at
other BIDs. She quickly became the “face” of
DSMA and brought attention and
enthusiasm to Downtown San Mateo. At the
same time, she tackled administrative tasks
that had not been addressed since 2017,
when the last Director was in place.

One important theme for Mackenzie in her
first year was collaboration. By collaborating
with like-minded entities, the DSMA aims to
achieve more, collectively, recognizing that
a combined effort yields greater results for
Downtown San Mateo. Through
partnerships with San Mateo Parks &
Recreation, San Mateo’s City Manager’s
Office, Self-Help for the Elderly, San Mateo
Age-Friendly Coalition, B Street Boosters,
and San Mateo Area Chamber of
Commerce, plus many BID members, DSMA
has been able to achieve far more than if
working alone.

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DSMA activities for the past several years have addressed three focus areas: Community Engagement, BID Member Engagement, and Civic Partnership.

FY 2023-24 ANNUAL REPORT

DSMA FOCUS AREAS

COMMUNITYENGAGEMENT
Community engagement focuses on coordinating events and marketing. The goal is to drive traffic Downtown and connect the community with our wonderful and diverse businesses. The primary audiences for community engagement are Downtown workers, San Mateo and Peninsula residents, and visitors to local hotels and events.

COMMUNITY EVENTS (*INDICATES POP UP PERMIT EVENT)
North B Fiesta (Aug 27): This annual
event is a way for the merchants of North
B Street to thank their loyal customers
and share arts and culture from the many
Latin and Hispanic groups represented
on the block. DSMA was a sponsor and
booth participant.

September Nights on B (Sep 7 & 14):

Hosted by the City of San Mateo with
support from the DSMA.

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FY 2023-24 ANNUAL REPORT
COMMUNITY EVENTS CONT’D
San Mateo Fall Fest (Sep 30): This day-
long event offered a variety of live music,
entertainment, local arts, and family-
friendly activities on B Street and beyond,
presented by the San Mateo Area
Chamber of Commerce in conjunction
with California Artists. DSMA was a
sponsor and assisted the Chamber with
coordination and fundraising.

BOOs on B Street & Trick or Treating
(Oct 28): A close collaboration between
San Mateo’s Parks & Recreation
Department and DSMA, BOOs on B
Street welcomed hundreds of kids to the
B Street pedestrian mall to enjoy carnival
games, face painting, a bounce house,
and Halloween activities. DSMA
coordinated 31 Downtown merchants
that provided candy to adorable trick-or-
treaters. Many attendees also
participated in our Halloween scavenger
hunt that led them through the entire
Downtown.

Las Posadas* (Dec 3): The merchants of
North B Street welcomed their loyal
customers and Holiday Train visitors to
their storefronts with warm cider, gift
bags, and other treats. Unidos en Cristo
sang Spanish-language Christmas carols
throughout the block.The event was
coordinated by the North B Merchants
with DSMA support.

Pre-Holiday Train Entertainment*
(Dec 3): Caltrain’s beloved annual
Holiday Train stopped at the San Mateo
station the evening of Dec 3rd. To
entertain the large crowd (mostly
families with small children) as they
gathered, DSMA coordinated a
demonstration from Core Taekwondo
and a festive holiday music performance
from San Mateo High School’s
Symphonic Band.

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FY 2023-24 ANNUAL REPORT
COMMUNITY EVENTS CONT’D
Jazz on B Street* (Dec 10 & Mar 3): In
December, the Perfect Fifths, Aragon
High School’s elite jazz ensemble, filled
the Pedestrian Mall with festive holiday
music. In March, Hillsdale High School
Knight Train Ensemble gave an energetic
jazz performance that delighted
Downtown San Mateo visitors despite
some rain.

Lunar New Year* (Jan 27): DSMA, San
Mateo Self-Help for the Elderly,
Peopleologie, Core Taekwondo, Lion
Dance ME, and San Mateo Parks and
Recreation participated in this
celebration of the Year of the Dragon.

Three community booths and Parks &
Rec mobile games offered activities for
kids, and Lion Dance ME gave an
incredible performance and paraded
through the pedestrian mall.

Valentine’s Day Photobooth* (Feb 14):

As an added bonus for celebrating
Valentine’s Day in Downtown San Mateo,
DSMA offered free and fun photos to
visiting sweethearts, families,
and groups of friends, elevating the
Downtown experience for all
Putting Pop Up* (Feb 24): Perform for
Golf furnished a putting green and a
chipping practice area on B Street in
front of their new storefront. Visitors of
all ages were encouraged to try out
their golf skills while enjoying
Downtown.

Perform for Golf Grand Opening*
(April 13): Perform for Golf hosted a
grand opening event, inviting the public
into their new space, while showcasing
several other Downtown businesses
through vendor booths. DSMA
supported and promoted the event.

Music Pop Up* (April 20): Makule, a
duo of San Mateo residents Charlie
Chin and Victor Labrador, performed
American Folk, Latin Romantic,
Hawaiian, and Blues music for delighted
Downtown visitors.

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FY 2023-24 ANNUAL REPORT
COMMUNITY EVENTS CONT’D
Downtown San Mateo Boba Day*
(April 28): Downtown San Mateo is
lucky to have a number of top-notch
boba shops in our district. To bring
attention to these businesses, DSMA
hosted the first ever Downtown San
Mateo Boba Day. Businesses were
encouraged to give discounts and
samples in order to gain new
customers. DSMA and supporting
partners provided fun activities on B
Street for families and took votes on
the “Downtown San Mateo’s Favorite
Boba 2024.”
Ukulele Jam* (May 18): Charlie Chin
and Victor Labrador led uke-
enthusiasts in a play-along on B Street.

Experienced musicians and curious
newcomers were encouraged to
participate. The San Mateo Public
Library generously supported this
event by lending ukuleles to all
interested.

Juneteenth* (June 15): In collaboration
with the African American Library
Advisory Committee (AALAC), DSMA
hosted a Juneteenth celebration with
entertainment and community booths.

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DSMA uses social media, email newsletters, and DSMA.org to connect with the community.

Contracted a travel photographer to get updated snapshots that better represent our lively Downtown for social media, website, and other marketing use Announce DSMA events, Downtown happenings, storefront openings & anniversaries, sales and promotions, City of San Mateo announcements, and Downtown businesses in the news Project the Downtown “brand” by sharing snapshots of Downtown (both current and nostalgic), sharing videos and photos after Downtown events occur, highlighting district businesses, and engaging with other San Mateo-related accounts to keep Downtown San Mateo in the conversation
Bring awareness and excitement to campaigns such as Small Business Saturday and the Downtown Restaurant Guide
Since July 2023, DSMA’s Facebook reach has increased by 160% and we have gotten 395 new followers. Our Instagram reach has increased by more than 2,000% and gained over 1,000 new followers. The number of Downtown San Mateo Association Community News email subscribers has increased by 55%.

FY 2023-24 ANNUAL REPORT

DIGITAL MEDIA

PRINT ADVERTISING & OTHER MARKETING
Booth outreach promoting Downtown at the San Mateo Public Library Foundation’s San Mateo Celebrates! and KCSM’s Jazz on the Hill
Ads placed in Central Park during Parks & Recreation events Updated the Downtown San Mateo restaurant guide and distributed them through Downtown businesses, community events, and Peninsula hotels More than 30,000 restaurant guides were distributed across the Peninsula via the Saturday, April 13 edition of the San Mateo Daily Journal. This allowed the guides to reach potential visitors from South San Francisco to Palo Alto to Half Moon Bay Posters and flyers placed throughout the district to advertise community events Engagement with local journalists to highlight DSMA events and other Downtown happenings. Articles included features on BLOCK71, Hawaii relief efforts by Atlas Skateboarding, and Downtown San Mateo Boba Day.

Downtown San Mateo ad on the digital billboards at the San Mateo County Event Center during the 2024 County Fair
JUNE 2024 9

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FY 2023-24 ANNUAL REPORT

BID MEMBERENGAGEMENT
Co-hosted Mix & Mingle with San Mateo
Chamber of Commerce, connecting their
members and ours
Hosted the Annual Member Appreciation
Party, encouraging DSMA members to
socialize and connect with each other
Support North B merchants group at
monthly meetings and provide liaison to
city services. In order to better
collaborate with North B merchants, we
welcomed Lorry Morales, Manager at La
Pinata, onto the DSMA Board.

Collaborated with Downtown merchants
on community events, offering
sponsorship and partnering opportunities
to help enhance brand recognition
Putting Pop Up was a win-win for
Perform for Golf, which had just
opened on B Street, and the DSMA.

While providing the putting practice
resources to the community for free,
Perform for Golf was able to
introduce their brand to potential
new clients.

Downtown San Mateo Boba Day was
both a community event and a way to
drive traffic to individual boba shops.

By participating, boba shops would
have their brands featured in event
marketing and benefit from
excitement around the event.

Takahashi Market supported the
Ukulele Jam in May by donating
give-aways. This, in turn, provided
exposure to their business.

Developed welcome guide and used in
outreach visits to new Downtown
businesses
Worked with the San Mateo Area
Chamber of Commerce on the “Shop
Small to Win Big!” campaign for Small
Business Saturday. This campaign
helped drive business to San Mateo
merchants the Saturday after
Thanksgiving, but more importantly,
brought attention to the many small
businesses in our district. Several
businesses also supported the campaign
by donating prizes and handing out
postcards, which brought them
additional recognition.

Downtown San Mateo Association
Member News email shares events,
business resources and opportunities,
and Downtown news coverage via email
with 500+ subscribers once a month. It
garners positive feedback from many
businesses and consistently has an open
rate of 45%.

While BID membership is automatic based on a district address, awareness and participation are not. The DSMA strives to engage BID members and add value for the many types of businesses Downtown.

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FY 2023-24 ANNUAL REPORT
Published and distributed “Your Role in a
Clean Downtown” brochures
Created new holiday banners, placed on
B Street from Tilton to 3rd Avenue
Regular communication with San Mateo
Police Department, adding to the safety
and security of Downtown
Downtown porters from Universal Site
Services picked up litter and addressed
other cleanliness issues 7 days a week.

This year, after community feedback,
they expanded regular cleanings to Zone

2. DSMA Beautification & Improvements
Committee restarted district “walk-
arounds” to identify and address
cleanliness and maintenance problems
Facilitated discussions with stakeholders
to initiate community murals
Worked with involved businesses to
make improvements on landscaping

DOWNTOWN BEAUTIFICATION & CLEANLINESS
Reviewed proposals and prepared plans
for supplemental power washing to begin
in FY25
Participated in discussions on the
creation of a new Downtown public
bathroom

CIVICPARTNERSHIP
DSMA routinely works with City of San Mateo staff from Public Works, Parks & Recreation, and the City Manager’s Office to support the Downtown on projects affecting Downtown.

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FY 2023-24 ANNUAL REPORT

ADDITIONAL CIVIC PARTNERSHIP ACTIVITIES
Business outreach for City initiatives
including grant opportunities, flood
prevention, and emergency
preparedness awareness (Example:
sharing information about $5,000
restaurant grant in spring 2024)
Promotional support for City-sponsored
large-scale events including Central Park
Music Series, Winter Wonderland,
Eggstravaganza, and September Nights
on B, plus smaller events at the San
Mateo Library and San Mateo parks
Maintained Walgreens community
window, ensuring fair use for community
organization advertising
Responded to businesses' complaints
and inquiries, and resolved issues
whenever possible or facilitated
connections with the appropriate
entities for further assistance
Facilitated DSMA Board meeting
presentations from Flood Free San
Mateo, ReThink Waste, City of San
Mateo’s Engineering Department, and
the San Mateo Consolidated
Fire Department’s Office Of Emergency
Services
Participated in “Revv Up Downtown”
subcommittee
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FY 2023-24 ANNUAL REPORT
Integrate the newly hired Executive Director into the fabric of Downtown as quickly and smoothly as possible
Continue to support marketing, outreach, and public safety information Continue to partner with City staff to continue the support of Downtown Plan to restart the Downtown walk around with City staff and DSMA board members Refresh, print, and distribute the printed Downtown Restaurant Guide Sponsor and promote Downtown events (eg. Music in the Park, September Nights on B Street, College of San Mateo Centennial etc.)
Create relationships with developers and tech companies coming into the area Update to council to inform and report on campaigns and progress Set up Board Committees to facilitate more participation Advertise the new DSMA website to further market to and engage the public to visit Downtown businesses
PROGRESS ON FY 2023-24 GOALS
GOALS
Last year’s goals are listed below and rated “Successful,” “Continuing Efforts,” or “Delayed.” The nature of DSMA’s work is one of continuing improvement and growth; even if we are successful, no goal is ever complete.

SUCCESSFUL
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FY 2023-24 ANNUAL REPORT
Develop a communications plan to further the DSMA brand Target messaging campaigns throughout the year which will feature various Downtown attributes
Develop social media advertising
Continue print ads in the local paper, the San Mateo Daily Journal Serve as co-sponsor and administrative support for the MLK Day event at the CalTrain station.

Regular representation at Council, task force, and Commission meetings Expand board membership
Improved board member participation
Strengthen economic development collaborations with local organizations Research the impact of installing a public restroom in Downtown, closer to the core of the Downtown

CONTINUING EFFORTS
Explore the possibility of college interns helping with DSMA operations and events Restart hotel magazine ad campaign (we are evaluating the best use of our marketing budget)

DELAYED
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FY 2023-24 ANNUAL REPORT
DSMA will continue with our successes from FY 23-24, growing projects as needed, and making coordination more efficient. In addition, DSMA aims to achieve the following in FY 24-25.

Begin supplemental power washing services to add to the cleanliness of Downtown and expand what the City of San Mateo already provides
Continue and grow pop-up events on the B Street Pedestrian Mall and beyond, bringing energy and visibility to Downtown
Expand marketing efforts to San Francisco and the greater Bay Area Hire a third party to conduct a financial audit
Support the City of San Mateo with the Downtown Specific Plan and the “Revv Up Downtown” subcommittee
GOALS FOR FISCAL YEAR 2024-25
PROPOSED DSMA EVENTS FOR FY 2024-25 (* INDICATES POP UP EVENT PERMIT) July (date TBD): Game meetup*
July (date TBD): Music performance in
partnership with Fogbird*
August (date TBD): Music performance
in partnership with Fogbird*
August (date TBD): Kid-centered
performance or activity*
August 25: North B Fiesta (North B
Merchants with DSMA support)
September (date TBD): September
Nights on B (City of San Mateo event,
DSMA will support)
September (date TBD): San Mateo Fall
Fest (San Mateo Area Chamber of
Commerce event with DSMA support)
October (date TBD): Music or other
performance*
October 26: BOOs on B Street
(collaboration with San Mateo Parks &
Recreation)
November 30: Small Business Saturday
(booth with information and giveaways,
music performances)*
December 8: Pre-Holiday Train
entertainment*
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FY 2023-24 ANNUAL REPORT
PROPOSED DSMA EVENTS CONT’D
December 8: Las Posadas (North B
Merchants event with DSMA support)*
December 15: Pop up holiday music
event featuring San Mateo high schools*
January 25 (tentative date): Lunar New
Year*
February 14: Valentine’s Day pop up*
February (date TBD): Pop up event*
March (date TBD): Pop up event*
April (Date TBD): Pop up* collaboration
with College of San Mateo’s Learning
Communities (cultural performances)
Early May (date TBD): Downtown San
Mateo Boba Day
June (date TBD): Juneteenth
Additional pop up events will be added as budget and schedules allow.

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FY 2023-24 ANNUAL REPORT
BUDGET
FY 2023-24 saw a significant increase in revenue due to the BID assessment modification approved by City Council. We anticipate FY 2024-25 revenue will remain the same, or increase slightly due to new businesses opening in the district. We have also added a line for potential sponsorship revenue. Sponsoring activities Downtown is a way for businesses and community organizations to show their whole-hearted support for Downtown San Mateo activation.

Spending in FY 2023-24 was slightly conservative as the Board wanted to see the full impact of the assessment change. For FY 2024-25, DSMA will have a better understanding of assessment revenue and can use the expense budget more effectively.

The expense highlights are:

Programmatic
Community events
Banners
Internship program
Supporting most of the ED payroll
Civic Partnership
Downtown Cleaning Porter
Partial ED salary
Marketing
Advertising and Promotion
Social Media contractor
Photographer
Partial ED salary
Administration
A small contingency fund for unplanned expenses
The DSMA projects a cash balance of $211.0K at the start of FY 2024-25 and projects a cash balance of approximately $211.0K at the end of the budgeted FY 2023-24.

ESTIMATED INCOME ANDEXPENSES FOR FY 2024-25
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FY 2023-24 ANNUAL REPORT
JUNE 2024 18

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President, Lew Cohen, B Street Books
Vice President, Colleen Rafferty, Christensen & Rafferty Fine Jewelry Treasurer, Cathy Levitt, Tri Counties Bank
Robert Anderson, Downtown Resident
Steve Carey, LifeMoves
Martin Kent, Draper University
Tyson Mao, Wursthall
Lorry Morales, La Pinata
Joe Sully, Downtown Building Owner
Susan Uzunoglu, Susan’s European Beauty Therapy
FY23-24 ANNUAL REPORT

DSMA BOARD
JUNE 2024 19

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252 of 351

May 3, 2025

San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403

Dear Members of the City Council,

I am writing to express my strong support for the renewal of the Downtown Business Improvement Area. The Downtown San Mateo Association (DSMA) has played a crucial role in enhancing the vibrancy and appeal of our downtown district through its effective community engagement, marketing, and civic partnership initiatives. DSMA has also supported my business since its launch at the end of last year and I would not be able to have my business operating at the capacity that it is without DSMA’s support. DSMA is more than just an association, they are part of the community that brings value to the San Mateo area.

Over the past year, DSMA has continued to bring energy and collaboration to our community, benefiting both businesses and residents. The DSMA’s efforts are essential for maintaining a thriving downtown, and I urge you to approve its renewal.

Sincerely,
Dr. Justin Y. Shin
Owner
The Cupping Box
240 Main Street San Mateo, CA 94401
415-851-1415

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Downtown San Mateo Association <[email protected]>
DSMA Letter of Support
1 message
robert anderson < > Sat, May 3, 2025 at 10:36 AM
To: Downtown San Mateo Association <[email protected]>
San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403
Dear City Council Members,
The Downtown San Mateo Association (DSMA) has continued to be a crucial part of our vibrant Downtown. I have witnessed first hand how the DSMA has enhanced the vibrancy and appeal of our downtown district through effective community engagement, marketing and civic partnership.

The DSMA has organized numerous local downtown events which have brought thousands of people to the district over the past year.

These events have increased foot traffic in the area and added to the customer patronage of our local businesses and restaurants.

The DSMA has a proven track record of bringing energy and collaboration to our downtown community. I strongly urge you to approve this renewal of the Downtown Business Improvement Area.

Sincerely,
Robert Anderson
DSMA Board Member
Downtown Resident

254 of 351

May 4, 2025

San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403

Dear Members of the City Council,

It’s a small detail, but very meaningful to our little piece of San Mateo.

Over the past year, DSMA has continued to bring energy and collaboration to our community, benefitting both businesses and residents. As San Mateo residents, we continue to enjoyyearly community events such as Boos on B, La Posadas, and Boba Day! But the added bonus is that as business owners, we definitely appreciate the extra foot traffic that these community events bring. The DSMA’s efforts are essential for maintaining a thriving downtown, and I urge you to approve its renewal.

Sincerely,

Lorry Morales
Manager
La Pinata Mexicatesen

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TEL: (650) 275 -2288 | EMAIL: [email protected] 101 S San Mateo Drive, Suite 115, San Mateo CA 94401 | www. flo riano rtho . co m

April 30, 2025

San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403

Dear Members of the City Council,

I reside in San Mateo and have participate in events organized by The Downtown San Mateo Association both as an individual as well as business sponsors. I really love the events and how it brings the community together.

Over the past year, DSMA has continued to bring energy and collaboration to our community, benefiting both businesses and residents. The DSMA's efforts are essential for maintaining a thriving downtown, and I urge you to approve its renewal.

Sincerely,

Cathy (You-Chen) Tao, DDS MS
Orthodontist/Practice owner
Florian Orthodontics

256 of 351

Downtown San Mateo Association <[email protected]>
letter
Michele Lefante Perkins Wed, Apr 23, 2025 at 8:36 PM
To: Downtown San Mateo Association <[email protected]>

San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403

Dear Members of the City Council,

Sincerely,
Michele Lefante Perkins
Owner
Renew Salon

4/24/25, 9:30 AM Gmail - letter
https://mail.google.com/mail/u/0/?ik=e8715cfd54&view=pt&search=all&permmsgid=msg-f:1830253534935897291&simpl=msg-f:1830253534935897291 1/1

257 of 351

258 of 351

May 2, 2025

San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403

Dear City Council Members,

I am passing along this letter to show my support for the renewal of the Downtown Business Improvement Area. The Downtown San Mateo Association has played a leading role in enhancing the vibrancy and appeal of our downtown district through its effective community engagement, marketing, and civic partnership initiatives. People are starting to see just how great downtown San Mateo can be with the recent efforts and we need to continue to support them to see it flourish even more.

Over the past year, DSMA has continued to bring energy and thoughtful collaboration to our community, benefiting both businesses and residents. The DSMA's efforts are essential for maintaining a thriving downtown, and I urge you to please approve its renewal.

Sincerely,

David Hunsaker
Owner
Fogbird

Fogbird – 144 South B Street, San Mateo CA. 94401

259 of 351

May 19th, 2025

San Mateo City Council
330 W. 20th Avenue
San Mateo, CA 94403

Dear Members of the City Council,

Sincerely,

Jillian Thomas
Vice President of Operations
Sutter Health Mills-Peninsula Medical Center

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: PUBLIC HEARING Account Number: 23-3133 File ID: 25-9789 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Community Development Department
MEETING DATE: May 19, 2025
SUBJECT:
2025-26 Community Development Block Grant Annual Action Plan – Adoption RECOMMENDATION:

Adopt the 2025-26 Community Development Block Grant (CDBG) Annual Action Plan and direct staff to submit the plan to the U.S. Department of Housing and Urban Development (HUD); authorize the City Manager to execute the Funding Agreement with HUD for CDBG funds.

BACKGROUND:

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

The City also received an entitlement amount of HOME funds from 1994 to 2015 that was used to assist housing programs and projects for very low-income households. In 2016, the City joined a consortium with the County of San Mateo and the City of South San Francisco to pool our HOME funds to provide more efficiency and timeliness in expending those funds.

The City of Redwood City recently joined the consortium in 2025. The City still collects loan payments from loans made prior to 2016 and must re-program those funds into HOME-eligible projects. 2025-26 Annual Action Plan
The Draft Annual Action Plan, included as Attachment 1, outlines the City’s budget for the coming year with details of the programs and projects that will be undertaken to address the needs identified in the Consolidated Plan. The Consolidated Plan is a Five-Year Plan which outlines the City’s goals to address the needs of low-income households using HUD funding.

The City has not yet received an award letter from HUD detailing the exact amount of funding it will receive for the coming year. However, the CDBG entitlement amount is estimated to be $753,586 for the 2025-26 program year using the prior (2024-25) program year. The remaining funds for the budget will come from program income ($8,000) and prior year resources ($271,266). The program income is generated by repayment on housing rehabilitation loans, and prior year resources are compiled from unspent funds in various contracts. The Annual Action Plan also includes programs to address affordable housing and other community needs.

The CDBG funding categories are summarized below. At its Regular Meeting on February 19, 2025, the Community Relations Commission (CRC) identified twelve non-profit agencies to receive CDBG funds in the areas of Public Services, Economic Development, and Minor Home Repair, in addition to allocating funds to Administration and Public Facilities.

Please note that the Public Services, Economic Development, and Minor Home Repair funding categories run on a two-

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year cycle, meaning that eligible applicants for the 2025-26 Program Year are current subrecipients from the 2024-25 Program Year. Using the estimated entitlement amount of $753,586, the CRC recommended maintaining the levels of funding in 2025-26 that subrecipients received in 2024-25 in those funding categories. Administration – A maximum of 20 percent of the CDBG grant is eligible for administrative costs ($85,000). Funds will be mainly used to cover City staff salaries who administer the grant, plus materials and service costs. The administrative budget for staff was reduced to $60,000 to allocate additional funds to other CDBG activities. Also included in this category is one grant to Project Sentinel for the provision of fair housing services in the amount of $25,000.
Public Services – The cap for public services is 15 percent of the grant and prior year program income ($113,000).

The Community Relations Commission (CRC) recommended to award each applicant the same amount as the prior year ($14,100). However, since there are fewer agencies who will receive funding this year, the amount will increase slightly ($16,100 per organization).
Economic Development – The City will fund two grants for microenterprise assistance ($80,000). The two subrecipients, Renaissance and Upwards, will receive a grant of $40,000 each for general microbusiness and childcare microbusiness assistance.
Minor Home Repair – The City will fund Rebuilding Together Peninsula to administer two programs for home repair, rehabilitation, and energy updates for lower income homeowners in the amounts of $32,000 and $75,000. Public Facilities – The City will fund two non-profit agencies to make improvements to their facilities. CORA will receive $50,000 and HIP Housing will receive $150,000.
Street Improvement Project – The Department of Public Works will manage this project to increase walkability within CDBG neighborhoods, specifically focusing on pedestrian improvements near senior housing and points of interest identified in the Age-Friendly San Mateo Action Plan ($447,850). oThis activity is related to the City’s 2023-2031 Housing Element Policy H.2.4 to annually allocate and use available CDBG funds to make capital improvement project (CIP) improvements in identified Equity Priority Neighborhoods (including North Shoreview and North Central neighborhoods). Potential improvements may include: street work, crosswalk improvements, ADA ramp installation, striping, sidewalk improvements, traffic signal replacement, and other pedestrian/bicycle enhancements.

While the City does not directly manage HOME funds, for the purposes of the Annual Action Plan, the City tracks progress towards meeting its housing and Affirmatively Furthering Fair Housing (AFFH) goals through annual HOME activities undertaken by the County of San Mateo. The City also reports on any planned uses of HOME program income. In recent program years, this has included the Kiku Crossing affordable housing project on City-owned land at 480 E. 4th Avenue.

The recommended subgrantees, funding amounts, and activities for the 2025-26 Program Year are summarized in Table 1.

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Table 1 – CDBG Funding Breakdown
Table 1. CDBG Expenditures Program Year 2025-26
Annual Entitlement $753,586 (estimate)
Program Income $8,000
Prior Year Resources $271,266
Total Available Funding $1,032,852
Administration (20% cap)
Recipient Amount
City Staff Administration $60,000

Project Sentinel (Fair Housing) $25,000
$85,000
Public Services (15% cap)
CALL Primrose - Drop-in food pantry program providing free grocery services.
$16,100
CORA - Provides survivors of domestic violence and their children with legal services.
$16,100
Friends for Youth - Provides mentoring relationships and support services to underserved, vulnerable youth.
$16,100
Legal Aid Society - Legal services to households in danger of eviction and/or living in substandard conditions.
$16,100
LifeMoves - Provides shelter and supportive services to assist homeless individuals to return to self- sufficiency at the First Step for Families facility which includes 117 beds.
$16,100
Rape Trauma Services - Provides mental health services to address the multiple healing needs of child survivors of sexual violence.
$16,100

Samaritan House - Provides a broad spectrum of assistance, including case management, emergency assistance - food, clothing, shelter, healthcare - as well as financial assistance and empowerment services.
$16,100
$113,000
Economic Development
Renaissance Entrepreneurship Center - Deliver customized small business training, one-on-one consulting, and access to capital, resources, markets, and networks to assist lower- income and under-resourced residents who are starting and growing sustainable small businesses.
$40,000

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Upwards - Equip LMI microenterprise in-home childcare
providers with personalized coaching and digital tools to optimize operations and revenue, enabling them to
efficiently manage and grow their business, create local teaching assistant jobs, and expand access to affordable care quality for working families in the community.
$40,000
$80,000
Minor Home Repair
Rebuilding Together Peninsula - Safe at Home program
provides minor home repairs including health and safety measures, emergency electrical and plumbing.
$75,000
Rebuilding Together Peninsula - National Rebuilding Day provides larger scale rehabilitation of homes in conjunction with volunteers and many other funding sources.
$32,000
$107,000
Public Facilities
Street & Sidewalk Improvements (San Mateo Public Works) $447,850 CORA - A one-time grant to make repairs to their community office in San Mateo.
$50,000

HIP Housing - A one-time grant to replace an elevator at their newly acquired administrative and programs office in San Mateo.
$150,000
TOTAL Expenditures $1,032,850
Contingency Plan
The delay in CDBG funding allocations takes place at the federal level and is therefore outside the City’s control. Until the City receives confirmation from HUD on the entitlement amount for Program Year 2025-26, grant amounts are provided as estimates subject to a future adjustment. In the case that the entitlement amount is less than the previous year, the City must determine how to allocate this reduced funding to the applicants. Likewise, the City must account for how a higher entitlement amount will be distributed among subrecipients (while maintaining the 15 percent public service and 20 percent administration caps). The contingency language, which is included in the Draft Annual Action Plan, is as follows:

If the City receives more funds from HUD than what is estimated above:
Increase the amount awarded to public service applications equally while remaining under the 15 percent public service cap.
Maintain the same award amount for minor home repair, economic development, and fair housing programs. Increase CDBG administration while remaining under the regulatory cap of 20 percent. Any remaining additional funds will be used for Public Facilities Improvements and the City-led Street and Sidewalk Improvements Program.

If the City receives less funds from HUD than what is estimated above:

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Reduce the amount awarded for all public service applications equally to remain under the 15 percent cap. If the amount awarded per application is below $10,000, award fewer public service programs. Consult with applicants first if the equal distribution is below $10,000.
Retain the amounts for minor home repair, economic development, and fair housing awards. Reduce the amount allocated to the City-led public facilities Street & Sidewalk Improvements project. Reduce CDBG administration to remain under the regulatory cap of 20 percent.

Public Comments
The City is accepting comments on the CDBG 2025-26 Annual Action Plan from April 15 – May 19. As of the publication of this report, one comment was received from a resident on Street and Sidewalks Improvements:
Sidewalk repairs and green pedestrian streetlights are needed at the north side of 5 th Avenue and the south side of 4th Avenue and cross streets from South Amphlett to South Delaware.

Staff will continue accepting comments from the public through 5:00pm on May 19, 2025, and incorporate these into the Annual Action Plan and the staff presentation for this item.

Next Steps
If City Council adopts the 2025-26 CDBG Annual Action Plan, staff will submit the Annual Action Plan to HUD for approval.

HUD will inform the City of its final 2025-26 CDBG allocation via an award letter. In 2024, the City received this letter in mid-May. The final distribution of CDBG Funds will be updated into the final draft of the Annual Action Plan before submittal to HUD. The City then executes a Funding Agreement with HUD. The timing of receipt of this agreement varies but generally occurs in late summer.

BUDGET IMPACT:

The CDBG budget included in this report is outlined in the Draft 2025-26 Annual Action Plan. This budget has no impact on the City’s General Fund, as the funds are awarded by HUD to be used for program administration and sub-granted by the City to the organizations identified in Table 1.

The confirmed amount will be updated into the budget in the final Annual Action Plan, when HUD releases the exact CDBG allocation later this year.

At the April 21, 2025 City Council Study Session on implementation of the City’s Housing Element policies related to tenant protections and anti-displacement, several questions were raised regarding the use of CDBG funds for tenant/landlord education, legal assistance, and rental assistance. While CDBG funds may be used for programs related to housing, it should be noted that CDBG funds must 1) primarily serve lower-income households, 2) serve one of the goals in the City’s Consolidated Plan, and 3) not exceed the 15 percent cap for Public Services and 20 percent cap for Administration.

The City’s current (2023-2027) Consolidated Plan determined the funding categories described above. CDBG funds within Public Services and Fair Housing (included under the Administration cap) could potentially be used for new activities related to tenant protections/anti-displacement. However, due to the funding cap in both categories, additional organizations or increases in funding for any of the activities included in Table 1 would require a reduction in one of the other activities.

ENVIRONMENTAL DETERMINATION:

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

NOTICE PROVIDED
All meeting noticing requirements were met.

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ATTACHMENTS
Att 1 – Draft 2025-2026 CDBG Annual Action Plan

STAFF CONTACT
Rachel Horst, Housing Manager
[email protected]

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CITY OF SAN MATEO
2025-2026

DRAFT ANNUAL ACTION PLAN

PREPARED BY:

COMMUNITY DEVELOPMENT DEPARTMENT

HOUSING AND NEIGHBORHOOD SERVICES DIVISION
333 W 20TH AVENUE
SAN MATEO, CA 94403
650-522-7220

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2 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Executive Summary

AP-05 Executive Summary - 91.200(c), 91.220(b)

1. Introduction

The U.S. Department of Housing and Urban Development (HUD) designated the City of San Mateo as an Entitlement community. HUD awards Community Development Block Grant (CDBG) funds to Entitlements across the United States based on formula calculations, including factors such as the community's population, pre-1940s housing stock, growth, and decline. San Mateo receives an annual Community Development Block Grant (CDBG) allocation. In Program Year (PY) 2025, the City estimates it will receive $753,586.00 in CDBG funding.

To receive these funds, the City must complete a Five-Year Consolidated Plan in conjunction with the San Mateo Housing Consortium to assess community needs relating to housing, public services, public facilities, and infrastructure. The analysis looks at populations most affected by the current housing stock, the state of the economy, and the ability to meet daily living needs. The Consolidated Plan outlines priorities and goals to address those needs. The San Mateo County Consolidated Plan contains the full data analysis for the area and the City of San Mateo Consolidated Plan contains an abbreviated data analysis. The two documents work together to complete the full analysis and strategies for the area.

Once a year, the City of San Mateo drafts an Action Plan. The City's Annual Plan for program year 2025 is the third year of the multi-year 2023-28 Consolidated Plan. The Annual Plan outlines needs and develops strategies to address priority needs of low- and moderate-income populations in San Mateo.

At the conclusion of each program year, the City of San Mateo drafts a final report, called the Consolidated Annual Performance and Evaluation Report (CAPER), to report on the City’s progress in meeting the Consolidated Plan goals.

This document will serve as the Program Year (PY) 2025 Action Plan for the City of San Mateo, with a program year from July 1, 2025, to June 30, 2026.

2. Summarize the objectives and outcomes identified in the Plan

The City's Consolidated Plan identifies the following needs, with goals and activities that further HUD's program goals.

Need: Affordable Housing
Goal: The city of San Mateo continues to have a significant need for more affordable housing. To address this need, the City will continue to make efforts to increase, maintain, and improve the supply of affordable housing for low/mod-income families.

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3 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Activities: The City will use CDBG and other local funding sources for new construction, acquisition, and/or rehabilitation of affordable housing units throughout the city. Additionally, the City will preserve, repair, and maintain its existing housing stock to address health and safety issues, as well as make units more accessible, weatherized, sustainable, and energy efficient. The City will also continue to administer its First Time Homebuyer program and existing below-market housing units.

Need: Public Facilities Improvements
Goal: San Mateo residents and stakeholders articulated a continued need for improvements to public facilities in the city, primarily those located in areas with a high percentage of low/mod- income families. They also spoke to the need for public facilities improvements to better serve the needs of special needs populations, such as youth and seniors.

Activities: The City will use its CDBG funds, when feasible, to preserve, improve, and/or rehabilitate facilities used by non-profit agencies for the provision of public services, as well as City-owned community facilities, such as parks and recreation centers.

Need: Public Services
Goal: The continued provision of public services was identified through the community engagement process as a critical need in San Mateo. As such, the City will continue providing services to improve the quality of life for low/mod-income families and individuals, including those at risk of experiencing homelessness and special needs populations.

Activities: The City will continue allocating 15% of its entitlement and previous year’s program income from the City’s Community funding program. Collectively, these funds will be granted to non-profit organizations for the provision of public services to low/mod-income city residents. Additional funding will also be provided to assist microbusinesses. These funds will be granted to non-profit agencies for provision of public services to individuals and businesses.

Need: Community Development
Goal: Residents and stakeholders through the community engagement process articulated a significant need for infrastructure improvements in areas with high concentrations of low/mod- income households
Activities: The City will direct infrastructure improvements to its CDBG Priority Neighborhood.

The City will utilize its CDBG funding for capital projects that include, but are not limited to, repairing deteriorating streets, improving accessibility and safety of streets and sidewalks, constructing accessible curb ramps, and other general public safety improvements. The Department of Public Works will manage projects.

Need: Affirmatively Further Fair Housing
Goal: As part of its 2023-31 Housing Element update, the City conducted an assessment of fair housing to understand fair housing issues and contributing factors that inhibit housing choice and access to opportunity in San Mateo. The City has incorporated its Affirmatively Furthering

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Activities: The City will allocate funds to non-profit organizations that provide fair housing services to city residents. The City will also work towards the goals from the Assessment of Fair Housing.

3. Evaluation of past performance

The City recognizes the ongoing needs of the San Mateo community and continues to fund core service needs. All of the Community Funding programs have met or exceeded their goals for service, showing an ongoing need for the services they are providing the community. The cost of housing continues to be extremely high in San Mateo and as a result many of the activities focus on services related to housing.

The City's Minor Home Repair programs have been slower to meet their goals, but all organizations and City staff agree that there is a great need for their services. One concern from the sub grantees is that the rising costs of doing projects have made it difficult to find and complete enough home repairs to stay on track of meeting goals.

The outcomes for the goals identified in the 2023-2027 Consolidated Plan and reported in the 2023- 2024 CAPER are as follows:

• Affordable Housing - 225 rental units constructed
• Community Funding- Public service activities other than low/moderate income housing benefit - 4024 persons assisted
• Maintain & Preserve Existing Housing - 11 homeowner housing units repaired • Microbusiness Assistance – 33 businesses assisted
• Street and Sidewalk improvements - 31,530 persons assisted

The progress made on tasks and projects reported in the 2023-2024 CAPER is summarized below:
• Call Community Pantry (Call Primrose): Served 1,547 low- and moderate-income residents with healthy and nutritious food through a community food pantry. • Legal Services (Community Overcoming Relationship Abuse - CORA): Legal assistance was provided for victims of domestic abuse and their families. 128 families received services • Mentoring Services (Friends for Youth): This activity provided school-based mentoring and other wrap-around services for 361 low- and moderate-income youth • HomeSavers (Legal Aid of San Mateo County): Legal assistance was provided to 218 San Mateo residents.
• Shelter Operations (LifeMoves): Provided support for supportive services and interim housing programs for individuals experiencing homelessness. 112 people were provided services. • Ombudsman (Ombudsman Services of San Mateo County): Assisted 395 seniors living in long-

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5 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 term care facilities.
• Sexual Abuse Services for Children and Youth (Rape Trauma Services): This activity provides essential services for children and youth survivors of sexual trauma. 94 children and youth were served.
• Core Services Program (Samaritan House): This activity provided low- and moderate-income families with case management and emergency assistance for food, clothing, and shelter.

Services were provided to 648 residents of the City.
• Adopt a School: Lead Elementary (St. James AME Zion Church): This activity provided breakfasts and school uniforms to low- and moderate-income children. A total of 521 students at Lead Elementary were assisted.
• Safe at Home (Rebuilding Together Peninsula): This activity provided minor home repairs to address health and safety issues. Three low- and moderate-income households were served. • Fair Housing Services (Project Sentinel): 11 persons were provided fair housing services. • 2022 Street and Sidewalk Reconstruction (City): This project improved the street and path of travel on sidewalks in a community with 62.32 percent low- and moderate-income households.

A total of 31,530 households will benefit.
• Creating Economic Opportunity for Low-Income Men and Women (Renaissance): This activity provided customized small business assistance training. 33 residents were assisted.

4. Summary of Citizen Participation Process and consultation process

A Community Needs Assessment meeting was held in November 2024 by the Community Relations Commission (CRC), Outreach included notices to both social service providers and resident, inclusion in City E-newsletter, and posted on the City website. Feedback from this meeting was used to guide the development of the draft 2025-2026 Annual Action Plan, which was presented to the CRC once again in April 2025 for review and later to the City Council in May 2025 for final approval.

5. Summary of public comments

The public comment period will be open from April 15, 2025, through May 19 15, 2025. The City will receive public comments prior and during public meetings for the Community Relations Commission (CRC).

6. Summary of comments or views not accepted and the reasons for not accepting them

There weren't any community comments or views that were not considered for this year.

7. Summary

The City's 2025 Annual Plan has been developed based on the City's service priority needs as well as the goals set forth in the 2023-27 Consolidated Plan.

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1. Agency/entity responsible for preparing/administering the Consolidated Plan

The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG Administrator SAN MATEO Community Development Department HOME Administrator SAN MATEO Community Development Department Table 1 – Responsible Agencies

Narrative

The City of San Mateo receives its own allocation of CDBG funds. The City is a member of the San Mateo County Housing Consortium to share the HOME allocation. San Mateo County administers the HOME funding source, utilizing their experience successfully implementing other HUD- funded programs, working with low- and moderate-income beneficiaries and community service providers.

Consolidated Plan Public Contact Information

City of San Mateo
Neighborhood Improvement and Housing Division
330 W. 20th Ave
San Mateo, CA 94403
Phone: (650) 522-7223
Email: [email protected]

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7 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 AP-10 Consultation - 91.100, 91.200(b), 91.215(l)

1. Introduction

The City consulted with many different stakeholders in developing this Annual Action Plan. Meetings were held internally with the Department of Public Works regarding prioritizing street reconstruction and pedestrian safety projects. Non-profit partners from the area were invited to a Community Needs Assessment workshop and Community Relations Commission meetings.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).

Throughout the Annual Action Plan period, the City will maintain its relationships with organizations that serve the public, especially low- and moderate-income residents. Efforts will include:
• Working with other entitlement jurisdictions in San Mateo County to coordinate and streamline the CDBG process.
• Working with non-profit social service providers, the County of San Mateo, other entitlement jurisdictions, and other stakeholders to coordinate the provision of needed services in the community.
• Providing funds through the Community Funding program to non-profit service providers. • Working with non-profit organizations, private developers, and the County of San Mateo to build and maintain affordable housing. Working with the Continuum of Care, Homeless Outreach Team, and non-profit service providers to coordinate homeless services.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Continuum of Care (COC) guides the implementation of the county's housing and service system to meet the needs of homeless individuals and families. The City of San Mateo participates in COC meetings and monitors decision-making to better understand latest trends in homeless outreach. The COC coordinates the following activities:
• System planning (identifying gaps, developing strategies to fill gaps, responding to emerging best practices, etc.)
• Setting funding priorities for Emergency Solutions Grant and COC funds • Assessing system performance and making system redesigns as needed • Coordinating with other planning entities such as the Community Action Agency • Undertakes a wide range of efforts to meet the needs of homeless individuals and families

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8 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Chronically Homeless: COC has created a multi-disciplinary, bilingual, Homeless Outreach Team (HOT) to conduct intensive outreach and engagement with unsheltered and chronically homeless individuals and families located throughout the County, with specialized HOT teams in the cities of San Mateo, Redwood City, South San Francisco, Half Moon Bay, Pacifica, and East Palo Alto.

Families with children: To reduce the number of unsheltered families, the COC has developed a rapid re- housing program. The San Mateo County Human Services Agency has provided funding for a motel voucher program to assist families with children that are waiting to access shelter.

Veterans: Needs include housing and assistance for homeless, employment and education services, and improved and increased liaisons with the Veterans Benefits Administration.

Youth: Currently, HUD COC funds are provided to the San Mateo County Mental Health Association to operate its Support and Advocacy for Young Adults in Transition Program, which provides case management and housing search/stabilization services to homeless youth. The San Mateo County Housing Authority administers the Family Unification Program vouchers.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS.

The City of San Mateo does not receive Emergency Solutions Grant (ESG) funding. However, the City does participate in COC meetings as part of its ongoing responsibility in receiving HUD funding. DOH coordinates closely with the COC in regard to the County's ESG, COC, and CDBG funding and is represented on the COC Steering Committee. DOH has also delegated responsibility for management of all ESG funds, plus the portion of the County CDBG funds used for homeless activities, to the COC Lead Agency, and the San Mateo County Human Services Agency (HSA). Management responsibilities include issuing requests for proposals for ESG funding, awarding contracts, gathering community input, data analysis, and contract monitoring. The COC Lead Agency is also the Homeless Management Information System (HMIS) Lead Agency and develops the policies and procedures for operation and administration of HMIS for ESG funded projects.

2. Agencies, groups, organizations and others who participated in the process and consultations

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9 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization City of San Mateo
Agency/Group/Organization Type Agency - Managing Flood Prone Areas Agency - Management of Public Land or Water Resources
Agency - Emergency Management
Other government - Local
Grantee Department
What section of the Plan was addressed by
Consultation?
Infrastructure
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with other departments on a regular basis to understand the needs of the community that may not be directly under the grantee department’s responsibility.
2 Agency/Group/Organization Center for Independence of Individuals with Disabilities Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
3 Agency/Group/Organization Friends for Youth
Agency/Group/Organization Type Services-Children
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.

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10 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 4 Agency/Group/Organization HIP Housing
Agency/Group/Organization Type Housing
Services - Housing
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Economic Development
Market Analysis
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
5 Agency/Group/Organization PROJECT SENTINEL
Agency/Group/Organization Type Services - Housing
Service-Fair Housing
Regional organization
Neighborhood Organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
6 Agency/Group/Organization Rape Trauma Services
Agency/Group/Organization Type Services-Victims of Domestic Violence Services-homeless
Services – Victims
Services - Children Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homelessness Strategy
Homeless Needs - Families with children

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11 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
7 Agency/Group/Organization Legal Aid Society of San Mateo County Agency/Group/Organization Type Services - Housing
Service-Fair Housing
Regional organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year. Most recently, the organization provided data and input on evictions in San Mateo in preparation for a City Council study session on tenant protections/anti-displacement (in spring 2025).
8 Agency/Group/Organization CALL Primrose
Agency/Group/Organization Type Regional organization
What section of the Plan was addressed by
Consultation?
Basic human needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
9 Agency/Group/Organization LifeMoves
Agency/Group/Organization Type Housing
Services-homeless
Regional organization

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12 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
10 Agency/Group/Organization Samaritan House
Agency/Group/Organization Type Services - Housing
Services-homeless
Services-Health
Regional organization
Food, clothing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Basic human needs
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year. Most recently, the City engaged with this organization on the topic of tenant protections/anti-displacement in preparation for a City Council study session on tenant protections/anti- displacement (in spring 2025).
11 Agency/Group/Organization Renaissance Entrepreneurship Training Program Agency/Group/Organization Type Services-Employment
Regional organization

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Consultation?
Economic Development
Market Analysis
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
12 Agency/Group/Organization Housing Authority of San Mateo County Agency/Group/Organization Type PHA
Other government - County
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
A representative assisted the City with the public housing response/narrative of the Action Plan. Additionally, the Housing Authority provided information on voucher-based programs in preparation for a City Council study session on tenant protections/anti-displacement (in spring 2025).
13 Agency/Group/Organization Bay Area Legal Aid
Agency/Group/Organization Type Housing
Services - Housing
Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year. Most recently, the City engaged with this organization on the topic of tenant protections/anti-displacement in preparation for a City Council study session on tenant protections/anti- displacement (in spring 2025).
14 Agency/Group/Organization Community Overcoming Relationship Abuse (Cora)

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14 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Agency/Group/Organization Type Services-Victims of Domestic Violence Services-homeless
Services - Victims
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homelessness Strategy
Homeless Needs - Families with children
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
15 Agency/Group/Organization Rebuilding Together Peninsula Agency/Group/Organization Type Housing
Services - Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
16 Agency/Group/Organization Association Of Bay Area Governments Agency/Group/Organization Type Regional organization
Planning organization
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Economic Development
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year.
17 Agency/Group/Organization San Mateo County Health Department

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15 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Agency/Group/Organization Type Services-Health
Health Agency
Publicly Funded Institution/System of Care
Other government - County
Services - Mental Health
Services – Persons with HIV/AIDS
What section of the Plan was addressed by
Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
. The City consults with the organization regularly on the needs of the community throughout the program year through the City’s participation in the Continuum of Care.
18 Agency/Group/Organization City of Daly City
Agency/Group/Organization Type Other government - Local

What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year as well as coordinating efforts to fund community based organizations.
19 Agency/Group/Organization San Mateo County – Department of Housing Agency/Group/Organization Type Other government - County What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year as well as coordinating efforts to fund community based organizations.

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Consultation?
Housing Need Assessment
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the department on various compliance issues and strategies for spend-down of funding, meeting on a monthly basi- 21 Agency/Group/Organization City of Redwood City
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Market Analysis
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
The City consults with the organization regularly on the needs of the community throughout the program year as well as coordinating efforts to fund community based organizations.

Identify any Agency Types not consulted and provide rationale for not consulting The City strived to include as broad a group of community stakeholders as possible.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of
Care
San Mateo County
Human Services
Agency
The City has identified the core service needs of Basic Human Needs and Preserving or Providing Affordable Housing, both of which support homelessness programming.

Housing
Element City of San Mateo
The Housing Element documents the housing needs in San Mateo and includes the programs and policies to address its Four Goals: Maintain the quality and character of residential neighborhoods; Provide a diversity of housing types, responsive to household size, income and age needs; Ensure that all new housing is developed or remodeled in a sustainable manner; Encourage conservation improvements and measures to the existing housing stock.

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17 OMB Control No: 2506-0117 (exp. 09/30/2021) Updated 04/18/2025 Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Local Hazard
Mitigation Plan
City of San Mateo -
Fire
The plan focuses on the protection of the community from risks associated with disaster. Included are goals to protect community, housing stock, and economic resources. This plan overlaps with the Consolidated Plan as it identifies social vulnerability of low-income households to disasters.

Table 3 - Other local / regional / federal planning efforts

Narrative

In recent years, the City has participated in many conversations about community needs such as affordable housing. Fortunately, the City has been collaborating with other San Mateo County jurisdictions through a regional group called 21 Elements. This partnership brings valuable information of current policies and programs to address the needs of the community through monthly meetings with city and county governments, along with partner agencies and organizations. Additionally, the City has had the opportunity to collaborate with nearby jurisdictions such as Santa Clara County through 21 Elements to discuss the disparities that impact a community member’s access to affordable housing.

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AP-12 Participation - 91.401, 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

The City of San Mateo followed guidelines specified in its Community Participation Plan, engaging as many stakeholders as possible in setting goals and prioritizing the community's needs for the Annual Action Plan. The following actions were taken:

• November 12, 2024 - Sent notification via email to the listserv of community members signed up for Community Relations Commission events.
• November 13, 2024 - Email to non-profit partners and community stakeholders on event information. • November 20, 2024 – Regular Meeting of the Community Relations Commission. Community Needs Assessment on the significance for the public to determine community priorities for CDBG-funded activities. • February 19, 2025 - Regular meeting of the Community Relations Commission for the Needs Assessment. Staff gave brief presentation on the applications received and discussed the funding recommendations. • April 1, 2025 – Newspaper Ad.
• April 11, 2025 - Email to non-profit partners, neighborhood associations, and other community stakeholders with event information, sent notification via email to the listserv of community members signed up for Community Relations Commission events. • April 11, 2025 - City web posting, and email notification of the Annual Plan draft. • April 16, 2025 - Regular meeting of Community Relations Commission, hearing for the draft Annual Plan. • May 19, 2025 - Regular meeting of the City Council, approval of Annual Plan for submission to HUD. • 30-Day Comment period – April 15th – May 19th. 15th

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Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Mail
Non-
targeted/broad
community
November 12, 2024.

Sent notification via
email to the listserv
of community
members signed up
for Community
Relations Commission
events
No comments were
received. N/A
2 Mail
Non-
targeted/broad
community
November 13, 2024.

Email to non-profit
partners and
community
stakeholders on
event information
No comments were
received. N/A

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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
3 Public Meeting
Non-
targeted/broad
community
November 20, 2024.

Several members of
the community,
representatives from
local non-profits, and
other stakeholders
were in attendance
for the special
meeting of the
Community Relations
Commission.

Four comments
received during the
Community Needs
Assessment.

All comments have
been accepted
4 Public Meeting
Non-
targeted/broad
community
February 19, 2025.

Several members of
the community,
representatives from
local non-profits, and
other stakeholders
were in attendance
for the special
meeting of the
Community Relations
Commission.

Comments received
to address the
needs of public
service
organizations.

All comments have
been accepted
5 Newspaper Ad
Non-
targeted/broad
community
April 1, 2025.

Newspaper Ad
No comments were
received. N/A

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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
6 Mail

Non-
targeted/broad
community
April 11, 2025. Email
to non-profit
partners,
neighborhood
associations, and
other community
stakeholders with
event information,
sent notification via
email to the listserv
of community
members signed up
for Community
Relations Commission
events.

No comments were
received. N/A
7 Internet
Non-
targeted/broad
community
April 11, 2025. City
web posting, and
email notification of
the Annual Plan draft
No comments were
received.

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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
8 Public Hearing
Non-
targeted/broad
community
April 16, 2025.

Regular meeting of
Community Relations
Commission, hearing
for the draft Annual
Plan.

One resident
expressed the need
for sidewalk repairs
and green
pedestrian
streetlights on the
north side of 5th
Avenue and the
south side of 4th
Avenue and cross
streets from South
Amphlett to South
Delaware.

9 Public Hearing
Non-
targeted/broad
community
May 19, 2025.

Regular meeting of
the City Council,
public hearing and
approval of Annual
Plan for submission
to HUD.

Will be included in
the final draft.

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Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
10 Comment Period
Non-
targeted/broad
community
Pending: 30 day
comment period April
15, 2025-May 19 15,
2025.

Will be included in
the final draft.

Table 4 – Citizen Participation Outreach

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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction

Anticipated resources from CDBG include the estimated 2025 entitlement grant of $753,586. At the time of the publication of this document for a 30-day comment period, the City did not know the exact amount of funding it would receive in 2025. Following the guidance from HUD notices, the City is publishing this document with estimates and a contingency plan.

CDBG CONTINGENCY LANGUAGE
If the City receives more than what is estimated above:
• Increase the amount awarded to public service applications equally while remaining under the 15% public service cap. • Maintain the same award amount for minor home repair, economic development, and fair housing programs. • Increase CDBG administration while remaining under the regulatory cap of 20%. • Any remaining additional funds will be used for Public Facilities Improvements and the City-led Street and Sidewalk Improvements Program.

If the City receives less than what is estimated above:
• Reduce the amount awarded for all public service applications equally to remain under the 15% cap. If the amount awarded per application is below $10,000, award fewer public service programs. Consult with applicants first if the equal distribution is below

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$10,000.
• Retain the amounts for minor home repair, economic development, and fair housing awards. • Reduce the amount allocated to the City-led public facilities Street & Sidewalk Improvements project. • Reduce CDBG administration to remain under the regulatory cap of 20%.

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 3 Expected Amount
Available
Remainder
of ConPlan
$
Narrative
Description Annual
Allocation:
$
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services

753,586.00 8,000.00 271,266 1,032,852 1,507,172
Annual Allocation
includes CDBG
2025 entitlement
of $753,586.

Prior Year
Resources
includes unspent
CDBG funds from
prior entitlement
years (2022, 2023,
2024) totaling to
$271,266.

Table 5 - Expected Resources – Priority Table

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.

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San Mateo is an entitlement jurisdiction that receives an annual CDBG allocation and is also part of a cohort with other entitlement jurisdictions to streamline the accessibility of resources to the public. The City will use its entitlement to fund non-profit agencies that provide public services, economic development, minor home repair, and capital improvements to public facilities. This year, the City is allocating CBDG funds for non- profit agencies to make capital improvements to their public facilities located in San Mateo. A Notice of Funding Availability was released for agencies to submit their proposals. In case the allocated funds may not cover the full cost of an awarded improvement project, applicants are expected to present additional funding sources that will help cover the full cost of the project. Depending on the organization, this includes CDBG funds from other jurisdictions in the County, County local funds, City General Funds, and private donations.

While the City does not receive HOME funds directly, the City is part of a HOME consortium with the County of San Mateo, City of Redwood City, and City of South San Francisco. Jurisdictions in the consortium combined their HOME entitlements to create a larger impact on the community.

Besides the consortium, the City receives HOME loan-repayments from funded projects prior to the development of the consortium. Any repayments received are added to the City’s available program income for CDBG-funded projects.

Through the State, the City receives an annual allocation of the Permanent Local Housing Allocation (PLHA) to support the City’s goal to increase affordable housing availability. This allocation has supported affordable housing projects since 2019. In 2024, the City received $278,448 in PLHA funds, and in 2025, the City anticipates receiving an additional $224,653. There is a continuous effort to address housing concerns, such as the limited amount of affordable housing, throughout the City.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan

The City is continuing to increase the availability of affordable housing, a goal described in the 2023-31 Housing Element. There are two publicly owned properties that will offer affordable housing in San Mateo: Kiku Crossing and Bespoke. Kiku Crossing is located on East 4th Avenue, a former public parking lot. This property will offer 225 affordable units for families and individuals. Construction was completed in Winter of 2023 and leasing began in fall 2024; the development was fully occupied as of November 2024. An additional and on-going project is Bespoke, also a former parking lot on South B Street. Bespoke will provide 71 units of affordable housing and a first-floor space for the nonprofit Self-Help for

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the Elderly in partnership with an affordable housing developer and a commercial developer.

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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Maintain & Preserve
Existing Housing
2023 2027 Affordable Housing Citywide Affordable
Housing
CDBG:
$107,000
Homeowner Housing
Rehabilitated: 10
Household Housing Units
2 Community Funding 2023 2027 Non-Housing
Community
Development
Citywide Public Services CDBG:
$113,000
Public service activities
other than
Low/Moderate Income
Housing Benefit: 2,226
Persons Assisted
3 Street and Sidewalk
Improvements
2023 2027 Non-Housing
Community
Development
CDBG Priority
Neighborhood
Community
Development
CDBG:
$447,850
Public Facility or
Infrastructure Activities
other than
Low/Moderate Income
Housing Benefit: 20000
Persons Assisted
4 Public Facilities 2023 2027 Non-Housing
Community
Development
Citywide Public Facilities
Improvements
CDBG:
$200,000
Other: 2 Other

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Affordable Housing 2023 2027 Affordable Housing Citywide Affordable Housing
HOME
Program
Income:
$650,000
Local
funding:
$4,850,000
Rental units constructed:
225 Household Housing
Unit
6 Microbusiness
Assistance
2023 2027 Economic
Development
Citywide Economic
Development
CDBG:
$80,000.00
Businesses assisted: 61
Businesses Assisted
7 AFFH: Adjust City's
BMR Program
2023 2024 Affordable Housing Citywide Lack of Affordable Housing in
Opportunity
Areas

8 AFFH: Down Payment
Assistance Program
2023 2031 Accessible
Homeownership
Citywide Historic
Discrimination
and Mortgage
Denials

9 AFFH: Forgivable
Loans for ADUs
2025 2026 Affordable Housing
Increased Housing
Supply and
Affordable Housing
Citywide Low-income
Rentals in Low
Opportunity
Tracts

10 AFFH: Affirmatively
Market City Housing
2023 2031 Affordable Housing Citywide Lack of Affordable Housing in
Opportunity
Areas

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
11 AFFH: Prioritize
Funding for
Affordable Housing
2027 2028 Affordable Housing Citywide Low-income
Rentals in Low
Opportunity
Tracts

12 AFFH: Incentivize
Developers
2023 2031 Affordable Housing Citywide Lack of Affordable Housing in
Opportunity
Areas

13 AFFH: Conduct an
Area Plan for
Neighborhoods
2023 2031 Land Use resources Citywide Lack of Affordable Housing in
Opportunity
Areas
Low-income
Rentals in Low
Opportunity
Tracts

14 AFFH: Preference
Home Repairs in LMI
Census Tracts
2023 2031 Financial resources Citywide Disparities in
Access to
Opportunity

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
15 AFFH: Monitor
Affordable Housing
2023 2031 Affordable Housing Citywide Historic
Discrimination
and Mortgage
Denials
Low-income
Rentals in Low
Opportunity
Tracts

16 AFFH: Expand Tenant
Protections
2023 2026 Displacement risk Citywide Disparities in
Access to
Opportunity

17 AFFH: Fair Housing
Training for
Landlords/Tenants
2023 2027 Equal opportunity
housing
Citywide Fair Housing
Issues

18 AFFH: Create a Fair
Housing Webpage
2024 2031 Equal opportunity
housing
Citywide Low-income
Rentals in Low
Opportunity
Tracts
Fair Housing
Issues

19 AFFH: Ensure
Properties Explain
Accommodations
2024 2026 Equal opportunity
housing
Citywide Disparities in
Access to
Opportunity
Fair Housing
Issues

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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
20 AFFH Goal: Prevent
Displacement
2023 2031 Affordable Housing Citywide Low-income
Rentals in Low
Opportunity
Tracts

Table 6 – Goals Summary

Goal Descriptions

1 Goal Name Maintain & Preserve Existing Housing
Goal
Description
Provide funds to preserve, repair, and maintain existing housing stock. Emphasis on repairs that clear health and safety issues, retrofits to homes for more sustainability and energy efficiency, and make properties more accessible for individuals with special needs.
2 Goal Name Community Funding
Goal
Description
Provide grants to non-profit organizations for provision of public services to low- and moderate-income individuals, families, and businesses in San Mateo.
3 Goal Name Street and Sidewalk Improvements
Goal
Description
Repair deteriorated streets, as well as provide accessibility and public safety improvements to streets and sidewalks for pedestrians, bicycles and autos in the CDBG Priority Neighborhood. 4 Goal Name Public Facilities
Goal
Description
Provide funds for repairs and health/safety measures to be completed at buildings used by non-profit agencies for provision of public services.
5 Goal Name Affordable Housing
Goal
Description
Provide funding for new construction, acquisition and/or rehabilitation of affordable units through City financial assistance and the inclusionary Below Market Rate program.

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6 Goal Name Microbusiness Assistance
Goal
Description
Provide grants to non-profit service providers who assist low- and moderate-income residents who own or are attempting to start a small business.
7 Goal Name AFFH: Adjust City's BMR Program
Goal
Description
Adjust the city’s Below Market Rate (inclusionary) program to provide larger density bonuses, and/or increased city support in exchange for affordable units that address the needs of residents with disproportionate housing needs (e.g., accessible/ visitable units for persons with disabilities, child-friendly developments with day care on site for single parents, and 3-4 bedroom units for larger families.

Contributing factors to be addressed:
• Accessibility, development of affordable units.

Fair housing issues/impediments:
• Disproportionate housing needs;
• Displacement due to rent increases for Spanish speaking and large households; • Lack of accessible housing for persons with disabilities; and • Limited housing for families.

Metrics and milestones:
• Perform feasibility analysis to redesign the program to allow a menu of options. Ensure analysis includes review of housing for households with disproportionate needs, along with income levels.

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8 Goal Name AFFH: Down Payment Assistance Program
Goal
Description
Participate in a regional downpayment assistance program with affirmative marketing to households with disproportionate housing needs including disabilities, single parents, and Hispanic households (e.g. Spanish and English, targeted to northeast neighborhoods).

Contributing factors to be addressed:
• Inaccessible homeownership due to financial barriers. • Lack of support for affordable housing, creating barriers to approval.

Fair housing issues/impediments:
• Disproportionate housing needs.

Metrics and milestones:
• Affirmatively market down payment assistance to 20 Hispanic households; • Provide homebuyer education to 200 households;
• Work with other jurisdictions to conduct outreach and education; and • Ensure programs affirmatively market to impacted neighborhoods, including North Central and North Shoreview.

Timeframe for achievement:

Meet quantified objectives by end of Housing Element period in 2031; Conduct homebuyer/ outreach and education quarterly in partnership with HEART (Housing Endowment and Regional Trust of San Mateo County).

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9 Goal Name AFFH: Forgivable Loans for ADUs
Goal
Description
Support the design of a regional forgivable loan program for homeowners to construct an ADU that is held affordable for extremely low income households for 15 years.

Contributing factors to be addressed:
• Lack of affordable housing in high opportunity areas. • Lack of accessible, affordable units.

Fair housing issues/impediments:
• Disparities in access to opportunities.

Metrics and milestones:
• Design regional loan forgiveness program.
• Target those with disproportionate housing needs with affirmative marketing with goal to reach five households annually.

Timeframe for achievement:

Begin design in summer 2025; complete by winter 2026.

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10 Goal Name AFFH: Affirmatively Market City Housing
Goal
Description
Add more city supported housing with affordability restrictions in moderate and high resource areas. Affirmatively market the housing to households with disproportionate housing needs including persons with disabilities, single parents, and Hispanic households (e.g., Spanish and English, targeted to northeast neighborhoods).

Contributing factors to be addressed:
• Lack of affordable housing supply;
• Lack of accessible affordable units; and
• Concentration of naturally occurring affordable housing in low opportunity census tracts.

Fair housing issues/impediments:
• Disproportionate housing needs.
• Lack of accessible housing for persons with disabilities.

Metrics and milestones:
• Require developers to affirmatively market 1,000 units to those with disproportionate housing needs over the eight-year period (approximately 125 annually).
• Continue to update housing inventory.

Timeframe for achievement:
2031 (annually); as development projects come in for approvals/ financing.

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11 Goal Name AFFH: Prioritize Funding for Affordable Housing Goal
Description
Prioritize city funding proposals for city funded affordable housing that are committed to serving hard to serve residents (e.g. extremely low income, special needs, on site services).

Contributing factors to be addressed:
• Lack of accessible affordable housing;
• Lack of affordable housing supply; and
• High housing costs.

Fair housing issues/impediments:
• Disproportionate housing needs;
• Displacement due to rent increases; and
• Disparities in access to opportunity.

Metrics and milestones:
• Conduct a review of best practices and develop a program to prioritize City funding for housing projects.

Timeframe for achievement:
• 2027 to 2028: conduct a review of best practices.

Develop a draft program for City Council adoption.

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12 Goal Name AFFH: Incentivize Developers
Goal
Description
Incentivize developers through direct subsidies, fee waivers, and/ or density bonuses to increase accessibility requirements beyond the federal requirement of 5% for subsidized developments.

Contributing factors to be addressed:
• Lack of access to opportunity concentrated in some census tracts. • Lack of accessible housing.

Fair housing issues/impediments:
• Persons with disabilities have disproportionate housing needs. • Persons with disabilities and persons of color are most likely to file fair housing complains with HUD.

Metrics and milestones:
• Update development agreements for projects with City subsidies to include additional accessible units. • Update City’s Inclusionary Housing Policy to require projects that receive City subsidies to increase the percentage of units that meet accessibility requirements.

Timeframe for achievement:
• 2023-2031: (ongoing) as development opportunities come available; • 2025-2026: Draft Update Inclusionary Housing Policy; and • Review developer agreements as projects come in annually.

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13 Goal Name AFFH: Conduct an Area Plan for Neighborhoods Goal
Description
As part of the General Plan, conduct an area plan for the North Shoreview and North Central neighborhoods and prioritize land use and design around Highway 101 to improve access and reduce the division of the urban form produced by the highway.

Contributing factors to be addressed:
• Lack of affordable housing in high opportunity areas; • Lack of accessible affordable units; and
• Concentration of NOAH in low opportunity census tracts.

Fair housing issues/impediments:
• Segregation and integration patterns among Hispanic and female parent households. • Disparities in access to opportunities.

Metrics and milestones:
• Prepare an area plan with goal of reducing overcrowding, improving health, safety and mobility and access to services.

Timeframe for achievement:

Create plan through the General Plan Update Implementation process.

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Updated 04/18/2025
14 Goal Name AFFH: Preference Home Repairs in LMI Census Tracts Goal
Description
Continue to fund minor home repairs and implement a preference for projects in low opportunity census tracts identified in the analysis.

Contributing factors to be addressed:
• Loss of affordable housing in high opportunity areas. • Lack of accessible affordable housing.

Fair housing issues/impediments:
• Disproportionate housing needs.
• Disparities in access to opportunity.

Metrics and milestones:
• Annual goal of 10 minor home repairs and 14 accessibility modifications through grants for low-income residents. • Allow accessibility improvements on rental properties with owner permission.

Timeframe for achievement:
2023-2031.

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15 Goal Name AFFH: Monitor Affordable Housing
Goal
Description
Monitor affordable housing projects that are at risk of conversion to market rate. Support regional and local efforts to examine displacement of affordable housing and lower income households. Assist with the retention of special needs housing that is at risk of expiring affordability requirements.

Contributing factors to be addressed:
• Historic discrimination and continued mortgage denials. • Concentration in low opportunity census tracts.
• High housing costs that outpace wages.

Fair housing issues/impediments:
• Hispanic households have disproportionate housing needs. • Limited affordable housing for families.

Metrics and milestones:
• Monitor affordable units whose subsidies are set to expire (ex. Bridgepointe Condominiums affordability requirements for 59 units expire in 2027 and Belmont Building 6 units set to expire); • Coordinate with owners to preserve low-income units as affordable at least two years prior to expiration date; • Provide tenant outreach and education;
• Add displacement preference for new affordable housing; and • Provide noticing to tenants and affected public entities regarding expiring affordability.

Timeframe for achievement:
2025- 2027: to address Bridgepointe Condominiums; 2030- 2032: to address Belmont Building

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2025
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16 Goal Name AFFH: Expand Tenant Protections
Goal
Description
Establish tenant protections in local ordinance to extend measure of AB1482 related to relocation, documentation, and right to return policy in eviction cases.

Contributing factors to be addressed:
• Persons with disabilities have disproportionate housing needs; • Persons with disabilities and persons of color are most likely to file fair housing complaints with HUD; and • Hispanic households have disproportionate housing needs.

Fair housing issues/impediments:
• Lack of accessible affordable units;
• Lack of access to economic opportunity;
• Concentration in low income and low opportunity census tracts; • Historic discrimination and continued mortgage denials; and • High housing costs that have outpaced wages.

Metrics and milestones:
• Extend AB1842 provisions that require tenant relocation payments for No Fault evictions for those with tenure less than one year;
• Make recommendations to the City council for establishing tenant protection policies that include the requirement of documentation from landlords who use the substantial remodel exemption to evict tenants and a Right to Return policy for tenants displaced from homes due to demolition or substantial remodels; and • Amend the code to strengthen enforcement penalty structure to aid in protecting tenants from unsafe or substandard units.

Timeframe for achievement:
2023-2026.

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17 Goal Name AFFH: Fair Housing Training for Landlords/Tenants Goal
Description
Partner with Project Sentinel to perform fair housing training for landlords and tenants. Focus on enforcement efforts on race-based discrimination and reasonable accommodations.

Contributing factors to be addressed:
• Lack of accessible affordable units;
• Lack of access to opportunity;
• Concentration in low income and low opportunity census tracts; and • Lack of understanding of reasonable accommodation requirements by landlords and property owners.

Metrics and milestones:
• Provide annual funding to Project Sentinel to provide training every two years in the Spring, targeting 200 landlords each training.
• Outreach programs to landlords
Timeframe for achievement:

Annually as part of CDBG allocation in the spring.

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18 Goal Name AFFH: Create a Fair Housing Webpage
Goal
Description
Create a webpage specific to fair housing including resources for residents who feel they have experienced discrimination, information about filing fair housing complaints with HCD or HUD, and information about protected classes under the Fair Housing Act.

Contributing factors to be addressed:
• Lack of accessible affordable units;
• Lack of access to economic opportunity;
• Concentration of low income and low opportunity tracts; and • Lack of understanding of reasonable accommodation requirements by landlords and property owners.

Fair Housing Issues/ Impediments
• Persons with disabilities have disproportionate housing needs. • Persons with disabilities and persons of color are most likely to file fair housing complaints with HUD.

Metrics and Milestones:
• Provide information on City website about housing discrimination, laws, and protections. • Update webpage every two years, along with other transparency updates.

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19 Goal Name AFFH: Ensure Properties Explain Accommodations Goal
Description
Ensure that all multifamily residential developments contain signage to explain the right to request reasonable accommodations for persons with disabilities. Make this information available and clearly transparent on the city’s website and fund landlord training and outreach on reasonable accommodations.

Fair Housing Issues/ Impediments:
• Persons with disabilities have disproportionate housing needs. • Persons with disabilities and persons of color are most likely to file fair housing complaints with HUD.

Metrics and Milestones:
• Create ongoing condition of approval to ensure both below market rate and all affordable developments contain this information.
• Explore options for recording against the property and/ or including in the affordable housing agreement.

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20 Goal Name AFFH Goal: Prevent Displacement
Goal
Description
Ensure that future improvements in disadvantaged communities will not produce a net loss of affordable housing or the displacement of residents and seek to increase the amount of affordable housing in disadvantaged communities.

Fair Housing Issues/ Impediments:
• Persons with disabilities and persons of color have disproportionate housing needs Metrics and Milestones:
• In collaboration with nonprofit and for-profit housing developers, study the feasibility of collaborating with the Northern California Land Trust, or establishing a new community land trust that will support long-term community ownership and housing affordability in disadvantaged communities. Implement findings as part of the General Plan Update
Timeline:

To be completed as part of the larger General Plan Update, with the expected date of completion by 2027

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AP-35 Projects - 91.420, 91.220(d)
Introduction

Activities planned for 2025 are similar to those from recent years. The City will continue to use CDBG administration funds for provision of fair housing activities, public services for grants to non-profit public service agencies, and the remainder of CDBG funds for minor home repair programs, public facilities improvements, microbusiness assistance, and street and sidewalks improvements.

# Project Name
1 Community Funding Program
2 Minor Home Repair
3 CDBG Admin
4 Public Facilities
5 Microbusiness Assistance
6 Street and Sidewalks Improvements
Table 7 – Project Information

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs

The City of San Mateo prioritized projects addressing low- and moderate-income housing and community development needs within targeted areas. The CDBG funding will fund an estimated total of five projects totaling $753,586 and as identified in the Anticipated Resources table. The projects include eligible activities such as housing activities, public services, economic development, minor home repair, and administration, planning and fair housing. The program or project activity has to be eligible under HUD rules and meet the goals of the Consolidated Plan.

An obstacle the City faces in addressing most community needs is available funding. The high cost of housing, limited resources, and an increase demand for social and supportive services are undeserved needs that need to be addressed. The City continues to partner with local nonprofits to coordinate resources to service those most in need.

The City, in partnership with non-profit organizations and county agencies, will undertake numerous programs and activities to meet the five identified priorities of the Consolidated Plan and Annual Action Plan during program year 2025 (2025-2026). The timeline for the completion of most of these projects and programs is June 30, 2026.

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AP-38 Project Summary
Project Summary Information

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1 Project Name Community Funding Program
Target Area Citywide
Goals Supported Community Funding
Needs Addressed Public Services
Funding CDBG: $113,000
Description Provide $113,000 in funds to non-profit agencies to provide public services for the core service priorities including basic human needs, senior services, youth services, and providing affordable housing.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
Project will only serve low- and moderate-income individuals and families, as well as those from presumed benefit groups such as abused children, victims of domestic violence, elderly, and homeless. Based on reports from prior years, the project will serve approximately 2,226 San Mateo residents.

Location Description Project will serve the community members citywide.

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Planned Activities Project provides funds to non-profit agency sub-recipients to carry out public service programs. Agencies interface with a variety of departments within the City including police, housing, and code enforcement on a regular basis to further their efforts in the community. The City anticipates funding eight sub-recipients evenly with available funding. In addition, the City is funding an economic development program outside of the public services cap. The awards for this year are as follows:

CALL Primrose: drop-in food pantry program providing free grocery services. Goal is to serve 1,400 individuals.

CORA: providing survivors of domestic violence and their children with legal services. Goal is to serve 100 individuals.

Friends for Youth: provide mentoring relationships and support services to underserved, vulnerable youth. Goal is to serve 260 individuals.

Legal Aid Society of San Mateo County: legal services to households in danger of eviction and/or living in substandard conditions. Goal is to serve 113 clients.

Life Moves: provide shelter and supportive services to assist homeless individuals to return to self- sufficiency at the First Step for Families facility which includes 117 beds. Goal is to serve 40 clients

Rape Trauma Services: provides mental health services to address the multiple healing needs of child survivors of sexual violence. Goal is to serve 85 clients.

Samaritan House: provides a broad spectrum of assistance, including case management, emergency assistance - food, clothing, shelter, healthcare - as well as financial assistance and empowerment services. Goal is to serve 228 individuals.
2 Project Name Minor Home Repair Program
Target Area Citywide
Goals Supported Maintain & Preserve Existing Housing
Needs Addressed Affordable Housing
Funding CDBG: $107,000.00

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Description Provides funding to non-profit agencies to provide minor repairs, accessibility modifications, and energy efficiency measures to income eligible homeowners.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
Project will assist 10 households with repairs and energy improvements.

Location Description Project will only apply to homes located in the City of San Mateo.

Planned Activities Project will provide grants to sub-recipients for programs to complete minor rehabilitation, energy improvements, and accessibility improvements to low- and moderate-income homeowners. Two grants will be provided as follows:
• Rebuilding Together Peninsula: Safe at Home program provides minor home repairs including health and safety measures, emergency electrical and plumbing, etc. Goal is to serve 4 households.
• Rebuilding Together Peninsula: National Rebuilding Day provides larger scale rehabilitation of homes in conjunction with volunteers and many other funding sources. Goal is to serve 6 households.

3 Project Name CDBG Admin
Target Area Citywide

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Goals Supported Maintain & Preserve Existing Housing
Community Funding
Street and Sidewalk Improvements
Public Facilities
Affordable Housing
First Time Homebuyer
Microbusiness Assistance
AFFH: Adjust City's BMR Program
AFFH: Down Payment Assistance Program
AFFH: Forgivable Loans for ADUs
AFFH: Affirmatively Market City Housing
AFFH: Prioritize Funding for Affordable Housing
AFFH: Incentivize Developers
AFFH: Conduct an Area Plan for Neighborhoods
AFFH: Preference Home Repairs in LMI Census Tracts
AFFH: Monitor Affordable Housing
AFFH: Expand Tenant Protections
AFFH: Fair Housing Training for Landlords/Tenants
AFFH: Create a Fair Housing Webpage
AFFH: Ensure Properties Explain Accommodations
AFFH Goal: Prevent Displacement
Needs Addressed Affordable Housing
Public Services
Community Development
Public Facilities Improvements
Economic Development
Lack of Affordable Housing in Opportunity Areas
Historic Discrimination and Mortgage Denials
Low-income Rentals in Low Opportunity Tracts
Disparities in Access to Opportunity
Fair Housing Issues
Funding CDBG: $85,000
Description Provide funds for staff and overhead to administer the CDBG grant. The City will also provide a $25,000 grant to an agency for provision of Fair Housing services to come from admin.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
The fair housing grant will serve approximately 12 households or 40 people.

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Location Description Project will take place in City of San Mateo.

Planned Activities Administrative costs for management of the CDBG program. In addition, the City will provide funds for the provision of fair housing activities. 4 Project Name Public Facilities Improvements
Target Area Citywide
Goals Supported Public Facilities
Needs Addressed Public Facilities Improvements
Funding CDBG: $200,000.00
Description Provide funds for the rehabilitation and/or improvements of community facilities serving lower income individuals and households.

Target Date 6/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
6,251 individuals will be served through public facilities improvements.

Location Description 111-115 E. 5th Avenue, San Mateo 94401 and at a confidential address.

Planned Activities Two grants will be provided as follows:
• HIP Housing, Inc.: A one-time grant of $150,000 will be provided to replace an elevator at their newly acquired administrative and programs office in San Mateo.
• CORA: A one-time grant of $50,000 will be provided to make repairs to their community office. The funds will cover repairs to the breezeway leading from the parking lot to the main office and repair and provide maintenance to the HVAC units.
5 Project Name Microbusiness Assistance
Target Area CityWide
Goals Supported Microbusiness Assistance
Needs Addressed Support Economic Development Opportunities Funding CDBG: $80,000.00
Description Two microbusiness assistance grants of $40,000 will be provided to Renaissance Entrepreneurship Center and Upwards. The funds under this activity will not be counted under the public service cap as they are a microbusiness assistance program for economic development.

Target Date 06/30/2026
Estimate the number
and type of families
that will benefit from
the proposed activities
The microbusiness assistance program will serve 61 businesses.

Location Description Project will serve low-income business owners in the city of San Mateo.

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Planned Activities Renaissance Entrepreneurship Center: will deliver customized small business training, one-on-one consulting, and access to capital, resources, markets, and networks to assist lower-income and under- resourced residents who are starting and growing sustainable small businesses. All services will be delivered in English and Spanish. Goal is to serve 50 businesses.

Upwards: equip LMI microenterprise in-home childcare providers with personalized coaching and digital tools to optimize operations and revenue, enabling them to efficiently manage and grow their business, create local teaching assistant jobs, and expand access to quality affordable care for working families in the community. Goal is to serve 11 childcare providers.
6 Project Name Street and Sidewalk Improvements
Target Area CDBG Priority Neighborhood
Goals Supported Street and Sidewalk Improvements
Needs Addressed Community Development
Funding CDBG: $447,850
Description Funding to make pedestrian-type improvements on damaged streets and sidewalks, and to include safety enhancements (crosswalks, curb ramps, etc.) where feasible.

San Mateo City CouncilMay 19, 2025

San Mateo City Council
May 19, 2025