Agenda packet — San Rafael City Council, April 20, 2026

AGENDA

SAN RAFAEL CITY COUNCIL - MONDAY, APRIL 20, 2026
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Webinar: https://tinyurl.com/city-council-2
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• You are welcome to come to the meeting and provide public comment in person. Each speaker will have 2-minutes to provide public comment per agenda item. • Submit your comments by email to [email protected] by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN TIME FOR PUBLIC EXPRESSION – 10 MINUTES
Members of the public may speak to the City Council on items that are not on the agenda and are within the Council’s jurisdiction. Open Time for Public Expression happens twice during the meeting. At the beginning of the meeting, public comment is limited to a total of 10 minutes, with each speaker allowed up to 2 minutes. Open Time for Public Expression will be held again at the end of the meeting with no total time limit. Please note that, under state law, the City Council cannot discuss or take action on items that are not on the agenda.

CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

1. City Manager and Councilmember Reports:

CONSENT CALENDAR:

The opportunity for public comment on consent calendar items will occur prior to the City Council’s vote on the Consent Calendar. The City Council may approve the entire consent calendar with one action. In the alternative, items on the Consent Calendar may be removed by any City Council or staff member, for separate discussion and vote.

2. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special Closed Session and Regular City Council Meetings of April 6, 2026 (CC)
Recommended Action - Approve Minutes as submitted
2 b. Kaiser Hospital Development Project Environmental Consulting Services Resolution Authorizing the City Manager to (1) Amend a Professional Services Agreement with Environmental Science Associates (ESA) in an Amount Not to Exceed $440,327 for a Total Contract Amount of $457,648 For Environmental Consulting Services for the Kaiser Hospital Development Project (PLAN 25-196) Located at Assessor’s Parcel Number (APN) 175-060-57 and (2) Appropriate Supplemental Fiscal Year (FY) 2025-2026 Budget Appropriations Totaling $457,648 Within the Development Services Fund (Fund 207) (CED) Recommended Action – Adopt Resolution
c. Electric Vehicle Charging Electrical Contract
Resolution Waiving Formal Bid Requirements and Authorizing the City Manager to Negotiate and Enter into a Contract with Mike Brown Electric Company for Electric Vehicle Charging Infrastructure Installation Work in an Amount Not to Exceed $288,000 (PW) Recommended Action – Adopt Resolution
d. Large Trash Capture Device Projects
Resolution Authorizing the City Manager to Execute a First Amendment to the Professional Services Agreement with Schaaf & Wheeler Consulting Civil Engineers (S&W) for Additional Design Services Associated with the Large Trash Capture Device Projects, in the Amount Not-To-Exceed $438,671, Increasing the Total Not-To-Exceed Amount Under the Agreement to $915,236 (PW)
Recommended Action – Adopt Resolution
e. National Library Week Proclamation
Proclamation in Recognition of National Library Week (LR) Recommended Action – Receive and file
f. Agreements for On-Call Planning, Environmental, Plan Check, and Building Inspection Consulting Services
Authorize the City Manager to Enter into the Following Professional Services Agreements (CED):
i. 4 Leaf Inc., Coastland, Interwest, TRB and Associates, and Willdan for On-Call Plan Check and Building Inspection Services in an Amount Not to Exceed $500,000 Per Firm; And,
ii. M Group in an Amount Not to Exceed $500,000 and LAK Associates, LLC in an Amount Not to Exceed $300,000 to Provide On-Call Planning and Environmental Consulting Services
Recommended Action – Adopt Resolution

PUBLIC HEARINGS

3. Public Hearings:
a. Marin Sanitary Service Franchise Amendments
i. Resolution Adopting a Fee Study for the City’s Cost of Solid Waste Services Fee and the City’s Franchise Fee for the Use of City Property in the Provision of Solid Waste Related Services; (2) Repealing the City’s Imposition of the Refuse Vehicle Impact Fee; And (3) Decreasing the City’s Cost of Service Fee and Franchise Fee Imposed on Marin Sanitary Services: CEQA Determination: Exempt Pursuant to CEQA Guideline 15378(b)(4) Recommended Action – Adopt Resolution
3 ii. Resolution Authorizing the City Manager to Execute an Amendment to the Franchise Agreement with Marin Sanitary Service to Require Street Sweeping Services, and to Clarify Authorization to Encroach Upon Public Right-Of-Way, and for the City to Impose a Fee for Right of Encroachment (CM)
Recommended Action – Adopt Resolution
b. Solid Waste Collection Code Amendments Ordinance
Consideration of an Ordinance Amending Chapter 9.19, Entitled “Solid Waste Collection and Disposal and Edible Food Recovery,” Chapter 11.04, Entitled “Encroachments in the Public Right-Of-Way,” and Chapter 12.260, Entitled “International Property Maintenance Code Amendments” of the San Rafael Municipal Code; CEQA Determination: Exempt Pursuant to CEQA Guideline 15061(B)(3) (CM) Recommended Action – Introduce the Ordinance, waive further reading, and refer to it by title only

OTHER AGENDA ITEMS

4. Other Agenda Items:
a. Approval of Measure AA Expenditure Plan
Resolution Approving the Transportation Authority of Marin (TAM) Measure AA Amended Expenditure Plan Adopted by TAM on March 26, 2026
Recommended Action – Adopt Resolution
b. 350 Merrydale Interim Shelter Contract for Operational Services Resolution Authorizing the City Manager to Negotiate and Execute a Second Amendment with Foege Schuman Global Disaster Solutions LLC (FS Global) in an Amount Not to Exceed $2,487,649 for a Total Contract Amount Not to Exceed $3,837,649, to Support the Implementation and Initial Operations of the 350 Merrydale Interim Shelter, and to Extend the Term of the Agreement Through June 30, 2028; and Authorizing a Supplemental FY2025-26 Budget Appropriation of $1,000,000 Within the City’s Grant Fund (283) to Reflect the Portion of the County Grant Provided for this Purpose (CM) Recommended Action – Adopt Resolution

OPEN TIME FOR PUBLIC EXPRESSION CONTINUED
Members of the public may speak to the City Council on items that are not on the agenda and are within the Council’s jurisdiction. Please note that, under state law, the City Council generally cannot discuss or take action on items that are not on the agenda, unless there is an emergency or an urgent issue that came up after the agenda was posted. Each speaker may speak for up to two minutes. Comments should be respectful to the community.

ADJOURNMENT:

Any records relating to an agenda item, received by a majority or more of the Council less than 72 hours before the meeting, shall be available for inspection online and at City Hall, 1400 Fifth Avenue, and placed with other agendarelated materials on the table in front of the Council Chamber prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing [email protected] or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/.

Minutes subject to approval at the April 20, 2026 meeting

MINUTES

SAN RAFAEL CITY COUNCIL SPECIAL CLOSED SESSION
MONDAY, APRIL 6, 2026 AT 5:30 P.M.

Third Floor Conference Room
1400 Fifth Avenue, San Rafael, CA 94901

Present: Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: Councilmember Bushey
Council Member Hill
Also Present: City Attorney Robert Epstein
Mayor Kate called the meeting to order at 5:31 p.m.

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM
The Mayor will announce Closed Session items and invite public comment on agenda items. Each speaker will have two minutes to provide comments before the City Council convenes in Closed Session.

1. Mayor Kate announced Closed Session items.

Mayor Kate invited public comment; however, there were none.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION, pursuant to Government Code Section 54956.9(d)(e)(2): One potential employment claim. b. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION, pursuant to Government Code Section 54956.9(d)(1)
Name of case: Worker’s Compensation Appeal Board, Claim No. 2193400015 ADJOURNMENT:

Mayor Kate adjourned the meeting at 5:37 p.m.
__________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2026
_____________________________________
KATE COLIN, Mayor

Minutes subject to approval at the April 20, 2026 meeting

MINUTES

SAN RAFAEL CITY COUNCIL - MONDAY, APRIL 6, 2026
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Webinar: https://tinyurl.com/city-council-1
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 863-4489-1398#
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

If you experience technical difficulties during the meeting, please contact [email protected].

Present: Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: Councilmember Bushey
Councilmember Hill
Also Present: Acting City Manager Paul Navazio
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:05 p.m. and invited City Clerk Lindsay Lara to call the roll.

City Attorney Robert Epstein announced that no reportable action was taken in Closed Session.

Mayor Kate provided opening remarks which included gratitude to City Staff, reporting potholes, subscribing to Snapshot, and a land acknowledgment.

City Clerk Lindsay Lara informed the community that the in-person meeting would also be recorded and streamed live to YouTube and through Zoom. She noted the two-minute timer for public comment and closed captioning on Zoom.

OPEN TIME FOR PUBLIC EXPRESSION – 10 MINUTES
• Wayne Rayburn addressed public comment regarding the City of Milpitas’s free wireless doorbell camera program.

CITY MANAGER AND COUNCILMEMBER REPORTS:
2 (including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

1. City Manager and Councilmember Reports:

Acting City Manager Paul Navazio provided the following announcements and updates:
• Lincoln Avenue Crosswalk Improvement Project Update
• Finance Subcommittee meeting to be held Tuesday, April 14, City Hall, 10 a.m. • Police Advisory & Accountability Committee (PAAC) meeting to be held Wednesday, April 15, City Hall, 6 p.m.
• Red Cross Blood Drive to be held Wednesday, April 15, B Street Community Center, 9 a.m. - 2 p.m.
• Downtown Cleanup Day to be held Wednesday, April 22, City Plaza, 10 a.m. - noon • Prescribed Burns Update
City Councilmember Reports:
• Vice Mayor Kertz reported on a Bahia Vista School reading, Marin Wildfire Prevention Authority (MWPA) Board and Executive meetings, a Cal Cities Policy Meeting on community services, a San Rafael Federation of Neighborhoods meeting, and a Kaiser Executive Team meeting.
• Councilmember Llorens Gulati reported on a San Pedro School reading, a Cal Cities Environmental Quality Policy Committee meeting, a Chamber of Commerce East San Rafael Working Group meeting, a Marin Transit meeting, and a Marin Clean Energy Executive Committee meeting.
• Mayor Kate reported on a San Rafael Sanitation District meeting, an Economic Development and Housing Subcommittee meeting, a Transportation Authority of Marin (TAM) Board meeting, Sonoma-Marin Area Rail Transit (SMART), Police Captain McElderry’s retirement, and neighborhood association meetings.

Mayor Kate invited public comment; however, there was none.

CONSENT CALENDAR:

Mayor Kate invited public comment.

Speakers: Name Withheld, Rika Gopinath, Debbie Raphael
Councilmember Llorens Gutati moved and Vice Mayor Kertz seconded to approve the Consent Calendar.

AYES: Councilmembers: Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey & Hill

2. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special Closed Session and Regular City Council Meetings of March 16, 2026 (CC)
Approved Minutes as submitted
b. Establish Electronic and Paperless Filing for FPPC Campaign Disclosure Statements Final Adoption of Ordinance 2061: An Ordinance Adding Chapter 2.09 to Title 2 3 (Administration) of the San Rafael Municipal Code to Require Electronic and Paperless Filing of Fair Political Practices Commission (FPPC) Campaign Disclosure Statements (CC) Final Adoption of Ordinance 2061
c. Fire Commission Reappointment
Reappoint Stan Burford to Fill One Four-Year Term to the End of April 2030 on the Fire Commission (CC)
Reappointed Stan Burford
d. Authority for Claims/Litigation Settlement and Legal Expenditures Resolution to Increase the Settlement Authority of the City Manager for Claims and Litigation from $20,000 to $50,000, to Authorize the City’s Finance Director or Designee to Pay Allowed, Settled or Compromised Claims, and to Authorize the City Manager to Exclude Legal Costs Paid from the City’s Liability Fund from the Contract Not to Exceed Amount in Contracts for Legal Services (CA)
Adopted Resolution 15528
e. Proclamations
Proclamations Supporting Week of the Young Child and Southwest Asian and North African (SWANA) Heritage Month (LR/CM)
Received and filed
f. Integrated Pest Management Policy Update
Resolution Adopting an Updated Integrated Pest Management Policy; CEQA Determination: Exempt Pursuant to CEQA Guidelines Sections 15060(b)(3), 15301, 15304 (PW)
Adopted Resolution 15529
g. Lincoln Avenue Bridge Preventative Maintenance Project Funding Agreement Resolution Authorizing the City Manger to Execute a Program Supplement Agreement with the California Department of Transportation (Caltrans) for $173,600 in Federal Highway Bridge Program (HBP) Funds for the Lincoln Avenue Bridge Preventative Maintenance Project (PW)
Adopted Resolution 15530
h. Pickleweed Childcare Replacement Portable Buildings Procurement Resolution Authorizing the City Manager to Execute an Agreement with Class Leasing, LLC for the Procurement and Installation of Portable Buildings for the Pickleweed Childcare Replacement Portables Project, City Project No. C661145010, in the Amount Not to Exceed $849,606; CEQA Determination: Exempt Pursuant to CEQA Guideline 15302 (PW) Adopted Resolution 15531

OTHER AGENDA ITEMS

3. Other Agenda Items:
a. Economic Development Strategic Plan Update
Economic Development Strategic Plan Update (CED)
Community and Economic Development Director Micah Hinkle introduced Economic Development Program Manager Stacey Laumann who presented the Staff Report. 4 Staff responded to questions from the City Council.

Mayor Kate invited public comment; however, there were none.

Councilmembers provided comments.

Vice Mayor Kertz moved and Councilmember Llorens Gulati seconded to accept the Economic Development Strategic Plan Update
AYES: Councilmembers: Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey & Hill
Accepted the Economic Development Strategic Plan Update b. New Main Library and Community Center Project Delivery New Main Library and Community Center Project Update and Evaluation of Alternative Project Delivery Methods
Assistant City Manager John Stefanski and Gary Chubb, Griffin Structures presented the Staff Report.

Staff responded to questions from the City Council.

Mayor Kate invited public comment.

Speakers: Ken Dickinson, Dan Mcculloch, Carpenters Union, Chris Palomo, Carpenters Union
Staff responded to questions from public comment.

Councilmembers provided comments.

Councilmember Kertz moved and Councilmember Llorens Gulati seconded to receive Staff’s analysis of alternative project delivery methods; Authorize Staff to proceed with the Progressive Design-Build (PDB) project delivery method; and, direct Staff to initiate Project Labor Agreement negotiations with the North Bay Building and Construction Trades Council and Northern California Carpenter’s Regional Council.

AYES: Councilmembers: Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey & Hill
Receive Staff’s analysis of alternative project delivery methods; Authorized Staff to proceed with the Progressive Design-Build (PDB) project delivery method; and, directed Staff to initiate Project Labor Agreement negotiations with the North Bay Building and Construction Trades Council and Northern California Carpenter’s Regional Council
c. Appointment of Interim City Manager
5 Resolution Appointing Paul Navazio as Interim City Manager and Authorizing the Mayor to Execute an Employment Agreement with Paul Navazio (HR) City Attorney Robert Epstein presented the Staff Report.

Mayor Kate invited public comment.

Speakers: Ken Dickinson, Marianne Nannestaad, Wayne Rayburn Staff responded to questions from public comment.

Councilmembers provided comments.

Vice Mayor Kertz moved and Councilmember Llorens Gulati seconded to adopt the Resolution appointing Paul Navazio as Interim City Manager and authorizing the Mayor to execute an Employment Agreement with Paul Navazio.

AYES: Councilmembers: Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey & Hill
Adopted Resolution 15532

OPEN TIME FOR PUBLIC EXPRESSION CONTINUED
None.

ADJOURNMENT:

Mayor Kate adjourned the meeting at 8:26 p.m.
__________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2026
_____________________________________
KATE COLIN, Mayor
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.b
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Kristina Estudillo, Principal Planner City Manager Approval: __________ TOPIC: KAISER HOSPITAL DEVELOPMENT PROJECT ENVIRONMENTAL CONSULTING

SERVICES
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO (1) AMEND A

PROFESSIONAL SERVICES AGREEMENT WITH ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) IN AN AMOUNT NOT TO EXCEED $440,327 FOR A TOTAL CONTRACT AMOUNT OF $457,648 FOR ENVIRONMENTAL CONSULTING SERVICES FOR THE KAISER HOSPITAL DEVELOPMENT PROJECT (PLAN 25-196) LOCATED AT ASSESSOR’S PARCEL NUMBER (APN) 175-060-57 AND (2) APPROPRIATE SUPPLEMENTAL FISCAL YEAR (FY) 2025-2026 BUDGET APPROPRIATIONS TOTALING $457,648 WITHIN THE DEVELOPMENT SERVICES FUND (FUND 207).

RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to (1) amend the professional services agreement with Environmental Science Associates (ESA) for environmental consulting services in an amount not to exceed $440,327, for a total contract amount of $457,648 and (2) appropriate supplemental fiscal year (FY) 2025-2026 Budget Appropriations totaling $457,648 within the Development Services Fund (Fund 207).

BACKGROUND:

In December 2025, the City received an application for a development project on a 23.79-acre site located at 99 Montecillo (Kaiser Hospital Development Project). The applicant for the project is Kaiser Permanente who have owned and managed the existing hospital at the current location since the 1960s.

The application is currently undergoing completeness review, but staff have initiated the environmental review process to meet the requirements of the Hospital Facilities Seismic Safety Act (1994 California Senate Bill 1953), which requires acute care hospitals and urgent care facilities to be replaced or retrofitted by 2030.

The proposed hospital development includes replacement of the existing hospital building at 99 Montecillo Road in North San Rafael with a 6 story, 116 foot tall, 92 bed hospital. Construction of the new hospital building will occur in three phases, involving the following activities and components:
• Phase One: Demolition of the general services building.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
• Phase Two: Construction of the new hospital building and pedestrian connection corridor, reconfiguration of parking and access in Lot B, addition of emergency generators, relocation of underground utilities, and landscaping.
• Phase Three: (A) Demolition of the existing hospital building and (B) construction of the rotunda, cafeteria, reconfigured drop-off area, and service yard.

The project entitlements include a Planned Development (“PD”) amendment and approval of a development plan, an Exception for height, and a Major Environmental and Design Review Permit.

As part of the application review process, the staff have analyzed the project for compliance with California’s Environmental Quality Act (CEQA). Based on a preliminary review of the project, the staff have determined that a full-scope Environmental Impact Report (EIR) covering all the topical issues associated with the project must be prepared to comply with CEQA.

ANALYSIS:

As the City lacks the capacity and subject matter expertise to conduct the EIR, on February 10, 2026, staff published a Request for Proposals (RFP) to identify a firm to undertake the CEQA review for this project. In response, the city received proposals from four interested firms. Staff then held interviews in March 2026 to determine which firm is the most qualified to conduct the CEQA review for a project of this nature. Staff identified ESA as the most qualified firm for this project based on their CEQA expertise, track record, experience with hospital development projects, and familiarity with Office of Statewide Health Planning and Development (OSHPD) legislation.

In order to begin CEQA review, the City executed an initial contract with ESA totaling $17,321 which funded project kick off and initiation of the Notice of Preparation. Staff is requesting authorization to amend the contract to include the remaining portion of scope of work and increased contract amount of $440,327 for a total not to exceed amount of $457,648 and appropriate supplemental Fiscal Year 2025- 2026 Budget funds in the amount of $457,648.

Adopting the proposed resolution will authorize the City Manager to amend the professional services agreement with ESA to complete the required EIR for the Kaiser Hospital Development Project.

FISCAL IMPACT:

Approval of the staff recommendation would authorize amendment of the professional services agreement with ESA in an amount not to exceed $440,327, for a total amount not to exceed $457,648.

The project applicant is responsible for any costs incurred by the City in processing their application, including the cost of an environmental consultant conducting CEQA review for their development application. Thus, the attached resolution includes a supplemental FY 2025-2026 budget appropriation within the City’s Development Services Fund (207) in the amount of $457,648 to reflect funding provided by the project applicant to fund the proposed contract. In addition, the project applicant will be required to pay an additional administrative fee, as prescribed in the Master Fee Schedule, to cover staff time overseeing the accounting of this project.

OPTIONS:

The City Council has the following options to consider in this matter:

1. Authorize the City Manager to enter into the amended agreement.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3

2. Authorize the City Manager to enter into the amended agreement with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. Amendment to Professional Services Agreement with ESA

Page 1 of 2 ends

RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO (1) AMEND A PROFESSIONAL

SERVICES AGREEMENT WITH ENVIRONMENTAL SCIENCE ASSOCIATES (ESA) IN AN AMOUNT NOT TO EXCEED $440,327 FOR A TOTAL CONTRACT AMOUNT OF $457,648

FOR ENVIRONMENTAL CONSULTING SERVICES FOR THE KAISER HOSPITAL DEVELOPMENT PROJECT (PLAN 25-196) LOCATED AT ASSESSOR’S PARCEL NUMBER (APN) 175-060-57 AND (2) APPROPRIATE SUPPLEMENTAL FISCAL YEAR (FY) 2025-2026 BUDGET APPROPRIATIONS TOTALING $457,648 FROM THE DEVELOPMENT SERVICES FUND (FUND 207)
WHEREAS, the City of San Rafael’s Community and Economic Development (CED) Department is processing a Major Environmental Design Review application for the proposed Kaiser Hospital Development Project (PLAN25-196), located at Marin County Assessor’s Parcel Number (APN) 175-060- 57; and
WHEREAS, the project requires environmental review under the California Environmental Quality Act (CEQA); and
WHEREAS, staff published a Request for Proposals (RFP) for preparation of CEQA documentation for the proposed project on February 10, 2026, and subsequently received four proposals from interested firms; and
WHEREAS, staff reviewed the proposals and held a series of interviews in March 2026 to ascertain which was the most qualified firm to conduct the environmental review for a project of this nature; and WHEREAS, staff identified Environmental Science Associates (ESA) as the most qualified firm because of their experience with complex development projects and their proposed schedule and approach; and
WHEREAS, the project applicant is responsible for reimbursing the City for the costs incurred by the City in processing its development application, including preparation of CEQA documents; and WHEREAS, the cost of preparing the CEQA document for the Kaiser Hospital Development Project will be paid through a reimbursement agreement between the CED department and the project applicant.

WHEREAS, the City entered into an initial contract with ESA of $17,321 in order to start the CEQA process under the contract authority of the Community and Economic Development Director and is requesting authorization of the remaining contract amount from City Council at this time as well as the associated appropriate supplemental budget appropriations of $457,648 for the full cost of the CEQA review;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael finds the foregoing recitals are true and correct, and authorizes the City Manager or their designee to execute an amendment to the professional services agreement with Environmental Science Associates (ESA) for an amount not to exceed $440,327, for a total contract amount of $457,648 ; and FURTHER RESOLVED, that the City Council authorizes supplemental budget appropriations of $457,648 within the Development Services Fund (207) to support these agreements, via increased planning fee revenues received from the Kaiser Hospital Development Project applicant.

Page 2 of 2 ends

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a special meeting of the City Council of said City held on Monday, the 20th day of April 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

LINDSAY LARA, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Jonathan Schellin
Deputy Director, Public Works
Cory Bytof
Sustainability Program Manager
City Manager Approval: ______
TOPIC: ELECTRIC VEHICLE CHARGING ELECTRICAL CONTRACT
SUBJECT: RESOLUTION WAIVING FORMAL BID REQUIREMENTS AND AUTHORIZING THE

CITY MANAGER TO NEGOTIATE AND ENTER INTO A CONTRACT WITH MIKE

BROWN ELECTRIC COMPANY FOR ELECTRIC VEHICLE CHARGING

INFRASTRUCTURE INSTALLATION WORK IN AN AMOUNT NOT TO EXCEED $288,000.

RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to waive the City’s formal bid requirements and negotiate and enter into a contract with Mike Brown Electric Company for electric vehicle charging infrastructure installation work in an amount not to exceed $288,000.

BACKGROUND:

Vehicle emissions are the largest source of greenhouse gas emissions in the City’s municipal greenhouse gas inventory. San Rafael’s Climate Change Action Plan (CCAP) includes Measure LCT-M1, directing the City to purchase or lease zero-emission vehicles for the City fleet whenever possible. It targets a 50% reduction in fuel use by 2030. In addition, the City Council approved an Electric Vehicle Acceleration Strategy Workplan in 2023 that contains priority action items by 2025 to 1) develop a fleet replacement plan that includes activities to convert the City’s fleet to 100% zero-emissions vehicles, inclusive of charging infrastructure, and 2) to identify local fire and police conversion of mission-critical and nonemergency fleet vehicles. Finally, the California Air Resources Board adopted the Advanced Clean Fleets Regulation for local government vehicle fleets, which the City must comply with (California Code of Regulations Title 13, Division 3, Chapter 1, Article 3.2).

Staff have been working on transitioning the City fleet for the past two years. This includes securing Federal Energy Efficiency Conservation Block Grant funds, no-cost technical assistance from MCE and the Metropolitan Transportation Commission, and contracting with a third-party technical consulting team to plan the transition. Last year, the City was accepted into the Pacific Gas and Electric Company’s (PG&E) EV Fleet Electrification program, which commits PG&E to installing additional infrastructure to serve electric-vehicle loads at City facilities. The City Council approved a contract with PG&E to participate in the program on June 2, 2025, and determined this work to be categorically exempt under CEQA Guideline 15301 (minor alteration of existing facilities), 15303(e) (appurtenant structure to Agenda Item No: 2.c
Meeting Date: April 20, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
garages and carports), and/or 15311 (placement of minor structures appurtenant to existing uses).

The PG&E program includes PG&E fully funding the utility side of the meter upgrades, financial assistance for the City side of the meter work, and financial incentives for City vehicle purchases. PG&E also provides technical assistance to identify and secure additional incentives for the chargers and vehicles, and has accelerated the timeline for PG&E’s work to build out the electrical supply needed to facilitate high-speed charging at the Corps Yard for City fleet vehicles. This will help the City comply with the Advanced Clean Fleet Regulation and avoid high costs for transformer and electrical capacity expansion. Finally, this upgraded service also includes a separate meter with a lower cost per kWh, which will provide the City with substantial annual savings by replacing fuel costs with lower electricity costs.

On March 16, 2026, the City Council adopted a resolution authorizing the City Manager to procure electric vehicle charging equipment through a Sourcewell Cooperative Purchasing Agreement for the Public Works facility at 111 Morphew Street and authorized supplemental budget appropriations of $450,000 to fund the work. This contract is the next phase of the work.

Final designs are complete for the project, and staff are working to initiate construction with a completion target of mid-June this year. Completing the installation by June 30, 2026, will allow the City to apply for the Federal Investment Tax Credit program, which would provide the City with $285,900 to $381,200 in project reimbursement. In addition, it will allow the City to submit a request to the Federal Energy Efficiency Conservation Block Grant program for payment of $123,900, which was awarded to the City in 2024.

ANALYSIS:

On February 20, 2026, staff initiated an informal request for proposals (RFP) for electrical services to install the electrical switchgear and corresponding infrastructure necessary to complete the charging project. The bid amount was tied to the budget for the project and was estimated to cost $150,000, within the amount that could be authorized under the City’s Public Works Award Authority. Staff circulated the bid to six electrical contractors known to be capable of doing this work, with recent experience working with the City, and received only two bids. Neither bid met the requirements of the project, and therefore, both bids were rejected. Staff identified improvements to the scope of work and directions for another round of proposals, and reissued an RFP on March 20, 2026, to an expanded group of eight qualified contractors.

This round garnered two new submissions. The lowest bidder, which was under the $220,000 limit, did not – and would not – include the bonding requirements that the City requires to conduct a project of this magnitude. Left with one bid that meets the project requirements but exceeds the $220,000 staff award limit and the informal bidding requirements, the City Council will need to authorize the award of this contract and waive the formal bidding process typically required for a project of this cost. Doing this is necessary to meet the project timeline and the Federal Investment Tax Credit incentive deadline. Per San Rafael Municipal Code Section 11.50.090, the City Council may waive bidding requirements if any one of the listed five circumstances exists. In this case, Council would be waiving formal bidding for the following reasons:

1. There is no competitive advantage to conducting a formal bid process since staff conducted two exhaustive informal bids, which fully assessed the known and qualified electrical contractor market for this work, and

2. Conducting a formal bid process at this stage of the project would cause delays that would jeopardize the project's completion and the loss of significant cost recovery through the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Investment Tax Credit.

At this time, staff is seeking City Council authorization to contract with Mike Brown Electric Company, which submitted a proposal to conduct the work at a cost of $263,235, plus an approximate 10% contingency to account for unknown conditions that can’t be anticipated during the bid process. Thus, staff is seeking authorization for an amount not to exceed $288,000. Though this amount is higher than the staff or the City’s consultant, NV5, had anticipated, it can be absorbed by the project’s contingency budget and still falls within the appropriation amounts authorized by Council for the project.

FISCAL IMPACT:

Current appropriation is sufficient to cover the full not-to-exceed amount of $288,000 within the Capital Improvement Fund (401), and no new appropriations are needed at this time.

OPTIONS:

The City Council has the following options to consider relating to this item:

1. Adopt the resolution as presented.

2. Adopt the resolution with amendments.

3. Do not adopt the resolution.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. Construction Agreement with Mike Brown

3. Request for Proposals Summary
RESOLUTION NO.

RESOLUTION WAIVING FORMAL BID REQUIREMENTS AND AUTHORIZING THE CITY

MANAGER TO NEGOTIATE AND ENTER INTO A CONTRACT WITH MIKE BROWN

ELECTRIC COMPANY FOR ELECTRIC VEHICLE CHARGING INFRASTRUCTURE INSTALLATION WORK IN AN AMOUNT NOT TO EXCEED $288,000
WHEREAS, the City of San Rafael is required to comply with the Advanced Clean Fleets regulations of the California Air Resources Board; and
WHEREAS, the Advanced Clean Fleet regulations (Title 13, Division 3, Chapter 1, Article 3.2) require transitioning the City fleet to electric or zero emissions vehicles in phases starting in 2024 with a requirement for 50% of fleet purchases to be Zero Emission Vehicles starting in 2024, and 100% of fleet purchases to be Zero Emission Vehicles starting in 2027 with some exceptions; and WHEREAS, the City of San Rafael has applied for and been accepted into the Pacific Gas and Electric Company’s EV Fleet Electrification program (“Project”); and WHEREAS, the City of San Rafael is under a deadline to procure, install, and energize electric vehicle charging equipment at the Public Works facility at 111 Morphew Street, San Rafael, by the end of June to qualify for over $300,000 in Investment Tax Credit incentives; and WHEREAS, San Rafael Municipal Code 11.50.090 authorizes purchases of supplies, materials, equipment, or services through waiver of a formal bid process when certain conditions occur; and WHEREAS, the City of San Rafael conducted an informal bid process, anticipating bids to not exceed the $220,000 award authority under Public Works procurement regulations and sent the informal bid issuance to all known qualified electrical contractors for the City; and WHEREAS, the City of San Rafael only received one bid that met the qualifications of the project, and it exceeded the Public Works award authority; and
WHEREAS, the City of San Rafael wishes to contract with Mike Brown Electric Company for the installation of electrical equipment and infrastructure at the Public Works facility in an amount exceeding normal requirements for informal bidding; and WHEREAS, the City Council of the City of San Rafael has determined that due to significant time constraints and requirements for Federal Investment Tax Credit incentives exceptions to a formal bid process are justified.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael finds the foregoing recitals are true and correct, and waives formal bidding requirements because there is no competitive advantage to bidding given the outreach staff has already conducted to potential bidders and formal bidding would cause delays that would jeopardize the project's completion and the loss of significant cost recovery through the Investment Tax Credit. And therefore, hereby authorizes the City Manager to negotiate and enter into a contract with Mike Brown Electrical Company for the Public Works facility at 111 Morphew Street in an amount not to exceed $288,000.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 20th day of April 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Lindsay Lara, City Clerk

City of San Rafael - Electric Vehicle Charging Station Project Electrical Bids
Company Cost Estimate Request Date Deadline Cost Estimate Provided: Yes
(Y)/No (N)
Cost Estimate
DC Electric 2/20/2026 3/11/2026 N
ChargeOn 2/20/2026 3/11/2026 N
Collins Electric 2/20/2026 3/11/2026 N
Forefront Power 2/20/2026 3/11/2026 N
McDonnell Electric 2/20/2026 3/11/2026 N
Mike Brown Electric 2/20/2026 3/11/2026 Y 258,436.00 $ National Car Charging 2/20/2026 3/11/2026 Y 123,911.00 $ Company Cost Estimate Request Date Deadline Cost Estimate Provided: Yes
(Y)/No (N)
Cost Estimate
ChargeOn 3/20/2026 3/31/2026 N
Collins Electric 3/20/2026 3/31/2026 N
DC Electric 3/20/2026 3/31/2026 N
Forefront Power 3/20/2026 3/31/2026 N
McDonnell Electric 3/20/2026 3/31/2026 N
Mike Brown Electric 3/20/2026 3/31/2026 Y $263,235.00
National Car Charging 3/20/2026 3/31/2026 N
Reyff Electric Co, Inc. 3/20/2026 3/31/2026 Y $173,053.36

FIRST REQUEST

SECOND REQUEST
SUMMARY: In the first request for electrical cost estimates, two submissions were received. The two submissions included estimates from 1) Mike Brown Electric and 2) National Car Charging. The Mike Brown Electric cost estimate was $258,436. The National Car Charging cost estimate was $123,911. In reviewing the lowest cost bid, City staff determined that there were deficiencies and exclusions in the National Car Charging estimate that were too important to accept. Additionally, the Mike Brown Electric cost estimate was double the amount of National Car Charging so we decided to go out for a second informal cost estimate request to ensure a competitive bid and clarify the scope of work.

SUMMARY: In the second request for electrical cost estimates, two submissions were received. The two submissions included estimates from 1) Mike Brown Electric and 2) Reyff Electric Co, Inc. The Mike Brown Elecric cost estimate was $263,235. The Reyff Electric Co, Inc. cost estimate was $173,053.36. In reviewing the lowest cost bid, City staff determined that there was a deficiency in providing the required payment and performance bonds for the project.

Additionally, after reaching out for clarification to the Reyff Electric, they decided to withdraw their cost estimate.

Therefore, City staff is requesting to proceed with Mike Brown Electric, which is the lowest cost estimate received and meets the project requirements for consideration.
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.d
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Adeel Shaikh, Junior Engineer
April Miller, Public Works Director
City Manager Approval: ______________
TOPIC: LARGE TRASH CAPTURE DEVICE PROJECTS
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST

AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH SCHAAF &

WHEELER CONSULTING CIVIL ENGINEERS (S&W) FOR ADDITIONAL DESIGN

SERVICES ASSOCIATED WITH THE LARGE TRASH CAPTURE DEVICE PROJECTS, IN THE AMOUNT NOT-TO-EXCEED $438,671, INCREASING THE TOTAL NOT-TOEXCEED AMOUNT UNDER THE AGREEMENT TO $915,236 RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a first amendment to the professional services agreement with Schaaf & Wheeler Consulting Civil Engineers (S&W) for additional design services associated with the Large Trash Capture Device Projects, in the amount not-to-exceed $438,671, increasing the total not-to-exceed amount under the agreement to $915,236.

BACKGROUND:

The City of San Rafael is required by the State Water Resources Control Board (Water Board) to install, operate, and maintain State-certified Full Capture System devices that capture all trash 5 millimeters or greater in size from defined Priority Land Use (“PLU”) areas. PLU areas include all industrial, commercial, mixed-use, high-density residential, and public transportation station areas.

As a result of a Request for Proposals (RFP), on August 19, 2024, the City Council authorized the City Manager to enter into a Professional Services Agreement with S&W in an amount not-to-exceed $476,565 to provide design services for large trash capture devices at the following three locations:
• SR-002 (Canal Pump Station)
• SR-129 (Redwood Hwy)
• SR-143 (Rossi Pump Station)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
During design, staff identified a new trash capture device that lowers the maintenance burden by bringing trash to the surface and dropping it into a dumpster. All devices need to be certified by the Water Board before installation. Therefore, S&W submitted an application to the Water Board for the use of this device at three locations: Canal Pump Station, Kerner Pump Station, and North Francisco Pump Station. The new trash capture device for use at the three pump stations was added to the list of certified devices on September 17, 2025.

ANALYSIS:

Following the certification of the new trash capture device for use at the Canal, Kerner, and North Francisco pump stations, staff recommends an amendment to the Professional Services Agreement with S&W to include the design of large trash capture devices at the following two locations:
• SR-004 (Kerner Pump Station)
• SR-108 (North Francisco Pump Station)
S&W was found to be well qualified for the design of large trash capture devices as a result of the qualifications-based selection process, resulting in the original agreement with S&W.

FISCAL IMPACT:

S&W has estimated that $438,671 is needed to provide the additional design services as previously described. This would increase the total agreement amount to $915,236. Existing appropriations within the project budget are sufficient to cover the proposed contract amendment. The Fiscal Year 2025-26 Budget (Stormwater Fund #205), approved by City Council on June 2, 2025, included appropriations totaling $1,491,710 for the Project’s design phase. EPA WQIF grant funding is being used to reimburse the City for work performed under the professional service agreement.

OPTIONS:

The City Council has the following options to consider in this matter:

1. Adopt the resolution as presented.

2. Do not adopt the resolution and provide further direction to staff.

RECOMMENDED ACTION:

ATTACHMENT:

1. Resolution

2. First Amendment to Professional Service Agreement with S&W RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO THE

PROFESSIONAL SERVICES AGREEMENT WITH SCHAAF & WHEELER CONSULTING CIVIL

ENGINEERS (S&W) FOR ADDITIONAL DESIGN SERVICES ASSOCIATED WITH THE LARGE TRASH CAPTURE DEVICE PROJECTS, IN THE AMOUNT NOT-TO-EXCEED $438,671, INCREASING THE TOTAL NOT-TO-EXCEED AMOUNT UNDER THE AGREEMENT TO $915,236 WHEREAS, the City of San Rafael issued a Request for Proposals (RFP) on June 13, 2024, for design services associated with the Large Trash Capture Device Projects and selected Schaaf & Wheeler Consulting Civil Engineers (S&W) as a qualified consultant; and WHEREAS, the City of San Rafael entered into a Professional Services Agreement dated August 26, 2024, with S&W, for design services associated with the Large Trash Capture Device Projects, in the amount not to exceed $476,565; and
WHEREAS, the City of San Rafael requires additional design services from S&W to deliver the design phase of the Project; and
WHEREAS, staff received a proposal from S&W for said services in a total amount not to exceed $438,671; and
WHEREAS, staff has reviewed the proposal and found it to be complete and within industry standards; and
WHEREAS, the current FY 2025-26 budget approved by the City Council on June 2, 2025, includes appropriations totaling $1,491,710 within the Stormwater Fund (#205) for the Project.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:

1. The City Manager is hereby authorized to execute a First Amendment to the Professional Services Agreement with Schaaf & Wheeler Consulting Civil Engineers (S&W) for design services in the amount of $438,671 for a total contract amount of $915,236 in a form approved by the City Attorney.

2. The Director of Public Works is hereby authorized to take any and all such actions and make changes as may be necessary to accomplish the purpose of this resolution.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on Monday, the 20th day of April 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

_____________________
Lindsay Lara, City Clerk

City of San Rafael
Proclamation in Recognition of

NATIONAL LIBRARY WEEK
April 19 - 25, 2026
WHEREAS, libraries stand as essential, welcoming, and inclusive spaces that enrich our community through discovery, learning, and play; and
WHEREAS, libraries spark creativity, fuel imagination, and inspire lifelong learning through digital content, emerging technologies, arts, educational and cultural programs, and books; and
WHEREAS, libraries serve as vibrant community hubs, connecting people with knowledge, technology, and resources while fostering civic engagement, critical thinking, and cultural enrichment; and
WHEREAS, libraries empower individuals of all ages, from early learners in storytimes to adults advancing their education and careers, by offering resources, training, and opportunities for personal, academic, and professional growth; and WHEREAS, through strong partnerships with schools, local businesses, cultural institutions, and community organizations, libraries expand their reach, amplify impact, and connect people with knowledge, technology, and essential services; and
WHEREAS, libraries safeguard the fundamental right to read, learn, and explore without censorship, serving as steadfast champions of intellectual freedom and the free exchange of ideas; and
WHEREAS, dedicated librarians and library workers create welcoming and inclusive environments that inspire discovery, collaboration, and creativity, encouraging all to Love Your Library as a vital community resource; and WHEREAS, libraries, librarians, and library workers nationwide are joining together to celebrate National Library Week under the theme “Find Your Joy,” encouraging everyone to connect with their library and discover the many ways it enriches their lives.

NOW, THEREFORE, I, KATE COLIN, Mayor of San Rafael, hereby proclaim April 19 through 25, 2026, as National Library Week. I encourage all residents to connect with their library by visiting any of the San Rafael libraries, either online or in person, to explore its resources, access services, participate in events and programs, and celebrate all the ways that the library helps the community find joy.

Kate Colin
Mayor
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 2.f
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Greg Minor
Assistant Director of Community
and Economic Development
City Manager Approval: ______________
TOPIC: AGREEMENTS FOR ON-CALL PLANNING, ENVIRONMENTAL, PLAN CHECK, AND

BUILDING INSPECTION CONSULTING SERVICES
SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO THE FOLLOWING PROFESSIONAL SERVICES AGREEMENTS:
(1) 4 LEAF INC., COASTLAND, INTERWEST, TRB AND ASSOCIATES, AND WILLDAN FOR

ON-CALL PLAN CHECK AND BUILDING INSPECTION SERVICES IN AN AMOUNT NOT TO EXCEED $500,000 PER FIRM; AND,
(2) M GROUP IN AN AMOUNT NOT TO EXCEED $500,000 AND LAK ASSOCIATES, LLC IN AN AMOUNT NOT TO EXCEED $300,000 TO PROVIDE ON-CALL PLANNING AND ENVIRONMENTAL CONSULTING SERVICES.

RECOMMENDATION:

Staff recommends that the City Council adopt the resolution authorizing the City Manager to enter into professional services agreements with (1) 4 Leaf Inc., Coastland, Interwest, TRB and Associates, and Willdan for on-call plan check and building inspection services in an amount not to exceed $500,000 per firm and (2) M Group in an amount not to exceed $500,000 and LAK Associates, LLC for an amount not to exceed $300,000 for on-call planning and environmental consulting services.

BACKGROUND:

The City of San Rafael’s Community and Economic Development (CED) Department has seen a surge in development applications over the last few years. To process these applications, during the entitlement process, CED must analyze each project for compliance with planning and environmental laws, and during the construction process, CED must review plans and inspect buildings for compliance with the building code. Having a list of authorized on-call consultants to provide these services will ensure the efficient processing of applications, which is pivotal for housing development, given recent state laws that established strict processing timelines for housing projects.

Accordingly, in the spring of 2025, CED staff released a Request for Qualifications (RFQ) to identify qualified consultants to provide on-call planning and environmental review services, as well as an RFQ for on-call plan check and building inspection services. The City received 25 responses to the planning SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
and environmental services RFQ and 14 responses to the plan check review and building inspection services RFQ. CED staff then reviewed the responses and scored them based on the firms’ experience, project approach, availability, familiarity with local issues, and references, as well as the quality and completeness of the proposal. Subsequently, CED staff identified several new firms with experience in planning and environmental review, plan review, and building inspection services.

In addition to these new firms, CED has had a successful experience working with the following seven firms for on-call planning, environmental planning, plan check, and building inspection services: 4 Leaf, Inc., Coastland, Interwest, M Group, TRB and Associates, Willdan, and LAK Associates, LLC. In order to efficiently process existing and forthcoming development applications, CED needs to initiate new professional service agreements with these existing seven firms.

ANALYSIS:

Establishing an authorized list of on-call qualified planning, environmental, plan check, and building inspection consultants will ensure the smooth processing of development applications from the initial preapplication through construction. Efficient application processing is essential for housing development applications, as state laws impose strict processing timelines that afford local governments only a narrow window to review applications for completeness and consistency with local requirements. Accordingly, through the RFQ process CED staff has identified several new qualified planning and environmental firms as well as firms to provide plan check and building inspection services. CED intends on initiating professional services agreements with these new firms in an amount not to exceed the City Manager’s contract authority. This will provide the City with multiple options for reviewing development applications and allow CED and these new firms an opportunity to work together before seeking City Council authorization to perform work under a larger professional services agreement.

In addition to initiating professional service agreements with new firms, CED recommends establishing new professional service agreements with the following seven firms that have already successfully provided on-call planning and building services to the City: 4 Leaf, Inc., Coastland, Interwest, M Group, TRB and Associates, Willdan, and LAK Associates, LLC. These new agreements will ensure development applications already under review will continue to move forward without delay and that the City has capacity to process new applications in the future. Altogether, streamlining the processing of development applications will boost the City’s economy and maximize the housing available to the San Rafael community.

As project applicants are responsible for any costs the City incurs in processing their development applications, the CED Department can pass the costs of the proposed professional services agreements on to project applicants. Staff proposes a not-to-exceed cap of $500,000 per agreement to provide sufficient funding for the processing of multiple projects over the next two years. While the cost of environmental review and oversight of the entitlement process varies by project complexity, a typical infill housing development, which is becoming the most common type, costs approximately $50,000 in environmental and planning review services. Thus, $500,000 in contract authority for multiple consultants will allow CED staff to streamline the processing of development applications for the foreseeable future.

FISCAL IMPACT:

The recommended professional services agreements will be funded by project applicants as reimbursable services provided for the processing of development applications, or to the extent that the CED Department requires any services from these professional services agreements that are not directly related to a specific development project, these services will be funded by the CED Department’s existing budget.

OPTIONS:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
The City Council has the following options to consider in this matter:

1. Authorize the City Manager to enter into the proposed professional services agreements;

2. Authorize the City Manager to enter into the agreements with modifications;

3. Direct staff to return with more information; or

4. Take no action.

RECOMMENDED ACTION:

ATTACHMENTS:

Resolution

Page 1 of 2 ends

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO ENTER INTO THE FOLLOWING PROFESSIONAL SERVICES AGREEMENTS:
(1) 4 LEAF INC., COASTLAND, INTERWEST, TRB AND ASSOCIATES, AND WILLDAN FOR

ON-CALL PLAN CHECK AND BUILDING INSPECTION SERVICES IN AN AMOUNT NOT TO EXCEED $500,000 PER FIRM; AND
(2) M GROUP IN AN AMOUNT NOT TO EXCEED $500,000 AND LAK ASSOCIATES, LLC IN AN AMOUNT NOT TO EXCEED $300,000 TO PROVIDE ON-CALL PLANNING AND ENVIRONMENTAL CONSULTING SERVICES.

WHEREAS, the City of San Rafael’s Community and Economic Development (CED) Department is processing a significant level of development related applications, which require analyzing projects for compliance with planning, environmental, and building codes; and WHEREAS, in order to process development applications in a timely manner, particularly in light of new state housing laws designed to streamline application processing, it is essential that the City has available planning, environmental, and building consultants available as soon as the City receives development applications; and
WHEREAS, to identify a broad base of consultants, in May 2025 the CED Department issued a Request for Qualifications (RFQ) to identify qualified consultants to provide on-call services for land use entitlement processing and California Environmental Quality Act (CEQA) review as well as an RFQ for on-call plan check review and building inspection services; and WHEREAS, the CED Department received 25 responses to the planning and environmental services RFQ and 14 responses to the plan check review and building inspection services RFQ; and WHEREAS, CED staff reviewed the responses received and scored the responses based on the firms’ quality and completeness of the proposal, experience, project approach, availability, familiarity with local issues, and references; and
WHEREAS, through the RFQ process CED identified several new firms offering planning, environmental consulting, plan review and building inspection services; and WHEREAS, CED intends on commencing professional services agreements with these new firms at an amount not to exceed the City Manager’s contract authority, which will provide CED and these new firms an opportunity to work together before seeking City Council authorization to perform work under a larger professional services agreement; and WHEREAS, CED has already had a successful experience working with the following seven firms for on-call planning, environmental planning, plan check or building inspection services: 4 Leaf, Inc., Coastland, Interwest, M Group, TRB and Associates, Willdan, and LAK Associates, LLC; and WHEREAS, CED needs to initiate new professional service agreements with these existing seven firms to ensure the efficient processing of existing and forthcoming development applications; and

Page 2 of 2 ends

WHEREAS, project applicants are responsible for reimbursing the City for the costs incurred by the City processing their development applications; and WHEREAS, the CED Department will fund the costs of these new professional services agreements through reimbursement agreements with project applicants; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael authorizes the City Manager or their designee to execute professional services agreements with the following plan check and building inspection firms for an amount not to exceed $500,000 per firm: 4 Leaf Inc., Coastland, Interwest, TRB and Associates, and Willdan; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael authorizes the City Manager or their designee to execute a professional services agreement in an amount not to exceed $500,000 with M Group and $300,000 with LAK Associates, LLC to provide oncall planning and environmental consulting services.

FURTHER RESOLVED, that the City Council further authorizes the City Manager or their designee to utilize funding already appropriated to the Community and Economic Development Department to fund any work performed under the above-referenced professional services agreements that is not directly related to a specific development; and I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday the 20th day of April, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_______________________
LINDSAY LARA, City Clerk
____________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 3.a
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: Cory Bytof,
Sustainability Program Manager
City Manager Approval: __________
TOPIC: MARIN SANITARY SERVICE FRANCHISE AMENDMENTS
SUBJECT: A RESOLUTION ADOPTING A FEE STUDY FOR THE CITY’S COST OF SOLID WASTE SERVICES FEE AND THE CITY’S FRANCHISE FEE FOR THE USE OF CITY PROPERTY IN THE PROVISION OF SOLID WASTE RELATED SERVICES; (2) REPEALING THE CITY’S IMPOSITION OF THE REFUSE VEHICLE IMPACT FEE; AND (3) DECREASING THE CITY’S COST OF SERVICE FEE AND FRANCHISE FEE IMPOSED ON MARIN SANITARY SERVICES: CEQA DETERMINATION: EXEMPT PURSUANT TO CEQA GUIDELINE 15378(b)(4)

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT

TO THE FRANCHISE AGREEMENT WITH MARIN SANITARY SERVICE TO REQUIRE

STREET SWEEPING SERVICES, AND TO CLARIFY AUTHORIZATION TO ENCROACH

UPON PUBLIC RIGHT-OF-WAY, AND FOR THE CITY TO IMPOSE A FEE FOR RIGHT

OF ENCROACHMENT
RECOMMENDATION:

Staff recommends that the City Council adopt a

1. Resolution adopting a Fee Study for the City’s Cost of Solid Waste Services (“Cost of Service”) Fee and the City’s Franchise Fee for the use of City property in the provision of solid waste related services; repealing the City’s imposition of the Refuse Vehicle Impact Fee, and decreasing the City’s Cost of Service and Franchise Fees imposed on Marin Sanitary Service.

2. Resolution authorizing the City Manager to execute an amendment to the Franchise Agreement with Marin Sanitary Service to require street sweeping services, and to clarify authorization to encroach upon public right-of-way, and for the City to impose a fee for right of encroachment.

BACKGROUND:

Franchise Agreement, Franchise Fees, and Franchisors’ Group Article XI of the California Constitution and the California Public Resources Code allows cities to regulate refuse and recycling services. Marin Sanitary Service is the City’s sole refuse provider and provides refuse, recycling, and organic materials collection for all residents and businesses in San Rafael, as well SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
as for several other jurisdictions in Marin. The City has a Franchise Agreement with Marin Sanitary Service that outlines the terms of the agreement, the services they provide, and how rates are calculated and adjusted periodically. The City Council adopted the last amendment to the Franchise Agreement on November 4, 2024.

In 2023, the City conducted a Franchise Fee Study to determine the appropriate amount of fees the City can collect based on the City’s actual costs and property use charges, which resulted in a total of $3,077,000 for calendar year 2024. In addition, the Fee Study calculated the City’s Refuse Vehicle Impact Fee based on common vehicle impact calculations. The City Council adopted this Fee Study on December 18, 2023.

Marin Sanitary Service also provides other refuse services, including street sweeping, which they conduct for several Marin cities and towns, including the City of Larkspur and the Town of Fairfax. They do not currently provide this service for the City of San Rafael. The San Rafael Public Works Department provides street sweeping services for residential and commercial areas to reduce the amount of debris that enters the City’s storm drains, which can clog and cause flooding during storms. Historically, the majority of material entering these storm drains is refuse-related, including plastic and other trash. The services currently provided by the City are insufficient to meet demand.

ANALYSIS:

This year, the City’s consultant, R3 Consulting Group, Inc., updated the City’s 2023 Franchise Fee Study to reflect current costs of service and values of property used for storage and collection of refuse containers. R3’s fee calculations are set forth in the Solid Waste Costs and Property Use Charge Study Report. New maximum authorized fee amounts are shown in the Study, included as Attachment 2. City staff recommends reducing the Cost of Service Fee by $32,401 to $1,913,000 and retaining the Franchise Fee at $1,216,000, the same level as last year.

In addition to these updates, Rogers v. City of Redlands (2025) 112 Cal.App.5th 667, 673-76 recently held that Vehicle Code Section 9400.8 prohibits a city from charging a fee for the use of its roadways.

Based on this decision, Marin Sanitary Service has stopped making payments to the City for revenue generated by the Refuse Vehicle Impact Fee, effective January 1, 2026. Accordingly, staff is recommending rescinding the Refuse Vehicle Impact fee. Revenue collected through this fee have been used to support the City’s annual Pavement Maintenance Program. One-time funding has been identified to partially back-fill for the loss of this revenue source through FY2026-27.

In consultation with the Public Works Department and the Finance Department, the City has determined it would be beneficial to require street sweeping in Marin Sanitary Service’s provision of services to the City to supplement the current street sweeping conducted by the City to meet resident and business expectations. Currently, the City Public Works Department must divert staff time from other duties to conduct street sweeping and is still unable to meet regulations and demands requiring the City to prevent trash from entering the storm drain system. Having Marin Sanitary Service provide residential street sweeping services, in addition to the street sweeping services that the City will continue to provide, would allow the City to increase services in commercial and industrial areas to meet compliance and demand.

This change requires an amendment to the current Franchise Agreement.

Since this would not start until mid-year and would only cover a partial year, the cost for adding street sweeping services to the Marin Sanitary Service rates for 2026 would be roughly $56,337. It has been determined that no adjustment to the current Marin Sanitary Service rates will be necessary to fund street sweeping services at this time, as the rates currently support such a move. Marin Sanitary Service will track the costs, and any potential overages could be reconciled in the 2027 rate application. In 2027, the cost would increase to approximately $97,000 per year as the service would be provided for a full twelve months. In 2027 and future years, the rate impact would be less than 0.5% added to the rates.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Each year, Marin Sanitary Service submits a rate application to the City that calculates costs and revenues as well as projections for the coming year’s customer rates. This is based on the rate setting methodology found in Exhibit B of the Franchise Agreement the City has with Marin Sanitary Service and is reviewed by R3 Consulting Group, Inc. Owing to the repeal of the Refuse Vehicle Impact Fees imposed by the City on Marin Sanitary Service, no adjustment to solid waste rates is necessary in 2026 to meet the likely increase in Marin Sanitary Service’s calculated rate revenue requirement for 2027. The surplus in 2026 projected rate revenues compared to the 2026 revenue requirement will be carried forward to the 2028 compensation adjustment application and will offset the 2028 rate adjustment, as per Exhibit B, Section II.B.10.d of the Franchise Agreement. That provision establishes that surplus rate revenues are applied to offset future years’ rate adjustments. Therefore, the surplus rate revenues in 2026 will serve as rate stabilization reserves, reducing the amount by which rates would need to be increased in 2028 to keep up with the cost of providing service.

ENVIRONMENTAL DETERMINATION:

Staff has determined that pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4) adoption of the 2026 Fee Study, the repeal of the Refuse Vehicle Impact Fee, and decreasing of the Cost of Service and Franchise Fees are not a project under CEQA because these actions do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

FISCAL IMPACT:

These changes, if adopted, would reduce the annual amount of Cost of Service Fees remitted to the City’s General Fund from $1,945,401 to $1,913,000, a difference of $32,401. The Franchise Fee would remain at $1,216,000. Removing the Refuse Vehicle Impact Fee would reduce funding supporting the City’s Pavement Management Program City’s revenue to the City’s General Fund by roughly $1,480,000 per year. One-time funding has been identified to partially back-fill for the loss of this revenue through FY 2026-27.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt a

OPTIONS

1. Adopt resolutions as presented

2. Adopt resolutions with amendments

3. Don’t adopt resolutions and direct staff to return with more information ATTACHMENTS:

1. Resolution Adopting Fee Study, Repealing the Refuse Vehicle Impact Fee, and Decreasing Cost of Service and Franchise Fees

2. Exhibit A to Resolution: Solid Waste Costs and Property Use Charge Study Report

3. Exhibit B to Resolution: Cost of Service Fee and Franchise Fee Amounts

4. Resolution Adopting 6th Amendment to Franchise Agreement with Marin Sanitary Service SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4

5. Exhibit A to Resolution: 6th Amendment to Franchise Agreement with Marin Sanitary Service

6. Attachment 1 to 6th Amendment: Marin Sanitary Service Street Sweeping Proposal

7. 2026 MSS Compensation Report
1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL (1) ADOPTING A FEE STUDY FOR THE CITY’S COST OF SOLID WASTE SERVICES FEE AND THE CITY’S

FRANCHISE FEE FOR THE USE OF CITY PROPERTY IN THE PROVISION OF SOLID WASTE RELATED SERVICES; (2) REPEALING THE CITY’S IMPOSITION OF THE REFUSE VEHICLE IMPACT FEE; AND (3) DECREASING THE CITY’S COST OF SERVICE FEE AND FRANCHISE FEE IMPOSED ON MARIN SANITARY SERVICE: CEQA DETERMINATION: EXEMPT PURSUANT TO CEQA GUIDELINE 15378(b)(4)
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into an “Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service,” dated September 4, 2001, and amended by a written first amendment dated March 1, 2005, a written second amendment dated November 14, 2012, a written third amendment dated February 25, 2019, a written fourth amendment approved by the City Council on December 6, 2021, and a written fifth amendment approved by the City Council on November 4, 2024 (hereafter the “Franchise Agreement”); and
WHEREAS, Section II(B)(6)(d) of Exhibit B of the Franchise Agreement authorizes the City to establish and impose fees or charges for benefits conferred, privileges granted, or services or products provided to the Company, or for the City’s reasonable regulatory costs, related to or involving Marin Sanitary Service’s responsibilities under the Franchise Agreement; and WHEREAS, Section II(B)(9) of Exhibit B of the Franchise Agreement authorizes the City to set a franchise fee at any amount equal to or less than the reasonable market value of the City property, as determined by the parties and set forth in the Franchise Agreement, used by Marin Sanitary Service, for solid waste-related services; and WHEREAS, R3 Consulting Group produced a Solid Waste Franchise Fee Study Report, dated December 6, 2023 (“2023 Franchise Fee Study”), which determined the reasonable fees the City could impose, pursuant to Article XIII C, Section 1 of the California Constitution, to (1) recover its costs of providing specific benefits or privileges, services, and/or products to Marin Sanitary Service for the provision of solid waste-related services; (2) to recover the costs of addressing the impacts of solid waste refuse vehicles on City streets; and (3) for the reasonable value of City property used by Marin Sanitary Service in its provision of solid waste-related services; and WHEREAS, The City Council accepted and adopted the 2023 Franchise Fee Study and found and determined that the City’s Cost of Service Fee, Franchise Fee, and Refuse Vehicle Impact Fee complied with Article XIII C of the California Constitution and were justified by the City’s costs of providing solid waste-related services, reasonable charges for the use of City property for 2 solid waste services, and the City’s costs of addressing the impacts of solid waste refuse vehicles, when it adopted Resolution No. 15265 on December 18, 2023; and WHEREAS, on November 4, 2024, the City Council adopted Resolution No. 15355, which adopted a Cost of Service Fee, an updated Refuse Vehicle Impact Fee, and a Franchise Fee, authorized by the analysis in the 2023 Franchise Fee Study, in compliance with Article XIII C of the California Constitution, which were to be imposed on Marin Sanitary Service for the City’s costs of providing solid waste-related services and regulatory activities, the City’s costs of addressing the impacts of solid waste refuse vehicles, and the reasonable value of Marin Sanitary Service’s exclusive and special right to use City property for solid waste services; and WHEREAS, since the City Council adopted the updated Refuse Vehicle Impact Fee on November 4, 2024, the Fourth District California Court of Appeal decided Rogers v. City of Redlands (2025) 112 Cal.App.5th 667 (“Rogers”); and
WHEREAS, in response to Rogers, the City stopped collecting the Refuse Vehicle Impact Fee from Marin Sanitary Service on January 1, 2026 and desires to repeal the Refuse Vehicle Impact Fee on Marin Sanitary Service; and
WHEREAS, R3 Consulting Group reviewed the 2023 Franchise Fee Study and produced a Solid Waste Costs and Property Use Charge Study Report – 2026 Update, dated March 31, 2026 (“2026 Fee Study”), attached hereto as Exhibit A, and incorporated herein which determined that the City’s Cost of Service Fee and Franchise Fee continue to be reasonable and justified pursuant to Article XIII C, Section 1 of the California Constitution; and WHEREAS, the City desires to set the Cost of Service Fee and the Franchise Fee at amounts set forth in Exhibit B, which is attached hereto and incorporated herein, and which are lower than the fee amounts adopted by Resolution No. 15355.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(4), this action is not a project under CEQA because the City’s adoption of the 2026 Fee Study, repeal of the Refuse Vehicle Impact Fee, and decreasing of the Cost of Service and Franchise Fees do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

Section 2. The City Council hereby repeals the Refuse Vehicle Impact Fee, which the City ceased to impose on Marin Sanitary Service on January 1, 2026. 3 Section 3. The City hereby sets the Cost of Service Fee and the Franchise Fee at the amounts set forth in Exhibit B.

Section 4. The City Council hereby approves and adopts the 2026 Fee Study, attached hereto as Exhibit A, and finds that the City’s Cost of Service Fee, as set by this Resolution, does not exceed the City’s reasonable costs for providing services or products, and/or the City’s reasonable regulatory costs, related to Marin Sanitary Service’s provision of solid waste-related services, and the City’s Franchise Fee, as set by this Resolution, does not exceed the fair market value of the Marin Sanitary Service’s exclusive right to use City property for the provision of solid waste-related services, as negotiated by the parties and set forth in the Franchise Agreement.

Section 5. To the extent the provisions of this resolution conflict with any prior resolutions, the provisions of this resolution shall control.

I, Lindsay Lara, City Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 20th day of April 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
__________________________
LINDSAY LARA, City Clerk
1504 Eureka Road, Suite 220, Roseville, CA 95661 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com March 31, 2026
Mr. Paul Navazio
Interim City Manager
City of San Rafael
submitted via email: [email protected]
SUBJECT: Solid Waste Costs and Property Use Charge Study Report – 2026 Update Dear Mr. Navazio,
R3 Consulting Group, Inc. (R3) is pleased to submit the attached Report of 2026 Update to the Solid Waste Costs and Property Use Charge Study (Study) for the City of San Rafael (City). This Report presents our analytical methodology, results and findings. The purpose of this Study was to comprehensively analyze and calculate the following:

City Costs: The annual costs to the City for performing its management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.

Property Use Charges: The annual use charge to the Contractor for its special and lasting right to use and encroach upon City property in the public right-of-way for the placement of solid waste containers and collection of the solid waste contents.

This 2026 Update updates findings and values originally included in our December 6, 2023, report. That report calculated values as of fiscal year (FY) 2023-24 with City Costs being $1,904,000 and Property Use Charges being $1,173,000. This 2026 Update to the Study revises the FY 2023-24 City costs to provide solid waste-related services to $1,825,000 and revises the value of the public right-of-way used for solid waste services to $1,642,000 based on updated figures for the areas used for the set out of solid waste collection containers to match the guidance provided by the City’s Contractor. This Study makes the conservative assumption that costs for calendar year (CY) 2024 were the same as FY 2023-24.

This 2026 Update further projects the CY 2025 and CY 2026 City Cost of Service Fee and Franchise Fee based on the annual change in the Consumer Price Index (CPI) for All Urban Consumers (CPI-U) for the San Francisco Bay Area. Using June of the most recent year compared to the June of the prior year (which matches the approach included in the Contractor’s Agreement) results in a 3.24% increase for CY 2025 and a 1.54% increase for CY 2026. Applying the CY 2025 CPI increase of 3.24% to the CY 2024 amounts calculated via this Study results in CY 2025 City Cost of Service Fee of $1,884,000 and Franchise Fee for the use of government property of $1,695,000. Applying the CY 2026 CPI increase of

1.54% to the CY 2025 amounts shown in the prior sentence results in CY 2026 City Cost of Service Fee of $1,913,000 and Franchise Fee of $1,721,000.

We appreciate the opportunity to be of service to the City. If you have any questions regarding this Report or need additional information, please contact me.

Sincerely,

Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | [email protected]
Exhibit A

TABLE OF CONTENTS
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update toc - i

1. Executive Summary
page 1

2. Methodology and Calculations
page 3

1. EXECUTIVE SUMMARY
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 1 of 10 Background & Purpose
The City’s Refuse and Recyclable Material Collection and Disposal Services Agreement (Agreement) with Marin Sanitary Services (Contractor) is for the collection, processing, and disposal of solid waste from covered waste generators in the City. The Agreement provides the Contractor with the exclusive right to provide critical aspects of the City’s sanitation system including solid waste collection and the other services and programs included in the Agreement.

The Agreement specifies that the Contractor will charge solid waste service subscribers, with the Contractor billing and collecting revenues from subscribers and the City authorizing the maximum rates that the Contractor may charge pursuant to the rate adjustment methodology included in the Agreement.

The City incurs costs for providing solid waste collection services (City Costs). R3 Consulting Group, Inc. (R3) was engaged to review, analyze, and quantify the annual amounts of these costs. R3 was also engaged to review, analyze, and quantify the annual amount of a reasonable property use charge for the use of the public right-of-way for the special and lasting access to use and encroach on it for setout and collection of solid waste containers (referred to in the Agreement as the Franchise Fee). This Report summarizes R3’s methodology, analysis, and findings regarding the City’s costs and property use charge amounts.

Methodology and Findings
R3 reviewed and analyzed information provided by the City pertaining to the City Costs and a Franchise Fee. R3 used the information provided by the City, as well as information obtained via research and analysis, to calculate the annual amounts for the City’s provision of solid waste collection services and a property use charge for use of the public right-of-way. All calculated amounts in this Study are in prior Fiscal Year (FY) 2023-24 dollars and are rounded to the nearest $1,000, except where otherwise noted.

City Costs
The annual costs to the City for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system includes: staffing salary and benefits, contracted services, capital and equipment depreciation, operations and maintenance, supplies, and overhead for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions. Staffing costs are calculated based on estimated time allocations (based on historical experience) and other costs are calculated based on estimated share allocations associated with the sanitation system, with distributed overhead applied to both.

The calculation results for FY 2023-24 were $1,568,000 in staffing costs and $257,000 in other costs for annual City Costs totaling $1,825,000.

Calendar year 2024 amounts were set equal to the FY 2023-24 amounts of $1,568,000 in staffing costs and $257,000 in other costs for annual City Costs totaling $1,825,000.

Calendar year 2025 amounts are calculated based on the calendar year 2024 amounts and escalated by the 3.24% CPI resulting in annual City Costs totaling $1,884,000.

Calendar year 2026 amounts were calculated based on the calendar year 2025 amounts and escalated by the 1.54% CPI resulting in annual City Costs totaling $1,913,000.

Executive Summary
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 2 of 10 Franchise Fee
The annual charge to the Contractor for use of government property in the public right-of-way is calculated as a function of estimates for the number of solid waste accounts setting out solid waste collection containers in the right-of-way, the set-out area used, the amount of time it is used, and the market value for the per square foot use of the public right-of-way.

The CY 2024 calculation result for the use of the public right-of-way is an annual total Franchise Fee of $1,642,000.

Calendar year 2025 amounts are calculated based on the calendar year 2024 amounts and escalated by the 3.24% CPI resulting in an annual Franchise Fee of $1,695,000.

Calendar year 2026 amounts were calculated based on the calendar year 2025 amounts and escalated by the 1.54% CPI resulting in an annual Franchise Fee of $1,721,000.

Conclusions
The sum of CY 2024 annual City Cost of Service Fee and Franchise Fee calculated in this Study is $3,467,000. For CY 2025, the total is $3,579,000 and for CY 2026, the total is $3,634,000.

Limitations
This analysis relies on information provided by the City, which has been reviewed and analyzed for reasonableness and accuracy but not independently audited. It was necessary to estimate certain values for information that the City did not have, and for which reasonable ranges are known to exist. When it was necessary to establish estimates or assumptions for those values, R3 relied on decades of professional experience working with dozens of local government agencies in California on solid waste collection and other local government public administration matters. We recommend that City staff and legal counsel conduct a thorough review of all information contained in this Report to affirm assumptions, estimates, calculations, and dollar results so that we can achieve mutual concurrence on applicability and reasonableness of estimated and assumed values. This analysis includes estimation of a property use charge value – R3 does not employ property appraisers and the property use charge value presented in this Report is an estimate of reasonable fair market value and does not constitute an appraisal.

2. Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 3 of 10 City Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund costs incurred for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system. These costs include any may not be limited to:

Staffing costs, including salaries and benefits.

Contracted services.

Capital and equipment depreciation.

Capital and equipment operations and maintenance.

Supplies and materials.

Overhead for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Using the total annual salary, benefit and other cost information provided by the City we estimated the proportion of costs associated with management and administration of the agreement and the sanitation system. We then calculated the totals and categorized them by the functions listed in the sections below.

Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are dedicated to management and administration of the Agreement and the sanitation system (including time supervising others with primary responsibility for these duties), the amount by which funding of salaries and benefits is paid by the General Fund, and the applicable amount of General Fund overhead. The estimated time allocation by position category used in this Study (and based on historical experience) is shown in Table 1, on the following page, along with the explanation for the allocation values.

Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 4 of 10 Table 1 – Allocations of Staffing Time by Position
Positions Time
Allocation Explanation
City Manager, Assistant City Manager, City
Attorney, Assistant City Attorney, City Clerk,
Deputy City Clerk, Public Works Director, Deputy
Public Works Director, Management Analyst,
Operations and Maintenance Manager, Sr. Code
Enforcement Supervisor, Code Enforcement
Supervisor, Police Lieutenant, Police Sergeant
(2), Police Officer.

4.9%
Estimated amount of time spent
on solid waste activities.

Code Enforcement Official I and II. 10%
Estimated amount of time spent
on solid waste code enforcement
obligations.

Sustainability Program Manager. 25%
Estimated amount of time spent
on job duties for management
and administration of the
Agreement and the sanitation
system.

Public Works Maintenance Crews responsible for
Street Sweeping, Catch Basin Waste Removal,
and Illegal Dumping Clean-up.
80%
Estimated amounts of time spent
handling and removing solid
waste.

R3 verified with City staff that the salaries and benefits included in this Study are paid by the General Fund – any non-General Fund portions of positions included in Table 1 have been excluded from the calculations. A General Fund overhead rate of 10.6% (provided by the City’s Finance Director and for the distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs.

Other Costs
Variables associated with the City’s other (i.e., non-salary and benefit) costs include the allocation of those costs that are for management and administration of the Agreement and the sanitation system, the amount by which these costs are paid by the General Fund, and the applicable amount of General Fund overhead. The estimated time allocation by cost category used in this Study is shown in Table 2, on the following page, along with the explanation for the allocation values.

Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 5 of 10 Table 2 –Allocations of Other Costs by Category
Cost Category Cost
Allocation Explanation
Public Works Maintenance Crews responsible for
Street Sweeping, Catch Basin Waste Removal,
and Illegal Dumping Clean-up.
80%
Estimated allocation based on
proportion of waste generation in
City.

Consulting costs for direct management and
administration of Agreement and sanitation
system.
100%
All these costs are directly
associated with management and
administration of the Agreement
and the sanitation system.

R3 verified with City staff that the other costs included in this Study are paid by the General Fund – any non-General Fund portions of these costs as included in Table 2 have been excluded from the calculations. A General Fund overhead rate of 10.6% (provided by the City’s Finance Director) is also applied to the total allocated costs.

Analysis
Direct Management and Administration
This category includes City staffing and consulting costs for direct management and administration of the Agreement and the sanitation system. Staffing costs include allocated costs for the City’s Public Works Director, Deputy Public Works Director, Sustainability Program Manager, Management Analyst, and Operations and Maintenance Manager, for a calculated $116,000 in annual staffing costs. Other costs include solid waste consulting services provided by R3, for $7,000 in annualized consulting costs. The total calculated cost for this category is $123,000.

Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including supervision of those responsible for direct management and administration of the Agreement and the sanitation system and associated responsibilities. Allocated costs for the City Manager, Assistant City Manager, City Attorney, Assistant City Attorney, City Clerk, and Deputy City Clerk are calculated for total annual costs in this category of $111,000.

Code Enforcement
This category includes City staffing costs for enforcing the solid waste provisions of the City’s Municipal Code, which includes illegal solid waste accumulations, illegal dumping, littering, improper waste collection setouts, nuisances, and the associated investigations, warnings, notices of violation, and administration of penalties. Staffing costs include allocated costs for the City’s Code Enforcement Supervisors and Officials and Police Officer, Sergeants, and Lieutenant for calculated total annual costs in this category of $107,000.

Street Sweeping
When the Contractor or individual waste generators do not properly manage the collection of solid waste, that mismanaged solid waste tends to end up in the public right-of-way and on streets, where it must be removed by the City. Street sweeping captures solid waste that ends up in public streets because of improper collection. Most if not all of the solid waste that ends up Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 6 of 10 in the streets is generated by properties that receive solid waste collection services from the Contractor.

For the purposes of this Study, we do not assume that all mismanaged solid waste that ends up on the City’s streets is generated by properties receiving solid waste services. Rather, because there is the possibility that some solid waste collected by street sweeping operations was originally generated by other sources, this Study estimates that only 80% of the solid waste collected by street sweepers was generated by properties receiving solid waste services. This assumption is consistent with other studies conducted by R3 (for the cities of Garden Grove and San Bruno) wherein street sweeping activities were allocated between 77.4% and 90% to the sanitation system.

This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s street sweeping operations in commercial areas. This Study does not include the costs for street sweeping in residential areas, as the City intends to outsource that service to the Contractor. Allocated staffing costs for the Public Works maintenance crews are calculated to be $284,000 annually. The allocated and annualized costs for capital equipment and operations and maintenance costs are calculated to be $113,000 annually, for a calculated total in this category of $397,000.

Catch Basin Waste Removal
As with street sweeping, solid waste that is not properly managed by waste generators or the Contractor, and not otherwise captured by street sweeping operations, accumulates in catch basins and other trash capture devices in the City’s storm drain system. As with the street sweeping category, we do not assume that all mismanaged solid waste that ends up in catch basins or trash capture devices is generated by properties that receive solid waste services; the 80% estimate used for street sweeping costs is also applied here, and for the same reasons.

This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s catch basin waste removal operations. Allocated staffing costs for the Public Works maintenance crews are calculated to be $844,000 annually. The allocated and annualized costs for capital equipment and operations and maintenance costs are calculated to be $136,000 annually, for a calculated total in this category of $980,000.

Illegal Dumping Clean-up
The City’s Public Works maintenance crews also clean up solid waste materials that are illegally dumped throughout the City. As with street sweeping and catch basin waste removal, an 80% waste generation allocation is applied. This category includes City staffing costs for illegal dumping clean-up. Allocated staffing costs for the Public Works maintenance crews are calculated to be $106,000 annually. The allocated costs for equipment maintenance and fuel are calculated to be $1,000 annually, and the for a calculated total in this category of $107,000.

Annual Total of City Costs
Table 3, on the following page, shows the total of the City Costs for management and administration of the Agreement and the sanitation system as calculated in this Study, by category.

Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 7 of 10 Table 3 – Annual City Costs by Category and in Total FY 2023-24 Category Staffing Costs Other Costs Total
Direct Management
and Administration $116,000 $7,000 $123,000
Indirect Management
and Administration $111,000 N/A $111,000
Code Enforcement $107,000 N/A $107,000
Street Sweeping $284,000 $113,000 $397,000
Catch Basin Waste
Removal $844,000 $136,000 $980,000
Illegal Dumping Cleanup
$106,000 $1,000 $107,000
Total Annual City
Costs $1,568,000 $257,000 $1,825,000
Franchise Fee
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to the Franchise Fee for Contractor’s use of the public right-of-way for collection of solid waste collection containers. We then calculated the annual Property Use Charges based on:

The setout area used for collection of solid waste containers (in square feet).

The amount of time that the area is used.

The market value for use of the public right-of-way (in dollars per square foot).

The number of solid waste subscribers setting out collection containers in the public right-ofway.

Using these values, we calculated the market value for the Contractor’s use of and special right to encroach upon government property in the City.

Variables, Estimates and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection containers, usually carts with wheels and lids, with one each for garbage, recycling, and organics waste streams. The setout area needed for placement of these containers is inclusive of the width of each container (typically two feet) as well as minimum required space between the containers and other objects such as cars (minimum of two feet between containers and five feet between containers and other objects per Contractor’s guidance documents - https://marinsanitaryservice.com/residential/).

Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 8 of 10 The set-out area also takes up available parking space and is thus assumed to extend six feet out from the curb. Taken altogether, the area for residential setouts is calculated as three containers that are each two feet wide, plus two feet between each container and other objects, for a total area fourteen feet wide times six feet in depth. The result is 84 square feet of setout area used for collection of solid waste containers in residential areas.

The amount of area used for commercial setouts (in this Study, use of the term commercial also always includes multi-family) can vary widely, as there is no standard commercial subscription size profile – each commercial solid waste subscriber can select from a range of container sizes, with most of them being larger than the containers used in residential areas. Given this complexity, this Study assumes that the average commercial setout area is twice that of the residential setout area for 168 square feet.

Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential containers are set out the evening prior to collection and are removed from the public right-ofway the following afternoon. Thus, for the purposes of this Study, we assume that collection containers are in the public right-of-way for an average of 18 hours per day, one day per week, which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by 7 days per week).1
Commercial solid waste subscription setout times can vary widely – just as there is no standard commercial subscription size profile, likewise there is no standard collection frequency.

Commercial solid waste subscribers can select collection frequency between once and six times per week, and with different frequencies for different waste streams. Given this complexity, this Study assumes that the average commercial collection frequently is twice weekly, for 21.42% of the time. As with the setout area, this estimate is likely lower than the average commercial collection frequency and is therefore conservative.

Market Value for Use of Public Right-of-Way
The City’s “Streatery” Program established a use charge for the use of the public-right-of way of $3,600 annually. That amount is for the use of an area equivalent to one parking space, which the typical parking space being 24 feet wide by 8 feet deep for an area of 192 square feet. Therefore, the City’s established annual use charge for the use of the public right-of-way is $3,600 divided by 192, for a resultant $18.75 per square foot. Other cities in the Bay Area have also established use charges for use of the public right-ofway, like the City’s program.

Other Marin County communities including Fairfax, Larkspur, and San Anselmo also have similar use charges, as do other communities including Healdsburg, Oakland, Torrance, and Windsor. The minimum annual use charge per square foot in these communities is $5.21 (Fairfax and Oakland) and the largest is $30.00 (Windsor). The 1 Section 9.19.130 of the City’s Municipal Code permits collection containers “to be placed in public view and on a public street, sidewalk or footpath only during the forty-eight-hour period commencing at 12:01 a.m. on the day preceding the day of scheduled pick-up and terminating at 12:01 a.m. on the day following such pick-up.” Since this Study presumes that containers, on average, are only set out for 18 hours, rather than 48, it conservatively estimates the actual usage of and encroachment on the public right-of-way to be less than what is legally permitted.

Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 9 of 10 average annual per square foot use charge, including the City, is $15.67. To be conservative in our calculations, we use the average annual value of $15.67 per square foot rather than the higher City-specific value of $18.75. The Streatery Program fees are a good metric for the value of the special and lasting use of the public right-of-way because they establish the amount that businesses are willing to pay for this use.

R3 also researched rental charges for paved parking spaces in the region of the City. The average rental value of the paved parking spaces was $22.86 per square foot per year. Had R3 used the average rental value of paved parking spaces of $22.86 in calculating the reasonable market value for the use of the public right-of-way in this analysis, the resulting annual franchise fee would have been 65% greater than the amounts calculated by this Study.

Number of Subscriptions Setting Out Containers
The Contractor reports that there are 12,385 residential and 2,529 commercial solid waste service subscribers in the City. However, not all subscribers set out their containers in the public right-of-way for collection all the time. To account for non-setouts (either because subscribers don’t have waste materials to set out or because they receive on-premises service) we assume that only 90% of residential solid waste subscribers set out containers on a regular basis, for a resulting total of 11,146 average residential setouts. It is also understood that most commercial subscribers do not set out containers in the public right-of-way, and therefore we conservatively assume that only 5% of commercial subscribers set out containers on a regular basis, for a resulting total of 126 average commercial setouts.

Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates and assumptions from the prior section is a function of multiplication, as shown in Table 4, on the following page.

Methodology and Calculations
City of San Rafael | Solid Waste Costs and Property Use Charge Study Report – 2026 Update 10 of 10 Table 4 – Calculation of Total Annual Property Use Charges CY 2024 Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 84 SF 168 SF
Setout Time Usage 10.71% 21.42%
Annual Use Charge $15.67 per SF $15.67 per SF
Number of Setouts 11,146 126
Total Annual Property
Use Charges $1,571,000 $71,000 $1,642,000
Based on this analysis, the estimated FY 2025-26 market value for Contractor’s use of the public right-of-way is $1,642,000.

As an alternative to curbside collection, the Contractor offers on-property service to residential accounts at a monthly charge of $7.27 per cart, per direction (pulled out from and then on to property) per month. If the 11,146 residential setouts (90% of residential accounts) shown in Table 4 were to all subscribe to on-property service, the additional cost would be $5,835,000 per year ($7.27 per cart per direction per month, times 2 for pulling out from and on to property, times 3 carts per account, times 12 months, times 11,146 accounts) and that does not account for the fact that the Contractor’s on-property service rate is not structured to be applicable to all accounts.

If the Contractor were to collect all solid waste containers via on-property service, there would be substantial impacts to operational efficiency that could result in far greater costs than the $5,835,000 in additional fees. Thus, the $1,642,000 Franchise Fee for the Contractor’s special right to use and encroach upon the public right-of-way is far less than it would cost the Contractor to collect the containers without the right to encroach, and therefore, is a reasonable estimate of the value of the right-of-way to the Contractor.

Exhibit B - Cost of Service Fee and Franchise Fee Amounts The City adopts the Cost of Service Fee and Franchise Fee set forth below. Amounts shown are annual calendar year figures effective January 1, 2026, through December 31, 2026.

Cost of Service Fee - $1,913,000
Franchise Fee - $1,216,000
As authorized by Resolution No. 15355, effective January 1, 2027, and annually every January 1st thereafter, the Cost of Service Fee and the Franchise Fee shall be automatically adjusted in proportion to the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area (U.S. Bureau of Labor Statistics series ID: CUURS49BSA0).
1 RESOLUTION NO.

A RESOLUTION OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE FRANCHISE AGREEMENT WITH MARIN SANITARY

SERVICE TO REQUIRE STREET SWEEPING SERVICES, AND TO CLARIFY AUTHORIZATION

TO ENCROACH UPON PUBLIC RIGHT-OF-WAY, AND FOR THE CITY TO IMPOSE A FEE FOR

RIGHT OF ENCROACHMENT
WHEREAS, the City of San Rafael and Marin Sanitary Service have entered into an “Amendment and Restatement of Collection Agreement of the City of San Rafael and Marin Sanitary Service,” dated September 4, 2001 and amended by a written first amendment dated March 1, 2005, a written second amendment dated November 14, 2012, a written third amendment dated February 25, 2019, a written fourth amendment dated November 29, 2022 and a written fifth amendment approved by the City Council on November 4, 2024 (hereafter the “Franchise Agreement”); and
WHEREAS, the City of San Rafael and Marin Sanitary Service now desire a sixth amendment to the Franchise Agreement to update Marin Sanitary Service services to include street sweeping services for City residents and businesses, and WHEREAS, the City of San Rafael has determined that such an amendment is proper, in the best interest of all citizens, and will promote public health, safety, and welfare; and WHEREAS, Marin Sanitary Service’s additional costs for street sweeping services are separate from and not duplicative of the City’s costs for street sweeping services included in the Cost of Service Fee imposed on Company by City pursuant to the terms of the Agreement; and WHEREAS, the City and Marin Sanitary Service desire to make certain adjustments to the Agreement’s authorization for the City to adopt and impose a Franchise Fee for Marin Sanitary Service’s special and unique right to use and encroach upon the public right-of-way for the placement of collection containers for the provision of solid waste services; and WHEREAS, the City and Marin Sanitary Service desire to clarify that the Franchise Fee imposed by the City on Marin Sanitary Service is imposed for the exclusive and special right and license to use and encroach upon the public right-of-way for the purpose of placing its collection containers for collection services; and
WHEREAS, on April 20, 2026, the City Council held a duly noticed public hearing to consider the rate application request and receive public testimony thereon; and WHEREAS, the City Council has reviewed and duly considered the Staff Report, documents, and other oral and written evidence presented at the hearing. 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AS FOLLOWS:
1) The “Sixth Amendment to the Amendment and Restatement of Collection Agreement of the City of San Rafael with Marin Sanitary Service” attached hereto as "Exhibit A” and incorporated herein by reference, is hereby approved and shall be included as part of the Amendment and Restatement of Collection Agreement dated September 4, 2001. The City Manager is hereby authorized to execute the Sixth Amendment, subject to final approval as to form by the City Attorney.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
__________________________
LINDSAY LARA, City Clerk

SIXTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

Page 1 ends

THIS SIXTH AMENDMENT to the Amendment and Restatement of Collection Agreement of the City of San Rafael (City) with Marin Sanitary Service (Company) is made and entered into this __ day of ___________, 2026.

WHEREAS, the City and Company entered into a written agreement on September 4, 2001, as amended on March 1, 2005, November 14, 2012, December 17, 2018, December 6, 2021, and November 18, 2024 (together the “Agreement”) pursuant to which the Company renders Solid Waste, Recyclable Material and Green Waste collection, processing and disposal services to businesses, residents and government institutions in the City; and
WHEREAS, the City conducts street sweeping in residential, commercial and mixed-use areas, which are currently insufficient to meet the demand of street sweeping services necessary to ensure that refuse does not enter the storm drains; and
WHEREAS, the Company provided the City with a proposal to provide Residential Street Sweeping services dated January 28, 2026 quoting $8,0148.13 in monthly costs to provide residential street sweeping services during calendar year 2026; and
WHEREAS, the City and Company now desire to add Residential Street Sweeping to the suite of services provided by the Company to allow for the City to increase street sweeping services in commercial and industrial areas; and
WHEREAS, a change in compensation to the Company is necessary and warranted to compensate the Company for provision of Residential Street Sweeping Services; and WHEREAS, these additional costs for street sweeping services are separate from and not duplicative of the City’s costs for street sweeping services included in the Cost of Service Fee imposed on Company by City pursuant to the terms of the Agreement; and
WHEREAS, the City and Company have met in good faith to develop the terms, conditions, and compensation for provision of the Residential Street Sweeping Services; and NOW THEREFORE, it is mutually agreed as follows:

1. Section 1. Definitions, shall be amended to add:
“Residential Street Sweeping” means provision of monthly street sweeping on residential streets in the City.

2. Section 3. Services, Rate Setting and Rates, Equipment, shall be amended to add:
(F) Compensation Adjustment for Residential Street Sweeping:

Exhibit A

SIXTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

Page 2 ends

(1) 2026 Adjustment to Compensation for Residential Street Sweeping. Company’s compensation shall include a new line titled “Residential Street Sweeping Provided by Collector” with the 2026 compensation amount being the 2026 monthly compensation amount $8,048.17 (inclusive of profit margin) times seven (7) months for Residential Street Sweeping Services from June through December 2026.
(2) Annual Adjustment to Compensation for Residential Street Sweeping. Starting January 1, 2027 and annually thereafter, Company’s monthly compensation via “Residential Street Sweeping Provided by Collector” shall be adjusted annually from the prior year by the percentage change in the Consumer Price Index for Water and Sewer and Trash Collection, U.S. city average, Bureau of Labor Statistics Series I.D. CUSR0000SEHG, subject to a minimum increase of 2.5% and a maximum increase of 5.0%. The percentage change is calculated by dividing the Index value for June of the current year by the Index value for June of the prior year, rounded to the nearest hundredth of a percent.

3. Exhibit A - Description of Services, is amended to include the services described in Attachment 1 to this Sixth Amendment, titled “City of San Rafael Street Sweeping Proposal” dated January 28, 2026.

4. Exhibit B – Collector’s Rate Revenue Requirement and Rate Adjustment, is amended as follows:

Section II.B.9. Forecasted Franchise Fees Expense, is replaced in its entirety as follows:

City and Company agree that Company will pay City a franchise fee for the value of City property used by Company to provide solid waste-related services. The Franchise Fee for use of City property shall be in an amount determined by the parties to reflect the reasonable value of City property used in Company’s provision of solid waste-related services and for Company’s purposes and/or responsibilities under this agreement. Pursuant to this Agreement and the City’s Municipal Code, Company has been granted an exclusive and special right and license to use and encroach upon the public right-of-way for the purpose of placing its collection containers for collection services. The Franchise Fee shall not exceed the reasonable market value of Contractor’s exclusive and special right to use and encroach upon the public right-ofway. For calendar year 2025 the parties have determined, based on available data, that the value of the City property used by Company for the provision of solid waste-related services shall not exceed $ 1,474,000. The parties further agree that the reasonable market value of the City property will increase annually in proportion to the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco Bay Area (U.S.

Bureau of Labor Statistics series ID: CUURS49BSA0). City may set the franchise fee, by ordinance or resolution, at any amount equal to or less than the reasonable market value of the City property, as determined by the parties and set forth in this agreement.

SIXTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

Page 3 ends

5. City and Company agree and acknowledge that, except as explicitly modified by this Amendment, the Agreement remains in full force and effect.

SIXTH AMENDMENT TO THE

AMENDMENT AND RESTATEMENT OF COLLECTION AGREEMENT

OF THE CITY OF SAN RAFAEL WITH MARIN SANITARY SERVICE

Page 4 ends

IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment the day and year first above written.

Date (month, day and year) Date (month, day and year)
Marin Sanitary Service City of San Rafael
By: By:

President City Manager
By: By:

Secretary City Clerk
APPROVED AS TO FORM:

By:

City Attorney
1 1/2 /2026

CITY OF SAN RAFAEL

STREET SWEEPING PROPOSAL
Attachment 1 to 6th Amendment to Franchise Agreement
2 1/2 /2026
Overview
MARIN SANITARY SERVICE is pleased to submit a proposal for residential street sweeping services in the City of San Rafael. For decades we have been proud partners with San Rafael for solid waste collection and our neighboring communities to provide street sweeping services by executing the highest quality of service to our customers with consistent reliability, flexibility, and professionalism.

Contractor Identification:

Name: MARIN SANITARY SERVICE
Address: 1050 Andersen Drive, San Rafael, CA 94901
Contacts: Justin Wilcock Director of General Operations [email protected]
Phone: 415-755-9528 cell
Magda Loczi Senior Business Development Manager
[email protected]
Phone: 707-361-0450 cell
24/7 Emergency Contact:

Justin Wilcock
Mobile (707) 303-0033
Tax ID: 94-1520192
3 1/2 /2026
Marin Sanitary Service has a fleet of three sweeping trucks to cover the companys current sweeping commitments and provide sweeping service at company facilities. For the City of San Rafael services, the company will be using a recently leased new truck. The company uses a Tymco 600 air sweeper with two rotating brooms and a vacuum system. Unlike other sweeper trucks with either a main broom or a vacuum the regenerative air system dislodges debris, is directed to the central suction hose and the air is then recirculated avoiding a dusty exhaust system. This results in a more effective cleaning without polluting exhaust. This truck, along with the other available trucks in the fleet will ensure that the company is able to provide consistent services without interruption due to equipment failure.

All routing for the company is communicated through a mobile tablet system. This can also help ensure the most efficient routing using RouteSmart software. The company intends to complete the scope of work with one driver assigned to the San Rafael sweeping route. We aim to optimize street sweeper routing for San Rafael with this software in the future. 4 1/2 /2026
Marin Sanitary Service will manage disposal of material collected during the street sweeping process.

The costs for disposal are equal to the general debris disposal rate which is listed in the table below.

All driver costs are accounted for in the proposed labor allocation. Marin Sanitary Service has a current collective bargaining agreement with the Teamsters local No. 665. As such all wages paid are at or above prevailing wages prescribed by the California Labor Relations Board.

This cost proposal does not anticipate needing many additional hours beyond the proposed hours for any time throughout the year. This is based on the request to provide street sweeping for residential areas only. If the amount of sweeping needed during any time exceeds regular hours, Marin Sanitary reserves the right to charge for the number of extra hours required to complete the job.

City of San Rafael
Annual / Monthly Cost Rates
Line Item Rate # per month Cost per month
# of
months Total annual cost
Hourly cost $ 203.75 39.5 $8,048.13 12 $96,577.56
Dumping cost $
OT cost $ 242.65 As needed As needed 12 As needed
Emergency cost $ 281.55 As needed As needed 12 As needed Total Cost $8048.13* $ , 77.56* *Total Cost Based an estimated total hours and tons. Actual total cost will depend on actual tons received.

The hourly sweeping rate will be adjusted annually from the prior year by the percentage change in the Consumer Price Index for Water and Sewer and Trash Collection, U.S. city average, Bureau of Labor Statistics Series I.D. CUSR0000SEHG, subject to a minimum increase of 2.5% and a maximum increase of 5.0%. The percentage change is calculated by dividing the Index value for June of the current year by the Index value for June of the prior year, rounded to the nearest hundredth of a percent.
12 5 1/2 /2026
MARIN SANITARY SERVICE has been in business for more than 75 years providing top-tier waste management planning for residential and commercial customers throughout Marin County and surrounding areas.

Starting out as scavengers in San Francisco, Marin Sanitary Service began when the Garbarino family joined forces with several other Italian families to start a new garbage service. MSS currently serves over 33,000 residential and commercial accounts. You can still find three generations of the Garbarino family working at MSS.

Marin Sanitary Service is known as innovators of the waste management industry. According to Rosalie Mule of the California Integrated Waste Management Board, our operations have served as a model for both the state and the nation, keeping us at the forefront of the movement to reduce, reuse, and recycle, and end waste as we know it today.
Besides providing solid waste collection, recycling, resource recovery, shredding services, and household hazardous waste disposal, Marin Sanitary Service also currently provides street sweeping services to the City of Novato, Town of Ross, Town of Fairfax, Larkspur and unincorporated areas throughout Marin County.

Marin Sanitary uses RouteSmart and SoftPak software programs including system route maps, tablets, customer service and dispatch teams to provide real-time tracking of services provided by street address. In addition, we utilize a mobile application called ReCollect for scheduling and notifying customers of their sweeping day.

Marin Sanitary Service prides itself on the quality of work provided to its customers. From friendliness, trustworthiness, and reliability to top-notch communication anticipating the needs of our customers, we are confident there is no better choice.
6 1/2 /2026
BELOW IS A LIST OF THREE (3) PROJECTS COMPLETED BY MSS WITHING THE PAST FIVE (5) YEARS

INVOLVING CALIFORNIA MUNICIPALITIES
1) City of Larkspur Street Sweeping Services (172 tons collected annually) a. Residential and Commercial Street Sweeping Services
b. Scheduled sweeping services including streets, medians, storm drain. c. Weekly sweeping
d. City of Larkspur, CA
e. 1996-present
2) Town of Ross Street Sweeping Services (49 tons collected annually) a. Residential and Commercial Street Sweeping Services
b. Scheduled street sweeping
c. Weekly sweeping
d. Town of Ross, CA
e. 1996-present
3) Town of Fairfax Street Sweeping Services (44 tons collected annually) a. Commercial Street Sweeping
b. Scheduled sweeping in core commercial downtown
c. Weekly sweeping
d. Downtown Fairfax
e. 2022-present (MSS has held contracts with the Town of Fairfax going back to 2008) 7 1/2 /2026
Please feel free to contact any of our existing Street Sweeping client references.

CONTACT
NAME

TITLE ORGANIZATION ADDRESS PHONE PROJECT
1 Dan
Schwartz
City
Manager
City of
Larkspur
400 Magnolia Ave.

Larkspur, CA 94939
(415) 927-5110 Street
Sweeping
2 Christa
Johnson
Town
Manager
Town of Ross 31 Sir Francis Drake Blvd
Ross, CA 94957
(415) 453-1453
ext. 107
Street
Sweeping
3 Loren
Umbertis
Public
Works
Director
Town of
Fairfax
142 Bolinas Rd
Fairfax, CA 94930 (415) 453-1584
Street
Sweeping
4 Emily
Warne
Public
Works
City of Novato 922 Machin Avenue
Novato, CA 94945 (415) 899-8952
Street
Sweeping
8 ~ S~ Se/Ul«e
CONSERVATION - OUR EARTH. OUR MISSION, OUR JOB
Conclusion
We look forward to working with the City of San Rafael to provide street sweeping services. We are confident we will exceed the city's expectations to deliver on a promise of excellence as we have shown consistently with our current street sweeping customers.

Marin Sanitary Service is ready to serve the City of San Rafael by providing the technical expertise, manpower and highest level of customer service required for the job every step of the way.

If you have questions on this proposal, feel free to contact me at your convenience by email at [email protected] or by mobile phone at (707) 361-0450. We are happy to address any concerns and look forward to serving you.

Thank you for your consideration,
Magda Loczi
Senior Business Development Manager
1/28/2026
REPORT
City of San Rafael
Submitted electronically on October 22, 2020
submitted electronically: March 31, 2026
Review of Marin Sanitary Service’s
2026 Rate Application
r) ::2._.. CONSULTING GROUP, INC.

K_____.-1 RESOURCES· RESPECT· RESPONSIBILITY
450 14th Street, Suite 350, Oakland, CA 94612 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com March 31, 2026
Mr. Paul Navazio
Interim City Manager
City of San Rafael
submitted via email: [email protected]
SUBJECT: Report – Review of Marin Sanitary Service’s 2026 Rate Application Dear Mr. Navazio,
R3 Consulting Group, Inc. (R3) is pleased to submit this report detailing the results of our review of Marin Sanitary Service’s (MSS’s) 2026 rate application for the City of San Rafael.

This review was conducted pursuant to R3’s engagement with the seven agencies (Agencies) served by MSS, including the City of San Rafael, City of Larkspur, County of Marin, Las Gallinas Valley Sanitary District, Town of Ross, Town of Fairfax, and the Town of San Anselmo.

This report summarizes results from our review of MSS’s 2026 indexed rate application per the streamlined rate setting methodology established in 2019. The methodology is described in the amended Exhibit B to the Franchise Agreement that the City holds with MSS. * * * * *
We appreciate the opportunity to be of service to the City. If you have any questions regarding this report or need additional information, please contact me via the information below.

Sincerely,
Garth Schultz | Principal
R3 Consulting Group, Inc.
510.292.0853 | [email protected]

1. FINDINGS
City of San Rafael | Review of MSS’s 2026 Rate Application Page 1 of 4 Executive Summary
On August 29, 2025, MSS submitted its application for annual compensation adjustment, effective January 1, 2026. This is an indexed year rate adjustment, which primarily projects compensation due to MSS based on the applicable Water-Sewer-Trash CPI Index (WST). Based on our review of the rate application, R3 concurs with MSS’s calculated 2026 rate revenue requirement of $31,431,863, which is less than the 2025 rate revenue requirement of $31,895,957. No adjustment to solid waste rates is necessary in 2026 to meet the calculated rate revenue requirement. The $464,094 surplus in 2026 projected rate revenues compared to the 2026 revenue requirement will be carried forward to the 2028 compensation adjustment application and will offset the 2028 rate adjustment, as per Exhibit B, Section II.B.10.d of the Franchise Agreement. That provision establishes that surplus rate revenues are applied to offset future years rate adjustments, and therefore surplus revenues serve as rate stabilization reserves.

Table 1: 2026 Rate Adjustment Summary
Compensation Category 2025 2026 Dollar
Change
Percentage
Change
Adjustment
to Rates
Collector Operations $19,086,959 $20,643,241 $1,556,282 8.15% 4.88% Garbage Landfilling and
Organics Processing $3,182,484 $3,403,540 $221,056 6.95% 0.69% SB 1383 Compliance $224,558 $221,634 -$2,924 -1.30% -0.01% Illegal Dumping Program $571,291 -$59,925 -$631,216 -110.49% -1.98% Profit Calculation $2,421,219 $2,541,223 $120,004 4.96% 0.38% Recyclable Materials Processing $660,900 $433,034 -$227,866 -34.48% -0.71% Interest $434,061 $455,765 $21,704 5.00% 0.07%
Zero Waste Marin Fees $287,781 $371,915 $84,134 29.24% 0.26% Franchise Fees $3,161,401 $3,129,000 $407,548 -1.02% -0.10% Other Agency Fees $1,480,601 $0 -$1,480,601 -100.00% -4.64% Annual Rate Revenue
Reconciliation $281,947 $140,840 -$141,107 -50.05% -0.44% Recycling Property Insurance $102,755 $95,260 -$7,495 -7.29% -0.02% Street Sweeping $0 $56,337 $56,337 N/A 0.18%
Total Annual Rate Revenue
Requirement $31,895,957 $31,431,863 $464,094 N/A -1.46% City of San Rafael | Review of MSS’s 2026 Rate Application Page 2 of 4 2026 Rate Adjustment Details
Collector Operations
Collector Operations compensates MSS for labor, benefits, general and administrative, depreciation and lease, maintenance, fuel and oil. Per Exhibit B, compensation for Collector Operations is adjusted using the CPI index for Water and Sewer and Trash Collection. R3 used publicly available Bureau of Labor Statistics data to verify the calculated increase of 5.0% to Collector Operations. Per Exhibit B, the rate adjustment is subject to a 2.5% minimum and a 5% maximum rate cap for MSS’s collection operations.

The value for 2026 also includes a $162,078 increase for the Illegal Dumping Program (as per agreed upon compensation changes for the phasing-in of the Program from 2025 through 2027 per the Fifth Amendment to Agreement) as well as a placeholder $160,000 reduction due to Illegal Dumping Program funds that were not spent in 2025 (and which will be fully reconciled in 2026 and any remainder credited to the 2027 rate application).

The result is $20,643,241 in Collector Operations for the City of San Rafael in 2026, which is an increase of $1,556,282 compared to 2025.

Garbage and Organics Tipping Fees
Garbage Landfilling and Organics Processing tipping fee projections are calculated using actual tonnages collected from January 1 through June 30, 2025, which are then annualized to project total 2025 tonnages. Those tonnages are then multiplied by the projected 2026 tipping fees calculated in accordance with Exhibit B. This is based on the actual per ton tipping fees for each waste stream category, or if unavailable, projected tipping fees are calculated using the current year per ton tipping fees escalated by the change in WST— subject to a minimum increase of 2.5% and a maximum increase of

5.0%.

R3 reviewed MSS’s projected 2025 tons and the 2026 per ton tipping fees for residential garbage, residential green waste/organics, commercial garbage, commercial mixed waste for processing, commercial food scraps, and MSS-served Agencies’ waste delivered to MSS. Per Exhibit B, R3 confirmed that MSS correctly projected tons by category using annualized actual tons for the first six months of the current rate year and, as actual tipping fees are unavailable, applied the 5.0% WST adjustment to project 2026 per ton tip fees. The result is $3,403,540 in Garbage and Organics Tipping fees for the City in 2026, which is an increase of $221,056 compared to 2025.

Compliance with SB 1383
MSS is requesting continued revenue in association with SB 1383 with the goal of increasing compliance with the State of California’s organics state mandate(s). The company will continue to provide compliance monitoring and inspection services, contamination monitoring, outreach and education, and reporting functions on behalf of the City. The 2026 revenue recovery for these new SB 1383 compliance measures for MSS in the City is $221,634, a decrease of $2,924 from 2025.

Illegal Dumping Program Funding
Since 2020, the City had been piloting and testing programs to reduce and abate incidences of illegal dumping in the City, in partnership with MSS and others. In 2025, the City allocated $571,291 for the illegal dumping pilot program. In 2025, the City incorporated the illegal dumping program as an on-going program (no longer a pilot program) via the execution of the Fifth Amendment to the Agreement. That action resulted in ongoing funding of the illegal dumping program being included in Collector Operations.

The $59,925 credit to this category in 2026 is simply to recognize that some 2025 illegal dumping pilot program funds were not spent and therefore are a credit to the 2026 rate application. This category will no longer be present starting in 2027 since the illegal dumping program will remain part of Collector Compensation.

City of San Rafael | Review of MSS’s 2026 Rate Application Page 3 of 4 Profit Calculation
R3 reviewed the calculation of MSS’s profit, which is a function of total allowable operating expenses of $24,208,489 for the City, divided by the contractually set operating ratio of 90.5% and subtracting the same sum, rounded to the nearest dollar. MSS’s actual profit achievement will vary depending on the company’s real revenues and expenses; as such, profit is not guaranteed. The result is $2,541,223 in Calculated Profit for the City in 2026, which is an increase of $120,004 compared to 2025. The increase is due to increases in allowable operating expenses, which were described in the previous sections of this report.

Recyclable Materials Processing
A net recyclable materials processing cost is calculated each year to share the risks and rewards of changing recycling markets between rate payers and MSS. Per Exhibit B, the Recyclable Materials Processing cost is escalated by the annual change in the WST and that amount is then divided by the number of all tons of recyclable materials processed at Marin Recycling Center from July 1 of the prior rate year through June 30 of the current rate year.

The recyclable materials revenue amount is calculated based on 90% of the total revenue received by the Marin Recycling Center for recyclable materials, which is then divided by the number recyclable material tons processed at Marin Recycling Center. The calculation does not include income or tons from recyclable materials processed for third parties or agencies that were not customers of MSS or the Marin Recycling Center as of December 31, 2018. For Rate Year 2026, the resulting Net Recyclable Materials Processing Cost Per Ton is $49.64, a decrease of $23.94 from the 2025 value of $73.58. The primary driver of this change is that CRV is now collected on wine and spirit containers. The result is $433,034 in Recyclable Materials Processing costs for the City in 2026, which is a decrease of $227,866 from 2025.

Interest
Interest is based on MSS’s actual interest from its loan amortization schedules for actual and projected capital expenditures for services under the Agreement as of the last base year review in 2019. This is increased in the same manner as Collector Operations, as described above, via WST annually.

The result is $455,765 in interest for the City in 2026, which is an increase of $21,704 compared to 2025.

Zero Waste Marin Fees
Zero Waste Marin Fees are set as a pass-through as government fees and, per Exhibit B to the agreements, changes in such fees result in appropriate adjustments to rates to compensate MSS for increases or decreases in such fees. Zero Waste Marin fees included in the annual indexed rate applications for the MSS service area are set to be equal to the current Zero Waste Marin Fee assessments for the current fiscal year, with 100% of the MSS hauler fees passed through to the MSS Agencies, and with none of the MSS Transfer Station fees passed through to the MSS Agencies. The result is $371,915 in Zero Waste Marin Fees for the City in 2026, which is an increase of $84,134 compared to 2025. The increase is due to expiration of grant funding from CalRecycle.

Cost of Service and Franchise Fee
The City’s Cost of Service Fee is set by the City to cost the City’s costs associated with management and administration of the Agreement with MSS and the solid waste utility. The Franchise Fee is established via agreement of the City and MSS and for the value of City property used by MSS in collection operations. Taken together, the Cost of Service Fee and Franchise Fee amount to $3,129,000 in 2026.

This is a reduction of $32,401 compared to 2025.

City of San Rafael | Review of MSS’s 2026 Rate Application Page 4 of 4 Other Agency Fees
Other Agency Fees are calculated and applied to each of the Agencies based on the specific fees set by those Agencies. No Other Agency Fees are including the 2026 compensation and rate application for the City.

Annual Rate Revenue Reconciliation
The Rate Revenue Reconciliation item serves to reconcile the projected rate revenue from the 2024 rate adjustment to the actual revenue collected through rates charged during the 2024 rate year. MSS experienced a shortfall of $140,840 in 2024 billed revenues in the City compared to the 2024 revenue requirement. That amount is therefore included in the 2026 rate application as line item contributing towards the total 2026 revenue requirement. The $140,840 amount of rate revenue reconciliation from 2024 and applicable to 2026 is a reduction compared to the $281,947 from 2023 that was applicable to the 2025 revenue requirement. Therefore, the overall impact to the 2026 revenue requirement is a decrease of $141,107, reducing the overall 2026 rate adjustment by 0.44%.

Recycling Property Insurance
Property insurance for recycling processing facilities has gone up across the country due to due to fire risks from lithium batteries. MSS has had no such claims but had previously received premium increases based on its risk profile. MSS has previously and separately briefed the Agencies on this item, and R3 is aware of the market circumstances surrounding it. R3 finds that this extraordinary item is supported and reasonable. The result is $95,260 in Recycling Property Insurance for the City in 2026, which is a decrease of $7,495 compared to 2025.

Street Sweeping
The City has requested that MSS provide residential street sweeping funded in the solid waste rates. The 2026 compensation application includes $56,337 in street sweeping costs, accounting for 7 months of residential street sweeping service starting in June 2026 at a cost of $8,048.13 per month. The inclusion of this cost is contingent on City Council authorization of a 6th Amendment to the Agreement for MSS to begin providing this service.
____________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 3.b
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: Cory Bytof, Sustainability Program
Manager
City Manager Approval: __________
TOPIC: SOLID WASTE COLLECTION CODE AMENDMENTS ORDINANCE SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 9.19, ENTITLED “SOLID WASTE COLLECTION AND DISPOSAL AND EDIBLE FOOD RECOVERY,” CHAPTER 11.04, ENTITLED “ENCROACHMENTS IN THE PUBLIC RIGHT-OF-WAY,” AND CHAPTER 12.260, ENTITLED
“INTERNATIONAL PROPERTY MAINTENANCE CODE AMENDMENTS” OF THE SAN RAFAEL MUNICIPAL CODE; CEQA DETERMINATION: EXEMPT PURSUANT TO CEQA GUIDELINE 15061(B)(3)
RECOMMENDATION:

Staff recommends that the City Council introduce an ordinance amending Chapter 9.19, entitled “Solid Waste Collection and Disposal and Edible Food Recovery,” Chapter 11.04, entitled “Encroachments in the Public Right-Of-Way,” and Chapter 12.260, entitled “International Property Maintenance Code Amendments” of the San Rafael Municipal Code, waive further reading and refer to it by title only.

BACKGROUND:

Marin Sanitary Service is the City’s sole refuse provider and provides garbage, recycling, and organic materials collection for all residents and businesses in San Rafael, as well as for several other jurisdictions in Marin. The City has a Franchise Agreement with Marin Sanitary Service that sets forth the terms of the agreement, the services they provide, and how rates are calculated and adjusted periodically.

Over the years, refuse service has transitioned from being garbage-based to a model based on recycling and organics processing with the intention of reducing materials going to landfill. Increasingly, this includes organic materials such as yard and food waste, which release a potent greenhouse gas (methane) during decomposition. Senate Bill 1383 was passed by the State Legislature in 2016, requiring local jurisdictions and waste haulers to capture and divert organic materials from landfills. In addition, residents are allowed to place bulky items curbside for collection.

The San Rafael Municipal Code (SRMC) regulates refuse-related activities that allow for certain collection intervals, establish requirements for refuse collection, and establish rules for the prevention of litter and refuse entering the environment and storm drain system.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:

These increased recycling and diversion efforts, collection activities, and related legislation have resulted in more carts, containers, debris boxes, and materials being placed in the City's right-of-way for collection.

Marin Sanitary Service employs automated collection vehicles to service these various containers.

Materials and containers need to be accessible to Marin Sanitary Service collection vehicles and staff, with allowances for enough space between carts for automated service, as well as for time frames that accommodate resident and business needs and flexibility. Furthermore, Marin Sanitary Service has customer regulations that stipulate spacing requirements for container collection. These protocols result in efficiencies that reduce costs for service and help keep rates consistent with other service providers in the Bay Area. The proposed Code amendments address this by aligning the space requirements for two feet between containers with Marin Sanitary Service requirements and allowing up to 48 hours for collection.

In addition, the proposed Code amendments allow the company to have exclusive encroachment permit entitlements under the Code, rather than having to secure permits from the City on a parcel-by-parcel basis. Parcel-based encroachment permits are more appropriate for single-issue or single-event purposes, such as placing a large dumpster on the street during a construction project or staging heavy equipment adjacent to a property for maintenance work.

Other changes are also proposed to match current practices. One change specifies that Marin Sanitary Service is responsible for costs related to the cleanup of debris that arises from refuse service-related activities. Another change clarifies that, consistent with the Franchise Agreement and current practice, charges for solid waste services are determined and imposed by Marin Sanitary Service and authorized by the City pursuant to the terms of the Franchise Agreement. Finally, these Code revisions remove the City's authority to impose a lien or otherwise compel a customer to reimburse Marin Sanitary Service for costs related to refuse service, whether by legal or financial means. These changes reflect historic practice and establish more clearly defined relationships between customers, the company, and the City.

ENVIRONMENTAL REVIEW:

It has been determined that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to 14 CCR Section 15061(b)(3) of the State CEQA Guidelines, because it can be seen with certainty that there is no possibility that the adoption of this Ordinance or its implementation would have a significant effect on the environment.

FISCAL IMPACT:

These changes, if adopted, would not result in any direct changes to the City’s General Fund.

RECOMMENDED ACTION:

OPTIONS

1. Introduce the ordinance as presented

2. Introduce the ordinance with amendments

3. Don’t introduce the ordinance and direct staff to return with more information ATTACHMENTS:

1. Ordinance Amending Solid Waste Provisions
1 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 9.19, ENTITLED “SOLID WASTE COLLECTION AND DISPOSAL AND EDIBLE FOOD RECOVERY,” CHAPTER 11.04, ENTITLED “ENCROACHMENTS IN THE PUBLIC RIGHT-OF-WAY,” AND CHAPTER 12.260, ENTITLED
“INTERNATIONAL PROPERTY MAINTENANCE CODE AMENDMENTS” OF THE

SAN RAFAEL MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. FINDINGS.

WHEREAS, the City of San Rafael (“City”) desires to update the San Rafael Municipal Code (“SRMC”) provisions regarding the City’s solid waste collection and disposal and edible food recovery; and
WHEREAS, the California Integrated Waste Management Act of 1989 (commencing with Section 40000 of the Public Resources Code) requires local governments to engage in integrated waste management planning to substantially reduce waste through source reduction, reuse and recycling, in turn lessening the amount of waste deposited in landfills.

WHEREAS, the City’s current solid waste collection and disposal and edible food recovery requirements are contained in SRMC, Chapter 9.19, entitled “Solid Waste Collection and Disposal and Edible Food Recovery.”
WHEREAS, the City Council desires to amend or repeal various provisions in SRMC, Chapter 9.19, regarding the City’s solid waste collection and disposal and edible food recovery system to bring the provisions in line with current City practices and state law; and
WHEREAS, the City Council desires to amend provisions of SRMC, Chapter

11.04, in order to make it consistent with Chapter 9.19 of the City’s Municipal Code.

WHEREAS, the City Council desires to repeal Section 308.3.2 of the 2024 International Property Maintenance Code, set forth in Section 12.260.020 of the SRMC, in order to make it consistent with Section 9.19.130 of the SRMC.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:
2 DIVISION 2. Sections 9.19.070(B), 9.19.280, 9.19.310, 9.19.360, 9.19.370, and 9.19.380 of Chapter 9.19 of Title 9 of the Municipal Code of the City of San Rafael are hereby amended or modified as follows, with additions shown in underline and deletions shown in strikethrough:

Section 9.19.070 – Obligation of Solid Waste Collection Service.

A. Except as otherwise provided by this chapter, all occupied premises shall subscribe for solid waste collection service with the authorized collector as herein specified, and for such service a charge shall be collected as per a schedule of maximum rates as shall be set by resolution of the city council.

B. Every property owner, commercial generator, residential generator, or other organic material generator within the city shall have the obligation for disposal of solid waste as provided in this chapter through the designated authorized collector and shall pay the authorized collector for the solid waste collection service at the rates provided therefor. Failure of receipt of a bill does not obviate responsibility for payment. In each instance, the property owner shall be primarily responsible for the payment of the charges provided for herein. The city or authorized collector may cause a lien to be placed upon the real property for failure to compensate the authorized collector for services rendered.

C. Generators shall arrange for a size, quantity and collection frequency of containers to adequately store all solid waste generated in connection with the premises, and subject to collection in garbage containers, recycling containers and organics containers, between the times designated for collection service. The city shall have the right to review the number, size and location of such collection containers to evaluate the adequacy, capacity and collection frequency of containers for each type of collection service and to review the source separation and containment of materials. Generators shall adjust the size of containers, number of containers and/or collection frequency for their collection services as requested by the city in order to meet the standards set forth in this chapter.

D. Generators shall place source separated organic materials, including food waste, in the organics container; place source separated recyclable materials in the recycling container; and place garbage in the garbage container. The city and authorized collector shall have the right to promulgate changes to material types acceptable for each type of collection container. Generators shall not place prohibited container contaminants into the garbage container, organics container or recycling container.

E. The authorized collector shall give written notice to the city manager of the address of any occupied premises within the city which is not subscribing to the collection and disposal service provided by the authorized collector.

F. The owner of each occupied premises shall subscribe for solid waste disposal services within seven (7) days of the occupancy of the premises. If the owner fails to 3 subscribe for service, the authorized collector shall give the owner written notification that such service is required.

G. Generators shall provide or arrange for access during all inspections and investigations (with the exception of the interior of a private residential dwelling unit) and cooperate with the city manager or authorized collector during such inspections and investigations as described in Section 9.19.390.

Section 9.19.280 – Exclusive right.

A. The award of a contract hereunder shall grant the authorized collector during the term of the contract the exclusive right to collect, transport and dispose of all solid waste collected within the city except as otherwise expressly provided in this chapter; provided further, however, that debris box service for construction and temporary cleanup purposes may be provided by persons other than the authorized collector.

B. The award of a contract hereunder shall grant the authorized collector the exclusive right and license to encroach upon public streets, sidewalks, footpaths, and public right-of-ways for the purpose of placing solid waste collection containers for solid waste collection services, during the forty-eight-hour period commencing at 12:01 a.m. on the day preceding the day of scheduled pick-up and terminating at 12:01 a.m. on the day following such pick-up. The City may impose a fee on the authorized collector for the value of this exclusive and special right and license to encroach.

Section 9.19.310 – Regulations.

A. Except as otherwise permitted by this chapter, and except for self-hauling which is not in lieu of regular weekly service, it is unlawful for any person to collect or carry solid waste through the streets of the city without first having entered a contract or obtained a permit from the city to do so.

B. The authorized collector shall not permit any solid waste to fall or remain on any public street or private premises in the city, shall close all gates used by it in collection service, and shall operate as quietly as the circumstances allow. The authorized collector shall be responsible for all costs, whether incurred by the City or the authorized collector, associated with retrieving solid waste that has fallen on public streets or public or private premises in the city.

C. Collection and transportation equipment shall be maintained and utilized consistent with CCR, Sections 17341 through 17345.

D. The authorized collector shall further abide by all applicable laws and the regulations and orders of the county health department or officer, and ordinances and general regulations of the city, now or hereafter adopted.
4 Section 9.19.360 – Charge for service.

A charge shall be collected by the authorized collector at maximum rates to be established between the city and by the authorized collector, and approved by the City., t The maximum rates are to be subject to change upon approval or amendment of an agreement between the city and the authorized collector. The property owner is responsible for all charges for solid waste removal, including recyclable materials. The maximum rates shall provide to the authorized collector a fair and reasonable compensation and return.

Section 9.19.370 – Payment of rates.

It is unlawful for any person to refuse to pay the rates fixed for the collection of solid waste.

Nonpayment of rates imposed by the authorized collector may result in cessation of service, a violation punishable by law, and/or a lien against the property. It is unlawful for any person to dispose of solid waste, from premises owned, occupied or leased by them, other than by and through the authorized collector, except as provided in this chapter.

Section 9.19.380 – Disputed rates.

Section 9.9.380 is hereby repealed and deleted in its entirety.

DIVISION 3. Sections 11.04.020 and 11.04.030.020 of Chapter 11.04 of Title 11 of the Municipal Code of the City of San Rafael is hereby amended or modified as follows, with additions shown in underline and deletions shown in strikethrough:

Section 11.04.020 – Definitions.

For purposes of this chapter, certain terms are defined as follows:

A. "City" means the city of San Rafael.

B. "Director" means the director of public works of the city or his or her designee.

C. "Encroach" or "encroachment" includes going upon, over or under a public rightof-way, or using a public right-of-way or a public or private area adjacent to a public right-of-way in such a manner as to prevent, obstruct or interfere with the intended use of that way, or a modification of its mode of use, including but not limited to excavation or disturbance; erection, construction, placement or maintenance of any physical improvement thereon or thereunder; planting or maintaining any landscaping; or placement or maintenance of any waste material or containers containing waste material, except the placement of solid waste or recyclables in authorized receptacles for pick-up in accordance with Chapter 9.19 of this code.

D. "Landscaping" means any tree, shrub, grass, groundcover, plant, hedge, ornamental boulder, solid landscape feature or growing thing. 5 E. "Major continuing encroachment" means an encroachment by a property owner into the public right-of-way adjacent to his or her property, which is intended and permitted to continue for an indefinite period of time, and which serves or provides a benefit to the city or the public generally, such as, for example, the provision of off-street parking in an area where such parking is inadequate, the provision or protection of a public accessway, or the promotion of the city's economic vitality or beautification. Major continuing encroachments may include, but shall not be limited to, the following:

1. Fences or walls higher than three feet (3') above natural grade which provide protection to a public street or pedestrian walking path;

2. Abutments for driveways and stairs where reasonably necessary to provide access to the public right-of-way;

3. Ground water monitoring wells.

F. "Minor continuing encroachment" means an encroachment which is intended and permitted to continue for an indefinite period of time, but which by its nature is limited in size, scale or use so that the encroachment will have little or no impact on the public health, safety or welfare, and shall include, but not be limited to, the following:

1. Flat or low-level improvements/landscaping adjacent to city streets or pedestrian walking paths, including but not limited to low-level plants and shrubs, landscape walls and fences less than three feet (3') in height, a private postal box on a post, boulders, concrete and other flatwork;

2. Bicycle racks;

3. Newspaper racks;

4. Awnings, signs, eaves or other minor architectural features of buildings extending more than four feet (4') into the public right-of-way;

5. Other minor improvements which the director determines will not inconvenience or jeopardize the city management or use of the public rightof-way.

G. "Minor encroachment permit" means an encroachment permit issued pursuant to this chapter to authorize a temporary encroachment or a minor continuing encroachment as defined herein.

H. "Moratorium street" mean any portions of the public right-of-way that were constructed or resurfaced during the five (5) year period prior to the proposed excavation and any portions of the public right of way that have been constructed or resurfaced more than five (5) years before the proposed excavation, provided that the right-of-way has a pavement condition index of seventy (70) or higher as described in the city's pavement management program and as defined in City Resolution 12371.
6 I. "Permittee" means any person, utility or special district that has been issued a minor encroachment permit, revocable license agreement, or utility/special district encroachment permit pursuant to this chapter or their successor in interest.

J. "Person" means any natural person, firm, joint venture, joint stock company, partnership, association, club, company, corporation, business trust, organization, or the manager, lessee, agent, servant, officer or employee of any of them or any other entity which is recognized by law as the subject of rights or duties, not including the city of San Rafael, the San Rafael Successor Agency, or their officers, employees or agents.

K. "Public right-of-way" means land which by written instrument, usage or process of law is owned by, reserved for or dedicated to the public use for street or highway purposes, or other transportation purposes, whether or not such land is actually being used or developed specifically for those purposes.

L. "Public street" means the portion of the public right-of-way of any road, street, pedestrian walking path, or alley used by or for the general public for travel purposes, including sidewalks and areas between sidewalks and the vehicular traveled way, whether or not those roads, streets, pedestrian walking paths, and alleys have been accepted as and declared to be part of the city system of public streets, except streets forming a part of the state highway system or county roads or expressways.

M. "Revocable license agreement" means a separate agreement as required by Section 11.04.050 of this chapter, between the city and the property owner stipulating the use of public right-of-way utilized by a property owner, such as, for example, the encroachment of a structure or retaining wall into the public right of way which is to be maintained by the property owner.

N. "Special district" means any public agency that has been created for the local performance of governmental or proprietary functions within limited boundaries.

O. "Street cut" means the action or result of opening, tearing up, excavating, removing or constructing any portion of any roadway, street or thoroughfare, sidewalk, driveway, curb or gutter, or any other facility existing within the public right-of-way area, for any purpose whatsoever within the jurisdiction of the city.

P. "Structure" means any physical alteration or improvement, including but not limited to a building, post, cabinet, fence, vault, sign, pole, guard rail, wall, facility, pedestrian walking path, sidewalk, driveway, track, surfacing, culvert, drainage facility, pipe, embankment or excavation.

Q. "Temporary encroachment" means an encroachment which is intended to continue for a specified, limited period of time, not to exceed one (1) year, and shall include, but not be limited to, the following:

1. 1.Debris boxes;

2. Scaffoldings;
7 3. Tree trimming by private property owners or their contractors;

4. Closure for limited periods of time of public streets, driveways or public areas not under control of the state or the county;

5. Closure for limited periods of time of public sidewalks;

6. Painting/washing of building exteriors adjacent to the public right-of-way or public street;

7. Construction required for installation of sidewalks, driveway approaches, curbs and gutters, including underdrains, underground facilities, and sewer laterals;

8. Temporary construction fencing;

9. Painting of address numbers on curbs.

R. "Utility" means any entity providing electricity, gas, cable, video programming, telephone, telecommunications or other services to customers, and which pursuant to state law or local franchise is entitled to install its facilities in the public rights-of-way.

S. "Utility/special district encroachment" means any encroachment by a utility or special district.

T. "Waste material" means any rubbish, brush, earth or other material of any nature which is unused, unwanted or discarded, including any garbage, recyclable materials, solid waste and yard waste as defined in Chapter 9.19.

Section 11.04.030.020 – Exceptions to permit requirement.

Notwithstanding Section 11.04.030.010 above, no permit or license shall be required pursuant to this chapter for any of the following:

A. The actions of any officer or employee of the city engaged in the discharge of official duties.

B. The performance of work under contracts to the city, including work for city projects.

C. Encroachments existing prior to the effective date of this chapter; provided, however, that nothing in this chapter shall preclude the director from requiring an appropriate encroachment permit for or removal of any such preexisting encroachment where the director determines the encroachment adversely affects the safety, capacity or integrity of the city's right-of-way.

D. Maintenance or repair of existing pipes, facilities, conduits or other structures lawfully on or under a public right-of-way by a utility or special district, where such maintenance or repair work will not affect traffic in an arterial street.

E. Performing the actual emergency street cut or excavation in the public right-of-way by a utility or special district to repair a broken or defective pipe, facility or conduit lawfully on or under any public street, as may be necessary for the preservation of 8 life and property when an urgent necessity therefore arises and the offices of the city are closed, provided that reasonable vehicular and pedestrian barriers or other traffic controls shall be provided during the performance of any such repairs. The utility or special district performing the repair work shall notify the city's public works department by telephone at the time any such repair work is commenced and apply for an encroachment permit retroactively as specified in Section 11.04.060 of the Municipal Code for each emergency location within seventy-two (72) hours of performing the work. The utility shall pay all encroachment permit fees for emergency work as described by the latest schedule of fees developed by the city and described herein.

F. Tree work, including but not limited to planting, trimming, or removal of any new or existing tree within the public right-of-way where a permit has been issued for such work pursuant to Chapter 11.12, and no traffic lane closure is anticipated.

G. Sidewalk cafes and restaurants, which shall be governed by the provisions and requirements of this code for outdoor dining license agreements.

H. Street closures for special events specifically approved by the city council.

I. Awnings, signs, eaves or other minor architectural features of buildings extending no more than four feet (4') into the public right-of-way; provided that nothing herein shall authorize the placement of signs directly on any street or the right-of-way.

J. In the downtown zoning districts where buildings are permitted to be constructed to the property line (see Title 14, Zoning), no license agreement is required for bay windows, balconies and projecting awnings provided that these architectural features: 1) are approved through design review; 2) extend no more than four feet (4') into the public right-of-way; 3) are designed to provide adequate vertical clearance from the street grade; and 4) do not obstruct or impair above-ground utilities, street lights or street signals. A permit may be required for construction activities.

K. The placement of solid waste, recyclables, or organic waste in collection containers for pick-up in or on any public street, sidewalk, footpath, or any public place whatsoever, pursuant to the authorized collector’s exclusive and special right and license to encroach on the public right-of-way, during the forty-eight-hour period commencing at 12:01 a.m. on the day preceding the day of scheduled pick-up and terminating at 12:01 a.m. on the day following such pick-up, in accordance with Chapter 9.19 of this code.

DIVISION 4. Section 12.260.020 of Chapter 12.260 of Title 12 of the Municipal Code of the City of San Rafael is hereby amended or modified as follows:

Section 12.260.020 – Amendments.
9 The 2021 International Property Maintenance Code is amended or modified as follows:

Section 308.3.2 is repealed and deleted in its entirety.

DIVISION 5. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to 14 CCR Section 15061(b)(3) of the State CEQA Guidelines, because it can be seen with certainty that there is no possibility that the adoption of this Ordinance or its implementation would have a significant effect on the environment.

DIVISION 6. SEVERABILITY.

If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of San Rafael hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases shall be declared invalid.

DIVISION 7. EFFECTIVE DATE; PUBLICATION.

A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted.

This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk a certified copy of the full text of this Ordinance, along with the names of those Councilmembers voting for or against the Ordinance.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 20th day of April 2026, and was passed and adopted at a regular meeting of the San Rafael City Council on the 4th day of May 2026 by the following vote, to wit:
10 AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_______________
Kate Colin, Mayor
Attest:
______________________
LINDSAY LARA, City Clerk
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 4.a
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller, Public Works Director
City Manager Approval: __________
TOPIC: APPROVAL OF MEASURE AA EXPENDITURE PLAN
SUBJECT: RESOLUTION APPROVING THE TRANSPORTATION AUTHORITY OF MARIN (TAM) MEASURE AA AMENDED EXPENDITURE PLAN ADOPTED BY TAM ON MARCH 26, 2026
RECOMMENDATION:

Staff recommends that the City Council approve the amended Measure AA Expenditure Plan (Attachment 3), as adopted by the Transportation Authority of Marin (TAM) Board on March 26, 2026.

BACKGROUND:

The Transportation Authority of Marin (TAM) is the congestion management agency and transportation sales tax authority of Marin. TAM is an independent agency, and the TAM Board is composed of one elected official (councilperson) from every town and city in Marin and all five members of the Board of Supervisors. Marin County voters established TAM to support transportation infrastructure projects, programs, funding, and planning efforts. TAM manages the Marin ½-Cent Transportation Sales tax, the Marin Vehicle Registration Fee, and coordinates other regional, state, and federal funding sources for transportation improvements throughout the County.

On June 18, 2018, the San Rafael City Council accepted TAM's presentation and adopted a resolution approving the Final Transportation Sales Tax Renewal Expenditure Plan.

On November 6, 2018, Marin voters approved Measure AA (76.7%) to renew and extend Measure A, the countywide ½-Cent Transportation Sales Tax. The Measure AA Expenditure Plan (“Expenditure Plan”) funds core transportation needs, including local streets and roads, Safe Routes to Schools, transit services, and highway improvements. Measure AA generates approximately $35 million annually, and since 2004, the ½-Cent Transportation Sales Tax has generated over $500 million in funding for Marin’s transportation needs.

Measure AA requires the Expenditure Plan to be reviewed every six years to ensure funding reflects evolving transportation needs, community priorities, and emerging challenges.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:

Transportation funding is dynamic, and the past six years since Measure AA was approved have seen significant changes, including a global pandemic, the rise of work-from-home, shifts in the transit network, and shifting regional, state, and federal funding frameworks.

Measure AA Funding Support to San Rafael
Measure AA supports the city’s annual Capital Improvement Program (CIP) in a variety of ways. These funds support transportation projects and pavement projects in the CIP. The Measure AA expenditure plan is approved annually by the City Council. The Fiscal Year 2025-20 allocation was approved at the September 15, 2025 City Council meeting.

Expenditure Plan Review Process
As a new requirement in the 2018 Measure AA Expenditure Plan, this review is the first of its kind. TAM staff began the expenditure plan review in October 2024 and included extensive public outreach and agency coordination with funding recipients, including public works directors, local agency management, and advisory committees. Outreach included over 30 meetings with stakeholders, working groups, and community members, as well as pop-up public engagement events held throughout Marin County. TAM staff have held multiple Board discussions on the process and have convened an ad hoc committee of TAM board members to guide the review and development of the recommended Expenditure Plan amendments.

Specific Milestones include:
• October 2024 – the TAM Board approved the process and schedule for the Measure AA Expenditure Plan Review.
• April 2025 – the TAM Board was briefed on the initial findings after discussions with recipients of the measure, including public works directors and transit operators, and the Ad Hoc Committee. These discussions focused on what has worked well and what changes should be considered in the measure. During these meetings, TAM staff were requested to consider changes to multiple plan categories, including providing funding for large local roadway projects. • July 2025 – the TAM Board received an update on financial projections for Measure AA revenue, and a discussion on the idea of a “Reimagined Roadways” category to address project development of major roadway projects funded through a funding shift within the local roads category of the measure. The Board also received an update on the financial forecasts for the crossing guard program and public outreach process.
• September 2025 – based on the July discussion, feedback from public outreach, and Ad Hoc Committee input, an initial discussion on proposed amendments to the Expenditure Plan was presented to the TAM Board for input and discussion.
• December 2025 – an informational item was presented to the TAM Board to summarize the final proposed changes to the Expenditure Plan and provide greater details of those changes to each affected category of the Expenditure Plan. Feedback from the TAM Board was heard and further considered for incorporation.
• January 2026 – The TAM board presented draft amendments to the expenditure plan and opened a 45-day public comment period.
• March 2026 – At the conclusion of the 45-day comment period, the TAM board authorized the Amended Expenditure Plan included as Attachment B.

In addition to the Board discussions, staff conducted multiple meetings for input and coordination with the following agencies and advisory groups:
• Marin Public Works Association
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
• TAM Community Oversight Committee (COC)
• TAM Bicycle/Pedestrian Advisory Committee
• TAM Technical Advisory Working Group
• TAM Equity Working Group
• TAM/MMA Subcommittee
• TAM Measure AA Expenditure Plan Review Ad Hoc Committee Summary of Proposed Amendments
Approximately 95% of Measure AA funding remains unchanged, with updates to approximately 5% based on input from the public and partner agencies to improve flexibility in addressing local transportation needs, closing funding gaps, and responding to emerging transportation needs, while maintaining the intent of the voter-approved measure.

The proposed changes are as follows:
• Funding for five crossing guards – Measure AA provides dedicated ongoing funding for crossing guards in Marin County. The crossing guard program's annual operations currently exceed annual revenues, and additional revenue is needed to maintain the 96 guards identified in the Measure AA Expenditure plan. TAM has instituted several cost reductions for the program, and the increase in ongoing revenues will help maintain five guarded locations in the county. TAM is also providing additional one-time funding outside of the Measure AA amendments to maintain guards in the field.
• Funds for “Reimagined Roadways” category – To respond to requests from local jurisdictions, the expenditure plan amendment includes dedicated funding to advance project development on major roadways and intersections, for which no dedicated measure funds currently exist. Under the previous expenditure plan (Measure A), local road improvements were funded through local formula funding, enabling TAM and local agencies to address infrastructure needs in these corridors.
• Funds for local road improvements – The measure continues to provide ~$5.8 million/year to jurisdictions for local streets and roads from TAM in addition to ~$22 million/year for roadway maintenance from other funding sources. Clarified that roadway elements, which include integrated environmental protections and mitigation, are an eligible use of this funding. • Maintains current project development process for Interchange program - the amendment to the measure maintains the current project development process for interchange improvements, providing ongoing funding for project development of key interchange improvements on US 101. • Additional amendments – the remaining amendments do not directly impact funding and include updating program eligibility and administrative provisions, specifically: changes to eligible recipients in two categories (sea level rise, and ferries & regional transit), COC membership (allows TAM Board to add members from underrepresented groups), and frequency of future reviews (to align timing with required reviews for the Vehicle Registration Fee, Measure B).

TAM Adopted Amendments to the Expenditure Plan
The following process must approve amendments to the expenditure plan:
• A two-thirds vote of the TAM Board following a public hearing and 45-day public comment period; and
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
• Approval by a majority of jurisdictions representing a majority of the incorporated population, as well as approval by the Board of Supervisors.

On January 22, 2026, the TAM Board opened a 45-day public comment period on the proposed amendments. A public hearing was held on March 26, 2026, after which the TAM Board adopted the following amendments:

Additional information about Measure AA and the review process is also available on TAM’s website at:
https://www.tam.ca.gov/funding/measure-a-renewal/. Also, please refer to the Measure AA Amended Expenditure Plan Fact Sheet (Attachment 4) for additional information.

City Council approval of the proposed resolution aligns with the City’s FY 2025-2028 Strategic Plan, specifically Goal B.1: Develop and maintain an integrated, multimodal transportation network that serves users effectively and safely.

FISCAL IMPACT:

There is no fiscal impact associated with this item. Future Measure AA allocations will be approved via a funding agreement with TAM.

OPTIONS:

The City Council has the following options to consider in this matter:

1. Adopt the resolution as presented.

2. Do not adopt the resolution and provide direction to staff.

Categories with Amendments
2018
EP
Rev
EP Amendments to the Expenditure Plan
Category 1.3 Local Interchanges 3.0% 2.5% Reduction of 0.5%.

Category 2.1 Local
Transportation Infrastructure 22.0% 18.0%
Provide funding for new Category 2.4 and clarified
eligibility to include roadway elements that integrate
environmental protections and mitigations.

Category 2.3 Sea Level Rise 1.0% 1.0%
Change eligible recipients to include TAM and
remove the call for projects requirement.

Category 2.4 Innovative
Technology 0.5% 0.0%
The program was removed to provide funding for
new Reimagined Roadways.

Category 2.4 Reimagined
Roadway 0.0% 4.5%
New Category. Maintain 0.5% from 2.4 plus 4% from
Category 2.1.

Category 3.2 Crossing Guard
Program 7.0% 7.5%
Add 0.5% from Category 1.3, Revise language to
specify the number of guards rather than the number
of sites/locations.

Category 4.6 Ferries and
Regional Transit 0.5% 0.5%
Change eligible recipients and broaden to First/Last
Mile at Major Transit Stops.

COC Membership
Align with the language in Measure B Expenditure
Plan.

Review Timeline
Align with Measure B Expenditure Plan for
concurrent review processes.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
RECOMMENDED ACTION:

Staff recommends that the City Council approve the amended Measure AA Expenditure Plan (Attachment 3), as adopted by the Transportation Authority of Marin (TAM) Board on March 26, 2026.

ATTACHMENTS:

1. Resolution

2. TAM Presentation

3. Amended Expenditure Plan

4. Measure AA Amended Expenditure Plan Fact Sheet
RESOLUTION NO.

RESOLUTION APPROVING THE TRANSPORTATION AUTHORITY OF MARIN (TAM) MEASURE AA AMENDED EXPENDITURE PLAN ADOPTED BY TAM ON MARCH 26, 2026 WHEREAS, the Transportation Authority of Marin (TAM) serves as the congestion management agency and transportation sales tax authority for Marin County, responsible for planning, funding, and delivering transportation programs and infrastructure improvements countywide; and WHEREAS, Marin County voters approved Measure AA on November 6, 2018, renewing and extending the ½‑cent transportation sales tax and establishing the Measure AA Expenditure Plan (“Expenditure Plan”) to fund local streets and roads, transit services, Safe Routes to Schools, and related transportation improvements; and
WHEREAS, Measure AA requires that the Expenditure Plan be reviewed and updated every six years to reflect evolving transportation needs, community priorities, and emerging challenges; and WHEREAS, beginning in October 2024, TAM undertook a comprehensive review of the Expenditure Plan, including coordination with local jurisdictions, advisory committees, public works directors, and community stakeholders, along with extensive public outreach and multiple presentations to the TAM Board; and
WHEREAS, on January 22, 2026, TAM released proposed amendments to the Expenditure Plan for a 45‑day public comment period followed by a duly noticed public hearing; and WHEREAS, on March 26, 2026, following the close of the public comment period, the TAM Board adopted amendments to the Expenditure Plan, including modifications to several expenditure categories, creation of a new “Reimagined Roadways” category, adjustments to the Crossing Guard Program, and updates to eligibility provisions and future review timelines; and WHEREAS, the Measure AA Expenditure Plan amendments must also be approved by a majority of Marin jurisdictions representing a majority of the incorporated population, in addition to the Marin County Board of Supervisors; and
WHEREAS, the City of San Rafael receives significant benefit from Measure AA revenues, helping support local roadway maintenance, multimodal improvements, Safe Routes to Schools programming, and transit services.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael hereby approves the Transportation Authority of Marin Amended Measure AA Expenditure Plan as adopted by the TAM Board on March 26, 2026.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 20th day of April 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
______________________
Lindsay Lara, City Clerk
Transportation Authority of Marin
Measure AA Expenditure Plan Amendments
April 7, 2026
Presentation to [JURISDICTION]
2 TAM is the…
• Congestion Management Agency (CMA)
• Transportation Sales Tax Authority (2004 Measure A, 2018 Measure AA) • Vehicle Registration Fee Authority (2010 Measure B)
Who we are…
• 16-member Board of Commissioners – all five County Supervisors, plus one representative from each city/town
• Community Oversight Committee (COC)
• Staff of 14
Transportation Authority of Marin
3 What is Measure AA?
$35 M*
• ½ -cent Sales Tax dedicated to Transportation
• Measure A in 2004, Renewed as Measure AA in
2018
• Strong public support for overall framework –

76.7% voter approval
• Measure AA and TAM support:
• Improvements to Highways
• Local Roadways
• Safe Routes to Schools and Crossing Guards
• Local Transit Services
4 • Marin as a “Self Help” County
• Measure AA leverages regional, state and federal funds • Works along with Measure B to Address Countywide Priorities • Partner feedback
• Public Works – Flexible funding helpful
• Marin Transit – Measure AA vitally important
• Safe Routes – Highly visible programs
How Measure AA Supports Marin’s Needs
Sales Tax
47%
Vehicle
Registration Fee
3%
Investment
Earnings
6%
Project and
Program
Revenues
44%
FY 25/26 TAM Revenues
5 As stated in the Measure AA 2018 Expenditure Plan:
“To keep pace with the changing world of transportation, the TAM Board of Commissioners will review the Expenditure Plan every six years to consider amendments”
• Extensive process over last 18 months to seek input from Board, partners, program managers & the public
• Review included:
• Feedback from all Measure AA recipients
• Public Outreach & Community Group Discussions
• CTP Alignment Review
• Financial Projections
• Travel Trends & Forecasts
• Good Governance Review
Measure AA – Six Year Review
6 Expenditure Plan Review Schedule
Collection of Measure AA Revenue Commenced April 1, 2019 TAM Board Approves Expenditure Plan Review Process and Timeline October 24, 2024 Expenditure Plan in Effect for Six Years March 31, 2025 Public Outreach Process April-December 2025
Present Draft Amended Expenditure Plan to TAM Executive Committee and Board September-December 2025
TAM Board Opens 45-day comment period/hearing for any changes proposed January 2026
45-day Comment Period Closes March 9, 2026
TAM Board Adopts Amended Measure AA Expenditure Plan March 2026 Present Amended Expenditure Plan to Cities, Towns, and County for Approval April/May 2026
Identify Expenditure Plan changes in TAM FY2026-27 Budget Process April-June 2026 Measure AA Expenditure Plan Review Schedule
We are here
7 Summer 2025 Public Outreach Effort
Ongoing Partner/Advisory Outreach
• TAM Community Oversight Committee
• TAM Bicycle/Pedestrian Advisory Committee
• TAM Technical Advisory Working Group
• TAM Equity Working Group
• Marin Public Works Association
• TAM/MMA Subcommittee
• TAM Measure AA Expenditure Plan Review Ad Hoc Committee • Public Comment Period January 29 - March 9
• Comments received: Newt Brigade supporters (230+) and opposition; MCOE; Marin Transit; Town of Ross
• City/Town Council Presentations – April/May
Public Outreach Summary
West Marin Dot Exercise
8 • No changes proposed to 95% of Measure AA funding
• Strategic changes proposed to 5% of Measure AA to respond to input received Summary of Proposed Measure AA Amendments
2018 Proposed EXPENDITURE PLAN AMENDMENTS
Category 1.3 Local Interchanges 3.0% 2.5% Reallocate 0.5% to support the Crossing Guard Program Category 2.1 Local Transportation
Infrastructure 22.0% 18.0%
Provide funding for new Category 2.4 and clarified eligibility to include roadway elements that integrate environmental
protections and mitigations.

Category 2.3 Sea Level Rise 1.0% 1.0%
Change eligible recipients to include TAM and remove call for projects requirement
Category 2.4 Innovative Technology 0.5% 0.0%

0.5% remains in Category 2.4 but reallocated to Reimagined Roadways from Innovative Technology
Category 2.4 Reimagined Roadway 0.0% 4.5%
New Category. Maintain 0.5% from Category 2.4 plus 4% from Category 2.1
Category 3.2 Crossing Guard
Program 7.0% 7.5%

0.5% from Category 1.3, Revise language to specify number of guards rather than number of locations
Category 4.6 Ferries and Regional
Transit 0.5% 0.5%
Change eligible recipients and broaden to First/Last Mile at Major Transit Stops
Additional Changes
COC Membership Align with Measure B
Review Timeline Align with Measure B for concurrent review processes 9 Amended to increase funds from 7% to 7.5%
• Program is 7% of Measure AA (increase from 4.2% in
Measure A)
• Program currently provides 96 guards at 96 locations
• Operational program - annual ongoing revenues needed
• Program exceeds annual revenue collection requiring
use of carryover
• Current revenue supports ~68 guards
• Expense reduction measures were implemented this cycle • Board approved use of one-time funding to shore up program in 2026, in combination with potential Measure AA increase • 0.5% increase will allow TAM to maintain 5 Guards
• Staff continues to pursue other funding sources
Category 3.2 Crossing Guards
10 Amended to include new program at 4.5% from
Category 2.1 and 2.4
• Background:
• Prior Major Roads funding from Measure A supported corridors throughout county; no similar program in Measure AA
• Public Works and Board Requests to address Major Road needs
• Current TAM has no dedicated funding for Major Roads
• Current Proposal:
• Get larger capital roadway projects “Shovel Ready”
• Focus on multi-jurisdiction, multi-agency, and multi-modal project development
• Advance CTP goals and strategies
• Support for innovation within Measure programs, rather than standalone program
New Category 2.4 – Reimagined Roadways
11 • Measure A Major Road Category:
• 13.25% for Local Transportation Infrastructure plus
• 13.25% for Major Roads ($38M in revenue collected from Measure A) • Funds distributed through 5 planning areas, delivering 9 projects Previous Measure A – Major Roads Background
Planning Area Jurisdiction Project
Measure A/AA
($M)
Project Cost
($M)
North Novato Novato Blvd./Diablo Ave. (Phase in Progress) $13.3 $15.0 Central San Rafael 4th Street $4.5 $5.5
San Rafael 3rd Street $13.0 $20.0
Southern Mill Valley Miller Ave. $10.3 $18.3
Mill Valley E. Blithedale Ave. $2.3 $3.7
Ross Valley Marin County Sir Francis Drake Blvd. US 101 - Wolfe Grade $7.2 $11.4 Marin County
Sir Francis Drake Blvd. Wolfe Grade - Ross
Limit $7.2 $11.4
West Marin County
Sir Francis Drake Blvd. Samuel P. Taylor -
Platform Bridge $5.8 $8.1
Marin County
Sir Francis Drake Blvd. Fairfax Limit - Samuel
P. Taylor $0.8 $2.1
Total $64.3 $95.5
12 Category 2004
(Meas. A)
2018
(Meas. AA)
2026 Proposed
(Meas. AA Rev.)
Local Streets & Roads 13.25% 22% 18%
Major Roads 13.25% 0%* 4.5%*
* Does not include off-the-top percent needed to fully fund 2004 commitments, anticipated to be approx. $2.35M/year until 2032
Local/Major Roads Funding History
• Measure AA funds now complemented by state funds
• Currently no dedicated funding source for advancing larger capital projects • Marin County has highest PCI in North Bay
• Proposed changes expected to have minimal impact on PCI 11,910,321
11,370,691
6,528,669
FY 24/25 Local Road Funds- All
Jurisdictions
State Gas Tax SB1 Supplement Measure AA
13 • Amended to provide 4% of funding to Category 2.4
• Strategic Plan change to offset funding shift for 2.1 • Double allocation” for FY26/27 – TAM will provide
funding in arrears and move to a reimbursement
processes, making two years’ of funding available
• Discussed with Public Works staff, support for
standardized project accounting & one-time additional
funding distribution
• Offsets funding shift from Measure AA amendment for
several years
• Eligibility Clarification for funds in this category: roadway components that include integrated environmental
protections and mitigations are eligible use of funds
Category 2.1 Local Transportation Infrastructure
Estimated Available Amount
FY 25/26*
FY 26/27
Est. Reim**
FY 26/27
Est. Double
Allocation
Belvedere $69,558 $55,652 $125,210
Corte Madera $263,615 $210,915 $474,530
Fairfax $198,145 $158,534 $356,679
Larkspur $291,883 $233,533 $525,416
Mill Valley $394,035 $315,264 $709,299
Novato $1,282,710 $1,026,284 $2,308,994
Ross $70,201 $56,167 $126,368
San Anselmo $317,375 $253,929 $571,304
San Rafael $1,417,855 $1,134,412 $2,552,267
Sausalito $196,284 $157,045 $353,329
Tiburon $241,760 $193,430 $435,190
County $2,409,225 $1,927,598 $4,336,823
Total Available $7,152,646 $5,722,763 $12,875,409
*based on 22% of collected FY 25/26 Measure AA Funding plus carryovers **based on 18% of projected FY 26/27 Measure AA funding 14 • Align Timeline of Measure AA and B Reviews
• Currently: Measure AA review is every 6 years, Measure B review is every 10 years • Aligning allows for a broader view of Local Funds, and increased efficiency in conducting reviews together • Conduct next review in 6 years, followed by 8-year review cycle • COC Membership Changes to Align Measure AA and B Language • Category 2.3 Sea Level Rise
• Identify TAM as an eligible recipient and remove call for project language • Category 4.6 Ferries and Regional Transit
• Identify TAM and Marin Transit as eligible recipients and broaden focus to all Major Transit Stops (i.e., SMART and Ferry Stations)
Measure AA Exp Plan – Additional Changes
15 To amend the Measure AA Expenditure Plan:
• Vote/approve by two-thirds of the TAM Commissioners (scheduled March 26, 2026) • Amendments to be presented to each of the cities and towns in Marin County and to the Board of Supervisors for their approval (scheduled for April/May) • Requiring a majority vote of 50+% of the cities or towns, representing 50+% of the incorporated population
• As well as a majority vote of the Board of Supervisors • Action requested to approve the Amended Expenditure Plan as approved by the TAM Board on March 26, 2026
Action Request for Local Jurisdictions
16 Questions and Discussion
TAM Staff thanks our partners, interested parties and the public for their participation and valuable insights during this review process.
1 of 3
Measure AA Expenditure Plan
Amendment #1
March 26, 2026 (adopted), July 1, 2026 (effective date) Pursuant to the actions of the participating jurisdictions and the TAM Board of Commissioners as defined by the Measure AA Expenditure Plan approved by the voters of Marin County in November 2018, the following amendments to said Expenditure Plan are hereby incorporated into the Expenditure Plan effective XXXXXXXX.

CATEGORY 1 (Change in funding distribution)

The following change in funding distribution shall supersede previous funding distribution language:

Percentage of Sales Tax Funds equal to 7% 6.5% of the total collected net of existing obligations and administration to be used in Category 1, with 3% 2.5% dedicated to “Improve Highway 101 local interchanges and freeway access routes to reduce congestion, improve local traffic flow, and address flooding impacts throughout the county.”
CATEGORY 2 (Multiple Changes)
The following change in funding distribution shall supersede previous funding distribution language:

Percentage of Sales Tax Funds equal to 22% 18% of the total collected net of existing obligations and administration to be dedicated to “Maintain and manage local roads to provide safe and wellmaintained streets for all users. All investments will consider the needs of all users in accordance with local practices (i.e. “Complete Streets” practices) that have been adopted in each city, town, and the County. Improvements to maximize the efficiency, effectiveness, and resiliency of our transportation system to be determined by local jurisdictions and may include:
• Paving, reconstruction, roadway repair, drainage, lighting, landscaping, and other roadways system components including integrated environmental protections and mitigations. • Bike lanes and paths
• Safe pathways to transit and bus stop improvements
• System enhancements to accommodate new technologies such as signal coordination, real time information
• Investments to address congestion on local street and road corridors • Facilities and support including project management, technical services and outreach to support alternative fuel vehicles, electric vehicles, zero emission vehicles and autonomous vehicles
• Municipal fleet conversion to alternative fuel vehicles including electric vehicles • Improvements to address sea level rise and flooding on local streets 2 of 3
The following change in description shall supersede all previous language:

Sea Level Rise and Resiliency
Marin’s transportation infrastructure is sited along vulnerable bay frontage that is at increasing risk of flooding and erosion from sea level rise and king tide events. This funding would be utilized to support protecting and adapting Marin’s roadways and related infrastructure to the effects of sea level rise and flooding. These funds can be used to serve as seed money to find solutions, attract matching grants and leverage private investments to meet the challenges and vulnerabilities identified in numerous planning efforts including those of Bay Wave, and CSMART. The funds can also be utilized for facilities to support alternative fuel vehicles including electric vehicles. Sea Level Rise and Resiliency funds shall be available to TAM and to eligible recipients including local jurisdictions through a process defined by TAM.

The following change in funding distribution and description related to Innovation Technology shall be deleted and replaced with:

Percentage of Sales Tax Funds equal to 4.5% of the total collected net of existing obligations and administration to be dedicated to “Reimagined Roadways: Provide planning and project development activities for large roadway capital projects.”
Description: “With traffic and land use changes in Marin County, there is a growing need to advance large roadway capital projects, specifically roadway corridors or intersections, to support multijurisdictional travel and multiple modes of travel. This category would support the identification and planning of roadway projects of countywide significance. The funds would be used by TAM to advance prioritized projects through the initial project delivery phases and compete for construction funding.

TAM would work with local jurisdictions to determine corridor needs in alignment with the Countywide Transportation Plan (CTP) and the ability to leverage outside grants from regional, state or federal funding sources.”
CATEGORY 3 (Change in funding distribution)
The following change in funding distribution shall supersede previous funding distribution language:

Percentage of Sales Tax Funds equal to 11.5% 12.0% of the total collected net of existing obligations and administration to be used in Category 3, with 7.0% 7.5% of the total collected net of existing obligations and administration to be dedicated to “Maintain the crossing guard program, providing funding for crossing guards throughout Marin County”.

The following description change will supersede all previous description language:

All references to number of sites and/or intersections will be replaced with number of crossing guards.

CATEGORY 4 (Modified description)
The following description change will supersede all previous description language:

Expand access to Rail and Ferry Stations through first and last mile programs or services. Expand and maintain shared mobility services, and new transit connections to address first and last mile connections to rail and ferry stations.
3 of 3
Marin County residents and workers now have expanded regional transportation options to improve regional mobility, particularly during commute hours. Local residents and workers often require first and last mile connections to make these regional options accessible, including access to the ferry and express bus services. This category helps to expand and maintain first and last mile solutions that provide access to regional transit stops for Marin’s residents and commuters. The funds can be accessed by TAM, Marin Transit, or Golden Gate Bridge, Highway, and Transportation District as sponsors of shared mobility services such as bikeshare systems or new first/last mile connections (e.g. Shuttle service, new transit connections, or other shared mobility services) at major transit stops working in coordination with TAM.

COMMUNITY OVERSIGHT COMMITTEE (Additional language)
The following description change is in addition to all previous description language:

To accurately represent the voices of the communities in Marin, especially to timely address the needs and voices of the Equity Priority Communities (EPCs), the TAM Board has the authority to review and amend the COC membership structure when necessary.

AMENDMENTS TO EXPENDITURE PLAN (Modified and additional language) The following description change will supersede the previous description of the frequency of reviews (the remaining amendment description language is unchanged):

The Expenditure Plan must be reviewed periodically following passage to ensure that it responds to a rapidly evolving transportation landscape, incorporates innovations, and reflects current priorities.

The TAM Board may also consider an amendment, adhering to the process below, at the point of the scheduled review or at any time deemed necessary during the life of the Expenditure Plan.

The timing of the Measure AA Expenditure Plan review and the Measure B Expenditure Plan review will occur together for one consolidated, concurrent review for efficiency and effectiveness. The timing of the two review processes will occur concurrently during the second scheduled review for both Measures B and AA in 2032 to 2033 and will establish an eight-year cycle for both thereafter. This would provide four review cycles for Measure AA, including a final one the year before the measure is due to sunset in 2049.

Measure AA: Marin County
½-Cent Transportation Sales Tax
Expenditure Plan Review Recommendations Factsheet
Expenditure Plan Review
Measure AA requires that the Expenditure Plan be reviewed every six years to ensure funds reflect current transportation needs, community priorities, and emerging challenges. This process represents the first six-year review of the ½-Cent Transportation Sales Tax Expenditure Plan.

Overview of Amendments
The proposed amendments are limited to reflect robust public and partner input. 95% of Measure AA funding remains unchanged. ~5% of funding would be updated to improve flexibility, address funding shortfalls, and respond to future transportation needs while honoring voter intent.

Public and
Stakeholder Input
Throughout 2024-2025, over
30 meetings were conducted
with advisory committees, local
agencies, community members,
and transportation partners.

Feedback demonstrated strong
overall support for the Measure AA
funding and proposed updates.

Milestones
January 22, 2026: Draft
amendments released and 45-day
public comment period begins
March 26, 2026: TAM Board
considers final adoption of the
amended plan
Spring 2026: Updates shared with
Marin cities, towns, and the County
Fiscal Year 2026–27: Changes
incorporated into TAM’s budget
Key Proposed Changes to the
Measure AA Expenditure Plan*
Crossing Guard Program (7.0% to 7.5%)
Why: Prevents 5 Crossing Guards from being removed
Reallocated from Local Interchanges Program
(3.0% to 2.5%)
• Addresses rising costs and provides sustainable
funding for ~5 crossing guards per year
• ~$20 million remains available to advance three
interchanges for ~6 years of project development
while TAM pursues additional grants/funds
New Reimagined Roadways Program (4.5%)
Why: Establishes funding for large capital projects
that currently have no local funding source
Reallocated from Local Streets and Roads formula
funding to jurisdictions (22% to 18%)
and Innovation Technology (0.5% to 0%)
• Establishes a new countywide program to support
large, multi-jurisdictional roadway projects focused
on safety, congestion relief, and climate resilience
• Continues to provide ~$5.8 million/year to
jurisdictions for local streets and roads from
TAM in addition to ~$22 million/year for roadway
maintenance from other funding sources.

MARCH 2026
*Additional amendments do not affect funding.

Visit www.tam.ca.gov for a complete list of proposed amendments. 0 Transportation Authority of Marin
For More
Information
Visit the TAM
website at
www.tam.ca.gov
$35M

ANNUALLY
Estimated average annual
revenue from Marin’s
½-cent transportation
sales tax
Reduce congestion
on US-101 and
adjacent roadways
Maintain, improve,
and manage local
roads and related
infrastructure
3% Rural Transit

9.5% Seniors and
People with Disabilities 4% Facilities
5% Schools
Reduce school-related
congestion and
provide safer access
to schools

11.5% Maintain and
expand efficient
and effective local
transit services
55%

26.5%
7%
33% Local Transit

0.5% Access

HOW ARE SALES TAX
FUNDS DISTRIBUTED?
■ FUNDED highway improvements, including the Marin-Sonoma Narrows project and interchange enhancements along US-101 and I-580. ■ IMPROVED local transit service with new options for seniors, people with disabilities, and rural communities.
■ MADE school travel safer by improving walk and bike routes, expanding Safe Routes to Schools to nearly 60 schools, and adding crossing guards at over 90 intersections.
■ INVESTED in cleaner, more equitable transportation including bike/ped infrastructure and senior mobility programs.
■ IMPLEMENTED AND MAINTAINED local road improvements,
including pothole repair to meet the needs of drivers, bicyclists, pedestrians, and transit users.

KEY ACCOMPLISHMENTS
Marin County
Voters approved
Measure A in 2004
and renewed it as
Measure AA
in 2018 with

76.7% approval.

Keeping Marin Moving
0 $500 minion
in funding for
transportation
Improvements In
Marin County
Today, Measure AA
generates approximately
$35 mllhon each year
to support local
transportation improvements
across the county!
Transportation Authority of Marin
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.b
Meeting Date: April 20, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by:

Daniel Cooperman, Community Svcs. Div. Dir.

City Manager Approval: ______________
TOPIC: 350 MERRYDALE INTERIM SHELTER CONTRACT FOR OPERATIONAL SERVICES SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE

A SECOND AMENDMENT WITH FOEGE SCHUMAN GLOBAL DISASTER
SOLUTIONS LLC (FS GLOBAL) IN AN AMOUNT NOT TO EXCEED $2,487,649 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $3,837,649 TO SUPPORT THE IMPLEMENTATION AND INITIAL OPERATIONS OF THE 350 MERRYDALE INTERIM SHELTER, AND TO EXTEND THE TERM OF THE AGREEMENT THROUGH JUNE 30, 2028; AND AUTHORIZING A SUPPLEMENTAL FY2025-26 BUDGET
APPROPRIATION OF $1,000,000 WITHIN THE CITY’S GRANT FUND (283) TO REFLECT THE PORTION OF THE COUNTY GRANT PROVIDED FOR THIS PURPOSE.

RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to negotiate and execute a second amendment with Foege Schuman Global Disaster Solutions LLC (FS Global) in an amount not to exceed $2,487,649, for a total contract amount not to exceed $3,837,649, to support the implementation and initial operations of the 350 Merrydale Interim Shelter, and to extend the term of the agreement through June 30, 2028; and appropriating $1,000,000 of the County Grant.

BACKGROUND:

In response to ongoing challenges related to homelessness and the need for safe, managed spaces for individuals experiencing unsheltered homelessness, the City of San Rafael, in partnership with the County of Marin, established the Sanctioned Camping Area (SCA) as part of its broader homelessness response strategy. The SCA opened in October 2024 and is funded through the State of California’s Encampment Resolution Fund Round 3 (ERF-3) grant, awarded jointly to the City and County.

Through this partnership, the County of Marin coordinates housing-focused case management and outreach services to support participants on their pathway to permanent housing, while the City is responsible for oversight of site operations and related contracts. The SCA provides a structured and supervised environment where individuals can access temporary shelter, basic services, stability, and connections to housing, while also mitigating public health and safety impacts in surrounding areas.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
In May 2024, the City issued a Request for Proposals (RFP) seeking qualified vendors to provide operational and security services and support for a sanctioned camping/safe sleeping program. The City received one proposal for operational services; however, the proposal did not result in a finalized agreement. The City received three proposals for security services and selected Defense Block to provide those services at the Sanctioned Camping Area. Through discussions with Defense Block, the City was connected to Foege Schuman Global Disaster Solutions LLC (FS Global) who had provided similar sanctioned camping/safe sleeping program services in Sonoma County. Through this connection, FS Global was able to provide a proposal for operational services, making them the only available proposer for such services.

On September 18, 2024, the City entered into a General Services Agreement with Foege Schuman Global Disaster Solutions LLC (FS Global) in an amount not to exceed $675,000 to provide operational support for the SCA, including site development and management, staffing, program structures and other assets, and coordination with City staff and service providers. The City Council approved a first amendment to the agreement in June 2025, increasing the contract by $675,000 for a total not to exceed amount of $1,350,000 to support ongoing SCA operations through Fiscal Year 2025–26.

Since its establishment, the SCA has served as a key interim strategy to stabilize individuals experiencing unsheltered homelessness while advancing longer-term housing solutions. The program has connected participants to permanent housing placements, housing-based case management, income support through employment or public benefits, and behavioral health and supportive services.

Building on these outcomes, the City is advancing the next phase of its homelessness response through the development of the 350 Merrydale interim shelter. The 350 Merrydale Interim Shelter is planned to include modular shelter units (“cabins”) and will provide a non-congregate, service-enriched environment designed to support participant stability and housing progression. The shelter is intended to serve individuals currently residing at the SCA and nearby locations, including Andersen Drive, through a coordinated transition process. Upon opening, anticipated in early Fall 2026, participants will be transitioned from the SCA to the 350 Merrydale Interim Shelter in phases, followed by the closure of the SCA and restoration of the Mahon Creek Path to public use.

FS Global’s existing role in operating the SCA, along with its familiarity with site operations, program participants, and coordination with City and County partners, well positions the contractor uniquely to support continuity of operations, facilitate participant transition, assist with site closure, and support initial operations of the 350 Merrydale Interim Shelter.

Over the past 18 months, FS Global has demonstrated a high level of professionalism, adaptability, and commitment to the City’s objectives. Their team has been effective in building trust with program participants, fostering a respectful and supportive environment while maintaining clear expectations and accountability. FS Global staff have consistently demonstrated strong conflict resolution skills, addressing challenges proactively and de-escalating situations in a manner that prioritizes safety and dignity for all involved.

In addition, FS Global has been a responsive and reliable partner to the City, maintaining open lines of communication, quickly addressing operational issues as they arise, and collaborating closely with City and County staff to refine program practices. Their ability to balance compassionate service delivery with structured site management has contributed to overall program stability and positive outcomes. The contractor has also been attentive to community concerns, working in coordination with City staff to minimize impacts and uphold Good Neighbor Policy standards. This strong track record of partnership, responsiveness, and effective program delivery positions FS Global to successfully support the transition to and initial operations of the 350 Merrydale Interim Shelter.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3

ANALYSIS
Given the satisfactory performance of FS Global over their management of the Sanctioned Camping Area, Staff are recommending the City enter into a second amendment to the existing contract for FS Global to provide site management, maintenance, and operations for the 350 Merrydale Interim Shelter.

The proposed amendment will help to maintain continuity of operations and services for program participants and reflects a comprehensive approach that includes participant transition support, provision and installation of modular shelter units, and initial operations of the 350 Merrydale Interim Shelter. The details of this work are included in a Scope of Work (Attachment 2) as well as the Contract Amendment (Attachment 3). The key details of this scope include:

Continuity of SCA Operations
FS Global will continue to provide site management and operational support at the SCA during the transition period (estimated July-October 2026). This includes staffing, coordination with City staff and service providers, and maintaining site safety and security, sanitation/janitorial services, and program structure.

Participant Transition to 350 Merrydale Interim Shelter and Closure of the SCA FS Global will support the coordinated transition of participants from the SCA and nearby locations, including Andersen Drive, to the 350 Merrydale Interim Shelter. This transition will occur in phases and will include tasks such as participant outreach and engagement, eligibility screening and prioritization, individualized transition planning, coordination of move-in logistics, and on-site support during relocation.

FS Global will work closely with case managers to ensure participants are prepared for the transition, including communicating program expectations, orienting individuals to the new shelter environment, and addressing barriers to entry such as storage of belongings and any other accommodation needs.

FS Global will also manage day-to-day transition operations, including scheduling move-in cohorts, coordinating transportation of participants and their belongings, maintaining clear communication with all partners, and ensuring the SCA remains stable and well-managed throughout the transition period. Staff will provide hands-on support during move-in days to facilitate a smooth process, reduce confusion, and quickly resolve issues as they arise. In addition, FS Global will continue active engagement with participants who may be hesitant or resistant to transition, using a trauma-informed approach to build trust and encourage participation.

This work will be done in coordination with the County of Marin, service providers, and City staff. The transition approach prioritizes continuity of care and minimizes disruption to participants to the greatest extent possible. FS Global’s familiarity with site operations and participant needs supports a smoother and more efficient transition process, helps maintain engagement in case management and supportive services, and reduces the risk of individuals disengaging from the system of care during this critical period.

Modular Shelter Units (“Cabins”)
Under the proposed amendment, FS Global will provide the project’s modular shelter units. This includes the delivery, placement, installation, and preparation of the units for occupancy, subject to City inspection and acceptance. Once the program concludes FS Global will remove the units from the site.

If the need for modular units extends past the term of the funding agreement with the County of Marin (June 30, 2029), the proposed amendment provides the City with an option to purchase the modular SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
shelter units for $1,000,000, for use at any other interim shelter site. The City does not have any identified funding to facilitate the option at this time, nor has the City identified any other interim shelter site. 350 Merrydale Interim Shelter Operations and Staffing
FS Global will support operations of the 350 Merrydale Interim Shelter, including staffing, site management, fire watch services, and coordination with City and County partners. The Interim Shelter will be staffed 24-hour per day, 7-days per week to maintain a safe, stable, and well-managed environment.

The contractor will maintain an active on-site presence to monitor site activity, respond to operational and safety issues in real time, and coordinate with City staff and service providers as needed. Additional responsibilities include maintaining common areas, providing janitorial services, addressing operational issues, and supporting overall site functionality. The contractor will be responsible for facilitating participant check-in and check-out procedures, managing daily site access and occupancy tracking, and supporting other core administrative and operational functions necessary to ensure the shelter operates in a safe, organized, and efficient manner.

Program operations will be guided by the Interim Shelter’s Good Neighbor Policy (GNP) and Participant Code of Conduct (CoC), which establish clear expectations for behavior, safety standards, and site management. The contractor will implement and monitor these standards, document incidents and response actions, and coordinate with the City on escalated or safety-related issues. This includes applying a structured accountability approach to address non-compliance while maintaining alignment with Housing First principles.

FS Global will maintain a consistent on-site staffing model, with a minimum of three and up to six operations and fire watch staff present at any given time to ensure continuous coverage, safety monitoring, and adherence to site protocols. This operational staffing will be complemented by three housing-based case managers contracted through the County of Marin, who will continue to provide intensive case management and housing navigation services to participants. In addition, City staff will be based out of the Merrydale site to support oversight, coordination, and day-to-day program implementation.

The proposed staffing model reflects established best practices for interim shelter operations, including maintaining consistent on-site coverage, clear delineation of roles, and integration of operations staff with housing-focused case management services. The presence of dedicated operations and fire watch staff ensures 24/7 site safety, active monitoring, and immediate response to issues, while the inclusion of housing-based case managers supports a service-rich environment focused on stabilization and pathways to permanent housing. This layered approach aligns with evidence-based models that emphasize both operational structure and supportive services as critical components of successful interim shelter programs.

At the same time, the model builds directly on lessons learned through the City’s operation of the Sanctioned Camping Area over the past several years. These lessons include the importance of maintaining adequate staffing ratios to support participant engagement and safety, the value of strong coordination between operations staff and service providers, and the need for an on-site City presence to support oversight and responsiveness. The proposed approach reflects refinements made over time to improve program outcomes, enhance accountability, and better respond to both participant needs and community concerns, positioning the Merrydale Interim Shelter for effective and stable operations.

FISCAL IMPACT:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
The total not-to-exceed amount for the proposed amendment is $2,487,649, which includes a one-time charge of $929,892 for the provision, delivery, and installation of the modular shelter units. This cost will be covered by the County’s Grant Agreement, which stipulates that the City shall receive the remaining $1,000,000 of the $8,000,000 grant at the time the order is placed for the shelter units. The attached resolution provides for the appropriation of the remaining grant amount upon receipt of the funds from the County of Marin.

Annual operations and staffing costs for Fiscal Year 2026-27 are budgeted at $1,557,757, and will be funded through the remaining portion of the Encampment Resolution Fund Round 3 Grant, and contributions from the City and County’s respective General Funds as contemplated under the County’s Grant Agreement. Appropriations for these costs will be included in as a part of the Fiscal Year 2026-27 Annual Budget. Any operations and staffing costs for the out-years of this project will be handled on a year-to-year basis to account for any necessary adjustments.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to negotiate and execute a second amendment with Foege Schuman Global Disaster Solutions LLC (FS Global) in an amount not to exceed $2,487,649 for a total contract amount not to exceed $3,837,649, to support the implementation and initial operations of the 350 Merrydale Interim Shelter, and to extend the term of the agreement through June 30, 2028; and appropriating $1,000,000 of the County Grant.

ATTACHMENTS

1. Resolution

2. Scope of Work

3. Contract Amendment
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE

CITY MANAGER TO NEGOTIATE AND EXECUTE A SECOND AMENDMENT WITH FOEGE

SCHUMAN GLOBAL DISASTER SOLUTIONS LLC (FS GLOBAL) IN AN AMOUNT NOT TO EXCEED $2,487,649 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $3,837,649 TO SUPPORT THE IMPLEMENTATION AND INITIAL OPERATIONS OF THE 350 MERRYDALE INTERIM SHELTER, AND AUTHORIZING A SUPPLEMENTAL FY2025-26 BUDGET APPROPRIATION OF $1,000,000 WITHIN THE CITY’S GRANT FUND (283) TO REFLECT THE PORTION OF THE COUNTY GRANT PROVIDED FOR THIS PURPOSE.

ER, AND TO EXTEND THE TERM OF THE AGREEMENT THROUGH JUNE 30, 2028; AND APPROPRIATING $1,000,000 OF THE COUNTY GRANT WITHIN THE GRANT FUND (283).

WHEREAS, the City of San Rafael, in partnership with the County of Marin, has implemented programs to address unsheltered homelessness, including the Sanctioned Camping Area (SCA), funded in part through the State of California Encampment Resolution Fund Round 3 (ERF-3) grant; and
WHEREAS, on May 20, 2024, the City issued a Request for Proposals (RFP) seeking qualified vendors to provide operational and security services and support for a sanctioned camping/safe sleeping program; and
WHEREAS, the City received one proposal in response to the RFP, which did not result in a finalized agreement; and
WHEREAS, the City received three proposals for security services and selected Defense Block to provide those services at the Sanctioned Camping Area. Through discussions with Defense Block, the City was connected to Foege Schuman Global Disaster Solutions LLC (FS Global) who had provided similar sanctioned camping/safe sleeping program services in Sonoma County.

Through this connection, FS Global was able to provide a proposal for operational services, making them the only available proposer for such services; and WHEREAS, on August 19, 2024, the City entered into a General Services Agreement with Foege Schuman Global Disaster Solutions LLC (FS Global) in an amount not to exceed $675,000 to provide operational services for the SCA; and
WHEREAS, in June 2025, the City Council approved a first amendment to the agreement, increasing the total contract amount by $675,000, for a total not-to-exceed amount of $1,350,000, to support continued operations; and
WHEREAS, the City is advancing the development of the Interim Shelter at 350 Merrydale to provide a non-congregate, service-enriched shelter environment; and WHEREAS, FS Global’s existing role in operating the Sanctioned Camping Area, along with its familiarity with site operations, program participants, and coordination with City and County partners, well positions the contractor uniquely to support continuity of operations, facilitate participant transition, assist with site closure, and support initial operations of the 350 Merrydale Interim Shelter; and
WHEREAS, the City desires to amend the agreement with FS Global to support the provision and installation of modular shelter units and the implementation and operations of the 350 Merrydale Interim Shelter; and
WHEREAS, the City Council finds that entering into this amendment is in the best interest of the City to ensure continuity of services and timely implementation of the 350 Merrydale Interim Shelter; and
WHEREAS, funding for this amendment is available through the Encampment Resolution Fund Round 3 (ERF-3) grant, County of Marin Grant, and contributions from the City and County’s respective General Funds as contemplated under the County’s Grant Agreement.

NOW, THEREFORE, BE IT RESOLVED
The City Council of the City of San Rafael does hereby resolve as follows:

1. The foregoing recitals are true and correct and without any further competitive bidding, the City Manager is authorized to negotiate and execute a second amendment with Foege Schuman Global Disaster Solutions LLC (FS Global) in an amount not to exceed $2,487,649, for a total contract amount not to exceed $3,837,649, to support the implementation and initial operations of the 350 Merrydale Interim Shelter, and to extend the term of the agreement through June 30, 2028.

2. Authorizes a supplemental FY2025-26 budget appropriation of $1,000,000 within the City’s Grants Fund (Fund 283) to reflect funding provided from the County of Marin Grant to support the agreement.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_____________________
Lindsay Lara, City Clerk
EXHIBIT A-2

SCOPE OF WORK
This is Exhibit A-2 is attached to and made a part of the Contract by and between Contractor and the City providing for the referenced services. The Parties agree to amend the Scope of Work to add the following:

1. Description of the Work:

The Contractor shall provide operational services and support for the City’s Interim Shelter located at 350 Merrydale Road (“Interim Shelter”). This includes the ongoing management, staffing, and day-to-day operations of the Interim Shelter to ensure a safe, stable, and wellmaintained environment for program participants. The Contractor shall also provide modular shelter units to support Interim Shelter operations, in accordance with the approved estimate and specifications. Services under this Scope of Work include site management, staffing, fire watch services, coordination with City staff and service providers, and the implementation, monitoring, and enforcement of the Participant Code of Conduct (CoC) and Good Neighbor Policy (GNP).

The Contractor shall maintain an active on-site presence to monitor participant behavior, address issues in real time, and document and respond to violations of the CoC and GNP in coordination with the City. The Contractor shall coordinate closely with the City to support effective operations, respond to operational needs, and ensure alignment with program expectations and performance standards.

2. Specific Tasks:

As part of the Scope of Work, the Contractor shall perform the additional following tasks:

Task 1 – Modular Shelter Units (Procurement, Installation, and Readiness) The Contractor shall provide modular shelter units to support operations at the Interim Shelter located at 350 Merrydale Road (“Interim Shelter”), including up to thirty-three (33) Conex modular units, totaling approximately sixty-six (66) individual single room occupancy (SRO) units, consistent with the approved estimate and specifications. This Task includes the provision, delivery, installation and maintenance of the Units, as further described in Subtask 1.1 and Subtask 1.2 below.

Subtask 1.1: Provision of Units
The Contractor shall provide the modular shelter units in accordance with approved specifications and coordinate delivery of the Units to the project site. All Units shall be delivered in a condition suitable for installation.

Subtask 1.2: Installation of Units
- The Contractor shall be responsible for delivery, placement, installation, and preparation of the Units for occupancy. This includes positioning, securing, and configuring the Units on site to create a safe and functional environment.
- The Contractor shall ensure that all Units are installed by a California licensed contractor and in a condition that is safe, secure, and ready for occupancy per local and state standards, as determined by the City. To the extent that the City may certify the Units for occupancy in its regulatory capacity, Contractor hereby acknowledges and agrees that such certification for occupancy is limited to compliance with the state and local laws that are applicable within the City of San Rafael and does not extend outside the City of San Rafael’s jurisdiction.
- The Contractor shall coordinate with the City on installation timing, participate in a joint inspection, and correct any identified deficiencies prior to final acceptance.

Task 2 – Interim Shelter Operations. The Contractor shall operate and manage the Interim Shelter located at 350 Merrydale Road on a 24-hour per day, 7-day per week basis. This includes providing staffing, site management, fire watch services, and overall day-to-day operations to ensure a safe, stable, and well-functioning environment.

The Contractor shall be responsible for monitoring site activity, responding to operational and safety issues, and implementing and monitoring the Participant Code of Conduct (CoC) and Good Neighbor Policy (GNP) in coordination with the City.

The work under this Task includes, but is not limited to, the following Subtasks:
• Subtask 2.1: The Contractor shall provide and maintain staffing for the Interim Shelter on a 24-hour per day, 7-day per week basis in accordance with the City-approved staffing plan.

This includes site management, operations staff, site staff, and fire watch personnel. • Subtask 2.2: The Contractor shall be responsible for day-to-day operations of the Interim Shelter, including maintaining a safe, orderly, and functional environment for participants and staff. This includes monitoring site activity, maintaining common areas, and addressing operational issues as they arise.
• Subtask 2.3: The Contractor shall maintain an active on-site presence to monitor participant activity and overall site conditions. The Contractor shall respond to incidents and safety concerns in real time, including de-escalation and coordination with City staff, service providers, and emergency services when necessary.
• Subtask 2.4: The Contractor shall implement and monitor compliance with the Participant Code of Conduct and Good Neighbor Policy, including oversight of participant behavior and site conditions both within the Interim Shelter and in surrounding areas impacted by the program. The Contractor shall document all violations, corrective actions, and outcomes, and apply the Accountability and Response Framework consistently. Deliverables shall include regular reporting on incidents, response actions, and trends, as well as coordination with City staff on escalated or safety-related issues.
• Subtask 2.5: The Contractor shall provide ongoing reporting and coordination to support oversight of Interim Shelter operations. This includes regular communication with City staff, timely notification of incidents or emerging issues, and coordination with County partners, service providers, and public safety agencies. The Contractor shall submit reports and participate in scheduled meetings to support operational review, issue resolution, and continuous program improvement.

DELIVERABLES
Contractor’s additional deliverables under the Contract include as follows:

1. Project Deliverables:

Task 1 Deliverables
Subtask 1.1 Deliverables
• Provide up to thirty-three (33) modular emergency shelter units (approximately sixty-six (66) SROs) in accordance with approved specifications.
• Deliver 100% of Units to the project site.
• Ensure all Units are delivered in a condition suitable for installation Subtask 1.2 Deliverables
• Complete delivery, placement, and installation of 100% of Units at the project site. • Ensure all Units are safe, secure, and ready for occupancy, as determined by the City. • Participate in a joint inspection with the City upon completion of installation. • Correct any identified deficiencies prior to final acceptance by the City. • Maintain Units in a condition suitable for occupancy throughout the period of use. • Respond in a timely manner to maintenance or condition-related issues of the Units during the period of use and maintain the Units for habitability. • Pay prevailing wages to its employes as required by state law for this Subtask. Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are on file at the City’s Public Works Department upon request and may be obtained from the California Department of Industrial Relations website http://www.dir.ca.gov/OPRL/DpreWageDetermination.htm. Contractor shall comply with the 8-hours per day/40 hours per week/overtime/working hours restrictions for all employees, pursuant to the California Labor Code. Contractor and all subcontractors shall keep and maintain accurate employee payroll records for Work performed under the Contract. The payroll records shall be certified and submitted as required by law, including Labor Code Sections 1771.4 (if applicable) and 1776, including to the Labor Commissioner no less frequently than monthly. Contractor shall comply fully with Labor Code Section 1777.5 in the hiring of apprentices for work relating to the Contract. • Task 2 Deliverables
Subtask 2.1 Deliverables
• Maintain staffing coverage at or above 95% of scheduled shifts on a monthly basis. For purposes of this Agreement, staffing coverage is defined as all required positions for a scheduled shift being filled in accordance with the City-approved staffing plan. • Ensure 100% of required fire watch coverage during all scheduled hours. • Fill staffing gaps for critical roles (including Site Manager or lead staff) within the same shift whenever feasible.
• Notify the City of any significant or prolonged staffing shortages that may impact operations.

Subtask 2.2 Deliverables
• Operate and maintain the Interim Shelter in a safe, orderly, and functional condition. • Maintain common areas and shared spaces in a clean and usable condition. • Monitor site activity on an ongoing basis and address operational issues as they arise. • Respond to routine operational needs in a timely manner. • Document and track operational issues and actions taken as part of regular reporting to the City.

Subtask 2.3 Deliverables
• Maintain an active on-site presence at all times to monitor participant activity and site conditions.
• Respond to on-site incidents and safety concerns immediately upon awareness. • Document 100% of reportable incidents within 24 hours of occurrence. • Notify the City of significant incidents, safety concerns, or emergency responses within 24 hours.

Subtask 2.4 Deliverables
• Maintain a log of all Code of Conduct and Good Neighbor Policy incidents, including date, type of issue, actions taken, and outcome.
• Provide a monthly summary report that includes total incidents, categories of issues, repeat occurrences, and resolution status.
• Document all escalated or safety-related incidents and provide timely notification to the City in accordance with agreed protocols.
• Track and report trends or recurring issues, including actions taken to address them. • Provide documentation upon request to support City review, audits, or community concerns.

Subtask 2.5 Deliverables
• Submit weekly written reports to the City from shelter opening through the first six (6) months of operations. Following this period, transition to monthly reporting, unless otherwise directed by the City.
• Reports shall include, at a minimum: site occupancy and operations, staffing coverage, incidents and safety issues, Code of Conduct and Good Neighbor Policy activity (including violations and actions taken), operational challenges, and key coordination updates. • Provide timely notification to the City of significant incidents, safety concerns, or operational issues.
• Participate in regular coordination meetings with City staff (weekly or as requested), including preparation of updates as needed.
• Maintain ongoing communication with the City regarding site operations and emerging issues between reporting periods.

METHOD OF PAYMENT
Subject to the terms and conditions of this Contract, Contractor shall be paid as follows:

Task 1 – Modular Emergency Shelter Units. For Task 1, the Contractor shall be compensated in a total amount not to exceed Nine Hundred Thousand Dollars ($900,000), allocated as follows:
• Subtask 1.1 – Provision of Units
The Contractor shall be compensated in an amount not to exceed Seven Hundred Thousand Dollars ($700,000) for the provision of modular shelter units. Payment shall be made upon delivery of 100% of the Units to the project site and verification by the City that the Units have been received in a condition suitable for installation. • Subtask 1.2 – Installation of Units
The Contractor shall be compensated in an amount not to exceed Two Hundred Thousand Dollars ($229,892) for the delivery, placement, and installation of the Units. Payment shall be made upon completion of installation and written verification by the City that the Units are installed and ready for occupancy, subject to inspection and acceptance by the City.

Task 2 – Interim Shelter Operations. For Task 2 and associated subtasks, the Contractor shall be compensated on a time and materials basis in accordance with the rates and budget approved by the City, in an amount not to exceed One Million Five Hundred Fifty-Seven Thousand Seven Hundred Fifty-Seven Dollars ($1,557,757).

The Contractor shall submit itemized invoices identifying labor hours, staff classifications, and associated costs. All invoices shall be subject to review and approval by the City and must demonstrate compliance with the Scope of Work, including required deliverables.

The City reserves the right to request additional supporting documentation and to withhold or delay payment for incomplete, inaccurate, or non-compliant submissions. – END OF EXHIBIT A-2 –

San Rafael City CouncilApril 20, 2026

San Rafael City Council
April 20, 2026