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HomeMy WebLinkAbout2004-10-13 e-packetAGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, OCTOBER 13, 2004 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the C, ommunity Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. RAYMOND L. GREEN Vice Chair RICHARD A. GARBARINO, SR. Boardmember RICHARD BATTAGLIA Investment Officer BARRY M. NAGEL Executive Director KARYL MATSUIVlOTO Chair JOSEPH A. FERNEKES Boardmember PEDRO GONZALEZ Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS IIEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of September 22, 2004 2. Motion to confirm expense claims of October 13, 2004 CLOSED SESSION 3. Pursuant to Government Code Section 54956.8 real property negotiations related to 178- 190 Airport Boulevard, 380 Alta Vista Drive, and SF-PUC property located on Mission Road (APNs: 093-312-050/060); Agency Negotiator: Redevelopment Agency Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETiNG AGENDA OCTOBER 13, 2004 PAGE 2 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, OCTOBER 13, 2004 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS; ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The City Clerk will read successively the items of business; appearing on the Agenda. As she completes reading an item, it will be ready for Council action. RAYMOND L. GREEN Vice Mayor RICHARD A. GARBARINO, SR. Councilman RICHARD BATTAGLIA City Treasurer BARRY M. NAGEL City Manager KARYL MATSUMOTO Mayor JOSEPH A. FERNEKES Councilman PEDRO GONZALEZ Councilman SYLVIA M. PAYNE City Clerk STEVEN T. MATTAS City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS · Day in the Park Update - Recreation and Community Services Director Sharon Ranals · Introduction of New and Promoted City Employees AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Announcements · Committee Reports CONSENT CALENDAR 1. Motion to approve the minutes of September 15:, 22, and 30, 2004 2. Motion to confirm expense claims of October 13, 2004 o Resolution accepting grant funding from the State of California Business, Transportation & Housing Agency's Office of Traffic Safety in the amount of $67,500 Resolution authorizing agreement and memorm~dum of understanding and/or compensation plans extensions with employee bargaining units Teamsters Local 586, Operating Engineers Local 39, International Association of Firefighters Local 1507, Police Association, Public Safety Managers, and Mid-Management unit related to PERS Fresh Start program o Resolution authorizing agreement and memorandum of understanding with American Federation of State, County and Municipal Employees Local 1569 related to Fresh Start program o Motion to accept Greendale Drive and Mitchell Avenue rehabilitation projects as complete in accordance with plans and specifications Motion to accept parcel map dedicating public street (McLellan Drive) and public use easements from Fairfield South San Francisco, LLC o Resolution authorizing payment to the County of San Mateo for Northwest Construction's installation of HDPE pipe acros, s the Colma Creek Channel for the Lindenville Stormwater Rehabilitation Project in the amount of $352,150 REGULAR CITY COUNCIL MEETING AGENDA OCTOBER 13, 2004 PAGE 2 Acknowledgement of proclamations issued: Earsie Johnson, 10/1/04 and Frances Luster, 10/7/04 ADMINISTRATIVE BUSINESS 10. Motion to waive reading and introduce an ordinance repealing SSFMC Chapter 18, Section 18.04, Transportation System Management Program COUNCIL COMMUNITY FORUM CLOSED SESSION 11. Closed Session: a) Pursuant to Government Code Section 54957.6 conference with Labor Negotiator Bower for employee bargaining unit AFSCME, Local 1569 b) Pursuant to Government Code Section 54956.9(a), conference with legal counsel - existing litigation, Costco v. City of South San Francisco; and c) Pursuant to Government Code Section 54957, Evaluation of City Manager ADJOURNMENT REGULAR CITY COUNCIL MEETiNG AGENDA OCTOBER 13, 2004 PAGE 3 { Staf ort AGENDA ITEM #3 DATE: TO: FROM: SUBJECT: October 13, 2004 Honorable Mayor and City Council Mark Raffaelli, Chief of Police BUDGET AMENDMENT - OFFICE OF TRAFFIC SAFETY GRANT FUNDING RECOMMENDATION It is recommended that City Council adopt the attached Resolution to accept the $67,500 in grant funding received from the State of California, Business, Transportation & Housing Agency made available through the Office of Traffic Safety (OTS) and to amend the Police Department's current budget to include the $67,500. BACKGROUND/DISCUS SION The Police Department applied for grant funding and was awarded $67,500 from the State of California through the Office of Traffic Safety, which is a division of the Business, Transportation & Housing Agency. The objectives of the grant are to reduce pedestrian and bicycle fatal and injury collisions near schools and parks in South San Francisco. The City has been proactive regarding pedestrian safety with the installation of several lighted crosswalks, primarily in the downtown area and recently at Orange Park. The radar feedback signs will increase driver, pedestrian, and bicyclist awareness on heavily traveled surface streets that are in close proximity to schools and parks. The funding will cover purchase costs that will allow the City to install eight solar powered radar feedback signs at specified school and park locations. The grant also provides expenses for the program manager and administrator to travel from the Police Department to OTS conference sites. Attendance is required for all grant recipients. The Police Department has committed to providing special traffic enforcement, education programs, and media coverage as additional components used to me, et the grant objectives to reduce injury and fatal collisions. At the conclusion of the grant, the radar feedback signs will belong to the City and may be utilized at other locations. Staff Report Subject: Page 2 Budget Amendment - Office Of Traffic Safety Grant Funding The following are a list of locations where the radar feedback signs will be posted: 1. Eastbound Hillside Blvd. ~ Claremont Avenue, 2. West Orange Avenue ~ Tennis Drive, 3. West Orange Avenue ~ B Street, 4. Westbound Arroyo Dr. ~ Buri Buri Park, 5. Eastbound Arroyo Dr. ~ Buff Buri Park, 6. Northbound Shannon Drive ~ Monte Verde School, 7. Southbound Del Monte Avenue ~ Buff Bud School, 8. Eastbound Ponderosa Road ~ Ponderosa School. FUNDING By: The C~r-ant provides a total of $60,000 to purchase all equipment necessary to install the radar feedJ~ack signs. The remaining $7,500 is added to the gr~mt award by OTS to cover the expenses of sen~ing the grant program manager and program administrator to attend two mandatory OTS seminars, one in the November this year and the other in. May of 2005. Approved.,:-)--r~ V "~ 'J' Mark Raffaelli "---"/_B/art) M. NaVel Chief of Police City Manager Attachment: Resolution RES OLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING $67,500 IN G1L&NT FUNDING RECEIVED FROM THE STATE ,OF CALIFORNIA BUSINESS, TRANSPORTATION & HOUSING AGENCY MADE AVAILABLE THROUGH THE OFFICE OF TRAFFIC SAFETY AND AMENDING THE 2004-2005 OPERATING BUDGET WHEREAS, staff recommends accepting $67,500 in grant funding received from the State of California Business, Transportation & Housing Agency :made available throuo~h the Office of Traffic Safety; and WHEREAS, the objectives of the grant are to reduce pedestrian and bicycle fatal and injury collisions near schools and parks in South San Francisco; and WHEREAS, the grant provides a total of $60,000 to purchase all equipment necessary to install the radar feedback signs; and WHEREAS, the remaining $7,500 is added to the grant award by OTS to cover the expenses of sending the grant program manager and program administrator to attend two mandatory OTS seminars. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council accepts $67,500 in grant funding received from the State of California Business, Transportation & Housing Agency made available through the Office of Traffic Safety and amends the 2004-2005 Operating Budget to add $67,500 to the Police Department's budget. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the ~ day of ., 2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: S:\Current Reso's\ 10-13-04budget.amend.office.o f. traffic.safety.doc City Clerk DATE: TO: FROM: SUBJECT: October 13, 2004 Honorable Mayor and City Council Jennifer A. Bower, Director of Human Resources Resolution Authorizing Agreement between the City of South San Francisco and the Employee Bargaining Units and Approving the Memorandums of Understanding and/or Compensation Plans Extensions between of the City of South San Francisco and the South San Francisco Chapters of the Confidential Unit, Teamsters Local 856; International Association of Firefighters (]kAFF), Local 1507; the South San Francisco Police Association, the Public Safety Managers Unit, and the Mid-management Unit RECOMMENDATION Adopt a resolution authorizing the City Manager to sign and accept the agreements with the South San Francisco Chapters of the Confidential Unit, Teamsters Local 856; International Union of Operating Engineers, Local 39; International Association of Firefighters (IAFF), Local 1507; the South San Francisco Police Association, the Public Safety Managers Unit, the Mid-management Unit, and the Executive Management Unit. Locals 856, 39, and 1507 are the recognized bargaining agencies for these diverse group of City staff. BACKGROUND PERS is offering certain public agencies facing financial hardship the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for PERS rates. The Fresh Start program would permit the City to increase the number of years it would pay for the unfunded liabilities associated with providing City employees with their PERS benefits. The result would be that the City would have a lower PERS employer rate. Because the City's financial condition was such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; the City and each of the bargaining units met and discussed what could be done to minimize the fmancial impacts. Agreement has been reached with the units, five of whorn have an extension to the current contract, based on Council's direction. A side letter agreement to each has been prepared with the review and approval of the City Attorney, incorporating these agreed-upon terms and conditions of employment. Staff Report Subject: (Resolution and Agreements between the City of South San Francisco and the South San Francisco Chapters of specific Bargaining Units) Page 2 Attached are those final documents that incorporate the agreed-upon language based on the negotiations held with each of the respective bargaining 'units. By: x. Bower Di~'6tor of Human Resources Barry M. Nagel City Manager Attachments MOU Addendum for Teamsters MOU Addendum for IAFF MOU Addendum for PA Compensation Plan Addendum for Mid-management Unit Compensation Plan Addendum for Public Safety Managers Unit JAB- 10/08/04 S:XI-IR StaflMermifer\Correspondemee\City CouneilXFresh StartXExt 2A Reso.doc SEP-29-2004 1S:39 SSF HUMAN RESOURCES 650 829 6698 P.04/06 Side Letter I to the Current Memorandum of Understanding Between the City of South San Francisco and the Confidential Unit, Teamsters Local 856 WHEKEAS, the City of South San Francisce (City) agreed in 2002 to enhance the California Public Employees Retirement System (PEKS) retirement benefit it provides to employees represented by the Confidvntial Unit, Teamsters Local 856 (Local 856) from thc retirement bvnofit commonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; and WHEREAS, the City's agreement to provide ]Local 856 employees with the enhanced 2.7% at 55 retirement benefit is set forth in Section H of the current Memorandum of Understandiug between thc City and Local 856 with effective dates July I, 2000 through June 30, 2003 and extended to June 30, 2006 (MOU); and subsequently extended to June 2008 as indicated in Side Loiter J signed by both parties, and WHEREAS, in addition to the higher "normal cost" associated with the City providing Local $56 employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 2.7% at 55 retirement benefits to employees, who ret/re relatively soon, such that the City's contributions to PERS dumg these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing financial hardship, the oppommity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WI-IEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing the Local 856 employees with the 2.7% at 55 benefit from the usual 12 or 13 years, to 30 year~, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's financial condition is such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has in the recent past caIculated wage increases for Local 856 employees by first comparing certain categories of compensation (total compensation) with the amounts paid/provided by certain survey agencies, and then adjusting Local 856 employees' SER-2~-2004 1S:39 SSF HUMAN RESOURCES G50 829 6~9~ P.0S/06 Coufidmatial Unit, Teamsters Local 856 Side Letter Re PERS Fresh Start September 15, 2004 Appendix I Page 2 wages, as and if required, to keep Local 856 employees at the 60th percentile of the survey agencies; and WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to the applicable survey agencies; and WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer contribution rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly lowered, since employees would be entitled to the same 2.7% at 55 PEPS benefit, the City already pays the employee's PERS contribution, and participation in the Fresh Start program would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Local 856 have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Local 856 employees, if any, during the remaining term of their current MOU: IT IS HEREBY AGREED THAT, ff the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate that results from the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Local 856 employees than if the City had not participated in the Fresh Start program. 2. For the remainder of this contract term, any total compensation comparison used by the City or Local 856 for the purpose of determining whether any or a particular wage increase is reqttired or appropriate, the City's total compensation for Local 856 employees shall include what the City's total PEPS employer rate would have been if the City had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2005-06 Fiscal Year. SEP-29-2004 15:39 SSF HUMAN RESOURCES 650 829 6698 P.06/0~ Comeidenfial U~it, Teamsters Looal 856 Side Letter Re PERS Fresh Start September 1 $, 2004 Appendix I P~§e ~ Total Employer Rate in 1~ 2005~ If,D0 not Participate in Fr.e..~h Start 15.65% Total Employer Rate in 1~ 2005 If Do P. articiDate in Fresh S~rt 13.448% Differen~ -2.20% Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2005-2006 Fiscal Year to det~miine whether a wage increase was appropriate or required, the City's total compensation for purposes of the comparison would include the 15.65% employer rate rather than the 13.44'8% rate the City will actually have to contribute as its employer contribution !in the 2005-06 Fiscal Year. 3. This Side Letter shall only be effective during the term of the current MOU, and shall expire effective June 30, 2006. 4. This Side Letter shall be limited to total compensation surveys mandated by the current MOU, or any written agreement between the City and Local 856, executed subsequent to this Side Letter and prior to June 30, 2006, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. ~ Lo~Qal 851~:-Name and Title Barr~ M. Nagel.,/Cl~-~l~anager Date Date A. Bower, Director of Human Resources Unit Side Lett~ I The "Total Employ~ Pates" u.~d in this example were provid~ to the City by pN. RS. 'gLK-9/14/04 TOTAL P.06 SEP-2S-2004 1S:3S SSF HUMAN RESOURCES 650 S29 669~ P.02/06 Side Letter J to the Current Memorandum of Understanding Between the City of South San Francisco and the Confidential Unit, Teamsters Local 856 WHEREAS, the City of South San Francisco (City) and the Confidential Unit, Teamsters Local 856 (Local 856) previously agreed to a Memorandum of Understanding with effective dates July 1, 2000 through June 30, 2003 and extended to June 30, 2006 (MOU); and WHEREAS, the City and Local 856 have met and conferred in good faith on the subject of md conditions for extending the current MOU by two years to be effective through June 30, 2008. IT IS HEREBY AGREED THAT THE CI. rRRENT MOU BETWEEN THE CITY AND LOCAL 856 SHALL BE EXTENDED FOR TWO YEARS AND EFFECTIVE THROUGH JUNE 30, 2008 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH BELOW: 1. WageInereases Effective the payperiod including July 1, 2006, the base rate of pay for all employees shall be increased by 3.0%. Effective the payperiod including July 1, 2007, the base rate of pay for all employees shah be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed upon survey agencies, using the same methodology as used during the current MOU. 2. VEBA Employees in this unit shall continue to be eligible to participate in the Voluntary Employee Benefit Association (VEBA) program previously provided by the City. VEBA contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post- retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays). Participants may use accrued, unused vacation payoffg to be automatically deposited into the employee's VEBA account each January, provided the employee has utilized a minimum of 64 hours of paid vacation during the previous calendar year. Upon separation from employment, the employee may designate that the remaining portion of any mused vacation, discretionary holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account. SEP-29-2004 15:3S SSF HUMAN RESOURCES Side Letter J Bctwe, e~ City of SSF ~d Co~d~al U~ Te~m~t~ ~al 856 Pag~ 2 P.03/06 3. Maintenance of Benefit~ During the 2007-08 and 2008-09 fiscal years, both the City and Local 856 agree to maintain the current level of health and welfare benefits, subject to the Re-opener provision below. 4. Re-Openers During the 2006-07 and 2007-08 fiscal years, both the City and Local 856 will have the fight to re-open for negotiations one subject that is included, specifically discussed, and governed by the curr~nt MOU. Should either the City or Local 856 wish m re-open any subject covered by the current MOU contract extension, it must notify the other party ac later than May 1st, except that a party that receives notice that the other party wishes to re-open a section of the MOU shall have 30 calendar days to respond that it also wishes to re-open a section of the MOU. Thus, for example, if the City received notice from Local 856 on May 1, 2006 that Local 856 wished to re-open a section o1: the MOU, the City would have u~til May 31, 2006 to notify Local 856 that the City also wanted to re-open a section of the MOU. Any notice that a party wishes to re-open a section of the MOU pursuant to its fights under this Side Letter must be in writing, and specify the section of the MOU. While the parties are not obligated to reach agreement on any re-opener issue, they shall meet and confer in good faith. The parties shall not be required to utilize or exhaust any impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or practice, agreement, or state or federal law. This Side Letter shall not affect the parties' previously held meet and confer rights and obligations except as specifically set forth in this Side Letter. J6seph~mthier, President, Teamsters, Local 856 Confidential U~it agel~ City3/Iana~. je~ower, Director of Humma Resources S:',Empioycc Relafions~.EgCl~-mlatieaa~C,om`W-~af Side Letter J.DOC Date Date Date 714~26=1 Side Letter to the Current Memorandum of Understanding Between the City of South San Francisco and the International Union of Operating Engineers, Local 39 WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PERS) retirement benefit it provides to employees represented by the International Union of Operating Engineers, Local 39 (Local 39) from the retirement benefit commonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; and WHEREAS, the City's agreement to provide Local 39 employees with the enhanced 2.7% at 55 retirement benefit is set forth in Section 7.12.4 of the current Memorandum of Understanding between the City and Local 39 with effective dates January 1, 2003 through December 31, 2007 (MOU); and WHEREAS, in addition to the higher "normal cost" associated with the City providing Local 39 employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 2.7% at 55 retirement benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public ag~mcies, who are facing f'mancial hardship, the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing the Local 39 employees with the 2.7% at 55 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's financial condition is; such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has in the recent past calculated wage increases for Local 39 employees by fu'st comparing certain categories of compensation (total compensation) with the amounts paid/provided by certain survey agencies, and then adjusting Local 39 employees' wages, as and if required, to keep Local 39 employees at the 60th percentile of the survey agencies; and International Union of Operating Engineers, Local 39 Side Letter Re PERS Fresh Start September 15, 2004 Appendix F Page 2 WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to the applicable survey agencies; and WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer contribution rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate wa,,;, accordingly lowered, since employees would be entitled to the same 2.7% at 55 PERS benefit, the City already pays the employee's PERS contribution, and participation in the Fresh Start program would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Local 39 have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Local 39 employees, if any, during the remaining term of their current MOU: 1T IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate that results from the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Local 39 employees than if the City had not participated in the Fresh Start program. 2. For the remainder of this contract term, any total compensation comparison used by the City or Local 39 for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation fi)r Local 39 employees shall include what the City's total PERS employer rate would have been if' the City had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2004-05, 2005-06, and 2006/07 Fiscal Years. E~K-9/~4/04 S:kEmployee RelationsXEERelations\Op Eng\OE Side Letter F Fresh Start. DOC International Union of Operating Engineers, Local 39 Side Letter Re PERS Fresh Start September 15, 2004 Appendix F Page 3 Total Employer Rate in FY 2005~ If Do not Participate in Fresh Start ........... 16.051 Total Employer Rate in FY 2005 If Do Participate in Fresh Start ................... 13.448 Difference .......................................................................................................... 2.60 Total Employer Rate in FY 2006 If Do not Participate i:n Fresh Start ............15.65 Total Employer Rate in FY 2006 If Do Participate in Fresh Start ................... 13.448 Difference ........................................................................................................... 2.20 Total Employer Rate in FY 2007 If Do not Participate in Fresh Start ............ 15.268 Total Employer Rate in FY 2007 If Do Participate in Fresh Start ................... 13.448 Difference .......................................................................................................... 1.82 Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage increase was appropriate or required, the City's total compensation for purposes of the comparison would include the 16.051% employer rate rather than the 13.448% rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal Year. 3. This Side Letter shall only be effective during the term of the current MOU, and shall expire effective December 31, 2007. 4. This Side Letter shall be limited to the VEBA provision listed below and total compensation surveys mandated by the current MOU, or any written agreement between the City and Local 39, executed subsequent to this Side Letter and prior to December 31, 2007, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. 5. Employees in this unit shall continue to be eligible to participate in the Voluntary Employee Benefit Association (VEBA) program previously provided by the City. VEBA contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post- retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays). Participants may use accrued, unused vacation payoffs to be automatically deposited into the employee's VEBA account each January, provided the employee has utilized a minimum of 64 hours of paid vacation during the previous calendar year. Upon separation from employment, the employee may designate that the remaining portion of any unused vacation, discretionary holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account. The "Total Employer Rates" used in this example were provided to the City by PERS. E~:-9/~4/04 S:kEmployee RelationskEERelations\Op EngkOE Side Letter F Fresh Start. DOC SEP-29-2~04 15:54 SSK HUMAN RESOURCES ILIOE LOCAL~8 6598 PAGE 82 P.D5/B5 Internmioaal Urdon of Operating Enghaeers, Local 39 gide Letter K~ PEAKS Fresh Start September 15, 2004 Appendix F Page ¢ For x) ay :. yrm g, B~ss Agent ' bat, ' For Local 39: Jerry Kalmar Date gel~ City-~/'h~cr Date to -- r of Human Resources ElK-g/14/04 S:~Employee RelaticmskEEKelat~on~\Ol~ Eng\OE Side Letter F Fresh Start.DOC TOTAL P,B5 Side Letter H to the Current Memorandum of Understanding Between the City of South San Francisco and the International Association of Firefighters, Local 1507 WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PERS) retirement benefit it provides to employees represented by the International Association of Firefighters, Local 1507 (Local 1507) from the retirement benefit commonly known as 2.5% at 50 to the retirement benefit commonly known as 3.0% at 50; and WHEREAS, the City's agreement to provide Local 1507 employees with the enhanced 3% at 50 retirement benefit is set forth in Section 8.10 of the current Memorandum of Understanding between the City and Local 1507 with effective dates January 1, 2001 through June 30, 2006 (MOU); and subsequently extended to June 30, 2009 as indicated in Side Letter I signed by both parties. WHEREAS, in addition to the higher "normal cost" associated with the City providing Local 1507 employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the 'h.mfunded liability" associated with the cost of providing enhanced 3% at 50 retirement benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing f'mancial hardship, the oppommity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing Local 1507 employees with the 3.0% at 50 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's financial condition is such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has in the recent past calculated wage increases for Local 1507 employees by first comparing certain categories of compensation (total compensation) with the amounts paid/provided by certain survey agencies, and then adjusting Local 1507 employees' wages, as and if required, to keep Local 1507 employees at the 60th percentile of the survey agencies; and Intemational Association of Firefighters, Local 1507 Side Letter Re PERS Fresh Start September 15, 2004 Appendix H Page 2 WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to the alpplicable survey agencies; and WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among; the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly, lowered, since employees would be entitled to the same 3% at 50 PERS benefit, the City already pays the employee's PERS contribution, and participation in the Fresh Start progra:m would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Local 1507 have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Local 1507 employees, if any, during the term of their current MOU: IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate that results from the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Local 1507 employees than if the City had not participated in the Fresh Start program. 2. For any total compensation comparison used by the City or Local 1507 for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation for Local 1507 employees shall include what the City's total PERS employer rate would have been if the City had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between it,,; actual rate and what the PERS employer rate would have been if the City had not participated ha the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2005-06, 2006-07, 2007-08, and 2008-09 Fiscal Years. Total Employer Rate in FY 2005~ If Do not Participate in Fresh Start 32.463% Total Employer Rate in FY 2005 If Do Participate in Fresh Start Difference 27.562% -4.90% The "Total Employer Rates" used in this example were provided to the City by PERS. ELK-09/I$/04 International Association of Firefighters, Local 1507 Side Letter Re PERS Fresh Start September 15, 2004 Appendix H Page 3 Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2005-06 Fiscal Year to determine whether a wage increase was appropriate or required, the City's total compensation for purposes of the comparison would include the 32.463% employer rate rather than the 27.562% rate the City will actually have to contribute as its employer contribution in the 2005-06 Fiscal Year. Total Fire Employer Rate in FY 2004/05 If Do not Participate in Fresh Start ............................................ 32.463 Total Fire Employer Rate in FY 2004/05 If Do Participate in Fresh SUm ................................................. 27.562 Difference ..................................................................................................................................................... 4.90 Total Fire Employer Rate in FY 2005/06 If Do not Participate in Fresh Start ........................................... 31.762 Total Fire Employer Rate in FY 2005/06 If Do Participate in Fresh Start ................................................. 27.562 Difference .................................................................................................................................... : ................ 4.20 Total Fire Employer Rate in FY 2006/07 If Do not Participate in Fres]~ Start ........................................... 31.10 Total Fire Employer Rate in FY 2006/07 If Do Participate in Fresh S~art ................................................. 27.562 Difference .................................................................................................................................................... 3.54 Total Fire Employer Rate in FY 2007/08 If Do not Participate in Fres]h Start ........................................... 30.49 Total Fire Employer Rate in FY 2007/08 If Do Participate in Fresh Start ................................................. 27.562 Difference .................................................................................................................................................... 2.92 Total Fire Employer Rate in FY 2008/09 If Do not Participate in Freslh Start ........................................... 29.91 Total Fire Employer Rate in FY 2008/09 If Do Participate in Fresh Start ................................................. 27.562 Difference .................................................................................................................................................... 2.34 3. This Side Letter shall only be effective during the term of the current MOU and its extension signed September 2004, and shall expire effective June 30, 2009. 4. This Side Letter shall be limited to total compensation surveys mandated by the current MOU, or any written agreement between the City and Local 1507, executed subsequent to this Side Letter and prior to June 30, 2006, that requires the City to conduct a total compensation survey for the pAurpose of analyzing wag~ or some other eleCen~f total compensation. l~ike I~rause, Chapter PreSident/ .... ,~ Date I~,..FF, Local 1507 a~gel Date City Manager et ~ '-,/ Dfite Dir~_~f Human Resources S:',Employee RelationsXEERelations\lAFFXlAFF Side Letter H Fresh Start. DOC ELK-09/15/04 Side Letter I to the Current Memorandum of Understanding Between the City of South San Francisco and the International Association of Firefighters, Local 1507 WHEREAS, the City of South San Francisco (City) and Intemational Association of Firefighters, Local 1507 (IAFF) previously agreed to a Memorandum of Understanding with effective dates July 1, 2001 to June 30, 2006 (MOU); and WHEREAS, the City and IAFF have met and conferred in good faith on the subject of and conditions for extending the current MOU by three years to be effective through June 30, 2009. IT IS HEREBY AGREED THAT THE CURRENT MOU BETWEEN THE CITY AND IAFF SHALL BE EXTENDED FOR THREE YEARS AND EFFECTIVE THROUGH JUNE 30, 2009 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH BELOW: 1. Wage Increases Effective the payperiod including July 1, 2006, the base rate of pay for all employees shall be increased by 3.0%. Effective the payperiod including July 1, 2007, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed upon survey agencies, using the same methodology as used during the current MOU, except as modified and agreed to in the Side Letter between the City and IAFF regarding the PERS Fresh Start Program, signed by the parties. Effective the payperiod including July 1, 2008, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation for the previously agreed upon survey agencies, using the same methodology as used during the current MOU, except as modified and agreed to in the Side Letter between the City and IAFF regarding the PERS Fresh Start Program,. signed by the parties. 2. Paramedic/Firefighter Promotions to Fire Apparatus Engineer During the term of this MOU and its extension and no later than November 1, 2004, a Paramedic/Firefighter who promotes to a Fire Apparatus Engineer shall be y-rated at the same base pay as the individual received as a Paramedic/Firefighter so that the promotion does not cause a decrease in the individual's base pay. The y-rated level of base pay for the new Fire Side Letter I Between City of SSF and IAFF Page 2 Apparatus Engineer shall cease once the individual's pay step in the Fire Apparatus Engineers salary range would equal or exceed the individual's y-rated amount. 3. Fitness For Duty The City and IAFF have previously met and conferred and currently intend to meet and confer further on the subject of fitness for duty. The parties agree that these fitness for duty discussions have not been part of, and will not be incorporated into, the current MOU or this MOU extension. The parties' agreement to this MOU extension does not modify their respective rights and obligations on the subject of fitness for duty or affect the parties' rights or ability to continue to discuss this subject. 4. VEBA Employees in this unit shall continue to be eligible to participate in the Voluntary Employee Benefit Association (VEBA) program previously provided by the City. VEBA contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post- retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays). Participants may use accrued, unused vacation payoffs to be automatically deposited into the employee's VEBA account each January, provided the employee has utilized a minimum of 64 hours of paid vacation during the previous calendar year. Upon separation from employment, th~ employee may designate that the remaining portion of any unused vacation, discretionary holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account. 5. Re-Openers During the 2006-07, 2007-08, and 2008-09 fiscal years, both the City and IAFF will have the right to re-open for negotiations one subject that is included, specifically discussed, and governed by the current MOU. Should either the City or IAFF wish to re-open .any subject covered by the current MOU contract extension, it must notify the other party no later than August 1 st, except that a party that receives notice that the other party wishes to re-open a section of the MOU shall have 30 calendar days to respond that it also wishes to re-open a section of the MOU. Thus, for example, if the City received notice from IAFF on August 1, 2006 that IAFF wished to re-open a section of the MOU, the City would have until August 31, 2006 to notify IAFF that the City also wanted to re-open a section of the MOU. Any notice that a party wishes to re-open a section of the MOU pursuant to its rights under this Side Letter must be in writing, and specify the section of the MOU. While the parties are not obligated to reach agreement on any re-opener issue, they shall meet and confer in good faith. The parties shall not be required to utilize or exhaust any impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or practice, agreement, or state or federal law. ELK-9/30/04 714926-1 SSEmployee Relations~EERelations~IAFFXlAFF Side Letter I.DOC Side Letter I Between City of SSF and IAFF Page 3 This Side Letter shall not affect the parties' previously held meet and confer rights and obligations except as specifically set forth in this Side Letter. Date Barr~Nagel ~i¢ Manager Date J wer Dir~ct6r of Human Resources ELK-9/30/04 S:kEmployee Relations~ERelationsklAFF\lAFF Side Letter I.DOC 714926-1 Side Letter H to the Current Memorandum of Understanding Between the City of South San Francisco and the South San Francisco Police Association WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PERS) retirement benefit it provides to employees represented by the Police Association from the retirement benefit for sworn police members commonly known as 2% at 50 to the retirement benefit commonly known as 3.0% at 50 and the retirement benefit for miscellaneous police members commonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; trod WHEREAS, the City's agreement to provide Association employees with the enhanced 3% at 50 retirement benefit is set forth in Section 6.2.2.4 and G3 of the current Memorandum of Understanding and its extension between the City and the Association with effective dates January 1, 2001 through December 31, 2004 and extended from January 1, 2005 through December 31, 2006 (MOU); and WHEREAS, in addition to the higher "normal cost" associated with the City providing Association employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 3% at 50 and 2.7% at 55 retireraent benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing financial hardship, the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing Association employees with the 3.0% at 50 and 2.7% at 55 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's financial condition is such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has in the recent past calculated wage increases for Association employees by first comparing certain categories of compensation (total compensation) with the South San Francisco Police Association Side Letter Ke PERS Fresh Start September 30, 2004 Appendix H Page 2 amounts paid/provided by certain survey agencies, and then adjusting Association employees' wages, as and if required, to keep Association employees at the 60th percentile of the survey agencies; and WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to the applicable survey agencies; and WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly, lowered, since employees would be entitled to the same 3% at 50 and/or 2.7% at 55 PERS benefit, the City already pays the employee's PERS contribution, and participation :in the Fresh Start program would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Association have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth bel,ow to modify how the City will conduct total compensation comparisons affecting Association employees, if any, during the term of their current MOU: IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate that results from the City's participation in the Fresh Start program shall not cause the City to pay' more in wage or other compensation or benefits to Association employees than if the City had not participated in the Fresh Start program. 2. For any total compensation comparison used by the City or Association for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation for Association employees shall include what the City's total PERS employer rate would have been if the City had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2005-06 Fiscal Year South San Francisco Police Association Side Letter Re PERS Fresh Start September 30, 2004 Appendix H Page 3 Total Police Employer Rate in FY 2005~ If Do not Participate in Fresh Start ............................................ 33.528 Total Police Employer Rate in FY 2005 If Do Participate in Fresh Start .................................................. 27.750 Difference .................................................................................................................................................. 5.78 Total Police Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................................ 32.509 Total Police Employer Rate in FY 2006 If Do Participate in Fresh Start .................................................. 27.750 Difference .................................................................................................................................................. 4.76 Total Miscellaneous Employer Rate in FY 2005 If Do not Participate in Fresh Start ................................ 16.051 Total Miscellaneous Employer Rate in FY 2005 If Do Participate in Fresh Start ..................................... 13.448 Difference .................................................................................................................................................. 2.60 Total Miscellaneous Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................... 15.65 Total Miscellaneous Employer Rate in FY 2006 If Do Participate in Fresh Start ..................................... 13.448 Difference .................................................................................................................................................. 2.20 Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2004-05 Fiscal Year to determine whether a wage increase for sworn police members was appropriate or required, the City's total compensation for purposes of the comparison would include the 33.528% employer rate rather than the 27.750% rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal Year. 3. This Side Letter shall only be effective during the term of the current MOU, and shall expire effective December 31, 2006. 4. This Side Letter shall be limited to total compensation surveys mandated by the current MOU, or any written agreement between the City and Association, executed subsequent to this Side Letter and prior to December 31, 2006, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. Name, Title Date Police Association The "Total Employer Rates" used in this example were provided to the City by PERS. South San Francisco Police Association Side Letter Re PERS Fresh Start September 30, 2004 Appendix H Page 4 B an'~M~ Nagel City Manager Date of Human Resources / Date ELK S:kEmployee RelationsXEERelationskPolicekPA Side Letter H Fresh Start. DOC Side Letter I to the Current Memorandum of Understanding Between the City of South San Francisco and the South San Francisco Police Association WHEREAS, the City of South San Francisco (City) and the South San Francisco Police Association (Association) previously agreed to a Memorandum of Understanding with effective dates January 1, 2001 to December 31, 2004 and extended from January 1, 2005 through December 31, 2006 (MOU); and WHEREAS, the City and Association have met and conferred in good faith on the subject of and conditions for extending the current MOU by two years to be effective through December 31, 2008. IT IS HEREBY AGREED THAT THE CURRENT MOU BETWEEN THE CITY AND ASSOCIATION SHALL BE EXTENDED FOR TWO YEARS AND EFFECTIVE THROUGH DECEMBER 31, 2008 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH BELOW: 1. Wage Effective the payperiod including January 1, 2006, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed-upon survey agencies, using the same methodology as used during the current MOU, except as modified and agreed to in the Side Letter between the City and the Association regarding the PERS Fresh Start Program, signed by the parties in October 2004, and as set forth in the remainder of this paragraph. For the payperiod including January 1, 2005, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed-upon survey agencies using the same methodology as agreed to during the current MOU, except the PERS rates will be those rates established on 7/1/04 by PERS for survey agencies. For the 2006 adjiustment only, the modified Fresh Start survey methodology agreed to in the October 2004 Side Letter shall be further modified for any survey agency that also contracts for PERS' Fresh Start Program. Specifically, that agency's PERS employer contribution rate used to determine that agency's total compensation in the survey shall be the agency's employer contribution rate (not adjusted due to the Fresh Start Program), unless the parties are able to confirm, and thus utilize, what would have been that agency's actual higher PERS employer contribution rate had the agency not contracted for the Fresh Start Program. If the prior Fresh Start contribution rate cannot be established, the City will use the South San Francisco Fresh Start percentage modifier. Side Letter I Between City of SSF and PA Page 2 Effective the pay period including January 1, 2007, the base rate of pay for all employees shall be increased by the same percentage as any increase in the CPI (U) for the San Francisco, Oakland, San Jose area during the 2006 calendar year (i.e. the percentage increase for the 12- month period from January 1, 2006 to December 31, 2006). Effective the pay period including January 1, 2008, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed-upon survey agencies, using the same methodology as used during the current MOU, except as modified and agreed to in the Side Letter between the City and the Association regarding the PERS Fresh Start Program, signed by the parties in September 2004. 2. VEBA Employees in this unit shall continue to be eligible to participate in the Voluntary Employee Benefit Association (VEBA) program previously provided by the City. VEBA contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post- retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays). Participants may use accrued, unused vacation payoffs; to be automatically deposited into the employee's VEBA account each January, provided the employee has utilized a minimum of 64 hours of paid vacation during the previous calendar year. UPon separation from employment, the employee may designate that the remaining portion of any unused vacation, discretionary holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account. 3. Benefits In September 2004, the City has also been negotiating MOU and Compensation Plan extensions with its other employee groups, including IAFF Local 1507, AFSCME Local 1569, Teamsters Local 856, IUOESEL Local 39, the Public Safety Managers Unit, the Mid- Management Unit, and the Executive Management Unit (hereafter, "the 2004 Negotiations"). The City agrees that the Association shall be entitled to receive any increase in health and welfare benefits, including any enhancement to health, retirement, or leave benefits, granted to any of the above-referenced other employee groups dtmlng the 2004 Negotiations, if the cost of the increase if applied to the Association would be valued at 0.5% or more of the Association's base salary. This right shall not extend, however, to any' wage increase negotiated by or granted to any other employee group. This provision also shall not apply to any increase that another employee group may have negotiated or will receive as a result of a re-opener provision in their MOU or Compensation Plan. 4. Re-Opener Both the City and Association shall have the right to re-open for negotiations any aspect of the salary survey referenced in Section 2 of this Side Letter, that would otherwise be used to calculate the wage increase, if any, for Association employees in 2008. Should either the City or ELK-9/30/04 714926-1 CSDocuments and Settings\jazzopar. POLICE\Local Settings\Temporary Internet Files\OLKFSk2004 MOU Extention.doc Side Letter I Between City of SSF and PA Page 3 Association wish to re-open on the subject of the salary .survey, it must notify the other party, in writing, between January 1, 2007 and June 1, 2007. While the parties are not obligated to reach agreement on any change in the salary survey methodology, they shall meet and confer in good faith. Any change must be "mutually agreed" to without utilizing or exhausting any impasse, impasse resolution, arbitration procedure, or imposition of the change that, in the absence of this paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or practice, agreement, or state or federal law. Name, Title Police Association Date Bah'~.Nagel, City'Manager Date //Date ELK-9/30/04 C:kDocuments and Settings\jazzopar. POLICEXLocal Settings\Ten-~orary Internet Files\OLKFSk2004 MOU Extention. doc 714926-1 Side Letter G to the Current Compensation Plan Between the City of South San Francisco and the Mid-management Unit WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PERS) retirement benefit it provides to unrepresented Mid-management unit employees from the', retirement benefit commonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; and WHEREAS, the City's agreement to provide the Mid-management employees with the enhanced 2.7% at 55 retirement benefit is set forth in Sec, tion 7.12.4 of the current Compensation Plan between the City and the Mid-management Unit with effective dates July 1, 2000 to June 30, 2003 extended from July 1, 2003 through September 30, 2007 (CP); and WHEREAS, in addition to the higher "normal cost" associated with the City providing Mid-management Unit employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 2.7% at 55 retirement benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing financial hardship, the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would penTiit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing the Mid-management Unit employees with the 2.7% at 55 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's f'mancial condition is such that short-term financial savings offered by the Fresh Start program would help the Cky ha its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has in the recent past calculated wage increases for Mid- management Unit employees by first comparing certain categories of compensation (total compensation) wkh the amounts paid/provided by certain survey agencies, and then adjusting Mid-management Unit employees' wages, as and if required, to keep Mid-management Unit employees at the 60th percentile of the survey agencies; and Mid-management Unit Side Letter Re PERS Fresh Start September 15, 2004 Appendix G Page 2 WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to 'the applicable survey agencies; and WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer contribution rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly lowered, since employees would be entitled to the same 2.7 at 55 PERS benefit, the City already pays the employee's PERS contribution, and participation in the Fresh Stm't program would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Mid-management Unit have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Mid-management Unit employees, if any, during the remaining term of their current CP: IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate that results fi.om the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Mid-management Unit employees than if the City had not participated in the Fresh Start program. 2. For the remainder of this contract term, any total compensation comparison used by the City or Mid-management Unit for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation for Mid-management Unit employees shall include what the City's total PERS employer rate would have been if the Cky had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to &), or are required to do, during the 2004- 05, 2005-06, and 2006-07 Fiscal Years. ELK-9/14/04 S:kEmployee RelationskEERelationskMid-mgmtkMM Side Letter G Fresh Start. DOC Mid-management Unit Side Letter Re PERS Fresh Start September 15, 2004 Appendix G Page 3 Total Employer Rate in FY 2005~ If Do not Participate/n Fresh Start .......... 16.051 Total Employer Rate in FY 2005 If Do Participate in Fresh Start ................. 13.448 Difference .................................................................................................... 2.60 Total Employer Rate in FY 2006 If Do not Participate in Fresh Start ........... 15.65 Total Employer Rate in FY 2006 If Do Participate in Fresh Start ................. 13.448 Difference .................................................................................................... 2.20 Total Employer Rate in FY 2007 If Do not Participate in Fresh Start ........... 15.268 Total Employer Rate in FY 2007 If Do Participate in Fresh Start ................. 13.448 Difference ..................................................................................................... 1.82 Under this example, if the parties chose to or are required to conduct a totat compensation comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage increase was appropriate or required, the City's total compensation for purposes of the comparison would include the 16.051% employer rate rather than the 13.448% rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal Year. 3. This Side Letter shall only be effective during the term of the current CP, and shall expire effective September 30, 2007. 4. This Side Letter shall be limited to total compensation surveys mandated by the current CP, or any written agreement between the City and Mid-management Unk, executed subsequent to this Side Letter and prior to September 30, 2007, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. For Mid-management Unit: Name and Title Date Barry M. Nagle, City Manager Date Jennifer A. Bower, Director of Human Resources Date The "Total Employer Rates" used in this example were provided to the City by PERS. ELK-9/14/04 S:LEmployee RelationskEERelationsLMid-mgmtLMM Side Letter G Fresh Start. DOC Side Letter H to the Current Compensation Plan Between the City of South San Francisco and the Mid-management Unit WHEREAS, the City of South San Francisco (City) and the Mid-management employees previously agreed to a Compensation Plan with effective dates July 1, 2000 through June 30, 2003 and extended to September 30, 2007 (CP); and WHEREAS, the City and Mid-management representatives have met and conferred in good faith on the subject of and conditions for again extending the current Compensation Plan by two years to be effective through September 30, 2009. IT IS HEREBY AGREED THAT THE CURRENT COMPENSATION PLAN BETWEEN THE CITY AND THE MID-MANAGEMENT UNIT SHALL BE EXTENDED FOR TWO YEARS AND EFFECTIVE THROUGH JUNE 30, 2009 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH BELOW: 1. Wage Increases Effective the payperiod including July 1, 2006, the base rate of pay for all employees shall be increased by the same percentage as any increase in the CPI(U) for the San Francisco, Oakland, San Jose area for the previous 12-month period. Effective the payperiod including July 1, 2007, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed upon survey agencies, using the same methodology as used during the current CP. Effective the payperiod including July 1, 2008,. the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation of the previously agreed upon survey agencies, using the same methodology as used during the current CP. 2. Me Too Salary Clause Effective the payperiod including July 1, 2006, the base rate of pay for all employees shall be increased by the CPI as indicated in the Wage Increase section above. However, if the CPI is .5% of salary or more below the fixed rate increase as granted IAFF on that same date, this unit shall receive the fixed rate of 3%. For exarnple, if the increase is CPI(U) 2.51% or greater, this will be the increase given the Mid-management unit. If this CPI(U) increase is 2.50% or less, employees shall receive an increase of 3.0%. Side Letter H Between City of SSF and Mid-management Unit Page 2 3. Maintenance of Benefits During the 2007-08 and 2008-09 fiscal years, both the City and the Mid-management Unit agree to maintain the current level of health and welfare benefits, subject to the Re-opener provision below. 4. Re-Openers During the 2007-08 and 2008-09 fiscal years, both the City and the Mid-management Unit representations will have the right to re-open for negotiations one subject that is included, specifically discussed, and governed by the current CP. Should either the City or the Mid-management Unit wish to re-open any subject covered by the current CP contract extension, it must notify the other party no later than September 1 st, except that a party that receives notice that the other party wishes to re-open a section of the CP shall have 30 calendar days to respond that it also wishes to re-open a section of the CP. Thus, for example, if the City received notice from the Mid-management Unit on September 1, 2007 that it wished to re-open a section of the CP, the City would have until October 1, 2007 to notify the Mid-management Unit that the City also wanted to re-open a section of the CP. Any notice that a party wishes to re-open a section of the MOU pursuant to its rights under this Side Letter must be in writing, and specify the section of the CP. While the parties are not obligated to reach agreement on any re-opener issue, they shall meet and confer in good faith. The parties shall not be required to utilize or exhaust any impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or practice, agreement, or state or federal law. This Side Letter shall not affect the parties' previously held meet and confer rights and obligations except as specifically set forth in this Side Letter. ~/l(a~/I~onan, Mid~-manag~ment Unit ELK-9/30/04 C:\Docum~nt* and Settings\jbower\Local Settings\Temporary Imtcmet Files\OLK94XMM Side Letter_HI.doe 09/30/04 Date 714926-1 Side Letter H Between City of SSF and Mid-management Unit Page 3 Jennife. r/AT[. ~3t'~wer~ Director of Hurn~an Resources ELK-9/30/04 C:\Doeuments and Settings\jbower\Loeal Settings\Temporary Internet Files\OLK94WIM_Side_Letter_H 1.doc 714926-1 Side Letter I to the Current Compensation Plan Between the City of South San Francisco and the Public Safety Managers Unit Employees WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PERS) retirement benefit it provides to Public Safety Managers Unit employees from the retirement benefit for both of its public safety sworn members commonly known as 2.5% at 55 to the retirement benefit commonly known as 3% at 50; and WHEREAS, the City's agreement to provide Public Safety Managers Unit employees with the enhanced 3% at 50 retirement benefit is set forth in Section 5.9.1.5 of the current Compensation Plan between the City and Public Safety Managers Unit (CP) with effective dates January 1, 2002 through December 31, 2004; and extended to June 30, 2006 (see Side Letter J). WHEREAS, in addition to the higher "normal cost" associated with the City providing Public Safety Managers Unit employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 3% at 50 retirement benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing financial hardship, the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing the Public Safety Managers Unit employees with the 3% at 50 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's financial condition is such that short-term f'mancial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to the applicable survey agencies; and Public Safety Managers Unit Employees Side Letter Re PERS Fresh Start September 28, 2004 Appendix I Page 2 WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer contribution rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly lowered, since employees would be entitled to the same 3% at 50 PERS benefit, the City akeady pays the employee's PERS contribution, and participation in the Fresh Start program would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Public Safety Managers Unit have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Public Safety Managers Unit employees, if any, during the remaining term of their cma'ent CP: IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate 'that results from the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Public Safety Managers Unit employees than if the City had not participated in the Fresh Start program. 2. For the remainder of this contract term, any total compensation comparison used by the City or Public Safety Managers Unit for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation for Public Safety Managers Unit employees shall include what the City's total PERS employer rate would have been if the City had not participated in the Fresh Start program. PUt differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2004~05, 2005-06, and 2006-07 Fiscal Years. ELK-0/14/04 SSEmployee Relations~EERelations~PSlVlSPSM Side Letter I Fresh Start.DOC Public Safety Managers Unit Employees Side Letter Re PERS Fresh Start September 28, 2004 Appendix I Page 3 Total Police Employer Rate in FY 2005 If Do not Participate in Fresh Start .............................................. 33.528 Total Police Employer Rate in FY 2005 If Do Participate in Fresh Start ................................................... 27.750 Difference ..................................................................................................................................................... 5.78 Total Police Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................................. 32.509 Total Police Employer Rate in FY 2006 If Do Participate in Fresh Start ................................................... 27.750 Difference .................................................................................................................................................... 4.76 Total Police Employer Rate in FY 2007 If Do not Participate in Fresh Start ............................................. 31.55 Total Police Employer Rate in FY 2007 If Do Participate in Fresh Start ................................................... 27.750 Difference .................................................................................................................................................... 3.80 Total Fire Employer Rate in FY 2005 If Do not Participate in Fresh Start ................................................. 32.463 Total Fire Employer Rate in FY 2005 If Do Participate in Fresh Start ......................................................27.562 Difference .................................................................................................................................................... 4.90 Total Fire Employer Rate in FY 2006 If Do not Participate in Fresh Start ................................................ 31.762 Total Fire Employer Rate in FY 2006 If Do Participate in Fresh Start ......................................................27.562 Difference .................................................................................................................................................... 3.54 Total Fire Employer Rate in FY 2007 If Do not Participate in Fresh Start ................................................ 30.49 Total Fire Employer Rate in FY 2007 If Do Participate in Fresh Start ......................................................27.562 Difference .................................................................................................................................................... 2.92 Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage increase was appropriate or required for police employees, the City's total compensation for purposes of the comparison would include the 33.528% employer rate rather than the 27.750% rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal Year. 3. This Side Letter shall only be effective during the term. of the current Compensation Plan, and shall expire effective June 30, 2006. 4. This Side Letter shall be limited to total compensation surveys mandated by the current Compensation Plan, or any written agreement between the City and Public Safety Managers Unit, executed subsequent to this Side Letter and prior to December 31, 2004, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. ELK-9/14/04 S 5Employee Relations~EERelations~PSM~PSM Side Letter I Fresh Start. DOC Public Safety Managers Unit Employees Side Letter Re PERS Fresh Start September 28, 2004 Appendix I Page 4 For Public Safety Managers Unit: Bob.~ttalion Chief For Public Safety Managers Unit: Mike Brosnan, Police Lieutenant ' ._B~)M. Nagel ~i~ff~13~ger Date Date Date Je~ft(r A. Brewer, D~Resources ELK-9/14/04 S:~Employee Relations~EERelations~PSM'xPSM Side Letter I Fresh Start. DOC Side Letter J to the Current Compensation Plan Between the City of South San Francisco and the Public Safety Managers Unit Employees WHEREAS, the City of South San Francisco (City) and the Public Safety Managers Unit (PSM) previously agreed to a Compensation Plan with effective dates January 1, 2002 to December 31, 2004 (CP); and WHEREAS, the City and PSM have met and conferred in good faith on the subject of and conditions for extending the current CP by 1 $ months years to be effective through June 30, 2006. IT IS HEREBY AGREED THAT THE CURRENT CP BETWEEN THE CITY AND PSM SHALL BE EXTENDED FOR EIGHTEEN MONTHS AND EFFECTIVE THROUGH JUNE 30, 2006 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH BELOW: 1. "Me Too" Compensation and Benefits During this CP extension, the City will continue to provide wage increases to Fire Service Public Safety Managers and Police Service Public Safety Managers according to the same "me too" practice as it previously has under the current CP (See CP, Section 2.1). The City also will continue during the term of the CP extension its current practices of providing those benefits previously provided to Fire Service Public Safety Managers as provided for employees represented by IAFF and providing those benefits as previously provided to Police Service Public Safety Managers as provided for employees represented by the Police Association. 2. VEBA Employees in this unit shall continue to be eligible to participate in the Voluntary Employee Benefit Association (VEBA) program previously provided by the City. VEBA contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post- retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays). Participants may use accrued, unused vacation payoffs to be automatically deposited into the employee's VEBA account each January, provided the employee has utilized a minimum of 64 hours of paid vacation during the previous calendar year. Upon separation from employment, the employee may designate that the remaining portion, of any unused vacation, discretionary holiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account. Side Letter J Between City of SSI: and Public Safety Managers Unit Page 2 3. Dental Benefits Study Section C. 1. of Appendix C to the current CP concerns the possibility of employees covered by the CP exploring the feasibility of increasing dental benefits and sets a deadline for a possible modification of January 1, 2003. The parties agree that this deadline shall be extended to December 31, 2005. 4. Re-Openers From January 1, 2005 through June 30, 2006, both the City and PSM will have the right to re-open for negotiations one subject that is included, specifically discussed, and governed by the current CP. Should either the City or PSM wish to re-open any subject covered by the current CP contract extension, it must notify the other party no sooner than August 1, 2005 and no later than October 1, 2005, except that a party that receives notice that the other party wishes to re-open a section of the CP shall have 30 calendar days to respond that it also wishes to re-open a section of the CP. Thus, for example, if the City received notice from PSM on August 1, 2005 that PSM wished to re-open a section of the CP, the City would have until August 31,2005 to notify PSM that the City also wanted to re-open a section of the CP..Any notice that a party wishes to re- open a section of the CP pursuant to its rights under this Side Letter must be in writing, and specify the section of the CP. While the parties are not obligated to reach agreement on any re-opener issue, they shall meet and confer in good faith. The parties shall not be required to utilize or exhaust any impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or practice, agreement, or state or federal law. This Side Letter shall not affect the parties' previously held meet and confer rights and obliga~ep~fically set forth in this Side Letter. Public S~[ty Manager Representative, Bob ~ion Chief Public Safety Manager Representative M~, snan, eoil/~CLi~ ' eutettant BarrfM. Nagel Ci~an'~ger Jenn~of Human Resources ELK-9/30/04 S:kEmployee RelatiomkEERelationskPSIv~Sid¢ Lett~ J PSM.DOC Date Date 714926-1 Side Letter to the Current Compensation Plan Between the City of South San Francisco and the Executive Management Employees WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PIERS) retirement benefit it provides to Executive Management employees from the retirement benefit for its miscellaneous members commonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; and for public safety executive management employees from the retirement benefit for its public safety sworn members commonly known as 2.5% at 55 to the retirement benefit commonly known as 3% at 50; and WHEREAS, the City's agreement to provide Executive Management employees with the enhanced 2.7% at 55 and 3% at 50 retirement benefit is set forth in Section H of the current Compensation Plan (CP) between the City and Executive Management with effective dates July 1, 2000 through September 30, 2003 and extended from July 1, 2003 through September 30, 2006; and WHEREAS, in addition to the higher "normal cost" associated with the City providing Executive Management employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 2.7% at 55 and the 3% at 50 retirement benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing f'mancial hardship, the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing the Executive Management employees with the 2.7% at 55 and 3% at 50 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's financial condition is such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and Executive Management Employees Side Letter Re PERS Fresh Start September 30, 2004 Appendix I Page 2 WHEREAS, the City has in the recent past calculated wage increases for Executive Management employees by first comparing certain categories of compensation (total compensation) with the amounts paid/provided by certain survey agencies, and then adjusting Executive Management employees' wages, as and if required, to keep Executive Management employees at the 75th percentile of the survey agencies; and WHEREAS, the City has, in the past, included the City's PERS employer contribution in the City's total compensation that has been compared to the applicable survey agencies; and WHEREAS, the City savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer contribution rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 75th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly lowered, since employees would be entitled to the same 2.7% at 55 PERS benefit and/or the 3% at 50 PERS benefit, the City already pays the employee's PERS contribution, and participation in the Fresh Start program would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Executive Management have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Executive Management employees, if any, during the remaining term of their current CP: IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the City's PERS employer rate that results from the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Executive Management employees than if the City had not participated in the Fresh Start program. 2. For the remainder of this contract term, any total compensation comparison used by the City or Executive Management for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation for Executive Management employees shall include what the City's total PERS employer rate would have been if the City had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been ELI~-9/~4/04 S:~Employee RelationsXEERelationsX~XmgmtD{_mgmt Side Letter I Fresh Start. DOC Executive Management Employees Side Letter Re PERS Fresh Start September 30, 2004 Appendix I Page 3 if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2004- 05, 2005-06, and 2006-07 Fiscal Years. Total Miscellaneous Employer Rate in FY 2005~ If Do not Participate in Fresh Start ............................... 16.051 Total Miscellaneous Employer Rate in FY 2005 If Do Participate in Fresh Start ...................................... 13.448 Difference .................................................................................................................................................... 2.60 Total Miscellaneous Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................... 15.65 Total Miscellaneous Employer Rate in FY 2006 If Do Participate in Fresh Start ...................................... 13.448 Difference .................................................................................................................................................... 2.20 Total Miscellaneous Employer Rate in FY 2007 If Do not Participate in Fresh Start ............................... 15.268 Total Miscellaneous Employer Rate in FY 2007 If Do Participate in Fresh Start ...................................... 13.448 Difference .................................................................................................................................................... 1.82 Total Police Employer Rate in FY 2005 If Do not Participate in Fresh Start .............................................. 33.528 Total Police Employer Rate in FY 2005 If Do Participate in Fresh Start ................................................... 27.750 Difference .................................................................................................................................................... 5.78 Total Police Employer Rate in FY 2006 If Do not Participate in Fresh Start ............................................. 32.509 Total Police Employer Rate in FY 2006 If Do Participate in Fresh Start ................................................... 27.750 Difference .................................................................................................................................................... 4.76 Total Police Employer Rate in FY 2007 If Do not Participate in Fresh Start ............................................. 31.55 Total Police Employer Rate in FY 2007 If Do Participate in Fresh Start ................................................... 27.750 Difference .................................................................................................................................................... 3.8 Total Fire Employer Rate in FY 2005 If Do not Participate in Fresh Start ................................................. 32.463 Total Fire Employer Rate in FY 2005 If Do Participate in Fresh Start ...................................................... 27.562 Difference .................................................................................................................................................... 4.90 Total Fire Employer Rate in FY 2006 If Do not Participate in Fresh Start ................................................ 31.762 Total Fire Employer Rate in FY 2006 If Do Participate in iFresh Start ......................................................27.562 Difference .................................................................................................................................................... 3.54 Total Fire Employer Rate in FY 2007 If Do not Participate in Fresh Start ................................................ 30.49 Total Fire Employer Rate in FY 2007 If Do Participate in Fresh Start ...................................................... 27.562 Difference .................................................................................................................................................... 2.92 Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage increase was appropriate or required for miscellaneous employees, the City's total compensation for purposes of the comparison would include the 16.051% employer rate rather than the 13.448% rate the City will actually have to contribute as its employer contribution in the 2004-05 Fiscal Year. 3. This Side Letter shall only be effective during the term of the current Compensation Plan, and shall expire effective September 30, 2006. The "Total Employer Rates" used in this example were provided to the City by PERS. ELK-9/14/04 S:~Employee Relations~;ERelationsLXmgmtDC~mgmt Side Letter I Fresh Start. DOC Executive Management Employees Side Letter Re PERS Fresh Start September 30, 2004 Appendix I Page 4 4. This Side Letter shall be limited to total compensation surveys mandated by the current Compensation Plan, or any written agreement between the City and Executive Management, executed subsequent to this Side Letter and prior to September 30, 2006, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. For ~xecutive Management: Name and Title Date Date ELK-9/14/04 SSEmployee Relations~EERelations~magmtXJ(angmt Side Letter I Fresh Start. DOC RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING AGREEMENTS WITH THE SOUTH SAN FRANCISCO CHAPTERS OF THE CONFIDENTIAL UNIT, TEAMSTERS LOCAL 856; INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 39; INTERNATIONAL ASSOCIATION OF FIREFIGHTERS (IAFF), LOCAL 1307; THE SOUTH SAN FRANCISCO POLICE ASSOCIATION, THE PUBLIC SAFETY MANAGERS UNIT, THE MID-MANAGEMENT UNIT, AND THE EXECUTIVE MANAGEMENT UNIT WHEREAS, staff recommends authorizing agreements with the South San Francisco Chapters of the Confidential Unit, Teamsters Local 856; International Union of Operating Engineers, Local 39; International Association of Firefighters (IAFF), Local 1507; the South San Francisco Police Association, the Public Safety Managers Unit, the Mid-management Unit, and the Executive Management Unit for the "Fresh Start" program to reduce the short-term cost of paying for PERS rates; and WHEREAS, attached is the final document that incorporates the agreed-upon language based on the negotiations held with this bargaining unit; and WHEREAS, Locals 856, 39, and 1507 are the recognized bargaining agencies for these diverse group of City staff. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby authorizes the South San Francisco Chapters of the Confidential Unit, Teamsters Local 856; International Union of Operating Engineers, Local 39; International Association of Firefighters (IAFF), Local 1507; the South San Francisco Police Association, the Public Safety Managers Unit, the Mid-management Unit, and the Executive Management Unit. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreements on behalf of the City of South San Francisco. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S:\Current Reso's\l 0-13-04mou.com.plan.res.doc ATTEST: City Clerk DATE: TO: FROM: SUBJECT: October 13, 2004 Honorable Mayor and City Council Jennifer A. Bower, Director of Human Resources Resolution Authorizing Agreement between the City of South San Francisco and the Employee Bargaining Unit and Approving the Memorandum of Understanding between of the City of South San Francisco and the South San Francisco Chapter of the American Federation of State, County, and Municipal Employees (AFSCME), Local 1569 RECOMMENDATION Adopt a resolution authorizing the City Manager to sign and accept the agreement with the South San Francisco Chapter of the American Federation of State, County, and Municipal Employees, (AFSCME), Local 1569. Local 1569 is the recognized bargaining agent for this group of City staff. BACKGROUND PERS is offering certain public agencies facing financial hardship the opportunity to participate in their "Fresh Start" program to reduce the short-term cost of paying for PERS rates. The Fresh Start program would permit the City to increase the number of years it would pay for the unfunded liabilities associated with providing City employees with their PERS benefits. The result would be that the City would have a lower PERS employer rate. Because the City's financial condition was such that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; the City and AFSCME met and discussed what could be done to minimize the financial impacts. Agreement has been reached for an extension to the current contract, based on Council's direction. A side letter agreement to each has been prepared with the review and approval of the City Attorney, incorporating these agreed-upon terms and conditions of employment. Staff Report Subject: (Resolution and Agreement between the City of South San Francisco and AFSCME) Page 2 Attached is the final document that incorporates the agreed-upon language based on the negotiations held with this bargaining unit. By: /~ ~fer Al Bower Dire~~ Human Resources City Manager Attachments ,/ MOU Addendum for AFSCME JAB-10/08/04 S:LOsR Staff~Jmnifer\Correspondence\City Council~Fresh Start~Ext 2B Reso.doc Side Letter J to the Current Memorandum of Understanding Between the City of South San Francisco and the American Federation of State, County, and Municipal Employees, Local 1569, AFL-CIO WHEREAS, the City of South San Francisco (City) agreed in 2002 to enhance the California Public Employees Retirement System (PERS) retirement benefit it provides to employees represented by the American Federation of State, County, and Municipal Employees, Local 1569, AFL-CIO (Local 1569) fi:om the retirement benefit comrnonly known as 2% at 55 to the retirement benefit commonly known as 2.7% at 55; and WHEREAS, the Cky's agreement to provide Local 1569 employees with the enhanced 2.7% at 55 retirement benefit is set forth in Section 1.2.2 of the current Memorandum of Understanding between the City and Local 1569 with effective dates July 1, 2000 through June 30, 2003 and extended to June 30, 2006 (MOU); and subsequently extended to June 30, 2008 as indicated in Side Letter K signed by both parties, and WHEREAS, in addition to the higher "normal cost" associated with the City providing Local 1569 employees with this enhanced retirement benefit, the City also has to pay an additional contribution to PERS to pay for the "unfunded liability" associated with the cost of providing enhanced 2.7% at 55 retirement benefits to employees who retire relatively soon, such that the City's contributions to PERS during these employees' employment are not sufficient to cover the costs of these employees' retirements; and WHEREAS, PERS is offering certain public agencies, who are facing financial hardship, the opportunity to participate in their "Fresh Start" program 1:o reduce the short-term cost of paying for these unfunded liabilities; and WHEREAS, the Fresh Start program would permit the City to increase the number of years within which it would have to pay for the unfunded liabilities associated with providing the Local 1569 employees with the 2.7% at 55 benefit from the usual 12 or 13 years, to 30 years, with the result that the City would have a lower PERS employer rate in the short term; and WHEREAS, the City's f'mancial condition is suclh that short-term financial savings offered by the Fresh Start program would help the City in its efforts to minimize or avoid layoffs, and to retain essential and valuable services; and WHEREAS, the City has in the recent past calculated wage increases for Local 1569 employees by f'n'st comparing certain categories of compensation (total compensation) with the amounts paid/provided by certain survey agencies, and then adjusting Local 1569 employees' wages, as and if required, to keep Local 1569 employees at the 60th percentile of the survey agencies; and American Federation of State, County, and Municipal Employees, Local 1569, AFL-CIO Side Letter Re PERS Fresh Start September 29, 2004 Appendix J Page 2 WHEREAS, the City has, in the past, included the ;City's PERS employer contribution in the City's total compensation that has been compared to the applicable survey agencies; and WHEREAS, the Cky savings which otherwise would occur due to a decrease in the employer rate under the PERS Fresh Start program would be lost if this reduced PERS employer contribution rate was used to determine the City's total compensation, since the reduced employer rate could result in a corresponding increase in employee wages under the previously used formula to ensure employees remain at the 60th percentile in total compensation among the survey agencies; and WHEREAS, employees would not suffer any adverse affect if the City participated in the Fresh Start Program and the City's employer rate was, accordingly lowered, since employees would be entitled to the same 2.7% at 55 PERS benefit, the City already pays the employee's PERS contribution, and participation in the Fresh Start prograra would not adversely affect employee's wages or other benefits; and WHEREAS, the City and Local 1569 have met and conferred regarding the benefits of the Fresh Start program, and have agreed as set forth below to modify how the City will conduct total compensation comparisons affecting Local 1569 employees, if any, during the remaining term of their current MOU: IT IS HEREBY AGREED THAT, if the City participates in the PERS Fresh Start program: 1. The decrease in the Cky's PERS employer rate that results fi:om the City's participation in the Fresh Start program shall not cause the City to pay more in wage or other compensation or benefits to Local 1569 employees than if the City had not participated in the Fresh Start program. 2. For the remainder of this contract term, any total compensation comparison used by the City or Local 1569 for the purpose of determining whether any or a particular wage increase is required or appropriate, the City's total compensation for Local 1569 employees shall include what the City's total PERS employer rate would have been if the City had not participated in the Fresh Start program. Put differently, the City will include in its total compensation for survey comparison purposes the sum of its actual employer rate and the percentage difference between its actual rate and what the PERS employer rate would have been if the City had not participated in the Fresh Start program. The following example demonstrates the parties' agreement on how they will use the City's PERS employer rate in any total compensation comparison that the parties decided to do, or are required to do, during the 2004-05 and 2005-06 Fiscal Years. ELK-9/14/04 American Federation of State, County, and Municipal Employees, Loc, al 1569, AFL-CIO Side Letter Re PERS Fresh Start September 29, 2004 Appendix J Page 3 Total Miscellaneous Employer Rate in FY 2004/05~ If Do not Participate in Fresh Start ........................ 16.051 Total Miscellaneous Employer Rate in FY 2004/05 If Do Participate h~ Fresh Start .............................. 13.448 Difference ........................................................................................................................................... 2.60 Total Miscellaneous Employer Rate in FY 2005/06 If Do not Participate in Fresh Start ......................... 15.65 Total Miscellaneous Employer Rate in FY 2005/06 If Do Participate ka Fresh Start .............................. 13.45 Difference ........................................................................................................................................... 2.20 Total Miscellaneous Employer Rate in FY 2006/07 If Do not Participate in Fresh Start .......................... 15.27 Total Miscellaneous Employer Rate in FY 2006/07 If Do Participate in Fresh Start .............................. 13.45 Difference ........................................................................................................................................... 1.82 Total Miscellaneous Employer Rate in FY 2007/08 If Do not Participate in Fresh Start ......................... 14.91 Total Miscellaneous Employer Rate in FY 2007/08 If Do Participate in Fresh Start .............................. 13.45 Difference ........................................................................................................................................... 1.46 Under this example, if the parties chose to or are required to conduct a total compensation comparison to survey agencies in the 2004-2005 Fiscal Year to determine whether a wage increase was appropriate or required, the City's total compensation for purposes of the comparison would include the 15.65% employer rate rather than the 13.448% rate the City will actually have to contribute as ks employer contribution in the 2004-05 Fiscal Year. 3. This Side Letter shall only be effective during the term of the current MOU, and shall expire effective June 30, 2006. 4. This Side Letter shall be limited to total compensation surveys mandated by the current MOU, or any written agreement between the City and Local 1569, executed subsequent to this Side Letter and prior to June 30, 2006, that requires the City to conduct a total compensation survey for the purpose of analyzing wage or some other element of total compensation. For Local 1569: Steve Van Zant, Chapter President Date For Local 1569: Kathleen Beebe, Business Agent Date Barry M. Nagel, City Manager Date Jennifer A. Bower, Director of Human Resources S:kEmployee Relations\EERelations\AFSCME\AFSCME Side Letter J Fresh Start. DOC ~ The "Total Employer Rates" used in this example were provided to the City by PERS. ELK-9/14/04 Date Side Letter K to the Current Memorandum of Understanding Between the City of South San Francisco and the American Federation of State, County, and Municipal Employees, Local 1569, AFL-CIO WHEREAS, the City of South San Francisco (City) and the American Federation of State, County, and Municipal Employees, Local 1569, AFL-CIO (Local 1569) previously agreed to a Memorandum of Understanding with effective dates July 1, 2000 through June 30, 2003 and extended to June 30, 2006 (MOU); and WHEREAS, the City and Local 1569 have met and conferred in good faith on the subject of and conditions for extending the current MOU by two yeazrs to be effective through June 30, 2008. IT IS HEREBY AGREED THAT THE CURRENT MOU BETWEEN THE CITY AND AFSCME SHALL BE EXTENDED FOR TWO YEARS ,AND EFFECTIVE THROUGH JUNE 30, 2008 ACCORDING TO AND SUBJECT TO THE CONDITIONS SET FORTH BELOW: 1. Wage Increases Effective the payperiod including July 1, 2007, the base rate of pay for all employees shall be increased, if and to the extent required, to keep e:mployees at the 60th percentile in total compensation of the previously agreed upon survey agencies, using the same methodology as used during the current MOU, except as modified and agreed to in the Side Letter between the City and AFSCME regarding the PERS Fresh Start Program, signe,d by the parties. Effective the payperiod including July 1, 2008, the base rate of pay for all employees shall be increased, if and to the extent required, to keep employees at the 60th percentile in total compensation for the previously agreed upon survey agencies, using the same methodology as used during the current MOU, except as modified and agreed to in the Side Letter between the City and AFSCME regarding the PERS Fresh Start Program, signed by the parties. 2. Sick Leave Management Plan Side Letter The City and AFSCME have previously met and conferred. The parties agree that the Sick Leave Management Plan Appendix G of the current MOU will be modified as follows. Section G.4.1 will have the words fi:om insert to end insert below added into the agreement. Full-time employees exceeding 56 hours or 7 occurrences of sick leave in a 12-month period w/ll be subject to a review of sick leave use - insert - for the calculation of sick leave threshold with absences for FMLA-qualifying leave, serious health conditions, and work- related injuries excluded - end insert. Side Letter K Between City of SSF and AFSCME Page 2 3. VEBA Employees in this unit shall continue to be eligible to participate in the Voluntary Employee Benefit Association (VEBA) program previously provided by the City. VEBA contributions are pre-tax, pre-FICA (Social Security/Medicare) and may be used for Post-retirement Unreimbursed Expenses only (such as medical and dental prescriptions or copays). Participants may use accrued, unused vacation payoffs to be automatically deposited into the employee's VEBA account each January, provided the employee has utilized a minimum of 64 hours of paid vacation during the previous calendar year. Upon separation fi:om employment, the employee may designate that the remaining portion of any unused vacation, discretionary lholiday, sick, and/or administrative leave payoffs be deposited into his/her VEBA account. 4. Maintenance of Benefits During the 2006-07 and 2007-08 fiscal years, both the City and AFSCME agree to maintain the current level of health and welfare benefits, subject to llhe Re-opener provision below. 5. Re-Openers During the 2006-07 and 2007-08 fiscal years, both the City and AFSCME will have the right to re-open for negotiations three subject(s) included, specifically discussed, and governed by the current MOU. Should either the City or AFSCME wish to re-open any subject covered by the current MOU contract extension, it must notify the other party no later tlhan September 1st, except that a party that receives notice that the other party wishes to re-open a section of the MOU shall have 30 calendar days to respond that k also wishes to re-open a section of the MOU. Thus, for example, if the City received notice fi:om AFSCME on September 1, 2006 that AFSCME wished to re-open a section of the MOU, the City would have until October 1, 2006 to ]notify AFSCME that the City also wanted to re-open a section of the MOU. Any notice that a party wishes to re-open a section of the MOU pursuant to its rights under this Side Letter must be in writing, and specify the section of the MOU. While the parties are not obligated to reach agreement on any re-opener issue, they shall meet and confer in good faith. The parties shall not be required to utilize or exhaust any impasse, impasse resolution, or arbitration procedure that, in the absence of this paragraph, they otherwise would be required to exhaust or utilize under any City policy, rule or practice, agreement, or state or federal law. ELK-9/30/04 S:\Employee Relations\EERelations\AFSCME\AFSCME Side Letter ICDOC 714926-1 Side Letter K Between City of SSF and AFSCME Page 3 This Side Letter shall not affect the parties' previously held meet and confer rights and obligations except as specifically set forth in this Side Letter. Steve Van Zant, Chapter President AFSCME, Local 1569 Date Kathleen Beebe, Business Agent AFSCME, Local 1569 Date Barry M. Nagel Date City Manager Jennifer A. Bower Director of Human Resources Date ELK-9/30/04 S:kEmployee Relations~EERelations\AFSCME\AFSCME Side Letter K.DOC 714926-1 RESOLUTION NO.____ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CAL~ORNIA A RESOLUTION AUTHORIZING AN[ AGREEMENT XVITH THE SOUTH SAN FRANCISCO CHAPTER OF THE AMERICAN FEDERATION OF STATE, COUNTY, AND MUNICIPAL EMPLOYEES, (AFSCME), LOCAL 1569 WHEREAS, staff recommends authorizing an agreement with the South San Francisco Chapter of the American Federation of State, County, and Municipal Employees, (AFSCME), Local 1569 for the "Fresh Start" program to reduce the short-term cost of paying for PERS rates; and WHEREAS, attached is the final document that incorporates the agreed-upon language based on the negotiations held with this bargaining unit; and WHEREAS, Local 1569 is the recognized bargaining agent for this group of City staff. NOW, THEREFORE, BE IT RESOLVED by the', City Council of the City of South San Francisco that the City Council hereby authorizes an agreement with the South San Francisco Chapter of American Federation of State, County, and Municipal Employees, (AFSCME), Local 1569. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreement on behalf of the City of South San Francisco. I hereby certify that the foregoing Resolution was :regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: S :\Current Reso's\ 10-13 -04chapter. of. american .federation .res. doc ATTEST: City Clerk StaffReport AGENDA ITEM #6 DATE: TO: FROM: SUBJECT: October 13, 2004 Honorable Mayor and City Council Marty Van Duyn, Assistant City Manager GREENDALE DRIVE REHABILITATION PROJECT; ENGINEERING FILE NO. 51-13231-0402; PROJECT NO. ST-03-4; BID NO. 2342 RECOMMENDATION It is recommended that the City Council, by motion, accept the Greendale Drive Rehabilitation Project as complete in accordance with the plans and specifications. BACKGROUND/DIS CUS SION The project constructed a new asphalt concrete pavement that includes the use of recycled asphalt and cement treated base, and all new related pavement striping and markings on Greendale Drive. On June 23, 2004, staffwas authorized, by City Council, to include the full pavement rehabilitation of Mitchell Avenue as part of the project since the scope of work and services are consistent with the Greendale Drive Rehabilitation Project, and for the City to benefit on the favorable unit prices LUIIIAU[UIA Dy LIIU CtJllLlak;L~)l, DI31LiOIL~LtLI i:tlltl ~,l,)., l. tlC.~ i:tllU. LIIU ecoiiomies _c___~_ m_ ~_ The combined projects were inspected by City staff and were completed in accordance with the plans and specifications. The project has a one-year warranty period, which takes effect upon acceptance by the City Council. Staff will file a Notice of Completion and release the payment performance bond and retention at the end of the thirty-day lien period. FUNDING The actual construction cost for the combined projects is $589,353.36. Below are the cost breakdowns of the project budget: Capital Improvement Project Funds = Westborough Water & Sanitary District = Total Project Budget = $580,353.46 $ 8,999.9O $589,353.36 Staff Report Subject: Date: Page 2 Greendale Drive Project October 13, 2004 After project acceptance, staff will invoice Westborough Water & Sanitary District in the amount of $8,999.90. Total project funding is $595,159.49 and is reflected in the City of South San Francisco's Capital Improvement Program. Sufficient funds are available for this project. By: Approved '"B'arl~ 1VE'. Nag~l City ManagerX,,,~ Attachment: Location Map "~,:~. H~.,KBOR WAY --:~u' ~ '"~, 7 J ~:z'~ .... Staff Report AGENDA ITEM #7 DATE: TO: FROM: SUBJECT: October 13, 2004 Honorable Mayor and City Council Marty Van Duyn, Assistant City Manager PARCEL MAP NO. 02-0088, FAIRFIELD SOUTH SAN FRANCISCO LLC. RECOMMENDATION It is recommended that the City Council, by motion, accept the offer of dedications for a public street and public use easements for sidewalk purposes, approve the Subdivision Improvement Agreement between the City of South San Francisco and Fairfield South San Francisco, LLC for the improvement of McLellan Drive as shown on Parcel Map 02-0088, and authorize the recordation of the map, the agreement, and any related documents. BACKGROUND/DISCUSSION The City Engineer and the City's Technical Reviewer, with the concurrence of all affected City departments and divisions, have determined that Parcel Map 02-0088, the Subdivision Improvement Agreement, McLellan Drive Public Improvement Plans, and related documents, are in compliance with the Subdivision Map Act, the City's Subdivision Ordinance and all applicable tentative map conditions of approval for the Fairfield Transit Village. The Parcel Map and Subdivision Improvement Agreement have been signed by the Subdivider. Parcel Map 02-0088 subdivides the property into three parcels and dedicates McLellan Drive for public street purposes. Parcels 1 and 3 are for the apartrnent complex and Parcel 2 is for a retail establishment. The public use easement dedications are along E1 Camino Real fronting the parcels. The developer will be constructing street improvements on McLellan Drive between E1 Camino Real and the BART access road. The improvement work is secured by the attached Subdivision Improvement Agreement and a $600,000 bond. Staff Report Subject: Date: Page 2 Parcel Map NO. 02-088, Fairfield South San Francisco LLC. October 13, 2004 The recommended motion will accept the easement dedications, approve the Public Improvement Agreement, and authorize recordation of the Parcel Map. By: ~X Assistant City Mana~r 'i Approved:,. Barry M. Nagel (._ City Manager Attachment: Final Map Location Map Improvement Agreement I© >33_ , o~oJ~ o~ m u~ o \ \ 2\ r o~oo~o N57'46'52"E 234.94 -0 °°~ o ~ L 9O.O (N39'29'28'E 244.61)(R2) PARCEL MAP NO. 02-0088 - ....... ! ......... FAIRFIELD SOUTH SAN FRANCISCO LLC .............................................................................................. i ......... ~ ............... PROJECT SITE MAP BY i APP'D. ~..S_C,~_I:E...~..I~T_~_ ................. APPROVED: DRAWN: KCM NO, DATE REVISION C]:TY OF SOUTH SAN FRANCTSCO DATE-08/12/04 CHECKED:DC DEPARTMENT OF PUBLIC WORKS SUBDIVISION IMPROVEMENT AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND FAIRFIELD SOUTH SAN FRANCISCO, LLC FOIl THE IMPIIOVEMENT OF MCLELLAN DRIVE AS SHOWN ON PAIlCEL MAP 02-0085 This AGREEMENT dated ,2004, by and between the City of South San Francisco, a municipal corporation, hereinafter designated "City," and Fairfield South San Francisco, LLC, a California Limited Liability Company, hereinafter designated "Subdivider." RECITALS WHEREAS, Subdivider has presented to City for approval a parcel map, hereinafter designated "map," entitled Parcel Map 02-0008, which map dedicates McLellan Drive to the City for public street purposes; and WHEREAS, Subdivider has requested approval of the map prior to the construction and completion of improvements, including all streets, highways and public ways and public utility facilities which are a part of, or appurtenant to, the Subdivision designated in the map, all in accordance with, and as required by, the plans and specifications for all or any of the improvements in, appurtenant to, or outside the limits of the Subdivision, which plans and specifications are described in Exhibit "A" attached to and incorporated herein, hereinafter "plans" and are now on file in the Office of the City Engineer of the City; and WHEREAS, the City Council of the City of South San Francisco on ,2004, adopted Resolution No. approving the map and accepting the dedications therein offered for street and highway purposes and public facility and utility easements, except for those dedicated to other agencies, persons, partnerships, associations or corporations, on the condition that Subdivider first enter into and execute this Agreement with City and meet the requirements of the Resolution; and WHEREAS, this Agreement is executed pursuant to the provisions of the Subdivision Map Act of the State of California and Title 19 of the South San Francisco Municipal Code; and NOW, THEREFORE, for and in consideration of the approval of the maps and of the acceptance of the dedications and easements for street and highway purposes and public facility and utility easements therein offered, excepting those dedicated to other agencies, and in order to ensure satisfactory performance by Subdivider and Subdivider's obligations under the Subdivision Map Act and Title 19 of the Municipal Code: the parties agree as follows: AGREEMENT 1. Performance of Work Subdivider shall, at its sole cost and expense, furnish or cause to be furnished, all labor supplies, equipment and materials, and do or cause to be (tone, in a good and workmanlike manner all of the improvements within and/or without and subdivision work described in Exhibit "A" attached and incorporated. The cost of such improvements and required items of work is estimated to be Six Hundred Thousand Dollars ($ 600,000.00). Subdivider shall also do all the work and shall, at its sole cost and expense, furnish all materials necessary in the opinion of the City Engineer to complete the improvements in accordance with the plans and specifications on file, or with any changes required or ordered by the City Engineer. 2. Places and Grades to be Fixed by City Engineer All of the work is to be done at the places, and with the necessary materials, in the manner and at the grades shown on the plans and specifications previously approved by the City Engineer and now on file in his office. All work shall be done to the satisfaction of the City Engineer. 3. Time for Commencement and Performance City hereby fixes the time for the commencement of the work to be done on or before September 1, 2004, and for its completion to be within one (1) year thereafter. At least fifteen (t 5) calendar days prior to the commencement of work hereunder, Subdivider shall notify the City Engineer in writing of the date fixed for coir~,encement thereof, so that the City Engincci shall be able to provide inspection services. 4. Time of Essence - Extension Time is of the essence in this Agreement, provided that in the event good cause is shown, the City Engineer may extend the time for completion of the improvements hereunder. Any such extension may be granted without notice to Subdivider's sureties, and extensions so granted without notice to the Subdivider's sureties shall not relieve the sureties' liability on the bonds to secure the faithful performance of this Agreement and to assure payment of all persons performing labor and materials in connection with this Agreement. The City Engineer shall be the sole and final judge as to whether or not good cause has been shown to entitle Subdivider to an extension. 5. Repairs and Replacements Subdivider shall replace or have replaced, or repair or have repaired, all pipes and monuments which are destroyed or damaged, and Subdivider shall replace or have replaced, repair or have repaired, or pay to the owner the entire cost of replacement or repairs, of any and all property damaged or destroyed by reason of any work done hereunder, whether such property be owned by the United States or any agency thereof, by the State of California, or any agency or political subdivision thereof, or by any combination of such owners. Any such repair or replacement shall be to the satisfaction, and subject to the approval of, the City Engineer or the corporation, person or agency. 6. Utility Deposits - Statement Subdivider shall file with the City Clerk, on or before October, I, 2004, a wr/tten statement signed by Subdivider and each public utility corporation involved, to the effect that Subdivider has made all deposits legally required by such public utility corporation for the connection of any and all public utilities to be supplied by such public utility corporation within the Subdivision. 7. Permits, Compliance with Law Subdivider shall, at Subdivider's sole cost and expense, obtain all necessary permits and licenses for the construction of improvements, give all necessa .ry notices and pay all fees and taxes required by law. 8. Superintendence by Subdivider Subdivider shall personally supervise the work on the improvements, or have a construction contractor, competent foreman or superintendent on the work site at all times during construction, with authority to act for Subdivider. Subdivider shall obtain the approval of the City Engineer before using a construction contractor, competent foreman or superintendent to supervise work on the improvements. Prior to granting approval, the City Engineer shall determine that said construction contractor, competent foreman or superintendent to supervise is qualified to perform such duties. 9. Inspection by CiW Subdivider shall at all times maintain proper facilities, and shall provide safe access, for inspection by City, to all parts of the work and to the shops wherein the work is in preparation. 10. Contract Security (a) Concurrently with the execution hereof, Subdivider shall furnish: (1) a surety bond in an amount equal to at least one hundred percent (100%) of the estimated cost of the construction and completion of the works and improvements described[ in Exhibit "A," as security for the faithful performance of this Agreement; and (2) a separate surety bond in an amount equal to at least one hundred percent (100%) of the estimated cost of' the construction and completion of the work and improvements described in Exhibit "A" as security for the payment of all persons performing labor and providing materials in connection with this Agreement. Subdivider shall require all subcontractors to file a labor and materials corporate surety bond as security for pa3qnent of all persons furnishing labor and materials in connection with this Agreement (b) The Subdivider may fulfill the requirements of subsection (a) of this section by providing a Standby Irrevocable Letter of Credit in favor of the City and in a form approved by the City Attorney. (c) Subdivider may also file a cash deposit with the City. 11. Hold Harmless Agreement (a) Subdivider shall hold harmless, indemnify and, at the City's request, defend City (with Counsel selected by City), its officers, employees, agents, boards and commissions, whether elected or appointed, from and against all claims, demands, actions, causes of action, losses, damages, liabilities, costs and expenses, including but not limited to reasonable attorney's fees or obligations, for or in connection with personal injury (including, but not limited to, death) or damage to property (both real and personal) which arises out of or is in any way connected with the negligent act, error or omission of Subdivider, its agents, contractors, subcontractors, or employees in connection with the performance of this Agreement. (b) In order to make certain that Subdivider has adequate resources to fully carry out its responsibilities pursuant to subparagraph (a) above, Subdivider shall file with the City proof that Subdivider's professional consultants (including any soils; engineer or civil engineer) employed by Subdivider in comnection with the work described herein? maintain professional liability (e..2.. errors and omissions) insurance during the life of this Agreement. If the work is accomplished by contractors or subcontractors, Subdivider shall assure that the contractors and/or subcontractors carry such insurance. The insurance shall be in an amount of not less than Two Million Five Hundred Thousand Dollars ($2,500,000), shall contain a provision that such insurance shall not be reduced or canceled except upon tl~drty (30) days written notice to City and shall be subject to the approval of the City Attorney as to form, amount and carrier. (c) The foregoing hold harmless statement of Subdivider shall apply to all damages and claims for damages of every kind suffered or alleged to have been suffered by reason of the construction operations undertaken pursuant to this Agreement, regardless of whether or not City has approved the plans or specifications for the improvements, and regardless of whether or not such insurance policies have been determined to be applicable to any such damages or claims for damages. 12. Subdivider's Insurance Subdivider shall not commence work under this Agreement until Subdivider has obtained all insurance required under this paragraph, and such insurance has been approved by the City Attorney as to form, amount and carrier, nor shall Subdivider allow any contractor or subcontractor to commence work until all similar insurance required of the contractor or subcontractor has been so obtained and approved. All requirements shall appear either in the body of the insurance policy or in endorsements and shall specifically bind the insurance carrier. Subdivider shall take out and maintain during the life of this Agreement the following policies of insurance: (a) Worker's Compensation and Employers' Liability insurance in the statutory coverage. In signing this Agreement, Subdivider makes the following certification: "I am aware of the provisions of Section 3'700 of the California Labor Code which requires every employer to be insured against liability for Worker's Compensation or to 'undertake self-insurance in accordmme with the provisions of the Code, and I will comply with such provisions before commencing the performance of the work of this Agreement." (b) Commercial General Liability Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) for injuries including, but not limited to, death to any one person and subject to the same limit for each person; in an amount not less than TWO MILLION DOLLARS ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. (c) Automobile Liability (Code 1) Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per accident for bodily injury and property damage. (d) Contractual Liability Insurance: Subdivider shall take out and maintain during the life of this Agreement an insurance policy in the amount of al! least TWO MILLION DOLLARS ($2,000,000), insuring Subdivider against damages sustained as a result of any action or actions at law or in equity, any claims or demands brought as a result of any breach or alleged breach of any contract, or provisions thereof, and/or as a result of any contractual liability, or alleged contractual liability ar/sing out of any contract entered into by Subdivider and/or any of its agents or employees in order to perform the work defined herein. (e) It is agreed that the insurance required by Subsections (b), (c) and (d) shall be in an aggregate amount of not less than Five Million Dollars ($5,000,000) and shall be extended to include as additional insureds the City of South San Francisco, its elective and appointive boards, officers, agents, employees and volunteers, with respect to operations performed by the Subdivider as described herein. Evidence of the insurance described above shall be provided to City upon execution of this Agreement and shall be subject to approval by the City Attorney as to form, amount and carrier. The policy of insurance shall also contain a provision indicating that such insurance shall not be reduced or canceled except upon thinly (30) days written notice to City. In addition, the following endorsement shall be made on the policy of insurance: "Notwithstanding any other provisions in tThis policy, the insurance afforded hereunder to the City of South San Francisco shall be pr/mary as to any other insurance or reinsurance covering or available to the City of South San Francisco, and such other insurance or reinsurance shall not be required to contribute to any liability or loss until and unless the approximate limit of liability afforded hereunder is exhausted." 13. Evidence of Insurance Subdivider shall furnish City concurrently with the execution hereof, satisfactory evidence of the insurance required and evidence that each career is required to give City at least thirty (30) days prior notice of the cancellation or reduction in coverage of any policy during the effective period of this Agreement. 14. Title to Improvements Title to, and ownership of, all improvements constructed hereunder by Subdivider shall vest absolutely in City, or to such other public agencies, persons, partnerships, associations or corporations to which dedications of easements were made or reserved upon the completion and acceptance of such improvements by City or the agency, person, partnership, association or corporation. 15. Repair or Reconstruction of Defective Work If, within a period of one year after final acceptance of the work performed under this Agreement, any structure or part of any structure furnished and/or installed or constructed, or caused to be installed or constructed by Subdivider, or any of the work done under this Agreement, fails to fulfill any of the requirements of this Agreement or the specifications referred to herein, or proves to be defective or become damaged because of differential settlement, action of the elements, or ordinary usage, except for catastrophic events, Subdivider shall without delay and without any cost to City repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should Subdivider fail to act promptly or in accordance with this requirement, or should the exigencies of the case require repairs or replacements to be made before Subdivider can be notified, City may, at its option, make the necessary repairs or replacements or perform the necessary work, and Subdivider shall pay to City the actual cost of such repair plus fifteen (15%) percent. Subdivider shall at the time of acceptance of the improvements by City or other public agency, provide the City with a corporate surety bond in the principal sum of Sixty Thousand Dollars ($ 60,000.00) to secure the undertaking and obligations set forth in this provision. 16. Subdivider not Agent of City Neither Subdivider nor any of Subdivider's agents or contractors shall be considered agents of City in connection with the performance of Subdivider's obligations under this Agreement. 17. Cost of Engineering and Inspection Subdivider shall pay City the actual cost to City for all inspections and other services furnished by City in connection with the construction of the above-required improvements, plus twenty-two percent thereof for administrative overhead. City shall furnish periodic statements of all charges for services performed by City, and Subdivider shall complete payment of such charges within ten (10) days after receipt thereof. 18. Notice of Breach and Default If Subdivider refuses or fails to obtain prosecution, of the work, or any severable part thereof, with such diligence as will insure its completion within the time specified, or any extensions thereof, or fails to obtain completion of the work within such time, or if the Subdivider should be adjudged as bankrupt, or if Subdivider should make a general assignment for the benefit of Subdivider's creditors, or if a receiver should 'be appointed in the event of Subdivider's insolvency, or if Subdivider or any of Subdivider's contractors, subcontractors, agents or employees should violate any of the provisions ,of the Agreement, the City Engineer or City Manager may serve written notice upon Subdivider amd Subdivider's sureties of breach of this Agreement, or of any portion thereof, and default of Subdivider. 19. Breach of Agreement; Performance by Sureties or City In the event of such notice, Subdivider's sureties shall have the duty to take over the work and complete the work and the improvement herein specified; provided, however, that if the sureties, within five (5) days after being served notice of such breach, do not give City written notice of their intention to take over the performance of the Agreement, and do not commence performance thereof within five (5) days after notice to the City of such election, City may take over the work and prosecute the same to completion, by contract or by any other method City may deem advisable, for the account and at the expense of Subdivider, and Subdivider's sureties shall be liable to City for any excess cost or damages occasioned by City; and, in such event, City, without liability for so doing, may take possession of, and use in completing the work, such materials, appliances, plant and other property belonging to Subdivider as may be on site of the work and necessary therefor. 20. Erosion Control If applicable, Subdivider shall furnish landscape plans and adequately provide ibr erosion control. Landscaping and inSgation improvements shall be installed to the satisfaction of the City's Landscape Architect. 21. Trenching and Backfilling Subdivider shall require that all trenching and backfilling within and outside the property lines for utility lines, including sanitary, storm, water and any other purposes, shall be done under the inspection of a soils engineer who shall test the trenching and backfilling with a sufficient number of soil tests to secure the proper compaction. Subdivider shall further require that a certificate be filed with the City stating that said trenching and backfilling has been performed in accordance with the soils engineer's recommendations. 22. Water Lines Subdivider shall dedicate to the California Water Service Company the easements required for the water lines, facilities and appurtenant works, unless the lines, facilities and appurtenant works are to be installed within rights-of-way dedicated to the City. Subdivider shall construct and install, at its sole cost and expense, the improvements in the easements as set forth on the "Plans" shown in Exhibit "A," subject to the approval of the Company. 23. Notices All notices herein required shall be in writing, and delivered in person or sent by certified mail, postage prepaid. Notices required to be given to City shall be addressed as follows: City Clerk City of South San Francisco P.O. Box 711 South San Francisco, CA 94083 Notices required to be given to Subdivider shall be addressed as follows: Fairfield South San Francisco, LLC 5510 Morehouse Dr., Ste 200 San Diego, CA 92121 Attn: Short Finch Notices required to be given to sureties of Subdivider shall be addressed as follows: Insurance Company of the West 11455 E1 Camino Real San Diego, CA 92186 Attn: Mike Hall Any party may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address. 24. As-Built Drawings Subdivider shall furnish City reproducible plastic film as-built drawings of the public improvements of a quality acceptable to the City Engineer together with a certification by Subdivider's engineer that the improvements have been constructed in accordance with the approved plans and specifications. Subdivider shall furnish City with the as-built drawings concurrently with Subdivider's request for acceptance of the improvements by the City. 25. Parties Obligated Subdivider agrees that this Agreement shall bind Subdivider and Subdivider's successors in interest, heirs ana as$1gni$. 26. Attorneys' Fees If a party to this Agreement brings any action, inc![uding an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 27. Governing Law The laws of the State of California shall govern this Agreement. 28. SeYerabilitx If a court of competent jurisdiction finds or roles that any provision of this Agreement ~s invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this; Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed. CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: City Manager ATTEST: SUBDIVIDERS: FAIRFIELD SOUTH SAN FRANCISCO LLC, a California limited liability cornpany By: FF California Housing Fund LLC, a Delaware limited liability company, its Manager By: FF Properties, Inc., a Delaware corporation, its M ana,g.e,r'.,.,' By: :7'Ed M~~o~~~V City Clerk 10 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN DIEGO On June 30, 2004, before me M. M. Rhinesmith, Notary Public N~nc m~d Title of tim Officc~ - e g "JANE DOE, NOTARY PUBLIC" personally appeared Ed McCoy Name(~) of Signer~') [] personally kaaown to me - OP, ~ prov~ to me on-tiao basis of satisfactory~s'~idence to be the person(~ whose name(~ is/a~ subscribed to the within instrument and acknowledged to me that he/s~0~/thqgy executed the same in his/lt~r/t~ir authorized capacity(i~), and that by his/l~r/t~ir signatureg~) on the instrument the person(~), or the entity upon behalf of which the persons00 acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY ~.,~ "T~a'~ Commission # 1460017 · ~ ~ MVComm.~n31.2008~ -OPTIONAL SECTION- CAPACITY CLAINIED BY SIGNER Though stamle does not require Ihe Notary lo fill in the date below, doing so may prove mxrnluable to persons relying on Ibc documcnl [] INDIVIDUAL ID CORPORATE OFFICER(s) TITLE(s) [] PARTNERS(S [3 LIMITED [] GENERAL [] ATTORNEY-IN-FACT [] TRUSTEE(S) [] GUARDIAN/CONSERVATOR [] OTHER: SIGNER IS REPRESENTING NAME OF PERSON(S) OR ENTIIY{IES) OPTIONAL SECTION THIS CERTiFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: Title or Type of Document: Subdivision Improvement Agreement- Fairfield South San Francisco LLC Number of Pages: thirteen Date of Document: undated Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form. Signer(s) Other Than Named Above EXHIBIT IMPROVEMENTS AND REQUIRED ITEMS OF WORK FOR THE IMPROVEMENT OF MCLELLAN DRIVE IN CONNECTION WITH THE DEDICATION OF MCLELLAN DRIVE AS A PUBLIC STREET, AS SHOWN ON PARCEL MAP 02-0088 Agreement dated The Subdivider shall construct, furnish and install all public improvements located within McLellan Drive, as shown on Parcel Map 02-0088;, in accordance with the following plans, dated June 18, 2004, prepared by Charles W. Davidson Co., signed by Ray R. Bold (R.C.E. #14218) and all approved revisions thereof, and in accordance with the City of South San Francisco's Standard Plans and Specifications: "Public Improvements Plan, McLellan "Public Improvements Plan, McLellan "Public Improvements Plan, McLellan "Public Improvements Plan, McLellan "Public Improvements Plan, McLellan Drive, BART Transit Village", Sheet C1 Drive, Surface Improvements Plan", Sheet C2 Drive, Street Light Circuitry Plan, Sheet C3 Drive, Plan and Profile, Sheet C4 Drive, Details, Sheet C5 The Subdivider shall construct, furnish and install all public landscape improvements located within McLellan Drive in accordance with~ the following plans, dated January 26, 2004, Revision 2, dated June 18, 2004, prepared by ima+design, signed by James M. Keenan (LLA #3899), and all approved revisions llhereof, and in accordance with the City of South San Francisco's Standard Plans and Specifications: "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, "Public Improvement Plans, McLellan Drive, Hardscape Construction Plan", Sheet L1 Construction Details, Sheet L2 Cortstruction Details, Sheet L3 krigation Plan & Detail, Sheet L4 Irrigation Details, Sheet L5 Tree Planting Plan, Sheet L6 Shrub Planting Plan & Detail, Sheet L7 Tree Planting Plan, Sheet L8 3. The Subdivider shall construct, furnish and instal] all public traffic signal work located at 11 the McLellan Drive/Bart Access Road intersection., in accordance with the following plans, dated June 23, 2004, prepared by Hexagon Transportation Consultants, Inc., signed by Richard E. Ivy (RCE #21570) and all approved revisions thereof, and in accordance with the City of South San Francisco's Standard Plans and Specifications: "Traffic Signal Modification, McLellan Drive and BART Access Road", Sheet E-2 "Traffic Signal Modification, McLellan Drive and BART Access Road", Sheet E-3 "Pavement Delineation and Signing, McLellan Drive and BART Access Road", Sheet PD- 1 The Subdivider shall file complete "as-built", or "record", drawings of the plans listed above, and any other docmnents, plans or details, approved by the City Engineer, which supplement the approved plans, prior to final acceptance by the City Council of the work performed under this agreement. Said plans shall consist of the original tracings, or permanent plastic film transparencies of a quality which complies with the standards of the City of South San Francisco, as administered by the City Engineer and two paper prints. Approved: City Engineer Date: 12 Bond Number: 2126140 Premium: $5,400.00 Faithful Performance Bond Whereas, The City Council of the City of South San Francisco, State of California, and Fairfield South San Francisco LLC (hereinafter designated as "principal") have entered into an agreement whereby principal agrees to install and complete certain desi~ated public improvements, which said agreement, dated June 28, 2004, and identified as project IMPROVEMENT OF MCLELLAN DRIVE AS SHO~ ON P~RCEL M~ 02-0098, is hereby referred to and made a pan hereof; and Whereas, Said principal is required under the terms of said agreement to furnish a bond for the faithful perfom~ance of said agreement. Now, lherefore, we, the principal and Insurance Company of the Wes~as surety, are held and timely bound unto the City of South San Francisco (hereinafter called "City"), in the penal sum of Six Hundred Thousand Dollars ($600,000.00) law~l money of the United States, for the pa~nent of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, fi~ly by these presenls. The condition of this obligation is such that if the above bounded principal, his or its heirs, executors, administrators, successors or assize, shall in all things stand to and abide by, and well and truly keep and perfo~ the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their paS, to be kept and perfo~ed at the time and m the maker therein specified, and in all respects according to their tree intent and meaning, and shall indemnify and save hapless City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; othe~ise it shall b~ and remain in full force and effect. As a pa~ of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incu~ed by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. The surety hereby stipulates and a~ees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be p~rformed thereunder or the specifications accompanying the same shall in an~ise affect its of time, alteration or addition to the temas of the a~eg:ment or to the work or to the specifications. In witness whereof, this instrument has been duly executed by the principal and surety above named, on June 28th , OwBer: Fairfield South San Francisco LLC, a California limited liability company By: FF California Housing Fund LLC', a Delaware limited liability company, its Manager By: FF Properties, a DelawareBy~~Corp o.rafi'~ n.,~.~s Manager Name: Ed McCoy~V~. Surety: Insurance Company of the West 11455 E1 Camino Real San Dieg_o,_~ ,~/,2!86-5563 By: rh~;~a; ~'J ames Attorney-in-Fact No. 0001404 ICW GROUP Power of Attorney Insurance Company of the ~¥esl The Explorer Insurance Company Independence Casualty and Surety Company KNOW ALL MEN BY THESE PRESENTS: That Insurance Company of the West. a Corporation duly organized undex the laws of the State ot ('ahfomia, The Explo~er Insurance Compauy, a Corporation duly organized under the laws of the State of Arizona, and Independence Casualty and Surety Company. a Corporation doly organized under the lav,,s of the State of Texas, (collectively refen-ed to as the "Companies"), do hereby appoint THOMAS A. JAMES, MICHAEL H. PRADELS, DENNIS BORSENBERGER, GARY T. PETERSON their tree and lawfld Auorney(s)-th-Fact with anthority to date, execute, sign, seal, and deliver on behalf of the Companies, fidelity and surety bonds, undertakings, and othe~ similar contracts of suretyship, and any related documents. In wimess whereof; Iht. Companies have caused these presents to be executed by its duly attthorized officers this 16th day of January, 2001 John H. Craig, Assistant Secretary INSURANCE COMPANY OF THE WEST THE EXPLORER INSURANCE COMPANY INDEPENDENCE CASUALTY AND SURETY COMPANY Jolm L. Hammm, Executive Vice President State of California -[ ss. Connty of San Diego On December 5, 2003, before me, Mary Cobb, Notary Public, personally appeared Jotm L. Hannum and John H. Craig, personally lmown to me to be the persons whose names are subscribed to the within instrument, and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument, the entity upon behalf of which the persons acted, executed the instrument. Witness my hand and official seal. Mary Cobb, Notary Public RESOLUTIONS This Power of Attorney is granted and is signed, sealed and notarized with facsimile signatttres m~d seals m~der anthority of the following resolutions adopted by the respective Boards of Directors of each of the Companies: "RESOLVED: That the President, an Executive or Senior Vice President of the Company, together with the Secretary or any Assistant Secretary, are hereby authorized to execute Powers of Attorney appohrting the persc, n(s) named as Attorney(s)-in-Fact to date, execute, sign, seal, and deliver on behalf of the Company, fidelity and surety bonds, undertakings, and other similar contracts of suretyship, and any related documents. RESOLVED FURTHER: That the signatures of the officers making the appointment, and the signature of any officer certi lying the validity and current stares of the appointment, may be facsimile representations of those signatures; and the signature and seal of any notary, and the seal of the Company, may be facsimile representations of those signatures and seals, and such facsimile representations shal} have the same force and effect as if manually affixed. The facsimile representations referred to herein may be affixed by stamping, printing, typing, or photocopying." CERTIFICATE 1, the undersigned, Assistant Secretary of Insurance Company of the West, The Explorer Insurance Company, and k~dependence Casnalty and Surety Company, do hereby certify that the foregoing Po~er of Attorney is in full force and effect, and has not been revoked, and that the above resolutions were duly adopted by the respective Boards of Directors of the Companies, and are now in full force. IN WITNESS WHEREOF, I have set my hand this 28 th day of June ,. 200/4- John H. Craig, Assistant Secretary To verify the authenticity of this Power of Attorney you may call 1-800-877-1111 and ask for the Surety Division. Please refer to the Power of Attorney Number, the above named individual(s) and details of the bond to which the power is attached. For information or filing claims, please contact Surety Claims. tCW Group, 11455 E1 Carnino Real, San Diego, CA 92130-2045 or call (858) 350-2400. LC.W. GROIYP Insurance Company of The West The Explorer Insurance Company Independence Casualty and Surety Company 11455 E1 Camino Real, San Diego. CA 92130-2045 P.O. BOX 85563, San Diego, CA 92186-5563 (858) 350-2400 FAX (858) 350-2707 v~-'.icwgroup.com Bond Number: 2126140 Terrorism Risk Rider This rider addresses the requirements of the Terrorism Risk Insurance Act of 2002. In accordance with the above Act, we are providing this disclosure notice for all bonds on which one or more of the above identified companies is a ~mrety. Coverage for certified acts of terrorism is included in the attached bond and will be partially reimbursed by the United States under a formula established by the Act. The United States will pay 90% of covered terrorism losses in excess of a statutory established deductible to the insurance company issuing the bond. In no way will the payment for loss on this bond exceed the limit of liabi!i~ under th~q This rider does not provide coverage for any I°ss that would otherwise be excluded by the terms of this bond. The portion of the premium, for this bond, attributable :[o coverage for certified acts of terrorism under the Act is One Dollar ($1.00). " Important Notice: The cOst. of terrorism coverage is subject to change on any bond that premium is charged annually. . . CALIFORNIA ALL-PURPOSE ACKNOWLEDGIVIENT State of California County of San Diego On June 29, 2004 before mc. Barbara Watson. Notau, Public. >ersonally appeared Thomas A. James [] personally known to me -OR- [] proved lo me on the basis of salisfaclm3, evidence 1o be Ihe person whose name is subscribed to lhe wilhin inslmmenI and acknowledged lo me tha! he executed the same in his aulhorized capacity and Ihal by his signature on lhe inslnmmnl Ihe person, or the entity upon behalf of which the person acled, executed the inslmment. WITNE.SS~m34~d and official seal. Signature of Notary Though the data below is not required by law. it may prove valuable to persons relying on the document and could prevent haudulent reattacblnent of tltis form. CAPACITY CLA__IMED BY SIGNER DESCR~'TION OF ATTACHED DOCUMENT [] INDIVIDUAL [] CORPORATE OFFICER [] PARTNER (S) [] LIMITED [] ATTORNEY-IN-FACT [] TRUSTEE (S) [] GUARDIAN/CONSERVATOR OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENT1TY(IES) Thomas A. James Performance/Paymenl Bond Timothy ?Mills Insurance Sen,. CA-ICW 24 CALIFORNIA ALL-PURPOSE ACI53xJOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN DIEGO On June 30, 2004, before me M. M. Rhinesmith, Notary Public: ~m¢ ~,d ~i~lc of,~¢ Omccc- ~ g "JANE DOE, NOTARY PUBL1C" personally appeared Ed McCoy Nameg) of Signer(~,'g [~ personally known to me - OR ID proved to me on g~e~asis of s-atisfactory evidence to be the person(k? whose name¢,) is/a~ subscribed to the within instrument and acknowledged to me that he/sh-e./tl~y executed the same in his/Mr/thCeir authorized capacity(i~), and that by his/h~/thgtr sigq~ature~) on the instrument the person(~, or the entity upon behalf of which the persons(~) acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY -OPTIONAL SECTION- CAPACITY CLAIMED BY SIGNER Though slalule does not require the Nolm~ to in the date below, doing so may prove invaluable [o persons relying on the documem [] INDIVIDUAL [] CORPORATE OFFICER(s) TITLE(s) [] PARTNERS(S [] LIMITED [] GENERAL [] ^TTORNE¥-rN-FACT [] TRUSTEE(S) [] GUARDIAN/CONSERVATOR [] OTHER: SIGNER IS REPRESENTING NAME OF pERSON(S) OR ENTITY(lES) OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: Though the data requested here is not required by law. it could prevent fraudulent reauachment ofthi~ form Title or Type of Documem: Faithful Performance Bond - Fairfield South San Francisco LLC Number of Pages: six Date of Document: June 28, 2004 Signer(s) Other Than Named Above ACORD. CERTIFICATE OF LIABILITY INSURANCE DATEIM ,DD ) Fi','RF-4 ! 06/1¢/04 RODU£ER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ~b.e Bra. ntB Company ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. L600 West Seventh Street __ Fort Worth TX 76102-2505 Phone: 817-336-3030 Fax: 817-336-8257 INSURERS AFFORDING COVERAGE NAIC # ~JSURED INSURER A America~n~ome AsBuxance Co. ~NSURER B National Union Fire InSurance INSURER C Fairfield Residential LLC 5510 Morehouse Drive Ste #200 INSURERD San Diego CA 92121 INSURERE COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANy REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPEC]' TO WHICH THIS; CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PA~D CLAIMS PUJ~- PU~ LIMITS LTR[T'~Si~ POLICY NUMBER DATE (MM/DD/YY) DATE (MMHDD/YY) TYPE OF INSURANCE - EACH OCCURRENCE $ lO00000 GENERAL LIABILITY 1 U ~-N I EU -- PREMISES (Ea occurence) ~ X X ' COMMERCIAL GENERAL LIABILITY GL4571658 10/01/03 12/01/04 u,~,~,o~- J$ 50000 J CLAIMS IviADE [~ OCCUR MED EXP (Any one person) $ PERSONAL & ADV INJURY $ 1000000 x sIR $25000 -- GENERAL AGGREGATE $ 2000000 PRODUCTS - COMP/DP AGG $ 2000000 GEN'L AGGREGATE LIMIT APPLIES PER: --~ POLtCY ~l PRO' [~J LOC JECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ 1000000 i X ANY AUTO CA1468539/OS 10/01/03; 12/01/04 (Ea accident) BODILY INJURY $ ALL OWNED AUTOS (Per person) SCHEDULED AUTOS -- BODILY INJURY $ X HIRED AUTOS (Per accident) ]:~ NONLOWNED AUTOS -- pROPERTY DAMAGE $ Per accident) ,NJ, TO ONLY - EAACCIDENT $ GARAGE LIABILITY EA ACC $  OTHER THAN ANY AUTO AUTO ONLY: AGG $ EACH OCCURRENCE $ 25000000 EXCESS/UMBRELLA LIABILITY i $ 2 5 o o o o o o B ~--~ OCCUR [~ CLAIMS MADE BE3205228 10/01/03 12/01/0A AGGREGATE _ $  DEDUCTIBLE $ REqENTION $10000 WC 51ALU- OIH- TORY LIM TS J ER NORKERS COMPENSATION AND EMPLOYERS' LIABILITY E.L. EACH ACCIDENT $ ANy PROPRIETOPJpARTNER~aXECUTIVE EL. DISEASE - EAEMPLOYEE $ OFFICER/MEMBER EXCLUDED? ' it yes. descdbe under E.L. DISEASE - POLJCY,~klMIT $ DESCRipTION OF OPERATIONS; LOCATIONS / VEHICLES !EXCLUStONS ADDED BY ENDORSEMENT; SPECIAL PROVISIONS I~e: Solaire/Bouth City, ~ Corner of $1 C~m_i. no ~eal & McClellan Dr South ~an Francisco, CA Na~aed Insured is continued to read: Fairfield South Sa~ Francisco LLC See attaclmzent for additional certificate holde[ infon~ation CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITYSAN City of San Francisco DATE THEREOF, THE iSSUING INSURER ~LL ENOEAVOR TO MAIL 30 DAYSWRJ'rTEN S SF City Hall NO]ICE TO IHE CERlqFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL Attn: Richard Harmon IMPOSE NO OBLIGATION OR LIABtLll'Y OF ANY KIND UPON THE INSURER, ITS AGENTS OR ~ . O . BOX ~11 REPRESENTATIVES. Soutl% San Francisco CA 94083 AUTH O RIZE[~,,iiE P RE S E NTATI,~/) IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions ,of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. Certificate holder is continued to read: The City and County of South San Francisco, and its Public Utilities Commission and its elective and appointed officers ,boards ,commissions ,agents, employees and volunteers with respect to operation performed by the permittees and is n~/ned as additional insured. In addition, the following endorsement shall be made on the policy of insurance: Notwithstanding any other provisions in this policy, the insurance afforded hereunder to the City and County of South San Francisco and it's Public Utilities Commission shall be primar~ as to any other insurance or reinsurance covering or available to the City and County of South San Francisco and its Public Utilities ,Commission and such other insurance or reinsurance shall not be required to contribute to any liability or loss, until and unless, the approximate limit of liability afforded hereunder is exhausted. I.C.W. GROUP [] INSURANCE COMPANY OF THE WEST [] THE EX[PLORER INSURANCE COMPANY [] iNDEPENDENCE CASUALTY AND SURETY COMPANY 11455 EL CAMINO REAL, SAN DIEGO, CA 9213O P.O. BOX 85563 SAN DIEGO, CA 92186-5563 (858) 350-2400 FAX (858) 350-271)7 www. i cwg ro u p. c o m LABOR AND MATERIAL PAYMENT BOND Subdivisi{m Bond (Califm'nia) Bond No.: 2126140 Premium: INCLUDED Whereas, The City of South San Francisco. Stole of California (hereinafter designated as "Obliged'), and Fairfield Soulh San Francisco LLC (hereinafter designated as "Principal") have eutered into an agreemcnl xvhercby Principal agrees to inslal} and complele cerlaiu designaled public improvements, xvhich said agreement, daled June 2gib. 2004, and idenlified as prqjecl hnprovement of McLellan Drive as shown on Parcel Map 02-0088 is hereby referred to and made a parl hereoh and Whereas, under lhe lerms of said agreemenl, Principal is required, before enlering upon Ihe performance of lhe xvork, Io file a good and sufficient Paymenl Bond with Ihe Obligee to secure the claims lo which reference is made in Title 15 (commencing with Section 3082) of Part 4 ofDivisiou 3 oflhe Civil Code of the Stale of California. Now, therefore, said Principal and Insurance Company of the West (hereinafter designated as "Surely") are held and firmly bound unto the Obligee and all contractors, subconlraclors, laborers, maleriahnen and other persons employed iu the performance of aforesaid agreement and referred to in the aforesaid Code of Civil Procedure in Ihe sum of Six Hundred Thousand dollars ($ 600,000.00 ), for nmlerials flmfished or labor thereon of any kind, or for amounls due under Ihe Unemployment lusurance Acl with respect to such work or labor, thai said Sm-etx? will pay Ihe same iu an amouul not exceeding lhe amount hereinabove sel forlh, and also in case suit is broughl upon lhis bond, x~5ill pay, in addition to the face amount Ihereof, costs and reasonable expenses and fees. including reasouable allorney's fees. incurred by Obligee in successfiflly erLforcing such obligalion, to be awarded and fixed by lhe court, m~d to be taxed as cosls and to be included in tl~e judgmenl flmreiu rendered. II is hereby expressly stipulated and agreed lhat fl~is bond shall mm'e to tim benefit of auy and all persons, compames and corporalions entitled to file claims trader Tille 15 (commencing wilh Seclion 3082) of Pa~t 4 of Division 3 of the Civil Code, so as to give a righl of action to lhem or flmir assigns in any suit brough! upon fids bond. Should the condition of this bond by fldly performed, lhen lids obligaliou shall become null and void; oflmrwise it shall be and remmn in flfll force m~d effect. The Surety hereby stipulates and agrees that no change, exqeusion of lime, alteration or addilion to Ihe lerms of said agreement or specificatious accompm~ying the same shall in any manner ~fect its obligatious ou lids bond, and il does hereby waive nolice of any such chm~ge, exq[ension, alleration or addition. In wimess whereof, lhis instntment has been duly executed by lhe Principal and Surety above named, on June 281h, 2004. Atlesl or Wimess: By:~~TU:" ~ ~d,/''~j'/~ (Seal) FAIRFIELD SOUTH SAN FRANCISCO LLC h s,,ra, ce (seal) By: Thomas A. Attorney-In-Fact CA-ICW 47 (7/(x)) No. 0001404 ICW GROUP Power of Attorney Insurance Company of the West The Explorer Insurance Company Independence Casualty and Surety Company KNOW ALL MEN BY THESE PR~.SENTS: That insurance Company of the West, a Corporation duly organized under [he laws of [he State of Cahfomia, The Explorer Insurance Company, a Corporation duly organized under the laws of the Slate of Arizona. and Independence Casualty and Surely Company, a Corporation duly organized under the laws of[he State of Texas, (collectively relented to as the "Companies"). do hereby appoint THOMAS A. JAMES, MICHAEL H. PtL,kDELS, DENNIS BORSENBERGER, GARY T. PETERSON their true and lawful Attorney(s)-m-Fact wi[h authority to date, execute, sign, seal, and deliver on behalf of the ConapanJes, fidelity and surety bonds, undertakings, and other similar contracts of suretyship, and may related documents. h3 witness whe~col~ the C~mpa~es have cansed [hese presents to be executed by its duly au[horized officers [his 16th day of January, 2001 Jo~ H. Craig, Assistant Secretary INDEPENDENCE CASUALTY AND SURETY COMPANY John L. Hannum, Execulive Vice President State of California ~, ss. County of San Diego On December 5, 2003, before me, MaW Cobb, Notary Public, personally appeared Jolm L. Hannum and Jolm H Craig, personally known to me to be the persons whose names are subscribed to the within instrument, and aclmowledged to me that they executed the same in their anthorized capacities, and that by their signatures on the insmn~ent, the entity upon behalf of which the persons acted, executed the instrument. Wituess my hand and official seal. Mary Cobb, Notary Public RESOLUTIONS TNs Power of Attorney is granted and is signed, sealed and notarized with facsimile signatures and seals under authority of the following resolutions adopted by the respective Boards of Directors of each of the Companies: '~SOLVED: That the President, an Executive or Senior Vice President of the Company, together with the Secretary or any Assistant Secretary, are hereby authorized to execute Powers of Attorney appointing [he person(s) named as Attomey(s)-in-Fact to date, execute, sign, seal, and deliver on behalf of the Company, fidelity and surety bonds, undertakings, m~d other similar conU-acts of suretyship, and any related documents. RESOLVED FURTHER: That the signatures of the officers making the appointment, and the signature of any officer certifying the validity and current status of the appoinUnent, may be facsimile representations of those signatures; and the signature and seal of any notary, and the seal of the Company, may be facsimile representations of those signatures and seals, and such facsimile representations shall have the same force and effect as if manually affixed. The facsimile representations referred to herein may be affixed by stamph~g, printing, typing, or photocopying_" CERTIFICATE I, the tmdersigned. Assistant Secretary of Insurance Company of [he West, The Explorer Insurance Company, and Independence Casualty and Sttrety Company, do hereby certify that the foregoing Power of Attorney is in full force and effect, and has not been revoked, and that the above resoh~tions were duly adopted by the respective Boards of Directors of the Companies, and are now in full force. IN WITNESS WHEREOF, Ihave set myhand this 28th day of June 2004 Jokn H. Craig, Assistant Secretary To verify the authenticity of[h~s Power of Attorney you may call 1-800-877-1111 and ask for [he Surety Division~ Please refer to the Power of Attorney Number, the above named individual(s) and details of[he bond to which the power is attached. For information or filing claims, please contact Surety Claims, ICW Group, 11455 E1 Camino Real, San Diego, CA 92130-2045 or call (858) 350-2400. I.C.W. GROUP Insurance Company of The West The Explorer Insurance Company Independence Casualty and Surety Company 11455 El Camino Real, San Diego. CA 92130-2045 P.O. BOX 85563, San Diego, CA 92186-5563 (858) 350-2400 FAX (858) 350-2707 w~,.icwgroup.com Bond Number: 2126140 Terrorism Risk Rider This rider addresses the requirements of the Terrorism Risk Insurance Act of 2002. In accordance with the above Act, we are providing this disclosure notice for all bonds on which one or more of the above identified companies is a surety. Coverage for certified acts of terrorism is included in the attached bond and will be partially reimbursed by the United States under a formula established by the Act. The United States will pay 90% of covered terrorism losses in excess of a statutory established deductible to the insurance company issuing the bond. In no way will the payment for loss on this bond exceed the limit of liability under this bond. T~.As~ ,'4a~,,,., does ,,,,~ v,,,v,..,~ coverage for :,/ny loss that would otherwise be excluded by the terms of this bond. The portion of the premium, for this bond, attributable !~o coverage for certified acts of terrorism under the Act is One Dollar ($1.00). '-' Important Notice: The cost-of terrorism coverage is subject to change on any bond that premium is charged annually. . ¢ c CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of San Diego On June 29, 2004 before me, Barbara Watson, Notary Public, personally appeared Thomas A. James, [] personally known to me -OR- [] proved to me on the basis of salisfaclo~3' evidence to be the person whose name is subscribed Io the wiflfin instrument and acknoxvledged Io llle Ihal he executed Ihe sanle in his aulhorized capaciU and Ihal by his signature on Ihe inslmmenl Ihe person, or the enlily upon behalf of xvhich Ihe person acted, execuled Ihe insmm~ent. Signature of Notary Though the data below is not required by law, it may prove valuable to persons relying on file document and could prevent fraudtdent reattachment of tkis form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT [-I INDIVIDUAL [] CORPORATE OFFICER [] PARTNER (S) [] LIMITED [] ATTORNEY-IN-FACT :[] TRUSTEE (S) [] GUARDIAN/CONSERVATOR OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(lES) Thomas A. James Performance/Payment Bond Timothy Mills Insurance Serv. CA-1CW 24 (7/00) CALIFORNIA ALL-PURPOSE ACK2qOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN DIEGO On June 30, 2004, before me M. M. Rhinesmith, Notar~ Public Iq~c ~ Title oro,¢ Onkr,- c g "JANE DOE, NC,TARY PUBLIC" personally appeared Ed McCoy Na me(t~) of Signer~') ~personally known to me OR [] pre,'Scd to mc .,,-t-l~,~ b',~sis of satisfactoc~'-evi~tcnce to be the person¢) whose name(~ is/a~e subscribed to the within instrument and acknowledged to me that he//~e/t(~y executed the same in his/h~r/~eir authorized capacity(i~s), and that by his/l~4~/tt~ir signature(,.*) on the instrument the person(~, or the entity upon behalf of which the persons(~) acted, executed the instrument. WITNESS my hand and official seal. -OPTIONAL SECTION- CAPACITY CLAIMED BY SIGNER Though slatule does nol require the Nolary to fill in Iht dale below, doing so nmy prove invaluable 1o p~isons relying on the document [] INDIVIDUAL [] CORPORATE OFFICER(s) TITLE(s) [] PARTNERS(S [] LIMITED [] GENERAL [] ATTORNEY-IN-FACT ~ TRUSTEE(S) [] GUARDIAN/CONSERVATOR [] OTHER: SIGNER 1S REPRESENTING NAME OF PERSON(S) OR ENTITY(lES) OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: Title or Type of Document: Labor and Material Payment Bond - Fairfield South San Franci:sco LLC Number of Pages:: five Date of Document: June 28, 2004 Though the data requested here is not required by law, it could prevent fraudulent reattachment o£this form. Signer(s) Other Than Named Above StaffReport AGENDA ITEM #8 DATE: TO: FROM: SUBJECT: October 13, 2004 The Honorable Mayor and City Council Ten'y White, Director of Public Works LINDENVILLE STORM WATER REHABILITATION · (WET WEATHER PROGRAM PHASE V), PROJECT NO. 71-13235-0455 48" HDPE PIPE INSTALLATION ACROSS COLMA CREEK CHANNEL RECOMMENDATION: It is recommended that City Council adopt a resolution authorizing the payment of $352,150 to the County of San Mateo for the installation of 240 If of 48" HDPE pipe across the Coima Creek channel. BACKGROUND/DISCUSSION: This project installs a 48" HDPE (high density polyethylene) pipe from South Canal across Colma Creek to the City owned lot at 27 South Linden, the northeast comer of North Canal Street/South Linden Avenue via, crossing under the South Linden Avenue bridge. This pipe is a critical link of the proposed storm drain improvements along South Canal Street, South Linden Avenue, South Maple Avenue, Victory Avenue and the new proposed pump station at 27 South Linden. This 48" pipe needs to be installed prior to the County of San Mateo's channel improvements to the east side of the South Linden Avenue bridge. The installation of the pipe will be processed as a contract change order to the County's contractor (Northwest Construction Inc.) for the Colma Creek channel improvements. The County will seek reimbursement fi'om the City in the amount of $352,150. FUNDING: Ftmding for this work is included in the City Improvement Program (CIP/71-13235-0455). Terry White Director of Public Works of South San Francisco's 2004-2005 Capital ApprovedB~,_~¢ ~. City Manager ATTACHMENTS: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLIITION AUTHOI~,IZI N(; THE I'AYMENT OF $352,150 TO THE COUNTY OF SAN MATEO FOR THE. INSTALLATION OF 240 LINEAR FEET OF 48" HDPE PIPE ACROSS THE COLMA CREEK CHANNEl. WHEREAS, staffrecommends the authorization ,3fa payment of $352,150 to the County of San Mateo for the installation of 240 linear feet of 48" HDPE pipe across the Colma Creek channel; and WHEREAS, this project installs a 48" HDPE pipe fi-om South Canal across Colma Creek to the City owned lot at 27 South Linden; and WHEREAS, funding for this work is included in the City of South San Francisco's 2004- 2005 Capital Improvement Program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby authorize the payment of $352,150 to the County of San Mateo for the installation of 240 linear feet of 48" HDPE pipe across the Colma Creek channel. I hereby certify that the foregoing Resolution wats regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2004 by the following vote: AYES: NOES: ABSTAIN: ABSENT: %:,Current Reso's\ 10-13-041indcnville.storm.project.res.doc ATTEST: City Clerk Staff Re ort AGENDA ITEM #10 DATE: TO: FROM: SUBJECT: October 13, 2004 Honorable Mayor and City Council Marry Van Duyn, Assistant City Manager' REPEAL OF CHAPTER 18, Title 4 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE, "TRANSPORTATION SYSTEM MANAGEMENT PROGRAM" RECOMMENDATION Waive reading and introduce the attached ordinance repealing Title 18, Chapter 4 of SSFMC BACKGROUND / DISCUSSION Title 18, Chapter 4 of the South San Francisco Municipal Code, "Transportation System Management Program" (TSM) was adopted in 1995. It outlines protocols to be followed by the City of South San Francisco in conjunction with various other agencies to manage traffic congestion as new development occurs. Title 20, Chapter 120, "Transportation Demand Management" (TDM) was added to the South San Francisco Municipal Code in 2003. The TDM program mirrors or slightly modifies the important provisions of the TSM program, and is clearer and easier for applicants and staff to implement. Therefore, since SSFMC Title 18, Chapter 4 and SSFMC Title 20, Chapter 120 are largely duplicative, and since Title 20, Chapter 120 is more modem and more effective, it is appropriate to repeal SSFMC Title 18, Chapter 4. FUNDING There are no funding issues associated with this action. CONCLUSION It is recommended that the City Council waive reading and introduce the attached ordinance repealing Title 18, Chapter 4 of the South San Francisco Municipal Code. By: ~I~/.~ .~,_.xAA~----~ By: City Manager Attachment: Ordinance repealing Title 18, Chapter 4 of the South San Francisco Municipal Code ORDINANCE NO. AN ORDINANCE REPEALING CHAPTER 18.04 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE, "TRANSPORTATION SYSTEM MANAGEMENT PROGRAM" RECITALS WHEREAS, Title 18, Chapter 4 of the South San Francisco Municipal Code, "Transportation System Management Program," contains a comprehensive set of provisions aimed at ensuring employer participation in reducing traffic impacts and fostering cooperation between public agencies and the private sector in reducing traffic congestion and reducing overall number of vehicle trips; and WHEREAS, in 2001, the City adopted Title 20:, Chapter 120 of the South San Francisco Municipal Code, "Transportation Demand Management," to implement a program designed to reduce the amount of traffic produced by new or expanded nonresidential development, and ensure that expected increases in traffic produced by employment opportunities within the City would be adequately mitigated; and WHEREAS, in adopting Title 20, Chapter 120 of the South San Francisco Municipal Code, the City incorporated and modified the most salient provisions of Title 18, chapter 4; and WHEREAS, Title 20, Chapter 120 thus now mirrors or slightly modifies many provisions of the "Transportation System Management Program" of Title 18, Chapter 4, making the latter chapter duplicative of provisions governing transportation management. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 18.04 "Transportation System Management Pro,m'am"Repealed. Chapter 18.04 of the South San Francisco Municipal Code is hereby repealed in its entirety. It has been superceded by Chapter 20.120. SECTION 2. SEVERABILITY. In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. SECTION 3. PUBLICATION & EFFECTIVE DATE 711565-1 This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the day of ,2004. Adopted as an Ordinance of the City' of South San Francisco at a meeting of the City Council of the City of South San Francisco this day of ,2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this day of ,2004. Karyl Matsumoto Mayor 711565-1