HomeMy WebLinkAbout2016-06-22 e-packet@5:30City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
Special Meeting Agenda
Wednesday, June 22, 2016
5:30 PM
Municipal Services Building, Council Chambers
33 Arroyo Drive, South San Francisco, CA
Special City Council
Special City Council Special Meeting Agenda June 22, 2016
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the City Council of the City of South San Francisco will hold a Special Meeting on
Wednesday, June 22, 2016, at 5:30 p.m., in the City Council Chambers, Municipal Services Building, 33
Arroyo Drive, South San Francisco, California.
Purpose of the meeting:
Call to Order.
Roll Call.
Agenda Review.
Public Comments - comments are limited to items on the Special Meeting Agenda.
ADMINISTRATIVE BUSINESS
1. Treasurer's Report - Resolution approving the Treasurer's Investment Policy for
Fiscal Year 2016 -2017 (Hon. Frank Risso)
la. Resolution approving the Treasurer's Investment Policy for Fiscal Year 2016 -2017
2. Report of resolution approving a shuttle services agreement with PCAM, LLC in an
amount not to exceed $430,000 for the operations of the South City Shuttle for the
period July 1, 2016 through June 30, 2018. (Justin Lovell, Public Works
Administrator)
2a. Resolution approving a shuttle services agreement with PCAM, LLC in an amount
not to exceed $430,000 for the operations of the South City Shuttle for the period July
1, 2016 through June 30, 2018
3. Report regarding a resolution authorizing the City Manager to renew the existing
Landscape Maintenance Services Agreement with Frank and Grossman of San
Francisco, CA for citywide landscape maintenance services in an amount not to
exceed $511,176 (Sharon Ranals, Director of Parks and Recreation)
3a. Resolution authorizing the City Manager to renew the existing Landscape
Maintenance Services Agreement with Frank and Grossman of San Francisco, CA for
citywide landscape maintenance services in an amount not to exceed $511,176
CONSENT CALENDAR
4. Report regarding a resolution approving and awarding contracts for furnishing bulk
process chemicals at the Water Quality Control Plant for Fiscal Year 2016 -2017; and
authorizing the City Manager to execute the necessary agreements (Brian
Schumacker, Plant Superintendent)
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Special City Council Special Meeting Agenda June 22, 2016
4a. Resolution approving and awarding contracts for furnishing bulk process chemicals at
the Water Quality Control Plant for Fiscal Year 2016 -2017; and authorizing the City
Manager to execute the necessary agreements (Brian Schumacker, Plant
Superintendent)
5. Staff Report regarding a resolution approving a consultant services agreement with
Dysert Environmental, Inc. for environmental sampling services in an amount not to
exceed $90,000 annually, for Fiscal Years 2016 -2017, 2017 -2018 and 2018 -2019,
with an additional two (2) year extension option; and authorizing the City Manager to
execute the agreement (Andrew Wemmer, Environmental Compliance Supervisor).
5a. Resolution approving a consultant services agreement with Dysert Environmental,
Inc. for environmental sampling services in an amount not to exceed $90,000.00
annually, for Fiscal Years 2016 -2017, 2017 -2018 and 2018 -2019
6. Staff Report regarding a resolution approving an environmental testing services
agreement for environmental laboratory testing services with Alpha Analytical
Laboratories, Inc. in an amount not to exceed $220,000 annually for Fiscal Years
2016 -2017, 2017 -2018 and 2018 -2019, with two 1 -year extension options in
2019 -2020 and 2020 -2021; and authorizing the City Manager to execute the
agreement (Andrew Wemmer)
6a. Resolution approving an environmental testing services agreement for environmental
laboratory testing services with Alpha Analytical Laboratories, Inc. in an amount not
to exceed $220,000.00 annually for Fiscal Years 2016 -2017, 2017 -2018 and
2018 -2019, and authorizing the City Manager to execute the agreement
7. Staff Report - A resolution awarding a construction contract to Interstate Grading and
Paving, Inc. of South San Francisco, California for the Brentwood Park Renovation
and Pathway Improvement Project in an amount not to exceed $717,000 and
authorizing a total construction budget of $845,000 (Sam Bautista, Principal Engineer
& Kathleen Phalen, Swinerton Management + Consulting)
7a. Resolution awarding a construction contract to Interstate Grading and Paving, Inc. of
South San Francisco, California for the Brentwood Park Renovation and Pathway
Improvement Project in an amount not to exceed $717,000 and authorizing a total
construction budget of $845,000
CLOSED SESSION
8. Closed Session:
Public Employee Performance Evaluation (Pursuant to Government Code Section
54957)
Title: City Manager
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Special City Council Special Meeting Agenda June 22, 2016
Adjournment.
City of South San Francisco Page 4 Printed on 7/28/2016
City of South San Francisco P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
Staff Report
File Number: 16 -250
Agenda Date: 6/22/2016 Version: 1 Status: Agenda Ready -
Administrative Business
In Control: Special City Council File Type: Staff Report
Agenda Number: 1
Treasurer's Report - Resolution approving the Treasurer's Investment Policy for Fiscal Year
2016 -2017 (Hon. Frank Risso)
..label
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution approving the
City's Investment Policy for Fiscal Year 2016 -2017.
BACKGROUND /DISCUSSION
California Government Code requires that the City's Investment Policy be reviewed and
approved each fiscal year to incorporate current regulations affecting the City's investment
program, if any, or other changes that the City Treasurer wishes the Council to authorize. No
changes are recommended at this time; this policy is a continuation of the policy in effect for
fiscal year 2016 -2017.
CONCLUSION
Approval of the attached resolution will approve the City's Investment Policy for fiscal year
2016 -2017.
Attachment:
City of South San Francisco Investment Policy Fiscal Year 2016 -17
City of South San Francisco Page 1 Printed on 712812016
City of South San Francisco Investment Policy
Fiscal Year 2016 -17
PURPOSE:
The following statement is intended to provide guidelines for the "Prudent Investor Standard" of
investment of the City's temporary idle cash and to outline the policies for an effective cash
management system.
A. Prudent Investor Standard: Management of the City's investments is governed by the
Prudent Investor Standard as set forth in the California Government Code 53600.3:
"...all governing bodies of local agencies or persons authorized to make investment
decisions on behalf of those local agencies investing public funds pursuant to this
chapter are trustees and therefore fiduciaries subject to the prudent investor standard.
When investing, reinvesting, purchasing, acquiring, exchanging, selling, or
managing public funds, a trustee shall act with care, skill, prudence, and diligence
under the circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated needs of the Agency, that a prudent person
acting in a like capacity and familiarity with those matters would use in the conduct
of funds of a like character and with like aims, to safeguard the principal and
maintain the liquidity needs of the Agency. Within the limitations of this section and
considering individual investments as part of an overall strategy, investments may be
acquired as authorized by law."
The City's cash management system's goal is to accurately monitor and forecast revenues and
expenditures enabling the City to invest funds to the fullest extent possible. The City Treasurer
attempts to obtain the highest yield possible as long as investments meet the criteria established for
safety and liquidity. This Investment Policy applies to all City funds except retirement, pension, or
bond proceeds or bond reserves, which have their own constraining requirements.
The investment policies and practices of the Treasurer of the City of South San Francisco are based
upon federal, state, and local laws as well as prudent money management. The primary objectives
of these policies are, in priority order:
1. To assure compliance with all federal, state, and local laws governing the investment
of monies.
2. To maintain the principal of the City's investments.
3. To remain sufficiently liquid to meet all expenses.
4. After safety and liquidity are assured, to generate the maximum amount of
investment income within the parameters of this statement of investment policy.
INVESTMENT OBJECTIVES:
1. SAFETY OF PRINCIPAL is the foremost objective of the Investment Policy. The
Treasurer shall seek to ensure that capital losses are avoided with each investment
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transaction. The objective is to mitigate credit risk (the risk that a security or a
portfolio will lose some or all of its value due to a real or perceived change in the
ability of the issuer to repay its debt) and interest rate risk (the market value of the
security in the portfolio will fall due to changes in general interest rates).
2. LIQUIDITY is the second most important objective of the Investment Policy. It is
important that a portion of the portfolio contain investments, which can be easily
liquidated with minimal, or no risk to principal and/or interest. The longest maturity
of any investment shall be five years. The portfolio shall be structured so that
sufficient funds are readily available to meet all reasonably anticipated operating
expenses.
3. YIELD is the return earned on monies invested. The City's funds shall be designed
to attain a rate of return throughout budgetary and economic cycles which is
approximately equal to the return on a Market Benchmark Index which will be
reported to the City Council on a periodic basis. The current index that is consistent
with this policy, the market, and the cash flow needs of the City is the 1 -5 year
Government Index. Yield will be considered only after the basic requirements of
safety, liquidity, and credit quality have been met.
INVESTMENT POLICY:
The City is governed by the California Government Code, Section 53600 et.seq. Within the context
of these limitations, the following investments are authorized:
U.S. TREASURY SECURITIES for which the full faith and credit of the U.S. are pledged
for the payment of principal and interest. There is no limit to the percentage of the portfolio
that can be invested in U.S. Treasuries. However, their maturities shall be limited to 5 years
or less.
FEDERAL AGENCY OR UNITED STATES GOVERNMENT SPONSORED
ENTERPRISE OBLIGATIONS, or other instruments, including those issued by federal
agencies or United States government- sponsored enterprises. The amount of any one issuer
shall not exceed 25 percent of the portfolio, with the maturity not to exceed 5 years.
Examples include the Federal Farm Credit Bank System (FFCB), the Federal Home Loan
Bank Board (FHLB), the Federal National Mortgage Association (FNMA), the Federal
Home Loan Mortgage Corporation (FHLMC), Tennessee Valley Authority (TVA).
SUPRANATIONALS securities that are unsubordinated obligations issued by the
International Bank for Reconstruction and Development (IBRD), International Finance
Corporation (IFC), or Inter - American Development Bank (IADB). The securities must be
rated "AA" or higher by a nationally recognized statistical rating organization. No more than
30% of the total portfolio may be invested in these securities. No more than 10% of the total
portfolio shall be invested in any single issuer. The maximum maturity of any security of
this type shall not exceed five years.
CORPORATE MEDIUM TERM NOTES issued by corporations organized and operating
within the United States or by depository institutions licensed by the United States or any
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state and operating within the United States. Notes eligible for investment under this
subdivision shall be rated in a rating category of "A" or its equivalent or better by a
nationally recognized rating service. Purchases of medium -term notes may not exceed 30
percent of the City's surplus money which may be invested pursuant to this section. The
maximum maturity shall not be greater than 5 years
ASSET BACKED SECURITIES including mortgage pass- through, collateralized mortgage
obligation, mortgage- backed or other pay- through bond, equipment lease- backed certificate,
consumer receivable pass- through certificate, or consumer receivable- backed bond with a
maximum maturity of five years. Securities eligible for investment under this subdivision
shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided
by a nationally recognized rating service and rated in a rating category of "AA" or its
equivalent or better by a nationally recognized rating service. Purchase of securities
authorized by this subdivision may not exceed 20 percent of the City's surplus money that
may be invested pursuant to this section.
COMMERCIAL PAPER must be of prime quality of the highest rating by both Moody's
and Standard and Poor's (P -1 by Moody's and A -1 by Standard and Poor's). Eligible paper
is limited to corporations organized and operating within the U.S. and having total assets of
at least $500,000,000. There are also limitations as to the total percent (10 %) of the
portfolio that may be invested in commercial paper, the time of investment (270 days) and
the amount of any one issuer shall not exceed 5 percent of the portfolio.
REPURCHASE AGREEMENTS ( Repos) allow a purchase of securities by a local agency;
by agreement, the seller will repurchase the securities on or before a specified date and for a
specified amount. The maturity should not exceed ninety days. Repos should only be
purchased when a purchase agreement is executed with a bank in which the underlying
security shall have a market value of at least: 102% for U.S. Treasuries or 105% for U.S.
Agencies of the funds borrowed. Pledged securities must be held by a third party custodian.
The issuing counter party shall be rated in a rating category of "AA" or its equivalent or
better by nationally recognized rating services (Standard and Poor's and Moody's).
THE LOCAL AGENCY INVESTMENT FUND is a pooled fund managed by the State
Treasurer whose permitted investments are identified in the Government Code Section
164291. LAIF offers high liquidity as deposits and withdrawals can be wired to and from
South San Francisco on the same day, provided the request is made before 10:00 A.M. No
maximum limit for LAIF is set by this investment policy.
MUTUAL FUNDS are shares of beneficial interest issued by diversified management
companies, as defined by Section 23701 M of the Revenue and Taxation Code. To be
eligible for investment, these funds must strive to maintain a net asset value of $1.00 per
share at all times and:
a) Attain the highest ranking in the highest letter and numerical rating provided by
not less than two of the three largest nationally recognized rating services; or
b) Have an investment advisor registered with the Securities and Exchange
Commission with not less than five years experience investing in securities and
K,
obligations, and with assets under management in excess of five hundred million
dollars; and
c) Invest solely in those securities and obligations authorized by Sections 53601
and 53635 of the California Government Code. Where the City's Investment
Policy may be more restrictive than the State Code, the Policy authorizes
investments in mutual funds that shall have minimal investment in securities
otherwise restricted by the City's Policy. Minimal investment is defined as less
than 5 percent of the mutual fund portfolio.
Mutual fund investments shall not exceed 20% of the portfolio, with no more than 10% of
the portfolio invested with any one institution.
PROHIBITED INVESTMENTS:
Instruments not expressly authorized are prohibited. In accordance with Government Code Section
53601.6, investment in inverse floaters, range notes or mortgage derived interest -only strips is
prohibited, as are derivatives. Investment in any security that could result in a zero interest accrual if
held to maturity is also prohibited.
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SUMMARY OF AUTHORIZED INVESTMENTS:
Minimum % of
Rating Portfolio
U.S. Treasuries
100%
U.S. Agencies
100%
Supranational AA
30%
Corporate MTNs A
30%
Asset Backed Security AA
20%
Commercial Paper P1 /A1
25%
Repurchase Agreements
5 years
Issuing Counter Party AA
5 years
Collateral:
5 years
If U.S. Treasuries
270 days
If U.S. Agencies
Local Agency Investment Fund
(LAIF)
100%
% in
any single
Maximum Minimum
Issuer
Maturity Collateral
100%
5 years
25%
5 years
10%
5 years
5%
5 years
5%
5 years
5%
270 days
102%
105%
Mutual Funds Aaa Moody's/
AAAm S &P 20% 10%
AUTHORIZED INVESTMENTS PERSONNEL:
The City Treasurer and any Deputy Treasurers he or she appoints are authorized to approve
investment transactions. Deputy Treasurers shall include at a minimum the City Finance Director.
MITIGATING CREDIT RISK:
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or
perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by
adopting the following strategies:
1. No more than 5% of the total portfolio may be invested in securities of any single issuer,
other than:
a) U.S. Treasuries and LAIF, which have no limit; and
b) U.S. Agencies, which shall be limited to no more than 25% of the portfolio in any
one issuing Agency.
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2. The City Treasurer may elect to sell a security prior to its maturity and record a capital
gain or loss in order to improve the quality, liquidity or yield of the portfolio in response
to market conditions or City's risk preferences; and,
3. If securities owned by the City are downgraded to a level below the credit quality
required by this Investment Policy, it shall be the City Treasurer's policy to review the
credit situation and make a determination as to whether to sell or retain such securities in
the portfolio.
a) If a security is downgraded, the Treasurer will use discretion in determining whether
to sell or hold the security based on its current maturity, the economic outlook for the
issuer, and other relevant factors.
b) If a decision is made to retain a downgraded security in the portfolio, its presence in
the portfolio will be monitored and reported monthly to the City Council.
DEPOSITORY SERVICES:
Monies must be deposited in state or national banks, state or federal savings and loan associations,
or state or federal credit unions in the state of California. The monies may be in inactive deposits,
active deposits, or interest - bearing active deposits. The deposits in any institution cannot exceed
the amount of the bank's or savings and loan's paid up capital and surplus.
The bank, savings and loan, or federal credit union must secure the active and inactive deposits with
eligible government securities having a market value of at least 110% of the total amount of the
deposits.
Funds held in a bank should be limited to weekly cash flow needs, and excess funds should be
either invested in LAIF or a money market mutual fund. Any depository institution used by the
City should provide overnight sweep vehicles that comply with this Investment Policy and the State
Government Code.
QUALIFIED DEALERS AND INSTITUTIONS:
Except for transactions with the State and County investment pools, the City shall transact
investment business only with banks, savings and loans, and with investment securities dealers as
defined in Government Code Section 53601.5:
"The purchase by a local agency of any investment authorized pursuant to Section
53601 or 53601.1, not purchased directly from the issuer, shall be purchased either
from an institution licensed by the state as a broker - dealer, as defined in Section
25004 of the Corporations Code, or from a member of a federally regulated
securities exchange, from a national or state - chartered bank, from a federal or state
association (as defined by Section 5102 of the Financial Code) or from a brokerage
firm designated as a primary government dealer by the Federal Reserve bank."
The City Treasurer shall investigate institutions that wish to do business with the City in order to
determine if they are adequately capitalized, make markets in securities appropriate to the City's
needs. Specifically, in order to achieve these objectives:
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The Treasurer shall establish a list of qualified securities dealers, and shall obtain a certification
submitted by all financial institutions with which the City has an investment relationship on an annual
basis. The certification shall state that the institution has reviewed the City's investment management
plan and that it will:
• Exercise due diligence in monitoring the activities of its officers and employees
engaged in transactions with the City.
• Ensure that all of its officers and employees offering investments to the City
are trained in the precautions appropriate to public sector investments.
In order to be qualified for use by the City, a qualifying institution must have:
a) At least three years experience operating with California municipalities. In
addition, individual traders or agents representing a dealer must have a minimum
of one year experience operating with California municipalities;
b) An inventory of trading securities of at least $10 million.
SAFEKEEPING AND CUSTODY OF SECURITIES:
To protect against potential losses caused by the collapse of individual securities dealers, all
securities owned by the City, except for investments with LAIF, Repurchase Agreements as
authorized in this Policy shall be kept in safekeeping by a third party custodian acting as agent for
the City under the terms of a custody agreement executed by the bank and by the City. These funds
will be held in the City's name. All trades will be executed by delivery vs. payment (DVP). This
ensures that securities are deposited to the third party safe keeper prior to release of the City's funds
to the broker, for a purchase, and ensures that cash is deposited with the safe keeper prior to release
of the City's security for a sale.
COMPETITIVE PURCHASE AND SALE OF ALLOWED SECURITIES:
Except for purchases in LAIF or with a Mutual Fund otherwise authorized in this Policy, any
purchase or sale of individual securities shall be made after soliciting at least three quotes from
authorized brokers, either verbally or in writing. The Treasurer shall make the purchase or sale
from the broker that offers the best executable price for the security. In the case of a tie of two or
more brokers, the Treasurer shall select by his/her choice. The Treasurer shall maintain
documentation relating to investment quotes for six months.
ETHICS AND CONFLICTS OF INTEREST:
The City Treasurer and Deputy City Treasurers shall file a State Form 700 annually, wherein they
must disclose all personal assets such as stocks, bonds, properties, business entities, etc., in which
said officials may be involved and which could create a conflict of interest with the proper
execution of their offices or impair their ability to make impartial decisions.
REPORTING:
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The Treasurer shall present to the City Council a quarterly report showing the types of investments,
institutions of investment, dates of maturity, amounts of deposit, current market value for all
securities, rates of interest, and other such data as may be required by the City Council.
INVESTMENT OVERSIGHT COMMITTEE:
The City shall establish an Investment Oversight Committee that shall meet at least quarterly. The
committee shall consist of, at a minimum, the City Treasurer, the City Manager, and the Finance
Director.
The purpose of the committee is to:
• Review the portfolio on a quarterly basis to ensure compliance with the City's
Investment Policy and the requirements of the State of California.
• Make recommendations to Council to change the Investment Policy where
appropriate.
• Meet as needed to review the investment portfolio as a result of changes in the
marketplace or the economic position of any company or agency that affects the
City's investments.
The City Treasurer will report on any recommendations and/or actions taken by the Investment
Oversight Committee in his/her quarterly investment reports to the full City Council. The
Investment Oversight Committee shall meet and report at least semi - annually with the
FinanceBudget/Investment Committee of the City Council.
INTERNAL CONTROLS:
The Treasurer and the Finance Director are responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the entity are protected from loss, theft, or
misuse. The internal control of the structure shall be designed to provide reasonable assurance that
these objectives are met.
Management responsibility for the investment program is delegated to the elected City Treasurer
who shall be responsible for all investment transactions. The Deputy City Treasurer(s), appointed
by the City Treasurer, acts at the discretion and direction of the City Treasurer.
WIRE TRANSFER CONFIRMATIONS:
Due to the need to preserve segregation of duties and checks and balances, all non - recurring,
outgoing wire transactions initiated by the City Treasurer or a Deputy Treasurer appointed by the
City Treasurer shall be confirmed by the bank with a second person, either a Deputy Treasurer or an
authorized person within the Finance Department, prior to the completion of that wire transfer.
Recurring/repetitive wire transactions, such as with LAIF, or to meet regular debt service payments,
may be exempted from a second confirmation requirement, provided that a list of recurring wire
transfers is established with the bank and that both the City Treasurer and the Finance Director
approve the list.
POLICY REVIEW:
This Investment Policy shall be reviewed at least annually to ensure its consistency with the overall
objectives of safety of principal, liquidity, and yield. The Policy should also be relevant to current
law, financial and economic trends, and should meet the needs of the City of South San Francisco.
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Appendix I
GLOSSARY OF INVESTMENT TERMS°
Agencies. Shorthand market terminology for any obligation issued by a government- sponsored
entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the
full faith and credit of the US government. Examples are:
FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full
faith and credit of the US government to certain bank deposits and debt obligations.
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the
agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and
liquidity in the housing market. FHLMC also called "FreddieMac" issues discount notes,
bonds and mortgage pass - through securities. Only discount notes and bonds are authorized
by this policy.
FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was
established to provide credit and liquidity in the housing market. FNMA, also known as
"FannieMae," issues discount notes, bonds and mortgage pass- through securities.
PEFCO. The Private Export Funding Corporation assists exporters.
TVA. The Tennessee Valley Authority provides flood control and power and promotes
development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA
currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
ASSET BACKED SECURITIES (ABS). Asset Backed Securities are pass- through instruments
collateralized by installment loans, leases, revolving lines of credit or other consumer finance
receivables. Securitizations are structured to separate the credit of the ABS issuer from the assets
being securitized.
Banker's acceptance. A money market instrument created to facilitate international trade
transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to
the bank which "accepts" the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market
index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
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Broker. A broker brings buyers and sellers together for a transaction for which the broker receives
a commission. A broker does not sell securities from his own position.
Callable. A callable security gives the issuer the option to call it from the investor prior to its
maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an
issuer issues securities, it will likely call its current securities and reissue them at a lower rate of
interest. Callable securities have reinvestment risk as the investor may receive its principal back
when interest rates are lower than when the investment was initially made.
Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.
Large denomination CDs may be marketable.
Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase
agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
Commercial paper. The short -term unsecured debt of corporations.
Cost yield. The annual income from an investment divided by the purchase cost. Because it does
not give effect to premiums and discounts which may have been included in the purchase cost, it is
an incomplete measure of return.
Coupon. The rate of return at which interest is paid on a bond.
Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely
manner due to changes in the condition of the issuer.
Current yield. The annual income from an investment divided by the current market value. Since
the mathematical calculation relies on the current market value rather than the investor's cost,
current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying
securities for his own position.
Debenture. A bond secured only by the general credit of the issuer.
Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security
must be made at the time the security is delivered to the purchaser's agent.
Derivative. Any security that has principal and/or interest payments which are subject to
uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security
which represents a component of another security which has been separated from other components
( "Stripped" coupons and principal). A derivative is also defined as a financial instrument the value
of which is totally or partially derived from the value of another instrument, interest rate or
index. Derivatives are prohibited under this Investment Policy.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is
below par. Some short -term securities, such as T -bills and banker's acceptances, are known as
discount securities. They sell at a discount from par, and return the par value to the investor at
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maturity without additional interest. Other securities, which have fixed coupons, trade at a discount
when the coupon rate is lower than the current market rate for securities of that maturity and/or
quality.
Diversification. Dividing investment funds among a variety of investments to avoid excessive
exposure to any one source of risk.
Duration. The weighted average time to maturity of a bond where the weights are the present
values of the future cash flows. Duration measures the price sensitivity of a bond to changes in
interest rates. (See modified duration).
Federal funds rate. The rate of interest charged by banks for short-term loans to other banks. The
Federal Reserve Bank through open - market operations establishes it.
Federal Open Market Committee: A committee of the Federal Reserve Board that establishes
monetary policy and executes it through temporary and permanent changes to the supply of bank
reserves.
Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at
a rate higher than the cost of borrowing.
Liquidity: The speed and ease with which an asset can be converted to cash.
Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the
remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a
lump sum payment that equals the net present value (NPV) of future coupon payments that will not
be paid because of the call. With this type of call, an investor is compensated, or "made whole."
Margin: The difference between the market value of a security and the loan a broker makes using
that security as collateral.
Market risk. The risk that the value of securities will fluctuate with changes in overall market
conditions or interest rates.
Market value. The price at which a security can be traded.
Marking to market. The process of posting current market values for securities in a portfolio.
Maturity. The final date upon which the principal of a security becomes due and payable.
Medium term notes. Unsecured, investment -grade senior debt securities of major corporations
which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are
highly flexible debt instruments that can be structured to respond to market opportunities or to
investor preferences.
Modified duration. The percent change in price for a 100 basis point change in yields. Modified
duration is the best single measure of a portfolio's or security's exposure to market risk.
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Money market. The market in which short term debt instruments (Tbills, discount notes,
commercial paper and banker's acceptances) are issued and traded.
Mortgage pass- through securities. A securitized participation in the interest and principal
cashflows from a specified pool of mortgages. Principal and interest payments made on the
mortgages are passed through to the holder of the security. These securities are prohibited under this
Policy.
Mutual fund. An entity which pools the funds of investors and invests those funds in a set of
securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in
various types of domestic and/or international stocks, bonds and money market instruments, as set
forth in the individual fund's prospectus.
Nationally Recognized Statistical Ratings Organization. The formal term to describe credit
rating agencies that provide credit ratings that are used by the U.S. government in several regulatory
areas. Ratings provided by Nationally Recognized Statistical Ratings Organizations (NRSRO) are
used frequently by investors and are used as benchmarks by federal and state agencies.
Premium. The difference between the par value of a bond and the cost of the bond, when the cost is
above par.
Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve
in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for
statistical reporting purposes in compiling data on activity in the U.S. Government securities
market.
Prudent person (man) rule. A standard of responsibility which applies to fiduciaries. In
California, the rule is stated as "Investments shall be managed with the care, skill, prudence and
diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity
and familiar with such matters, would use in the conduct of an enterprise of like character and with
like aims to accomplish similar purposes."
Realized yield. The change in value of the portfolio due to interest received and interest earned and
realized gains and losses. It does not give effect to changes in market value on securities, which
have not been sold from the portfolio.
Regional dealer. A financial intermediary that buys and sells securities for the benefit of its
customers without maintaining substantial inventories of securities and that is not a primary dealer.
Repurchase agreement (Repo). Short term purchases of securities with a simultaneous agreement
to sell the securities back at a higher price. From the seller's point of view, the same transaction is a
reverse repurchase agreement.
Safekeeping. A service whereby securities are held by a bank in the customer's name.
Supranational. A supranational entity is formed by two or more central governments with the
purpose of promoting economic development for the member countries. Supranational institutions
finance their activities by issuing debt, such as supranational bonds.
13
Total rate of return. A measure of a portfolio' performance over time. It is the internal rate of
return, which equates the beginning value of the portfolio with the ending value; it includes interest
earnings, realized and unrealized gains and losses in the portfolio.
U.S. Treasury obligations. Securities issued by the U.S. Treasury and backed by the full faith and
credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark
for interest rates on all other securities in the US and overseas. The Treasury issues both discounted
securities and fixed coupon notes and bonds.
Treasury bills. All securities issued with initial maturities of one year or less are issued as
discounted instruments, and are called Treasury bills ( Tbills). The Treasury currently issues three -
and six -month Tbills at regular weekly auctions. It also issues "cash management" bills as
needed to smooth out cash flows.
Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury
notes, and pay interest semi - annually.
Treasury bonds. All securities issued with initial maturities greater than ten years are called
Treasury bonds. Like Treasury notes, they pay interest semi - annually.
Volatility. The rate at which security prices change with changes in general economic conditions
or the general level of interest rates.
Yield to Maturity. The annualized internal rate of return on an investment which equates the
expected cash flows from the investment to its cost.
c@Copyright 2011 by Chandler Asset Management, Inc.
14
City of South San Francisco P.O. Box 711 (City Hall, 400
Grand Avenue)
out San Francisco, CA
Staff Report
File Number: 16 -251
Agenda Date: 6/22/2016 Version: 1 Status: Passed
In Control: Special City Council File Type: Resolution
Agenda Number: 1a.
Resolution approving the Treasurer's Investment Policy for Fiscal Year 2016 -2017
WHEREAS, the City of South San Francisco ( "City ") has an elected City Treasurer
( "Treasurer ") whose election has been certified by the City Clerk; and
WHEREAS, the City Treasurer has appointed Deputy Treasurers, and those appointments were
confirmed by Resolution of the City Council on February 12, 2014; and
WHEREAS, California Government Code Section 53646 provides that the Treasurer of a city
may annually render to the legislative body of that local agency a statement of investment
policy, which the legislative body of the local agency shall consider at a public meeting; and
WHEREAS, the City Council reviewed a proposed Investment Policy for Fiscal Year
2016 -2017 ( "Investment Policy ") provided by the City Treasurer on June 22, 2016; and
WHEREAS, an annual review of the Investment Policy provides prudent financial oversight.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San
Francisco, at a duly noticed public meeting has received, reviewed and adopts the Investment
Policy for Fiscal Year 2016 -2017, set forth in Exhibit A, attached hereto and incorporated
herein by this reference.
City of South San Francisco Page 1 Printed on 7/28/2016
City of South San Francisco P.O. Box 711 (City Hall, 400
Grand Avenue)
out San Francisco, CA
Staff Report
File Number: 16 -405
Agenda Date: 6/22/2016 Version: 1 Status: Agenda Ready -
Administrative Business
In Control: Special City Council File Type: Staff Report
Agenda Number: 2
Report of resolution approving a shuttle services agreement with PCAM, LLC in an amount not
to exceed $430,000 for the operations of the South City Shuttle for the period July 1, 2016
through June 30, 2018. (Justin Lovell, Public Works Administrator)
..label
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving a shuttle services
agreement with PCAM, LLC in an amount not to exceed $430,000 for the operations of
the South City Shuttle for the period of July 1, 2016 through June 30, 2018.
BACKGROUND /DISCUSSION
In May 2014, San Mateo County Transportation Authority (TA) awarded the City of South San
Francisco funds from the San Mateo County Shuttle Program category of the Measure A 'h cent
sales tax. The funds were designated to operate a free community shuttle that replaced
SamTrans routes that were modified or eliminated as part of SamTrans service changes. The
funds from the TA were for a two year cycle ending June 30, 2016.
The South City Shuttle began operations November 3, 2014. The South City Shuttle is a free
community shuttle that makes 15 trips a day beginning at 7:15 a.m. and ending at 6:40 p.m.,
Monday through Friday, excluding holidays. The shuttle begins and ends at the South San
Francisco BART station and provides access to Hillside Boulevard, Linden Avenue, downtown
South San Francisco, Orange Park, Main Library, Rotary Plaza and Kaiser Medical Center.
Since its inception in November 2014, the South City Shuttle has proved to be a success by
providing trips to nearly 60,000 riders. The most recent data available from the month of May
2016 showed an average of 28 riders an hour.
On December 12, 2015 the San Mateo County Transportation Authority (TA) jointly with the
City /County Association of Governments (C /CAG) issued a joint call for projects for another
two year cycle for the San Mateo County Shuttle Program. Due to the continued success of the
South City Shuttle operations, on January 27, 2016, the City Council by resolution 10 -2016,
supported the City's application for the Shuttle Program funds, committing $121,836 in
matching funds, and authorizing the City Manager to execute a Funding Agreement with the
TA if awarded the funds. On May 5, 2016 the TA Board approved the City's application for
continued operations of the South City Shuttle for $360,507.
City of South San Francisco Page 1 Printed on 7/28/2016
File Number: 16 -405
Shuttle Operations
Staff issued a request for proposals (RFP) to shuttle transportation companies to provide shuttle
operations services for a two year period from July 1, 2106 to June 30, 2018. The RFP also
include provisions for the City with the option to extend the agreement for an additional two
(2), two -year terms contingent on funding availability. Staff received two (2) proposals for
shuttle operations services from: (1) MV Transportation, and (2) PCAM, LLC.
When entering into a specialized services contract, the skill, ability, and expertise of the entity
or person performing the services is a key component of the selection criteria, and cost is only
one factor in determining the selection. Three staff members including two from Public Works
Department and one from the Economic and Community Development Department reviewed
and scored the proposals. The proposals were scored based on a number of factors, including:
cost to provide service with a gasoline or diesel fueled shuttle, firm qualifications, and ability to
provide shuttle vehicles options including low floor for improved accessibility and /or ability to
offer a shuttle that used alternative fuel such as compressed natural gas. Additional bonus
points were awarded per State Labor Code 1072, which allows a 10% bonus if the bidder
retains employees from a previous contractor. Both proposals stated that they would retain
current contractor employees if awarded the agreement. The final scores between PCAM and
MV are as follows:
Scoring Criteria Points Available PCAM MV
Costs 75 71.1 70.6
Qualifications 20 18.5 19.7
Shuttle vehicle options 15 15.0 11.7
Ease and readability 10 8.7 9.3
Bonus for State Labor Code 1072 12 11.3 11.1
Total 132 124.6 122.4
The proposals were competitive in both price and qualifications. Based on the review of the
proposals and scores between each bidder, staff recommends entering into a shuttle services
agreement with PCAM, LLC. PCAM, LLC is the current contracted shuttle operations provider
for the South City Shuttle.
With the new shuttle services agreement, there will be rider enhancements and increased
accessibility including the following:
• Low -floor vehicle, which uses a ramp to allow those will wheelchairs, walkers, and
climbing limitations easier accessibility into and out of the shuttle. The new low floor
vehicle will be outfitted with vehicle graphics using the same design for the current
shuttle.
• GPS systems will be installed in the shuttle that will allow close monitoring for the
route performance.
• A standalone app available for riders to track real time shuttle location.
Staff intends to maintain the current route and schedule for the South City Shuttle with minor
schedule adjustments as needed to maintain on -time performance.
City of South San Francisco Page 2 Printed on 7/28/2016
File Number: 16 -405
VT TAmTAT! =
The South City Shuttle is funded through the San Mateo County Transportation Authority
Measure A Shuttle Program funds, South San Francisco local Measure A and a grant through
Kaiser.
Funding Sources
SMCTA - Measure A $360,507
SSF - Measure A $121,836
Kaiser $ 5,000
Total $487,343
Project Budget
Shuttle Operations $430,000
Call Center /Marketing $ 26,743
Contract Management $ 30,600
Total $487,343
The appropriations of the funds for the South City Shuttle will be part of a separate agenda item
as part of the fiscal year 2016 -17 budget items.
CONCLUSION
Entering into a shuttle services agreement will allow the South City Shuttle to continue its
services for an additional two years, providing free public transportation options to the South
San Francisco community.
Attachments:
SCS Shuttle Services PowerPoint
Draft Shuttle Services Agreement
City of South San Francisco Page 3 Printed on 7/28/2016
City of South San Francisco
South City Shuttle
2016 -2018
City Council
June 22, 2016
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Recommendation
• Adopt resolution awarding shuttle services
agreement to PCAM, LLC in a not to exceed
amount of $430,000 for the term July 1, 2016
to June 20, 2018
SHUTTLE SERVICES AGREEMENT BETWEEN
THE CITY OF SOUTH SAN FRANCISCO AND
PCAM, LLC
THIS AGREEMENT for shuttle services is made by and between the City of South San Francisco ( "City ")
and PCAM, LLC ( "Contractor ") (together sometimes referred to as the "Parties ") as of July 1, 2016 (the
"Effective Date ").
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Contractor
shall provide to City the services described in the Scope of Work attached as Exhibit A, attached hereto
and incorporated herein, at the time and place and in the manner specified therein. In the event of a
conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall
prevail.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall
end on June 30, 2018, the date of completion specified in Exhibit A, and Contractor shall
complete the work described in Exhibit A prior to that date, unless the term of the
Agreement is otherwise terminated or extended, as provided for in Section 8. The time
provided to Contractor to complete the services required by this Agreement shall not affect
the City's right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Contractor shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Contractor is engaged in the geographical area in
which Contractor practices its profession. Contractor shall prepare all work products
required by this Agreement in a substantial, first -class manner and shall conform to the
standards of quality normally observed by a person practicing in Contractor's profession.
1.3 Assignment of Personnel. Contractor shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Contractor shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Contractor shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Sections 1.1 and 1.2 above and to satisfy Contractor's obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Contractor a sum not to exceed Four
Hundred Thirty Thousand dollars ($430,000.00), notwithstanding any contrary indications that may be
contained in Contractor's proposal, for services to be performed and reimbursable costs incurred under this
Agreement. In the event of a conflict between this Agreement and Contractor's proposal, attached as
Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Contractor
for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 1 of 14
payments specified below shall be the only payments from City to Contractor for services rendered
pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.
Except as specifically authorized by City, Contractor shall not bill City for duplicate services performed by
more than one person.
Contractor and City acknowledge and agree that compensation paid by City to Contractor under this
Agreement is based upon Contractor's estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Contractor. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and /or annuities to which Contractor and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Contractor shall submit invoices not later than six (6) business days after the
end of the month for the previous months services during the term of this Agreement,
based on the cost for services performed and reimbursable costs incurred prior to the
invoice date. Invoices shall contain the following information:
• Serial identifications of progress bills (i.e., Progress Bill No. 1 for the first invoice,
etc.);
• The beginning and ending dates of the billing period;
• Total number of billable hours performed under the Agreement
• A task summary containin he total due this period, ;
• The amount and purpo of actual expenditures for which reimbursement is
sought; o
• The Contractor's signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City
shall have thirty (30) days from the receipt of an invoice that complies with all of the
requirements above to pay Contractor. City shall have no obligation to pay invoices
submitted ninety (9 days ast the performance of work or incurrence of cost.
2.3 Final Payment. City shall pay the last ten percent (10 %) of the total sum due pursuant to
this Agreement within sixty (60) days after completion of the services and submittal to City
of a final invoice, if all services required have been satisfactorily performed.
2.4 Total Payment. City shall pay for the services to be rendered by Contractor pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Contractor in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
In no event shall Contractor submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC Page 2 of 14
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Contractor on an hourly basis shall not exceed
the amounts shown in Exhibit B.
2.6 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes
incurred under this Agreement and any similar federal or state taxes. Contractor
represents and warrants that Contractor is a resident of the State of California in
accordance with California Revenue & Taxation Code Section 18662, as may be
amended, and is exempt from withholding. Contractor accepts sole responsible for
verifying the residency status of any subcontractors and withhold taxes from non - California
subcontractors as required by law.
2.7 Payment upon Termination. In the event that the City or Contractor terminates this
Agreement pursuant to Section 8, the City shall compensate the Contractor for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Contractor shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
2.8 Authorization to Perform Services. The Contractor is not authorized to perform any
services or incur any costs whats er under the terms of this Agreement until receipt of
authorization from the Contract A nistrator.
2.9
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Contractor shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Contractor only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Contractor, at its own cost and expense, unless otherwise specified below, shall procure the types and
amounts of insurance listed below against claims for injuries to persons or damages to property that may
arise from or in connection with the performance of the work hereunder by the Contractor and its agents,
representatives, employees, and subcontractors. Consistent with the following provisions, Contractor shall
provide Certificates of Insurance, attached hereto and incorporated herein as Exhibit D, indicating that
Contractor has obtained or currently maintains insurance that meets the requirements of this section and
under forms of insurance satisfactory, in all respects, to the City and the San Mateo County Transportation
Authority ( "TA "). Contractor shall maintain the insurance policies required by this section throughout the
term of this Agreement. The cost of such insurance shall be included in the Contractor's bid. Contractor
shall not allow any subcontractor to commence work on any subcontract until Contractor has obtained all
insurance required herein for the subcontractor(s).
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 3 of 14
4.1 Workers' Compensation. Contractor shall, at its sole cost and expense, maintain
Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any
and all persons employed directly or indirectly by Contractor. The Statutory Workers'
Compensation Insurance and Employer's Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000) per accident. In the alternative,
Contractor may rely on a self- insurance program to meet those requirements, but only if
the program of self- insurance complies fully with the provisions of the California Labor
Code. Determination of whether a self- insurance program meets the standards of the
Labor Code shall be solely in the discretion of the Contract Administrator (as defined in
Section 10.9). The insurer, if insurance is provided, or the Contractor, if a program of self -
insurance is provided, shall waive all rights of subrogation against the City and its officers,
officials, employees, and volunteers for loss arising from work performed under this
Agreement.
4.2 Commercial General and Automobile Liabilitv Insurance.
4.2.1 General requirements. Contractor, at its own cost and expense, shall maintain
commercial general, automobile liability, and business automobile physical
damage insurance for the term of this Agreement in an amount not less than ONE
MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit
coverage for risks associated with the work contemplated by this Agreement. An
additional excess liability coverage in an amount not less than TEN MILLION
DOLLARS ($10,000,000.00) per occurrence shall also be maintained. If a
Commercial General Liability Insurance or an Automobile Liability form or other
form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required occurrence limit. Such
coverage shall include but shall not be limited to, protection against claims arising
from bodily and personal injury, including death resulting there from, and damage
to property resulting from activities contemplated under this Agreement, including
the use of owned and non -owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 or GL 0002 (most recent editions) covering comprehensive General
Liability and Insurance Services Office form number GL 0404 covering Broad
Form Comprehensive General Liability. Automobile coverage shall be at least as
broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90)
Code 8 and 9. No endorsement shall be attached limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC Page 4 of 14
a. The insurance shall cover on an occurrence or an accident basis, and not on a
claims -made basis.
b. Insurance must cover all owned, non -owned and hired autos, and include a
Waiver of Subrogation in favor of the City and the TA.
C.. Any failure of Contractor to comply with reporting provisions of the policy
shall not affect coverage provided to City and its officers, employees,
agents, and volunteers.
4.3 All Policies Requirements.
4.3.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than ANIL
4.3.2 Verification of coverage. Prior to beginning any work under this Agreement,
Contractor shall furnish City with complete copies of all policies delivered to
Contractor by the insurer, including complete copies of all endorsements attached
to those policies. All copies of policies and certified endorsements shall show the
signature of a person authorized by that insurer to bind coverage on its behalf. If
the City does not receive the required insurance documents prior to the Contractor
beginning work, it shall not waive the Contractor's obligation to provide them. The
City reserves the right to require complete copies of all required insurance policies
at any time. 6
4.3.3 Notice of Reduction in or Cancellation of Coverage. A certified endorsement
shall be attached to all insurance obtained pursuant to this Agreement stating that
coverage shall not be suspended, voided, canceled by either party, or reduced in
coverage or in limits, except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City. In the event that any
coverage required by this section is reduced, limited, cancelled, or materially
affected in any other manner, Contractor shall provide written notice to City at
Contractor's earliest possible opportunity and in no case later than ten (10)
working days after Contractor is notified of the change in coverage.
4.3.4 Additional insured; primary insurance. City and its officers, employees, agents,
volunteers, and the TA shall be covered as additional insureds with respect to
each of the following: liability arising out of activities performed by or on behalf of
Contractor, including the insured's general supervision of Contractor; products and
completed operations of Contractor, as applicable; premises owned, occupied, or
used by Contractor; and automobiles owned, leased, or used by the Contractor in
the course of providing services pursuant to this Agreement. The coverage shall
contain no special limitations on the scope of protection afforded to City or its
officers, employees, agents, or volunteers.
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 5 of 14
A certified endorsement must be attached to all policies stating that coverage is
primary insurance with respect to the City and its officers, officials, employees and
volunteers, and that no insurance or self- insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
4.3.5 Deductibles and Self- Insured Retentions. Contractor shall disclose to and
obtain the approval of City for the self- insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
Further, if the Contractor's insurance policy includes a self- insured retention that
must be paid by a named insured as a precondition of the insurer's liability, or
which has the effect of providing that payments of the self- insured retention by
others, including additional insureds or insurers do not serve to satisfy the self -
insured retention, such provisions must be modified by special endorsement so as
to not apply to the additional insured coverage required by this agreement so as to
not prevent any of the parties to this agreement from satisfying or paying the self -
insured retention required to be paid as a precondition to the insurer's liability.
Additionally, the certificates of insurance must note whether the policy does or
does not include any self- insured retention and also must disclose the deductible.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Contractor may increase such deductibles
or self- insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self- insured retention levels with a requirement that Contractor
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.3.6 Subcontractors. Contractor shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.3.7 Wasting Policy. No insurance policy required by Section 4 shall include a
"wasting" policy limit.
4.3.8 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverage, scope, limits, and forms of
such insurance are either not commercially available, or that the City's interests
are otherwise fully protected.
4.4 Remedies. In addition to any other remedies City may have if Contractor fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC Page 6 of 14
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Contractor's breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
b. Order Contractor to stop work under this Agreement or withhold any payment that
becomes due to Contractor hereunder, or both stop work and withhold any payment,
until Contractor demonstrates compliance with the requirements hereof; and /or
c. Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONTRACTOR'S RESPONSIBILITIES. Contractor shall
indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers,
employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions,
damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to
property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole
or in part, by the willful misconduct or negligent acts or omissions of Contractor or its employees,
subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character
of their work. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage
to property, or violation of law arises wholly from the gross negligence or willful misconduct of the City or its
officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees,
subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or
violation of law. It is understood that the duty of Contractor to indemnify and hold harmless includes the
duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance
certificates and endorsements required under this Agreement does not relieve Contractor from liability
under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall
apply to any damages or claims for damages whether or not such insurance policies shall have been
determined to apply. By execution of this Agreement, Contractor acknowledges and agrees to the
provisions of this Section and th ' a m 'al element of consideration.
In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services
under this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Contractor shall
indemnify, defend, and hold harmless City for the payment of any employee and /or employer contributions
for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6. STATUS OF CONTRACTOR.
6.1 Independent Contractor. At all times during the term of this Agreement, Contractor shall
be an independent contractor and shall not be an employee of City. City shall have the
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC Page 7 of 14
right to control Contractor only insofar as the results of Contractor's services rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however, otherwise City shall not have the right to control the means by which Contractor
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
all claims to, any compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and /or employee contributions for PERS benefits.
6.2 Contractor No Agent. Except as City may specify in writing, Contractor shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent or to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governinq Law. The laws of the State of California sha r is Agreement.
7.2 Compliance with Applicable Laws. Contractor and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Contractor and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Contractor represents and warrants to City that Contractor and its
employees, agents, and any subcontractors have all licenses, permits, qualifications, and
approvals, including from City, of what -so -ever nature that are legally required to practice
their respective professions. Contractor represents and warrants to City that Contractor
and its employees, agents, any subcontractors shall, at their sole cost and expense, keep
in effect at all times during the term of this Agreement any licenses, permits, and approvals
that are legally required to practice their respective professions. In addition to the
foregoing, Contractor and any subcontractors shall obtain and maintain during the term of
this Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Contractor shall not discriminate, on the
basis of a person's race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any
employee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Contractor under this
Agreement. Contractor shall comply with all applicable federal, state, and local laws,
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 8 of 14
policies, rules, and requirements related to equal opportunity and nondiscrimination in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations required
of Contractor thereby.
Contractor shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time with 60 day written notice and
without cause upon written notification to Contractor.
Contractor may cancel this Agreement for cause upon 60 days written notice to City and
shall include in such notice the reasons for cancellation.
In the event of termination, Contractor shall be entitled to compensation for services
performed to the date of notice of termination; City, however, may condition payment of
such compensation upon Contractor delivering to City all materials described in Section
9.1.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement for up to two (2) additional two (2) year terms beyond that provided for in
Subsection 1.1 f.City will provide 60 days written notice before Agreement end date if the
City intends to extend Agreement. Any such extension shall require a written amendment
to this Agreement, as provided for herein. Contractor understands and agrees that, if City
grants such an extension, City shall have no obligation to provide Contractor with
compensation beyond the maximum amount provided for in this Agreement. Similarly,
unless authorized by the Contract Administrator, City shall have no obligation to reimburse
Contractor for any o erwi eimbursable expenses incurred during the extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. City and Contractor recognize and agree that this
Agreement contemplates personal performance by Contractor and is based upon a
determination of Contractor's unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Contractor.
Contractor may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Contractor shall not assign or subcontract any
portion of the performance contemplated and provided for herein, other than to the
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 9 of 14
subcontractors noted in the proposal, without prior written approval of the Contract
Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Contractor shall survive
the termination of this Agreement.
8.6 Options upon Breach by Contractor. If Contractor materially breaches any of the terms
of this Agreement, City's remedies shall include, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Contractor pursuant to this Agreement;
8.6.3 Retain a different Contractor to complete the work described in Exhibit A not
finished by Contractor; or
8.6.4 Charge Contractor the difference between the cost to complete the work described
in Exhibit A that is unfinished at the time of breach and the amount that City
would have paid Contractor pursuant to Section 2 if Contractor had completed the
work.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Contractor's Performance. All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Contractor prepares or obtains pursuant to this Agreement and that relate to the matters
covered hereunder shall be the property of the City. Contractor hereby agrees to deliver
those documents to the City upon termination of the Agreement. It is understood and
agreed that the documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City and are
not necessarily suitable for any future or other use. City and Contractor agree that, until
final approval by City, all data, plans, specifications, reports and other documents are
confidential and will not be released to third parties without prior written consent of both
parties unless required by law.
9.2 Contractor's Books and Records. Contractor shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of three (3) years, or for any longer period
required by law, from the date of final payment to the Contractor to this Agreement.
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 10 of 14
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Contractor to maintain shall be made available for inspection, audit,
and /or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the
request of City or as part of any audit of the City, for a period of three (3) years after final
payment under the Agreement.
9.4 Records Submitted in Response to an Invitation to Bid or Request for Proposals. All
responses to a Request for Proposals (RFP) or invitation to bid issued by the City become
the exclusive property of the City. At such time as the City selects a bid, all proposals
received become a matter of public record, and shall be regarded as public records, with
the exception of those elements in each proposal that are defined by Contractor and
plainly marked as "Confidential," "Business Secret" or "Trade Secret."
The City shall not be liable or in any way responsible for the disclosure of any such
proposal or portions thereof, if Contractor has not plainly marked it as a "Trade Secret" or
"Business Secret," or if disclosure is required under the Public Records Act.
Although the California Public Records Act recognizes that certain confidential trade secret
information may be protected from disclosure, the City may not be in a position to establish
that the information that a prospective bidder submits is a trade secret. If a request is
made for information marked "Trade Secret" or "Business Secret," and the requester takes
legal action seeking release of the materials it believes does not constitute trade secret
information, by submitting a proposal, Contractor agrees to indemnify, defend and hold
harmless the City, its agents and employees, from any judgment, fines, penalties, and
award of attorneys fees awarded against the City in favor of the party requesting the
information, and any and all costs connected with that defense. This obligation to
indemnify survives the City's award of the contract. Contractor agrees that this
indemnification survives as long as the trade secret information is in the City's possession,
which includes a minimum retention period for such documents.
E,
Me, [��iTil6*111 M_1ki 1X111b1a:111TJ1.1 M ki1-3
10.1 Attorneys' Fees. If a party to this Agreement brings any action, including arbitration or 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.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 11 of 14
state courts of California in the County San Mateo or in the United States District Court for
the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is 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.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10.6 Use of Recycled Products. Contractor shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper. X
10.7 Conflict of Interest. Contractor may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Contractor in a "conflict of interest," as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Contractor shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Contractor hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Contractor was an
employee, agent, appointee, or official of the City in the previous twelve (12) months,
Contractor warrants that it did not participate in any manner in the forming of this
Agreement. Contractor understands that, if this Agreement is made in violation of
Government Code §1090 et.seq., the entire Agreement is void and Contractor will not be
entitled to any compensation for services performed pursuant to this Agreement, including
reimbursement of expenses, and Contractor will be required to reimburse the City for any
sums paid to the Contractor. Contractor understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code § 1090 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Contractor agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 12 of 14
10.9 Contract Administration. This Agreement shall be administered by Justin Lovell
( "Contract Administrator "). All correspondence shall be directed to or through the Contract
Administrator or his or her designee.
10.10 Notices. All notices and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when
received if personally delivered; (ii) when received if transmitted by telecopy, if received
during normal business hours on a business day (or if not, the next business day after
delivery) provided that such facsimile is legible and that at the time such facsimile is sent
the sending Party receives written confirmation of receipt; (iii) if sent for next day delivery
to a domestic address by recognized overnight delivery service (e.g., Federal Express);
and (iv) upon receipt, if sent by certified or registered mail, return receipt requested. In
each case notice shall be sent to the respective Parties as follows:
Contractor:
PCAM, LLC
523 W. 6th St. Suite 528
Los Angeles, CA 90014
City:
City Clerk
City of South San Francisc
400 Grand Avenue
South San Francisco, CA 94080
10.11 Integration. This Agreement, including all Exhibits attached hereto, and incorporated
herein, represents the entire and integrated agreement between City and Contractor and
supersedes all prior negotiations, representations, or agreements, either written or oral
pertaining to the matters herein.
10.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be an original and all of which together shall constitute one agreement.
10.13 Construction. The headings in this Agreement are for the purpose of reference only and
shall not limit or otherwise affect any of the terms of this Agreement. The parties have had
an equal opportunity to participate in the drafting of this Agreement; therefore any
construction as against the drafting party shall not apply to this Agreement.
The Parties have executed this Agreement as of the Effective Date.
[SIGNATURES ON FOLLOWING PAGE]
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
July 1, 2016
Page 13 of 14
CITY OF SOUTH SAN FRANCISCO
Mike Futrell
City Manager
Attest:
City Clerk
Approved as to Form:
City Attorney
r, L
2051688.4
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
PCAM, LLC
Russell Tobler
PCAM. LLC
July 1, 2016
Page 14 of 14
1 *:1:11.3119_1
SCOPE OF WORK
I. SHUTTLE OPERATIONS
PCAM shall furnish equipment and personnel needed to operate the South City Shuttle route and timetable
as shown in Exhibit C. Vehicles, materials, staffing and supplies must be of sufficient quality to ensure safe
and reliable operation. The vehicle(s) shall meet daily service requirements, which require 11.5 hours of
operation per day, beginning at 7:15 a.m. until 6:45 p.m., Monday through Friday, excluding the following
holidays:
• New Year's Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving Day
• Friday after Thanksgiving
• Christmas
1. Vehicle Requirements
PCAM shall provide a low floor vehicle such as ARBOC Spirt of Freedom19 -23 passengers or
equivalent, and meet the following specifications:
I. Comply with California Air Resources Board (CARB) emission standards.
II. The vehicles shall be model year 2012 or newer.
III. Shall be accessible as defined under the ADA.
IV. The wheelchair ramp mechanism shall be operational at all times.
V. The vehicle shall be equipped with a public address system that meets ADA requirements,
including a microphone, amplifier, interior and exterior speakers, and an interior /exterior
selector switch allowing for execution of interior and /or exterior announcements.
VI. Outfitted with either a fronmor rear bicycle racks, with space for two bicycles.
VII. The vehicle will be outfitted at City expense with vehicle graphics. The City will coordinate
installation with a graphics installer.
VIII. Have a unique vehicle identification number (ID #) on all four sides.
IX. Have a display rack and City supplied 11 "x17" maps and timetable installed inside of the
vehicle for passenger convenience.
X. The vehicles shall be equipped with an operational, real -time vehicle location system that has
the following capabilities:
a. Generate reports such as vehicle location and times at designated shuttle stops;
b. Generate on -time performance by route, vehicle, and /or fleet reports and;
c. Generate other management reports, as may be requested;
Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
- Exhibit A -
July 1, 2016
Page 1 of 5
d. Provide access to the real -time remote vehicle location system for City staff.
XI. PCAM shall have a system of communications between driver and dispatch either through a
two -way radio system or through use of a cell phone. A system that is vehicle or phone based
may be considered adequate.
XI 1. PCAM personnel shall perform a daily safety inspection before vehicle is put in- service.
It is not necessary that the second vehicle have low floor capabilities, but shall meet the specifications
above and be ADA compliant and wheelchair accessible. When used, the secondary vehicle shall have
appropriate signage placed on the passenger side of the vehicle indicating that is operating as the
"Free South City Shuttle ". The signage on the secondary vehicle will be at the expense of PCAM.
2. Operator Requirements
I. Shuttle operators shall wear a uniform and name badge.
Operator shall conform to the timetable listed in Exhi it C and meet the time points. At no
point shall it be acceptable to run ahead of sch
a. If certain trips area always behind sch le, 'swilling make service changes
to accommodate changing ridership or onditiopen,kure on -time
performance. r`
III. Accurate Trip Logs and Ridership Counts
a. Operators will manually or aut icall intain a daily trip report showing arrival and
departure times for each ti , ing ons for late or early running;
b. Operators shall manual om ally record the number of passengers boarding
or alighting at all designated stops, on each trip,
IV. Operators or an automated announcement system shall make announcements at the following
stops:
a. Hillside Drive and Chestnut Avenue
b. Hillside Drive and South San Francisco Drive
c. Linden Avenue and Aspen Avenue
d. Grand Avenue and Linden Avenue
e. Grand Avenue and Magnolia Avenue
f. West Orange Avenue at South San Francisco Library
g. Rotary Plaza on Alida Way
h. El Camino Real and West Orange Avenue
i. El Camino Real and Arroyo Drive
j. Kaiser Hospital
k. South San Francisco BART Station
V. Vehicle breakdowns shall be reported immediately to the City and to SamTrans call center
staff.
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC - Exhibit A - Page 2 of 5
a. PCAM must have a secondary vehicle available and in route within thir
minutes of breakdown notification during all hours of revenue service.
3. Service Changes
Service changes may be required from time to time, including additional daily hours, reduced daily
hours, evening, weekend and holiday service;
I. The City will endeavor to provide a 30 -day written prior notice to the Contractor of the
effective date of a service modification
II. PCAM shall make service changes as requested and will provide any additional personnel
and /or equipment necessary to implement the modification on its effective date;
III. PCAM will be compensated for supplemental event and emergency services transportation
at the respective hourly rate.
4. Vehicle Maintenance and Cleanina Standards
PCAM shall adhere to the preventative maintenance standards for each vehicle used:
I. Preventative Maintenance A service every 200 hours or every 3 months
a. Safety Checklist
b. Tire recording maintaining a minimum of 3/32" tread depth
c. Lights- exterior and interior lights and gauges
d. Windshield wipers
e. Fluid levels %4 '0
f. Battery and charging system; clean terminals and inspect cables
g. Heating /air conditioning system
h. Exhaust system and exhaust hangers and clamps
i. Steering and Suspension
j. Frame, cross members, and body joints
k. Driver shaft and U- jointsi
II. Maintenance B service on a 10 week interval including a -b in PM A above to include the
following
a. Inspect critical components (hoses, belts, etc.) replace worn or dam Inspect critical
components (hoses, belts, etc.), replace worn or damaged
b. Inspect vehicle appearance (look for body damage, rust, interior condition, etc.)
c. Engine oil and oil filter change
d. Lubricate chassis, hinges, locks, etc.
e. Check and service emission control
f. Brake inspection- record remaining life (replace worn, damaged, or leaking
components)
g. Service cooling system needed
h. Starter /charging system- check and repair or replace defiant components
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC - Exhibit A - Page 3 of 5
Inspect air cleaner element and replace as needed
III. Maintenance -C will be performed on every fourth PM interval. This PM activity will include
items a -k in PM -A identified above and the following:
a. Rotate and balance tires
b. Service front wheel bearings
c. Scope engine
d. Service automatic transmission
e. Engine tune -up and emissions
IV. The interior swept, mopped, dusted and windows cleaned daily
a. Remove marks and foreign matter (gum, grease. dirt, etc.,) as needed.
V. The exterior of each vehicle shall be washed every other day.
VI. Vehicle interiors shall be maintained free from engine exhaust fumes to minimize discomfort to
passengers and operators.
VII. All exteriors and interior cleaning of shuttle vehicles shall be documented and records provided
to City staff, upon request.
5. Documents and Resorts
PCAM shall keep accurate written records of all maintenance and repair activities, including preventive
maintenance performed on vehicles, documenting the maintenance activities according to date and
mileage.
I. All repair /work orders shall attach a copy of the source document requesting the repair (i.e.
Operator's daily inspections, preventive maintenance inspection, customer complaint, etc.) to
facilitate a proper audit trail.
II. PCAM shall make such records available to the City upon request.
PCAM is expected to prepare and submit reports listed below to the City.
III. National Transit Database Report:
a. National Transit Database (NTD) Report shall be completed and submitted to the City
no later than the 7th day of the month for the preceding month.
IV. Monthly Management Reports:
PCAM shall generate monthly reports as required by the City for each month of the contract
term. Reports must be submitted no later than the 10th day of the month for the preceding
month. The reports shall include, but be limited to the following elements:
a. Summary of any unusual activities on the shuttle or concerns regarding the shuttle
service for the preceding month.
b. The number and type of reportable and non - reportable accident and incident reports
issued, and if anyone was medically transported from the scene.
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC - Exhibit A - Page 4 of 5
c. PCAM shall submit these reports and any modifications that maybe required, for the
entire contract term (including option terms, if exercised).
V. Bi- Weekly Reports:
a. Ridership summary for the previous month including detailed operator ridership
counts, including the number of riders for each trip, and the locations and number of
riders boarding and alighting the shuttle from each stop.
VI. Accident /Incident Reports:
a. The Contractor s shall immediately report accidents /incidents by telephone and City's
contact identified in the contract;
b. The above notification shall occur after Contractor has first contacted appropriate
emergency and Contractor personnel to secure life and property, as appropriate, at the
scene of the incident;
c. The Contractor shall follow the telephone report with an electronic report, describing
the details of the accident/incident to the City within 24 hours of the occurrence of the
accident/incident;
6. Evaluations W
During the term of the agreement, the City shall retain a third party "quality services team" to complete
randomized rides to observe driver performance and timeliness, passenger conduct and passenger
experience. Both suitable and unsuitable qualitative feedback will be shared with PCAM.
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC - Exhibit A - Page 5 of 5
EXHIBIT B
COMPENSATION
PCAM will provide shuttle services including all associated equipment and personnel costs at the following
rates:
• $70.26 per hour based on providing a low floor vehicle
• $65.75 per hour when a secondary vehicle is in use
Minimum Wage: In the event there is a government- mandated increase in wage or benefits (for example,
an increase in minimum wage, the creation of living wage or increases caused by the Patient Protection
and Affordable Act), Contractor will be allowed an increase in the per -man / per -hour wage up to the
amount of the wage increase, + 42 %. The increase will commence immediately on the effective date of the
minimum wage increase date.
Annual Expenses: Expenses shall be expected to increase five percent (5 %) annually. Concurrently, a
relative percentage increase in the per -man / per -hour wage for the Contractor shall go into effect and
commence on the anniversary date of the Agreement after the completion of the second (2nd) year. The
increases will occur annually on the commencement date of the Agreement every subsequent following
year after that the Agreement is in place.
1�\
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC - Exhibit B- Page 1 of 1
EXHIBIT C
SHUTTLE ROUTE AND TIMETABLE
South City Shuttle
try Shuttie u a weekday serums that improves aces.,& to key
and transn Far resx*nts of Sough San Franm -60.
service is a pdot program of the City of South San Fmnmea.
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Shuttle Services Agreement between
City of South San Francisco and
PCAM, LLC
7:32
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Page 1 of 1
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EXHIBIT D
INSURANCE CERTIFICATES
V
Shuttle Services Agreement between July 1, 2016
City of South San Francisco and
PCAM, LLC - Exhibit D- Page 1 of 1
City of South San Francisco P.O. Box 711 (City Hall, 400
Grand Avenue)
out San Francisco, CA
Staff Report
File Number: 16 -406
Agenda Date: 6/22/2016 Version: 1 Status: Passed
In Control: Special City Council File Type: Resolution
Agenda Number: 2a.
Resolution approving a shuttle services agreement with PCAM, LLC in an amount not to
exceed $430,000 for the operations of the South City Shuttle for the period July 1, 2016 through
June 30, 2018
WHEREAS, on May 5, 2016 the San Mateo County Transportation Authority Board of
Directors programmed and allocated $360,507 from the New Measure A Local Shuttle
Program Category ( "Measure A Funds ") for the City of South City Shuttle Project ( "the
Project "); and
WHEREAS, the City is required to provide a 25% match in the amount of $121,836 for the
Project; and
WHEREAS, Kaiser Permanente committed to provided $5,000 to support the South City
Shuttle operations; and
WHEREAS, the total Project Budget is $487,343 and adequate funds are budgeted for the
Project; and
WHEREAS, the City of South San Francisco ( "the City ") may procure and administer any
professional service and/or other contract to perform the work of operating the Project; and
WHEREAS, City staff solicited proposals for the Project; and
WHEREAS, staff received proposals from two (2) firms; and
WHEREAS, after reviewing the proposals, PCAM, LLC was identified as the preferred
service provider based on their overall costs, qualifications and ability to provide safe and
reliable transportation services; and
WHEREAS, staff recommends entering into a Shuttle Operations Services Agreement for
the South City Shuttle with PCAM, LLC of Los Angeles, California in an amount not to
exceed $430,000.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of South San
Francisco that the City Council hereby approves a Shuttle Services Agreement for the South
City Shuttle with PCAM, LLC of Los Angeles, California, in a total amount not to exceed
City of South San Francisco Page 1 Printed on 7/28/2016
File Number: 16 -406
$430,000 conditioned on PCAM, LLC's timely execution of the agreement and submission
of all required documents, including but not limited to, certificates of insurance and
endorsements, in accordance with the agreement documents.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the
documents on behalf of the City upon timely submission by PCAM, LLC signed agreement
and all other documents, subject to approval as to form by the City Attorney.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take any other
necessary actions consistent with the intent of this resolution.
City of South San Francisco Page 2 Printed on 7/28/2016
City of South San Francisco P.O. Box 711 (City Hall, 400
Grand Avenue)
out San Francisco, CA
Staff Report
File Number: 16 -477
Agenda Date: 6/22/2016 Version: 1 Status: Agenda Ready -
Administrative Business
In Control: Special City Council File Type: Staff Report
Agenda Number: 3.
Report regarding a resolution authorizing the City Manager to renew the existing Landscape
Maintenance Services Agreement with Frank and Grossman Landscaping, Inc. for citywide
landscape maintenance services in an amount not to exceed $511,176 (Sharon Ranals, Director
of Parks and Recreation)
..label
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager
to renew the existing Landscape Maintenance Services Agreement with Frank and
Grossman Landscaping, Inc. for citywide landscape maintenance services in an amount
not to exceed $511,176 for a 12 month term.
BACKGROUND /DISCUSSION
The City of South San Francisco currently contracts out for certain specialized landscape
maintenance services throughout the City. These specialized contracted services are necessary
to keep up with the extensive and varied landscape maintenance responsibilities to maintain
safety and appearance. In 2014, the City issued a formal Request for Proposals for specialized
landscaping services for specified locations and enhanced service levels. Frank and Grossman
Landscaping, Inc. was selected based on a number of factors, including the firm's overall
expertise, experience, ability to provide landscape services within the stated schedule, size of
labor force allocated, ability to achieve the objectives stated in the proposal, as well as cost.
When the original contract was negotiated, a stipulation was included that if mutually agreed
upon, the contract could be renewed. Based on the work that Frank and Grossman has done in
the initial term of service, staff recommends that City Council adopt a resolution allowing a one
year extension of the contract.
The agreement covers all specialized labor, material, tools and equipment necessary to maintain
ornamental planting, including, but not limited to lawns, groundcovers and shrubs (trees are
excluded), safety zones, drainage areas, weed control on selected median hardscapes, poles,
posts, wire, irrigation sprinkler heads, lateral lines up to the valves (not including valves or
water mains downstream of the water meter), clocks, public walkways, Centennial Way and
Dog Park. Services include the cost of necessary repairs, replacements, care, and any and all
other items necessary for proper maintenance and operation. Additionally, removal of graffiti
on the asphalt paving surfaces, such as Centennial Way, using paint provided by the City, and
removal of stickers and tagging using soy -based biodegradable products are included in the
City of South San Francisco Page 1 Printed on 7/28/2016
File Number: 16 -477
scope of work. The contracted service does not include repairs and maintenance of lighting
systems, gates, benches, railings, homeowner fences, walls, sidewalks and curb and gutter
(except weed control).
The City's continuing objectives for this contract include the following:
• Provide high - quality professional landscape maintenance services for various medians,
islands, and right -of -ways within the City.
• Work in collaboration with the City to identify areas where reduction of maintenance,
energy and water can result in an overall cost savings for the City.
• Work in collaboration with the City to implement these identified strategies within the
Service Areas.
The current contract provides for a total monthly base price of $38,100, with an approximate
12% contingency added to cover repairs needed as a result of deferred maintenance, such as
broken irrigation and failed plant material. While the contingency will not resolve all of the
deferred maintenance within the contracted areas, it will allow the implementation of several
deferred maintenance tasks which are determined to be of the highest priority, in order to
improve appearance, reduce water use, and improve energy efficiency, as well as to permit
additional landscape enhancements, such as replacing turf with drought tolerant ground cover,
and other discretionary improvements directed by staff. Several of these types of projects were
undertaken by Frank and Grossman Landscaping, Inc. during the first term of the contract,
including improvements in the Sculpture Garden, Stonegate Common Greens, and several
medians which were in need of rehabilitation. Staff hopes to continue and build upon this
improvement in the coming year and have identified a list of high priority areas which can be
rehabilitated with this contingency amount. The contract documents stipulate that other areas
may be added to the scope of service by mutual agreement. Should any areas be added to the
contract, staff will meet and confer with union representatives of the city's Parks Maintenance
staff, as required by the terms of the current Memorandum of Understanding.
FUNDING
Funding for this project is provided through both the Common Greens Fund and the General
Fund. Sufficient funds have been allocated in the 2016/17 operating budget to cover the project
cost for the current fiscal year, including the contingency and additional landscape services
above. Additionally, the Agreement provides that the City can terminate the agreement, with or
without cause, with thirty (30) days written notice.
Shown below is the proposed project budget for the 12 month term:
Landscape Maintenance Services $457,200
Contingency (Approximately 12 %) $ 53,976
Total $511,176
CONCLUSION
Staff recommends renewing the existing contract with Frank and Grossman Landscaping, Inc.
based on the high quality of service and attention to residential requests as well as the
satisfactory collaborative partnership developed thus far between city staff and the contractor.
Renewal of the Landscape Maintenance Services Agreement with Frank and Grossman
Landscaping, Inc. will allow for the continued and improved maintenance of the selected areas
City of South San Francisco Page 2 Printed on 7/28/2016
File Number: 16 -477
of the city as defined in the scope of service.
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