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Home My WebLink About2014-03-26 e-packet PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Council Chambers, 33 Arroyo Drive, South San Francisco, California. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. KARYL MATSUMOTO Mayor RICHARD A. GARBARINO Vice Mayor MARK ADDIEGO Councilman PRADEEP GUPTA Councilman LIZA NORMANDY Councilwoman FRANK RISSO City Treasurer KRISTA MARTINELLI City Clerk STEVEN T. MATTAS Interim City Manager JASON ROSENBERG Interim City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the City Clerk’s Office located at City Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080. AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, MARCH 26, 2014 7:00 P.M. CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW PRESENTATIONS • Proclamation for Mayor's Day of Recognition for National Service. • Equal Pay Day Proclamation, accepted by Valerie Lambertson of The American Association of University Women. • Certificate of Recognition from Council for Jan Rao, Executive Director of Willow in the Wind. • Proclamation in honor of American Red Cross Month, accepted by Justin Valle of the San Mateo County Leadership Council. • Neighborhood Response Team presentation by Sergeant Danny Gil. PUBLIC COMMENTS For those wishing to address the City Council on any Agenda or non-agendized item, please complete a Speaker Card located at the entrance to the Council Chamber’s and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. COUNCIL COMMENTS/REQUESTS CONSENT CALENDAR 1. Motion to approve City Council minutes for the meeting of January 8, 2014. 2. Motion confirming payment registers for March 26, 2014. 3. Resolution authorizing the City Manager to execute Program Supplemental Agreement No. 023-N with the State of California, for the preliminary engineering of the South San Francisco Grand Boulevard Project on El Camino Real from Chestnut Avenue to Arroyo Drive. 4. Resolution authorizing execution of Contract Amendment 6 to the Consulting Services Agreement between the City of South San Francisco and MuniServices LLC to undertake sales and use tax revenue recovery services for the City's business cooperation program. REGULAR CITY COUNCIL MEETING MARCH 26, 2014 AGENDA PAGE 2 5. Waive reading and adopt an Ordinance adopting a Development Agreement for the development of a 14.5 acre site for the Centennial Village at 180 El Camino Real project in the El Camino Real Mixed Use (ECRMX) zoning district. ADMINISTRATIVE BUSINESS 6. Resolution authorizing the Mayor to execute a Cost Sharing Agreement with the County of San Mateo for a new animal care shelter. 7. Resolution awarding a Consulting Services Agreement to URS Corporation of San Jose, CA, to prepare a Project Initiation Document for the “US 101 Produce Avenue Interchange Project” (Project No. tr1404) in an amount not to exceed $449,804. 8. Motion to conceptually approve the proposed three year sewer rate plan and authorize staff to proceed with the necessary noticing for a public hearing in compliance with Proposition 218. LEGISLATIVE BUSINESS 9. Introduction of an Ordinance amending Chapter 8.50 of the City of South San Francisco Municipal Code regarding regulation of smoking to include electronic smoking devices in designated locations. PUBLIC HEARING 10. Resolution approving the second amendment to the Professional Services Agreement with American Traffic Solutions (ATS) for Red Light Camera Enforcement. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS 11. Competing water related funding initiatives. ADJOURNMENT REGULAR CITY COUNCIL MEETING MARCH 26, 2014 AGENDA PAGE 3 Attachment 1 The City of South San Francisco Proposed Three Year Sewer Rates Definition of Acronyms HCF – Hundred cubic feet = 748 gallons COD –Chemical Oxygen Demand – the amount of measured materials in the waste stream which will need biological treatment TSS –Total Suspended Solids – the amount of solids that can be physically removed from the waste stream through process Note 1: Commercial rate payers are charged at either the HCF inflow or effluent flow. Initially, all new customers are charged the influent rate and can request a change to the effluent rate if the commercial user can document reduced effluent discharge because water goes into a product or other justification to be charged at the effluent rate. Note 2: COD and TSS numbers are surcharges in addition to the flow rate. These charges can be reduced by commercial users by pretreatment of wastewater. Residential Group Number of Units Basis of Rate Calculation Existing Rate FY13-14 Proposed Rate FY14-15 ( 4% Increase)* Proposed Rate FY15-16 (4% Increase)* Proposed Rate FY16-17 (2% Increase) Single-Unit 11,655 Dwelling Unit 532 553 575 588 Multi -Unit 4,455 Dwelling Unit 532 516 516 527 Trailer 356 Dwelling Unit 477 496 516 527 *The Multi-Unit rate will decrease 3% in FY14-15 with 0% increase in FY15-16 to come in line with theTrailer rate Commercial Group Number of Connections Basis of Rate Calculation Existing Rate FY13-14 Proposed Rate FY14-15 (5% Increase)** Proposed Rate FY15-16 (0% Increase)** Proposed Rate FY16-17 (2% Increase) Light 1063 Minimum 532 553 575 588 HCF Inflow 7.04787.40027.40027.5482 Effluent 7.83368.22538.22538.3898 Moderate 172 Minimum 532 553 575 588 HCF Inflow 11.032511.584111.584111.8158 Effluent 12.259112.872112.872113.1295 Restaurant 88 Minimum 532 553 575 588 HCF Inflow 16.120516.926516.926517.2651 Effluent 17.911218.806818.806819.1829 Industrial 54 Minimum 532 553 575 588 HCF Inflow 4.22314.43434.43434.5229 Effluent 4.69294.92754.92755.0261 COD lbs. 0.43790.45980.45980.4690 TSS Ibs. 1.41781.48871.48871.5185 Institutions 192 Minimum 532 553 575 588 HCF Inflow 5.68815.97255.97256.0920 Effluent 6.31876.63466.63466.7673 Septage Haulers Gallons 0.30070.31570.31570.3220 **The minimum charge will be tied to the Single-Unit Residential rate and will change accordingly -1- Attachment 2 PROJECTED RESIDENTIAL RATE PAYER SURVEY SEWER SERVICE CHARGES SAN MATEO COUNTY (AS OF APRIL 2014) TREATING 84 UNITS OF WATER PER YEAR AGENCY COSTS IN FY 13/14 MONTARA SANITARY DIST. $2,914 HILLSBOROUGH $1,774* BURLINGAME HILLS $1,595* PACIFICA $993 MILLBRAE $913 HALF MOON BAY $862 BRISBANE $824 MENLO PARK $820* SAN BRUNO $818 BURLINGAME $770 REDWOOD CITY $695* SAN CARLOS $637* BELMONT $630 SOUTH SAN FRANCISCO (PROPOSED) $553* FOSTER CITY $553* SAN MATEO $530 EAST PALO ALTO $520* DALY CITY $442 EL GRANADA SANITARY $402* AVG. (ALL) $909 AVG. (LESS TOP THREE) $687 AVG. (LESS TOP 3 $724 AND LOWER 2) *Flat charge per year not tied to individual water consumption. Other listed rates are annual estimates based on homeowners “average” monthly domestic water consumption charges that can vary from year to year, household to household. (1 unit equals 748 gallons - so it has been calculated off of 84 units for average annual consumption.) -2- DR A F T April 11, 2014 Dear Property Owner, The City of South San Francisco (“the City”) provides your sanitary sewer service. Fees for this service are collected on your property tax bill under a line item titled SSF SEWER CHARGE. The City is proposing to raise the commercial and residential sewer service rates with some reductions in the multi- family residential rates over the next three years in order to pay for large Capital Improvement Program (CIP) projects that will improve the reliability of the City’s sewer system. The proposed rate changes will be as follows for FY2014-15: 4% (four percent) increase for Single Unit Residential and Trailer Unit Residential, 3% (three percent) decrease for Multi-Unit Residential, 5% increase for commercial users, with the exception that that minimum charge for all commercial user groups will be tied to the Single Unit Residential Rate. FY2015-16 will see a 4% (four percent) increase for Single Unit Residential and Trailer Unit Residential, 0% (zero percent) increase for Multi-Unit Residential, 0% (zero percent) increase for commercial users, with the exception that the minimum charge will be the same as the Single Unit Residential. In FY2016-17 the proposed rate change will be a 2% (two percent) increase for all user groups. The City’s sewer system includes gravity collection lines (pipes in the street), pump stations, a wastewater treatment plant and a disposal system. The percent increases presented are maximum increases. If the timing of large CIPs change or revenues come in higher than anticipated, the City may elect to not increase the rates to the maximum allowed for a particular year, it would nevertheless be able to increase them to the maximum permitted rate in a subsequent year. The attached legal Notice of Proposed Sewer Rate Increase and of Public Hearing provides detailed information on the proposed rate increases and on your rights as a property owner to voice your concerns or protests to the City. Please review the enclosed legal notice carefully. The City Council will hold a public hearing on the proposed rate increase on Wednesday, May 28, 2014 at 7:00 p.m. at the City Council Chambers, Municipal Services Building, 33 Arroyo Drive, South San Francisco, to take public testimony. Your written protests must be delivered to the City Clerk by the close of this public hearing in order to be considered. The City has scheduled a public informational meeting on Thursday, May 8, 2014 at 7:00 p.m. at the Magnolia Recreation Center, Multi-Use Room, 601 Grand Avenue, So. San Francisco. City staff and project engineers will be available to answer your questions about the proposed sewer rate increases and on the capital improvement program. As this is an informational meeting, the City Council will not be presiding over this meeting, and the City will not take any action on the rate increase at this meeting. CITY COUNCIL 2014 KARYL MATSUMOTO, MAYOR RICHARD A. GARBARINO, VICE MAYOR MARK ADDIEGO, COUNCILMEMBER PRADEEP GUPTA, PH.D., COUNCILMEMBER LIZA NORMANDY, COUNCILMEMBER MIKE FUTRELL, CITY MANAGER Attachment 3 -3- DR A F T If you have any questions about this letter, the proposed sewer improvements, the legal notice or your specific property, please contact the Water Quality Control Plant, at (650) 877-8555 or email at [email protected]. PROJECTED RESIDENTIAL SEWER SERVICE CHARGES IN SAN MATEO COUNTY (AS OF APRIL 2014) TREATING 84 UNITS OF WATER A YEAR AGENCY PROJECTED COSTS IN FY 13/14 MONTARA SANITARY DIST. $2,914 HILLSBOROUGH $1,774 * PACIFICA $993 MILLBRAE $913 HALF MOON BAY $862 BRISBANE $824 MENLO PARK $820 * SAN BRUNO $818 BURLINGAME $770 REDWOOD CITY $695 * SAN CARLOS $637 * BELMONT $630 SOUTH SAN FRANCISCO $553 * (With Proposed 4% Increase) FOSTER CITY $553 * SOUTH SAN FRANCISCO $532 * (Current Charge) SAN MATEO $530 DALY CITY $442 EL GRANADA SANITARY $402 * AVG. $909 *Flat charge per year not tied to individual water consumption. Other listed rates are annual estimates based on homeowners “average” monthly domestic water consumption charges that can vary from year to year, household to household. (1 unit equals 748 gallons.) -4- DR A F T NOTICE OF City Clerk PROPOSED SEWER RATE INCREASE City of South San Francisco and of 400 Grand Avenue PUBLIC HEARING P.O. Box 711 for the South San Francisco, CA 94083 CITY OF SOUTH SAN FRANCISCO THE CITY OF SOUTH SAN FRANCISCO GIVES NOTICE that: 1.The City is proposing to increase sewer rates to all businesses and residences. The purpose of the proposed increase is to finance improvements to the City’s sewer collection, pumping and treatment facilities. There are critical components of the treatment plant that need replacement to properly operate the facility, as those components are aging. Additionally, the City is improving the reliability of the treatment plant during wet weather storm events, and therefore needs to increase capacity to comply with National Pollutant Discharge Elimination System permit. Finally, the City is planning ahead to reduce its energy consumption through the installation of energy efficient equipment and other monitoring technologies to efficiently operate the treatment plant, thereby positioning itself to comply with anticipated regulations implementing State greenhouse gas emission reduction standards. 2.A description of how the rates are calculated and the proposed schedule of rate increases are shown on the back of this notice. If the rate increases are approved, it is proposed that they will commence to be collected with the property taxes beginning with Fiscal Year 2014-15 and will continue to be collected until otherwise modified by the City. The sewer rates will not exceed the maximum amounts shown without another written notice to the property owners. Your Assessor’s Parcel Number (APN) is shown on the first line of the address on the envelope this notice came in. 3.Before taking final action on the proposed rate increase, the City Council will hold a PUBLIC HEARING on Wednesday, May 28, 2014, at 7:00 p.m. at the City Council Chambers, Municipal Services Building, 33 Arroyo Dr., So. San Francisco. The public hearing will be for hearing public testimony and receiving written protests on the proposed sewer rate increase. The Council may continue the hearing from time to time without further written notice. 4.Any property owner who receives sewer service from the City may file a written protest against the proposed rate increase with the City Clerk. The protest must identify the property address, the APN, the property owner, and also must be signed by the owner of the property. The written protests may be hand delivered or mailed to the City Clerk at the City’s address shown above, or faxed to the City Clerk at (650) 829-6641. To be counted, the City Clerk must receive a written protest by mail on May 28, 2014, or if delivered in person, not later than the closing of the public hearing specified above. A majority protest exists if, upon the end of the public hearing, there are valid written protests submitted by owners of a majority of the properties subject to the proposed rate increase. A majority protest will result in the rate increase not being imposed. Note that no more than one protest per parcel may be submitted. 5.To get additional information about the proposed rate increase, contact: Water Quality Control Plant South San Francisco, CA 94080 Telephone: (650) 877-8555 E-mail: [email protected] Additional written material relating to sewer rates, the projects, and protest procedures are available at the above City Clerk address during regular business hours. -5- DR A F T City of South San Francisco Proposed Sewer Rate Increase How rates are calculated: Residential Rates. Rates for residential properties are calculated by multiplying the number of dwelling units on each property by the annual rate. The dwelling unit rate for Single Residential assumes an "average" annual effluent flow of 8,400 cubic feet. The Multi-Unit Residential and Trailer Unit rate assumes an "average" annual effluent flow of 7,500 cubic feet. Commercial and Institutional Rates. Restaurant, Institutional and Commercial Rates are calculated by: A) Measuring the annual water use at each property and multiplying this usage by the inflow rate; or by B) Measuring the annual sewer flow from each property and multiplying by the effluent rate. Industrial Rates. Industrial Rates are calculated based on the annual amount of flow, chemical oxygen demand and s olids from each property. Separate sewer rates are calculated for each component and then added for the total sewer fee for each property. Annual measurement and testing are performed at each property to confirm the flow and loading. Septage Rates. Septage rates are calculated by multiplying the gallons of flow discharged from the septic pumper by the septage rate. Proposed Sewer Rate Increases over the next 3 years User Group Basis of Calculation Existing Rate FY2013-14 $ $/Unit/Year Proposed Maximum Rate FY2014-15 $/Unit/Year Proposed Maximum Rate FY2015-16 $/Unit/Year Proposed Maximum Rate FY2016-17 $/Unit/Year Single Unit Residential Dwelling Unit 532 553 575 588 Multi-Unit Residential Dwelling Unit 532 516 516 527 Trailer Unit Residential Dwelling Unit 477 496 516 527 Light Strength Commercial Minimum Charge 532 553 575 588 Hundred Cubic Feet Inflow 7.0478 7.4002 7.4002 7.5482 Or Effluent 7.8336 8.2253 8.2253 8.3898 Moderate Strength Commercial Minimum Charge 532 553 575 588 Hundred Cubic Feet Inflow 11.0325 11.5841 11.5841 11.8158 Or Effluent 12.2591 12.8721 12.8721 13.1295 Restaurants Minimum Charge 532 553 575 588 Hundred Cubic Feet Inflow 16.1205 16.9265 16.9265 17.2651 Or Effluent 17.9112 18.8068 18.8068 19.1829 Industrial Minimum Charge 532 553 575 588 Hundred Cubic Feet Inflow 4.2231 4.4343 4.4343 4.5229 Or Effluent 4.6929 4.9275 4.9275 5.0261 Chemical Oxygen Demand Pounds 0.4379 0.4598 0.4598 0.4690 Total Suspended Solids Pounds 1.4178 1.4887 1.4887 1.5185 Institutions Minimum Charge 532 553 575 588 Hundred Cubic Feet Inflow 5.6881 5.9725 5.9725 6.0920 Or Effluent 6.3187 6.6346 6.6346 6.7673 Septage Haulers Gallons 0.3007 0.3157 0.3157 0.3220 -6- DR A F T City of South San Francisco Proposed Sanitary Sewer Rate Increase Questions & Answers Introduction Dear Property Owner, Attached is a notice of proposed sanitary sewer rate increases proposed to be implemented over a three-year period. This handout provides answers to some frequently asked questions about the rate increase, the City’s sewer program and the City’s rate collection methods. Capital Improvements Completed Since Last Rate Increase: Since the last rate increase in 2009, the City of South San Francisco implemented projects to use technology to improve maintenance and monitoring of the sewer collection system, reduce energy costs, improve sewer system reliability in catastrophic events, and initiated design in several projects that will improve water quality of treated waste water during heavy wet weather storms. Capital Improvements Needed over the Next Three Years: The City of South San Francisco forecasts approximately $32 million worth of capital improvement projects over the next three years. The projects are required as part of the City’s required permit for meeting bay discharge standards , which continue to become more rigorous as we all do our parts to conserve the Bay. The projects are also a necessary part of the maintenance of the Water Quality Control Plant (treatment plant), as some parts of the treatment plant have exceeded their useful life and are in need of replacement. The projects include Wet-Weather Improvements ($16 million), rebuilding three anaerobic digesters ($7.5 million), sewer collection system improvements ($1.5 million), and completion of the backup generator replacement ($1.2 million). The City plans on paying for the CIP projects through a combination of pay as you go ($17 million) and low interest loans ($15 million) from the California State Water Resources Control Board. Cost Savings Implemented Over Last Five Years: The City has implemented several programs and projects that have reduced operating costs at the WQCP: •No cost of living increases since 2010 •Structured two tier benefit reduction plan in place •Treatment chemical cost decreased by seeking bulk leveraged purchasing through the Bay Area Chemical Consortium •Successful participation in the PG&E Peak Day Pricing and EnerNOC energy demand response programs helped to reduce energy cost •Covered parking solar array installation expected to save 200 kw per day in electrical cost The City’s rates are currently in line with other San Mateo County cities, as determined by a recent survey, and they will continue to be lower than most - even with the proposed rate increase for next year. After the third and final year of the proposed plan, the rate will still be below average among other city rates. However, given the likelihood that the other cities will be raising their rates over the next three years, South San Francisco’s rates will most likely remain competitively below average throughout the three-year rate period. If after reading this material you would like more information, we encourage you to call or e-mail the Water Quality Control Plant at (650) 877-8555 or [email protected]. -7- DR A F T Questions about the Project 1.Why is this increase required? The City is proactively undertaking the rebuilding of aging infrastructure and continuing with improvements required as part of its NPDES permit that will make necessary environmental improvements mandated by State and Federal regulations. The aging infrastructure that will be renovated at the treatment plant includes the Headworks facility, three digesters, main conveyance channels, piping and grit chambers so that the City can more reliably operate these critical facilities. Additionally, these improvements will enable the treatment plant to increase its capacity to treat wastewater during heavy wet-weather storm events. The total cost of this work is estimated at $32 million. The City of South San Francisco anticipates a reduction in the energy consumption associated with its sewer operation through the installation of solar and replacement of other energy efficient equipment that is used to operate the treatment plant. 2.What types of improvements will City make with the new rates? The Headworks facility, three digesters, main conveyance channels and grit chambers at the wastewater treatment plant were originally constructed in the 1950’s. The rebuilding of aging infrastructure has been deferred during the past five year rate period in order for the City to complete the work required to meet the conditions of a Cease and Desist order issued to the City by the San Francisco Bay Regional Water Quality Control Board. This work brought the City in compliance with clean water regulations intended to protect the San Francisco Bay. This rebuilding of aging infrastructure work can not be deferred any longer. The City will make improvements to increase the capacity of the treatment plant to treat waste water during large wet-weather storm events. The City will also install solar power installations at the plant to and replace ageing equipment with more energy efficient equipment in order to reduce our energy consumption and help the City achieve goals for greenhouse gas emissions outlined in State law AB32. 3.If some treatment plant components have exceeded their useful life, does that mean the City has not been keeping the Plant up? Not at all. Over the last decade, the City through its ratepayers has invested in over $100 million in capital improvements to protect the Bay and Colma Creek from effluent discharges. Those priorities were required to obtain our permit, and now that we have made progress, it is time to revisit some of the needed deferred projects. Questions about the Rate Setting Process 3.How much is the sewer fee increasing? The City is proposing to increase rates for Single Unit Residential and Trailer Unit Rate and decrease the Multi- Unit Residential rate to come in line with the Trailer Unit rate. The proposed increase is up to 4% next fiscal year with a 3% decrease for Multi-Unit Residential and increase commercial rates by 5%, with the exception of the minimum commercial charge, which will be the same as the Signal Unit Residential. In year two, rates are proposed to increase up to 4%, then up to a 2% increase the following year, this represents the maximum rate increase that the City Council can approve. Conversely, the City Council could approve lower rate increases over the three year period if lower amounts will meet the City’s revenue needs. For the average household, sewer rates could increase from $532 per year this year to $588 per year by the year 2017. That maximum rate is less than $1.62 per day per household to process all of its wastewater. 4.How do our fees compare with other cities in the area? South San Francisco’s current $532 residential rate is in the lower third of all agencies that provide sewer service in San Mateo County, as of an April 2014 survey. If the rate increase for Fiscal Year 2014-15 goes into effect, South San Francisco’s proposed $553 rate will be the thirteenth lowest rate of 17 service providers in San Mateo County. The residential rate in El Granada Sanitary District is the lowest rate at $402, followed by Daly City at $442 and San Mateo are $530 per year respectively. If South San Francisco adopts the highest rate of $588 in Fiscal Year 2016-17, the third and final year of this rate proposal, that rate would be considerably lower than the current $909 average household rate from the April 2014 survey. However, since other local agencies also have plans to increase sewer rates, South San Francisco’s rates should remain below the average throughout the three-year rate period. 5.How are the rates calculated? Residential rates are calculated based on an estimate of “average” wastewater flow from a home into the sanitary sewer system. Currently, the City bases its residential rates on an average flow of 8,400 cubic feet per year (or about 170 gallons per day). Commercial and industrial rates are calculated on the basis of water used (as measured by the water meter) and strength of flow (as measured by laboratory testing). -8- DR A F T 6.Is this a tax? No. This is a charge for service, specifically for households’ and businesses’ use of the sewer system, which includes treatment of the sewage in a manner deemed environmentally responsible by the State and Federal governments. 7.Is this a new charge for service? No. The City has charged both residential and business users for sewer service for many years and collected it on the property tax bills. It is listed on your property tax bill as the SSF SEWER CHARGE line item. 8.Is this a one-time charge? No. This is a yearly charge that will be collected on your property tax bill. 9.How long will these charges last? The City’s sewer rates will be in effect for as long as the City of South San Francisco maintains the sewer collection and treatment plant that serves your property. The currently proposed rates will be in effect over the next three years. 10.Will there be additional increases during this three year rate period? The City is proposing to increase rates up to 4% for residential and 5% for commercial users next fiscal year, up to 4% the following year, up to 2% the following year. The City cannot increase the sewer rate above the maximum amount shown on your notice without providing you with additional notices and holding a public hearing. 11.Is this a lien on my property? The City’s Municipal Code describes this charge as a lien. The charges are collected by the County along with your property taxes to save the administrative costs of a separate billing system the City would otherwise have to operate. 12.How does the City decide to approve the rate increase? The City will take testimony and count written protests against the proposed rate increases at the public hearing on May 28, 2014. (See below for specific location and time). At the close of the public hearing, the City will tabulate the protests. The City will count one protest from each parcel of property. If multiple owners protest for the same property, only one protest will be counted. The City Council may approve the proposed rate increase if less than 50% of the properties affected by the proposed increase protest. 13.How can I protest this rate increase? Please carefully review your written legal Notice; it outlines all requirements. To be counted, your protest must conform to the following: •Be presented in writing •Be received by the City Clerk’s Office no later than 4:00 p.m. on May 28, 2014, or if delivered in person at the public hearing, before the closing of the public hearing on May 28, 2014 •Identify the Assessor’s Parcel Number for the property (this number is on your Notice) •Identify the Owner of the property (this information is also on your Notice) •Be signed by the owner (or the owner’s designated representative) Mail your protest to the City Clerk at P.O. Box 711, South San Francisco, CA 94083. You may also hand deliver or overnight express it to the City Clerk at 400 Grand Avenue, South San Francisco, CA 94080. May 28, 2014, 4:00 p.m. is the deadline for the City Clerk to receive written protests unless delivered in person to the public hearing, prior to the close of the public hearing. The public hearing is scheduled for May 28, 2014 at 7:00 p.m. in the City Council Chambers at the Municipal Services Building, 33 Arroyo Drive, South San Francisco. If your protest is not written, does not contain the required information or is received after the close of the public hearing, it will not be counted. 14.As a renter, may I protest this rate increase? Consistent with State law, the City will only count written protests from property owners, but any member of the public is welcome to attend the public hearing on May 28 and express an opinion on the proposed rate increases. All those wishing to speak should fill out and turn in a speaker card to the City Clerk before the public hearing is closed. 15.The property ownership information on my notice is wrong. What can be done about that? The City uses information from San Mateo County’s property tax roll to identify property owners. If the property owner information is incorrect and you wish to submit a protest, send a copy of a legal document (such as a grant deed) with your protest, so that we may verify that you currently own the property. However, you will still need to work with the County Assessor’s office to correct their records. The Assessor’s website is located at www.co.sanmateo.ca.us. -9- DR A F T General Information Questions 16.Where can I get more information about this rate increase? Written information is available at the City Clerk’s office at 400 Grand Avenue, South San Francisco. The Water Quality Plant can also provide you with additional information and can be reached at (650) 877-8555 or by email at [email protected]. Also, a public information meeting will be held at 7:00 p.m. on Thursday, May 8, 2014 in the Multi-Use Room of the Magnolia Senior Center at 601 Grand Avenue, South San Francisco. City staff and project engineers will be available to answer your questions about the proposed sewer rate increases. As an informational meeting only, the City Council will not be presiding over the May 8 meeting, and the City will not take any action on the rate increase at the meeting. 17.Where and when is the public hearing? A public hearing on this issue will be on the City Council’s agenda at their regular meeting at 7:00 p.m. on Wednesday, May 28, 2014, in the City Council Chambers at the Municipal Services Building, 33 Arroyo Drive, South San Francisco. The City Council is expected to take action on the rate increase at the conclusion of the public hearing. About Proposition 218 In 1996, the voters of California approved the Right to Vote on Taxes Act (Proposition 218). Among other things, this Act changes the way government agencies can modify or increase existing fees or charges that fund certain City services. The Sanitary Sewer Rates in the City of South San Francisco are covered by Proposition 218. Proposition 218 requires that property owners (defined as the owner of a parcel of land) be given an opportunity to voice their concerns regarding sewer fee increases before the City Council can approve the increases. The process includes noticing all affected property owners of the proposed fee increases and the date of a City Council public hearing considering it. If written protests are received from a majority of property owners, the fee increases may not be imposed. The information in this document was compiled and distributed at public expense by the City of South San Francisco. This information is presented in the public interest and is not intended to influence or attempt to influence the actions of the property owners. -10- DR A F T City of South San Francisco Proposition 218 Noticing and Tabulation Proposed Sanitary Sewer Rate Increase Protest Procedures The following procedures set forth the process for the completion, filing and tabulation of written protests for the proposed Sanitary Sewer Rate Increase for the City of South San Francisco (City). These procedures are intended to assist the City in complying with the process requirements set forth in Proposition 218 (The 218 Process). The City Clerk’s office (City Clerk) will officiate the 218 Process for the City and will be assisted by Bartle Wells & Associates. These procedures will be kept on file at the public information counter in the office of the City Clerk. 1.Completion of Written Protest Which properties are subject to the 218 Process Properties that receive sanitary sewer service from the City of South San Francisco and are billed for that service on their property tax bills are subject to the 218 Process. In addition, properties that are directly billed by the City but subject to a rate based on equivalent dwelling units (DUs or TUs) are subject to the 218 Process. These properties will be designated as the City’s “Retail Service Area” within these Procedures. Protests received from within the Retail Service Area will be tabulated in accordance with Proposition 218 and the procedures outlined herein. Protests from outside of the Retail Service Area will be managed in accordance with the applicable portions of any outside service contracts, the City’s Municipal Code and the Health and Safety Code. Which customers are not subject to the 218 Process Public agencies that have entered into Joint Powers Agreements, Joint Service Agreements, or other written agreements with South San Francisco to receive sewage treatment and/or sewage disposal services are not subject to the 218 Process. These customers may include the City of San Bruno, the Town of Colma, the City of Daly City, various septage haulers and customers directly billed based on either water use or metered effluent flow. Protests received from these customers will be managed in accordance with the applicable portions of any outside service contracts, the City’s Municipal Code and the Health and Safety Code. -11- DR A F T Who may file Written Protest The owner of the assessor’s parcel subject to the rate increase may file a written protest. As used in these Procedures, the term “owner” includes the owner’s authorized representative. If the owner of the parcel is a partnership, joint tenancy or tenancy in common, a Protest may be filed by any of the general partners, joint tenants or tenants in common. Contents of the Written Protest Only Protests submitted in accordance with the City’s “NOTICE OF PROPOSED RATE INCREASE and of PUBLIC HEARING for the CITY OF SOUTH SAN FRANCISCO” dated April 11, 2014 will be tabulated. In order to be tabulated, the protest must include the following information: •An identification of the property •The name of the property owner •The reason for the protest •The owner’s or authorized owner’s representative’s signature Valid Protest Only written protests with all required information stated above will be tabulated. Protests by telephone, fax, or e-mail will not be accepted. 2.Return of the Protest Who may file a Protest Protests may be filed by the owner of the parcel or by the owner’s authorized agent. Where to file the Protest Protests may be mailed to the City Clerk, City of South San Francisco, P.O. Box 711, South San Francisco, CA 94083. If sent by alternative carriers, such as by FedEx or similar service, then address it to City Clerk, City of South San Francisco, 400 Grand Avenue, South San Francisco, CA 94080. Protest may be delivered in person to the City Clerk’s office at 400 Grand Avenue, South San Francisco, CA 94080 until 4:00 PM on May 28, 2014, or in person at the Public Hearing on the proposed rate increase. The Public Hearing will be held by the City Council at the City Council Chambers, Municipal Services Building, 33 Arroyo Drive, South San Francisco, CA on Wednesday, May 28, 2014 at 7:00 PM. -12- DR A F T When to return the Protest Mailed Protests. The City Clerk must receive all mailed Protests by 4:00 p.m. Wednesday, May 28, 2014. To ensure that the mailed Protests are received prior to the conclusions of the public input portion of the Public Hearing, all mailed Protests must be received prior to that time. The City makes no representation as to whether the public portion of the Public Hearing will be concluded on the date scheduled for commencement of the Public Hearing or continued to a later date. Hand-delivered Protests. Up until 5:00 p.m. on Wednesday, May 28, 2014 protests may be delivered in person to the City Clerk at City Hall, 400 Grand Avenue, South San Francisco, California 94080. After 5:00 p.m. on May 28, 2014, Protests must be delivered in person at the Public Hearing, prior to its close. The Public Hearing is scheduled for 7:00 p.m. on May 28, 2014 at the City Council Chambers, Municipal Services Building, 33 Arroyo Drive, So. San Francisco, CA. The Public Hearing may be continued from time to time. Withdrawal of Protest After filing a Protest to the City, the person who signed the Protest may withdraw the Protest by submitting a written request in person to the City Clerk at 400 Grand Avenue, South San Francisco, California 94080 or at the Public Hearing on the proposed Sanitary Sewer Rate Increase. The City Clerk will retain all withdrawn Protests and will clearly indicate on the face of such Protests that they have been withdrawn. 3.Tabulation of Protests (check font) Which Protests will be tabulated Only Protests from within the Retail Service Area and filed in accordance with these procedures will be tabulated. Protests received after the close of the Public Hearing will not be counted. Protests that are not complete will not be counted. Protests withdrawn in accordance with these procedures will not be counted. If more than one Protest is filed by the same owner for the same parcel, only one protest will be counted. If more than one owner returns a Protest for the same parcel, only one protest will be counted. When and where the Protests will be tabulated Protests may be tabulated periodically, throughout the noticing period, in the office of the City Clerk, 400 Grand Avenue, South San Francisco, California 94080. -13- DR A F T The final tabulation of protests will be performed at the Public Hearing following the close of the public input portion of the public hearing. The Public Hearing may be continued from time to time for the purpose of tabulating protests. How the Protests will be tabulated Each assessor’s parcel is allowed a single protest. Confidentiality Protests will be kept confidential until the public hearing. After the close of the hearing, members of the public may inspect the protests. Prior to the public hearing the protests may be inspected by the City Clerk, her staff, or those City staff or City consultants under her supervision. Who will tabulate the Protests Protests may be tabulated by the City Clerk or by any of the staff consultants of the City. Results of the tabulation The results of the tabulation will be announced following the completion of the tabulation and entered in the minutes of the City Council meeting. 4.Resolution of Disputes Property Ownership In the event of a dispute regarding whether the signer of a Protest is the owner of the parcel to which the Protest applies, the City will make such determination from the last equalized assessment roll and any evidence of ownership submitted to the City prior to the conclusion of the public hearing. The City is under no duty to obtain or consider any other evidence as to ownership of property and the City’s determination will be final and conclusive. 5.General Information The names and addresses of the owners of real property within the City’s retail service area were obtained from the equalized secured property tax assessment roll. Notices will be mailed to all affected property owners, as they are shown on the equalized secured property tax assessment roll, 45 days prior to the Public Hearing. For the duration of the proceedings, the City will retain any Notice packet that is returned to them as “undeliverable” by the U.S. Postal Service. All Protests are public records. Actual Protest Letters will be kept secured with the City Clerk until after the Public Hearing. After the Public Hearing, the Protest Letters will be available for review by the public. -14- FY 2 0 1 4 - 1 5 t o 2 0 1 6 - 1 7 P r o p o s e d S e w e r R a t e s Ci t y C o u n c i l M e e t i n g Ma r c h 2 6 , 2 0 1 4 Pu b l i c W o r k s / F i n a n c e D e p a r t m e n t s t a f f p r e s e n t a t i o n -1 5 - Att a c h m e n t 4 3 Y e a r S e w e r R a t e P l a n FY 2 0 1 3 - 1 4 FY 2 0 1 4 - 1 5 FY 2 0 1 5 - 1 6 FY 2016-17 Si n g l e U n i t Re s i d e n t i a l $5 3 2 . 0 0 p e r E D U $ 5 5 3 . 0 0 p e r E D U (4 % I n c r e a s e ) $5 7 5 . 0 0 p e r E D U (4 % I n c r e a s e ) $588.00 per EDU (N o t t o E x c e e d 2 % ) Mu l t i - U n i t Re s i d e n t i a l $5 3 2 . 0 0 p e r E D U $ 5 1 6 . 0 0 p e r E D U (3 % D e c r e a s e ) No I n c r e a s e $ 5 2 7 . 0 0 p e r E D U (N o t t o E x c e e d 2 % ) Tr a i l e r R a t e $4 7 7 . 0 0 p e r E D U $4 9 6 . 0 0 p e r E D U (4 % I n c r e a s e ) $5 1 6 . 0 0 p e r E D U (4 % I n c r e a s e ) $527.00 per EDU (N o t t o E x c e e d 2 % ) Co m m e r c i a l * Va r i e s b y I n d u s t r y 5 % I n c r e a s e No I n c r e a s e ( N o t t o E x c e e d 2 % ) *M i n i m u m c o m m e r c i a l r a t e w i l l b e t i e d t o S i n g l e U n i t R e s i d e n t i a l -1 6 - $3 2 M i l l i o n W o r t h o f C I P P r o j e c t s • We t W e a t h e r I m p r o v e m e n t P r o g r a m – $ 1 6 M i l l i o n • Re b u i l d i n g 3 a n a e r o b i c d i g e s t e r s – $ 7 . 5 m i l l i o n • Ad d i t i o n a l a e r a t i o n t u r b o b l o w e r , p u m p s t a t i o n 4 fo r c e m a i n d e s i g n , c o m p l e t i o n o f s t a n d b y g e n e r a t o r – $ 4 m i l l i o n • Ad d i t i o n a l r e h a b a n d r e p a i r s – $ 5 m i l l i o n -1 7 - Mi n i m i z e B l e n d i n g P r o j e c t $ 1 6 m i l l i o n Secondary Clarifier No. An a e r o b i c Se l e c t o r s An a e r o b i c Se l e c t o r s Ra i s e w a l l s o f m i x e d li q u o r c h a n n e l St o r m W a t e r P u m p St a t i o n N o . 4 St o r m W a t e r P u m p St a t i o n N o . 5 Re h a b i l i t a t e A e r a t i o n B a s i n s No . 1 - 4 N 100 ft -1 8 - Re b u i l d i n g T h r e e D i g e s t e r s $ 7 . 5 m i l l i o n Di g e s t e r s No . 1 - 3 a n d co n t r o l bu i l d i n g s N 100 ft -1 9 - Pr o p o s i t i o n 2 1 8 N o t i c i n g Da t e Ac t i o n Ma r c h 2 6 , 2 0 1 4 C i t y C o u n c i l c o n c e p t u a l a p p r o v a l o f t h r e e y e a r s e w e r r a t e p l a n Ap r i l 1 1 , 2 0 1 4 M a i l p u b l i c n o t i c e o f t h r e e y e a r s e w e r r a t e p l a n t o a l l p a r c e l ow n e r s Ma y 8 , 2 0 1 4 P u b l i c i n f o r m a t i o n m e e t i n g a b o u t s e w e r r a t e s a n d C I P Ma y 2 8 , 2 0 1 4 P u b l i c H e a r i n g , t a b u l a t i o n o f p r o t e s t n o t i c e s , i f l e s s t h a n h a l f of p a r c e l o w n e r s p r o t e s t , C i t y C o u n c i l m a y v o t e o n p r o p o s e d pl a n Ju l y 1 , 2 0 1 4 N e w r a t e s , i f a p p r o v e d b y C o u n c i l , t a k e e f f e c t -2 0 - Re c o m m e n d a t i o n • By M o t i o n , c o n c e p t u a l l y a p p r o v e t h r e e ye a r s e w e r r a t e p l a n • Au t h o r i z e s t a f f t o p r o c e e d w i t h P r o p o s i t i o n 21 8 p u b l i c h e a r i n g n o t i c i n g -2 1 - Qu e s t i o n s / D i s c u s s i o n -2 2 - Se w e r C I P F u n d i n g FY 1 4 / 1 5 FY 1 5 / 1 6 FY 1 6 / 1 7 Total CI P P r o j e c t C o s t s $7 , 4 5 0 , 0 0 0 $ 1 3 , 2 0 0 , 0 0 0 $ 1 0 , 9 6 0 , 0 0 0 $ 3 1 , 6 1 0 , 0 0 0 S t a t e L o a n F u n d e d 5 , 2 5 0 , 0 0 0 5 , 0 0 0 , 0 0 0 5 , 0 0 0 , 0 0 0 1 5 , 2 5 0 , 0 0 0 S a n B r u n o a n d N B S U * C a s h F u n d e d 5 8 0 , 0 0 0 2 , 0 7 0 , 0 0 0 1 , 4 7 0 , 0 0 0 4 , 1 2 0 , 0 0 0 S o u t h S a n F r a n c i s c o C a s h F u n d e d 1 , 6 2 0 , 0 0 0 6 , 1 3 0 , 0 0 0 4 , 4 9 0 , 0 0 0 1 2 , 2 4 0 , 0 0 0 * - N o r t h B a y s i d e S y s t e m U n i t -2 3 - Se w e r F u n d C a s h P r o j e c t i o n s * FY 1 4 / 1 5 FY 1 5 / 1 6 FY 16/17 Op e r a t i n g R e v e n u e $ 2 5 , 7 9 5 , 3 5 2 $ 2 6 , 3 1 4 , 4 8 6 $ 2 6 , 8 8 9 , 4 7 4 To t a l E n d i n g C a s h 11 , 6 7 7 , 4 6 1 9 , 4 7 3 , 8 6 5 8 , 7 1 6 , 4 7 3 Ca p i t a l a n d O p e r a t i o n s R e s e r v e 7, 7 5 2 , 4 0 7 8 , 0 1 6 , 1 5 8 8 , 2 0 1 , 1 3 4 Un r e s t r i c t e d C a s h 3, 9 2 5 , 0 5 4 1 , 4 5 7 , 7 0 8 5 1 5 , 3 3 9 *A s s u m i n g p r o p o s e d r a t e s a r e a p p r o v e d b y C i t y C o u n c i l -2 4 - RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AMENDMENT TWO TO THE PROFESSIONAL SERVICES AGREEMENT WITH AMERICAN TRAFFIC SOLUTIONS, INC. (ATS) FOR THE AUTOMATED RED LIGHT ENFORCEMENT PROGRAM WHEREAS, City and ATS entered into a Professional Services Agreement for the City's use of the ~xsis~~ System to enforce traffic violations (the "Agreement'"; and WHEREAS, section 17 of the Agreement requires any amendments, modifications, or alterations of the Agreement to be in writing and duly executed by the parties; and WHEREAS, the City and ATS first amended the Agreement on November 10,2009; and WHEREAS, the City and ATS desire to amend, modify or alter certain terms and conditions of the Agreement; and WHEREAS, City staff recommends approving Amendment Two to the Agreement ("Amendment") in order to modify the pricing schedule and modify the term of the Agreement with ATS for red light photo enforcement program services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby approves Amendment Two to the Professional Services Agreement with American Traffic Solutions, Inc. for the Automated Red Light Enforcement Program, attached hereto as Exhibit A, and incorporated herein. BE IT FURTHER RESOLVED that the City Manager of the City of South San Francisco is hereby authorized and directed to execute the Amendment on behalf of the City of South San Francisco, subject to approval as to form by the City Attorney, and to take any other action consistent with the intent of this Resolution. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 12th day of March, 2014 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk AMENDMENT TWO TO PROFESSIONAL SERVICES AGREEMENT This Amendment Two ("Amendment") is dated effective this day of , 2014 and is entered into between American Traffic Solutions, Inc. ("ATS"), a corporation duly registered under the laws of the State of Kansas with its principal place of business at 1330 West Southern Avenue, Tempe, Arizona 85282 and the City of South San Francisco ("City"), a municipal corporation of the State of California. RECITALS WHEREAS, on October 6, 2006, the City and ATS entered into a Professional Services Agreement for the City's use of the AxsisTM System40 enforce traffic violations (the "Agreement1'), amended on November 10,2009; and WHEREAS, section 17 of the Agreement requires any amendments, modifications, or alterations of the Agreement to be in writing and duly executed by the parties; and WHEREAS, the City and ATS mutually desire to amend, modify or alter certain terms and conditions of the Agreement. 'TERMS AND CONDITIONS NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Amendment, the City and ATS do hereby agree as set forth below: 1. The above recitals are true and correct and are incorporated herein. 2. Section 4(b) is hereby amended in its entirety to read as follows: b. The term of this Agreement shall be one month. Unless either party terminates this Agreement pursuant to Section 4(c), the Agreement shall continue on a month-to-month basis. The term of the Agreement may be modified by mutual agreement of the parties, as set forth in Section 17. 3. Section 4(c) is hereby amended to add a new subsection as follows: iii) By either party without cause, with at least one (1) month prior written notice to the other party. 4. The first sentence of Section 11 is hereby amended as follows: ATS shall at all times comply with all federal, state and local laws, ordinances, wtsl . . regulations, admrn~strative decisions and administrative directives. and shall comply with the maintenance procedures and manufacturer recommendations for operation of the Axsis equipment which affect this Agreement. 5. Beginning on August 14, 2014, Schedule 1 is hereby amended to modify pricing for the existing sites as follows: Site SSOl SS02 SS03 SS04 SS05 SS06 Monthly Fee $4,500 $4,500 $4,500 $4,500 $4,000 $4,000 6. Except as expressly amended or modified by the terms of this Amendment, all terms of the Agreement shall remain in full force and effect. In the event of a conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail and control. 7. This Amendment may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument. Each party represents and warrants that the representative signing this Amendment on its behalf has all right and authority to bind and commit that party to the terms and conditions of this Amendment. IN WITNESS WHEREOF, the parties hereto have executed this Amendment. AMERICAN TRAFFIC SOLUTIONS, INC. By: Name: Adam E. Tuton Title: Executive Vice President, COO Date: CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Name: Title: City Manager - Date: ACCEPTED AS TO FORM: ATTEST: By: By: Name: Name: Title: City Attorney Title: City Clerk Date: Date: PROFESSIONAL SERVICES AGREEMENT "AGREEMENT THIS AGREEMENT made this 6 day of (?c&, 2006 between American TraKc Solutions, Inc. (herein "ATS"), a corporation duly registered under the laws of the State of Kansas with its principal place of business at 14861 North Scottsdale Road. Suite 109. Arizona, County of Maricopa, State of Arizona, and the City of South San Francisco, herein "Customer", a munici~d corporation of the State of California with principal offices at 33 Aroyo Drive Ste C, South San Francisco. CA 94080. WITNESSETH: WHEREAS, ATS has the exdusive knowledge, po$session and ownership of certain equipment, licenses, and processes, referred to collectively as the "Axsis System" (herein "Axsis ), and WHEREAS. Customer deslres to use the Axslsm System to monitor red light violations, traffic speed or other traffic movements and to issue citations for traffic violations. NOW THEREFORE, the parties agree: 1. DEFINITIONS: As used in this Agreement, the following words and terms shall, unless the context otherwise requires, have the respective meanings provided below: "Citation" means a citatlon Issued by a competent state or rnuniclpal law enforcement aaent or agency or by a court of competent jurisdiction releting to a violation documented or evidenced by Axsis . "Person" or "personsn means any individual, partnership, joint venture, corporat~on. trust, unincorporated association, governmental authority or pollUcal subdlvision thereof or any other form of entity. 'Twin Camera System" means a photo-traffic monitoring device consisting of one (1) front and one (I) rear camera and a traffn: monitor~ng device capable of accurate deteding a traffic infraction on up to four lanes controlled by up to one (1) signal phase and whkh r-rds such data w~th one or more images of such vehlcle. "Twin Camera System" shall. i$ere the sense requires, also include any enclosure or cabinet and related appurtenances in which the Axsis is stationed. "Approach" is defined as one direction of travel of one or more' lane on a road or a traffic intersection up to 4 lanes conlrolled by up to two (2) signal phases. "Violation" means failure to obey an applicable traffic law or regulations, including, without limitation. failure to obey a traffic signal, operallng a motor vehicle in excess of the posted speed limit, and operating a motor vehide without displaying a valid license plate. "Operational Time" means the actual time that a Camera System is monitoring trafflc. 'WMS Analysis" is a statistical assessment of violations rates at s~$~ected problem intersections and approaches to determine the need for a red light system. 2. ATS AGREES TO PROVIDE: The scope of work Identified in Exhibit "A. Section 1" 3. CUSTOMER AGREES TO PROVIDE: The scope of work identified in Exhibit uA, Section 2." 4. TERM AND TERMINATION: a. This contract shall be effective on the signature date above. b. The term of this Agreement Shall be for five (5) years beginning on the date of first issued and payable notice of a violabn (the "Start Date") end may be automatically be extended for one additional fve (5) year period. However. Customer may temllnate this Agreement at the expiration of any term by providing Confidentlal Information --- Page 1 Photo Enforcement Services Agreement written notice of Its Intent not to extend the Agreement 120 days prior to the expiration of the current term. c. The Contractor's services may be terminated: ... ..._I i) By mutual written consent of the parties; ii) For cause, by either party where the other party fails in any material way to perform its obligations under thls Agreement. Termination under thls subsection is subject to the condition that the terminating party notifies the other party of its intent to terminate, stating with reasonable specificity the grounds therefor, and the other party falls to cure the default within forty-flve (45) days after receiving notice. d. Upor1 termination of this Agreement, either for breach or because il has reached the end of its term, the parties recognize that the Customer will have to process traffic Law violations in the "pipeline," and that ATS accordingly must assist the Customer in this regard. Accordingly, the parties shall take the following actions, and shall have the following obligations, which survive termination during the wind-down period: The Customer shall cease using the Axsism System, shall return or allow ATS to recover all provided equipment within a reawnable time not to exceed 60 days, and shall not generate further images to be processed. Unless directed by the Customer not to do so, ATS shall continue to process all images taken by the Customer before termination and provide all services associated with processing in accordance wlth this Agreement, and shall be entitled to all Fees specified in the Agreement as if the Agreement were still in effect. f. First year ("pilot year) terms: With 60 day written notice, on the first anniversary of the Start Date, either party shall have the option to terminate this Agreement. The option to terminate shall expire except as otherwise provided herein. 5. ASSIGN# ENT Neither party may assign all or any portion of this Agreement without the pilor written consent of the other, which consent shall not be unreasonably withheld or delayed; provided, however, the Customer hereby acknowledges end agrees thet the execution (as outlined in Schedule 6), delivery and performance of Ams - .- rights pursuant to this Agreement shall require a significant investment by ATS. and that, in order to finan- such investment, ATS may be required to enter into certain agreements or arrangements ("Financing Transactions") with equipment lessors, banks, flnandal instltutlons or other similar persons or entities (each, a "Financial Institution" and collectively; "Financial Institutlons"). The Customer hereby agrees mat ATS shall have the right to assign, pledge, hypothecate or 0tht3Mllse transfer (Transfer") its rights, or any of them, under this Agreement to any Financial Institution in connection with any Financing Transaction between ATS and any such Financial Institution subject to the Customer's prior Witten approval, which approval shall not be unreasonably withheld or delayed. The Customer further acknowledges and agrees that in the event that ATS provides written notice to the Customer that it intends to Transfer all or any of ATS's rlghts pursuant to this Agreement, and In the event that the Customer fails to provide such approval or fails to object to such Transfer within forty-flve (45) business days after its receipt of such notice from ATS, ATS shall be free to effect said Transfer. 6. FEES AND PAYMENT: Customer shall pay for all equipment. services and maintenance based on the fee schedule indicated in Exhibit A, Schedule 1, ("Fees"). On or before the 10th day of each month, the Customer shall pay all fees due ATS based upon invoices from the proceeding month. Late paWentS are subject to interest cal~tJlated at 1.5% per month on open balances. Revenue Neutrality Clause During the'term of the contract. Customer shall not be required to pay ATS more than Customer (or ATS on Customer's behalf) has collected/received in fines payments through the use of the Axsis System cumulatively lhroughout the term of the contract. For (he purposes of this clause, the term 'fines" applies a Photo Enforcement Services Agreement to that portion of fines actually retained by the Customer according to the distribution method applicable under Callfomia law. This clause will be applied as follows: If collections for the program during any month are less than the full amount of ATS invoices. ATS shall be entitled the full amount of fines actually collected. ATS will maintain an accounting of any net balances owed to ATS and shall apply future cdlections first to !he accrued balance and then to the current months invoice. At any time that ATS fees and any accrued balances are fully repaid, additional collections will be retained by the Customer. Any posltive revenue balances generated from this program (whether reserved in cash or not by the Customer) will be used to offset future ATS invoices in {he event of monthly deficits. Example: if during Year 1 of the program, revenues minus ATS fees yield a net surplus of $100,000, this arnwnt would be available to pay ATS invoices for any future periods in the event that lesser or no revenue were to be generated in future periods. However, at the point where the (actual or paper) surplus is exhausted. then no additional payments would be due until add~tlonal collected fines were available to cover the cumulative deficit. For the purposes of this clause, the accrued surplus is a calculated figure determined by subtracting ATS fees from program fines collected. The obligation to pay is not subject b the existence of cash reserves kom the program. for example, if the Customer chooses to use or has used these surplus funds for any other uses. 7. INTERSECTION AND VIOLATION RATE ANALYSIS Prior to implementing the Axsls System, ATS will conduct an analysis of each hpproach being considea for a Camera System. If ATS deems necessaty, ATS will use the Axslsm VIM9 (Violation Incident Monitoring System) or other tool or means to complete the analysis over a 4 to 24 hour' period. The Customer will be provided a report on violations recorded at each monitored approach, including the time of day and lanes on which the vlolatlons occurred. For any Approach recommended by the Gustoher, ATS may install a Camera System. However. ATS may elect not to Install a Camera System where traffic violation data does not support installatlon of the Axsis System. 8. COMMUNICATION OF INFORMATION: ATS agrees that all informatlon obtalned by ATS through operation of the Axsis System shall be made available to the Customer at any time during ATS's normal working hours, exduding trade secrets and other confidential or proprietary infomatlon not reasonably necessary for the prosecution of citations or the fulfillment of Cuslomer's obligation under this Agreement. 9. CONFlbENTlAL INFORMATION: No information given by ATS to Customer will be of a confidentlal nature, unless specifically designated in writing as proprietary and confidential by ATS. Provided, however, nothing in this paragraph shall be construed contrary to the terms and provisions of any "Open Records Act" or similar laws, insofar as they may be applicable. ATS shall not use any information acquired by Ulis prograrp with respect to any violations or the Customer's law enforcarnent activities for any purpose other than the pr4grarn. 10. OWNERSHIP OF SYSTEM It is understood by the Customer that the System being installed by ATS b, and shall remain, the sole property of ATS, unless separately procured from ATS. The System is belng provided to Customer only under the terms and for the term of this Agreement. 11. INDEMNIFICATION AND INSURANCE: ATS shall at all times comply wlth all federal, state and local laws, ordinanhes and regulabons and shall comply with the maintenance procedures and manufacturer recommendatioqs for operation of the Axslsw equipment whrch affect this Agreement. ATS shall defend Customer, using counsel acceptable to Customer (in the exercise of reasonable judgment by Customer), and shall indemnify and save harmless Customer, against any claims against Customer to the extent, and only to the extent, that such daims arise from any violation by ATS of any of the above-described laws, ordinances, or regulations, or from -- ATSs breach of this Agreement. negligence, or tort, or from ATS's violation of the rnalntenance Confidential Information Page 3 Photo Enforcement Services Agreement procedures and manufacturer recommendations for operation of the equipment. For purposes of this paragraph only, 'Customer" shall include Customer's officers, officials, employees. agents, and volunteers when acting on behalf of Customer; and -ATSP shall include ATS's officers, directors, agents, attorneys, and employees when acting on behalf of ATS (but shall exclude any officers, officials, employees, agents, or volunteers of Customer). ATS's obligation to indemnify, when it exists, shall extend to any and all liability, loss. damage, claims. expenses. and costs, including, without limitation, reasonable attorneys' fees and reasonable costs and fees of litigation (provided however that ATS shall have the right to retain defense counsel and otherwise control such defense and that Customer shall have no right to indemnity for any attorneys fees, costs or fees of litigation, or any other expense or liability whatsoever, unless, before such expense or liability is incurred, Customer gives ATS detailed written notice of the claim, tendering the defense thereof to ATS, and ATS fails to provide Customer, within a reasonable time thereafter, with a defense that complies with the terms of this Agreement). Notwithstanding any of the above, ATS shall have no indemnity obligation with respect to any claim or liability to the extent such claim or liability arises out of the breach of this Agreement, negligence, or fault or tort (of any kind or nature) of Customer or its officers, officials, employees, agents, or volunteers (Including, without limitation, any failure by Customer to ~0mply with the terms of this paragraph). ATS shall also have no indemnity obligation whatsoever with respect to any claim or liability arising by reason of any contention that the program under which ATS is providing services under this Agreement is wholly or partly u.nlawful, even if such contention should prove succasstul in any forum or tribunal, whether in whole or in part. ATS shall maintain the following minimum scope and limits of insurance: (a) Commercial General Liability lnsurance including coverage for bodily injury, property damage, premises and operations, ~roducts/completd operations, personal and advertising injury, and contractual liability wlth a combined single llmlt of $1,000,000 per occurrence. Such insurance shall indude the Customer, its officers, directors, employees, and elected officials as additional insured's for liability arlslng from ATS's operation. (b) Workers Compensation as required by applicable state law, and Employers' Liability insuranoe with limits of not less than $500,000 each accident; ATS shall at all times maintain worker's compensation insurance coverage in the amounts required by law, but shall not be required to provide such coverage for any actual or statutory employee of Customer. (c) Comprehensive Business Automobile Liability Insurance for all owned, non-owned and hired automobiles and other vehicles used by ATS with a minimum $1,000.000 per occurrence combined slngle limit bodily injury and property damage. The Customer and its officers and employees, shall be named as additional insured on the comprehensive general liability policies provided by ATS under this Agreement. ATS shall require any subcontractors doing work under this Agreement to provide and maintain the same Insurance, whlch Insurance shall also name the Customer and Its officers, employees, and authorized volunteers as additional insureds. Certificates showing ATS is carrying the above described insurance, and evidencing the additional insured stetus specified above. shall be furnlSneU to the Customer within thirty calendar days afler the date on which this Agreement is made. Such certificates shall show that the Customer shall be notified of all cancellations of such insurance policies. ATS shall forthwith obtain substitute insurance in the event of a cancellation. Inasmuch as the Customer is a body polhlc and corporate, the laws from which Customer derives its powers, insofar as the same law regulates the objects for which, or manner in whlch, or the concerns under which, the Customer may enter into this Agreement, shall be controlling and shall be incorporated by reference Into this Agreement. The Customer shall be responsible for vehicle insurance coverage on any vehides driven by Customer employees. Coverage will include liability and collision damage. 12. STATE LAW TO APPLY: This Agreement, and all Sections contaised herein, lncludlng SectJon 13, 'Dispute Resolution." shall be construed under and in accordance with the laws of the State of California. 13. DISPUTE RESOLUTION ~ll disputes arising out of or in connection with the Agreement shall be attempted to be settled through good- faith negotiation between senior management of both parties, followed if necessary within thirty (30) days by Confidential Inlormatlon ---- Page 4 Photo Enforcement Services Agreement professionally-assisted mediation. Any mediator so designated must be acceptable to each party. The mediation will be conducted as specified by the mediator and agreed upon by the parties. The parties agree to discuss their differences in good faith and to attempt, with the assistancia of the medlator. to reach an amicable resolution of the dispute. The mediation will be treated as a settlement discussion and therefore will be confidential. The mediator may not testify for ewer party In any leiter procaeding relating to the dispute. No reco~d'mg w transcript shall be made of the mediation proceedingb. Each party will bear Its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the parties. (a) FaillnQ resolution through negotiatlon or med~ation, any remaining dispute shell be submitted to binding arbitration in accordance with the Arbitration Rules for Professional Accounting and Related Services Disputes of the American Arbitration Association ("A44 Rulies") before a single arbitrator. The place of arbitration will be mutually agreed upon within 14 days of a decision to seek arbitration. Limited discovery will be permitted in connection with the arbitration upon egreernent of the parties or upon a showing of substantial need by the party seeking discovery. The arbitratofs decision shall fallow the plain and natural meaning of the relevant documents, and shall be final and binding. The arbitrator will have no power to awd (i) damages inconsistent with the Agreement or (ii) punitke damages or any other damages not measured by the prevailing party's actual damages. and the parties expressly waive their right to obtain such damages in arbitration or in any other forum. NI aspects of the arbitration will be confldentlal. Neither the parties nor $he arbitrator may disclose the existence, content or results of the arbltratiin, except as necessary to comply with legal or regulatory requirements. Each party wlll promptly pay 1ts share of all arbitration fees and costs, provided &at such fees and casts shall be recoverable by the prevailing party as determined by the arbitrator. if a party falls to pay such share promptly upon demand. the arbitrator shall, upon written request by he other party, enter a final and binding decision against the nonpaying party for the full amount of such share, together with an award of attorneys fees and costs incurred by the other party in obtaining such decision, which decision may be entered in any court of competent jurisdlctlon. Except for the failure of a party to pay arbitration fees and costs that requires resortto the arbitrator to order such payment, the partles will bear their own attomeys' fees in any hatter or dispute under this Agreement. 14. ADDITIONAL SERVICES: Additional systems and services may be added to this agreement by mutual consent of the parties in writing as an addendum to this Agreement. All other terms and conditions shall remain the same. 15. LEGAL CONSTRUCTION: In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or ~nenfor~eable in any respect, such invalidity, illegallt)', or uhenforceablity shall not am any other pmvision thereof and this Agreement shall be construed as of such ir(valid. illegal, or unenforceable provision had not been contained herein. 16. PRIOR AGREEMENT SUSPENDED: This Agreement constitutes the sole and only agreement of the part& and Supersedes any prior understanding, written or oral, between the parties respecting the written subjedt matter. f7. AMENDMENT: No amendments, rnodifitions, or stterations of the terms hereof shall be binding unless he same be in writing, dated subsequent to the date of this Agtwment and duly executed by the parties. 18. NO AGENCY: ATS is an independent contractor providing servlces to the Customer and the employees, agents and servants of ATS shall in no event be considered to be the employees. agents, or servants of the Customer. This contract is not intended to create an agency relationship between ATS and the Customer. 19. TAXES: In the event that any excise, sales or other bxes are due relating to this service contract. the Customer will be responsible for he payment of such taxes. 20. NOTICES: -... Any notices or demand which under the terms of this Agreement or under any statute must or may be given Confidential Information Page 5 Photo Enforcement Services Agreement or made by ATS or Customer shall be in writing and shall be glven or made by personal service, telegram, first class mail, FedEx, or by certifed or registered mail to the parties at the following address: The City of South San Francisco 33 Arroyo Drive Ste C South San Francisco, CA 94000 Attn: Chief Mark R%elli American Traffic S~lutiOn~. Inc. 14861 N. ScoHsdale Rd, %It8 109 Scottsdale. AZ 85254 Attn: Chlef Operating Offir IN WITNESS WHEREOF, the parties have executed this Agreement as of the date accepted by the Customer. AMERICAN TRAFFl UTIONS, INC. Adam E. Tuton. Executive Vice President ATTEST: -. . --- Confidential Information .. .. Page 6 Photo Enforcement Services Agreement Exhibit A ATS SCOPE OF WORK I AMERICAN TRAFFiC SOLUTIONS (ATS) SCOPE OF WORK 1.2 ATS IMPLEMENTATION 1.2.13 ATS agrees to provide a turnkey solution for Camera Systtems lo the Customer wherein all reasonably necessary elements required to Implement and operate the solution are the responsibility of ATS, except for those Items identlfled In Section 2 tltled "Customer Scope of Work". ATS and the Customer understand and agree that new or previously unforeseen requirements may, from time to time, be Identred and that the parties shall negotiate in good faith lo assign lo the proper party the responsibility and cost for such items. In general. if work is to be performed by the Customer, unless otherwise specified, the Customer shall not charge ATS for the cost. All other in-scope work, external to the Customer, Is the responsibility of ATS. 1.2.14 ATS agrees to make every effort to adhere to the Project Time Line outlined in Schedule 4. 1.2.15 ATS will assist the Customer with video evaluation of capdidate sites using the Axsis VlMS system. 1.2 16 ATS will install Camera Systems at a number of ~ntbrsection or grade crossing approaches to be agreed upon between ATS and the Cusbmer after completion of site analyses to be entered into Schedule 5. In addition to the inltial locations, the parties may agree from tlme to time, by additional Work Order(s}, to add to the quantities and locations where Camera Systems are installed and maintahed. 1.2.17 ATS will operate each Camera Sysbrn on a 24-hour basis, barring downtime for maintenance and normal servicing activities. I 1.2.16 ATS' in-house marketing department will assist the Customer with public information and outreach campaign strategies. In addition, depending upon the agreed-upon strategy, ATS may pay for agreed upon extra scope expenditures for public relations consultants, advertising, or media relations provided that such extra scope expenditures will be reimbursed to ATS from collected revenues. 1.2.19 ATS agrees to provide a secure web site (www.violationlnfo.cam) accessible to citation recipients (defendants) by means of a Notice # and a PIN, which will allow violation image and video viewing. 1.2.20 The Customer and ATS will complete the Project Business Process Work flow design within 30 calendar days of contract signature; the parties to this agreement will use the drafts Included on Schedules 2 and 3 as the basis for the final workflow design. 1.2.21 ATS normally shall provide technician site visits to each Camera System once per month to perform preventive maintenance checks consisting of camera enclosure lens cleaning; camera, strobe and controller enclosure cleaning; inspection of exposed wires; and general system inspection and maintenance. 1.2.22 ATS shall repair a non-fundlonal Camera System within 72 business hours of determination of a malfunction. 9.2.23 ATS shall repair the Axsis VPS system within 1 business day from the time of the outage. Outages of Customer Internet connections or infrastructure are excluded from this service level. Confidential lnformatlon Page 7 Photo Enforcement Services Agreement AT3 OPERATIONS 1.3.13 ATS shell provide the Customer with an optional one-time warning period up to 30 days in length at the outset of the program. 1.3.14 As the party responsible for Initial contact with the red light violator, ATS shall provide the Customer with an automated web-based cltation processing system (Axsism VPS) including image processing. I" notice color printing, 2& notice b+w printing and mailing of at Gitalion or Notice of Vldatlon per chargeable event. Each citation shall be delivered by First Class mail to the registered owner within the statutory period. Subsequent mailings to drivers Identifled In affidavits of non-liability or by rental car companies are also included according to each prlcing option. 1.3.15 Subsequent notices may be delivered by First Class or other mail means for additional compensation to ATS a8 agreed by the parties. I .3.16 ATS sha(l apply an electronic signature to the citation when authorized to do so by an approving law enforcement offlcer. 1.3.17 ATS shall obtain in-slate vehide registration information nacessary to issue citations assuming that it is named as the Customer's agent and the State provides the registration data at no cost. 1.3.18 ATS shall seek records from out-of-state vehicle registration databases and apply records found to Axsis to issue citations for the Customer according to each pricing option. 1.3.19 If Customer is unable to or does not desire to integrate ATS data to its court system, ATS shall provlde an on-line court processing module, which will enable the court review cases, related images, correspondence and other related informatlon required to adjudicate the disputed citation. The system will also enable the Court staff to accept and account for payments. Any costs to Integrate ATS system to a court computer system shall be borne by the Customer. ATS may agree to cover these up front costs and recover the costs from collected revenue. 1.3.20 The AxsisTM VPS system, whlch provides the Customer with ability to run and print a reports, shall include the following: Program Statistics Report - Location Performance Summary Report * Location Performance Detail Report Violation Reject Report Document Aging Report 1.3.21 If required by the court or prosecutor. ATS shall provide the Customer with, or train a local expert witness able to testify in Court on matters relating to the accuracy. lechnical operations, and effectiveness of the Axsism System until judicial notice is taken. 1.3.22 In those instances where damage to a CaTIera System or sensors is caused by negligence on the part of the Customer or Its authorized agent(s), ATS wlil provide an estimate of the cost of repair. Upon authorization to proceed with the repairs or replacement, ATS shall replace or repair any damaged equipment and invoice for the pre-approved repair cost. ATS shall bsar the cost to replace or repair equipment damaged In all other circumstances. 1.3.23 ATS shall provide a help line to help the Customer resolve any problems encountered regarding its Red Light Camera System andlor citatlon processing. The help llne shall function durlng normal business hours. Confidential Information -- Pagex Photo Enforcement Services Agreement .- 2 CUSTOMER SCOPE OF WORK 2.2 GENERAL IMPLEMENTATION REQUIREMENTS 2.2.13 Within 7 business days of contract execution, the Customer shall provide ATS with the name and contact information for a project manager with authority to coordinate Customer responsibilities under the Agreement. 2.2.14 Within 7 business days of contract execulion, the Customer shall provide ATS with the name and contact information for a Municipal Court manager responsible for oversight of all Court-related program requirements 2.2.15 The Customer shall make every effort to adhere to the hoject Time Line outlined in Schedule 4. 2.2.16 The Customer shall, on a form provided by ATS, provide verification to the State Department of Motor Vehicles, National Law enforcement Telecommun~cations System. or appropriate authority indicating that ATS is acting as an Agent of the Customer for the purposes of accessing vehicle ownership data pursuant to the list of permissible uses delineated in the Drivers Privacy Protection Act 18 U.S.C. 5 2721, Sectlon (b) (I) and as may otherwise be provided or required by any provislon of applicable state law. 2.2.17 The Customer and ATS shall complete the ProJect Busine$s Process Work Flow design within 30 calendar days of contract signature, using the drafts included on Schedules 2 and 3 as the basis for the final workflow design. 2.3 STREETS AND TRAFFIC DEPARTMENT OPERATIONS 2.3.13 If the Customer chooses to move a Camera System to a new approach after Initial installation, it shall pay the costs to relocate the System. 2.3.14 Customer will design, fabricate, install and maintain red light camera warning signs. If Customer cannot provide such signage, ATS will do so and charge the costs to the client. 2.3.15 The Customer shall provide access to traffic signal phase connections according to approved design. 2.3.16 Customer shall allow ATS to access power from existing power sources at no cost and shall allow w facilitate access to traffic slgnal phase connections to a pull box, pole base, or controller cabinet nearest to each Camera System within the Customer's jurisdiction. The costs of any additional conduit or power infrastructure needed to support installation of the Camera shall funded by ATS and ATS and shall recover such added costs out of collected revenue in addltlon to its normal fees. 2.3.17 The Customer shall not require ATS to provide installation draw~ngs stamped by a licensed civil engineer. However, ATS work product and drawings shall be overseen and approved by and ATS PE and such deliverable shall conform to applicable engineering norms and reflect the details of installation work to be completed. 2.3.18 The Customer shall approve or reject ATS submitted plans within 7 business days of receipt. 2.3.19 The Customer shall not charge ATS or its subcontractdr for build~ng, constructions, street use andlor pole attachment permits. 2.4 POLICE DEPARTMENT OPERATIONS 2.4.13 The Police Department shall process each potential violation in accordance with State Laws andlw City Ordinances within 3 business days of its appearance in the Police Confidential Information Page 9 Photo Enforcement Services Agreement Review Queue, using Axslsm to determine which violations will be issued as Citations or Notlces of V~olation. -- .. 2.4.14 Police Department workstation computer monitors for citation review and approval should provide a resolution of 1280 x 1024. 2.4.15 For optimal data throughput, Police Department workstations should be connected to a high-speed internet connection with bandwidth of T-1 or greater. 2.4.16 Police Department shall provide signatures of all authorized police users who will review events and approve citations on forms provided by ATS. 2.5 COURT OPERATIONS 2.5.1 3 Customer shall use ATS payment processing services. 2.5.14 Court shall provide a judge or hearing officer and court facilities to schedule and hear disputed citations. 2.5.15 Court shall provide he specific text requlred lo be placed on the Citation notice to be issued by ATS within 30 calendar days of contract signature. 2.5.16 The Court shall approve the Citation form within 15 days receipt from ATS. 2.5.17 Municipal Court shall handle inbound and outbound phone calls and correspondence from defendants who have questions about disputes, end other issues relating to citation adjudication. Court may refer citizens with questions regarding ATS or Axsis technology and processes to websites andlor toll-free telephone numbers provided by ATS for that purpose. 2.5.18 Wlthln 10 days after expiration of a second notice, Munlclpal court shall pursue delinquent collections of unpaid notlces with an existing contractor or ATS. \- 2.5.19 Any potential one time, direct costs to ATS (including ATS' costs) to develop an interface between the Court system will be initially paid by ATS will be reimbursed to ATS from collected revenues from the program once available. 2.6 INFORMATION TECHNOLOGY DEPARTMENT OPERATIONS 2.6.13 In the event that remote access to the ATS Axsis VPS System Is blocked by Customer network security infrastructure, the Customer's Department of Information Technology shall coordinale with ATS to facilitate appropriate communications while maintaining required security measures. 2.6.14 If Customer-owned telecornmunlcations lines or WiFi networks are present at or near the site, and If feasible to share such existing bandwidth, ATS shall be allowed to use such infrastructure for data trensmisslon. ATS shall work with the City's IT department to ensure City security protocols are maintained. Confidential Information Page 10 Photo Enforcement Services Agreement Schedule 1 Service Fee Schedule The Customer agrees to pay ATS the Fee(s) as itemized below: Monthly Servia Fee per lntelsectlon Approach Element - Axsis RLC-300 Red Light Camera System monitoring front and rear images up to 4 lanes, Axsis LIVE digital video system for monitoring I didlon of travel, data entry, In State registered owner aquisitlon, final quality control review, access to web-based Axsls VPS for Pollca Revlew, I* notice printing in cdw, postage end mailing, electronic notice file transmissb to wurt system, evidence packages for scheduled hearings. 2 lanes: $4,995 4 lanes: $5,395 Other Optional Services Axsis E-Payment Portal for Web-based payments -online access convenience fee charged to user, r- registered owners and rnailhg violation notices: $2.50 per mailed citation. On use onty Canfidential Information Page 11 Photo Enforcement Services Agreement Schedule 2 and 3 Workflow Diagrams [to be added after consultation with Police and Court] Confidential Information Pa e 12 1 Schedule 4 Project TLmeline Confidential Information Page 13 Photo Enforcement Services Agreement Schedule 5 Initial Camera Locations The sites where the Camera Systems will be initially installed were selected after a careful analysis by the Customer Police, the Traffic Engineering Department and ATS englneers. Based on that analysis, the Customer has determined that each of these intersections have a high incidence of intersection collisions, there is an extreme difficulty in Identifying violators, and that other traffic light changes/modifications would be ineffective in resolving these problems. Accordingly, the Customer determined that photo enforcement was the best solution b the dangers posed by these intersections. [List Initial Camera Locations Here When Final Intersection Analysis is Completed] Confidential Information Page 14 Photo Enforcement Services Agreement Schedule 6 Acknowledgement and Consent - This Acknowledgement and Consent. dated as of Odd b~ 6 . 2006, is entered into by and between the City of Soulh San Francisco (the 'Customer) and Americsn Traffic Solutions, Inc., a Kansas corporation ("ATS") with reference to the Professional Service$ Agreement dated as of x (+, ,2006, by and between the Customer arid ATS (the -Agreetnent"). 1. ATS has entered into a Credit Agreement, dated as of September 22, 2005 (the "Harris-ATS Credit Agreement"), with Harris N.A. (the "8ank7, pursuant to which the Bank has provided certain working capital credit facilities to ATS. Such credit facilities will provide AT6 the working capital that it needs to perform ils obligations lo the Customer under the Agreement. 2. Pursuant to the Harris-ATS Credit Agreement, ATS has granted Harris a security interest in all of ATS's personal property as collateral for the payment and performance of ATS's obligations to the Bank under the Harris-ATS Credit Agreement. Such security interest applie4 to and covers all of ATS's contract rights, including, without Ilmltatlon, all of ATS's rights and interests under the Agreement. 3. ATS will not, by virtue of the Harris-ATS Credit Agreement, be relieved of any liability or obligation under the Agreement, and the Bank has not assumed any liability or obligation of ATS under the Agreement. 4. The Customer hereby acknowledges notice of, and consents to, ATS's grant of such security interest in favor of the Bank in all of ATSs rights and interests under the Agreement pursuant to the Harris-ATS Credit Agreement. 5. All payments due and to become due to ATS pursuant to the Agreement shall continue to be paid directly to ATS. unless and until the Bank notifies the Customer in writing to do otherwise, If the Bank so notifies the Customer. the CUS~O~~~ will immediately cease making such payments and dbstributions to ATS and will as soon as possrble, but in any event within 5 days after receiving such e - notice, remit all such payments direct to the Bank at 11 1 West Monroe Street, Chicago, IL 60603. ATS agrees that any such payment to the Bank shall be a good receipt and acquittance as against it - that is to say, the Customer should make the payment directly to the Bank and in so doing, the Customer discharges any liability to ATS for that paymenl, and the Customer shall have no Obligation to ATS to investigate whether the Bank has any right to make such a direction. 6. The Customer further acknowledges and agrees that this Acknowledgement and Consent shall be binding upon the Customer and shall inure to the benefit of the successors and assigns of the Bank and to any replacement lender which refinances ATS's obligations to the Bank under the Harris-ATS Credit Agreement. In Witness Whereof, the Customer and ATS have caused this AcknoMedgement and Consent lo be executed by their respective duly authorized and elected officers as of the date first above written. By: Name: Adam E. Tuton Tile: Title: Executive Via President Approved as to form Confidenlial Infor##[email protected] rnev Photo Enforcement $ervlces ~greement Page 15 Red Light Camera Program Red Light Camera Program At the City Council meeting on March 12, 2014, the City Council asked the South San Francisco Police Department to provide additional information regarding the Red Light Program in South San Francisco. The information below provides the additional requested information in response to the questions posed by the City Council. Primary Collision Factors at Monitored Intersection 2005-2013 Hickey Boulevard @ El Camino Real Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bicycle Violation ---1 ----- Unsafe Speed 7 2 1 5 2 1 7 5 4 Red Light 1 2 1 1 ----2 Entry onto Highway 1 -2 -----1 Pedestrian outside Crosswalk 1 -------- Failure to Yield -1 -1 ----- Unsafe Lane Change -1 ------- Pedestrian Fail to Yield --1 ------ Driving under the Influence ------1 -- Following too Closely ------1 1 1 Unsafe Turning Movement ---4 2 2 2 5 4 Unsafe Starting ------1 -- Jaywalking ------1 -- Unknown -1 -1 2 1 1 2 - Total 10 7 5 13 6 4 14 13 12 Primary Collision Factors at Monitored Intersection 2005-2013 Westborough Boulevard Chestnut Avenue @ El Camino Real Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Unsafe Speed 6 --9 5 8 9 4 12 Red Light 2 -2 2 1 --1 2 Entry onto Highway ------1 -1 Failure to Yield 1 ---1 ---1 Unsafe Lane Change -1 1 -2 -1 -- Driving under the Influence --2 -1 1 -1 - Following too Closely --1 -1 --1 - Unsafe Turning Movement 2 --1 1 3 4 5 5 Unsafe Starting -2 --1 --1 1 Unsafe Passing -1 ------- Failure to Yield to Pedestrian --1 ------ Failure to activate Siren ---1 ----- Straight from a Turn Lane -----1 --- Driving on a Sidewalk --------1 Unknown 1 3 3 1 5 5 1 Total 11 5 7 16 16 14 20 18 24 Primary Collision Factors at Non- Monitored Intersection 2005-2013 Westborough Boulevard and Junipero Serra Boulevard Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Passing to the Left -1 ------- Unsafe Speed 7 2 3 2 2 10 8 3 1 Red Light 3 4 -6 1 1 5 3 2 Unsafe Lane Change -1 ------- Driving under the Influence -2 -----1 - Following too Closely ----1 --2 - Unsafe Turning Movement 1 1 1 2 3 4 4 3 5 Unsafe Starting 1 -1 ------ Improper Turn 1 -------- Straight from a Turn Lane -----1 1 -- Jaywalking ------1 -- Unknown ---2 1 3 -4 3 Total 13 11 5 12 8 19 19 16 11 Cost and Revenue Breakdown DESCRIPTION F/Y 2010/2011 F/Y 2011/2012 F/Y 2012/2013 F/Y 2013/2014 July-December 10% Reduction in Citations 30% Reduction in Citations Income $414,439 $565,753 $691,413 $305,760 $519,000 $399,456 Salaries (SSFPD)$86,400 $86,400 $91,000 $45,500 $80,000 $62,090 ATS $380,000 $380,000 $380,000 $190,000 $312,000 $312,000 Lexus/Nexus $4,800 $4,800 $4,800 $2,400 $4,800 $4,800 Net Revenue/Loss -$56,761 $94,553 $215,613 $67,860*$122,200 $19,566 *Note that Fiscal Year 2013/14 only contains data for 6 months. If the cost and revenue figures were to continue at the present rate for the entire FY 2013/14, the anticipated net revenue would be approximately $135,720. The last two columns show what a reduction in the number of citations would mean. These are only estimates made by reducing all figures by 10 and 30 percent. The only constant would be the fee paid to ATS. Number of Citations by time of Day 326 271 213 153 116 213 488 1111 1815 2188 2601 2816 2909 2962 2811 2766 2452 2087 1808 1332 928 716 563 463 0 500 1000 1500 2000 2500 3000 3500 12:00 AM 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM Citations by Day of Week 4472 4793 4804 4721 4525 5002 5261 4000 4200 4400 4600 4800 5000 5200 5400 Sunday Monday Tuesday Wednesday Thursday Friday Saturday El Camino Real and Westborough Boulevard Citations issued by Camera Citations issued by Camera 49 70 101 7993 76 200 140 0 50 100 150 200 250 2010/11 2011/12 2012/13 2013/14 Citations Issued N/B ECR @ Chestnut SS05 Lane 1 Left Turn Lane 2 Left Turn Citations issued by Camera 3 2 8 2 10 29 66 47 0 10 20 30 40 50 60 70 2010/11 2011/12 2012/13 2013/14 Citations Issued S/B ECR @ Westborough SS06 Lane 1 Left Turn Lane 2 Left Turn Hickey Boulevard and El Camino Real Citations issued by Camera 1 12 12 501112 1 2170 3837 3617 2299 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2010/11 2011/12 2012/13 2013/14 CItations Issued E/B Hickey @ ECR SSO4 Left Turn Straight Through Right Turn Other Cities Reason for Discontinuing their Program San Rafael Accident rates at the intersections being monitored were not significantly impacted since the placement of the cameras Not issuing enough citations to justify the continuation of the program. Belmont Less than significant reduction in the accident rate at the monitored intersection. Many residents expressed displeasure with this program (similar to the concerns that the City of South San Francisco Council has heard) Cost Comparison to other Cities ATS 1-2 lanes of traffic is $4,995.00 3 or more lanes of traffic is $5,395.00 In new agreement these fees will be lowered starting August of 2014 to, $4,000.00 for 1-2 lanes of traffic and $4,500.00 for 3 or more lanes. RedFlex, City of Millbrae 5 cameras, 2 intersections, and 3 approaches and their total bill is $26,975.00 with a cost of $5,395.00 per camera unit Officer to Camera Comparison Police Officer Approximately $150,000.oo per year Ability to issue 3-4 citations per hour at best Only able to monitor 1 maybe 2 approaches On duty 8-10 hours a day Unable to monitor intersection entire shift Personal interaction with violator Officers word against violator in court Camera Monitor Current agreement calls for $380,000.00 per year Monitors all selected approaches 24/7 No limit to number of violations captured No personal interaction with violator Video evidence of violation presented in court Recommendation It is recommended that City Council approve with the Second Amendment with ATS, which will continue the Red Light Program on a month-to-month basis from August 2014 until CalTrans has evaluated the Engineering study prepared on the two monitored intersections. Also, it is recommended that the City Council direct staff to select a qualified consultant to conduct the required CalTrans engineering study, and report back to the City Council with those results. Note that if this study determines that these intersections do not meet the CalTrans warrants, it is recommended that the City Council direct staff to terminate the agreement with ATS at that time.