HomeMy WebLinkAbout2018-02-14 e-packet@7:00Wednesday, February 14, 2018
7:00 PM
City of South San Francisco
P.O. Box 711
South San Francisco, CA
Municipal Services Building, Council Chambers
33 Arroyo Drive, South San Francisco, CA
City Council
Regular Meeting Agenda
February 14, 2018City Council Regular Meeting Agenda
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.
LIZA NORMANDY, Mayor
KARYL MATSUMOTO, Mayor Pro Tempore
RICHARD A. GARBARINO, Councilman
MARK ADDIEGO, Councilman
PRADEEP GUPTA, Councilman
FRANK RISSO, City Treasurer
KRISTA MARTINELLI, City Clerk
MIKE FUTRELL, City Manager
JASON ROSENBERG, 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.
Page 2 City of South San Francisco Printed on 4/16/2018
February 14, 2018City Council Regular Meeting Agenda
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
ANNOUNCEMENTS FROM STAFF
PRESENTATIONS
Presentation in recognition and celebration of Ethel Marie Ferrario on the occasion of
her 101st birthday. (Richard Garbarino, Councilmember)
1.
Presentation of proclamation in observance of Black History Month. (Karyl
Matsumoto, Mayor Pro Tempore)
2.
PUBLIC COMMENTS
COUNCIL COMMENTS/REQUESTS
ADMINISTRATIVE BUSINESS
Report regarding a resolution authorizing the City Manager to approve a consulting
services agreement with TRC Engineers, Inc. of San Ramon, California for
construction management and inspection services for the Grand Boulevard Initiative
Phase I from Arroyo Drive to Chestnut Avenue and Grand Boulevard Initiative Phase
II from McClellan Drive to Kaiser Way in an amount not to exceed $632,759 for a
total budget of $696,035. (Matt Ruble, Sr. Civil Engineer)
3.
Resolution approving a consulting services agreement with TRC Engineers, Inc. of
San Ramon, California for construction management and inspection services for the
Grand Boulevard Initiative Phase I from Arroyo Drive to Chestnut Avenue and Grand
Boulevard Initiative Phase II from McClellan Drive to Kaiser Way in an amount not to
exceed $632,759 for a total budget of $696,035.
3a.
Report regarding a resolution adopting findings and authorizing a contract for
emergency repair work to address the storm drain failure and related repairs on
Junipero Serra Boulevard near Westborough Boulevard; and amending the 2017-18
Public Works Department operating budget by $663,525 pursuant to Budget
Amendment No. 18.023. (Eunejune Kim, Director of Public Works)
4.
Page 3 City of South San Francisco Printed on 4/16/2018
February 14, 2018City Council Regular Meeting Agenda
Resolution adopting findings and authorizing a contract for emergency repair work to
address the storm drain failure and related repairs on Junipero Serra Boulevard near
Westborough Boulevard; and amending the 2017-18 Public Works Department
operating budget by $663,525 pursuant to Budget Amendment No. 18.023.
4a.
Report regarding a resolution approving a consulting services agreement with SWA
Group of San Francisco, California for the Grand Avenue Streetscape Project (Project
No. st1801) in an amount not to exceed $350,000, authorizing the City Manager to
execute the agreement, and authorizing a total budget of $367,500. (Patrick Caylao,
Associate Civil Engineer)
5.
Resolution approving a consulting services agreement with SWA Group of San
Francisco, California for the Grand Avenue Streetscape Project in an amount not to
exceed $350,000, authorizing the City Manager to execute the agreement, and
authorizing a budget of $367,500.
5a.
CONSENT CALENDAR
Motion to approve the Minutes from the meetings of January 11, 2018, January 22,
2018, January 24, 2018 and January 29, 2018.
6.
Motion confirming payment registers for February 14, 2018. (Richard Lee, Director of
Finance)
7.
Report regarding a resolution authorizing the acceptance of a $48,400 donation to the
Parks and Recreation Department from the South San Francisco Youth Baseball
Association and Mike Callero Memorial Fund to install an outfield fence at Callero
Ballfield located on the Baden School campus, and amending the Parks and
Recreation Department’s Fiscal Year 2017-18 operating budget pursuant to budget
amendment #18.021. (Sharon Ranals, Director, Parks and Recreation)
8.
Resolution authorizing the acceptance of a $48,400 donation to the Parks and
Recreation Department from the South San Francisco Youth Baseball Association and
Mike Callero Memorial Fund to install fencing at Callero Ballfield located at the Baden
School campus, and amending the Parks and Recreation Department’s Fiscal Year
2017-18 operating budget pursuant to Budget Amendment #18.021.
8a.
Report regarding a resolution accepting $6,000 from the State of California, California
Highway Patrol for the “Every 15 Minutes” Program and amending the Police
Department’s operating budget for Fiscal Year 2017-18 by approving budget
amendment 18.022. (Jeff Azzopardi, Police Chief)
9.
Resolution accepting $6,000 from the State of California, California Highway Patrol
for the “Every 15 Minutes” program and amending the Police Department’s operating
budget for Fiscal Year 2017-18- by approving budget amendment 18.022.
9a.
Page 4 City of South San Francisco Printed on 4/16/2018
February 14, 2018City Council Regular Meeting Agenda
Report regarding resolution acknowledging receipt of the Fiscal Year (FY) 2016-17
audited financial statements, including the Comprehensive Annual Financial Report.
(Richard Lee, Director of Finance)
10.
Resolution acknowledging receipt of the Fiscal Year 2016-17 audited financial
statements, including the Comprehensive Annual Financial Report.
10a.
Report regarding an ordinance amending Chapter 20.410 of the South San Francisco
Municipal Code to prohibit cannabis microbusinesses and to permit commercial
cannabis manufacturing, testing, distribution, and delivery uses. (Rozalynne
Thompson, Associate Planner)
11.
Ordinance amending Chapter 20.410 of the South San Francisco Municipal Code to
prohibit cannabis microbusinesses and to permit commercial cannabis manufacturing,
testing, distribution, and delivery uses.
11a.
ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS
ADJOURNMENT
Page 5 City of South San Francisco Printed on 4/16/2018
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-101 Agenda Date:2/14/2018
Version:1 Item #:1.
Presentation in recognition and celebration of Ethel Marie Ferrario on the occasion of her 101 st birthday. (
Richard Garbarino, Councilmember)
City of South San Francisco Printed on 2/8/2018Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-95 Agenda Date:2/14/2018
Version:1 Item #:2.
Presentation of proclamation in observance of Black History Month. (Karyl Matsumoto, Mayor Pro Tempore)
City of South San Francisco Printed on 2/8/2018Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-1205 Agenda Date:2/14/2018
Version:1 Item #:3.
Report regarding a resolution authorizing the City Manager to approve a consulting services agreement with
TRC Engineers,Inc.of San Ramon,California for construction management and inspection services for the
Grand Boulevard Initiative Phase I from Arroyo Drive to Chestnut Avenue and Grand Boulevard Initiative
Phase II from McClellan Drive to Kaiser Way in an amount not to exceed $632,759 for a total budget of
$696,035.(Matt Ruble, Sr. Civil Engineer)
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the City Manager to approve a
consulting services agreement with TRC Engineers,Inc.of San Ramon,California for construction
management and inspection services for the Grand Boulevard Initiative Phase I from Arroyo Drive to
Chestnut Avenue (project st1403)and Grand Boulevard Initiative Phase II from McClellan Drive to
Kaiser Way (project st1502) in an amount not to exceed $632,759 for a total budget of $696,035.
BACKGROUND/DISCUSSION
The Grand Boulevard Initiative (“Project”)is a collaboration of 19 cities,counties,local and regional agencies
united to improve the performance,safety,and aesthetics of El Camino Real.The South San Francisco portion
of the Project starts at McClellan Drive and ends at Chestnut Avenue,which is approximately one mile as
shown in Attachment 1.The Project improves an important gateway to the City of South San Francisco (“City”)
which allows for planned transit-oriented and mixed-use development along the frontage,as envisioned in the
City’s 2011 El Camino Real/Chestnut Avenue Area Plan.The project improvements include enhanced
pedestrian crossings with corner curb bulb-outs and median refuges,expanded bus stop/waiting areas,and a
new landscaped median.
The City applied for several grants to help fund the construction of the Project located within the City.In 2013,
the City received a grant in the amount of $1,000,000 from the One Bay Area Grant (OBAG)program to fund
the Arroyo Drive and Chestnut Avenue (“Phase I”)portion.In 2014,the City received a grant in the amount
$1,991,000 from State Transportation Improvement Program and Transportation Enhancement,authorized by
City/County Association of Governments (C/CAG),to fund the McClellan Drive to Kaiser Way (“Phase II”)
portion.In February 2017,C/CAG notified the City about the award of a $1,000,000 grant from the OBAG2
program to fund the Kaiser Way to Arroyo Drive (“Phase III”)portion.The California Transportation
Commission (CTC)has approved this latest grant at the May 2017 meeting to appropriate and allocate the
funds to the City.
Currently,the Project consists of three phases,but staff is combining the Project’s Phase I and Phase II to bid
and award as one larger project to allow for receipt of more competitive bids.
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File #:17-1205 Agenda Date:2/14/2018
Version:1 Item #:3.
Staff issued a Request for Proposals (RFP)through eBidboard for construction management services for the
Project in December 2017.Three proposals were received on the due date of January 18,2018.After reviewing
the submitted proposals,interviews were held for three proposing consultants on January 31,2018.The
interview panel consisted of City staff:a Senior Civil Engineer,a Public Works Inspector from the Public
Works Department, and an Associate Planner from the Planning Division.
After the interviews,the presentations of the three firms were evaluated and scored by the selection panel using
several criteria as listed in Attachment 2,which shows the results from the scoring of proposals and interviews.
As indicated,the selection panel members concluded that TRC Engineers,Inc.(“TRC”)was the best qualified
firm to provide the construction management and inspection services for this project.
Based on the interviews and the qualifications submitted,TRC demonstrated they have the staffing availability
and expertise to provide the construction management services,as summarized in TRC’s Profile and Project
Team Sheet as listed in Attachment 3.Example projects similar to the subject project are in Attachment 4.Staff
recommends that TRC undertake the Grand Boulevard Initiative Phase I and II based upon the firm’s
experience, resources, familiarity of South San Francisco, and positive references.
Selection of consulting services is not based on the lowest bidder,but on the firm’s expertise,experience,and
references.Once the most qualified firm is determined,staff negotiates a fee proposal and any changes deemed
necessary to obtain a reasonable cost for the scope of work.
As an industry standard,construction management and inspection services are approximately eight to ten
percent of the construction cost of the project.When analyzing TRC’s proposal and fee schedule,their cost of
construction management and inspection services is approximately 10.5 percent.
Shown below is the project budget for construction management:
TRC Engineers, Inc. Contract $632,759
Construction Management Contingency (10 percent)$ 63,276
Total Project Budget $696,035
The contingency will be utilized for any unforeseen conditions,such as additional testing,City initiated change
orders if the construction period is lengthened due to weather,or differing site conditions.Disadvantaged
Business Enterprise (DBE)is required since federal funds are being utilized on this project.The City has
established a DBE contract goal to 0.5 percent.
The City has prepared a consulting service agreement for the consultant for an initial term of February 14,
2018, to December 31, 2019.
FUNDING
This project is included in the City of South San Francisco’s Fiscal Year 2017-18 Capital Improvement
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File #:17-1205 Agenda Date:2/14/2018
Version:1 Item #:3.
This project is included in the City of South San Francisco’s Fiscal Year 2017-18 Capital Improvement
Program (projects st1403 and st1502)and there are sufficient funds to execute the consultant services
agreement.
CONCLUSION
Staff recommends approving an agreement with TRC Engineers,Inc.based on their qualifications,experience
and project understanding.Approval of the consulting services agreement will allow the firm to provide
preconstruction services,construction management,value engineering,constructability review,traffic
management coordination,public outreach,materials testing and post-construction services once the Project is
under construction.
Attachments:
1.Vicinity Map
2.Interview Evaluation Score Sheet Summary
3.TRC Profile and Project Team Sheet
4.Example Projects Similar to the Subject Project
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ATTACHMENT 1
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19
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
SPECIALIZED EXPERIENCE
FIRM INTRODUCTION
Firm Profile
In business for more than 48 years, TRC Engineers, Inc. (TRC), has
a considerable portfolio of exemplary work for clients throughout
California, specifically within the Northern California and the Bay Area
regions. Our assignments have ranged from locally significant public
works projects to large-scale projects such as the San Francisco-Oakland
Bay Bridge, the 2015 and 2016 Annual and Measures J&L Pavement
Rehabilitation Projects in Orinda, and the On-Call Architectural,
Engineering and other professional services for the Cities of South San
Francisco, San Mateo, Orinda and Walnut Creek.
TRC, founded in 1968, is a California Corporation and offers the City
more than 4,000 experts nationwide (with TRC staff resources) and
our staff within California alone that encompasses expert project
managers, inspectors, project coordinators, construction managers,
schedulers, claims specialists, quality assurance and quality control
managers, engineers and public outreach specialists. The firm has been
responsible for some of the largest freeway, highway, roadway and
bridge construction projects in the state. Our consulting resources are
both municipal and Caltrans-experienced, and are capable of offering
value from day one on any of your anticipated projects.
TRC focuses entirely on construction management and program
management support for public works projects for the state, counties,
municipalities and transportation authorities, working with them to
construct their capital improvement projects. We work extensively
with Caltrans with on- call construction management (CM) / inspection
assignments, including recent work in Districts 1,2,3,4, 10, 5 and 6
in Northern and Central California. We have a thorough knowledge
of all Caltrans and federal processes, procedures, design standards,
specifications, audits and program requirements.
We will support the City of South San Francisco (City) project needs
from our San Ramon office.
Experienced and Qualified Personnel
The TRC Team offers you personnel who have been working together
and have recently completed several projects similar to what is
expected to be encountered at the City. Our construction manager,
resident engineers and / or project inspectors assigned on the City’s
project will be the primary points-of-contact and will be responsible
for the onsite supervision and administration of construction on the
project. The assigned construction manager / resident engineer (CM
/ RE) will establish a communication protocol that must be consistent
prior to the start of construction and will monitor contractor quality
control activities and take appropriate action to ensure compliance.
The CM / RE will also supervise project progress and timely completion,
ensure all materials and equipment installed meet contract
requirements, manage project funds, and monitor and maintain safety
standards.
City Processes and Procedures
Having worked with many municipal and public agencies, as well as
to the City of South San Francisco, for over 29 years in California,
TRC ENGINEERS, INC.
AT A GLANCE
Founded: 1968
Form of Organization: Corporation
Firm Contact:
James “Mike” Schaaf, PE
jschaaf@trcsolutions.com
Cell: (925) 548-0895
California Office Locations / Size:
San Ramon | 27
San Francisco | 32
Bakersfield | 6
Concord | 42
Costa Mesa | 7
Encinitas | 8
Fresno | 7
Gold River | 10
Irvine | 112
Los Angeles | 11
Mountain View | 13
Oakland | 12
Rancho Cordova | 28
Riverside | 11
Sacramento | 36
San Diego | 36
Services Offered:
• Construction Management
• Resident Engineering
• Project Management
• Roadway Inspection
• Structures Inspection
• Electrical and T / S Inspection
• Landscape Inspection
• Project Administration
• Office Engineering
• Labor Compliance and EPA
• Public Outreach and Awareness
• Traffic Control / Management
• Claims Analysis and Mitigation
• SWPPP, QSD / QSP
• Project Scheduling
• Utility Coordination and
Inspection
• Project / Cost Controls
• Estimating
20
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
inclusive of many cities and counties across the state, we know that local agencies want consultants to adhere to
their administrative processes, policies and procedures and to feel reassured that all work will be performed to their
standards effectively and efficiently. We will work with you to make sure your project(s) is done right, completed per
the approved contract documents and that are delivered in a timely fashion.
Federally Funded Projects Recent Experience
Our staff is comprised of experts in the transportation field that are conversant in Caltrans or FHWA standards,
processes and procedures, as well as federally-funded projects and associated requirements. TRC currently holds an
‘on-call contract’ with Caltrans Districts 4, and recently with Districts 1 and 3, and is working on several local projects
with a variety of funding sources – local, state and federal. Working with Caltrans Local Assistance, we are cognizant
of the funding sources and requirements to account for services performed under federal requirements. The City of
South San Francisco can be assured we are conversant in federal requirements for filing and reporting.
The below projects, in addition to the above, represent but a few of our recently managed / inspected projects that
were delivered using federal monies and / or administered under federal guidelines:
Local Agencies:
• Monterey County - San Juan Road Safety and Overlay Improvements
• Caltrans District 5 - 101 San Miguel Interchange; 101 / 156 Interchange Modifications (Prunedale)
• City of Orinda - Ivy Drive Pavement Rehabilitation and Ivy-Coral Drive SRTS Program
• South San Francisco - Los Cerritos – W. Orange Intersection, Grand-Magnolia T / S and Mission-Evergreen T / S
Federally Aided Projects:
• Caltrans Districts 4, 3 and 1 (04A4254, 04A4255, 04A4265, 03A1810 and 03A2087)
• San Mateo N. Central Pedestrian IIP and SRTS ATPL 5102 (044) projects
• South San Francisco (3) – Los Cerritos / W Orange SRTS, Mission Evergreen and Grand-Magnolia
• Stanisluas County- Crows Landing / Main St. Intersection and Widening and Westley RSTP “F” projects
• Construction of Seismic Retrofit and Rehabilitation of Martin’s Ferry Bridge, Weitchpec, CA, Humboldt County
Department of Public Works
• Manteca Landscape Project on SR-99 and SR-120, City of Manteca
• U.S. 50 HOV Lanes, El Dorado Boulevard to Bass Lake Road, County of El Dorado Department of Transportation
• Construction Management and Inspection Services for the Hilltop Drive Overcrossing of SR-44, City of Redding
• I-405 / I-605 HOV West City Connector Segment, Orange County Transportation Authority
• I-5 Gateway, Orange County Transportation Authority
• Ramona Avenue and Hunts Lane Grade Separation Projects, SBCTA (Formerly SANBAG) and the Cities of
Montclair, Colton and San Bernardino
• On-Call Professional and Technical Construction Management and Engineering Services, San Diego Association
of Governments (SANDAG)
• Alhambra Valley Road Safety and Bicycle Improvements Project, Contra Costa County Public Works Department
• Harris Road Rehabilitation and Overlay, Monterey County
26
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
The TRC Team offers the City of South San Francisco highly experienced and very qualified construction
management resources who have prior experience working with the City and recent very similar experience with
arterial and / or roadway reconstruction improvements in an urban environment. Our proposed personnel are
shown on the following Org Chart:
Legend:
(TE) TRC Engineers, Inc.
(TG) The Thier Group (DBE)
(SA) Summit Associates (DBE)
* Denotes key personnel
FIGURE 2: ORGANIZATIONAL CHART
PROJECT TEAM
(TE) Richard Shirley, RLA
LANDSCAPE INSPECTOR
* (TE) Kenneth Hicks
PROJECT INSPECTOR
(TE) Cheryl Brown
ADMINISTRATIVE SUPPORT /
LABOR COMPLIANCE
(SA) Mark Alexander
(SA) Blaine Johnson
MATERIALS TESTING
(TG) Nicole Ziman
PUBLIC OUTREACH
* (TE) James “Mike” Schaaf, PE
CONSTRUCTION MANAGER /
RESIDENT ENGINEER
(TE) Peter Owen
PRINCIPAL-IN-CHARGE
ADDITIONAL SERVICES (AS-NEEDED)
(TE) Amy Comte, CPESC,
CESSWI, QSD, QSP, ToR
SWPPP Oversight
(TE) Phillip Ruiz
Electrical / Traffic Signals
Inspection
27
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
PERSONNEL BIOS
TRC offers the City a highly experienced and qualified construction engineering and management team of resources
and experience that is unmatched, including our proposed resident engineers, structure representative, inspector
and as-needed staff — all of whom have many years of similar public works, municipal, transportation and Caltrans /
FHWA experience.
We are including our currently available and most qualified staff (key) resources based on their prior successful
experience with similar relevant transportation projects, past working relationships, civil, transportation, structural
and / or highway experience, and their availability to provide full attention to the City’s El Camino Real Project. We
have included complete resumes later in this section for our key staff. The key staff along with support staff for this
project are as follows:
Peter Owen - Principal-In-Charge
Peter offers a broad range of experience in transportation engineering design, program / project management and
construction management for roadway, highway, light rail, rapid transit, and dry dock and airport projects in several
countries. He has performed planning, developed budget estimates, prepared bid documents, checked and negotiated
bids and made recommendations to clients for the award of contracts. Peter has also certified architectural, civil,
structural, mechanical and electrical work for large construction projects, as well as directed activities of engineers
and inspectors in the field. He has experience in the preparation of constructability and bidability reviews, as well as
construction bid documents and contract awards, administering construction contracts and negotiating claims.
James “Mike” Schaaf, PE - Construction Manager / Resident Engineeer
As the Central Region and SF Bay Area Manager, Mike has more than 33 years of direct experience in construction
management and contract administration for a wide variety of public works, transportation (municipalities, Caltrans,
transportation agencies) and land development projects throughout Northern California. Mike is a 1984 graduate of
Cal Poly San Luis Obispo with a BSCE degree. The projects he has supported have included roadway
/ highway / interchange improvements, storm drainage, bridge / interchange improvements, sewer and street
rehabilitation, park, sewage, pump station, public facilities, pavement management, storm drainage and various
public works infrastructure projects.
He has been responsible for environmental permitting and coordination with various permitting agencies, plans
and specifications, Quality Assurance / Control, SWPPP and NPDES monitoring and oversight, capital improvements
programming and construction management services including resident engineering, inspection, budgeting and
scheduling. Mike has recently served as the CM / RE for the City of San Mateo in regards to the 2014 and 2015 City-
Wide Slurry Seal Programs, 2017 SRTS Improvements. 2014 SRTS Sidewalk Repair Project, North Central IIP S / L
and Safety Project (Street Light Improvements) and the 2014 Bridge Rehabilitation Projects. He has also recently
supported the City of South San Francisco’s Los Cerritos – W. Orange Avenue SRTS and Intersection Safety, Grand-
Magnolia T / S and the Mission – Evergreen T / S projects as the CM / RE (all involving traffic signal installations),
Orinda’s 2015 and 2016 Annual and Measures J&L Pavement Rehabilitation Projects, Millbrae’s 2001, 2002, 2009
Pavement Repair Projects, City of Gilroy 14-PW- 208 Sanitary Sewer Trunk Line Replacement Project and City of Elk
Grove’s 2010 and 2011 pavement rehabilitation projects.
Kenneth Hicks - Project Inspector
Ken has more than 16 years of professional experience in the construction industry with an emphasis on public sector
(local agency) construction and transportation projects. He has served as assistant resident engineer, project manager
and inspector of record on numerous projects including roadways, highways, p.c.c. improvements, ADA rehabilitation,
utility and drainage improvements, HMA overlay and new section throughout Northern California. Ken has recently
served as Inspector of Record for the City of San Mateo’s Safe Routes to School (SRTS) ATPL 5102 (044) project and
has recently worked on several projects for the Cities of Norwalk and Corona.
Richard Shirley, RLA - Landscape Inspector
Richard is a registered landscape architect with more than 24 years of design and construction experience. He
has utilized his skills on a variety of projects, including streets, freeways, single and multi-unit housing facilities,
commercial properties, manufacturing facilities and private estates. He has experience in plant ecology, botany and
horticulture. He has extensive city and public works experience including landscape conceptual designs. He has
assisted in refining specifications, budgets, estimating and calculations for large landscape projects.
28
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
Amy Comte, CPESC, CESSWI, QSD, QSP, ToR - SWPPP
Amy has more than 14 years of experience in the construction industry. Her experience includes water quality
monitoring, inspection, plan preparation and review, NPDES inspections and leading NPDES training sessions. She is
a member of the California Storm Water Quality Association and is a Trainer of Record. She facilitated the training
courses for Qualified SWPPP Developers (QSD) and Qualified SWPPP Practitioners (QSP) for TRC’s internal staff and
various clients. Amy has served as a storm water specialist for TRC’s Agoura Road Widening Project for the City of
Agoura Hills and the California Incline Bridge Replacement project for the City of Santa Monica.
Phillip Ruiz - Electrical / Traffic Signals
Phillip has more than 22 years of experience in the electrical field with more than five years in a lead position
with responsibility for field operations and supervision of more than 25 employees. He has direct responsibility
and oversight for projects totaling more than $6.5 million. He ensures that all paperwork and quantities are up to
date. He has experience with electrical plans and materials lists for interpretation of specifications and methods of
installation. He is responsible for construction, installation, maintenance, upgrades, repair, troubleshooting, and
testing of Caltrans traffic signals, highway lighting and sign illumination including multiple and high voltage circuits.
He is knowledgeable in the Caltrans communication system including fiber optic installation, communication
equipment, CCTV surveillance systems, changeable message signs, traffic monitoring and ramp metering stations.
He performs traffic signal, street lighting, and communication ATSAC systems for cities. He maintains professional
relationships with inspectors and engineers.
The Thier Group (DBE)
The Thier Group (TTG), a DBE firm, has extensive expertise in design, construction management, project / program
management, and public outreach. They specialize in large water, transportation, infrastructure, program
management and capital programs for water agencies, transit providers, airports, private developers, transportation
and other government entities. TTG just won an Association of Environmental Professional’s award in public
awareness for our very innovative groundwater management program on the SFPUC’s New Irvington Tunnel Project
and are currently nominated for a national award.
On the public outreach side, TTG has specialized staff in stakeholders engagement (internal and external), jobs
programs, small business outreach, in lobbying, funding acquisition, spokesperson services, in managing public
outreach campaigns and in outreach during the planning, environmental, design and construction phases of projects.
Experienced outreach and good quality construction management is key to the success of any project. Their highly
trained staff will partner with us in creating strategic campaigns and construction management systems that will help
win awards during the project.
Summit & Associates (DBE)
Summit Associates (SA), a DBE firm, is a program, construction management and materials testing firm that was
established in 2000. They have extensive experience on highway, transit, airport (airside/landside/terminal), multi-
story buildings, utilities, and water resource construction programs/projects. Their laboratory facility is certified by
the State of California, Caltrans Trans-Lab and is located in Oakland, CA
They have successfully worked on numerous construction and materials testing projects with the California
Department of Transportation (Caltrans), Nevada Department of Transportation (NDOT), US Department of
Transportation - Federal Highway Administration, Western Federal Lands Highway Division, US Department of
Homeland Security - US Coast Guard, NAVFAC, US Environmental Protection Agency (EPA), Contra Costa County
Public Works Department, Contra Costa Transportation Authority, San Francisco Municipal Railway, San Francisco Bay
Area Rapid Transit (BART), Santa Clara Valley Transportation Authority, San Francisco International Airport, Washoe
County RTC, Washoe County Public Works Department, and Public Works Department for the Cities of Concord,
Milpitas, San Mateo, Rocklin, Walnut Creek, and San Francisco, California.
The key members of our team will remain on this project throughout its duration and will only be substituted
under circumstances beyond our control and with the written permission of the City of South San Francisco.
29
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
FIGURE 3: STAFF EXPERIENCE MATRIX
City of So SF
El Camino Real GBI/TCSP
Grand Blvd. Initiative
Complete Streets Progra
CM Staffing Qualifications Matrix
FACILITY
ON-CALL
EXPERIENCE
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Peter Owen Principal-In-Charge 42
Mike Schaaf, PE Construction Manager /
Resident Engineer 33
Kenneth Hicks Project Inspector 16
Cheryl Brown Admin. Support /
Labor Compliance 15
Richard Shirley, RLA Landscape Inspection 24
Amy Comte, CPSEC, QSD/QSP, ToR SWPPP Oversight 14
Philip Ruiz Electrical / TS Inspection 23
Nicole Ziman (TTG)Public Outreach 16
Mark Alexander (SA)Materials Testing 10
Blaine Johnson (SA)Materials Testing 32
ADMINISTRATION
PROJECT PERSONNEL
YEARS EXPERIENCE
PUBLIC WORKS
EXPERIENCE
CIVIL / MUNICIPAL
ROLE
21
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
TRC was selected as an on-call consultant to provide
architectural, transportation engineering, planning,
environmental and various other professional CM support
services to facilitate implementation of the City’s Capital
Improvement Program (CIP).
Received Notice to Proceed on October 19, 2015 for
all three contract task orders as follows (all three were
federally funded projects):
1. Los Cerritos- W. Orange Avenue Intersection
Improvements and SRTS-ADA Program (No.2563)
60 WDs; completed February 2016; Project Value:
$365,000
2. Grand Avenue-Magnolia Avenue Intersection and
Traffic Signal Improvements (No.2554) 120 WDs;
completed August, 2016; Project Value: $480,000
3. Mission Road - Evergreen Road Intersection and Traffic
Signal Improvements (No.2559) 120 WDs; completed
September, 2016; Project Value: $373,000
The projects (3) have been completed.
Staff Involved:
James “Mike” Schaaf, PE
Mark Alexander
Blaine Johnson
Project Dates:
October 2015 to 2016
Project Cost:
$1.2 million (three task orders)
Client:
City of South San Francisco
Project Services
• Resident Engineer
• Project Inspection
• Office Engineering
• Utility Coordination
• Paving and Sidewalks
• Traffic Signals
ON-CALL ARCHITECTURAL, ENGINEERING AND OTHER PROFESSIONAL SERVICES |
SOUTH SAN FRANCISCO, CA
PROJECT EXPERIENCE
22
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
TRC has been retained by the City of Walnut Creek’s
Engineering and Department of Public Works to provide
Construction Management and Inspection Support services
under their 3-year CIP program between the 2016 and 2019
seasons. On-call construction management support services
covers a range of projects from utility improvements
(water and sewer), street lighting, pavement rehabilitation
and reconstruction (overlay, dig-outs, slurry seal, new
AC section), p.c.c. / sidewalk reconstruction, Safe Routes
to School (SRTS), minor structures and possible bridge
reconstruction, traffic signalization and / or safety lighting
improvements, parks and landscaping and other municipal
projects.
TRC has staffed the following project(s) for the City:
• Ygnacio Valley Road Rehabilitation Phase I, Project No.
15-04
The nature of the work required TRC to provide a diverse
workforce with experience to cover the various tasks
assigned, inclusive of night work and traffic control
experience. TRC’s in-house personnel as assigned to the
City are well-trained with the experience that ensured the
various work items were executed without major issues.The
most significant challenges presented to the Ygnacio Valley
Rd. project was traffic control as this particular section of
Ygnacio Valley Rd. is heavily traveled in the AM and PM
peak hours. Strict adherence to the traffic control plan,
staging and scheduling of all p.c.c. item work and asphalt
reconstruction / overlay was critical to the project’s success;
as noted, all work was completed on time and with no
impact(s) to the traveling public.
TRC provided the inspector of record and all materials
testing and quality assurance support.
Staff Involved:
James “Mike” Schaaf, PE
Mark Alexander
Project Dates:
May 2017 to July 2017
Project Cost:
$1.4 million
Client:
City of Walnut Creek
ON-CALL MATERIAL TESTING AND INSPECTION |
WALNUT CREEK, CA
Project Services
• Construction
Management Support
Services
• Inspector of Record
• Labor Compliance
documentation
• Utility Coordination
• SWPPP Oversight
• Traffic Control and Management
• Pavement Restoration
• Traffic Signalization
• Street Lighting
23
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
After a successful delivery of construction management
services to their 2015 Annual and Measures J & L Pavement
Rehabilitation Project, the Public Works and Engineering
Department of the City of Orinda selected TRC to perform
construction management for their 2016 Annual and
Measures J & L Pavement Rehabilitation Project during the
summer and fall of 2016. Also, TRC was awarded a contract
task order(s) to provide construction management (CM),
inspection, materials testing, transportation engineering,
planning, environmental and various other professional CM
support services to facilitate implementation of the City’s
pavement rehabilitation programs.
1. Ivy Drive Pavement Rehabilitation Project (4095)
completed April 2016; Project Value: $642,000
2. Ivy Drive / Coral Drive Sidewalk (SRTS) Improvements
Project (4093) completed April 2016; Project Value:
$170,000
3. 2015 Annual and Measures J&L Pavement
Rehabilitation (4097 / 4100) 25 Streets; completed
March 2016; Project Value: $6.06 million
4. 2016 Annual and Measures J&L Pavement
Rehabilitation (4105 / 4106) 35 Streets; completed
February 2017; Project Value: $6.5 million
The projects (4) have been completed.
Staff Involved:
James “Mike” Schaaf, PE
Mark Alexander
Project Dates:
June 2015 to February 2017
Project Cost:
$13.5 million (combined)
Client:
City of Orinda
Project Services
• Construction Management Services
• Project Management
• Field Inspection
• Materials Testing
• Utility Coordination
• ADA Improvements
• Pavement Rehabilitation and Reconstruction
• SWPPP Oversight
• Traffic Control and Management
• Public Awareness and Notifications
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES |
ORINDA, CA
24
Construction Management for El Camino Real ProjectGBI TCSP (EA 4G604 Kaiser to McLellan) & OBAG (EA 4G602 Chestnut to Arroyo)
ON-CALL CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES |
SAN MATEO, CA
TRC was retained by the City of San Mateo’s Department
of Public Works to provide construction management and
inspection support services under their 2-year CIP program
between the 2014 and 2016 seasons with two one-year
extensions (which have recently been approved through
the 2019 season). On-call construction management
support services are to cover a range of projects from
utility improvements (water and sewer), street lighting,
pavement rehabilitation and reconstruction (overlay, slurry
seal and on new AC section), sidewalk reconstruction, SRTS,
minor structures and bridge facilities, traffic signalization
improvements, parks and landscaping and other municipal
federally funded projects. TRC was one of three firms that
recently secured an on-call inspection services contract for
the City’s upcoming 2017 projects.
1. 2017 Safe Routes to School (SRTS) Program – ATPL
5102 (044) Project Value: $1.68 million
2. 2014 CIP Pavement Improvement (emergency repair)
Project Value: $85,000
3. Emergency 24” Waterline Repair and Replacement
Project Value: $280,000
4. 2014 and 2015 Urban Slurry Seal Improvements
Project Value: $525,100
5. 2014 Bridge Deck Treatment Program
Project Value: $350,000
6. 2014 - 2015 Sidewalk Repair & SRTS Program,
No. 463231-46024 Project Value: $885,000
7. North Central Pedestrian Safety Improvement and S /
L Project CML5102 (042), Project No. 5432
Project Value: $1.24 million
Staff Involved:
James “Mike” Schaaf, PE, Kenneth Hicks, Mark Alexander
Project Dates:
May 2014 to February 2017
Project Cost:
$5,045,100 million
Client:
City of San Mateo
Project Services
• Construction Management Support Services
• Inspector of Record
• Permitting & Coordination
• Labor Compliance
• Utility Coordination
• SWPPP Oversight
• Traffic Control and Management
• Bridge Deck / Methacrylate
• Pavement Restoration
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-1206 Agenda Date:2/14/2018
Version:1 Item #:3a.
Resolution approving a consulting services agreement with TRC Engineers,Inc.of San Ramon,California for
construction management and inspection services for the Grand Boulevard Initiative Phase I from Arroyo Drive
to Chestnut Avenue and Grand Boulevard Initiative Phase II from McClellan Drive to Kaiser Way in an amount
not to exceed $632,759 for a total budget of $696,035.
WHEREAS,the Grand Boulevard Initiative (“Project”)is a collaboration of 19 cities,counties,local and
regional agencies united to improve the performance, safety, and aesthetics of El Camino Real; and
WHEREAS,the City of South San Francisco (“City”)portion of the Project starts at McClellan Drive and ends
at Chestnut Avenue, which is approximately one mile; and
WHEREAS,the City applied for several grants to help fund the construction of the Project located within the
City; and
WHEREAS,in 2013,the City received a grant in the amount of $1,000,000 from the One Bay Area Grant
(OBAG) program to fund the Arroyo Drive and Chestnut Avenue (“Phase I”) portion; and
WHEREAS,in 2014,the City received a grant in the amount $1,991,000 from State Transportation
Improvement Program and Transportation Enhancement,authorized by City/County Association of
Governments (C/CAG), to fund the McClellan Drive to Kaiser Way (“Phase II”) portion; and
WHEREAS,staff is combining the Project’s Phase I and Phase II to bid and award as one larger project to
allow for receipt of more competitive bids; and
WHEREAS,staff issued a Request for Proposals (RFP)through eBidboard for construction management
services for the Project in December 2017; and
WHEREAS,responses to the RFP were received on January 18,2018,from three (3)firms:K&B Construction
Services, Inc., TRC Engineers, Inc. (“TRC”), and VentureSoft Global; and
WHEREAS, interviews were held with all three (3) firms on January 31, 2018; and
WHEREAS,the interview panel consisted of members of City staff:a Senior Civil Engineer,a Public Works
City of South San Francisco Printed on 4/16/2018Page 1 of 2
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File #:17-1206 Agenda Date:2/14/2018
Version:1 Item #:3a.
Inspector from the Public Works Department, and an Associate Planner from the Planning Division; and
WHEREAS,the selection panel members concluded that TRC was the best qualified firm to provide the
construction management and inspection services for this project, based on both proposal and interview; and
WHEREAS,when analyzing TRC’s proposal and fee schedule,their cost of construction management and
inspection services is approximately 10.5 percent,which is within the industry standard range of 8 to 10 percent
of construction costs; and
WHEREAS,Disadvantaged Business Enterprise (DBE)is required since federal funds are being utilized on this
project; and
WHEREAS, the City has established a DBE contract goal to 0.5 percent; and
WHEREAS,this project is included in the City of South San Francisco’s Fiscal Year 2017-18 Capital
Improvement Program (projects st1403 and st1502).
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco that the City
Council hereby approves a consulting services agreement,attached herewith as Exhibit A,for construction
management and inspection services for the Grand Boulevard Initiative Phase I from Arroyo Drive to Chestnut
Avenue (project st1403)and Grand Boulevard Initiative Phase II from McClellan Drive to Kaiser Way (project
st1502)in an amount not to exceed $632,759 and authorizing a total construction management budget of
$696,035 conditioned on TRC Engineers,Inc.’s timely execution of the consultant services agreement and
submission of all required documents,including but not limited to,certificates of insurance and endorsements,
in accordance with the Project documents.
BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco authorizes the Finance
Department to establish the Project budget consistent with the information contained in the staff report.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreement and any
other related documents on behalf of the City upon timely submission by TRC Engineers,Inc.signed contract
and all other documents, subject to approval as to form by the City Attorney.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take any other related
actions consistent with the intention of this resolution.
*****
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Consulting Services Agreement between [Rev:5.23.2017] February 14, 2018
City of South San Francisco and TRC Engineers, Inc. Page 1 of 21
CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF SOUTH SAN FRANCISCO AND
TRC ENGINEERS, INC.
THIS AGREEMENT for consulting services (“Agreement”) is made by and between the City of
South San Francisco (“City”) and TRC Engineers, Inc. (“Consultant”) (together sometimes referred to as the
“Parties”) as of February 14, 2018 (the “Effective Date”).
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached as Exhibit A, attached hereto
and incorporated herein, at the time and place and in the manner specified therein. In the event of a
conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall
prevail.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall
end on December 31, 2019, the date of completion specified in Exhibit A, and Consultant
shall complete the work described in Exhibit A prior to that date, unless the term of the
Agreement is otherwise terminated or extended, as provided for in Section 8. The time
provided to Consultant to complete the services required by this Agreement shall not affect
the City’s right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Consultant is engaged in the geographical area in
which Consultant practices its profession. Consultant shall prepare all work products
required by this Agreement in a substantial, first-class manner and shall conform to the
standards of quality normally observed by a person practicing in Consultant's profession.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Sections 1.1 and 1.2 above and to satisfy Consultant’s obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed Six
Hundred Thirty Two Thousand Seven Hundred Fifty Nine Dollars and Nine Cents (632,759.09),
notwithstanding any contrary indications that may be contained in Consultant’s proposal, for services to be
performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this
Agreement and Consultant’s proposal, attached as Exhibit A, or Consultant’s compensation schedule
attached as Exhibit B, regarding the amount of compensation, the Agreement shall prevail. City shall pay
Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein.
Consulting Services Agreement between [Rev:5.23.2017] February 14, 2018
City of South San Francisco and TRC Engineers, Inc. Page 2 of 21
The payments specified below shall be the only payments from City to Consultant for services rendered
pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein.
Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by
more than one person.
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant’s estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once per month during
the term of this Agreement, based on the cost for services performed and reimbursable
costs incurred prior to the invoice date. Invoices shall contain the following information:
Serial identifications of progress bills (i.e., Progress Bill No. 1 for the first invoice,
etc.);
The beginning and ending dates of the billing period;
A task summary containing the original contract amount, the amount of prior
billings, the total due this period, the balance available under the Agreement, and
the percentage of completion;
At City’s option, for each work item in each task, a copy of the applicable time
entries or time sheets shall be submitted showing the name of the person doing
the work, the hours spent by each person, a brief description of the work, and
each reimbursable expense;
The total number of hours of work performed under the Agreement by Consultant
and each employee, agent, and subcontractor of Consultant performing services
hereunder, as well as a separate notice when the total number of hours of work by
Consultant and any individual employee, agent, or subcontractor of Consultant
reaches or exceeds eight hundred (800) hours, which shall include an estimate of
the time necessary to complete the work described in Exhibit A;
The amount and purpose of actual expenditures for which reimbursement is
sought;
The Consultant’s signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City
shall have thirty (30) days from the receipt of an invoice that complies with all of the
requirements above to pay Consultant. City shall have no obligation to pay invoices
submitted ninety (90) days past the performance of work or incurrence of cost.
2.3 Final Payment. City shall pay the last ten percent (10%) of the total sum due pursuant to
this Agreement within sixty (60) days after completion of the services and submittal to City
of a final invoice, if all services required have been satisfactorily performed.
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City of South San Francisco and TRC Engineers, Inc. Page 3 of 21
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the compensation schedule attached hereto and incorporated
herein as Exhibit B.
2.6 Reimbursable Expenses. The following constitute reimbursable expenses authorized by
this Agreement mileage, parking, tolls, printing, out of area travel, conference calls,
postage, express mail, and delivery. Reimbursable expenses shall not exceed $1,000.
Expenses not listed above are not chargeable to City. Reimbursable expenses are
included in the total amount of compensation provided under Section 2 of this Agreement
that shall not be exceeded.
2.7 Payment of Taxes, Tax Withholding. Consultant is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes.
To be exempt from tax withholding, Consultant must provide City with a valid California
Franchise Tax Board form 590 (“Form 590”), as may be amended and such Form 590
shall be attached hereto and incorporated herein as Exhibit D. Unless Consultant provides
City with a valid Form 590 or other valid, written evidence of an exemption or waiver from
withholding, City may withhold California taxes from payments to Consultant as required
by law. Consultant shall obtain, and maintain on file for three (3) years after the termination
of this Agreement, Form 590s (or other written evidence of exemptions or waivers) from all
subcontractors. Consultant accepts sole responsibility for withholding taxes from any non-
California resident subcontractor and shall submit written documentation of compliance
with Consultant’s withholding duty to City upon request. .
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
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City of South San Francisco and TRC Engineers, Inc. Page 4 of 21
2.10 Prevailing Wage. Where applicable, the wages to be paid for a day's work to all classes
of laborers, workmen, or mechanics on the work contemplated by this Agreement, shall be
not less than the prevailing rate for a day’s work in the same trade or occupation in the
locality within the state where the work hereby contemplates to be performed as
determined by the Director of Industrial Relations pursuant to the Director’s authority under
Labor Code Section 1770, et seq. Each laborer, worker or mechanic employed by
Consultant or by any subcontractor shall receive the wages herein provided for. The
Consultant shall pay two hundred dollars ($200), or whatever amount may be set by Labor
Code Section 1775, as may be amended, per day penalty for each worker paid less than
prevailing rate of per diem wages. The difference between the prevailing rate of per diem
wages and the wage paid to each worker shall be paid by the Consultant to each worker.
An error on the part of an awarding body does not relieve the Consultant from
responsibility for payment of the prevailing rate of per diem wages and penalties pursuant
to Labor Code Sections 1770 1775. The City will not recognize any claim for additional
compensation because of the payment by the Consultant for any wage rate in excess of
prevailing wage rate set forth. The possibility of wage increases is one of the elements to
be considered by the Consultant.
a. Posting of Schedule of Prevailing Wage Rates and Deductions. If the schedule of
prevailing wage rates is not attached hereto pursuant to Labor Code Section 1773.2, the
Consultant shall post at appropriate conspicuous points at the site of the project a
schedule showing all determined prevailing wage rates for the various classes of laborers
and mechanics to be engaged in work on the project under this contract and all
deductions, if any, required by law to be made from unpaid wages actually earned by the
laborers and mechanics so engaged.
b. Payroll Records. Each Consultant and subcontractor shall keep an accurate
payroll record, showing the name, address, social security number, work week, and the
actual per diem wages paid to each journeyman, apprentice, worker, or other employee
employed by the Consultant in connection with the public work. Such records shall be
certified and submitted weekly as required by Labor Code Section 1776.”
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
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Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and
amounts of insurance listed below against claims for injuries to persons or damages to property that may
arise from or in connection with the performance of the work hereunder by the Consultant and its agents,
representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall
provide Certificates of Insurance, attached hereto and incorporated herein as Exhibit C, indicating that
Consultant has obtained or currently maintains insurance that meets the requirements of this section and
under forms of insurance satisfactory, in all respects, to the City. Consultant shall maintain the insurance
policies required by this section throughout the term of this Agreement. The cost of such insurance shall be
included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any
subcontract until Consultant has obtained all insurance required herein for the subcontractor(s).
4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers’
Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000) per accident. In the alternative,
Consultant may rely on a self-insurance program to meet those requirements, but only if
the program of self-insurance complies fully with the provisions of the California Labor
Code. Determination of whether a self-insurance program meets the standards of the
Labor Code shall be solely in the discretion of the Contract Administrator (as defined in
Section 10.9). The insurer, if insurance is provided, or the Consultant, if a program of self-
insurance is provided, shall waive all rights of subrogation against the City and its officers,
officials, employees, and volunteers for loss arising from work performed under this
Agreement.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00)
per occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be
performed under this Agreement or the general aggregate limit shall be at least
twice the required occurrence limit. Such coverage shall include but shall not be
limited to, protection against claims arising from bodily and personal injury,
including death resulting there from, and damage to property resulting from
activities contemplated under this Agreement, including the use of owned and non-
owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
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CG 0001 or GL 0002 (most recent editions) covering comprehensive General
Liability and Insurance Services Office form number GL 0404 covering Broad
Form Comprehensive General Liability. Automobile coverage shall be at least as
broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90)
Code 8 and 9. No endorsement shall be attached limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy
shall not affect coverage provided to City and its officers, employees,
agents, and volunteers.
4.3 Professional Liability Insurance.
4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain
for the period covered by this Agreement professional liability insurance for
licensed professionals performing work pursuant to this Agreement in an amount
not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed
professionals’ errors and omissions. Any deductible or self-insured retention shall
not exceed ONE HUNDRED FIFTY THOUSAND DOLLARS $150,000 per claim.
4.3.2 Claims-made limitations. The following provisions shall apply if the professional
liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five (5) years after completion of the Agreement or
the work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must provide extended reporting coverage for
a minimum of five (5) years after completion of the Agreement or the work.
The City shall have the right to exercise, at the Consultant’s sole cost and
expense, any extended reporting provisions of the policy, if the Consultant
cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
prior to the commencement of any work under this Agreement.
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4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with complete copies of all policies delivered to
Consultant by the insurer, including complete copies of all endorsements attached
to those policies. All copies of policies and certified endorsements shall show the
signature of a person authorized by that insurer to bind coverage on its behalf. If
the City does not receive the required insurance documents prior to the Consultant
beginning work, it shall not waive the Consultant’s obligation to provide them. The
City reserves the right to require complete copies of all required insurance policies
at any time.
4.4.3 Notice of Reduction in or Cancellation of Coverage. A certified endorsement
shall be attached to all insurance obtained pursuant to this Agreement stating that
coverage shall not be suspended, voided, canceled by either party, or reduced in
coverage or in limits, except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City. In the event that any
coverage required by this section is reduced, limited, cancelled, or materially
affected in any other manner, Consultant shall provide written notice to City at
Consultant’s earliest possible opportunity and in no case later than ten (10)
working days after Consultant is notified of the change in coverage.
4.4.4 Additional insured; primary insurance. City and its officers, employees, agents,
and volunteers shall be covered as additional insureds with respect to each of the
following: liability arising out of activities performed by or on behalf of Consultant,
including the insured’s general supervision of Consultant; products and completed
operations of Consultant, as applicable; premises owned, occupied, or used by
Consultant; and automobiles owned, leased, or used by the Consultant in the
course of providing services pursuant to this Agreement. The coverage shall
contain no special limitations on the scope of protection afforded to City or its
officers, employees, agents, or volunteers.
A certified endorsement must be attached to all policies stating that coverage is
primary insurance with respect to the City and its officers, officials, employees and
volunteers, and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
4.4.5 Deductibles and Self-Insured Retentions. Consultant shall disclose to and
obtain the approval of City for the self-insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
Further, if the Consultant’s insurance policy includes a self-insured retention that
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must be paid by a named insured as a precondition of the insurer’s liability, or
which has the effect of providing that payments of the self-insured retention by
others, including additional insureds or insurers do not serve to satisfy the self-
insured retention, such provisions must be modified by special endorsement so as
to not apply to the additional insured coverage required by this agreement so as to
not prevent any of the parties to this agreement from satisfying or paying the self-
insured retention required to be paid as a precondition to the insurer’s liability.
Additionally, the certificates of insurance must note whether the policy does or
does not include any self-insured retention and also must disclose the deductible.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.4.7 Wasting Policy. No insurance policy required by Section 4 shall include a
“wasting” policy limit.
4.4.8 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverage, scope, limits, and forms of
such insurance are either not commercially available, or that the City’s interests
are otherwise fully protected.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
b. Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
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c. Terminate this Agreement.
Section 5. INDEMNIFICATION AND Consultant’s RESPONSIBILITIES. To the fullest extent
permitted by law, Consultant shall indemnify, defend with counsel selected by the City, and hold harmless
the City and its officials, officers, employees, agents, and volunteers from and against any and all losses,
liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily
injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or
ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions
of Consultant or its employees, subcontractors, or agents, by acts for which they could be held strictly
liable, or by the quality or character of their work. The foregoing obligation of Consultant shall not apply
when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the gross
negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the
actions of Consultant or its employees, subcontractor, or agents have contributed in no part to the injury,
loss of life, damage to property, or violation of law. It is understood that the duty of Consultant to indemnify
and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.
Acceptance by City of insurance certificates and endorsements required under this Agreement does not
relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification
and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance
policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges
and agrees to the provisions of this Section and that it is a material element of consideration.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services
under this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions
for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6. STATUS OF Consultant.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the
right to control Consultant only insofar as the results of Consultant's services rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however, otherwise City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
all claims to, any compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
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6.2 Consultant No Agent. Except as City may specify in writing, Consultant shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent or to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its employees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals, including from City, of what-so-ever nature that are legally required to
practice their respective professions. Consultant represents and warrants to City that
Consultant and its employees, agents, any subcontractors shall, at their sole cost and
expense, keep in effect at all times during the term of this Agreement any licenses,
permits, and approvals that are legally required to practice their respective professions. In
addition to the foregoing, Consultant and any subcontractors shall obtain and maintain
during the term of this Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person’s race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any
employee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Consultant under this
Agreement. Consultant shall comply with all applicable federal, state, and local laws,
policies, rules, and requirements related to equal opportunity and nondiscrimination in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations required
of Consultant thereby.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
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Consultant may cancel this Agreement for cause upon 30 days’ written notice to City and
shall include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services
performed to the date of notice of termination; City, however, may condition payment of
such compensation upon Consultant delivering to City all materials described in Section
9.1.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no
obligation to reimburse Consultant for any otherwise reimbursable expenses incurred
during the extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant’s unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not assign or subcontract any
portion of the performance contemplated and provided for herein, other than to the
subcontractors noted in the proposal, without prior written approval of the Contract
Administrator.
8.4.1 Subcontracting
A. Nothing contained in this Agreement or otherwise, shall create any contractual
relationship between City and any subconsultant(s), and no subcontract shall
relieve Consultant of its responsibilities and obligations hereunder. Consultant
agrees to be as fully responsible to City for the acts and omissions of its
subconsultant(s) and of persons either directly or indirectly employed by any of
them as it is for the acts and omissions of persons directly employed by
Consultant. Consultant’s obligation to pay its subconsultant(s) is an
independent obligation from City’s obligation to make payments to the
Consultant.
B. Consultant shall perform the work contemplated with resources available within
its organization and no portion of the work pertinent to this contract shall be
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subcontracted without written authorization by City’s Contract Administrator,
except that, which is expressly identified in the approved Scope of Work.
C. Consultant shall pay its subconsultants within ten (10) calendar days from
receipt of each payment made to Consultant by City.
D. Any subcontract in excess of $25,000 entered into as a result of this contract
shall contain all the provisions in this contract to be applicable to subconsultants.
E. Any substitution of subconsultant(s) must be approved in writing by City’s
Contract Administrator prior to the start of work by the subconsultant(s).
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City’s remedies shall include, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Consultant prepares or obtains pursuant to this Agreement and that relate to the matters
covered hereunder shall be the property of the City. Consultant hereby agrees to deliver
those documents to the City upon termination of the Agreement. It is understood and
agreed that the documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City and are
not necessarily suitable for any future or other use. City and Consultant agree that, until
final approval by City, all data, plans, specifications, reports and other documents are
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confidential and will not be released to third parties without prior written consent of both
parties unless required by law.
9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of three (3) years, or for any longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the
request of City or as part of any audit of the City, for a period of three (3) years after final
payment under the Agreement.
9.3.1 Retention of Records/Audit
For the purpose of determining compliance with Public Contract Code 10115, et
seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq.,
when applicable and other matters connected with the performance of the contract
pursuant to Government Code 8546.7; Consultant, subconsultants, and City shall
maintain and make available for inspection all books, documents, papers,
accounting records, and other evidence pertaining to the performance of the
Agreement, including but not limited to, the costs of administering the Agreement.
All parties shall make such materials available at their respective offices at all
reasonable times during the term of the Agreement and for three years from the
date of final payment under the Agreement. The state, State Auditor, City, FHWA,
or any duly authorized representative of the Federal Government shall have access
to any books, records, and documents of Consultant and its certified public
accountants (CPA) work papers that are pertinent to the contract and indirect cost
rates (ICR) for audit, examinations, excerpts, and transactions, and copies thereof
shall be furnished if requested. Subcontracts in excess of $25,000 shall contain the
provision.
9.3.2 Audit Review Procedures.
A. Any dispute concerning a question of fact arising under an interim or post audit
of this Agreement that is not disposed of by agreement, shall be reviewed by
City’s Finance Director.
B. Not later than 30 days after issuance of the final audit report, Consultant may
request a review by City’s Finance Director of unresolved audit issues. The
request for review will be submitted in writing.
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C. Neither the pendency of a dispute nor its consideration by City will excuse
Consultant from full and timely performance, in accordance with the terms of this
contract.
9.4 Records Submitted in Response to an Invitation to Bid or Request for Proposals. All
responses to a Request for Proposals (RFP) or invitation to bid issued by the City become
the exclusive property of the City. At such time as the City selects a bid, all proposals
received become a matter of public record, and shall be regarded as public records, with
the exception of those elements in each proposal that are defined by Consultant and
plainly marked as “Confidential,” "Business Secret" or “Trade Secret."
The City shall not be liable or in any way responsible for the disclosure of any such
proposal or portions thereof, if Consultant has not plainly marked it as a "Trade Secret" or
"Business Secret," or if disclosure is required under the Public Records Act.
Although the California Public Records Act recognizes that certain confidential trade secret
information may be protected from disclosure, the City may not be in a position to establish
that the information that a prospective bidder submits is a trade secret. If a request is
made for information marked "Trade Secret" or "Business Secret," and the requester takes
legal action seeking release of the materials it believes does not constitute trade secret
information, by submitting a proposal, Consultant agrees to indemnify, defend and hold
harmless the City, its agents and employees, from any judgment, fines, penalties, and
award of attorneys fees awarded against the City in favor of the party requesting the
information, and any and all costs connected with that defense. This obligation to
indemnify survives the City's award of the contract. Consultant agrees that this
indemnification survives as long as the trade secret information is in the City's possession,
which includes a minimum retention period for such documents.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including arbitration or an
action for declaratory relief, to enforce or interpret the provision of this Agreement, the
prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief
to which that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County San Mateo or in the United States District Court for
the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
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provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve (12) months,
Consultant warrants that it did not participate in any manner in the forming of this
Agreement. Consultant understands that, if this Agreement is made in violation of
Government Code §1090 et.seq., the entire Agreement is void and Consultant will not be
entitled to any compensation for services performed pursuant to this Agreement, including
reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code § 1090 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by Matthew Ruble
("Contract Administrator"). All correspondence shall be directed to or through the Contract
Administrator or his or her designee.
10.10 Notices. All notices and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when
received if personally delivered; (ii) when received if transmitted by telecopy, if received
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during normal business hours on a business day (or if not, the next business day after
delivery) provided that such facsimile is legible and that at the time such facsimile is sent
the sending Party receives written confirmation of receipt; (iii) if sent for next day delivery
to a domestic address by recognized overnight delivery service (e.g., Federal Express);
and (iv) upon receipt, if sent by certified or registered mail, return receipt requested. In
each case notice shall be sent to the respective Parties as follows:
Consultant
TRC Engineers, Inc.
3000 Executive Parkway, Suite 460
San Ramon, CA 94583
City
NOTICES INVOICES
City Clerk Engineering
City of South San Francisco City of South San Francisco
400 Grand Avenue 315 Maple Ave
South San Francisco, CA 94080 South San Francisco, CA 94080
10.11 Professional Seal. Where applicable in the determination of the contract administrator,
the first page of a technical report, first page of design specifications, and each page of
construction drawings shall be stamped/sealed and signed by the licensed professional
responsible for the report/design preparation. The stamp/seal shall be in a block entitled
"Seal and Signature of Registered Professional with report/design responsibility," as in the
following example.
Seal and Signature of Registered Professional with
report/design responsibility.
10.12 Integration. This Agreement, including all Exhibits attached hereto, and incorporated
herein, represents the entire and integrated agreement between City and Consultant and
supersedes all prior negotiations, representations, or agreements, either written or oral
pertaining to the matters herein.
10.13 Counterparts. This Agreement may be executed in counterparts and/or by facsimile or
other electronic means, and when each Party has signed and delivered at least one such
counterpart, each counterpart shall be deemed an original, and, when taken together with
other signed counterpart, shall constitute one Agreement, which shall be binding upon and
effective as to all Parties..
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10.14 Construction. The headings in this Agreement are for the purpose of reference only and
shall not limit or otherwise affect any of the terms of this Agreement. The parties have had
an equal opportunity to participate in the drafting of this Agreement; therefore any
construction as against the drafting party shall not apply to this Agreement.
10.15 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the
Parties hereto with no intent to benefit any non-signatory third parties.
10.16 Cost Principles and Administrative Requirements.
A. Consultant agreed that the Contract Cost Principles and Procedures, 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31.000 et seq., shall be used to
determine the cost allowability of individual items not otherwise identified in the Scope of
Work.
B. Consultant also agrees to comply with federal procedures in accordance with 49 CFR,
Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments.
C. Any costs for which payment has been made to Consultant that are determined by
subsequent audit to be unallowable under 49CFR, Part 18 and 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31.000 et seq., are subject to repayment
by Consultant to City.
D. All subcontracts in excess of $25,000 shall contain the above provisions.
10.17 Rebates, Kickbacks or Other Unlawful Consideration. Consultant warrants that this
Agreement was not obtained or secured through rebates, kickbacks or other unlawful
consideration, either promised or paid to any City employee. For breach or violation of this
warranty, City shall have the right in its discretion; to terminate the Agreement without
liability; to pay only for the value of the work actually performed; or to deduct from the total
compensation stated in this Agreement; or otherwise recover the full amount of such
rebate, kickback or other unlawful consideration.
10.18 Statement of Compliance.
A. Consultant’s signature affixed herein, and dated, shall constitute a certification under
penalty of perjury under the laws of the State of California that Consultant has, unless
exempt, complied with the nondiscrimination program requirements of Government
Code Section 12990 and Title 2, California Administrative Code, Section 8103.
B. During the performance of this Agreement, Consultant and its subconsultants shall not
unlawfully discriminate, harass or allow harassment against any employee or applicant
for employment because of sex, race, color, ancestry, religious creed, national origin,
physical disability (including HIV and AIDS), mental disability, medical condition (e.g.,
cancer), age (over 40), marital status, and denial of family care leave. Consultant and
subconsultants shall insure that the evaluation and treatment of their employees and
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applicants for employment are free from such discrimination and harassment.
Consultants and subconsultants shall comply with the provisions of the Fair
Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable
regulations promulgated there under (California Code of Regulations, Title 2, Section
7285 et seq.). The applicable regulations of the Fair Employment and Housing
Commission implementing Government Code §12990 (a-f), set forth in Chapter 5 of
Division 4 of Title 2 of the California Code of Regulations, are incorporated into this
Contract by reference and made a part hereof as if set forth in full. Consultant and its
subconsultants shall give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other Agreement.
C. The Consultant shall comply with regulations relative to Title VI (nondiscrimination in
federally-assisted programs of the Department of Transportation – Title 49 Code of
Federal Regulations, Part 21 – Effectuation of Title VI of the 1964 Civil Rights Act).
Title VI provides that the recipients of federal assistance will implement and maintain a
policy of nondiscrimination in which no person in the State of California shall, on the
basis of race, color, national origin, religion, sex, age, disability, be excluded from
participation in, denied the benefits of or subject to discrimination under any program or
activity by the recipients of federal assistance of their assignees and successors in
interest.
D. The Consultant, with regard to the work, performed by it during the Agreement shall act
in accordance with Title VI. Specifically, the Consultant shall not discriminate on the
basis of race, color, national origin, religion, sex, age, or disability in selection and
retention of Subconsultants, including procurement of materials and leases of
equipment. The Consultant shall not participate either directly or indirectly in the
discrimination prohibited by Section 21.5 of the U.S. DOT’s Regulations, including
employment practices when the Agreement covers a program whose goal is
employment.
10.19 Debarment and Suspension Certification.
A. Consultant’s signature affixed herein, shall constitute a certification under penalty of
perjury under the laws of the State of California, that Consultant has complied with Title
2 CFR, Part 180, “OMB Guidelines to Agencies on Government wide Debarment and
Suspension (nonprocurement)”, which certifies that he/she or any person associated
therewith in the capacity of owner, partner, director, officer, or manager, is not currently
under suspension, debarment, voluntary exclusion, or determination of ineligibility by
any federal agency; has not been suspended, debarred, voluntarily excluded, or
determined ineligible by any federal agency within the past three (3) years; does not
have a proposed debarment pending; and has not been indicted, convicted, or had a
civil judgment rendered against it by a court of competent jurisdiction in any manner
involving fraud or official misconduct within the past three (3) years. Any exceptions to
this certification must be disclosed to City.
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B. Exceptions will not necessarily result in denial of recommendation for award, but will be
considered in determining Consultant responsibility. Disclosures must indicate to whom
exceptions apply, initiating agency, and dates of action.
C. Exceptions to the Federal Government Excluded Parties List System maintained by the
General Services Administration are to be determined by the Federal Highway
Administration.
10.20 Disadvantaged Business Enterprises (DBE) Participation.
A. This Agreement is subject to 49 CFR, Part 26 entitled “Participation by Disadvantaged
Business Enterprises in Department of Transportation Financial Assistance Programs”.
Consultants who obtain DBE participation on this Agreement will assist Caltrans in
meeting its federally mandated statewide overall DBE goal.
B. The goal for DBE participation for this Agreement is 11%. Participation by DBE
consultant or subconsultants shall be in accordance with information contained in the
Consultant Proposal DBE Commitment (Exhibit 10-O1), or in the Consultant Contract
DBE Information (Exhibit 10-O2) attached hereto and incorporated as part of the
Contract. If a DBE subconsultant is unable to perform, Consultant must make a good
faith effort to replace him/her with another DBE subconsultant, if the goal is not
otherwise met.
C. DBEs and other small businesses, as defined in 49 CFR, Part 26 are encouraged to
participate in the performance of Agreements financed in whole or in part with deferral
funds. Consultant or subconsultant shall not discriminate on the basis of race, color,
national origin, or sex in the performance of this Agreement. Consultant shall carry out
applicable requirements of 49 CFR, Part 26 in the award and administration of US
DOT-assisted agreements. Failure by Consultant to carry out these requirements is a
material breach of this Agreement, which may result in the termination of this
Agreement or such other remedy as City deems appropriate.
D. Any subcontract entered into as a result of this Agreement shall contain all of the
provisions of this section.
E. A DBE firm may be terminated only with prior written approval from LOCAL AGNECY
and only for the reasons specified in 49 CFR 26.53(f). Prior to requesting City consent
for the termination, Consultant must meet the procedural requirements specified in 49
CFR 26.53(f).
F. A DBE performs a Commercially Useful Function (CUF) when it is responsible for
execution of the work of the Agreement and is carrying out its responsibilities by
actually performing, managing, and supervising the work involved. To perform a CUF,
the DBE must also be responsible with respect to materials and supplies used on the
Agreement, for negotiating price, determining quality and quantity, ordering the
material, and installing (where applicable) and paying for the material itself. To
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determine whether a DBE is performing a CUF, evaluate the amount of work
subcontracted, industry practices, whether the amount the firm is to be paid under the
Agreement is commensurate with the work it is actually performing, and other relevant
factors.
G. A DBE does not perform a CUF if its role is limited to that of an extra participant in a
transaction, Agreement or project through which funds are passed in order to obtain the
appearance of DBE participation. In determining whether a DBE is such an extra
participant, examine similar transactions, particularly those in which DBEs do not
participate.
H. If a DBE does not perform or exercise responsibility for at least thirty percent (30%) of
the total cost of its Agreement with its own work force or the DBE subcontracts a
greater portion of the work of the Agreement than would be expected on the basis of
normal industry practice for the type of work involved, it will be presumed that it is not
performing a CUF.
I. Consultant shall maintain records of materials purchased or supplied from all
subcontracts entered into with certified DBEs. The records shall show the name and
business address of each DBE or vendor and the total dollar amount actually paid each
DBE or vendor, regardless of tier. The records shall show the date of payment and the
total dollar figure paid to all firms. DBE prime consultants shall also show the date of
work performed by their own forces along with the corresponding dollar value of the
work.
J. Upon completion of the Agreement, a summary of these records shall be prepared and
submitted on the form entitled, “Final Report-Utilization of Disadvantaged Business
Enterprise (DBE), First-Tier Subconsultants” CEM-2402F [Exhibit 17-F of the LAPM],
certified correct by Consultant or Consultant’s authorized representative and shall be
furnished to the Contract Administrator with the final invoice. Failure to provide the
summary of DBE payments with the final invoice will result in twenty-five percent (25%)
of the dollar value of the invoice being withheld from payment until the form is
submitted. The amount will be returned to Consultant when a satisfactory ‘Final Report-
Utilization of Disadvantaged Business Enterprises (DBE), First-Tier Subconsultants” is
submitted to the Contract Administrator.
K. If a DBE subconsultant is decertified during the life of the Agreement, the decertified
subconsultant shall notify Consultant in writing with the date of decertification. If a
subconsultant becomes a certified DBE during the life of the Contract, the
subconsultant shall notify Consultant in writing with the date of certification. Any
changes should be reported to City’s Contract Administrator within 30 days.
The Parties have executed this Agreement as of the Effective Date.
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CITY OF SOUTH SAN FRANCISCO Consultants
____________________________ _____________________________________
Mike Futrell, City Manager NAME:
TITLE:
Attest:
_____________________________
City Clerk
Approved as to Form:
____________________________
City Attorney
2729962.1
EXHIBIT A
SCOPE OF SERVICES
EXHIBIT B
COMPENSATION SCHEDULE
EXHIBIT C
INSURANCE CERTIFICATES
EXHIBIT D
FORM 590
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-91 Agenda Date:2/14/2018
Version:1 Item #:4.
Report regarding a resolution adopting findings and authorizing a contract for emergency repair work to
address the storm drain failure and related repairs on Junipero Serra Boulevard near Westborough Boulevard;
and amending the 2017-18 Public Works Department operating budget by $663,525 pursuant to Budget
Amendment No. 18.023.(Eunejune Kim, Director of Public Works)
RECOMMENDATION
It is recommended that the City Council approve a resolution adopting findings and authorizing a
contract for emergency repair work to address the storm drain failure and related repairs on Junipero
Serra near Westborough Boulevard;and amending the 2017-18 Public Works Department operating
budget by $663,525 pursuant to Budget Amendment No. 18.023.
BACKGROUND/DISCUSSION
On Wednesday,January 24,2018 at 2:30 p.m.,staff was called out to the vicinity of Junipero Serra Boulevard,
just north of Westborough Boulevard.Due to a failure in the storm drainage system located under the shoulder
and bicycle path of the northbound lanes of Junipero Serra Boulevard,the storm water undermined and eroded
the soil under the road section.Due to the dangerous condition created by the compromised road,the City as an
emergency response measure,contacted Interstate Grading &Paving of South San Francisco,CA,Contractor
License No.366020,expiration date November 30,2018,license class A,to first implement a lane closure to
prevent motorists from driving in the affected lane.To date,Interstate Grading &Paving has continued the
traffic control on Junipero Serra by installing K-rails,cleared and grubbed the affected area,removed the unsafe
street section,plugged the storm drain system to prevent any storm water from further erosion,and stabilized
the area on a Time and Material (T&M)basis.This initial emergency work was performed at an estimated cost
of $55,000.
The City,through its on-call contracts,called geotechnical engineers,Cotton Shires &Associates,to assess the
damage and recommend repair measures.Cotton Shires &Associates has performed a survey of the affected
site,designed an acceptable repair for the existing condition,and tested the various materials to be used for the
repair. This initial work was performed at an estimated cost of $12,000.
Due to the emergency nature of the storm drain failure and potential health,safety and welfare impacts on the
City and local residents,City staff contacted Interstate Grading &Paving of South San Francisco,CA,
Contractor License No.366020,expiration date November 30,2018,license class A;and ProVen Management,
Inc.of Oakland,CA,Contractor License No.749370,expiration date May 31,2019,license class A for repair
work quotes.Both contractors expressed their ability to quickly mobilize to assess and repair the damaged storm
drain main and effect related repairs recommended by the geotechnical engineers.The recommended repair
work is to clear out the debris,fill the undermined cavity with engineered fill and fix the storm drain lines
accordingly.On January 29,2018,staff presented this item at the Special City Council meeting;however,only
three (3)councilmembers were present.This emergency repair work requires four-fifths votes to ratify the
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File #:18-91 Agenda Date:2/14/2018
Version:1 Item #:4.
three (3)councilmembers were present.This emergency repair work requires four-fifths votes to ratify the
work.Staff and City Council were advised by the City Attorney that this item would be continued to the
February 14, 2018 City Council meeting.
Prior to the January 29,2018 Special City Council meeting,City staff received two (2)estimates based on the
existing condition and type of repair. The following is a summary of the estimates:
Interstate Grading and Paving $229,989.88
ProVen Management, Inc.$247,109.00
After further investigation of the existing site,it was found that there was extensive damage and City staff and
the City’s geotechnical engineer re-evaluated the previous repair plans and modified the plans to address current
site and soil conditions.There are two options for the repair work.The City could either use rip rap or
engineered fill method to repair the slide.
City staff contacted Interstate Grading &Paving of South San Francisco,CA,Contractor License No.366020,
expiration date November 30,2018,license class A;ProVen Management,Inc.of Oakland,CA,Contractor
License No.749370,expiration date May 31,2019,license class A;JMB Construction of South San Francisco,
CA,Contractor License No.715324,expiration date November 30,2019,license class A;and Granite Rock
Company of Watsonville,CA,Contractor License No.22,expiration date April 30,2019,license class A for the
modified repair work.ProVen Management,Inc.,JMB Construction,and Granite Rock Company declined
from providing a quote because the firms did not have the resources to dedicate to this p.Interstate Grading and
Paving provided a quote of $537,525 for the engineered fill repair method and $759,300 for the rip rap repair
method.
Staff recommends selecting Interstate Grading and Paving of South San Francisco,CA using the engineered fill
repair method to perform the emergency repair.In addition,due to the emergency nature of this work,
unforeseen conditions are likely to arise during the course of construction,leading to additional repairs
associated with this incident.Cotton Shires &Associates will be present on-site throughout the emergency
repair work and provide additional necessary assessments.
As required by Public Contract Code section 22050(c)(1),this emergency repair project will be placed back on
the future regular City Council meeting for the Council to review this emergency action and determine,by a
four-fifths vote,whether that there is a need to continue the action,until such emergency repairs have been
completed and the project terminated.
The following is the project budget:
Initial Emergency Repair with Interstate Grading & Paving $ 55,000.00
Emergency Repair Contract with Interstate Grading & Paving $537,525.00
Initial Emergency Repair Engr. with Cotton Shires & Associates $ 11,000.00
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File #:18-91 Agenda Date:2/14/2018
Version:1 Item #:4.
Emergency Repair Engineering with Cotton Shires & Associates $ 60,000.00
Total Project Budget $663,525.00
There are no federal funds being utilized by this project.There are no Disadvantaged Business Enterprise (DBE)
goals.
FUNDING
This emergency repair work will require a budget amendment to fund the work.Budget Amendment No.
18.023 is as follows:
1.Increase of the transfer out from the General Fund to the Storm Water Fund -100-00000-9740;
$663,525.
2.Increase the transfer in from the General Fund to the Storm Water Fund - 740-00000-39100; $663,525.
3.Increase the Professional Services Expense Account - 740-13810-5005; $663,525.
CONCLUSION
Approving the resolution and adopting the findings will authorize a contract for emergency repair work to
address the storm drain failure and related repairs on Junipero Serra near Westborough Boulevard.The 2017-18
Public Works Department operating budget will be amended by appropriating an additional $663,525 from the
General Fund, pursuant to Budget Amendment No. 18.023.
Attachment:Pictures of Storm Drain Damage
City of South San Francisco Printed on 2/8/2018Page 3 of 3
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-92 Agenda Date:2/14/2018
Version:1 Item #:4a.
Resolution adopting findings and authorizing a contract for emergency repair work to address the storm drain
failure and related repairs on Junipero Serra Boulevard near Westborough Boulevard;and amending the 2017-
18 Public Works Department operating budget by $663,525 pursuant to Budget Amendment No. 18.023.
WHEREAS,at approximately 2:30 p.m.on Wednesday,January 24,2018,City of South San Francisco (“City”)
staff were alerted of an apparent storm drain failure located in the northbound lanes of Junipero Serra Boulevard
near Westborough Boulevard; and
WHEREAS,City staff examined the site and determined that the failure involved a storm drain line due to
corroded pipes and erosion of soil undermining the road section; and
WHEREAS,as a result of the storm drain failure,the City as an emergency response measure contacted
Interstate Grading &Paving of South San Francisco,CA,Contractor License No.366020,expiration date
November 30,2018,license class “A”,to implement a lane closure to prevent motorists from driving in the
affected lane and perform additional initial emergency work; and
WHEREAS,the initial emergency work,which includes implementing the lane closure,continuing traffic
control on Junipero Serra with the installation of K-rails,clearing and grubbing the affected area,removing
unsafe street section,plugging the storm drain system to prevent further erosion,and stabilizing the area on a
Time and Material (T&M)basis,was performed by Interstate Grading and Paving,Contractor License No.
366020, expiration date November 30, 2018, license class “A”, in the amount not to exceed $55,000; and
WHEREAS,the City,through its on-call contracts,called geotechnical engineers,Cotton Shires &Associates,
to assess the damage and recommend repair measures; and
WHEREAS,due to the emergency nature of the storm drain failure and potential threats to public health and
safety,City staff contacted Interstate Grading &Paving,Contractor License No.366020,expiration date
November 30,2018,license class “A”;and ProVen Management,Inc.,Contractor License No.749370,
expiration date May 31,2019,license class “A”,for repair work quotes.Both contractors expressed their ability
to quickly mobilize to assess and repair the damaged storm drain main and effect related repairs recommended
by the geotechnical engineers; and
WHEREAS,prior to the January 29,2018 Special City Council meeting,City staff received two (2)estimatesCity of South San Francisco Printed on 4/16/2018Page 1 of 4
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File #:18-92 Agenda Date:2/14/2018
Version:1 Item #:4a.
WHEREAS,prior to the January 29,2018 Special City Council meeting,City staff received two (2)estimates
from contacted Interstate Grading &Paving of South San Francisco,CA,Contractor License No.366020,
expiration date November 30,2018,license class “A”,in the amount of $229,989.88;and ProVen Management,
Inc.of Oakland,CA,Contractor License No.749370,expiration date May 31,2019,license class “A”in the
amount of $247,109, depending on the type and extent of work performed; and
WHEREAS,further investigation of the existing site revealed extensive damage,and City staff and the City’s
geotechnical engineer re-evaluated the previous repair plans and modified the plans to address current site and
soil conditions, in which the City could either use rip rap or engineered fill to repair the slide; and
WHEREAS,based on the revised repair plans,City staff contacted Interstate Grading &Paving of South San
Francisco,CA,Contractor License No.366020,expiration date November 30,2018,license class “A”;ProVen
Management,Inc.of Oakland,CA,Contractor License No.749370,expiration date May 31,2019,license class
“A”;JMB Construction of South San Francisco,CA,Contractor License No.715324,expiration date November
30,2019,license class “A”;and Granite Rock Company of Watsonville,CA,Contractor License No.22,
expiration date April 30, 2019, license class “A” for quotes on the proposed modified repair work; and
WHEREAS,ProVen Management,Inc.,JMB Construction,and Granite Rock Company declined to provide a
quote because the firms did not have the resources to dedicate to this project; and
WHEREAS,Interstate Grading and Paving provided a quote of $537,525 for the engineered fill repair method
and $759,300 for the rip rap repair method; and
WHEREAS, City staff recommends that repair work be completed using the engineered fill method; and
WHEREAS,due to the urgent and unforeseen nature of the proposed repair work,Cotton Shires &Associates
will,pursuant to the on-call services agreement,continue to be present on-site during the emergency repair
work to provide additional engineering assessments as necessary.
FINDINGS
WHEREAS, the City Council of the City of South San Francisco hereby finds as follows:
A.Pursuant to California Public Contract Code Section 20168,the public interest and necessity
demanded the immediate commencement of the above-described work on Junipero Serra in the City and the
expenditure of public money for such work to safeguard life, health and property; and
B.Pursuant to California Public Contract Code Section 22050,substantial evidence as set forth in
the staff report prepared concerning this resolution,and as set forth in this resolution,establishes that the
emergency conditions on Junipero Serra in the City would not permit delay resulting from competitive
solicitation for bids for the work staff ordered done at such properties as described above,and such work was
necessary to respond to the emergency conditions on Junipero Serra in the City;
C.Competitive bidding of the emergency work ordered at on Junipero Serra in the City would have
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C.Competitive bidding of the emergency work ordered at on Junipero Serra in the City would have
jeopardized the public health,safety and welfare,and risked damage to public and private property,and
resulted in the public incurring additional expense,including,but not limited to,additional expense due to
delay and further damage,and therefore competitive bidding of such work would not produce an advantage for
the public; and
D.The emergency work ordered on Junipero Serra in the City is statutorily exempt from the
requirements of the California Environmental Quality Act (CEQA)pursuant to CEQA Guidelines Section
15269, subparagraphs (b) and (c).
NOW,THEREFORE,the City Council of the City of South San Francisco hereby does resolve,by at
least a four-fifths vote, as follows:
1.The above recitals are true and correct and hereby declared to be findings of the City Council of the
City of South San Francisco.
2.The initial emergency work performed to date by Interstate Grading &Paving,Contractor License
No.366020,expiration date November 30,2018,license class “A”,in the amount not to exceed $55,000 and
payment therefor, is hereby ratified.
3.The award of a contract or contracts for the aforementioned emergency repair work,as well as
the remaining emergency repair work,as ordered and proposed on Junipero Serra in the City is exempt from
California Public Contract Code competitive bidding requirements pursuant to California Public Contract Code
Sections 20168 and 22050 and the established common-law doctrine articulated in the case of Graydon v.
Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631.
4.A contract for additional emergency repair work is hereby awarded to Interstate Grading &
Paving of South San Francisco,CA and the City Manager is hereby authorized and directed to execute on
behalf of the City a contract with Interstate Grading &Paving of South San Francisco,CA for the performance
of the emergency work described above at contract price not to exceed $537,525 for the engineered fill of the
undermined cavity and the repair of the storm drain lines,and associated work such as removing debris,
grading and filling,as approved to form by the City Attorney and take any other related action necessary to
further the intent of this Resolution.
5.City staff is directed,in accordance with California Public Contract Code Section 22050(c)(1),
to place on future regular agendas of the City Council an item concerning the contracts authorized pursuant to
this resolution so that the City Council may determine,by at least a four-fifths vote,whether there is a need to
continue the emergency work described above or whether such work may be terminated.
6.The City Council hereby amends the 2017/18 Public Works Department operating budget by
$663,525 pursuant to budget amendment #18.023 to cover the cost of the emergency repair work.
7.This resolution shall become effective immediately.
8.Each portion of this resolution is severable.Should any portion of this resolution be adjudged to
be invalid and unenforceable by a body of competent jurisdiction,then the remaining resolution portions shall
be and continue in full force and effect,except as to those resolution portions that have been adjudged invalid.
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be and continue in full force and effect,except as to those resolution portions that have been adjudged invalid.
The City Council hereby declares that it would have adopted this resolution and each section,subsection,
clause,sentence,phrase and other portion thereof,irrespective of the fact that one or more section,subsection,
clause sentence, phrase or other portion may be held invalid or unconstitutional.
*****
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The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
1
MINOR CONSTRUCTION AGREEMENT
This Agreement (this “Agreement”) is made and entered into between the City of South San
Francisco, a municipal corporation (“City”) and Interstate Grading & Paving, Inc., (“Contractor”)
effective as of February 14, 2018 (the “Effective Date”). City and Contractor are hereinafter collectively
referred to as (the “Parties”). In consideration of their mutual covenants, the Parties hereby agree as
follows:
1. Scope of Work. Contractor shall provide the following services and/or materials (“the
Work”): Emergency Storm Drain Repair, as more particularly described in the Scope of Work, attached
hereto and incorporated herein as Exhibit A. In the event of a conflict or inconsistency between the text of
the main body of this Agreement and Exhibit A, the text of the main body of this Agreement shall prevail.
The Work shall commence on January 26, 2018, and shall be completed to the satisfaction of the City by
February 28, 2018, unless such date is extended or otherwise modified by the City in writing).
2. Payment. City shall pay Contractor an amount not to exceed: Six Hundred Sixty Three
Thousand Dollars ($663,000) for the full and satisfactory completion of the Work in accordance with the
terms and conditions of this Agreement. The amount stated above is the entire compensation payable to
Contractor for the Work performed hereunder, including all labor, materials, tools and equipment
furnished by Contractor.
(A) Invoices. City shall make monthly payments, based on invoices received, for Work
satisfactorily performed. City shall have thirty (30) days from the receipt of an invoice that
complies with all of the requirements above to pay Contractor.
(B) False Claims Act. Presenting a false or fraudulent claim for payment, including a change
order, is a violation of the California False Claims Act and may result in treble damages and a
fine of five thousand ($5,000) to ten thousand dollars ($10,000) per violation.
(C) Retention and Final Payment. City shall retain five percent (5%) of each payment,
which shall be paid within sixty (60) days after acceptance of the services, as described in Section
11, and submittal to City of a final invoice, if all services required have been satisfactorily
performed. Contractor may substitute securities or establish an escrow in lieu of retainage,
pursuant to Public Contract Code Section 22300.
3. Independent Contractor. It is understood and agreed that this Agreement is not a contract
of employment and does not create an employer-employee relationship between the City and Contractor.
At all times Contractor shall be an independent contractor and Contractor is not authorized to bind the
City to any contracts or other obligations without the express written consent of the City.
4. Indemnification. To the fullest extent permitted by law, Contractor shall indemnify,
defend (with counsel acceptable to the City), and hold harmless the City and its elected and appointed
officers, officials, employees, agents, contractors and consultants (collectively, the “City Indemnitees”)
from and against any and all liability, loss, damage, claims, expenses and costs (including, without
limitation, attorneys’ fees and costs of litigation) (collectively, “Liability”) of every nature arising out of
or in connection with Contractor’s performance of the Work or Contractor’s failure to comply with this
Agreement, except such Liability caused by the gross negligence or willful misconduct of the City
Indemnitees.
5. Excavations. In accordance with Public Contracts Code Section 714, Contractor shall
promptly notify City in writing of discovery of any material Contractor believes may be hazardous waste
as defined in Section 25117 of the Health and Safety Code or of any subsurface or latent physical
conditions at the site of any unusual nature differing materially from those generally inherent in the work
described in Exhibit A. Upon receipt of such communication, City shall promptly investigate the
conditions and if conditions do materially differ, shall issue a change order providing for additional time
or payment of additional costs.
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
2
6. Relocation of Utilities. In the event that the completion of the services described in
Exhibit A requires the removal or protection of main or trunk line public utility facilities, the City shall be
responsible for removal and protection of such public utilities pursuant to Government Code Section
4215.
7. Insurance. Prior to beginning the Work and continuing throughout the term of this
Agreement, Contractor (and any subcontractors) shall, at Contractor’s (or subcontractor’s) sole cost and
expense, furnish the City with certificates of insurance evidencing that Contractor has obtained and
maintains insurance in the following amounts:
A. Workers’ Compensation that satisfies the minimum statutory limits.
B. Commercial General Liability and Property Damage Insurance in an amount not less than
ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence, TWO MILLION
DOLLARS ($2,000,000) annual aggregate, for bodily injury, property damage, products,
completed operations and contractual liability coverage. The policy shall also include coverage for
liability arising out of the use and operation of any City-owned or City-furnished equipment used or
operated by the Contractor, its personnel, agents or subcontractors.
C. Comprehensive automobile insurance in an amount not less than ONE MILLION DOLLARS
($1,000,000) per occurrence for bodily injury and property damage including coverage for owned and
non-owned vehicles.
All insurance policies shall be written on an occurrence basis and shall name the City
Indemnitees as additional insureds. The certificates shall contain a statement of obligation on the part of
the carrier to notify City of any material change, cancellation, termination or non-renewal of the coverage
at least thirty (30) days in advance of the effective date of any such material change, cancellation,
termination or non-renewal. Further, if the Vendor’s insurance policy includes a self-insured retention
that must be paid by a named insured as a precondition of the insurer’s liability, or which has the effect of
providing that payments of the self-insured retention by others, including additional insureds or insurers
do not serve to satisfy the self-insured retention, such provisions must be modified by special
endorsement so as to not apply to the additional insured coverage required by this agreement so as to not
prevent any of the parties to this agreement from satisfying or paying the self-insured retention required to
be paid as a precondition to the insurer’s liability. Additionally, the certificates of insurance must note
whether the policy does or does not include any self-insured retention and also must disclose the
deductible. The City’s Risk Manager may waive or modify any of the insurance requirements of this
section by means of a written document.
8. General Warranties and Guarantee. Contractor warrants that: (A) All Work, Products
and/or Services are as described in this Agreement, including any exhibits incorporated, conform to all
drawings, samples, descriptions and specifications; (B) All Work, Products and/or Services delivered are
new and of good merchantable quality, free from material defects of workmanship and fit for the purpose
for which sold or provided; (C) Contractor has good title to all Products delivered and all Products
delivered are free from liens and other encumbrances; and (D) Contractor's Work will be in strict
conformity with all applicable local, state, and federal laws. For purposes of this warranty, any parts not
meeting the foregoing quality shall be deemed defective.
Contractor shall guarantee the Work to be free of defects in material and workmanship for a
period of one (1) year following the City’s acceptance of the Work (“Contractor’s Guarantee”), as
described in Section 11. As part of Contractor’s Guarantee, Contractor agrees to make, at Contractor’s
own expense, any repairs or replacements made necessary by defects in material or workmanship which
become evident within the one-year guarantee period. The Contractor’s Guarantee is effective regardless
of whether or not a maintenance bond is required by the City for this Agreement.
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
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9. Licenses. Contractor represents and warrants that Contractor possesses all licenses,
permits, and qualifications legally required for the performance of the Work. Contractor shall, at
Contractor’s sole cost and expense, maintain all such licenses, permits and qualifications in full force and
effect throughout the term of this Agreement.
10. Damage to City Facilities and Site Safety. Damage to City or public facilities or private
property caused by the Contractor or by its subcontractors during performance of the Work shall be
repaired and/or replaced in kind at no cost to the City. The worksite shall be kept clean and free of
hazards at all times during installation. After work is completed at the site, Contractor shall clean the
surrounding area to the condition prior to performance of the Work.
11. Final Inspection and Work Acceptance. All Work shall be subject to final inspection and
acceptance or rejection by the City.
12. Compliance with all Applicable Laws. Contractor shall comply with all applicable local,
state and federal laws, regulations and ordinances in the performance of this Agreement. Contractor shall
not discriminate in the provision of service or in the employment of persons engaged in the performance
of this Agreement on account of race, color, national origin, ancestry, religion, gender, marital status,
sexual orientation, age, physical or mental disability in violation of any applicable local, state or federal
laws or regulations.
13. Payment of Taxes; Tax Withholding. Contractor is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes. To be exempt
from tax withholding, Contractor must provide City with a valid California Franchise Tax Board form
590 (“Form 590”), as may be amended and such Form 590 shall be attached hereto and incorporated
herein as Exhibit B. Unless Contractor provides City with a valid Form 590 or other valid, written
evidence of an exemption or waiver from withholding, City may withhold California taxes from payments
to Contractor as required by law. Contractor shall obtain, and maintain on file for three (3) years after the
termination of this Agreement, Form 590s (or other written evidence of exemptions or waivers) from all
subcontractors. Contractor accepts sole responsibility for withholding taxes from any non-California
resident subcontractor and shall submit written documentation of compliance with Contractor’s
withholding duty to City upon request.
14. Prevailing Wage. The wages to be paid for a day's work to all classes of laborers,
workmen, or mechanics on the work contemplated by this Agreement, shall be not less than the
prevailing rate for a day’s work in the same trade or occupation in the locality within the state where the
work hereby contemplates to be performed as determined by the Director of Industrial Relations pursuant
to the Director’s authority under Labor Code Section 1770, et seq. Each laborer, worker or mechanic
employed by Contractor or by any subcontractor shall receive the wages herein provided for. The
Contractor shall pay two hundred dollars ($200), or whatever amount may be set by Labor Code Section
1775, as may be amended, per day penalty for each worker paid less than prevailing rate of per diem
wages. The difference between the prevailing rate of per diem wages and the wage paid to each worker
shall be paid by the Contractor to each worker.
The City will not recognize any claim for additional compensation because of the payment by the
Contractor for any wage rate in excess of prevailing wage rate set forth. The possibility of wage increases
is one of the elements to be considered by the Contractor.
NOTE: An error on the part of an awarding body does not relieve the Contractor from
responsibility for payment of the prevailing rate of per diem wages and penalties pursuant to Labor
Code Sections 1770-1775.
(A) Posting of Schedule of Prevailing Wage Rates and Deductions. If the schedule of
prevailing wage rates is not attached hereto pursuant to Labor Code Section 1773.2, the
Contractor shall post at appropriate conspicuous points at the site of the project a schedule
showing all determined prevailing wage rates for the various classes of laborers and
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
4
mechanics to be engaged in work on the project under this contract and all deductions, if
any, required by law to be made from unpaid wages actually earned by the laborers and
mechanics so engaged.
(B) Payroll Records. Each Contractor and subcontractor shall keep an accurate payroll record,
showing the name, address, social security number, work week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by the
Contractor in connection with the public work. Such records shall be certifies and
submitted weekly as required by Labor Code Section 1776.
15. Patents. The Contractor shall assume all costs arising from the use of patented materials,
equipment, services, or processes used on or incorporated in the Work, and agrees to indemnify and save
harmless the City of South San Francisco, the City Council, and the Engineer, and their duly authorized
representatives, for all suits at law, or actions of every nature for, or on account of the use of any patented
materials, equipment, services, or processes.
16. Dispute Resolution. Prior to initiating litigation in a court of competent jurisdiction, both
Contractor and City shall undergo alternative dispute procedures as outlined in Public Contract Code
Section 20104, et seq. The Parties also expressly agree that such procedures are incorporated as though
fully set forth in this Agreement.
17. Prevailing Party. In the event that either party to this Agreement commences any legal
action or proceeding (including but not limited to arbitration) to interpret the terms of this Agreement, the
prevailing party in such a proceeding shall be entitled to recover its reasonable attorney’s fees associated
with that legal action or proceeding.
18. Termination. City may terminate or suspend this Agreement at any time and without
cause upon written notification to Contractor. Upon receipt of notice of termination or suspension,
Contractor shall immediately stop all work in progress under this Agreement. The City's right of
termination shall be in addition to all other remedies available under law to the City.
19. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement
shall continue in full force and effect.
20. Entire Agreement. This Agreement represents the entire and integrated agreement
between the Parties. This Agreement may be modified or amended only by a subsequent written
agreement signed by both Parties.
21. Non-Liability of Officials, Employees and Agents. No officer, official, employee or
agent of City shall be personally liable to Contractor in the event of any default or breach by City or for
any amount which may become due to Contractor pursuant to this Agreement.
22. Execution in Counterparts. This Agreement may be executed in counterparts and/or by
facsimile or other electronic means, and when each Party has signed and delivered at least one such
counterpart, each counterpart shall be deemed an original, and, when taken together with other signed
counterpart, shall constitute one Agreement, which shall be binding upon and effective as to all Parties.
23. Notice. All notices and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when received if
personally delivered; (ii) when received if transmitted by telecopy, if received during normal business
hours on a business day (or if not, the next business day after delivery) provided that such facsimile is
legible and that at the time such facsimile is sent the sending Party receives written confirmation of
receipt; (iii) if sent for next day delivery to a domestic address by recognized overnight delivery service
(e.g., Federal Express); and (iv) upon receipt, if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent to the respective Parties as follows:
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
5
Contractor:
Interstate Grading & Paving, Inc.
128 So. Maple Ave
South San Francisco, CA 94080
City:
City Clerk
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date written above.
CITY: CONTRACTOR:
By:__________________________ By:__________________________
Mike Futrell H. Michael Pariani
City Manager President
APPROVED AS TO FORM:
____________________________
City Attorney
2729960.1
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
6
EXHIBIT A
SCOPE OF WORK
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
7
The City of South San Francisco
Minor Construction Agreement
[Rev:11/14/2016]
8
EXHIBIT B
FORM 590
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-1221 Agenda Date:2/14/2018
Version:1 Item #:5.
Report regarding a resolution approving a consulting services agreement with SWA Group of San Francisco,
California for the Grand Avenue Streetscape Project (Project No.st1801)in an amount not to exceed $350,000,
authorizing the City Manager to execute the agreement,and authorizing a total budget of $367,500.(Patrick
Caylao, Associate Civil Engineer)
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving a consulting services agreement
with SWA Group of San Francisco,California for the Grand Avenue Streetscape Project (Project No.
st1801)in an amount not to exceed amount from $350,000,authorizing the City Manager to execute the
agreement, and authorizing a total budget of $367,500.
BACKGROUND/DISCUSSION
The adopted Downtown Station Area Specific Plan (“Plan”)identifies Grand Avenue as a major component in
revitalizing the City of South San Francisco’s (“City”)Downtown area.The Plan’s vision for Grand Avenue is
to create an attractive and lively pedestrian environment,invigorate the existing and new businesses,and
improve safety and connectivity to and from the Downtown area,while enhancing the unique character of
Downtown and the City.The Plan provided schematic details of a realignment and redesign of Grand Avenue
that will serve as the basis for this request to City Council.The Grand Avenue Streetscape Project (“Project”)
presented will provide architectural and engineering details on the necessary improvements that will fully
implement the Plan vision. The project scope focuses on:
1.The intersection of Airport Boulevard and Grand Avenue to provide a safe pedestrian crossing between
the Downtown area and the new Caltrain Station western plaza; and
2.A community engaged design that details streetscape strategy for Grand Avenue.This will include (but
is not limited to)wider sidewalks and sidewalk treatments,new bike lanes,a landscaping palette for
plantings and street furniture,and guidance for street and pedestrian lighting-once again creating a
vibrant and successful community resource and source of pride.
Additionally,the Project is intended to connect Grand Avenue with the new Caltrain Station Plaza,both in
function and character.
On November 25,2015,Engineering Staff advertised a request for proposal (“RFP”)for consulting services for
the Caltrain Station Plaza and Grand Avenue Streetscape projects.After reviewing the submitted proposals,
interviews were held on January 20 &21,2016 for the four proposing consultant firms of SWA Group,Gates
&Associates,UDLA,and RHAA Landscape Architects.The interview panel consisted of an associate planner,
City of South San Francisco Printed on 2/8/2018Page 1 of 2
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File #:17-1221 Agenda Date:2/14/2018
Version:1 Item #:5.
&Associates,UDLA,and RHAA Landscape Architects.The interview panel consisted of an associate planner,
a principal planner,an ECD Coordinator,a Park and Recreation Program Manager,and two associate engineers
from the Engineering Division.Staff selected SWA Group (“SWA”)to provide consulting services for both
projects.On March 2016,City Staff reviewed SWA’s scope of services and instructed SWA to emphasize on the
Caltrain Station Plaza portion of the project scope and defer the Grand Avenue Streetscape project at a later
time in order to coordinate with the Joint Powers Board’s (“JPB”)project timeline.SWA revised their proposal
to reflect JPB’s advertisement and award schedule,prioritizing the deliverables for the Caltrain Station Plaza
Project.
On May 2017,SWA completed design of the Caltrain Station Plaza Project.On June 2017,the final bid
documents were submitted to JPB.Upon completion of the JPB work,SWA could start on the Grand Avenue
Streetscape Project.The City is now proceeding with the Grand Avenue Streetscape portion of the project,
which was originally included in the scope of the RFP.
On November 14,2017,SWA submitted a revised cost proposal for the Grand Avenue Streetscape Project to
reflect current conditions,in an amount not to exceed $350,000.The scope of services includes the preparation
of a Master Plan summarizing community and City feedback,site analysis and evaluation,and a strategic plan
moving forward into the design phase.The design phase will include the preparation of 100%construction bid
documents consistent with the Downtown Station Area Specific Plan.
The project budget is:
SWA Consulting Services Contract $350,000
Engineering Administration $ 17,500
Total design budget $367,500
Engineering staff will also identify opportunities for grant funding for construction during the design phase.
FUNDING
This project is included in the City of South San Francisco’s Fiscal Year 2017-18 Capital Improvement
Program (project no. st1801) with sufficient funds allocated to cover the project cost.
CONCLUSION
Staff recommends approving the consulting services agreement with SWA Group for the Grand Avenue
Streetscape Project to deliver construction bid document package that will be ready for grant funding and
advertisement for construction.This will also take the City one step closer to its vision of showcasing Grand
Avenue as the heart of South San Francisco.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-1222 Agenda Date:2/14/2018
Version:1 Item #:5a.
Resolution approving a consulting services agreement with SWA Group of San Francisco,California for the
Grand Avenue Streetscape Project in an amount not to exceed $350,000,authorizing the City Manager to
execute the agreement, and authorizing a budget of $367,500.
WHEREAS,the adopted Downtown Station Area Plan (“Plan”)identifies Grand Avenue as a major component
in revitalizing the City’s Downtown area; and
WHEREAS,the Plan’s visions for Grand Avenue is to create an attractive and lively pedestrian environment,
invigorate the existing and new businesses,and improve safety and connectivity to and from the Downtown
Area, while enhancing the unique character of Downtown and the City; and
WHEREAS,the Plan provided schematic details of a realignment and redesign of Grand Avenue that will serve
as a basis for this request to City Council; and
WHERAS,the Grand Avenue Streetscape Project (“Project”)presented will provide architectural and
engineering details on the necessary improvements that will fully implement the Plan vision; and
WHEREAS,the proposal focuses on the intersection of Airport Boulevard and Grand Avenue to provide a safe
pedestrian crossing between the Downtown area and the new Caltrain Station western plaza; and
WHEREAS,the proposal also focuses on a community engaged design that details the streetscape strategy for
Grand Avenue; and
WHEREAS,the Project intends to connect Grand Avenue with the new Caltrain Station Plaza,both in function
and character; and
WHEREAS,on November 25,2015,Engineering Staff advertised a request for proposal (RFP)for consulting
services for the Caltrain Station Plaza and Grand Avenue Streetscape projects; and
WHEREAS,after City Staff reviewed four proposals and interviewed four consultants,Staff selected SWA
Group (“SWA”) to provide consulting services for both projects; and
WHEREAS,on March 2016,City Staff reviewed SWA’s scope of services and instructed SWA to revise their
proposal to match up with the Joint Powers Board (JPB)advertisement and award schedule prioritizing the
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File #:17-1222 Agenda Date:2/14/2018
Version:1 Item #:5a.
proposal to match up with the Joint Powers Board (JPB)advertisement and award schedule prioritizing the
deliverables for the Caltrain Station Project; and
WHEREAS, on May 2017, SWA completed design; and
WHEREAS, on June 2017, final bid documents were submitted to JPB; and
WHEREAS,on November 14,2017,SWA submitted a cost proposal (“Proposal”)for consulting services for
the Project, in an amount not to exceed $350,000; and
WHEREAS, the scope of services of the Proposal, includes a master planning scope and design phase; and
WHEREAS,staff is pursuing an amendment to the original executed agreement,to include SWA scope of
services to the Project; and
WHEREAS,the Project is included in the City of South San Francisco’s Fiscal Year 2017-18 Capital
Improvement Program (Project No. st1801).
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco that the City
Council hereby approves a consulting services agreement,attached herewith as Exhibit A,with SWA Group of
San Francisco,California in an amount not to exceed $350,000,conditioned on the SWA Group’s timely
execution of the consulting services agreement and submission of all required documents,including but not
limited to, certificates of insurance and endorsements, in accordance with the Project documents.
BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco authorizes the Finance
Department to establish the Project budget consistent with the information contained in the staff report.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreement and any
other related documents on behalf of the City upon timely submission by SWA Group’s signed contract and all
other documents, subject to approval as to form by the City Attorney.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take any other required actions
consistent with the intent of this resolution, that do not materially increase the City’s obligations.
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CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF SOUTH SAN FRANCISCO AND
SWA GROUP
THIS AGREEMENT for consulting services is made by and between the City of South San
Francisco (“City”) and SWA Group (“Consultant”) (together sometimes referred to as the “Parties”) as of
February 14, 2018 (the “Effective Date”).
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached hereto and incorporated herein
as Exhibit A, at the time and place and in the manner specified therein. In the event of a conflict in or
inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall
end on December 31, 2019, the date of completion specified in Exhibit A, and Consultant
shall complete the work described in Exhibit A on or before that date, unless the term of
the Agreement is otherwise terminated or extended, as provided for in Section 8. The
time provided to Consultant to complete the services required by this Agreement shall not
affect the City’s right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all work required by this Agreement
and shall conform to the standards of quality normally observed by a person practicing in
Consultant's profession.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance
provided in Sections 1.1 and 1.2 above and to satisfy Consultant’s obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed Three
Hundred Fifty Thousand Dollars ($350,000), notwithstanding any contrary indications that may be
contained in Consultant’s proposal, for services to be performed and reimbursable costs incurred under this
Agreement. In the event of a conflict between this Agreement and Consultant’s proposal, attached as
Exhibit A, or Consultant’s compensation schedule, attached as Exhibit B, regarding the amount of
compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this
Agreement at the time and in the manner set forth herein. The payments specified below shall be the only
payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall
submit all invoices to City in the manner specified herein. Except as specifically authorized by City in
writing, Consultant shall not bill City for duplicate services performed by more than one person.
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant’s estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the Parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once per month during
the term of this Agreement, based on the cost for all services performed and reimbursable
costs incurred prior to the invoice date. Invoices shall contain all the following information:
Serial identifications of progress bills (i.e., Progress Bill No. 1 for the first invoice,
etc.);
The beginning and ending dates of the billing period;
A task summary containing the original contract amount, the amount of prior
billings, the total due this period, the balance available under the Agreement, and
the percentage of completion;
At City’s option, for each work item in each task, a copy of the applicable time
entries or time sheets shall be submitted showing the name of the person doing
the work, the hours spent by each person, a brief description of the work, and
each reimbursable expense;
The total number of hours of work performed under the Agreement by each
employee, agent, and subcontractor of Consultant performing services hereunder;
Consultant shall give separate notice to the City when the total number of hours
worked by Consultant and any individual employee, agent, or subcontractor of
Consultant reaches or exceeds eight hundred (800) hours within a twelve (12)-
month period under this Agreement and any other agreement between Consultant
and City. Such notice shall include an estimate of the time necessary to complete
work described in Exhibit A and the estimate of time necessary to complete work
under any other agreement between Consultant and City, if applicable.
The amount and purpose of actual expenditures for which reimbursement is
sought;
The Consultant’s signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City
shall have thirty (30) days from the receipt of an invoice that complies with all of the
requirements above to pay Consultant. Each invoice shall include all expenses and
actives performed during the invoice period for which Consultant expects to receive
payment.
2.3 Final Payment. City shall pay the five percent (5%) of the total sum due pursuant to this
Agreement within sixty (60) days after completion of the services and submittal to City of a
final invoice, if all services required have been satisfactorily performed.
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement. In no
event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the compensation schedule attached hereto and incorporated
herein as Exhibit B.
2.6 Reimbursable Expenses. The following constitute reimbursable expenses authorized by
this Agreement Cost of:
a. copies of drawings, specifications, reports and cost estimates; xerography and
photographic reproduction of drawings and other documents furnished or
prepared in connection with the work of this contract.
b. Cost of commercial carrier and public transportation, lodging, car rental and
parking, subsistence and out-of-pocket expenses. Private automobile travel at
the IRS-allowable rate at the time of traveling.
c. Cost of postage and shipping expenses other than first class mail.
d. Long distance telephone charges.
e. Photographic services.
f. Cost of models, special renderings, promotional photography, special process
printing, special equipment, special printed reports or publications, maps and
documents approved in advance by Client.
g. Fees for additional consultants retained with the approval of Client.
Reimbursable expenses shall not exceed Nine Thousand Three Hundred Fifty Dollars
($9,350.00). Expenses not listed above are not chargeable to City. Reimbursable
expenses are included in the total amount of compensation provided under Section 2 of
this Agreement that shall not be exceeded.
2.7 Payment of Taxes; Tax Withholding. Consultant is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes. To
be exempt from tax withholding, Consultant must provide City with a valid California
Franchise Tax Board form 590 (“Form 590”), as may be amended and such Form 590
shall be attached hereto and incorporated herein as Exhibit C. Unless Consultant provides
City with a valid Form 590 or other valid, written evidence of an exemption or waiver from
withholding, City may withhold California taxes from payments to Consultant as required
by law. Consultant shall obtain, and maintain on file for three (3) years after the termination
of this Agreement, Form 590s (or other written evidence of exemptions or waivers) from all
subcontractors. Consultant accepts sole responsibility for withholding taxes from any non-
California resident subcontractor and shall submit written documentation of compliance
with Consultant’s withholding duty to City upon request.
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
2.10 False Claims Act. Presenting a false or fraudulent claim for payment, including a change
order, is a violation of the California False Claims Act and may result in treble damages
and a fine of five thousand ($5,000) to ten thousand dollars ($10,000) per violation.
2.11 Prevailing Wage. Where applicable, the wages to be paid for a day's work to all classes
of laborers, workmen, or mechanics on the work contemplated by this Agreement, shall be
not less than the prevailing rate for a day’s work in the same trade or occupation in the
locality within the state where the work hereby contemplates to be performed as
determined by the Director of Industrial Relations pursuant to the Director’s authority under
Labor Code Section 1770, et seq. Each laborer, worker or mechanic employed by
Consultant or by any subcontractor shall receive the wages herein provided for. The
Consultant shall pay two hundred dollars ($200), or whatever amount may be set by Labor
Code Section 1775, as may be amended, per day penalty for each worker paid less than
prevailing rate of per diem wages. The difference between the prevailing rate of per diem
wages and the wage paid to each worker shall be paid by the Consultant to each worker.
An error on the part of an awarding body does not relieve the Consultant from
responsibility for payment of the prevailing rate of per diem wages and penalties pursuant
to Labor Code Sections 1770 1775. The City will not recognize any claim for additional
compensation because of the payment by the Consultant for any wage rate in excess of
prevailing wage rate set forth. The possibility of wage increases is one of the elements to
be considered by the Consultant.
a. Posting of Schedule of Prevailing Wage Rates and Deductions. If the schedule of
prevailing wage rates is not attached hereto pursuant to Labor Code Section 1773.2, the
Consultant shall post at appropriate conspicuous points at the site of the project a
schedule showing all determined prevailing wage rates for the various classes of laborers
and mechanics to be engaged in work on the project under this contract and all
deductions, if any, required by law to be made from unpaid wages actually earned by the
laborers and mechanics so engaged.
b. Payroll Records. Each Consultant and subcontractor shall keep an accurate
payroll record, showing the name, address, social security number, work week, and the
actual per diem wages paid to each journeyman, apprentice, worker, or other employee
employed by the Consultant in connection with the public work. Such records shall be
certified and submitted weekly as required by Labor Code Section 1776.”
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and
amounts of insurance listed below against claims for injuries to persons or damages to property that may
arise from or in connection with the performance of the work hereunder by the Consultant and its agents,
representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall
provide proof satisfactory to City of such insurance that meets the requirements of this section and under
forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to
the City. Consultant shall maintain the insurance policies required by this section throughout the term of
this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not
allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance
required herein for the subcontractor(s). Consultant shall maintain all required insurance listed herein for
the duration of this Agreement.
4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers’
Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of
not less than $1,000,000 per accident. In the alternative, Consultant may rely on a self-
insurance program to meet those requirements, but only if the program of self-insurance
complies fully with the provisions of the California Labor Code. Determination of whether a
self-insurance program meets the standards of the Labor Code shall be solely in the
discretion of the Contract Administrator, as defined in Section 10.9. The insurer, if
insurance is provided, or the Consultant, if a program of self-insurance is provided, shall
waive all rights of subrogation against the City and its officers, officials, employees, and
volunteers for loss arising from work performed under this Agreement.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) per
occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be
performed under this Agreement or the general aggregate limit shall be at least
twice the required occurrence limit. Such coverage shall include but shall not be
limited to, protection against claims arising from bodily and personal injury,
including death resulting therefrom, and damage to property resulting from
activities contemplated under this Agreement, including the use of owned and non-
owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 or GL 0002 (most recent editions) covering comprehensive General
Liability Insurance and Services Office form number GL 0404 covering Broad
Form Comprehensive General Liability on an “occurrence” basis. Automobile
coverage shall be at least as broad as Insurance Services Office Automobile
Liability form CA 0001 (most recent edition). No endorsement shall be attached
limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
a. The Insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy
shall not affect coverage provided to City and its officers, employees,
agents, and volunteers.
4.3 Professional Liability Insurance.
4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain
for the period covered by this Agreement professional liability insurance for
licensed professionals performing work pursuant to this Agreement in an amount
not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed
professionals’ errors and omissions. Any deductible or self-insured retention shall
not exceed ONE HUNDRED AND FIFTY THOUSAND DOLLARS ($150,000) per
claim.
4.3.2 Claims-made limitations. The following provisions shall apply if the professional
liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five (5) years after completion of the Agreement or
the work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant shall purchase an extended period coverage
for a minimum of five (5) years after completion of work under this
Agreement or the work. The City shall have the right to exercise, at the
Consultant’s sole cost and expense, any extended reporting provisions of
the policy, if the Consultant cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
for review prior to the commencement of any work under this Agreement.
4.3.3 Additional Requirements. A certified endorsement to include contractual liability
shall be included in the policy
4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with complete copies of all policies delivered to
Consultant by the insurer, including complete copies of all endorsements attached
to those policies. All copies of policies and certified endorsements shall show the
signature of a person authorized by that insurer to bind coverage on its behalf. If
the City does not receive the required insurance documents prior to the Consultant
beginning work, this shall not waive the Consultant’s obligation to provide them.
The City reserves the right to require complete copies of all required insurance
policies at any time.
4.4.3 Notice of Reduction in or Cancellation of Coverage. A certified endorsement
shall be attached to all insurance obtained pursuant to this Agreement stating that
coverage shall not be suspended, voided, canceled by either party, or reduced in
coverage or in limits, except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City. In the event that any
coverage required by this section is reduced, limited, cancelled, or materially
affected in any other manner, Consultant shall provide written notice to City at
Consultant’s earliest possible opportunity and in no case later than ten (10)
working days after Consultant is notified of the change in coverage.
4.4.4 Additional insured; primary insurance. City and its officers, employees, agents,
and volunteers shall be covered as additional insureds with respect to each of the
following: liability arising out of activities performed by or on behalf of Consultant,
including the City’s general supervision of Consultant; products and completed
operations of Consultant, as applicable; premises owned, occupied, or used by
Consultant; and automobiles owned, leased, or used by the Consultant in the
course of providing services pursuant to this Agreement. The coverage shall
contain no special limitations on the scope of protection afforded to City or its
officers, employees, agents, or volunteers.
A certified endorsement must be attached to all policies stating that coverage is
primary insurance with respect to the City and its officers, officials, employees and
volunteers, and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
4.4.5 Deductibles and Self-Insured Retentions. Consultant shall disclose to and
obtain the approval of City for the self-insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
Further, if the Consultant’s insurance policy includes a self-insured retention that
must be paid by a named insured as a precondition of the insurer’s liability, or
which has the effect of providing that payments of the self-insured retention by
others, including additional insureds or insurers do not serve to satisfy the self-
insured retention, such provisions must be modified by special endorsement so as
to not apply to the additional insured coverage required by this agreement so as to
not prevent any of the parties to this agreement from satisfying or paying the self-
insured retention required to be paid as a precondition to the insurer’s liability.
Additionally, the certificates of insurance must note whether the policy does or
does not include any self-insured retention and also must disclose the deductible.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.4.7 Wasting Policy. No insurance policy required by Section 4 shall include a
“wasting” policy limit.
4.4.8 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverage, scope, limits, and forms of
such insurance are either not commercially available, or that the City’s interests
are otherwise fully protected.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
b. Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
c. Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.
5.1 Separate Professional Liability (PL) Indemnity. As respect to the performance of professional
services, Consultant agrees to indemnify and hold harmless City, its officials, officers, and employees,
(collectively, the “City Indemnitees”), from and against any damages, losses, liabilities, judgments,
settlements, expenses, and costs (including reasonable and necessary attorneys' fees, costs and
expenses) to the extent caused by Consultant's negligent acts, errors or omissions or willful misconduct in
the performance of services under this Agreement and anyone for whom Consultant is legally liable.
Consultant has no obligation to pay for any of City Indemnitees defense related cost prior to a final
determination of liability, or to pay any amount that exceeds Consultant’s finally determined percentage of
liability based upon the comparative fault of Consultant.
5.2 Separate Other than Professional Liability (OPL) Indemnity. As respect to its operations, other than
the performance of professional services, Consultant agrees to indemnify, hold harmless and defend City,
with counsel selected in reasonable consultation with City, the City Indemnitees, from and against any
damages, liabilities, judgments, settlements, costs, claims, demands, actions, suits, losses, and expenses
(including reasonable and necessary attorneys' fees, costs and expenses) arising out of the death or bodily
injury to any person or destruction or damage to any property, to the extent caused by Consultant's
negligent acts, errors or omissions or willful misconduct in the performance of services under this
Agreement and anyone for whom Consultant is legally liable.
5.3 Insurance Not in Place of Indemnity. Acceptance by City of insurance certificates and
endorsements required under this Agreement does not relieve Consultant from liability
under this indemnification and hold harmless clause. This indemnification and hold
harmless clause shall apply to any damages or claims for damages whether or not such
insurance policies shall have been determined to apply. By execution of this Agreement,
Consultant acknowledges and agrees to the provisions of this Section and that it is a
material element of consideration.
5.4 PERS Liability. In the event that Consultant or any employee, agent, or subcontractor of
Consultant providing services under this Agreement is determined by a court of
competent jurisdiction or the California Public Employees Retirement System (PERS) to
be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify,
defend, and hold harmless City for the payment of any employee and/or employer
contributions for PERS benefits on behalf of Consultant or its employees, agents, or
subcontractors, as well as for the payment of any penalties and interest on such
contributions, which would otherwise be the responsibility of City.
5.5 Third Party Claims. With respect to third party claims against the Consultant, the
Consultant waives any and all rights of any type of express or implied indemnity against
the Indemnitees.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the
right to control Consultant only insofar as the results of Consultant's services rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however, otherwise City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
all claims to, any compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all federal, state and local laws and regulations applicable to the performance of the work
hereunder. Consultant’s failure to comply with such law(s) or regulation(s) shall constitute
a breach of contract.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its employees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals, including from City, of whatsoever nature that are legally required to
practice their respective professions. Consultant represents and warrants to City that
Consultant and its employees, agents, any subcontractors shall, at their sole cost and
expense, keep in effect at all times during the term of this Agreement any licenses,
permits, and approvals that are legally required to practice their respective professions. In
addition to the foregoing, Consultant and any subcontractors shall obtain and maintain
during the term of this Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person’s race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any
employee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Consultant under this
Agreement. Consultant shall comply with all applicable federal, state, and local laws,
policies, rules, and requirements related to equal opportunity and nondiscrimination in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations required
of Consultant thereby.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement for cause upon thirty (30) days’ written notice to
City and shall include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services
performed to the effective date of notice of termination; City, however, may condition
payment of such compensation upon Consultant delivering to City all materials described
in Section 9.1.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require
Consultant to execute a written amendment to this Agreement, as provided for herein.
Consultant understands and agrees that, if City grants such an extension, City shall have
no obligation to provide Consultant with compensation beyond the maximum amount
provided for in this Agreement. Similarly, unless authorized by the Contract Administrator,
City shall have no obligation to reimburse Consultant for any otherwise reimbursable
expenses incurred during the extension period.
8.3 Amendments. The Parties may amend this Agreement only by a writing signed by all the
Parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant’s unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not assign or subcontract any
portion of the performance contemplated and provided for herein, other than to the
subcontractors noted in the proposal, without prior written approval of the Contract
Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City’s remedies shall include, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. Provided that City has paid
Consultant for its services or portion of such services pursuant to this Agreement, City
shall own all (or the portion of such that has been paid for at termination or expiration of
this Agreement) reports, data, maps, models, charts, studies, surveys, photographs,
memoranda, plans, studies, specifications, records, files, or any other documents or
materials, in electronic or any other form, that Consultant prepares or obtains pursuant to
this Agreement and that relate to the matters covered hereunder shall be the property of
the City. Consultant hereby agrees to deliver those documents to the City upon
termination of the Agreement. It is understood and agreed that the documents and other
materials, including but not limited to those described above, prepared pursuant to this
Agreement are prepared specifically for the City and are not necessarily suitable for any
future or other use. City and Consultant agree that, until final approval by City, all data,
plans, specifications, reports and other documents are confidential and will not be released
to third parties without prior written consent of both Parties except as required by law.
9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of three (3) years, or for any longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds ten thousand ($10,000.00), the Agreement shall
be subject to the examination and audit of the State Auditor, at the request of City or as
part of any audit of the City, for a period of three (3) years after final payment under the
Agreement.
9.4 Records Submitted in Response to an Invitation to Bid or Request for Proposals. All
responses to a Request for Proposals (RFP) or invitation to bid issued by the City become
the exclusive property of the City. At such time as the City selects a bid, all proposals
received become a matter of public record, and shall be regarded as public records, with
the exception of those elements in each proposal that are defined by Consultant and
plainly marked as “Confidential,” "Business Secret" or “Trade Secret."
The City shall not be liable or in any way responsible for the disclosure of any such
proposal or portions thereof, if Consultant has not plainly marked it as a "Trade Secret" or
"Business Secret," or if disclosure is required under the Public Records Act.
Although the California Public Records Act recognizes that certain confidential trade secret
information may be protected from disclosure, the City may not be in a position to establish
that the information that a prospective bidder submits is a trade secret. If a request is
made for information marked "Trade Secret" or "Business Secret," and the requester takes
legal action seeking release of the materials it believes does not constitute trade secret
information, by submitting a proposal, Consultant agrees to indemnify, defend and hold
harmless the City, its agents and employees, from any judgment, fines, penalties, and
award of attorneys’ fees awarded against the City in favor of the party requesting the
information, and any and all costs connected with that defense. This obligation to
indemnify survives the City's award of the contract. Consultant agrees that this
indemnification survives as long as the trade secret information is in the City's possession,
which includes a minimum retention period for such documents.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including arbitration or an
action for declaratory relief, to enforce or interpret the provision of this Agreement, the
prevailing Party shall be entitled to reasonable attorneys’ fees in addition to any other relief
to which that Party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose. For purposes of this Agreement, a “prevailing
Party” shall be any party whose position in regard to enforcement or interpretation of this
Agreement is adjudged to be controlling by the relevant court or deciding body. There shall
be no “prevailing Party” if a complaint is voluntarily dismissed prior to trial or settled before
or after the trial has begun.
10.2 Venue. In the event that either Party brings any action against the other under this
Agreement, the Parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County of San Mateo or in the United States District Court
for the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the Parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000, et seq.
Consultant shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090, et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve (12) months,
Consultant warrants that it did not participate in any manner in the forming of this
Agreement. Consultant understands that, if this Agreement is made in violation of
Government Code §1090, et seq., the entire Agreement is void and Consultant will not be
entitled to any compensation for services performed pursuant to this Agreement, including
reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code § 1090 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by Patrick Caylao
("Contract Administrator"). All correspondence shall be directed to or through the Contract
Administrator or his or her designee.
10.10 Notices. All notices and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when
received if personally delivered; (ii) when received if transmitted by telecopy, if received
during normal business hours on a business day (or if not, the next business day after
delivery) provided that such facsimile is legible and that at the time such facsimile is sent
the sending Party receives written confirmation of receipt; (iii) if sent for next day delivery
to a domestic address by recognized overnight delivery service (e.g., Federal Express);
and (iv) upon receipt, if sent by certified or registered mail, return receipt requested. In
each case notice shall be sent to the respective Parties as follows:
Consultant
SWA Group
301 Battery Street, 2 Mezzanine
San Francisco, CA 94111-3212
Attn: Rene Bihan
City
Notices: Invoices:
City Clerk Engineering
City of South San Francisco City of South San Francisco
400 Grand Avenue 315 Maple Ave
South San Francisco, CA 94080 South San Francisco, CA 94080
10.11 Professional Seal. Where applicable in the determination of the contract administrator,
the first page of a technical report, first page of design specifications, and each page of
construction drawings shall be stamped/sealed and signed by the licensed professional
responsible for the report/design preparation. The stamp/seal shall be in a block entitled
"Seal and Signature of Registered Professional with report/design responsibility," as in the
following example.
_________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.
10.12 Integration. This Agreement, including the scope of work attached hereto and
incorporated herein as Exhibits A, B, and C represents the entire and integrated
agreement between City and Consultant and supersedes all prior negotiations,
representations, or agreements, either written or oral pertaining to the matters herein.
Exhibit A Scope of Services
Exhibit B Compensation Schedule
Exhibit C Form 590
10.13 Counterparts. This Agreement may be executed in counterparts and/or by facsimile or
other electronic means, and when each Party has signed and delivered at least one such
counterpart, each counterpart shall be deemed an original, and, when taken together with
other signed counterpart, shall constitute one Agreement, which shall be binding upon and
effective as to all Parties.
10.14 Construction. The headings in this Agreement are for the purpose of reference only and
shall not limit or otherwise affect any of the terms of this Agreement. The parties have had
an equal opportunity to participate in the drafting of this Agreement; therefore any
construction as against the drafting party shall not apply to this Agreement.
10.15 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the
Parties hereto with no intent to benefit any non-signatory third parties.
[SIGNATURES ON FOLLOWING PAGE]
The Parties have executed this Agreement as of the Effective Date.
CITY OF SOUTH SAN FRANCISCO CONSULTANT
____________________________ ______________________________
Mike Futrell, City Manager Rene Bihan, Contracting Agent
Attest:
____________________________
City Clerk
Approved as to Form:
____________________________
City Attorney
2729964.1
EXHIBIT A
SCOPE OF SERVICES
I. SCOPE OF SERVICES: Master Planning Phase
A. Approach Statement
1. For the purpose of the community process, SWA will prepare materials
representing the complete project, including the cross walk connection to the
new South San Francisco Caltrain Station and extending down Grand Avenue
to Spruce Avenue.
2. Following the community process, the project will proceed to the second
scope of services, Phase 1 Construction Documents, see item II.
a. The Grand Avenue Streetscape Master Plan final deliverable will be
submitted as a Master Plan document, with a summary of the
community process, final illustrative plan, visualizations, and
descriptions of materials, furnishings, planting, and key illustrative
sections.
B. Community Process Phase (8 weeks)
1. Grand Avenue Site Analysis and Evaluation
a. On the basis of background studies, on-site investigation, base maps
and special information provided by the Client and other project
consultants, SWA may consider and evaluate the following as
relevant for project scope:
i. Property configuration;
ii. Relationships to adjoining land and parcels;
iii. Access potentials;
iv. Limitations in the form of easements, zoning controls,
assessment districts;
v. Special districts;
vi. Public facilities and schools;
vii. Existing development on the site;
viii. Views, visual characteristics and scenic factors;
ix. Utility location, availability and easements;
x. Recreation and open space;
xi. Archaeological or historic information;
xii. Topography, slopes and orientation;
xiii. Soils and geological factors;
xiv. Hydrology, drainage patterns;
xv. New development;
xvi. Tree cover and vegetation;
xvii. Climate and wind factors;
xviii. Wildlife and habitat considerations;
b. SWA will summarize significant data from the above by (a) composite
map(s), diagram(s) (and supplementary visual displays) to indicate
the landscape and environmental opportunities and limitations of the
site.
c. At this stage, the interaction of the above site characteristics with the
development program and expectations for use of the site will be
identified.
d. Client is to make previous studies completed available to SWA.
2. Grand Avenue Programing and Fit and Finish Options
a. Following analysis, SWA will develop a program plan for Grand Ave
based on the street scape design as outlined in the specific plan.
i. The program plan will include recommendations on planting
areas, pocket parks/paseos, zones for siting, parklet
opportunities, and public and pedestrian spaces.
ii. The program plan will identify opportunity zones for event
spaces and temporary street closures, such as in front of City
Hall
b. SWA will build participation exercises that provide an array of
pavement material options, site furnishings, lighting, and planting,
including
i. Preferred materials Board
ii. Furnishing Families – 3 schemes of furnishings for community
to review and vote
iii. Note, these materials will be encompassing of the full site
scope of work
c. SWA will produce an illustrative plan for the full scope of work
d. SWA will produce key renderings to communicate material, furnishing,
and lighting options.
3. Community Meetings
a. Community Meeting #1
i. Project introduction, sharing the approved Specific Plan
proposal and back grounds studies. Listening Exercises
(Focused on needs, interests, program preferences, and
personal stories) Materials, colors, lighting and furniture
preference surveys. Online survey to be curated up to the
next meeting.
b. Community Meeting #2
i. Unveiling of preliminary Design with material and color
options as part of presentation. Reveal results of Surveys,
share final renderings of preferred design and summary of the
Grand Avenue Streetscape Master Plan document. Question
and Answer period. If desired, an online survey can be
hosted afterwards for broader feedback.
4. Coordination, Packaging and submission
a. This scope includes up to (2) additional meetings for checking in with
relevant city agencies and or key stakeholders, and up to (1)
additional meetings for City Council approval.
b. The final presentation will be provided to the City as a pdf, and all
renderings as jpg files.
c. The Caltrain Station and Grand Avenue Streetscape Master Plan
documents will be provided as an 11x17 pdf.
5. Subconsultants
a. SWA will retain and manage the following subconsultants for the
Master Planning Phase:
i. Civil Engineering
ii. Survey (MP scope)
iii. Lighting Design
b. Managed subconsultants scope and fee proposals are included in
Appendix B.
II. SCOPE OF SERVICES: Phase 1 Construction Documents (20 weeks)
The scope of services shall include:
A. SWA shall provide design development and construction documentation for the
following scope items for the area identified in Appendix C as Phase 1 Construction
Documents:
1. Finish grading and surface drainage of pedestrian pavements and planting
areas.
2. Pedestrian pavements.
3. Landscape walls, steps, railings and related site structural elements not a part
of the buildings (if any).
4. Fences, decks and seating devices (if any).
5. Site furniture including planter pots, trash receptacles and drinking fountains (if
any).
6. Coordinate the selection, location and mounting and structural details of
fixtures for site lighting. (Site lighting photometric studies, and circuitry are
included under lighting and electrical engineering subconsultant proposals
included in Appendix B.)
7. Planting and soil amendment.
8. Irrigation downstream from mainline point-of-connection.
B. If required, SWA will retain and direct the services of the following professional
consultants (Fees for such services are not included in this contract and shall be the
subject of future agreement):
1. Geotechnical engineer to prepare a geotech report.
2. Environmental graphics (signage design).
C. Subconsultants
1. SWA will retain and manage the following subconsultants for the Master
Planning Phase:
a. Civil Engineering
b. Survey (CD scope)
c. Lighting Design
d. Electrical Engineering
e. Irrigation Design
f. Structural Engineering
g. Managed subconsultants scope and fee proposals are included in
Appendix B.
III. PROCEDURE
A. Design Development (8 weeks)
1. Upon Client's authorization to commence design development, SWA shall
prepare design development drawings and coordinate other subconsultant’s
drawings for the Phase 1 scope. The design development plans will define the
character and essentials of the project, including selection of materials.
2. SWA shall assist Client in filing the appropriate plans and documents which
are required to secure the necessary design approvals from the various
governmental agencies having jurisdiction over the project, but Client shall be
solely responsible for securing all such approvals.
3. Submittal of (1) 100% DD Plans and drawings
B. Construction Documentation (12 weeks)
1. Upon Client's approval of the design development plans, SWA will develop
working drawings and technical sections of specifications to construct the
work. Technical sections of specifications shall be prepared in Construction
Specifications Institute (CSI) MasterFormat. Client shall be responsible for
Bidding and Contract Requirements and General Requirements divisions of
the specifications.
2. SWA shall prepare working drawings and technical sections of specifications
to reasonably conform to applicable codes and regulations of governmental
bodies having jurisdiction over the work at the time of preparation.
3. In developing working drawings and technical sections of specifications, SWA
shall use its best efforts to coordinate its services with those of other
consultants and to maintain a construction budget in accordance with the
preliminary design estimate of probable construction cost accepted by Client
at the end of the preliminary design phase. When the final estimate of
probable construction cost is one hundred ten percent (110%) of the
preliminary design budget estimate, or less, the final estimate will be
acceptable to Client.
4. Submittal of (3) milestones including 50% CD, 90% CD, and 100% CD.
IV. DEVELOPMENT BUDGETS
A. As a part of Landscape Master Plan Phase, a proposed development budget for all
items of work under the Scope of Services will be established and approved prior to
initiation of Phase 1 construction documents
B. This development budget shall be revised and approved at the completion of Design
Development Phase and Working Drawing Phase.
C. In the event that this development budget is reduced or increased by more than 10%
between the time of approval of the landscape design development phase and the
time of award of a construction contract, cost of modification of drawings and
specifications to meet the changed project budget shall be considered Additional
Services.
V. DESIGN APPROVAL
Anthony Rozzi has been designated as the person responsible for design direction to SWA
for this project and has the authority for design approval. In the event that the design, as
approved by Anthony Rozzi is rejected by others, and re-design is required, such re-design
services shall be compensated as Additional Services.
VI. MEETINGS AND SITE VISITS
This proposal includes Professional Service time for up:
Master Planning Phase
Community Design Workshops 2
Agency/Stakeholder 2
City Council 1
Phase 1 Construction Documents
OAC conference calls 6
Client meetings 3
Additional meetings shall be billed as Additional Services. Travel expenses shall be billed
as Reimbursable Expenses.
VII. EXCLUSIONS TO SCOPE OF SERVICES
Client shall provide the following information or services as required for performance of the
work. SWA assumes no responsibility for the accuracy of such information or services and
shall not be liable for error or omissions therein. Should SWA be required to provide
services in obtaining or coordinating compilation of this information, such services shall be
charged as Additional Services.
A. Geotechnical Report.
B. Environmental Review or CEQA documentation.
C. Legal descriptions of property.
D. Soils testing and/or engineering.
E. Existing site engineering and utility base information.
F. Overhead aerial photographs at controlled scale.
G. Engineering other than that provided within the Scope of Services and subconsultant
scopes (Appendix B).
H. Bidding or Negotiation Phase (NIC)
I. Construction Observation (NIC)
J. CALTRANS review and coordination (NIC)
K. Division 1 Specifications, and any specifications beyond landscaping scope (NIC)
.
EXHIBIT B
COMPENSATION SCHEDULE
EXHIBIT C
FORM 590
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-108 Agenda Date:2/14/2018
Version:1 Item #:6.
Motion to approve the Minutes from the meetings of January 11, 2018, January 22, 2018, January 24, 2018 and
January 29, 2018.
City of South San Francisco Printed on 2/8/2018Page 1 of 1
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CALL TO ORDER
ROLL CALL
AGENDA REVIEW
None.
MINUTES
SPECIAL MEETING
CITY COUNCIL
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
JOSEPH A. FERNEKES RECREATION
BUILDING
781 TENNIS DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, JANUARY 11, 2018
9:00 a.m.
TIME: 9:01 a.m.
PRESENT: Councilmembers Addiego, Garbarino and Gupta,
Mayor Pro Tempore Matsumoto and Mayor
Normandy.
ABSENT: None.
PUBLIC COMMENTS - comments are limited to items on the Special Meeting Agenda
None.
Items for Discussion:
Annual City Council retreat to discuss the following items:
a) Parking, U -Turns and pedestrian safety
Councilman Garbarino raised the issue of parking, unlawful U -turns and pedestrian safety on Grand
Avenue. He noted Chief of Police Azzopardi's recent statement that the number of citations issued on
Grand Avenue had risen, but opined the problem was still persistent particularly between the hours of
11:00 a.m. and 1:30 p.m. He noted Saturdays and Sundays were worse and was concerned about
pedestrian safety related to issues caused by these traffic conditions and jaywalking.
Councilman Addiego commented that the issues Downtown are caused by the recent success of the
businesses in the area.
Chief of Police Azzopardi addressed Council and advised that the statistics don't show an increase in
violations, but noted roughly 349 citations issued in the Downtown area demonstrated enforcement.
He advised the Department had three (3) full time parking enforcement officers, including one (1)
that was assigned to the Downtown. Adding a 4t' or 5`" might ensure that additional tickets were
issued in the Downtown area.
Councilman Garbarino thanked the Police Department for its efforts.
Mayor Pro Tempore Matsumoto concurred with Councilmembers regarding the severity of the issue
between 11:00 a.m. and 1:30 p.m. on weekdays. She raised the possibility of volunteer parking
enforcement officers as had been utilized in the past. She further raised the issue of officer discretion
related to illegal U -turns and noted that at times she had observed officers being lenient.
Chief of Police Azzopardi commented on the need for officer discretion based on traffic flow factors.
He acknowledged staff was also looking into the possibility of volunteers. He proposed solutions to
Council's concerns as follows: 1) the Downtown Officer would take his or her lunch break at a time
other than between 11:00 a.m. and 1:30 p.m.; 2) installation of signage regarding illegal U -turns; and
3) increasing the citation amount.
City Manager Futrell requested Council feedback with respect to placing additional bollards and
sticks down the centerline of Grand Avenue.
Councilman Addiego expressed concern regarding drivers' ability to maneuver around double parked
cars due to the bollards and believed they would cause bottlenecks creating additional traffic issues.
Chief of Police Azzopardi noted Police and Fire would have to drive over the bollards in many
instances and they were not favored.
Director of Public Works Kim stated that long term improvements to the streetscape would
eventually solve most of the issues at hand. In the interim, he suggested temporary solutions,
including measures such as striping.
Councilman Addiego requested that businesses with roll up gates down the lanes parallel to Grand
Avenue be reminded that deliveries should happen in the lanes and not on Grand Avenue.
Councilman Gupta stated a preference for looking into more permanent solutions such as making
Grand Avenue a one -way street.
Councilwoman Matsumoto reminded Council and staff of her longtime advocacy for a one -way
solution involving Grand, Miller and /or Baden Avenues.
Director Kim agreed to incorporate this option into an upcoming study.
b) Collaboration with South San Francisco Unified School District (SSFUSD)
Mayor Normandy thanked Councilmen Addiego and Gupta for their work on the SSFUSD Liaison
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 2
Standing Committee. She stated that the appointment for the current year was herself and Mayor Pro
Tempore Matsumoto. She stated the partnership with the District needed to be more than attendance at
liaison committee meetings, however. For example, she believed there could be greater collaboration
with the District on many items of mutual interest.
Mayor Pro Tempore Matsumoto stated that at Board and Commission interviews it frequently comes up
that people avoid moving to our City due to the quality of our local schools. She hoped to be able to
partner with the District to adjust standards and bring resources and opportunities, in the form of
volunteers, mentoring and collaboration on grants.
In response to a question from Councilman Garbarino, Chief of Police Azzopardi advised the Police and
Fire Homework Help Program had not been operational for some time. However, the School Liaison
Officers were always on site at our local schools.
Councilman Garbarino stated he believed the District should start sharing the cost of the Every 15
Minutes Program.
Councilman Addiego commented on the importance of celebrating the positive changes that have
occurred in the District in the face of challenges the District is managing. He believed that rather than list
a litany of deficiencies, the best approach moving forward involved partnering to keep positive outcomes
mobilized.
Councilman Gupta expressed the opinion that the District was beginning to change and move in the right
direction. He noted that many of the challenges facing the District involved teacher retention based on
affordable housing issues. He opined there was room for partnership on these issues.
c) Update on sports field maintenance and renovation
Mayor Normandy commented on recent attention to the ball field conditions citing debate on social
media and other local sources. She queried a timeframe for potential solutions.
Councilman Addiego concurred noting it was critical to provide the community with a timeframe on
the improvements.
Director of Parks and Recreation Ranals advised the need would be addressed in the upcoming
budget cycle. Further design was in progress and staff should be in a position to provide a
construction date in the very near future.
Councilman Garbarino suggested that signs depicting the plans be installed at improvement sites so
that the public could be advised of the plans as soon as possible.
Director Ranals advised that staff had installed signs of this nature during the Alta Loma Playground
renovation and would do the same for future park improvements. She also advised the plans for
improvements would be included in the Leisure Guide and the City Newsletter.
Mayor Pro Tempore Matsumoto encouraged staff to address this issue for the community in a variety
of ways, and not solely in the Leisure Guide.
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 3
d) 2018 Biotechnology Conference
Councilman Garbarino requested an update on expected costs related to the 2018 Biotechnology
Conference.
Communications Director Arroyo advised it was expected the City would spend roughly $120,000 on
the 2018 conference including $2750 per attendee. She advised the booth made up half the cost at
$60,000. The City would also spend roughly $13,000 on an Academic Breakfast. The Conference
would take place in Boston from June 4th- June 7h.
Councilman Garbarino advised of a conflict with his schedule that would only permit him to attend
for one (1) day. He did not believe it was cost effective to expend City resources to travel for one (1)
day of attendance.
Councilmen Gupta and Addiego commented on the need to be present at the conference to network
and celebrate the successes of the Biotech community.
Mayor Pro Tempore Matsumoto commented that she would like to see a measurement of the City's
Return on Investment (ROI) vis -A -vis attendance at the conference.
Councilman Addiego commented the ROI might be difficult to measure immediately. He believed it
was a more elusive number in this circumstance, which would yield returns over time.
Councilman Garbarino agreed ROI might be difficult to gauge in this instance. He believed the
industry was dynamic and that Council's presence added value. Further, participation provides
Council and staff with intangible education value that would help the City to maintain its credibility
in the industry.
Mayor Pro Tempore commented that she believed the Biotech companies needed to step up as other
companies in the Valley have to contribute on issues such as infrastructure.
Mayor Normandy commented on the importance of ROI, but noted that the value of relationships
built at the conference might not be measureable.
Council understood Councilman Garbarino would not attend the conference due to other
commitments and cost concerns.
e) Communication with Council from Staff and others
Mayor Pro Tempore commented on the need for communication from staff on issues requiring a
"heads -up ". She did not believe that detailed memos outlining every issue were required; however
she would appreciate more timely notice of issues facing staff and /or the community.
Councilman Garbarino concurred regarding the need for more timely communication.
Councilman Addiego stated he believed the current management regime kept Council in the loop on a
regular basis.
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 4
Mayor Normandy advised staff it would be useful to receive more frequent communication regarding
how Councilmembers can support staff in their roles.
f) Allowed Construction Hours
Councilman Addiego commented that the need for discussion of this issue has grown out of several
recent projects, but most specifically the City Venture Project on Mission Road. He believed the
developer had not been a good community partner and caused disturbance and nonsense in the
neighborhood. Given what our residents are facing in light of this development, he hoped staff could
review and propose modifications to construction hours that might give neighbors a period of relief.
Director of Economic and Community Development Greenwood addressed Council. He advised the
City's current ordinance allowed construction on weekdays beginning at 8:00 a.m. The complaints
regarding noise related to construction employees before 8:00 a.m. had increased due to the fact that
laborers are coming from far distances and arriving early to beat commute hours. During the period
from the time they arrive to the time they are allowed to begin work, they are often sitting in their
cars, talking on phones in the street or participating in other legally authorized activities. Allowing
construction to begin at 7:00 a.m. would eliminate complaints regarding some of the on- street
activities. Director Greenwood stated that changing permitted construction hours to 7:00 a.m. to 7:00
p.m. during the week would allow construction firms to act more efficiently and get projects done
more quickly. Staff also planned to recommend scaling back on Saturdays and allowing construction
between the hours of 8:00 a.m. and 6:00 p.m. Finally, to provide a respite to the community, staff was
prepared to recommend no construction on Sundays and holidays.
Councilmembers discussed these options and queried the possibility of a half -day on Sundays.
Director Greenwood advised a half -day of work would be cost prohibitive to developers.
Mayor Pro Tempore Matsumoto queried whether this would apply to standard residential construction
and "do- it- yourselfers ".
Director Greenwood advised this would apply to all construction.
Fire Chief Kohlman advised staff was in support of the proposed modifications from the code
enforcement perspective. It would reduce response time to many early hour calls where no
enforcement was necessary, because the complaints were about legally permissible activities.
Mayor Normandy commented on the importance of discretion related to Sunday construction
depending upon the type of activity and /or project.
City Manager Futrell advised staff would take Council's feedback and prepare an ordinance for
review.
Recess: 10:25 a.m.
Meeting resumed: 10:35 a.m.
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 5
Item "l " was presented as the consultant from Godbe Research was present ahead of schedule.
1) Review of Community Survey
Mr. Godbe of Godbe Research presented the results of a community study regarding resident
satisfaction. He explained methodology and noted that 471 adult residents were interviewed for 18
minutes each in December of 2017. Mr. Godbe presented a PowerPoint summarizing results as
follows: 1) The most important issues to residents are affordable housing and traffic congestion; 2)
42% of residents believe that the number of new residential units being built is about right or not
enough; 3) 40.7% of residents believe too much housing is being built; 4) 53.2% of residents believe
the City should encourage the construction of more affordable housing; 5) 61.7 % of residents believe
the City should encourage housing construction near where people work; 6) 84% of residents are
satisfied with the courtesy, customer service, and results from City staff. Mr. Godbe concluded
results were generally very favorable.
In response to a question from Mayor Pro Tempore Matsumoto, Mr. Godbe clarified that responses in
Spanish and Cantonese were in native language
Mayor Pro Tempore Matsumoto requested clarification as to whether Fire Services parsed out
ambulance services, which made up 72% of the Department's operations.
Mr. Godbe responded that ambulance services were not culled out and the survey requested
satisfaction with "fire services ".
Councilman Garbarino congratulated Department Heads and staff on their commitment to customer
service.
Councilman Gupta commented he was more interested in trends as opposed to a snapshot in time.
City Manager Futrell advised the study was intended as a baseline and would be repeated.
Mayor Pro Tempore Matsumoto noted that the results of this study had shifted her opinion with
respect to the prospect of housing East of 101. She stated she felt more comfortable supporting
housing East of 101 based on the results. She wanted to minimize the impact of infill on the City's
residents.
g) Discussion regarding potential City policy on promotion/display of cultural events
for 2018
Mayor Pro Tempore Matsumoto invited City Attorney Rosenberg to advise Council of the current status
of the law related to cultural displays and secular symbols.
City Attorney Rosenberg advised that courts have recognized certain Christian and Jewish holiday icons
as taking on a secular status. Therefore, their display on City property does not run afoul of the
Constitution.
Mayor Pro Tempore Matsumoto expressed a desire to display cultural icons from other traditions and
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 6
queried permissible grounds.
City Attorney Rosenberg advised that any type of display not preferring one religion over another is
permissible if it is done for secular purposes. He advised it was a much nuanced area of the law, but that
displays for purposes of cultural diversity and inclusion would likely be permissible. He advised Council
that a neutral policy based on this intent was advised if Council wished to tell inclusive stories for
educational and cultural purposes vis -a -vis a City display.
Councilman Addiego appreciated the Mayor Pro Tempore's direction on this issue and believed the City
could use a policy to permit displays to be inclusive.
Council directed the City attorney to work on the creation of a policy that would permit constitutional
displays to promote cultural inclusion.
h) Strategic direction of Senior Services program
Mayor Pro Tempore Matsumoto commented that with the retirement of senior services personnel, she
believed a retooling of the program was in order. She would like to see a larger emphasis placed on
seniors who have lived here so long.
Councilman Addiego commented on the need for a more vibrant Magnolia Center that could serve as a
place for seniors to hang out.
Councilman Gupta opined that the senior population was growing while it was simultaneously more
difficult for seniors to maintain their lifestyle in the Bay area. He commented on a lunch meeting he had
with the Japanese Consulate. They had discussed a conference on cultural solutions as part of the
thinking process for serving the ageing population.
Director of Parks and Recreation Ranals discussed recent changes including expanded programming at
Magnolia Center. Staff welcomed Council direction on additional services and options for seniors.
Mayor Pro Tempore Matsumoto requested that staff work on a proposal for new senior programming and
services.
i) Plan for a new General Plan
Recess: 11:50 p.m.
Meeting resumed: 12:20 p.m.
Mayor Pro Tempore Matsumoto expressed the pressing need for a General Plan update.
Director of Economic and Community Development Greenwood advised the General Plan zoning
policies and updates were being reviewed. Staff was proposing a 24 month schedule beginning in the
first quarter of this year and ending in the final quarter of 2020, including technical studies and an
Environmental Impact Report (EIR). Staff recommended hiring a community engagement consultant
and engaging every department in the City on this issue. The process would require Council
oversight and guidance, but the time had come.
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 7
Mayor Pro Tempore Matsumoto encouraged staff to stick with this timeline and begin the proposal.
She noted the City's award winning and conscientious General Plan was responsible for where the
City is today.
j) City upkeep, including street light painting or wrapping, crosswalks and curbs,
street signs, garbage receptacles and cleanliness of sidewalks
Councilman Garbarino queried whether public works staff still performs upkeep and cleaning work in the
alleys.
Director Kim advised there is a clean team, but the work in the alleys being done under former
management was no longer maintained. The issues at hand were primarily the responsibility of the
property owners and handled through code enforcement.
Mayor Pro Tempore Matsumoto advocated for the City's neighborhoods and requested that issues of
health and safety be prioritized. Code enforcement should be strengthened and street striping and
pavement should be improved. She believed these small things could mitigate traffic dangers related to
confusion.
Councilman Gupta noted the need to take things street- by - street given the rapid growth and development
in the City. He noted some lag was to be expected, but neighborhood safety should be a priority.
City Manager Futrell advised that executive staff was planning a neighborhood drive - through to log
issues to be addressed.
Mayor Normandy commented that the City's cleanliness should not be subject to a complaint driven
process. While she appreciated Engage SSF, she believed required maintenance should be handled on the
front -end before complaints are necessary.
Councilmembers discussed the need for safety measures along Westborough Boulevard.
k) Review of City Council Reorganization Ceremony
Mayor Normandy noted the current budget for the City's Reorganization was out of date against current
pricing. She suggested that Council establish a standard ceremony and reception budget of $5000
inclusive. Anything extra could be funded by the campaign committees of the elected officials at their
discretion.
Councilmembers concurred with this suggestion.
m) Council Goals /Objectives, and discussion of draft 2018 -2019 work plan
City Manager Futrell directed Council to the handout regarding the proposed 2018 -2019 work plan.
(Attachment 1) He discussed highlights starting with the General Plan. He stated the General Plan
update would be an ECD Department priority. As City Manager, he was continually focused on
attracting the team and maintaining the culture of innovation and continuous improvement. He next
advised Council of upcoming work on the Information Technology Department's Strategic Plan. The
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 8
Plan would focus and inform the City's technology needs moving forward. The City Manager next
advised Council of a proposal regarding the purchase or lease of property to expand Orange Memorial
Park. Council direction on this subject would inform negotiations. City Manager Futrell next advised
Council that staff was considering a 110a' Birthday Celebration/Day in the Park type event in place of
the Concert in the Park. The proposed event would take place on Saturday, September 22, 2018 and
staff would be looking to Council for direction and ideas.
Councilmembers discouraged a City birthday celebration, but agreed a retooled and toned down Day in
the Park might be welcomed by the community.
The City Manager next advised Council that staff was proposing six (6) newsletters a year on a two (2)
month circulation to keep up with the pace of change in the City and keep residents advised.
Mayor Pro Tempore Matsumoto queried the possibility of providing the newsletter in alternative
languages.
City Manager Futrell advised posting the newsletters on the website in alternative languages was the most
cost effective option.
City Manager Futrell noted that construction in the Downtown necessitated extra TLC for the area as the
inconveniences and demands were great.
Councilman Gupta thanked City Manager Futrell for the work plan's level of detail. He fully supported
the goals and objectives outlined. He reminded staff of clean energy opportunities and partnership
funding through Peninsula Clean Energy.
Mayor Pro Tempore Matsumoto advised of her focus on neighborhoods, diversity and the Year of the
Woman. In the City personnel arena, she would like to see pathways for training and advancement.
Councilman Addiego thanked staff for the comprehensive document and felt it was broad enough to
assume his goals and objectives.
Mayor Normandy advocated for addition of employee recognition. She suggested the concept of
employee of the month or an employee of the month parking space. She hoped for more opportunities to
sit down with employees and discuss their work, goals and objectives.
n) 2017 Calendar of Events review
Council reviewed the attached Calendar of events. (Attachment 2)
ADJOURNMENT
Being no further business, Mayor Normandy adjourned the meeting at 1:48 p.m.
r Approved:
(na*
i, Ci Clerk Liza Normandy, Mayor
City of South San Francisco City of South San Francisco
SPECIAL CITY COUNCIL MEETING JANUARY 11, 2018
MINUTES PAGE 9
T1 r-4T � G.
City of South San Francisco
City Manager's Office
I. Purpose
The purpose of this paper is to present an overview of proposed direction for 2018 -2019.
2. Executive Summary
January 11, 2018
Looking forward, the following are recommended strategic goals:
1. Attract, Train, Support and Retain a High Performance Team;
2. Build and Maintain a Sustainable City:
a. Robust recreation & learning programs, with top tier public parks, art and green spaces;
b. Excellent bike paths, pedestrian ways, and multi -modal transportation options;
c. Greenhouse gas, water and energy reductions, implementing the Climate Action Plan;
d. Full range of employment and housing options.
3. Highly skilled Police, Fire, Emergency Medical Service and Emergency Management Program
4. Robust internal and external communications strategy;
5. Vibrant and healthy Downtown; and
6. Foster and engender strong, active neighborhoods, non - profits, service clubs and volunteer
opportunities.
3. Management Responsibility
Responsibility for implementation of these strategic initiatives rests with the City Manager and the
Executive Team, while championed by every employee of the City.
4. Mission Statement and Core Values
South San Francisco Mission Statement: The mission of the government of the City of South San
Francisco is to provide a safe, attractive, and well- maintained community through superior customer
service and programs, and a work ethic that will enhance the quality of life in our neighborhoods. To that
end, we will strive to nurture a partnership with the community by recruiting a diverse and highly skilled
work force, be an active partner in quality education, and attract and retain a prosperous business
community, all of which will foster community pride and understanding.
Our Core Values: We are committed to:
• Strengthening each other and the organization through dedication and teamwork
• Recognizing and Respecting diversity and encouraging opinions of the community and workforce
• Excellence and Service in everything we do
• Encouraging creativity and supporting problem solving
• Accepting responsibility and accountability
• Demonstrating integrity and transparency in all aspects of service
• Promoting and maintaining open and constructive communication
• Encouraging skill development and professional growth
The Industrial City: Industrious, entrepreneurial, innovative... home to big thinkers changing the world.
1
City of South San Francisco
City Manager's Office
S. City Priorities
January 11, 2018
The following six priorities and associated action items are consistent with our mission and core values:
Priority #1: Attract, Train, Support and Retain a High Performance Team: Employee development and
retention is a high priority for city government in South San Francisco. This includes nurturing a culture
of safety, open collaboration, innovation, respect and continuous improvement. Specific initiatives
include:
• Robust Employee Training and Recognition Program
• Further define and implement a more thorough On- Boarding Program
• Plan and start a more robust employee Recognition Program
• Explore use of 360 degree evaluation program for managers
• Create and publish a City recruitment video
• Succession Planning
o Support robust LEAP succession development program in all City departments
• Robust Safety Program
• Culture of safety throughout the organization
• Safety metrics objectively showing status of safety program
• Maintain a Culture of Innovation and Continuous Improvement
• Activate internal Innovation Committee fostering continuous improvement
• Employee engagement through intranet, town halls, suggestion boxes, etc.
• Prepare IT Strategic Plan to provide future focus, and in 2018:
W Expand cloud technology for disaster recovery and business continuity
■ Expand Geographic Information System (GIS) functionality
Upgrade Council Chamber equipment
■ Digitize online forms and departmental files
■ Initiate phone system upgrade
F Upgrade Permitting and Business License application
■ Install surveillance cameras at City Hall
■ Expand ultra -high speed network
■ Pursue Public /Private partnerships for free services and equipment
■ Process small cell applications based on approved small cell ordinance and
master license agreement.
■ Expand City conduit by creating a dig -once ordinance requiring contractors to
place underground conduit when excavating city streets
■ Digitize online forms and departmental files
■ Implementation of new Recreation Management System
■ Upgrade Library wireless networks speeds
• Sustain great labor- management relations
• Roll out of an employee down - payment assistance program for home buyers
2
City of South San Francisco
City Manager's Office
January 11, 2018
Priority #2: Build and Maintain a Sustainable City: A sustainable city is one that is economically,
environmentally, and socially healthy and resilient, meeting challenges through integrated solutions.
This requires a long term perspective focused on both the present and future to improve quality of life,
protect the environment, maintain good stewardship of city finances and encourage citizen participation
in governance. Specific areas include:
Robust recreation programs, with top tier public parks, art and green spaces;
o Progress on the Parks and Orange Park Master Plans, including in 2018:
Purchase or lease of the Cal Water property
• Design for renovation of existing Orange Park ballfields
• Design of new fields and facilities on purchased property
• Continue planning and funding efforts to replace Orange Pool
• Continued expansion of public art offerings throughout the city
• Progress on Parks 11 program of park and ballfield renovation
• Citywide reforesting measures and creation of an Urban Forest Master Plan
• Restoring Day in the Park, and merging with the existing Concert in the Park event
Excellent bike paths, pedestrian ways, and multi -modal transportation options;
• Complete a master Transportation Plan for South San Francisco
• Update the Bicycle and Pedestrian Master Plans
• Continued implementation of the current Pedestrian and Bicycle Master Plans by
aggressively seeking grant funds and new public - private partnerships
• Implement traffic /parking improvements downtown, including
Planning for new parking garage
Expanding the Parking District citywide
Installing better wayfinding for current parking garage
• Pursue new shuttle routes and "last mile" solutions
• Work with WETA to increase and improve Ferry service, including assignment of an
additional ferry to SSF and use of existing TA funding
• Construct new Caltrain station
• Fund and start new projects under the ADA Transition Plan
• Complete initial design of SSF at -grade crossing improvement and gain funding for
environmental phase of the project
• Move Forward New Plan for Oyster Point Marina and Park
• Construct Oyster Point Development Phase I
• Design hotel
• Develop a vision for Phase IIC of the Oyster Point project
• Develop a new operating model with the San Mateo County Harbor District
Robust Environmental Sustainability program
o City -wide anti - litter /healthy living campaign
o Provide effective Code Enforcement services to support clean neighborhoods
o Move Code Enforcement operations from the Fire Department to ECD
o Neighborhood Clean -up and E -waste events to divert trash from illegal disposal
City of South San Francisco
City Manager's Office
January 11, 2018
• Support the Adopt a Storm Drain program
• Benchmark and monitor City's current energy and water use
• Pursue internal energy and water savings programs
• Complete Storm Water Master Plan
• Move forward with regional stormwater capture project at Orange Park
• Engage the USACE to address sea level rise
• Develop and pursue alternative fuel vehicle strategy for city vehicles, including
installation of EV charging stations
• Develop electric vehicle master plan
• Develop and present to Council a Homeowner Sidewalk Repair program
• Renewed efforts under the Airport Noise Improvement Program, revalidating
eligibility and providing funding for qualifying homes
• In partnership with the City of San Bruno and San Mateo County
■ Continue appeal of FEMA flood maps, and
Construction of a tide gate at the navigable slough
• Increase Resilience: Develop plan for infrastructure improvements for disaster
resilience (i.e. sewer system pump redundancy, WQCP capacity and seismic safety,
flood improvements, etc.)
• Develop Building Inspection and Occupancy Resumption Program for use after a
major seismic events
Full range of employment options.
o Continued focus on biotechnology retention, recruitment and industry support
through proactive actions that include:
■ A strong focused presence at BIO 2018
Business visitations to strengthen relationships with biotech leaders
Three Biotech Newsletters
a Biotech Town Hall Meeting
o Develop plan to attract mid -level industries such as film, food or tech manufacturing
o Roll out new cannabis regulations
o Expand the retail base within the community and improve the retail /restaurant mix
within the downtown shopping area, including:
Attend International Council of Shopping Centers retail deal making session
to attract quality retailers
E Collaborate closely with 200 Linden developer and developer's retail leasing
team to attract desirable ground floor retail
■ Regular meetings with key retail brokers to attract new retailers to
downtown storefronts, existing shopping centers and to new spaces created
in mixed use developments
• Provide a summer jobs program for youth
• Hold a job fair, and
• Roll out On -Line plan submittal in the Building Department
• Full range of housing options.
• Move forward with development of the PUC properties
• Explore affordability requirements for rental units
4
City of South San Francisco
City Manager's Office
January 11, 2018
• Strive to attract grants and other funding for affordable housing units
• Manage city -wide construction, including:
Continue internal cross departmental coordination
Maintain GIS -based information on website
■ Continue Construction Connection, email blasts and hot -line to manage
public information
Strengthen Learning Programs
• Prepare a strategic plan for pre -k and after school programs operated by the city
• Expand STEAM class offerings, including coding, math, science, music and
technology classes
o Enhance and promote the Library's Technology Learning and MakerSpace Programs
as key components of library lifelong learning services and collections.
Celebrate Diversity and Inclusiveness
o Support cultural events highlighting our diverse community
o Develop and provide information on resources to express support for diversity and
inclusiveness, including, but not limited to, issues concerning race, gender, sexual
orientation, ethnicity or religion, connecting residents and others with County and
regional programs and services
o Robust City History Initiative, including
New history brochure
Celebration of city's 110th Birthday in September
Celebrate Historic Preservation Month in May, with
• "History" newsletter mailed to residents
• Display at the MSB
• Social media and web promotion (year round)
Build a New Joint Library -Parks and Recreation Facility as part of the Civic Campus Project,
and specifically in 2018:
• Finalize the funding plan, including a bond rating plan and bond schedule
• Conduct public outreach
• Finalize site plan and schematic design, and
• Complete staffing study and O &M plan for new facility
Pursue financial stability to support City operations:
o Establish a CFD covering the Chestnut/El Camino Real area
o Prepare to establish a CFD E -101
o Implement new HR /Finance computer system
o Continue to improve ambulance billing efficiency and revenues
o Explore increased TOT or a new cannabis tax for 2018 election cycle
• Engage in the Smart Cities initiative, utilizing electronic data collection to supply
information which is used to manage assets and resources efficiently, including data
collected from citizens, devices, and assets that is processed and analyzed to monitor and
manage traffic and transportation systems, utility systems, water use and supply, waste
City of South San Francisco
City Manager's Office
January 11, 2018
management, law enforcement, fire prevention and response, emergency services,
information systems and other community services.
Priority #3: Highly Skilled police, fire, emergency medical & disaster management programs: Full
service police, fire, emergency medical services and emergency preparedness are essential for the
protection of the residents, merchants and visitors in South San Francisco.
• Police
o Design a new police operation center as part of the Civic Campus Project
o Continued robust community engagement
• Fire
• Design a new Fire Station as part of the Civic Campus Project
• Start planning for replacement of Fire Station 62
• Modernize Fire Inspection processes, including metrics and new database
• Stronger Urban Search and Rescue (USAR) Certification program
• Conduct third -party fire operational and financial study
• Revise Emergency Operations Plan to align with new FEMA incident management
system structures and terminology
• Validate a database of all commercial occupancies, detailing earthquake
sustainability of at -risk buildings
• Regular earthquake and other disaster response training exercises
• Continued recruitment and development of CERT members
• Emergency response training and exercises focused on high -rise, hazardous
materials and "L" (laboratory) occupancies
• Support reliability of fire fleet through scheduled apparatus replacement
• Work towards certification of the Emergency Medical Services
• Well supported and financially successful AILS and BLS operation
Priority #4: Robust internal and external communications strategy: Effective external communication
strategy supporting the creative collaboration needed to engage and inform residents and businesses in
South San Francisco; and internal communication to improve employee morale, engage employees in
creative decision making and process improvement, and help train /inform employees in order to more
safely and effectively perform.
M
City of South San Francisco January 11, 2018
City Manager's Office
• Internal Communications
o Robust use of the intranet
o Regular employee communications, including two rounds of employee town halls
and expansion of existing employee newsletters
• External Communications
• Marketing and media branding
• Robust use of PEG and PenTV channels, social media and web, digital billboard
• Six city Newsletters
• Three "Coffee with the City Manager" and department heads events
• Mayor's Annual Town Hall event
• Host tours of the Water Quality Plant
• 2018 Citizens' Academy
• Crisis Communications
• Maintain and train on the crisis communications plan
• Regular media training for employees, Council, etc.
• SMC Alert user expansion and training
Priority #5: Vibrant and Healthy Downtown: Transform our downtown into a thriving destination that
will enhance our businesses, support a growing downtown residential community and serve as a
gathering place for the entire city.
• Further progress on action items from the Downtown Station Area Plan, including
o Grand Avenue sidewalks and plazas design from Airport Blvd to Linden Avenue
o Facilitate /coordinate housing construction downtown
o Improvement to the Linden Avenue commercial corridor, including in 2018:
■ Expand business and property owner outreach efforts to include facade
improvements to key Linden Avenue properties.
• Work with County to plan a new County Health Clinic
• Expanded holiday decorations and events downtown in 2018
Fund and start a collaborative process developing a master plan for the City Hall block
• Start a Downtown Business newsletter
• Collaborate with stakeholders, laying the groundwork for a Business Improvement District
to move forward in 2019
• Develop and present to Council a plan for the Breezeway
Priority #6: Strong, Active Neighborhoods, Non - profits, Service Clubs and Volunteers: Strong cities are
anchored by strong neighborhoods; and strong neighborhoods are built on strong neighborhood
associations which, through their members, take ownership for maintaining and improving
neighborhoods throughout the City.
7
City of South San Francisco
City Manager's Office
January 11, 2018
• Support active neighborhood associations
• Support non - profits and service clubs providing good work in SSF
• Lay the groundwork for the next City Citizens' Academy in 2018
• Encourage and support citizen engagement through service on Boards or Commissions, or
volunteer opportunities with CERT, IPP or other similar civic groups
• Fire Safety, CPR and First -aid training to public and SSFUSD students
• Be present in the community through continued engagement by all departments
6. Conclusion
South San Francisco's mission and core values remain constant, providing a vision for the City's future.
The above medium range goals provide direction for 2018 -2019. This is not an exclusive list of the tasks
which staff will perform in the future. Much time will be necessarily devoted to day -to -day activities
serving the residents and businesses. These specific goals will evolve often in response to new
opportunities and changing circumstances, and as activities are completed.
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MONDAY, JANUARY 22, 2018
6:00 p.m.
CALL TO ORDER Time: 6:00 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino and Gupta,
Mayor Pro Tem Matsumoto and Mayor Normandy.
Absent: None
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
ADMINISTRATIVE BUSINESS
1. Study Session regarding consideration of possible Transient Occupancy Tax increase
(Richard Lee, Director of Finance)
Director Greenwood discussed the importance of the Leisure and Hospitality Industry and
hotels in the City.
Councilmember Addiego asked if there 10% of the local jobs were in the hospitality
industry. Director Greenwood stated there were 3,800 jobs in the Leisure and Hospitality
Industry. He stated restaurants connected to the hospitality industry were included.
Mayor Pro Tem Matsumoto asked the first through fourth highest industries. Director
Greenwood stated live sciences, manufacturing, transportation, warehousing and wholesale,
and healthcare. Mayor Pro Tem Matsumoto asked what 1 -4 was in terms of revenue growth.
Director Greenwood stated he would provide that information via email.
Councilmember Addiego confirmed that manufacturing included food processing.
Mayor Pro Tem Matsumoto asked the type of warehousing. Director Lee stated the City
received quarterly reports on local economy but it did not specify the type of warehousing.
Director Greenwood suggested NAICS code might be able to provide that information.
MINU'T'ES
sA�2
CITY COUNCIL
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CITY OF SOUTH SAN FRANCISCO
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MUNICIPAL SERVICES BUILDING
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COUNCIL CHAMBERS
c9LIF0R���
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
MONDAY, JANUARY 22, 2018
6:00 p.m.
CALL TO ORDER Time: 6:00 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino and Gupta,
Mayor Pro Tem Matsumoto and Mayor Normandy.
Absent: None
AGENDA REVIEW
None.
PUBLIC COMMENTS
None.
ADMINISTRATIVE BUSINESS
1. Study Session regarding consideration of possible Transient Occupancy Tax increase
(Richard Lee, Director of Finance)
Director Greenwood discussed the importance of the Leisure and Hospitality Industry and
hotels in the City.
Councilmember Addiego asked if there 10% of the local jobs were in the hospitality
industry. Director Greenwood stated there were 3,800 jobs in the Leisure and Hospitality
Industry. He stated restaurants connected to the hospitality industry were included.
Mayor Pro Tem Matsumoto asked the first through fourth highest industries. Director
Greenwood stated live sciences, manufacturing, transportation, warehousing and wholesale,
and healthcare. Mayor Pro Tem Matsumoto asked what 1 -4 was in terms of revenue growth.
Director Greenwood stated he would provide that information via email.
Councilmember Addiego confirmed that manufacturing included food processing.
Mayor Pro Tem Matsumoto asked the type of warehousing. Director Lee stated the City
received quarterly reports on local economy but it did not specify the type of warehousing.
Director Greenwood suggested NAICS code might be able to provide that information.
City Manager Futrell stated hotels were a vibrant part of the economy but increased public
safety costs.
Fire Chief Kohlmann presented total Fire and Police incidences.
Mayor Pro Tern Matsumoto asked why the decline for 2017. Fire Chief Kohlmann explained
the decrease in routine medical calls due to a decline in patients waiting for medical
procedures being housed at City of South San Francisco hotels.
Fire Chief Kohlmann stated service calls and fire alarms stayed relatively stable.
City Manager Futrell stated the patients awaiting procedures were somewhat compromised
while at the hotel so they required medical calls.
Fire Chief Kohlmann explained that UCSF had reduced the volume of procedures but the
rate was expected to increase.
Councilmember Matsumoto asked about "other public assistance." Fire Chief Kohlmann
explained water and mechanical damage.
Police Chief Azzopardi stated Police incidents were relatively the same in 2017. He
explained that an incident was any time a Police Officer was at a hotel. He presented
statistics at the Travel Lodge.
Councilmember Addiego discussed problem hotels in Oakland and asked if there was a
threshold on illegal activity to move against them. City Attorney Rosenberg discussed
excessive calls ordinance and the Red -Light Abatement Act.
City Manager Futrell stated Police and Fire were at hotels eight times each day.
Director Lee discussed the City's Transient Occupancy Tax (TOT) rate, comparison to
surrounding cities, $16.5 million in revenue, and increasing TOT.
Mayor Pro Tern Matsumoto asked if other cities had a comparable room tax. Director Lee
stated there were not and he discussed the San Mateo County Visitors Bureau Assessment.
Mayor Pro Tern Matsumoto asked if the tourism tax was assessed on occupied rooms.
Director Lee stated it was assessed on occupied rooms. Councilmember Addiego asked the
percentage of the $2.50. Director Lee stated it was 1.45 %.
City Manager Futrell discussed the potential of a ballot measure to raise the TOT as a
general tax.
Mayor Normandy stated San Carlos was proceeding with a ballot measure.
Mayor Pro Tern Matsumoto stated RM3 would go on in June. She asked of any other tax
increase initiatives on the November ballot. City Manager Futrell stated he was only aware
of the two mentioned. Mayor Pro Tern Matsumoto indicated support but expressed concern
with anger over the half cent sales tax.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 2
Councilmember Addiego discussed demands on services. Need to run with the others but
factor in 1.45%
Councilmember Garbarino discussed the use of Police services and indicated support for an
increase.
Councilmember Gupta stated he supported an increase due to the need to remain competitive
with Daly City and San Francisco and the need for revenue. He stated he questioned why not
increase to 15 %.
Mayor Pro Tem Matsumoto discussed the impact of the Grand Hyatt on the City's
occupancy rates.
Mayor Normandy agreed that TOT did not affect residents but could impact the tourist
economy. She suggested revisiting the TOT tax sooner. She discussed all the fees associated
with hotel stays. She discussed the need to work with hoteliers. She suggested increasing to
12 or 12.5 %.
Councilmember Addiego agreed with increasing to 12 %.
Councilmember Garbarino concurred.
City Manager Futrell suggested 12% now and come back in 2 years.
Councilmember Addiego surprised that the impact the industry has on emergency services.
Director Lee suggested phased in approach for TOT.
City Attorney Rosenberg explained the potential of a graduated increase presented to the
voters.
Mayor Pro Tem Matsumoto stated it was necessary to be aware of other transportation taxes.
Councilmember Addiego thanked the hotel industry for benefits to the City.
Councilmember Garbarino indicated support for graduated rates.
BJ Patel, Hampton Inn and Hotel 550, discussed the existing Convention Center tax, San
Mateo County Tourism tax, and Visit California tax. He requested the City of South San
Francisco allow TOT payments by credit card. He cautioned the Council to increase the rate
slowly.
Director Lee explained the interchange fees to the merchant service account associated with
allowing TOT to be paid by credit card.
Councilmember Addiego stated credit cards could be used for property tax. Director Lee
confirmed that you could pay by credit card with a fee. Councilmember Addiego suggested
looking into allowing quarterly payment. Director Lee explained impacts of quarterly
remittance.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 3
Mayor Normandy reiterated the gradual approach and asked when the matter would come
back to Council. City Attorney Rosenberg stated the matter would come back to Council the
first meeting in July. Mayor Normandy suggested allowing credit card payments with a fee.
2. Study Session regarding recently adopted State housing legislation. (Nell Selander,
Economic & Community Development Deputy Director)
Deputy Director Selander presented the staff report.
Councilmember Gupta asked the advantages of declaring areas for workforce housing.
Deputy Director Selander explained that the City would prepare an EIR for districts,
streamlining the permitting process.
Mayor Pro Tern Matsumoto asked if the City had an affordable housing policy. Deputy
Director Selander stated the City had an inclusionary housing ordinance but it was not
permitted to have one for rentals prior to January 1, 2018.
Councilmember Gupta discussed the definition of affordability in SB 2 and 3. Deputy
Director Selander provided current AMI values.
Councilmember Gupta asked if the City prescribed the number of people. Deputy Director
Selander explained that the unit was based on the price for assumed household size.
Deputy Director Selander continued review of legislation.
Councilmember Gupta questioned how AB1397 encouraged housing. Deputy Director
Selander explained that it encouraged consideration of practicability to replace commercial
with housing.
Deputy Director Selander explained no net loss, one of three high priority items.
Mayor Pro Tern Matsumoto stated the State did not enforce RHNA numbers but the City
was morally obligated to provide housing.
Councilmember Gupta stated the legislation would use the gap between what the City
promised and delivered to measure whether the City should be forced to accept housing
without its approval.
Councilmember Garbarino stated the bills eliminated local control.
Deputy Director Selander presented an example of no net loss.
City Manager Futrell discussed possible sites including in the Housing Element.
Mayor Pro Tern Matsumoto stated she was prepared to make one of the units low income.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 4
Councilmember Garbarino stated the legislation required either the City or developer to
develop per the Housing Element.
Councilmember Addiego stated the City had to be true to the Housing Element. He
suggested housing west of 101.
Deputy Director Selander discussed the PUC site.
Councilmember Gupta discussed development constraints and asked if the State could force
the City to build. Deputy Director Selander explained that the City would have to designate
capacity for unbuildable units. She stated property would have to be rezoned or identified to
meet capacity.
Mayor Pro Tem Matsumoto stated low and very low housing was equated with indigent
people but it was for elderly or retirees.
Councilmember Gupta agreed but wanted the City to retain control of development.
Deputy Director Selander discussed the Housing Accountability Act (HAA) and reforms
In response to Councilmember Gupta, City Attorney Rosenberg explained substantial
evidence versus preponderance of evidence. Councilmember Gupta asked if the burden of
proof shifted. City Attorney Rosenberg explained that preponderance of the evidence
required the scale to shift.
City Manager Futrell discussed the requirement to use objective general plan and zoning
standards.
Deputy Director Selander discussed objective standards in the Zoning Ordinance
Mayor Pro Tem Matsumoto stated she had been pushing for an update to the General Plan.
City Attorney Rosenberg stated the City could do four amendments per element per year.
City Manager Futrell stated the design standards were not in the General Plan. He stated the
Council could determine if the design regulations should be strengthened.
City Attorney Rosenberg discussed findings that were not objective. He stated staff could
recognize subjective standards and turn into objective standards.
Deputy Director Selander discussed timelines for processing planning applications.
Mayor Pro Tem Matsumoto asked about Pinefino. City Attorney Rosenberg stated the
applicant was seeking a discretionary FAR, but opted for density allowed by right. Mayor
Pro Tem Matsumoto stated the Council did not have the opportunity for call for review. City
Attorney Rosenberg stated call for review would still apply. He stated the bill expanded
housing projects and created stricter timelines.
Deputy Director Selander stated the State density bonus could be applied. She discussed
HAA impacts on fines and fees. She discussed the City's ability to comply with the reforms.
SPECIAL CITY COUNCIL MEETING JANUARY 22, 2018
MINUTES PAGE 5
She summarized SB35 — Streamlining, exclusions and requirements, process, and parking
requirement waivers.
Mayor Pro Tem Matsumoto asked when it was effective. Deputy Director Selander stated it
was effective but there was not yet administrative instruction.
City Attorney Rosenberg stated the city had not yet received RHNA reports and it was
unclear as to when an applicant could avail himself to the streamlining.
Deputy Director Selander summarized the implications.
Councilmember Addiego expressed concern about the parking requirements. Manager
Mehra stated there were no specific locations for car share.
Deputy Director Selander informed the Council of a future study session on AB 1505 —
requiring affordable housing in rental developments.
Mayor Normandy stated the study session would be televised and in the Council Chambers.
City Manager Futrell anticipated public comment.
Mayor Normandy suggested the possibility of joint Council /Planning Commission meetings.
Councilmember Addiego commended Deputy Director Selander on the presentation.
ADJOURNMENT
Being no further business, Mayor Gupta adjourned the meeting at 7:44 p.m.
Submitted by:
Gabriel Rod z, Deputy City Clerk
City of South San Francisco
SPECIAL CITY COUNCIL MEETING
MINUTES
Approved by:
Liza Normandy, Mayor
City of South San Francisco
JANUARY 22, 2018
PAGE 6
MINUTES
oQSQ °`H SA "��,y CITY COUNCIL
H CITY OF SOUTH SAN FRANCISCO
U O
c9LIFO R�� REGULAR MEETING
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, JANUARY 24, 2018
7:00 p.m.
CALL TO ORDER Time: 7:00 p.m.
ROLL CALL Present: Councilmembers Addiego, Garbarino and Gupta,
Mayor Pro Tempore Matsumoto and Mayor
Normandy.
Absent: None.
PLEDGE OF ALLEGIANCE
Led by Fire Chief Kohlman.
AGENDA REVIEW
None.
ANNOUNCEMENTS FROM STAFF
None.
PRESENTATIONS
1. Presentation to Fire Chief Gerald Kohlmann on his retirement from the South San Francisco Fire
Department. (Liza Normandy, Mayor).
Mayor Normandy presented a Certificate of Recognition to Fire Chief Kohlman on the occasion of
his retirement from the City.
Councilmembers commended Chief Kohlman for his commitment to customer service and for his
leadership in reorganizing the Department.
Chief Kohlman thanked Council for the recognition. He commended his colleagues on City staff
and in the Department for their commitment to the City. He praised Councilmembers for their love
of their City and their commitment to community service.
PUBLIC COMMENTS
None.
COUNCIL COMMENTS /REQUESTS
Councilman Garbarino and Councilman Addiego requested that the meeting be adjourned in honor
of Roy Giovanni Uccelli. He noted that Mr. Uccelli, who was born in 1924, came from a family
that farmed in South San Francisco, which dated back to 1894. Mr. Uccelli was a partner at the
South San Francisco Scavenger Company and was dedicated to our City. He left behind his wife
Emily, three (3) daughters and four (4) grandchildren.
Councilman Addiego requested that the meeting be adjourned in honor of Romolo John Braschi,
who passed away at the age of 93. He recalled Mr. Braschi as the Principal of Sunshine Gardens
Elementary School and later as a member of the South San Francisco Unified School District Board
of Trustees. He was dedicated to education and was a gentle soul.
Mayor Pro Tempore Matsumoto reminded staff of her request that a -Senior Services Plan be
addressed in the upcoming budget cycle. She also raised concerns over an article she had seen
regarding Greenland Group, the Oyster Point Development Real Estate Investor from Shanghai.
The article detailed that Greenland withdrew from a 1.9 million square foot project in Southern
California and closed with discussion of a three (3) month old revelation that Greenland would sell-
off the Oyster Point land. She wanted to make her fellow Councilmembers aware of the issue and
requested that staff look into the situation and seek confirmation from Greenland.
At the request of Mayor Normandy, Chief of Police Azzopardi announced that Officer Chon, who
had been attacked by a suspect on Thanksgiving Day 2016, had been cleared for light duty. The
Department and its staff were uplifted by his return and inspired by his message of forgiveness.
Chief Azzopardi thanked Council, staff and the community for supporting Officer Chon and the
Department through this time.
PUBLIC HEARING
2. Report regarding an ordinance amending Chapter 20.410 of the South San Francisco Municipal
Code to prohibit indoor commercial cultivation of cannabis and cannabis microbusinesses, and to
permit commercial cannabis manufacturing, testing, distribution, and delivery uses. (Rozalynne
Thompson, Associate Planner)
2a. Ordinance amending Chapter 20.410 of the South San Francisco Municipal Code to
prohibit indoor commercial cultivation of cannabis and cannabis microbusinesses and to
permit commercial cannabis manufacturing, testing, distribution, and delivery uses.
Director of Economic and Community Development Greenwood presented the staff report
recommending that Council adopt an ordinance amending Title 20 of the South San Francisco
Municipal Code to prohibit commercial cannabis microbusinesses and commercial cannabis indoor
cultivation, citywide, and to regulate commercial cannabis manufacturing, distribution, testing, and
delivery -only activities in accordance with South San Francisco Municipal Code Chapter 20.550.
He explained that the proposed zoning amendments would prohibit indoor cultivation and cannabis
microbusinesses and conditionally permit manufacturing, testing, distribution, and delivery -only
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 2
uses. Director Greenwood explained that due to the Biotech Industry's prominence in the City, staff
had experience regulating manufacturing, testing, distribution and delivery. Director Greenwood
displayed slides of maps showing where the conditionally permitted uses would be allowed.
Public Hearing opened: 7:24 p.m.
Local business owner Joe Marzouk addressed Council. He stated that seven (7) years ago he
emigrated from Egypt. He had opened stores in shopping centers all around the Bay area. He opined
there was no point in banning the sale of Marijuana. The City could collect tax on the sale and
would lose money based on the prohibition. Further, purchasers would be able to obtain the product
in neighboring cities irrespective of South San Francisco's prohibition.
Small business owner Jean Martin addressed Council. She requested that Council consider
removing the security guard requirement from delivery service businesses. She noted that a security
guard would cost roughly $42,000 /year and would be cost prohibitive to a small business such as
hers. She further opined the threat facing a delivery service location to be minimal as the space is
typically small and obscure.
Mayor Normandy thanked the speakers for their comments. She reminded the public that the
Council had been against retail and outdoor cultivation since its first study session on the topic in
November 2016. She queried staff regarding the impact of the proposed legislation including issues
related to applications and licenses.
City Attorney Rosenberg advised that even if the ordinance was approved this evening, it would
require a second reading to pass. Upon second reading, the ordinance would not be effective until
May 2018. The ordinance would not limit the number of licenses for conditionally permitted uses,
but would define permissible locations.
In response to a question from Councilman Gupta, City Attorney Rosenberg advised the ordinance
is abundantly clear that the operating permits may be revoked upon any credible threat of federal
action against locally permitted cannabis uses.
Councilman Gupta advised he would support the recommended action, but cautioned that safety and
responsibility are contemporaneous with these newly permitted uses.
Councilman Addiego noted that he differed from his colleagues on the issue of indoor cultivation
and would likely vote against the legislation due to its prohibition.
In response to an inquiry from Councilman Garbarino, City Attorney Rosenberg confirmed that
anyone could grow six (6) plants for personal use indoors. However, the City's ordinance would
ban commercial cultivation whether indoor or outdoor.
Councilman Garbarino expressed a preference to remove the conditionally permitted uses from
borderline residential areas such as South Linden and Maple Avenues as well as near the end of
Shaw Road bordering upon a San Bruno Pocket Park. In response to an earlier public comment, he
questioned the amount of revenue cities would make on taxes from the sale of cannabis, as he
believed most of the sales were made in the underground market. He supported the legislation to the
extent it allowed the City to regulate uses permitted by the state.
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 3
Mayor Normandy indicated that she might consider indoor cultivation as a conditionally permitted
use given the other indoor farms permitted in the City.
Based on comments from the public and Council and at the request of Mayor Normandy, City
Attorney Rosenberg stated the proposed Ordinance could be modified as follows to: 1) only allow
the conditionally permitted uses in the East of 101 area; and 2) place the need for increase or
decrease of security guard coverage for delivery uses at the discretion of the Chief of Police.
Regarding the issue of permitting indoor commercial cultivation, Council could strike part 5 of the
proposed ordinance – prohibiting indoor commercial cultivation- and the moratorium would remain
intact. Staff could come back at a later time and propose regulations that would conditionally
permit indoor cultivation.
Councilmembers approved of this approach.
Public Hearing closed: 8:05 p.m.
Motion — Councilman Addiego /Second — Councilman Garbarino: to waive reading and introduce an
ordinance amending Chapter 20.410 of the South San Francisco Municipal Code as revised to limit
the conditionally permitted uses to the East of 101 area, amending the proposed security
requirement such that the Chief of Police may reserve the right and may require the number of
guards increased or decreased as necessary and finally to strike in full the portion prohibiting indoor
commercial cultivation. Approved by the following roll call vote: AYES: Councilmen Gupta,
Garbarino and Addiego and Mayor Normandy; NAYS: Mayor Pro Tempore Matsumoto;
ABSTAIN: None. ABSENT: None.
Mayor Pro Tempore Matsumoto advised she was not comfortable making decisions on the currently
proposed cannabis regulations until the enforcement picture becomes clearer.
ADMINISTRATIVE BUSINESS
3. Report regarding a resolution authorizing the City Manager to execute a consulting services
agreement with Lotus Water of San Francisco, California for the Orange Memorial Park Storm
Capture Project (Project No. sd1801) in an amount not to exceed $751,791 for a total budget of
$900,000. (Justin Lovell, Public Works Administrator and Mo Sharma, Project Manager, CSG
Consultants)
3a. Resolution No. 17 -2018 authorizing the City Manager to execute a consulting
services agreement with Lotus Water of San Francisco, California for the Orange
Memorial Park Storm Capture Project (Project No. sd1801.) in an amount not to
exceed $751,791 for a total budget of $900,000.
Public Works Administrator Lovell introduced the staff report and recommended that Council adopt
a resolution authorizing the City Manager to execute a Consulting Services Agreement with Lotus
Water of San Francisco, California for the Orange Memorial Park Water Capture Project in an
amount not to exceed $751,791 for a total budget of $900,000. Administrator Lovell then
introduced Mr. Sharma of CSG Consultants, the Project Manager for the Orange Memorial Park
Water Capture Project to provide a PowerPoint presentation on the recommendation.
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 4
Mr. Sharma provided a PowerPoint Presentation explaining the Orange Memorial Park Water
Capture Project. He advised the proposal embodied the most cost effective way to meet the state
mandate. Mr. Sharma further provided background on the agreement with Caltrans that would help
fund the project. He stated that in April 2017 Caltrans and the City executed a contract stating that
the City would provide land and complete the project required studies, design, permits,
construction, testing and reports by June 30, 2020. Caltrans would reimburse the City for the project
costs up to 9.5 million dollars as per its approved allocations for activities each year. The City
agreed to maintain the project improvements. Mr. Sharma stated this was the most cost effective
way to meet state mandates by: 1) conserving and re -using water resources; 2) reducing
downstream flooding by detaining portions of peak flows in Colma Creek; and 3) helping to meet
the Municipal Regional Permit requirements for the City and Caltrans.
Mr. Sharma explained the competitive proposal and interview process which resulted in the
selection of Lotus Water of San Francisco, because it offered the qualifications and services most
responsive to the City's project.
Mayor Pro Tempore Matsumoto approved of the project; however she was concerned that South
San Francisco was shouldering the burden of other cities further up the chain, including San
Francisco. She queried why the water wasn't being captured in these cities before reaching South
San Francisco.
Mr. Sharma acknowledged South San Francisco was taking a leadership role in this regard and
being conscientious. He believed this is why Caltrans was willing to partner and provide $9.5
million in funding.
In response to a question from Councilman Gupta, Administrator Lovell advised the basin would
remain suitable for park use and general recreation would not be restricted.
In response to a question from Councilman Addiego, Mr. Sharma confirmed the basin had a
capacity of six (6) acre feet.
Motion — Councilman Gupta/Second— Councilman Addiego: to approve Resolution No. 17 -2018
Unanimously approved by roll call vote.
Recess: 8:45 p.m.
Meeting resumed: 8:52 p.m.
4. Report regarding a resolution authorizing the City Manager to execute a consulting services
agreement with Akel Engineering Group, Inc. of Fresno, California for the Sewer Master Plan
(Project No. ss1801) in an amount not to exceed $372,724 for a total budget of $428,632. (Sam
Bautista, Principal Engineer)
4a. Resolution No. 18 -2018 authorizing the City Manager to execute a consulting
services agreement with Akel Engineering Group, Inc. of Fresno, California for the
Sewer Master Plan (Project No. ss1801) in an amount not to exceed $372,724 for a
total budget of $428,632.
Principal Engineer Bautista presented the staff report recommending that Council approve a
resolution authorizing the City Manager to execute a Consulting Services Agreement with Akel
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 5
Engineering Group, Inc. of Fresno, California for the Sewer Master Plan in an amount not to exceed
$372,724 for a total budget of $428,632. Engineer Bautista advised the Master Plan would cover the
area West of 101. He reminded Council that consulting services bid reviews are not adhered to the
lowest bidder requirement and instead rely on expertise, skill and experience evaluations. Further,
there were no Disadvantaged Business Enterprise (DBE) requirements as the project was locally
funded. After careful review, the interview panel selected Akel Engineering Group, Inc. for its
extensive sewer master planning expertise. Akel prepared similar plans for numerous communities
in California and Washington and had also worked with the City and prepared the East of 101
Sewer Master Plan.
Mayor Pro Tempore Matsumoto commented she was surprised to learn the City had a Sewer Master
Plan for the East of 101, but not the West where residents live. She queried whether there were
other infrastructure areas such as this that needed to be caught -up.
Engineer Bautista advised this was the main area that needed to be caught -up due to the
development boom in the City. He believed the last time the sewer plan for this area was reviewed
was around 1999.
Councilman Addiego queried the possibility of an impact fee to fund infrastructure needs of this
nature.
Engineer Bautista agreed such fees could address these needs and stated the issue was being
studied.
In response to inquiry from Councilman Addiego, Mr. Akel of Akel Engineering Group advised
that as part of the study pursuant to the consulting agreement, his group might find capacity
restrictions and condition information related to an ageing system.
Mayor Pro Tempore Matsumoto queried whether the review would address a major earthquake
scenario.
Mr. Akel stated this was a planning study aimed at assessing flow and condition. It would not
address an earthquake scenario.
Motion —Mayor Pro Tempore Matsumoto /Second — Councilman Garbarino: to approve Resolution
No. 18 -2018. Unanimously approved by roll call vote.
5. Report regarding a resolution supporting the South City Shuttle Project; authorizing the submittal
of an application for the San Mateo County Shuttle Program Funding in an amount of $836,000;
and committing a matching contribution of $279,000 from South San Francisco Local Measure A
funds. (Justin Lovell, Public Works Administrator)
5a. Resolution No. 19 -2018 supporting the South City Shuttle project; authorizing the
submittal of an application for the San Mateo County Shuttle Program Funding in an
amount of $836,000; and committing a matching contribution of $279,000 from
South San Francisco Local Measure A funds.
Public Works Administrator Lovell presented the staff report recommending that Council adopt a
resolution supporting the South City Shuttle Project and authorizing the submittal of an application
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 6
for the San Mateo County Shuttle Program Funding in an amount of $836,000 and committing a
matching contribution of $279,000 from South San Francisco Local Measure A funds.
Administrator Lovell provided a PowerPoint presentation reviewing the history of the shuttle,
displaying the new graphics wrapping the shuttle in 2017 and reviewing maps of the shuttle's
current routes. He also showed a ridership graph demonstrating the shuttle had reached peak
ridership in its current configuration. Administrator Lovell advised the grant would permit the City
to add a second shuttle to the program and alleviate the capacity issue presently facing the service.
In response to a question from Councilman Addiego, Administrator Lovell confirmed the new
shuttle would be running in the opposite direction of the current route.
Councilman Gupta stated support for the program and appreciated the flexibility that would be
provided by a second shuttle route.
In response to a question from Councilman Gupta regarding electronics restrictions on the shuttle,
Administrator Lovell advised the intent was to make sure that passengers were not disturbed by
loud cell phone conversations or music.
Mayor Pro Tempore Matsumoto stated that while she would support this proposal at the TA, she
was not in support of using the one (1) shot at funding for this application. She believed a route
focused on serving the needs of multiple schools in the District might be the best use.
Motion — Councilman Gupta/Second— Councilman Garbarino: to approve Resolution No. 19 -2018.
Unanimously approved by roll call vote.
6. Report regarding resolution of the City of South San Francisco approving the application for
Land and Water Conservation Fund Orange Memorial Park Phase 1 Multi - purpose Sports Field
Project in an amount not to exceed $2,000,000. (Sharon Ranals, Parks and Recreation Director)
6a. Resolution No. 20 -2018 of the City of South San Francisco approving the application
for Land and Water Conservation Fund for Orange Memorial Park Phase 1 Project
not to exceed $2,000,000.
Director of Parks and Recreation Ranals presented the staff report recommending that Council
approve an application for Land and Water Conservation Fund for Orange Memorial Park Phase 1
Project not to exceed $2,000,000. She advised an application from the City would require a
resolution certifying that the Council approves of the application and of availability of eligible
matching funds before submitting an application to the State. A minimum match of 50 percent is
required for the grant. Director Ranals advised the proposed application would help to fund Phase 1
of the rehabilitation and expansion of Orange Memorial Park. The proposal includes City -owned
vacant property adjacent to the current park site that would be combined with the existing park to
create a larger regional facility. In accordance with the 2007 Orange Park Master Plan, the
expanded park would include multiple baseball and soccer fields, a playground, restroom and
concession building, picnic areas, community gardens and additional amenities for public use.
In response to a question from Councilman Garbarino, Director Ranals advised artificial turf was
intended to be proposed for the fields, but cork and sand could be utilized as opposed to rubber.
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 7
Motion — Councilman Gupta/Second— Councilman Garbarino: to approve Resolution No. 20 -2018.
Unanimously approved by roll call vote.
7. Report regarding a resolution authorizing the City Manager to approve a purchase /installation
agreement with Calcon Systems of San Ramon, California for the purchase and installation of
variable frequency drives for the Sewer Pump Station No. 9 Variable Frequency Drives (VFDs)
Replacement Project (Project No. ss1602) in an amount not to exceed $109,901 for a total project
budget of $137,376. (Sam Bautista, Principal Engineer)
7a. Resolution No. 21 -2018 authorizing the City Manager to approve a
purchase /installation agreement with Calcon Systems of San Ramon, California for
the purchase and installation of variable frequency drives for the Sewer Pump
Station No. 9 Variable Frequency Drives (VFDs) Replacement Project (Project No.
ss1602) in an amount not to exceed $109,901, for a total project total of $137,376.
Principal Engineer Bautista presented the staff report recommending that Council approve a
purchase /installation agreement with Calcon Systems of San Ramon, California for the purchase
and installation of variable frequency drives for the Sewer Pump Station No. 9 Variable Frequency
Drives Replacement Project in an amount not to exceed $109,901 for a total project budget of
$137,376. Engineer Bautista advised two (2) variable frequency drives at Pump Station four (4) had
reached their useful life. Replacing these with two (2) new drives would maintain the efficiency and
effectiveness of the pump.
In response to a question from Councilman Gupta, Engineer Bautista advised the new VFDs would
be capable of maintenance and repair.
Motion — Councilman Gupta/Second— Councilman Addiego: to approve Resolution No. 21 -2018.
Unanimously approved by roll call vote.
CONSENT CALENDAR
8. Motion to approve the Minutes from the meeting of December 4, 2017 and January 10, 2018.
9. Motion confirming payment registers for January 24, 2018. (Richard Lee, Director of Finance)
10. Report regarding a motion to accept the 2017 Slurry Seal Project as complete in accordance
with plans and specifications, total construction cost $835,287. (Matt Ruble, Sr. Civil Engineer)
11. Report regarding a resolution approving the transfer of funds previously appropriated for Oyster
Point Development to a new and separate fund. (Richard Lee, Director of Finance)
11 a. Resolution No. 22 -2018 approving the transfer of all budget appropriations and
expenses related to the Oyster Point Development to a new and separate fund.
12. Report regarding adoption of an Ordinance amending Chapter 8.67 to the South San Francisco
Municipal Code revising the method of calculation for the Parkland Acquisition Fee and a Parks
Construction Fee for Non - Residential Developments. (Richard Lee, Director of Finance)
12a. Ordinance No. 1550 -2018 amending Chapter 8.67 to the South San Francisco
Municipal Code revising the method of calculation for the Parkland Acquisition Fee
and a Parks Construction Fee for Non - Residential Development.
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 8
Item No. 9: In response to a question from Mayor Pro Tempore Matsumoto regarding a payment to
Barrango, Finance Director Lee advised the payment was for the last three (3) months of holiday
decorations.
In response to a question regarding the nature of work done at Alta Loma Park, Director Ranals
advised the playground was replaced.
Item No. 10: In response to a question from Mayor Pro Tempore Matsumoto, Engineer Bautista
advised West Winston Manor was slurry sealed.
The Mayor Pro Tempore advised she would like streets all over the City to be reviewed for this
treatment.
Item No. 11: Mayor Pro Tempore queried the funding source relative to the Oyster Point DDA.
Director of Finance Lee replied the funding source was comprised of funds from the former
Redevelopment Agency, including $29 million in escrow.
Motion—Councilman Garbarino /Second — Councilman Gupta: to approve the Consent Calendar.
Unanimously approved by roll call vote.
ITEMS FROM COUNCIL - COMMITTEE REPORTS AND ANNOUNCEMENTS
13. Council of Cities Proxy Designation and City Selection Committee Appointments. (Liza
Normandy, Mayor)
Mayor Normandy advised she would serve as the Proxy with Mayor Pro Tempore Matsumoto and
then Councilman Garbarino as the alternates.
Councilmembers were unanimous in support of Councilman Addiego's nomination to serve on the
County Oversight Board. They commended him for the work he had done on the City's Oversight
Board on which he had served diligently since 2012.
Regarding general items from Council, Councilman Addiego noted the need for pavement striping
near the new AC Hotel- a premiere location in the City. He didn't believe that a study was needed
to address this immediate and pressing need.
Councilman Gupta notified Council and staff of ABAG Planning grants.
Councilman Garbarino reported on his week in Sacramento with the League of California Cities.
He noted that in meetings with legislators it became clear that some form of retooled RDA might
become available upon the next Governor's term. In meeting with Governor Brown it was clear
that the Governor was excited about transportation, housing and pension reform. However, he
expressed grave concern over prison overcrowding and did not believe in increasing the penalties
for certain crimes.
REGULAR CITY COUNCIL MEETING JANUARY 24, 2018
MINUTES PAGE 9
CLOSED SESSION
14. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code
Section 54956.8) Property: 938 Linden Avenue (APN 012 - 102 -020) City Negotiators: Alex
Greenwood and Nell Selander Negotiating Parties: City of South San Francisco, South San
Francisco Successor Agency and Robert DeLue, Patrick M. Spiteri, Sares Regis Group of Northern
California, and Joe Cassidy Under Negotiations: Price and terms for disposition of the property
Time entered Closed Session: 9:46 p.m.
Open Session resumed: 10:02 p.m.
Report out of Closed Session by Mayor Normandy: Direction was given, no reportable action.
ADJOURNMENT
Being no further business, Mayor Normandy adjourned the meeting at 10:02 p.m. in memory of
Roy Giovanni Uccelli and Romolo J. Braschi.
Submitted
City of"S -64_ ' San Francisco
REGULAR CITY COUNCIL MEETING
MINUTES
Approved by:
Liza Normandy, Mayor
City of South San Francisco
JANUARY 24, 2018
PAGE 10
MINUTES
SPECIAL MEETING
v o
c'QZip OR� CITY COUNCIL
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, JANUARY 29, 2018
5:30 p.m.
CALL TO ORDER TIME: 5:30 p.m.
ROLL CALL PRESENT: Councilmember Addiego, Mayor Pro Tempore
Matsumoto and Mayor Normandy.
ABSENT: Councilmen Garbarino and Gupta.
AGENDA REVIEW
None.
PUBLIC COMMENTS - comments are limited to items on the Special Meeting _ Agenda.
None.
ADMINISTRATIVE BUSINESS
1. Report regarding Board and Commission interviews and appointments to the Bicycle
and Pedestrian Advisory Committee (BPAC); Housing Authority, Planning
Commission, and San Mateo County Mosquito and Vector Control District
(SMCVCD). (Krista Martinelli, City Clerk)
a. Interview Applicants for Multiple Positions
5:30 p.m.: Priyoti Ahmed (Planning Commission; Housing Authority)
5:40 p.m.: Chris Levin -Young (Planning Commission, Housing Authority;
SMCVCD)
Council interviewed applicant Ahmed. Applicant Levin- Young interviewed at 7:30 p.m.
Recess: 5:52 p.m.
Meeting resumed: 6:03 p.m.
b. Interview Applicants for Multiple Positions and Consideration of
Acceptance of Late Application
5:50 p.m.: Liru Chin (Planning Commission; Housing Authority)
Council determined it would not hear the late application.
c. Interview Applicants for Housing Authority
6:00 p.m.: Lunor Simms
Previously interviewed applicant Ahmed. Applicant Mercado interviewed at 6:40 p.m.
Applicant Levin -Young was interviewed at 7:30 p.m.
Council interviewed Applicant Simms.
d. Interview Applicants for Planning Commission
6:10 p.m.: Michele Evans
6:20 p.m.: Wilson Leung
6:30 p.m.: Charles Lucero
6:40 p.m.: Luis Antonio Mercado
6:50 p.m.: BJ Patel
7:00 p.m.: Nicholas Peneyra
7:10 p.m.: Demetria Vong- Spillan
7:20 p.m.: Elaine Wang
7:30 p.m.: Christine Wong
Previously interviewed applicants Ahmed. Applicant Levin -Young was interviewed at
7:30 p.m.
Applicants Leung, Patel and Wong withdrew from consideration. Council interviewed applicants Evans,
Lucero, Mercado, Peneyra, Vong - Spillan, Wang and Wong.
e. Interview Applicants for BPAC
7:40 p.m.: Amir Thagavis
7:50 p.m.: Frank McAuley (by telephone)
Council interviewed applicants Thagavis and McAuley. Mr. McAuley interviewed by telephone earlier in
the evening.
f. Discussion and consideration of appointment of applicant to the Housing
Authority. Council may appoint one (1) applicant to a term expiring March
31, 2020.
Applicants: Ahmed, Levin - Young, Simms and Mercado.
Motion — Councilman Addiego /Second —Mayor Normandy: to appoint Luis Antonio Mercado to the
housing Authority for a partial term expiring March 31, 2020. Approved by the following roll call vote:
SPECIAL CITY COUNCIL MEETING JANUARY 29, 2018
MINUTES PAGE 2
AYES: Councilman Addiego, Mayor Pro Tempore Matsumoto and Mayor Normandy; NAYS: None;
ABSTAIN: None; ABSENT: Councilmen Gupta and Garbarino.
g. Discussion and consideration of appointment of applicant to the SMCVCD.
Council may appoint one (1) applicant to a term expiring December 31, 2021.
Applicant: Levin - Young.
Motion —Mayor Pro Tempore Matsumoto /Second — Councilman Addiego: to appoint Chris Levin —
Young to the San Mateo County Mosquito and Vector Control District for a term expiring December
31, 2021. Approved by the following roll call vote: AYES: Councilman Addiego, Mayor Pro
Tempore Matsumoto and Mayor Normandy; NAYS: None; ABSTAIN: None; ABSENT: Councilmen
Gupta and Garbarino.
h. Discussion and consideration of appointment of applicant to the Planning
Commission. Council may appoint one (1) applicant to a term expiring
December 31, 2018.
Applicants: Ahmed, Evans, Levin - Young, Lucero, Mercado,
Peneyra, Vong - Spillan, and Wang.
Motion — Councilman Addiego /Second —Mayor Pro Tempore Matsumoto: to appoint Michele Evans to
the Planning Commission for a term expiring December 31, 2018. Approved by the following roll
call vote: AYES: Councilman Addiego, Mayor Pro Tempore Matsumoto and Mayor Normandy;
NAYS: None; ABSTAIN: None; ABSENT: Councilmen Gupta and Garbarino.
i. Discussion and consideration of appointment of applicants to the BPAC.
Council may appoint two (2) applicants to the Commission.
Applicants: Thagavis and McAuley.
Motion— Councilman Addiego /Second— Mayor Pro Tempore Matsumoto: to appoint Frank McAuley
to the Bicycle and Pedestrian Advisory Committee (BPAC). Approved by the following roll call vote:
AYES: Councilman Addiego, Mayor Pro Tempore Matsumoto and Mayor Normandy; NAYS: None;
ABSTAIN: None; ABSENT: Councilmen Gupta and Garbarino.
Motion— Councilman Addiego /Second— Mayor Normandy: to appoint Amir Thagavis to the Bicycle
and Pedestrian Advisory Committee (BPAC). Approved by the following roll call vote: AYES:
Councilman Addiego, Mayor Pro Tempore Matsumoto and Mayor Normandy; NAYS: None;
ABSTAIN: None; ABSENT: Councilmen Gupta and Garbarino.
ADJOURNMENT
Being no further business, Mayor Normandy adjourned the meeting at 8:10 p.m.
itted: Approved:
sta a i, ' Clerk Liza Normandy, Mayor
City of Sou San Francisco City of South San Francisco
SPECIAL CITY COUNCIL MEETING JANUARY 29, 2018
MINUTES PAGE 3
MINUTES
SPECIAL MEETING
LIF CITY COUNCIL
OR��
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at:
MUNICIPAL SERVICES BUILDING
COUNCIL CHAMBERS
33 ARROYO DRIVE
SOUTH SAN FRANCISCO, CA
WEDNESDAY, JANUARY 29, 2018
5:45 p.m.
CALL TO ORDER TIME: 5:52 p.m.
ROLL CALL PRESENT: Councilman Addiego, Mayor Pro Tempore
Matsumoto and Mayor Normandy.
ABSENT: Councilmen Garbarino and Gupta.
AGENDA REVIEW
None.
PUBLIC COMMENTS - comments are limited to items on the Special Meeting Agenda.
None.
ADMINISTRATIVE BUSINESS
Report regarding a resolution adopting findings and authorizing a contract for
emergency repair work to address the storm drain failure and related repairs on
Junipero Serra Boulevard near Westborough Boulevard; and amending the 2017 -18
Public Works Department operating budget by $300,000 pursuant to Budget
Amendment No. 18.023. (Sam Bautista, Principal Engineer)
1 a. Resolution adopting findings and authorizing a contract for emergency repair work to
address the storm drain failure and related repairs on Junipero Serra Boulevard near
Westborough Boulevard; and amending the 2017 -18 Public Works Department
operating budget by $300,000 pursuant to Budget Amendment No. 18.023.
City Attorney Rosenberg advised Council that the proposed emergency resolution required a 4/5 vote.
Since only three (3) members of the Council were present, a vote on the item would not go forward.
However, staff was prepared to brief the Council on the required emergency repair work and a vote could
be taken at the upcoming February 14, 2018 Regular Meeting of the City Council.
Public Works Director Kim and Principal Engineer Bautista addressed Council. Mr. Kim advised that
staff was prepared to recommend that Council authorize a contract for emergency repair work to address
the storm drain failure and related repairs on Junipero Serra Blvd. near Westborough Blvd. The contract
would require a $300,000 amendment to the 2017 -18 Public Works Department Operating Budget.
Director Kim advised that on January 24, 2018, staff was called to Junipero Serra Blvd. just north of
Westborough Blvd. due to a failure in the storm drainage system located under the shoulder and bike path
of the northbound lanes of Junipero Serra Blvd. Upon review, staff determined the storm water
undermined and eroded the soil under the road section. Due to the dangerous condition, staff contacted
Interstate Grading & Paving of South San Francisco to implement a lane closure to prevent motorists
from driving in the affected lane. This initial emergency work was performed for the amount of $7,500.
The City, through its on -call contracts, called geotechnical engineers, Cotton Shires & Associates, to
assess the damage and recommend repair measures. Due to emergency circumstances, staff contacted
Interstate Grading & Paving and ProVen Management, Inc. of Oakland for repair work quotes. Both
contractors demonstrated the ability to mobilize, assess and repair the damaged storm drain main and
repair the condition by clearing out the debris, filling in the undermined cavity with engineered fill and
fixing the storm drain lines. Staff reviewed the two (2) proposals which came in as follows: 1) Interstate
Grading and Paving $229,989.88; 2) ProVen Management, Inc. $247,109.00. Staff recommended
selecting Interstate Grading and Paving to perform the emergency repair of the storm drain system. Staff
further recommended a contingency budget of $50,000 for emergency repair engineering by Cotton Shires
& Associates, which would be present on -site throughout the emergency.
Mayor Pro Tempore Matsumoto queried the potential duration of the emergency.
Director Kim advised the work could be completed within 2 -3 weeks and stabilized, and safely rerouted
with traffic right away.
Mayor Pro Tempore Matsumoto expressed concern over ageing water pipes in the City and queried
whether a plan would be determined.
Director Kim advised Council had approved a Sanitary Sewer Master Plan Consulting Agreement at its
January 24, 2018 Regular Meeting. However, there was room for additional review of water systems.
Councilman Addiego queried whether City staff had the capacity to block a lane and run traffic
interference.
Director Kim advised the type of lane closure affected by the emergency required a higher level of
construction equipment and geotechnical work. For example, the blocked storm drains were identified
and cleaned out and vegetation was cleared as the traffic control was being implemented.
City Attorney Rosenberg reminded Council that the item could be voted on at the February 14, 2018
Meeting of the City Council.
ADJOURNMENT
SPECIAL CITY COUNCIL MEETING JANUARY 29, 2018
MINUTES PAGE 2
Being no further business, Mayor Normandy adjourned the meeting at 6:03 p.m.
Su itted:
Y ista artin i, City erk
City of So an Francisco
SPECIAL CITY COUNCIL MEETING
MINUTES
Approved:
Liza Normandy, Mayor
City of South San Francisco
JANUARY 29, 2018
PAGE 3
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-111 Agenda Date:2/14/2018
Version:1 Item #:7.
Motion confirming payment registers for February 14, 2018.(Richard Lee, Director of Finance)
The payments shown in the attached payment register are accurate and sufficient funds were available for
payment (payroll items excluded).
Attachment: Payment Register
City of South San Francisco Printed on 2/8/2018Page 1 of 1
powered by Legistar™
VENDOR NAMEDATE CHECK #INVOICE #ACCOUNT #AMOUNT DESCRIPTION
Payments issued between and1/15/2018 2/4/2018 -City of South San Francisco
TOTAL PAYMENTS FOR PERIOD $2,096,125.04
Thursday, February 8, 2018 Page 38 of 38
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-34 Agenda Date:2/14/2018
Version:1 Item #:8.
Report regarding a resolution authorizing the acceptance of a $48,400 donation to the Parks and Recreation
Department from the South San Francisco Youth Baseball Association and Mike Callero Memorial Fund to
install an outfield fence at Callero Ballfield located on the Baden School campus,and amending the Parks and
Recreation Department’s Fiscal Year 2017-18 operating budget pursuant to budget amendment #18.021.
(Sharon Ranals, Director, Parks and Recreation)
RECOMMENDATION
It is recommended that the City Council adopt a resolution accepting a donation in the amount of
$48,400 from the South San Francisco Youth Baseball Association and Mike Callero Memorial Fund to
install an outfield fence at Callero Field located on the Baden School campus,and amending the Parks
and Recreation Department’s Fiscal Year 2017-18 operating budget.
BACKGROUND/DISCUSSION
For many years,the Parks and Recreation Department has been responsible for the maintenance of athletic
fields at certain South San Francisco Unified School District properties so that these sites can be enjoyed by co-
sponsored sports leagues and residents.This arrangement is authorized by the Joint Use Agreement between the
City and South San Francisco School District,which was most recently amended in 2008.The Joint Use
Agreement is effective for a 20 year term, and expires in 2028.
Callero Field is located on the Baden School campus,and is one of two fields the City maintains at this site.
This field is the primary field used by the Bronco and Pony Leagues,which serves youth ages 11 through 14
years old.This league,which is co-sponsored by the Parks and Recreation Department,serves nearly 200 youth
participants each year.
Beginning in the fall,staff began improving the field conditions at several ballfield locations,including Callero
Ballfield.This work consists of rebuilding the pitcher’s mound and batters boxes with clay bricks,ripping and
regrading the infield fines,improving and edging the turf,painting and repairing backstops and furnishings,
among many other improvements.In November,the City Council took action to authorize staff to accept the
donation of a scoreboard, which will be installed at this site in the coming months.
Larger renovations of this field have also been identified in the Capital Improvement Program as an out-year
project.Design is scheduled to begin in 2019-20.Staff does not expect that the fence installation project will
hinder any of these future improvements.
In staff’s discussions with league representatives,it was noted that an outfield fence at this site was one of their
highest priorities,and they identified funding to help offset the cost of this improvement.Staff has received
City of South San Francisco Printed on 2/8/2018Page 1 of 2
powered by Legistar™
File #:18-34 Agenda Date:2/14/2018
Version:1 Item #:8.
highest priorities,and they identified funding to help offset the cost of this improvement.Staff has received
quotes for this work from fencing contractors,in an amount not to exceed $48,400.Additional work will need
to be performed by staff to prepare the site for fence installation,including rerouting and capping irrigation
lateral lines,relocating sprinkler heads and modification of the outfield turf.This additional site preparation
work can be performed by Parks Maintenance staff and funded by the existing operating budget.
FISCAL IMPACT
The South San Francisco Youth Baseball Association and Mike Callero Memorial Fund has generously offered
to donate $48,400 to facilitate the installation of an outfield fence at Callero Ballfield.Funds from this donation
will be used to amend the Parks and Recreation Department’s Fiscal Year 2017-18 operating budget on a one-
time basis (budget amendment #18.021). Receipt of these funds does not commit the City to ongoing funding.
CONCLUSION
Receipt of these funds will offset the cost of installation of the improvements described above at Callero
Ballfield.It is recommended that the City Council accept the donation of $48,400 and amend the Parks and
Recreation Department’s Fiscal Year 2017-18 Operating Budget.
Attachment: Diagram of Fence Location
City of South San Francisco Printed on 2/8/2018Page 2 of 2
powered by Legistar™
Back Stop
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-35 Agenda Date:2/14/2018
Version:1 Item #:8a.
Resolution authorizing the acceptance of a $48,400 donation to the Parks and Recreation Department from the
South San Francisco Youth Baseball Association and Mike Callero Memorial Fund to install fencing at Callero
Ballfield located at the Baden School campus,and amending the Parks and Recreation Department’s Fiscal
Year 2017-18 operating budget pursuant to Budget Amendment #18.021.
WHEREAS,the City of South San Francisco (“City”)Parks and Recreation Department oversees the
maintenance of the Callero Ballfield located on the Baden School campus; and
WHEREAS,the South San Francisco Youth Baseball Association and Mike Callero Memorial Fund has
generously offered to donate $48,400 to facilitate the installation of an outfield fence at Callero Ballfield; and
WHEREAS,the City shall be responsible for all site preparation work,and the donation will be used to fund
fence material and installation; and
WHEREAS,staff recommends the acceptance of this donation in the amount of $48,400 from the South San
Francisco Youth Baseball Association and Mike Callero Memorial Fund; and
WHEREAS,the foregoing donation will be used to amend the Fiscal Year 2017-18 operating budget of the
Parks and Recreation Department.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco hereby
accepts a $48,400 donation from the South San Francisco Youth Baseball Association and Mike Callero
Memorial Fund,and amends the Parks and Recreation Department’s 2017-18 operating budget in order to
reflect an increase of $48,400.
*****
City of South San Francisco Printed on 4/16/2018Page 1 of 1
powered by Legistar™
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-50 Agenda Date:2/14/2018
Version:1 Item #:9.
Report regarding a resolution accepting $6,000 from the State of California,California Highway Patrol for the
“Every 15 Minutes”Program and amending the Police Department’s operating budget for Fiscal Year 2017-18
by approving budget amendment 18.022.(Jeff Azzopardi, Police Chief)
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution accepting $6,000 from the State of
California,California Highway Patrol (CHP)for the “Every 15 Minutes”program and amend the Police
Department’s operating budget for Fiscal Year 201718- by approving budget amendment 18.022.
BACKGROUND/DISCUSSION
The South San Francisco Police Department has implemented the “Every 15 Minutes”program for
approximately the last 13 years.As the Council may recall,every year the Police Department implements the
“Every 15 Minutes”program for the entire junior and senior student body at one of the City’s two public high
schools,then the alternate high school the following year to ensure every junior and senior high school student
in the City of South San Francisco will experience the benefits of the program.
In September of 2017,the South San Francisco Police Department submitted a grant application to the State of
California,CHP for funding in an attempt to seek partial reimbursement costs associated with the “Every 15
Minutes”program.The availability of the grants being offered by the State of California,CHP were limited and
the maximum amount an agency could qualify for was $6,000.The grant application was reviewed and
approved in November of 2017 by the CHP and the Police Department was awarded a grant for $6,000.This
amount will be used as reimbursement for the filming and production costs associated with this year’s program.
The goal of the grant is to assist law enforcement agencies with partial reimbursement of production costs
associated with funding the “Every 15 Minutes” Program.
Filming and production costs for the FY 2017-18 “Every 15 Minutes” Program consisted of the following:
Kingston Media $9,000
(Complete video production & 50 DVD
copies of short film @ El Camino Real)
CV Creations $2,168
(Sound/audio/video equipment for the 2018
“Every 15 Minutes” Program Assembly @
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File #:18-50 Agenda Date:2/14/2018
Version:1 Item #:9.
South San Francisco High School ___________________
Total $11,168
FISCAL IMPACT
Budget amendment 18.022 is for $6,000 in grant funding for the purpose of partial production expenses.The
funding source is the State of California, California Highway Patrol (CHP).
CONCLUSION
Adoption of this resolution will allow the City to accept $6,000 from the State of California,California
Highway Patrol (CHP)and amend the Police Department’s operating budget for Fiscal Year 2017-18 by
approving budget amendment 18.022.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-51 Agenda Date:2/14/2018
Version:1 Item #:9a.
Resolution accepting $6,000 from the State of California,California Highway Patrol for the “Every 15
Minutes”program and amending the Police Department’s operating budget for Fiscal Year 2017-18-by
approving budget amendment 18.022.
WHEREAS,staff recommends the acceptance of a grant in the amount of $6,000 for partial production
expenses from the State of California, California Highway Patrol (CHP); and
WHEREAS,the grant funding will be used to augment the operating budget of the Police Department for Fiscal
Year 2017-18.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City
Council hereby accepts the $6,000 grant from the State of California,California Highway Patrol (CHP)and
amends the Fiscal Year 2017-18 Police Department operating budget to reflect this increase of funds and that
the City Council does hereby approve budget amendment 18.022.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute a grant agreement and
any other necessary documents on behalf of the City to carry out the intent of this resolution,subject to
approval as to form by the City Attorney.
*****
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-52 Agenda Date:2/14/2018
Version:1 Item #:10.
Report regarding resolution acknowledging receipt of the Fiscal Year (FY)2016-17 audited financial
statements, including the Comprehensive Annual Financial Report.(Richard Lee, Director of Finance)
RECOMMENDATION
It is recommended that the City Council acknowledge receipt of the FY 2016-17 audited financial
statements.
BACKGROUND/DISCUSSION
The Budget Standing Committee accepted the FY 2016-17 year-end financial results on October 25,2017,
which were subsequently accepted by the City Council on November 8,2017.The accompanying audited
financial statements complete the FY 2016-17 year-end process.
Comprehensive Annual Financial Statement (CAFR) Memorandum on Internal Control (MOIC)
As stated on page 2 of the CAFR (Exhibit A of the associated resolution),the City’s independent auditor,Maze
and Associates,opined that the City’s financial statements present fairly,in all material respects,the City’s
financial position.The MOIC,Exhibit D of the associated resolution,indicated that there were no findings in
the auditor’s review of the City’s internal controls.
Entity-Wide Statement
The Entity-Wide Statement is the first primary section of the CAFR,and is comprised of the Statement of Net
Position and the Statement of Activities.Both statements collectively provide a macro-level look at the City of
South San Francisco’s financial condition.
The Statement of Net Position reports the City’s total net position,which is primarily the difference between
assets and liabilities.As indicated on page 27 of the CAFR,the City’s Total Net Position was $315 million as of
June 30,2017.Of the $315 million in Total Net Position,$222 million were attributed to Governmental
Activities,and $93 million to Business-Type Activities,which reflect all of the City’s proprietary services,
namely the Sewer,Storm Water,and Parking District funds.Governmental Activities reflect all other funds,
including the General Fund.
The Statement of Activities is essentially a profit and loss statement for each of the departments within the
City’s Governmental Activities and proprietary services of its Business-type Activities.As reflected on page 28
of the CAFR,the total net expense for all Governmental Activities was $71 million,while the total net revenue
for Business-Type Activities was $2 million.The change in net position is derived when combining general
revenues with General Activities net expense and Business-Type Activities net revenue.
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File #:18-52 Agenda Date:2/14/2018
Version:1 Item #:10.
In FY 2016-17,Governmental Activities had a change in net position of $130 million,largely due to the
transfer of $52 million in properties from the Successor Agency as listed on the Long Range Property
Management Plan (LRPMP).The accounting entry to record the property transfer recognized revenue on a non-
cash basis.As such,of the $52 million in transferred property from the Successor Agency,$20.6 million is
being held for redevelopment.Cash-based revenue will be received once the properties held for redevelopment
have been sold.The City will then receive a proportional share of the net sale proceeds along with the other
taxing entities in the former Redevelopment Agency.Of the remainder,$24 million reflected property that was
conveyed to the City for governmental purposes, thus increasing the City’s land and building capital assets.
Fund Financial Statements
The next major section of the CAFR is known as the Fund Financial Statements,which provide a deeper dive
into the City’s financial position at the fund level for both governmental and proprietary funds.As reported in
the Governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances on page 36 of
the CAFR,General Fund Ending Fund Balance increased by $33 million,largely due to the $20 million in
property transferred from the Successor Agency, as well as Measure W revenues of $9 million.
Pension/Other Post-Employment Benefits (OPEB) Liabilities
The final section to highlight is within the Notes to Basic Financial Statements section that discusses the City’s
pension and OPEB liabilities.In the prior Fiscal Year,as required by Governmental Accounting Standards
Board (GASB)Statement Number 68,the City accounted for $130 million in net pension liability,which is
calculated by measuring pension plan assets against liabilities.As indicated in the Statement of Net Position on
page 27 of the FY 2016-17 CAFR,the City’s net pension liability was $152 million,an increase of $22 million
compared to the prior year.As indicated in Note 7 -Pension Plan on page 81 of the CAFR,the primary driver
behind the increase in net pension liability was the interest on the total pension liability.
As of June 30,2017,in accordance with GASB Statement Number 45,the City’s reported a net OPEB
obligation of $26 million,which reflects an amortization of the Unfunded Actuarial Accrued Liability (UAAL)
of $57 million.Beginning in FY 2017-18,GASB Statement Number 75 will replace GASB 45,and require the
City to record the full UAAL on the Statement of Net Position within the Entity-Wide Statement.
CONCLUSION
The audited financial statements reflect the City’s prudent stewardship of public funds.While the City’s current
financial position is copacetic,staff will continue to keep the Council apprised of significant financial trends
that will have an impact on the City’s long term financial sustainability.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-55 Agenda Date:2/14/2018
Version:1 Item #:10a.
Resolution acknowledging receipt of the Fiscal Year 2016-17 audited financial statements,including the
Comprehensive Annual Financial Report.
WHEREAS,the Budget Standing Committee accepted the FY 2016-17 year-end financial results on October
25, 2017; and
WHEREAS, the City Council accepted the FY 2016-17 year-end financial results on November 8, 2017; and
WHEREAS,the City of South San Francisco’s independent auditor opined that that the City’s financial
statements present fairly, in all material respects, the City’s financial position; and
WHEREAS,the Memorandum on Internal Control indicated that there were no findings in the auditor’s review
of the City’s internal controls; and
WHEREAS, the City’s FY 2016-17 audited financial statements affirm prudent financial stewardship.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby
accept the FY 2016-17 audited financial statements, attached herein as Exhibits A, B, C, and D.
*****
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EXHIBIT A
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2017
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2017
Table of Contents
I INTRODUCTORY SECTION I
Table of Contents ................................................................................................................................................. i
Letter of Transmittal ........................................................................................................................................... v
Certificate of Achievement for Excellence in Financial Reporting ................................................................. ix
Organization Chart ............................................................................................................................................. x
City Council and Directory of City Officials .................................................................................................... xi
I FINANCIAL SECTION I
Independent Auditor's Report ........................................................................................................................ I
Management's Discussion and Analysis ........................................................................................................ 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ................................................................................................................... 27
Statement of Activities ........................................................................................................................ 28
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet .................................................................................................................................. 3 2
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities ..... 34
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 36
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities .......................................................................................................... 3 8
Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual-
Budgetary Basis:
General Fund ......................................................................................................................... 3 9
Low and Moderate Income Housing Assets ......................................................................... 40
Major Proprietary Funds:
Statement of Net Position ............................................................................................................... 42
Statement of Revenues, Expenses, and Changes in Fund Net Position ......................................... 43
Statement of Cash Flows ................................................................................................................. 44
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2017
Table of Contents
I FINANCIAL SECTION (Continued) I
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................... 46
Statement of Changes in Fiduciary Net Position ............................................................................ 4 7
Notes to Basic Financial Statements ........................................................................................................ 49
Required Supplementary Information:
Schedule of Changes in Net Position Liability and Related Ratios-
Miscellaneous and Safety Plan ............................................................................................. 98
Schedule of Contributions -Miscellaneous and Safety Plan ......................................................... 99
Schedule of Changes in Net Pension Liability and Related Ratios ............................................. 100
Schedule of Contributions -Safety Agent ................................................................................... 101
Other Post-Employment Benefits Schedule of Funding Progress ............................................... 102
Supplementary Information:
General Fund:
Combining Balance Sheet. ................................................................................................................ 106
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ....................................................................................................................... 107
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual -(Non GAPP Legal Basis) ............................................ 108
Major Governmental Funds Other Than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual:
Capital Improvement Capital Projects Fund (Non GAAP Legal Basis) ..................................... 112
East of 101 Sewer Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ................. 113
East of 101 Traffic Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............... 114
Child Care Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............................. 115
Developer Deposits Capital Projects Fund (Non GAAP Legal Basis) ................................... 116
Capital Infrastructure Reserve Fund (Non GAAP Legal Basis) ............................................. 117
II
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2017
Table of Contents
I FINANCIAL SECTION (Continued)
Non-major Governmental Funds:
Combining Balance Sheet. ................................................................................................................ 122
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ....................................................................................................................... 126
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances -Budget and Actual .................................................................................... 130
Internal Service Funds:
Combining Statement of Net Position .............................................................................................. 139
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 140
Combining Statement of Cash Flows ............................................................................................... 141
Fiduciary Funds:
Statement of Changes in Assets and Liabilities -Agency Fund ................................................... 144
I STATISTICAL SECTION I
Net Position by Component-Last Ten Fiscal Years .................................................................... 147
Changes in Net Position -Last Ten Fiscal Years ........................................................................... 148
Fund Balances of Governmental Funds -Last Ten Fiscal Years .................................................. 150
Changes in Fund Balance of Governmental Funds -Last Ten Fiscal Years ................................ 152
Assessed and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years ................... 154
Property Tax Rates -Direct and Overlapping Governments -
Last Ten Fiscal Years ................................................................................................................ 15 5
Principal Property Taxpayers-Current Year and Nine Years Ago .............................................. 156
Twenty Largest Taxable Property Owners for Merged RDA Project Area .................................. 157
Property Tax Levies and Collections-Last Ten Fiscal Years ...................................................... 158
Ratio of Outstanding Debt by Type -Last Ten Fiscal Years ........................................................ 159
Computation of Direct and Overlapping Debt ............................................................................... 160
111
CITY OF soum SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2017
Table of Contents
I STATISTICAL SECTION (Continued) I
Computation of Legal Bonded Debt Margin .................................................................................. 161
Revenue Bond Coverage Sewer Rental Enterprise Fund-Last Ten Fiscal Years ....................... 162
Sewer Debt Service Coverage Sewer Rental Enterprise Fund-Last Five Fiscal Years .............. 163
Redevelopment Pledged Revenue Coverage -Last Seven Fiscal Years ...................................... 164
Demographic and Economic Statistics -Last Ten Fiscal Years ................................................... 165
Principal Employers -Current Year and Nine Fiscal Years Ago ................................................. 166
Full-Time Equivalent City Governmental Employees by Function -Last Ten Fiscal Years ...... 167
Operating Indicators by Function/Program -Last Five Fiscal Years ........................................... 168
Capital Asset Statistics by Function/Program -Last Ten Fiscal Years ........................................ 169
Miscellaneous Information -Last Three Fiscal Years .................................................................. 170
IV
F I NANCE DEPARTMENT
650-877-8507
December 15, 2017
Honorable Mayor and Members
Of the City Counci l
City of South San Francisco
South San Francisco, California
C ITY COUNCIL 2017
PRADEEP GUPTA, PH.D ., MAYOR
LIZA NORMANDY, VICE MAYOR
KARYL MATSUMOTO, COUNCILMEMBER
RICHARD A. GARBARINO, COUNCILMEMBER
MARK ADDIEGO, COUNCILMEMBER
MIKE FUTRELL, CITY MANAGER
The Comprehensive Annual Financial Report (CAFR) of the City of South San
Francisco (the City) for the fiscal year ended June 30, 2017, is hereby submitted_
Responsibility for the accuracy of the data, and the completeness and fairness of
the presentation, including all disclosures, rests with the City . To the best of our
knowledge and belief, the enclosed data is accurate in all material respects and
is reported in a manner designed to present fairly the financial position and
results of operations of the various funds of the City. All disclosures necessary to
enable the reader to gain an understanding of the City's financial activities have
been included.
This report includes all financial activities of the City of South San Francisco,
including financial information for the City, as the primary government, and for its
component units, for which the City is considered financially accountable. The
component units are included because of the significance of their governing,
operational, and/or financial relationships with the City. The Successor Agency
that was created due to the Redevelopment Agency dissolution is also included
in this report.
Management's Discussion & Analysis (MD&A) provides a narrative introduction
overview and analysis to accompany the basic financial statements. This letter of
transmittal is designed to complement the MD&A and should be read in
conjunction with it. The MD&A is found immediately following the report of the
independent auditor in the financial section.
BACKGROUND OF THE CITY
The City encompasses approximately 9.5 square miles and has a population of
64,451. It employs approximately 464 full-time regular employees. South San
400 GRAND AVENUE • P .O . BOX 711 • SOUTH SAN FRANCISCO, CA 94083
v
Francisco is a full service city which includes public safety (police, fire and
paramedics), libraries, parks, cultural and recreational activities, senior citizen
services, public works, public improvements, engineering, planning, building
regulation, economic development, drainage, street lighting, and general
administrative services. Sewer service, downtown parking operations, and storm
water management are accounted for in the City's enterprise funds. The
Conference Center Authority is included in the financial statements by discrete
presentation -that is, the Authority's financial data is reported in a column
separate from the financial data of the City. Water and solid waste services are
provided by private entities.
South San Francisco was incorporated and became a general law city of the
State of California on September 19, 1908. The form of government is the
Council-Manager plan. The Council is composed of a Mayor and four Council
Members who are elected at large. Each Council Member serves a term of four
years, with a rotating Mayor chosen by majority vote of the Council, for a term of
one year. The City Manager is the administrative head of the government of the
City, under the direction of the City Council. The offices of City Clerk and City
Treasurer are elected. The City Attorney is appointed by the City Council.
All department heads are appointed and serve under the administrative direction
of the City Manager. All other officers and employees of the City are appointed
by department heads.
FINANCIAL INFORMATION
In developing and appraising the City's accounting system, consideration is given
to the adequacy of internal accounting controls. Internal accounting controls are
designed to provide reasonable but not absolute assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; (2) the
reliability of financial records for preparing financial statements and maintaining
accountability for assets; and (3) transactions being properly executed in
accordance with management's authorization.
The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the evaluation of
costs and benefits requires estimates and judgments by management.
Basic characteristics of sound internal accounting control include segregation of
accounting duties, approvals of accounting transactions, and regular
reconciliation of detail and control records.
All internal control evaluations occur within this framework. We believe that the
City's internal accounting controls adequately safeguard assets and provide
reasonable assurances of proper recording of financial transactions.
vi
The City adopts fiscal year budgets for its general, special revenue, debt service,
enterprise, and capital project funds. The government also maintains an
encumbrance accounting system as one technique of accomplishing budgetary
control. Encumbered amounts lapse at year-end. However, encumbrances
generally are reappropriated as a part of the following year's budget.
The City's Reserves Policy is aligned with the Government Finance Officers
Association (GFOA) best practices recommendation for reserves, setting aside
15-20 percent of operating revenues. Given the ongoing growth trend in General
Fund operating revenues, the City's Reserves have grown commensurately,
which is reflected on the Fiscal Year 2016-17 financial statement.
The Fiscal Year 2016-17 Adopted Budget reflected the priorities of the City's
Strategic Initiatives. One of the primary strategic initiates was to maintain, train
and support a high performing team of City employees, which manifested itself in
the current financial statement through higher salary and benefit costs due to the
labor negotiation process, which served to attract and retain highly qualified
employees by offering competitive employee compensation packages.
To accomplish a multi-year perspective on financial planning, the City has used a
five year model in prior years.
Debt Administration
The Successor Agency has outstanding tax allocation bonds and lease revenue
bonds. These are not considered to be general tax-supported obligations. There
are also various capital leases and notes payable in City's governmental and
proprietary funds.
Capital Assets
The City's capital assets are comprised of land, buildings, infrastructure,
machinery, equipment, furniture, fixtures, and vehicles owned and used by
general government and proprietary functions. Assets are reported within the
basic financial statements.
Risk Management
The City maintained a risk management program for workers' compensation,
general liability, and property damage. As part of this comprehensive plan,
monies have accumulated in the self-insurance internal service fund to meet
potential losses. In addition, a safety committee of City employees reviews all
accidents and recommends preventive measures to minimize future accident-
related losses. The City's deductible or retention levels of its workers
compensation, general liability and property damage insurance policies are
$500,000, $100,000, and $5,000, respectively. A third party administrator
handles workers' compensation claims. The Association of Bay Area
VII
Citizens of South San Francisco
City Council
Pradeep Gupta, Ph.D., Mayor
City Clerk -Liza Normandy, Vice Mayor -City Treasurer
Krista Martinelli Mark Addiego, Council member Frank Risso
Richard A. Garbarino, Council member
Karyl Matsumoto, Councilmember
City Attorney
Jason Rosenberg
Assistant City Manager I City Manager Communications Director Chief Sustainability Officer --Marian Lee Mike Futrell Leslie Arroyo
I
Information Technology
Department
Administrative Departments Operating Departments
Finance Director Econ. & Comm. Dev. Dir. Public Works Director -...._
Richard Lee Alex Greenwood Euneiune Kim
Human Resources Director Library Director Fire Chief -_,_
LaTanya Bellow Valerie Sommer Gerry Kohlmann
Parks and Recreation Director Chief of Police --Sharon Ranals Jeff Azzopardi
x
City Council & Directory of Officials
City Council
Pradeep Gupta, Ph.D.
Liza Normandy
Mark N. Addiego
Richard A. Garbarino
Karyl Matsumoto
Elected Officials
Krista Martinefli
Frank Risso
Appointed Officials
Mike Futrell
Marian Lee
Leslie Arroyo
Richard Lee
LaTanya Bellow
Tony Barrera
Alex Greenwood
Gerry Kohlmann
Jeff Azzopardi
Valerie Sommer
Eunejune Kim
Sharon Ranals
Budget Subcommittee
Pradeep Gupta, Ph.D.
Liza Normandy
Mayor
Vice Mayor
Councilmember
Councilmember
Councilmember
City Clerk
City Treasurer
City Manager
Assistant City Manager I Chief Sustainability Officer
Communications Director
Finance Director
Human Resources Director
Chief Innovation Officer
Economic & Community Development Director
Fire Chief
Chiefof Police
library Director
Public Works Director
Parks & Recreation Director
XI
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INDEPENDENT AUDITOR'S REPORT
Honorable Members of the City Council
City of South San Francisco, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of South San Francisco
(City), California, as of and for the year ended June 30, 2017, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the Table of Contents. We did not
audit the component unit financial statements of the South San Francisco Conference Center Authority (Authority),
which is discretely presented and represents 1 %, 2%, and 2%, respective, of the assets, net position, and revenue of
the entity-wide reporting entity.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express op1mons on these financial statements based on our audit. These financial
statements of the Authority were audited by other auditors, whose report thereon has been furnished to us and our
opinion, insofar as it relates to the amounts included for the Authority, is based solely on the report of these
auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
1
1
Opinions
In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate
remaining information of the City as of June 30, 2017, and the respective changes in financial position and,
where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as
part of the basic financial statements for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's Discussion
and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The Introductory Section, Supplemental Information, and
Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not
required parts of the basic financial statements.
The Supplemental Information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on
them.
2
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2017
on our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City's internal control over financial reporting and compliance.
~}e-14~
Pleasant Hill, California
December 14, 2017
3
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Government Accounting Standards Board Statement 34 (GASB 34) requires the City of South
San Francisco to provide an overview of its financial activities for the fiscal year. Please read
this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements.
FISCAL YEAR (FY) 2016-17 FINANCIAL HIGHLIGHTS
Summary:
In FY 2016-17, the South San Francisco Successor Agency of the former Redevelopment
Agency transferred property from its Long Range Property Management Plan (LRPMP) to the
City of South San Francisco. The carrying value of the properties, which is accounted for in
General Fund Use of Money and Property revenue of $20.6 million as property held for
redevelopment. Once the properties have subsequently been sold, the City will receive a share of
the net proceeds, along with the other taxing entities included in the former Redevelopment
Agency.
The General Fund, excluding the $20.6 million in property held for redevelopment, ended FY
2016-17 with a surplus of $12.7 million. The majority of the $12.7 million surplus was used to
assign or commit General Fund reserves for outstanding purchase orders and multi-year capital
projects. Reserves assigned for outstanding purchase orders increased from $1.5 million to $5.2
million. Reserves committed for multi-year capital projects, including the Community Civic
Campus, increased from $3.7 million to $11.8 million. All of the above changes in reserves are
funded by the General Fund operating surplus. In addition, General Fund reserves were fully
funded in accordance with the City's Reserves Policy, which follows the Government Finance
Officers' Association (GFOA) best practice of 15-20% of operating revenues. After meeting the
City's reserves requirement, the City Council authorized transfer of $2.3 million in remaining
surplus to the Infrastructure Reserves.
During FY 2016-17, Finance Department staff reclassified Property Tax in lieu of Vehicle
License Fee (VLF) from the Intergovernmental revenue category to the Property Tax revenue
category. This revenue reclassification accounts for a legislative change from 2004, where the
State of California eliminated the allocation of Vehicle License Fees to local agencies, and
backfilled the lost revenue with an additional share of property tax revenues.
General Fund revenues (excluding operating transfers in and $20.6 million in property held for
redevelopment) increased by $12.3 million compared to the prior year. The primary drivers of
the year-over-year increase were property tax, sales tax and permit revenues. Property Tax
revenues, accounting for the Property Tax in lieu of VLF reclassification discussed above,
increased by $2.8 million, reflecting steady growth in assessed value of the City's secured
property tax roll. Measure W, the City's half-cent transactions and use tax, was implemented in
April 2016, thus FY 2016-17 was the first full year with Measure W in place. As such, Sales Tax
revenues increased $6.8 million. Permit revenues increased $927 thousand, indicative of major
commercial developments in the City's East of 101 area.
5
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
City-wide financial highlights of the year include the following:
• Total Net Position for Governmental Activities in FY 2016-17 increased $58.6 million in
comparison to the prior year, from $163.4 million to $222.0 million. The increase in net
position was evident through changes in all asset categories -cash and investments, other
assets, and capital assets.
• Governmental cash and investments increased by $17. 7 million, of which the General Fund
represents $14.6 in additional cash and investments, reflecting the year over year revenue
increases discussed above. In addition, cash and investments within the City Housing Fund
increased by $1.3 million, largely due to the sale of a City-owned property located at 380
Alta Vista. Cash and investments in the Developer Contributions Fund increased by $2.6
million, representative of $633 thousand in General Plan Maintenance Fees and $600
thousand in developer contributions that were recognized as a negotiated community benefit
fee pursuant to a development agreement. Offset by reduction of $3 .1 in the Capital
Infrastructure Reserve Fund, which reflected a planned spend of existing resources to fund
one-time expenditures.
• Governmental other assets increased by $18.6 million, while capital assets increased by
$22.6 million compared to the prior year. The increase within both categories was due to the
transfer of property from the Successor Agency to the City. The properties that were
designated for governmental use in the Long Range Property Management Plan were given
the City at no cost, while taxing entities will proportionally share the net proceeds of
properties that were designated for redevelopment once they have been sold.
• Governmental outflows related to pension increased from $12.6 million to $28.3 million,
while deferred inflows related to pension decreased from $11.2 million to $5 .2 million. The
change primarily reflected the impact of variance between CalPERS discount rate and its
actual return on investment.
• Expenses for Governmental Activities increased by $12.1 million, largely due to increases in
employee salaries as negotiated through the collective bargaining process as well as increases
in pension costs due to ongoing amortization of investment losses with CalPERS.
• Business-type program expenses increased by $4.5 million in FY 2016-17, most notably in
the Sewer Fund. The year-over-year increase was largely due to a significant reduction in
capital expenses compared to the prior year. The Sewer Fund, as a proprietary fund, offsets
capital expenses when realizing new capital asset additions. As such, the capital expense
offset was larger in the prior year.
• Property tax revenues, accounting for the reclassification of Property Tax in lieu of VLF,
increased $2.9 million, or 9.2 percent compared to the pnor year. The increase was
indicative of the City's robust secured property tax base.
6
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
• Sales tax revenues increased by $6.8 million, or 38.2 percent over the prior fiscal year.
Measure W, the City's half-cent transactions and use tax was implemented in April 2016.
Thus, FY 2016-17 was the first full fiscal year that Measure W was in place, and represented
the crux of the increase.
• Permit revenues for all Governmental Funds increased $927 thousand, or 13.4 percent over
the prior fiscal year, indicative of the continuing robust development climate in the East of
101 area of South San Francisco and the greater San Francisco Bay Area.
• In FY 2016-17, Transient Occupancy Tax (TOT) revenues increased by $189 thousand, the
fourth consecutive year of record breaking revenues, reflecting the trend of high occupancy
and high room rates.
OVERVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
This Comprehensive Annual Financial Report is in six parts:
1) The Introductory Section, which includes the Transmittal Letter and general information;
2) Management's Discussion and Analysis (this part);
3) The Basic Financial Statements, which include the Government-wide and the Fund
Financial Statements, along with the notes accompanying these statements;
4) Required Supplementary Information and the accompanying notes;
5) Other Supplementary Information including combining statements for non-major
governmental funds, internal service funds, other budgetary information, and a fiduciary
statement of changes in assets and liabilities; and
6) The Statistical Section.
Basic Financial Statements
The Basic Financial Statements are comprised of the City-wide Financial Statements and the
Fund Financial Statements. These two sets of financial statements provide two different views of
the City's financial activities and financial position.
The City-wide Financial Statements provide a longer-term view of the City's activities as a
whole, and consist of the Statement of Net Position and the Statement of Activities. The
Statement of Net Position provides information about the financial position of the City as a
whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to
the basis used by corporations. The Statement of Activities provides information about all the
City's revenues and all its expenses, also on the full accrual basis, with the emphasis on
measuring net revenues or expenses of each the City's programs. The Statement of Activities
provides a detailed explanation of the change in Net Position for the year.
7
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
All the amounts in the Statement of Net Position and the Statement of Activities are separated
into Governmental Activities and Business-type Activities in order to provide a summary of
these two activities of the City as a whole.
The Fund Financial Statements report the City's operations in more detail than the government-
wide statements and focus primarily on the short-term activities of the City's General Fund and
other Major Funds. The Fund Financial Statements measure only current revenues, expenditures
and fund balances; they exclude capital assets, long-term debt and other long-term amounts.
Major Funds account for the major financial activities of the City and are presented individually,
while the activities of Non-major funds are presented in summary, with subordinate schedules
presenting the detail for each of these other funds. Major Funds are explained below.
The fiduciary statements provide financial information about the activities of Non-Obligated
Assessment Districts, for which the City acts solely as agent.
Note 1 to the Basic Financial Statements provides a summary of the City's significant
accounting policies, fund categories, and fund types.
City-wide Financial Statements
The Statement of Net Position and the Statement of Activities present information about the
following:
• Governmental activities -All of the City's basic services are considered to be governmental
activities, including general government, fire, police, public works, parks and recreation,
library, and economic and community development. These services are supported by general
City revenues such as taxes, and by specific program revenues from grants, contributions,
and fees.
The City's governmental activities also include the City of South San Francisco Capital
Improvements Financing Authority, as the City Council also governs this entity.
• Business-type activities -All the City's enterprise activities are reported here, including
wastewater treatment, parking, and storm water management. Unlike governmental services,
user fees fully support most of these services.
• Component Unit -The City of South San Francisco Conference Center Authority comprises
the component unit. The Authority serves the City and other interests and it has a governing
body separate from the City Council.
Citywide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole.
8
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City's most
significant funds, called Major Funds. The concept of major funds, and the determination of
which are major funds, was established by GASB Statement 34 and replaces the concept of
combining like funds and presenting them in total. Instead, each Major Fund is presented
individually, with all Non-major Funds summarized and presented only in a single column.
Subordinate schedules present the detail of these Non-major funds. Major Funds present the
major activities of the City for the year, and may change from year to year as a result of changes
in the pattern of City's activities. Fund Financial Statements include governmental, enterprise
and internal service funds as discussed below.
Governmental Fund Financial Statements are prepared on the modified accrual basis, which
mean they measure only current financial resources and uses. Capital assets and other long-lived
assets, along with long-term liabilities, are not presented in the Governmental Fund Financial
Statements.
Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis,
as in the past, and include all their assets and liabilities, current and long-term.
Since the City's Internal Service Funds provide goods and services only to the City's
governmental and business-type activities, their activities are reported only in total at the Fund
level. Internal Service Funds may not be Major Funds because their revenues are derived from
other City Funds. These revenues are eliminated in the citywide financial statements and any
related profits or losses are returned to the activities, which created them, along with any residual
net position of the Internal Service Funds.
Comparisons of Budget and Actual financial information are required in the Basic Financial
Statements only for the General Fund and other Major Funds that are Special Revenue Funds.
Fiduciary Statements
The City is the agent for certain assessment districts, holding amounts collected from property
owners which await transfer to these Districts' bond trustees. The City's fiduciary activities are
reported in the separate Statement of Fiduciary Net Position and the Statement of Changes in
Fiduciary Net Position. These activities are excluded from the City's other financial statements
because the City cannot use these assets to finance its own operations.
9
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
This analysis focuses on net position and changes in net position of the City's Governmental
Activities (Table and Charts 1 through 3) and Business-type Activities (Tables 4 and 5)
presented in the City-wide Statement of Net Position and Statement of Activities. A comparative
analysis is presented for fiscal years 2016-17 and 2015-16.
Governmental Activities
Governmental Net Position
Table 1
Governmental Net Position at June 30
(In Millions)
2017 2016
Cash and investments $ 117.0 $ 99.3
Other assets 31.5 12.9
Capital assets 256.0 233.4
Total assets 404.5 345.6
Total outflows related to pension 28.3 12.6
Total outflow of resources 28.3 12.6
Long-term debt outstanding 11.8 12.4
Other liabilities 193.8 171.1
Total liabilities 205.6 183.5
Deferred inflows related to pension 5.2 11.2
Total deferred inflow of resources 5.2 11.2
Net position:
Net investment in capital assets 254.3 231.1
Restricted 54.5 52.4
Unrestricted (86.8) (120.1)
Total net position $ 222.0 $ 163.4
10
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
The total net position for Governmental Activities increased by $58.6 million in FY 2016-17
compared to the prior year, primarily due to increases in every asset category. The majority of
the $17. 7 million increase in cash and investments was due to additional property tax, sales tax,
and permit revenues. The year over year increase in property tax and permit revenues were
demonstrative of the current robust economy in South San Francisco. Measure W, a half-cent
transactions and use tax, was implemented as of April 1, 2016, thus FY 2015-16 only included
two advances from the State Board of Equalization, while FY 2016-17 represented the first full
fiscal year of the tax measure being in place.
Other assets increased by $18.6 million, while capital assets increased by $22.6 million, both
changes indicative of property transferred from the Successor Agency to the City for both
governmental use and redevelopment purposes.
Table 2
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Expenses
General government
Fire department
Police department
Public works department
Recreation and community services
Library
Economic and community development
Interest on long-term debt
Total expenses
Revenues
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
Total program revenues
General revenues:
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Other taxes
Motor vehicle in lieu
Property taxes in lieu
Investment earnings
Miscellaneous
Extraordinary Item
Total general revenues
Total revenues
Excess (deficiency) before transfers
Transfers
Change in net position
Net position -beginning•
Net position -ending
11
2016-17
$10.3
25.8
25.8
12.4
15.2
5.2
8.9
$103.6
$27.3
4.5
0.6
$32.4
$29.1
24.1
13.6
9.8
6.1
0.6
2.4
45.2
$130.9
$163.3
$59.7
( 1.1)
58.6
163.4
$222.0
2015-16
$9.0
22.5
23.2
11.9
12.9
4.4
7.6
$91.5
$30.1
5.6
1.1
$36.8
$26.4
15.2
13.4
9.1
5.8
1.3
2.3
$73.5
$110.3
$18.8
(0.9)
17.9
145.5
$163.4
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Governmental program expenses increased by $12.1 million in comparison to the prior year,
primarily due increases in employee compensation and pension costs . Governmental program
revenues decreased by $4.4 million from the prior year, most notably in charges for services,
reflecting $2.1 in impact fees collected in the prior year, while impact fees for FY 2016-17 were
not as robust.
General Revenues increased by $57.4 million, most notably due to an Extraordinary Item -the
transfer of the former Redevelopment Agency property listed on the Long Range Property
Management Plan to the City for governmental use and redevelopment. The carrying value of
the properties was used to record the value of the land assets within the General Fund. Excluding
this item, the most significant general revenue increase was $6.8 million in sales tax, reflecting a
full year of Measure W transactions and use tax being in effect. The increase in General
Revenues served as the primary cause of the $58.6 million increase in net position.
Chart 1
Revenues by Source -Governmental Activities 2016-17
Charges for
Services
23%
Mscellaneous \
2% \ \
Franchise Fee_ ,
3% ----
Interest and~
Rentals
Othafl!axes j
5% Transient
occupancy taxes
12%
Operating Grants
and Contributions
4%
Capital Grants
_,._._and Contributions
0%
Property tax es
30%
Within Governmental Activity revenue sources, as shown in Chart 1, the reclassification of
Property Tax In Lieu of VLF from Intergovernmental to Property Tax is reflected . The most
notable change in proportional Governmental Activities revenues was in Sales taxes, which
increased from 14 percent in the prior year to 20 percent in FY 2016-17 of Total Governmental
Activities Revenues. This proportional change represented a full fiscal year of the Measure W
transactions and use tax being in place.
Tables 2 (above) and 3 (below) illustrate the difference between program revenues and expenses.
Program revenues consist of capital and operating grants and contributions and fees for services.
General City revenues, such as property taxes, sales and transient occupancy taxes, motor
vehicle in-lieu taxes, and investment earnings, cover the shortfall between program revenues and
program expenses .
In FY 2016-17, the net expense for governmental activities increased from $54.7 million to
$71.2 million. The increase was spread fairly equally across all departments, generally reflecting
increases in employee compensation and pension costs.
12
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 3
Net (Expense) Revenue from Services
Governmental Activities
General government
Fire department
Police department
(In Millions)
Public works department
Recreation and community services
Library
Economic and community development
Interest on long-term debt
Total
13
2016-17 2015-16
$ (7. 7) $ (4.8)
(21.5) (19.0)
(23.1) (20.2)
1.1 1.9
(10. 7) (8.3)
(4.7) (3.1)
(4.6) (1.1)
$ (71.2) $ (54.6)
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Business-type Activities
Table 4
Business-type Net Position at June 30 (in Millions)
2017 2016
Cash and Investments $ 21.8 $ 20.1
Other assets 0.2 0.7
Capital assets 124.9 127.2
Total assets 146.9 148.0
Deferred outflows related to pension 3.1 1.4
Total Deferred outflow of resources 3.1 1.4
Long-term liabilities outstanding 34.0 38.7
Other liabilities 22.1 19.2
Total liabilities 56.1 57.9
Deferred inflows related to pension 0.6 1.2
Total deferred inflow of resources 0.6 1.2
Net position:
Net investment in capital assets 86.2 83.9
Restricted
Unrestricted 7.2 6.2
Total net position $ 93.4 $ 90.1
The total net position for business-type activities increased by $3.3 million, or 3.7 percent,
primarily due to a reduction in outstanding long-term liabilities, notably the City's debt service
payments on three State Water Resources loans and one sewer revenue bond.
14
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 5
Change in Business-type Net Position
(In Millions)
2016-17 2015-16
Expenses
Sewer Enterprise $ 22.7 $ 18.3
Parking District 0.9 0.8
Storm Water 1.3 1.3
Total expenses 24.9 20.4
Revenues
Program Revenues
Charges for Services 21.2 20.8
Operating grants and contributions 5.8 5.8
Total program revenues 27.0 26.6
General revenues
Investment earnings 0.0 0.3
Total general revenues 0.0 0.3
Excess (deficiency) before transfers 2.1 6.5
Transfers 1.1 0.9
Change in net position 3.2 7.4
Net position -beginning (as adjusted) 90.2 82.8
Net position -ending $ 93.4 $ 90.2
Business activity expenses increased $4.5 million compared to the prior year, particularly in
Sewer Enterprise activities, largely due to $3 .4 million less in capital expenses. As part of the
year end accounting process, new capital assets are added to proprietary funds via an offsetting
credit in a contra account. Given the reduced capital expenses in FY 2016-17, the offset amount
was lower compared to the prior year. Business activity revenues increased slightly by $0.4
million, reflecting a rate increase in the sanitary sewer service fee.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
Governmental Funds
Governmental funds highlight the City's near-term inflows, outflows, and balances of spendable
resources. Such information can be helpful in determining the City's financial status.
Unrestricted fund balance is a major indicator of designated and uncommitted resources
available for spending in future fiscal years.
15
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
At June 30, 2017, the City's governmental funds reported combined fund balances of $111.4
million, an increase of $35.1 million, or 46.0 percent compared to the prior year. The General
Fund ending fund balance was $56.3 million, reflecting an increase of $33.3 million, or 144.7
percent. The significant change in fund balance represented two notable items: 1) the transfer of
property from the Successor Agency to the City for governmental use and redevelopment
purposes, and 2) a full fiscal year of the Measure W transactions and use tax being in place.
Total governmental fund revenues increased by $7.7 million, from $110.3 million to $118.0
million, primarily attributable to the Measure W transactions and use tax.
Total governmental fund expenditures increased by $2.6 million, from $99.8 million to $102.5
million, or 2.64 percent, reflecting additional costs for employee salaries and pensions. All of the
City's Memoranda of Understanding (MOU) expired on June 30, 2017, thus FY 2016-17
represented the final year of negotiated salary increases. In addition, employer pension
contribution rates with the California Public Employees' Retirement System (CalPERS) continue
to increase due to increases in the Unfunded Accrued Liability (UAL), reflecting the disparity
between the discount rate and the actual interest earnings.
Comparison of Final Budgets to Original Adopted Budget
The budget is initially adopted by the City Council in June, based on revenue projections that are
up to date through May. Between May and the end of the fiscal year, there can be major
fluctuations in revenues depending on the economy and/or actions by the State of California.
There can also be significant changes to departmental expenditure budgets to the extent
unforeseen expenses occur. In the Fund Financial Statements, the page titled "Statement of
Revenues, Expenditures, and Changes in Fund Balances Budget and Actual" later in this
document shows the initial adopted and final budgets for the General Fund. Significant changes
between the adopted and final budgets are described below:
16
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 6
Comparison of Final Budgets to Original Adopted Budget (in Thousands)
Original Final Pct Discussion:
Revenues Budget Bu~et Cha~e Change (Items of more than 5% and $100,000 variance)
Proper1y taxes $25,487 $ 32,550 $ 7,063 27.7% Reflects reclassification of Proper1y Tax In Lieu of VLF
from Intergovernmental category
Sales taxes 23,105 23,105
Transient occupancy 13,100 taxes 13,500 400 3.1%
Other taxes 5,083 5,483 400 7.9% Account for increases in Parking Tax and Proper1y
Transfer Tax Revenues
Franchise Fee 4,060 4,060
Reflects reclassification of Proper1y Tax In Lieu of VLF to
Intergovernmental 6,795 2,504 ( 4,291) -63.1% Property Taxes category offset by federal and state grants
received throughout the fiscal year.
Interest and rentals 3,072 3,072 Amended budget in anticipation of sale of a City-owned
proper1y.
Licenses and permits 8,412 8,412
Charges for services 8,601 8,682 81 0.9%
Fines and forfeitures 839 839
Other 165 186 21 12.7%
Total $98,719 $ 102,393 $ 3,674 3.7%
17
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 6 (continued)
Comparison of Final Budgets to Original Adopted Budget (in Thousands)
Original Final Pct Discussion:
Expenditures Bu!'!get Budget Change Change {Items of more than 5% and $100,000 variance}
City Council $ 205 $ 208 $ 3 1.5%
City Clerk 648 703 55 8.5%
City Treasurer 123 123
The robust pace of business required the City Attorney to
City Attorney 802 1,188 386 48.1% invest a sigoificant number of billable hours to meet
demand.
City Manager 1,926 2,633 707 36.7% Professional services required that are related to a large
development in the EastoflOl area
Finance Additional appropriations needed for the Human Capital
2,478 3,045 567 22.9% Management System implementation
Non-Departmental 473 1,212 739 156.2% Accounts for City Council-authorized year end transfers.
Human Resources 1,458 1,622 164 11.2% Professional services needed for recruitment and
succession development.
The budget increase was required to address overtime
Fire 25,690 26,121 431 1.7% incurred due to minimum staffing needs and responding to
calls for mutual aid.
Police 27,105 26,320 (785) -2.9% Budget savings from various staff vacancies provided
surplus budget to fund other department budget overages.
Carryover purchase orders from prior year for Bay
Public Works 5,152 5,405 253 4.9% Conservation and Development Commission and
downtown construction coordinator services.
Parks and Recreation 14.553 15.361 808 5.6% Account for Big Lift literacv grant.
Library 5,052 5,372 320 6.3% Account for various grant funds received during the year.
Economic and 10,331 11,115 784 7.6%
Professional services for determining feasibility of
Community Development various land-secured infrastructure financing.
Total $95,996 $ 100,428 $ 4,432 4.6%
18
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Analysis of Major Governmental Funds
General Fund
In FY 2016-17, total General Fund revenues, excluding transfers in and the $20.6 million in
property transferred from the Successor Agency, were $105.0 million, $2.6 million, or 2.5
percent over the final amended budget. Total General Fund expenditures, excluding transfers
out, ended FY 2016-17 at $92.4 million; $8.1 million, or 8 percent under budget. Overall,
excluding operating transfers and the property transferred from the Successor Agency, the
General Fund ended FY 2016-17 with a surplus of $12.6 million, notably for the items discussed
below.
Property Tax, Sales Tax and Transient Occupancy Tax (TOT), serve as both the City's primary
revenue sources and economic indicators. Property Tax revenues, accounting for the
reclassification of Property Tax In Lieu of VLF, were $2.9 million more than the prior year,
principally evident in secured property taxes. Sales tax revenues increased $6.8 million, as FY
2016-17 represented the first full fiscal year of the Measure W transactions and use tax being in
effect. For the fourth year in a row, Transient Occupancy Tax (TOT) revenues reached record
levels at $13.6 million, $188 thousand more than the prior year. The robust and accelerated
development climate in the City's East of 101 area served as the impetus for $927 thousand more
in permit revenues.
Intergovernmental revenues decreased by $6.2 million, which was the result of reclassifying
Property Tax in lieu of VLF from the Intergovernmental to Property Tax revenue category.
Revenue from charges for services increased by $792 thousand, principally in ambulance
transport and reimbursement revenues for a development in the City's East of 101 area. The
increase in ambulance service revenues accounted for a rate increase and a change to a new third
party billing service.
General Fund expenditures, excluding transfers out, increased $5.6 million, or 6.4 percent over
the prior fiscal year, primarily due to increases in employee salaries and pension costs. All of the
City's MOU expired on June 30, 2017, thus FY 2016-17 reflected the final year of negotiated
salary increases. In addition, the City's employer pension contribution to CalPERS, inclusive of
normal cost and unfunded accrued liability, continued to increase due to the difference between
the discount rate and actual return on investment.
As of June 30, 2017, the General Fund total fund balance was $56.3 million, which included
$11.8 million in committed reserves, $5.2 million in assigned reserves, and $39.3 million in
unassigned reserves. The unassigned reserves are designated by the City Council based on the
City's Reserves Policy, which follows best practices from the Government Finance Officers'
Association (GFOA) of between 15-20 percent of General Fund operating revenue. Within the
City's unassigned reserves, the City Council designated funds for economic contingencies,
potential catastrophe and budget contingencies.
19
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Other Post Employment Benefit (OPEB) Liability Impact on Fund Balance
The City has a particularly rich retiree health benefit for employees hired prior to April 25, 2010
(legacy employees). Those legacy employees who retire from CalPERS and from the City
concurrently with at least 5 years of service are entitled to 100% coverage of retiree medical
insurance premiums paid by the City. The current amortized cost of this benefit is $26.2 million,
as reflected on the Statement of Net Position. Key actuarial assumptions behind the OPEB
obligation include projected healthcare premium increases, discount rate, mortality, and
contributions to the OPEB trust fund through the California Employers' Retiree Benefit Trust
(CERBT). Any changes to actuarial assumptions will have an impact on the OPEB obligation. In
addition, beginning in FY 2017-18, in compliance with GASB Statement No. 75, the City will
record the entire OPEB liability, rather than an amortized liability under the provisions of GASB
Statement No. 45.
City Housing Fund
Up until Redevelopment Agencies were abolished in FY 2011-12 by the State of California
under ABXl 26, the City set aside 20% of Redevelopment property taxes to fund the provision
of new affordable housing units, as well as the operation and maintenance of housing stock that
the Redevelopment Agency had already funded. That fund was formerly called the
Low/Moderate Income Housing Fund. With its source of funding (20% of Redevelopment
property tax dollars) abolished, the City Council voted to take on the operations of the former
housing units by becoming the Successor Housing Agency, with activities funded primarily from
the rental revenues received by the City for those City-owned occupied housing units. Any
shortfall between the rents received and the operations and maintenance costs of those housing
units are funded by either one time grants or by the General Fund. Any fund balances will be
held for future housing property maintenance needs.
In FY 2016-17, the City Housing Fund, excluding proceeds from the sale of capital assets,
received for $662 thousand in revenues, which included $108 thousand in rent, $84 thousand in
interest income, $164 thousand in loan repayments, and $305 thousand to account for housing
bond proceeds that were used for an affordable housing development. The fund also had $482
thousand in expenses, the majority of which was for expenses related to same affordable housing
development.
Capital Improvement Fund
The City consolidates and reports its governmental fund-type capital project expenditures in this
fund. Resources consist of transfers from the General Fund, major and non-major funds,
developer impact fees, and gasoline taxes and transportation sales taxes from non-major
governmental funds. Resources also come from federal, state, and local grants, contributions
from other cities, utilities and private developers. Entire capital projects are appropriated in one-
year, but expended over multiple years, with unspent appropriations carried forward year-to-year
until completion.
20
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
East of 101 Sewer Impact Fee Fund
In FY 2016-17, this fund received $189 thousand in revenues, comprised primarily of the East of
101 Sewer Impact Fees. The fund had a negative fund balance for many years due to prepayment
of impact fees by a large biotech firm to front-fund a now completed project.
In 2007, the City entered into an agreement with this firm to pre-fund the sewer impact fees for
the East Grand A venue Sewer Trunk project in order for the project to be completed prior to the
issuance of building permits. As a result, the pre-funding is reported as unearned revenue, a
liability on the fund's balance sheet, until sufficient development generates impact fees to cover
the prepayment of those fees, or until the City has a new agreement with the firm. As of June
30, 2017, the remaining balance of the pre-funding is $1.8 million.
East of 101 Traffic Impact Fee Fund
In FY 2016-17, the City received $110 thousand in traffic impact fees, and transferred out $284
thousand for capital improvements. As of June 30, 2017, the fund has a balance of $7.0 million.
Child Care Impact Fee Fund
The City received $523 thousand in child care impact fees in FY 2016-17. Factoring in limited
expenditures, this fund has a balance of $3.4 million as of June 30, 2017. Larger scale projects
can be funded once a sufficient balance has been accumulated.
Developer Deposit
Since 2007, the City has entered into agreements with a large biotech firm to front-fund sewer
and streetscape projects. The remaining balances of the pre-funding are reported as liability
which will be reduced as related project expenditures are incurred.
21
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating income (before non-operating revenues and
operating transfers) of $4.2 million in FY 2016-17. Operating revenues of $25.6 million were
flat compared to the prior year. Operating expenses increased from $17.3 million to $21.5
million, primarily within personnel expenses. Personnel expenses increased by $1.0 million,
reflecting the impact of negotiated increases in employee salaries as well as pension costs, which
is primarily the byproduct of the disparity between CalPERS' discount rate and actual interest
earnings.
Parking District Fund
In FY 2016-1 7, revenues increased by 8. 7 percent to $917 thousand, while expenses increased
by $42 thousand, or 4.7 percent, largely representing additional employee costs. Net position
decreased slightly by $19 thousand to $13.9 million.
Storm Water Fund
The Storm Water Fund is used to account for resources needed to fund storm drain and storm
infrastructure operations, maintenance, capital replacement, and compliance with various federal
and state regulations regarding storm water runoff. Revenues totaled $404 thousand, primarily
from a levy on property owners. Transfers in totaled $1.1 million, which came from the Gas Tax
Fund in the amount of $670 thousand, $276 thousand from the General Fund, and $157 thousand,
from the Solid Waste Fund. Expenses totaled $1.3 million, $1.7 million less than the amended
budget, due to the trash capture devices capital project, which staff was able to find a more cost-
efficient solution to. Net position as of the fiscal year ended June 30, 2017, totaled $1.4 million.
Service fee revenues remain static in this fund without a ballot measure to increase assessed fees.
CAPITAL ASSETS
GASB Statement 34 requires the City to add infrastructure to its reportable capital assets.
Infrastructure includes streets, drainage systems, and traffic control and safety devices.
Previously, governments excluded the value of such property from their reports of capital assets.
The City has successfully reported on the depreciated value of all such assets acquired or built
since 1980. The City reports the depreciated book value of other types of capital assets such as
buildings, land, equipment and furniture, on the City-wide Statement of Net Assets. Such
information is summarized below and is more completely detailed in Note 3 to the Basic
Financial Statements. The City depreciates all its capital assets, except land and construction in
progress.
22
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
At June 30, 2017, the City had $380.9 million in capital assets, net of depreciation, representing
an increase of $20.3 million from the prior year, primarily in the Governmental Activities land
category, reflecting the transfer of property from the Successor Agency.
The City's various capital asset types used in governmental and business-type activities, are
illustrated in Table 7 below:
Table 7
Capital Assets (in Millions) at June 30
Governmental Activities:
Land
Buildings and improvements
Equipment and vehicles
Furniture and fixtures
Infrastructure -streets*
Infrastructure -traffic control devices*
Infrastructure -storm drains*
Construction in progress
Less accumulated depreciation
Totals
* Additions during the fiscal year only
Business-type Activities
Land
Buildings and improvements
Clean water facilities and transmission line
Infrastructure -storm drains
Infrastructure -streets
Equipment and vehicles
Construction in progress
Less accumulated depreciation
Totals
Total City
2017 2016
$
$
$
70.2
91.5
21.6
2.6
195.0
9.5
8.9
10.8
(154.1)
256.0
1.4
66.7
75.5
4.8
7.4
18.5
6.9
(56.3)
$ 124.9
$ 380.9
23
$
$
$
47.6
85.0
19.8
1.8
183.1
5.1
8.9
26.8
(144.7)
233.4
1.4
66.7
75.5
4.8
7.4
11.2
12.1
(51.9)
$ 127.2
$ 360.6
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplementary Information
DEBT ADMINISTRATION
Each of the City's debt issuances is discussed in detail in Note 5 to the Basic Financial
Statements. A summary of the City's outstanding debt for the past two fiscal years is as follows:
Governmental Activities
Loan payable to Successor Agency
Capital leases
Table 8
Outstanding Debt
(In Millions) at June 30
2017
$ 10.7
1.7
Total Governmental Activities Outstanding Debt $ 12.4
Business-type Activities
State Water Resources Board loans $ 35 .1
2005 Sewer Bonds 3.6
Total Business-type Activities Outstanding Debt $ 38 .7
2016
$ 10.7
2.2
$ 12.9
$ 39.4
3.8
$ 43.2
The decline in Business-type Activities outstanding debt of $4.5 million is the result of
scheduled repayments.
The largest remaining debt obligations are the following:
Three loans to the City's Sewer Enterprise Fund from the State Water Resources
Control Board to finance the expansion of the City's water quality control plant and
pay for Wet Weather improvements which will improve environmental impacts on
the Bay. Principal and interest repayments commence on the loans upon completion
of the project related to each loan package. The three current loans outstanding
have fixed interest of 2.6%, 2.5% and 2.4% are due in 2022, 2026 and 2028.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the first two of the three current loans .
ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS
The economic outlook and major accomplishments of the City are discussed m the
accompanying Transmittal Letter.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This Comprehensive Annual Financial Report is intended to provide readers with a general
overview of the City 's finances. Questions about this report or requests for additional financial
information should be directed to the City of South San Francisco Finance Department, P.O. Box
711 , South San Francisco, CA 94083, and phone (650) 877-8512. The City's website is at
www.ssf.net.
24
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City's financial
activities and financial position.
The Statement of Net Position reports the excess of the City's total assets and deferred outflows of
resources over the City's total liabilities and deferred inflows of resources, including all the City's capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of
the City's net position, by subtracting total liabilities from total assets.
The Statement of Net Position summarizes the financial position of all the City's Governmental Activities
in a single column, and the financial position of all the City's Business-Type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City's Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City's Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City's Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City's net position. It is also prepared
on the full accrual basis, which means it includes all the City's revenues and all its expenses, regardless of
when cash changes hands. This differs from the "modified accrual" basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City's expenses first, listed by program, and follow these with
the expenses of its business-type activities. Program revenues-that is, revenues which are generated
directly by these programs-are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City's general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the City of South San Francisco
Capital Improvements Financing Authority that is legally separate but a component unit of the City
because it is controlled by the City, which is financially accountable for its activities. Data for the South
San Francisco Conference Center Authority is reflected as a discretely presented component unit of the
City. This data is presented separately from other funds of the City to reflect operations under control of
a governing body with a voting majority which is different from the City Council.
25
This Page Left Intentionally Blank
ASSETS
Cash and investments (Note 2)
Receivables:
Accounts
Accrued interest
Loans
Due from Conference Center
Deposit
Inventory
Other
Restricted cash and investments (Note 2)
Internal balances (Note 4 A)
Property held for development (Note IN)
Capital assets (Note 3):
Nondepreciable
Depreciable, net accumulated depreciation
Total Assets
DEFERRED OUTFLOW OF RESOURCES
Related to pension (Note 7)
Deferred amounts from refunding of debt (Note 5)
Total Deferred Outflow of Resources
LIABILITIES
Accounts payable
Accrued salaries and benefits
Accrued interest payable
Other payable
Deposits
Unearned revenue
Accrued insurance losses (Note 11 ):
Due within one year
Due in more than one year
Compensated absences obligation (Note IL):
Due within one year
Due in more than one year
Debt and capital lease obligations (Note 5):
Due within one year
Due in more than one year
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2017
Governmental
Activities
$116,928,766
6,800,996
338,339
1,475,697
43,668
203,510
474
108,377
77,418
22,482,335
81,058,461
174,959,616
404,477,657
28,332,483
28,332,483
2,756,611
1,569,242
634,197
2,410,033
2,674,256
712,000
12,260,942
3,681,331
2,832,974
Primary Government
Business-Type
Activities
$21,768,943
259,601
63,883
15
(77,418)
8,245,302
116,628,434
146,888,760
3,148,054
3,148,054
765,438
657,288
185,895
7,500
396,691
91,826
4,660,529
34,045,503
OPEB obligations -due in more than one year (Note 9)
Net pension liability -due in more than one year (Note 7)
538,421
11,826,254
26,173,032
137,507,433 15,278,604
Total Liabilities
DEFERRED INFLOW OF RESOURCES
Related to pension (Note 7)
Total Deferred Inflow of Resources
NET POSITION (Note 6)
Net investment in capital assets
Restricted for:
Debt service
Special revenue projects
Capital projects
Total Restricted Net Position
Unrestricted
Total Net Position
205,576,726
5,219,201
5,219,201
254,344,554
25,054,817
29,423,276
54,478,093
(86,808,434)
$222,014,213
56,089,274
579,911
579,911
86,167,704
7,199,925
$93,367,629
See accompanying notes to financial statements
27
Total
$138,697,709
7,060,597
402,222
1,475,697
43,668
203,510
474
108,392
22,482,335
89,303,763
291,588,050
551,366,417
31,480,537
31,480,537
3,522,049
1,569,242
657,288
820,092
2,417,533
2,674,256
712,000
12,260,942
4,078,022
2,924,800
5,198,950
45,871,757
26,173,032
152,786,037
261,666,000
5,799,112
5,799,112
340,512,258
25,054,817
29,423,276
54,478,093
(79 ,608,509)
$315,381,842
Component Unit
South San Francisco
Conference
Center
$3,240,137
325,234
40,510
1,522
480,922
3,619,573
7,707,898
24,304
24,304
306,554
51,003
11,881
252,744
445,000
460,000
1,527,182
2,714,573
480,922
480,922
3,009,525
$6,205,020
Functions/Programs
Primary Government
Governmental Activities:
General Government
Fire
Police
Public Works
Parks and Recreation
Library
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2017
Expenses
$10,253,403
25,750,126
25,838,242
12,396,998
15,217,677
Charges for
Services
Program Revenues
Operating
Grants and
Contributions
$338,764
4,890
611,824
Economic and Community Development
5,184,282
8,927,162
$2,225,049
4,242,940
2,146,909
10,869,608
3,756,369
96,987
3,911,597
2,048,816
777,838
373,937
377,470
Total Governmental Activities
Business-type Activities
Sewer
Parking District
Storm Water
Total Business-type Activities
Total Primary Government
Component Unit
Conference Center
103,567,890
22,661,768
940,181
1,333,409
24,935,358
$128,503,248
$3,225,404
General revenues:
Truces:
Property truces
Sales truces
27,249,459
19,897,769
916,687
418,840
21,233,296
$48,482,755
$1,852,250
Transient occupancy truces
Franchise Fees
Other truces
Motor vehicle in lieu, unrestricted
Property truces in lieu of vehicle license fees
Investment earnings
Miscellaneous
Special Item:
4,533,539
5,763,645
5,763,645
$10,297,184
Assets transferred from the Successor Agency (Note 13G)
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position -Beginning
Net Position -Ending
See accompanying notes to financial statements
28
Capital
Grants and
Contributions
$577,995
577,995
$577,995
Net (Expenses) Revenues and Changes in Net Position
Primary Government Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($7,689,590) ($7,689,590)
(21,502,296) (21,502,296)
(23,079,509) (23,079,509)
1,099,421 1,099,421
(10,683,470) (I 0,683,4 70)
( 4, 713,358) (4,713,358)
(4,638,095) (4,638,095)
(71,206,897) (71,206,897)
$2,999,646 2,999,646
(23,494) (23,494)
(914,569) (914,569)
2,061,583 2,061,583
(71,206,897) 2,061,583 (69,145,314)
($1,373,154)
29,023,618 29,023,618
24,087,776 24,087,776
13,631,507 13,631,507 2,146,545
4,090,073 4,090,073
5,708,187 5,708,187
28,933 28,933
6,133,230 6,133,230
622,518 27,710 650,228 19,152
2,365,820 2,365,820
45,205,422 45,205,422
(1,105,038) 1,105,038
129,792,046 1,132,748 130,924,794 2,165,697
58,585,149 3,194,331 61,779,480 792,543
163,429,064 90,173,298 253,602,362 5,412,477
$222,014,213 $93,367,629 $315,381,842 $6,205,020
29
This Page Left Intentionally Blank
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal 2017. Individual
non-major funds may be found in the Supplemental section.
GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND
To account for the activities related to the assets assumed by the City as Housing Successor to the
housing activities of the former Redevelopment Agency of the City of South San Francisco.
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City
owned facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants
and fees.
EAST OF 101 SEWER IMP ACT FEES CAPITAL PROJECTS FUND
These fees provide new development's share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development's share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area.
CHILD CARE IMP ACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development's share of new and expanded childcare facilities to serve
the childcare needs of working parents.
DEVELOPER DEPOSIT FUND
To account for a deposit by a large corporation for various capital projects the developer agreed to fund.
CAPITAL INFRASTRUCTURE RESERVE FUND
Replacement, upgrade, and maintenance of the City's infrastructure are backlogged, constituting a
significant liability. Funds are set aside in this fund as part of the budget process and as part of the City's
reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks,
buildings, facilities, streets, sidewalks, and storm water facilities).
31
ASSETS
Cash and investments (Note 2)
Receivables:
Accounts
Accrued interest
Due from Conference Center
Loans
Due from other funds (Note 4B)
Inventory
Restricted cash and investments (Note 2)
Property held for redevelopment (Note lM)
Total Assets
LIABILITIES
Liabilities:
Accounts payable
Accrued salaries and benefits
Other payable
Deposits
Unearned revenue
Due to other funds (Note 4B)
Total Liabilities
Fund Balances (Note 6):
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances (Deficits)
Total Liabilities and Fund Balances (Deficits)
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2017
Low and Moderate
General Income
Fund Housing Assets
$33,222,598 $3,533,395
6,021,069 7,340
64,817 11,414
43,668
1,106,160
336,000
474
20,582,335
$60,270,961 $4,658,309
$2,012,208
1,569,242
278,678 $131
106,610
3,966,738 131
474
4,658,178
11,780,724
5,244,279
39,278,746
56,304,223 4,658,178
$60,270,961 $4,658,309
32
Ca~ital Projects Funds
East of 101
Capital Sewer
Improvement Impact Fees
$5,459 $2,504,553
610,245
8,383
$615,704 $2,512,936
$362,903
6,132 $1,824,713
335,000
704,035 1,824,713
688,223
(88,331)
(88,331) 688,223
$615,704 $2,512,936
EastoflOl
Traffic
Impact Fees
$7,019,792
26,201
$7,045,993
$7,045,993
7,045,993
$7,045,993
Capital Projects Funds
Child Care
Impact Fees
$3,388,222
11,466
$3,399,688
$3,399,688
3,399,688
$3,399,688
Developer
Deposit
$807,622
3,543
$811,165
$738,281
738,281
72,884
72,884
$811,165
33
Capital
Infrastructure
Reserve Fund
$14,473,785
51,660
$14,525,445
$14,525,445
14,525,445
$14,525,445
Other
Governmental
Funds
$24,782,784
152,214
71,657
369,537
108,377
1,900,000
$27,384,569
$167,225
2,702
1,671,752
736,801
1,000
2,579,480
24,805,089
24,805,089
$27,384,569
Total
Governmental
Funds
$89,738,210
6,790,868
249,141
43,668
1,475,697
336,000
474
108,377
22,482,335
$121,224, 770
$2,542,336
1,569,242
281,511
2,410,033
2,674,256
336,000
9,813,378
474
55,195,500
11,780,724
5,244,279
39,190,415
111,411,392
$121,224,770
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET -RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2017
Total fund balances reported on the governmental funds balance sheet
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds.
Internal servi,ce funds are used by management to charge the cost of management of
communication, telephone, building, fleet maintenance, equipment replacement, workers'
compensation, employee benefits, insurance, and post-retirement healthcare benefits to
individual funds. The assets and liabilities are included in Governmental Activities in the
Statement ofNet Position.
The assets and liabilities below are not due and payable in the current period and
therefore are not reported in the funds:
Long-term debt
Deferred outflows related pension
Net pension liability
Deferred inflows related to pension
Non-current portion of compensated absences
Net position of governmental activities
See accompanying notes to financial statements
34
$111,411,392
250,225,973
(9,526,437)
(10,691,152)
28,332,483
(137,507,433)
(5,219,201)
(5,011,412)
$222,014,213
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CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017
Cal!ital Projects Funds
Low and Moderate EastoflOl
General Income Capital Sewer
Fund Housing Assets Im}!rovement Im}!act Fees
REVENUES
Property taxes $33,405,829
Sales taxes 24,479,476
Transient occupancy taxes 13,631,507
Franchise Fees 4,090,073
Other taxes 5,708,187
Intergovernmental 1,593,508 $505,664
Interest and rentals 2,784,072 $193,162 $3,065
Licenses and permits 7,823,403
Charges for services 9,451,835 185,752
Fines and forfeitures 899,118
Other 1,092,691 469,014 110,019
Total Revenues 104,959,699 662,176 615,683 188,817
EXPENDITURES
Current:
City Council 206,950
City Clerk 607,096
City Treasurer 110,559
City Attorney 1,187,716
City Manager 1,948,911
Finance 2,613,473
Non-departmental 1,145,698 2,500
Human Resources 1,571,647
Fire 25,567,548
Police 25,539,781
Public Works 4,654,758 6,250,681
Parks and Recreation 14,897,157
Library 5,157,355
Economic and Co=unity Development 7,158,564 482,081
Other
Debt service:
Principal repayments
Total Expenditures 92,367,213 482,081 6,250,681 2,500
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 12,592,486 180,095 (5,634,998) 186,317
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 1,016,276
Transfers in (Note 4C) 6,021,853 5,179,644
Transfers out (Note 4C) (5,909,636) (1,860~
Total Other Financing Sources (Uses) 112,217 1,016,276 5,179,644 (1,860)
Net Change in Fund Balances before special items 12,704,703 1,196,371 (455,354) 184,457
SPECIAL ITEMS
Assets transferred from the
Successor Agency (Note 13G) 20,582,335
Net Change in Fund Balances 33,287,038 1,196,371 (455,354) 184,457
Fund balances (deficits) -July 1 23,017,185 3,461,807 367,023 503,766
Fund balances (deficits) -June 3 0 $56,304,223 $4,658,178 ~$88,331~ $688,223
See accompanying notes to financial statements
36
Capital Projects Funds
East of 101 Capital Other Total
Traffic Child Care Developer Infrastructure Governmental Governmental
Impact Fees Impact Fees Deposit Reserve Fund Funds Funds
$1,751,019 $35,156,848
24,479,476
13,631,507
4,090,073
1,699,142 7,407,329
1,920,599 4,019,771
$9,506 $4,489 $16,555 89,843 3,100,692
7,823,403
109,867 522,858 $5,103 4,209,952 14,485,367
899,118
1,234,901 2,906,625
119,373 527,347 5,103 16,555 10,905,456 118,000,209
206,950
607,096
110,559
1,187,716
1,948,911
2,613,473
2,500 2,880 1,153,578
1,571,647
64,818 25,632,366
458,316 25,998,097
2,500 1,236,026 12,143,965
14,897,157
5,157,355
1,302,466 8,943,111
274,183 274,183
23,000 23,000
2,500 2,500 3,361,689 102,469 ,164
116,873 524,847 5,103 16,555 7,543,767 15,531,045
1,016,276
2,666,000 459,633 14,327,130
(284,133) (5,103) (5, 795,495) (4,372,272) (16,368,499)
(284,133) (5,103) (3,129,495) (3,912,639) (1,025,093)
(167,260) 524,847 (3,112,940) 3,631,128 14,505,952
20,582,335
(167,260) 524,847 (3,112,940) 3,631,128 35,088,287
7,213,253 2,874,841 72,884 17,638,385 21,173,961 76,323,105
$7,045,993 $3,399,688 $72,884 $14,525,445 $24,805,089 $111,411,392
37
CITY OF SOUTH SAN FRANCISCO
Reconciliation of the
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2017
NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is capitalized and allocated over their estimated useful
lives and reported as depreciation expense.
Capital assets additions
Retirement and adjustment of capital assets
Current year depreciation
Capital assets transferred from the Successor Agency
Long-Term Debt Payments
Repayment of principal is an expenditure in the governmental funds, but
in the Statement ofNet Position the repayment reduces long-term liabilities.
Repayment of principal is added back to fund balance
Accrual of Non-Current Items
The amount below included in the Statement of Activities does not require the use
of current financial resources and therefore is not reported as revenue or expenditures in
governmental funds (net change):
Compensated absences
Net pension liability, and deferred outflows and inflows ofresources
Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental
activities.
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements
38
$35,088,287
6,313,012
(697,131)
(8,4 70,315)
24,623,087
23,000
(381,932)
1,309,858
777,283
$58,585,149
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
Resources (inflows):
Property taxes
Sales taxes
Transient occupancy taxes
Franchise fees
Other taxes
Intergovernmental
Interest and rentals
Licenses and permits
Charges for services
Fines and forfeitures
Other
Amounts available for appropriation
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager
Finance
Non-depanmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations
OTHER FINANCING SOURCES (USES)
Transfe~ in (Note 4C)
Transfers out (Note 4C)
Total Other Financing Sources (Uses)
FOR THE YEAR ENDED JUNE 30, 2017
Budgeted Amounts
Original
$25,486,789
23,105,336
13,100,000
4,060,000
5,083,400
6,794,956
3,071,500
8,411,713
8,601,108
838,500
165,430
98,718,732
204,499
647,864
123,340
802,002
1,926,245
2,477,795
473,973
1,458,009
25,689,589
27,104,498
4,975,860
14,553,266
5,051,647
10,331,488
95,820,075
6,089,393
(7, 168,980)
(1,079,587)
Final
$32,549,949
23,105,336
13,500,000
4,060,000
5,483,400
2,504,369
3,071,500
8,411,713
8,681,908
838,500
185,930
102,392,605
207,500
703,244
123,340
1,188,002
2,632,838
3,045,461
1,212,102
1,622,360
26,121,215
26,319,956
5,405,341
15,361,255
5,372,318
11,115,411
100,430,343
6,208,393
(11,984,937)
(5,776,544)
NET CHANGE 1N FUND BALANCES BEFORE SPECIAL ITEMS 1,819,070 (3,814,282)
Special Item (Note 13G) 20,582,335
NET CHANGE 1N FUND BALANCE $1,819,070 $16,768,053
Fund Balance -July 1
Adjustment to budgetary basis:
Encumbrance adjustments
Fund Balance -June 30
See accompanying notes to financial statements
39
Actual
Amount
$33,405,829
24,479,476
13,631,507
4,090,073
5,708,187
1,593,508
2,784,072
7,823,403
9,451,835
899,118
1,092,691
104,959,699
206,950
631,225
110,559
1,187,716
2,632,068
3,045,450
1,211,362
1,621,682
25,582,889
25,539,781
5,173,685
15,002,999
5,157,355
10,507,771
97,611,492
6,021,853
(5,909,636)
112,217
7,460,424
20,582,335
28,042,759
23,017,185
5,244,279
$56,304,223
Variance with
Final Budget
Positive
(Negative)
$855,880
1,374,140
131,507
30,073
224,787
(910,861)
(287,428)
(588,310)
769,927
60,618
906,761
2,567,094
550
72,019
12,781
286
770
11
740
678
538,326
780,175
231,656
358,256
214,963
607,640
2,818,851
(186,540)
6,075,301
5,888,761
11,274,706
$11,274,706
CITY OF SOUTH SAN FRANCISCO
LOW AND MODERATE INCOME HOUSING ASSETS
SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
REVENUES:
Interest and rental
Other
Total Revenues
EXPENDITURES:
Current:
FOR THE YEAR ENDED JUNE 30, 2017
Budget
$167,000
140,000
307,000
Economic and Community Development 977,800
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets
Transfers out
Total other financing sources (uses)
NETCHANGEINFUNDBALANCE
Fund balance -July 1
Fund balance -June 30
977,800
(670,800)
(230)
(230)
($671,030)
See accompanying notes to financial statements
40
Actual Amounts
$193,162
469,014
662,176
482,081
482,081
180,095
1,016,276
1,016,276
1,196,371
3,461,807
$4,658,178
Variance with
Final Budget
Positive
(Negative)
$26,162
329,014
355,176
495,719
495,719
850,895
1,016,276
230
1,016,506
$1,867,401
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
The concept of major funds established by GASB Statement 34 extends to Proprietary Funds. The City
reported all enterprise funds as major proprietary funds.
GASB 34 does not provide for the disclosure of budget versus actual comparisons regarding proprietary
funds that are major funds.
SEWER ENTERPRISE FUND
This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital
expansion of the wastewater collection and treatment system.
PARKING DISTRICT FUND
This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities.
STORM WATER FUND
This fund accounts for user charges sustaining the Storm Water Management Program mandated by state
and federal authorities.
41
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE30,2017
Governmental
Business-~l!e Activities -Enterl!rise Funds Activities
Sewer Parking Storm Internal
Enterl!rise District Water Total Service Funds
ASSETS
Current assets:
Cash and investments (Note 2) $18,649,214 $2,140,040 $979,689 $21, 768,943 $27,190,556
Receivables:
Accounts 259,601 259,601 10,128
Accrued interest 52,710 7,402 3,771 63,883 89,198
Deposit 203,510
Restricted cash and investments (Note 2) 15 15
Total current assets 18,961,540 2,147,442 983,460 22,092,442 27,493,392
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 6,787,825 1,023,320 434,157 8,245,302 162,140
Depreciable, net accumulated depreciation 105,793,410 10,779,325 55,699 116,628,434 5,629,964
Total non-current assets 112,581,235 11,802,645 489,856 124,873,736 5,792,104
Total Assets 131,542,775 13,950,087 1,473,316 146,966, 178 33,285,496
DEFERRED OUTFLOW
Related to pension (Note 7) 3,148,054 3,148,054
LIABILITIES
Current liabilities:
Accounts payable 709,605 15,542 40,291 765,438 214,275
Other payable 180,421 5,474 185,895 352,686
Accrued interest payable 657,288 657,288
Deposits payable 7,500 7,500
Accrued insurance loss (Note 11) 712,000
Compensated absences obligation (Note 11) 381,085 1,987 13,619 396,691 694,191
Current portion oflong-term debt (Note 5) 4,660,529 4,660,529 538,421
Total current liabilities 6,596,428 23,003 53,910 6,673,341 2,511,573
Noncurrent liabilities:
Accrued insurance losses (Note 11) 12,260,942
Compensated absences obligation (Note 11) 74,163 17,663 91,826 808,702
Net OPEB obligation (Note 9) 26,173,032
Noncurrent portion oflong-term debt (Note 5) 34,045,503 34,045,503 1,135,102
Net pension liability (Note 7) 15,278,604 15,278,604
Total noncurrent liabilities 49,398,270 17,663 49,415,933 40,377,778
Total Liabilities 55,994,698 40,666 53,910 56,089,274 42,889,351
DEFERRED INFLOW
Related to pension (Note 7) 579,911 579,911
NET POSITION:
Net investment in capital assets 73,875,203 11,802,645 489,856 86,167,704 4,118,581
Unrestricted (deficit) 4,241,017 2,106,776 929,550 7,277,343 (13,722,4362
Total Net Position $78,116,220 $13,909,421 $1,419,406 93,445,047 ($9,603,8552
Some amounts reported for business-type activities in the statement
of net position are different because certain internal service fund
assets and liabilities are included in business-type activities ~77,4182
$93,367,629
See accompanying notes to financial statements
42
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017
Business-typeActivities -Enterprise Funds
Sewer Parking Storm
Enterprise District Water Total
OPERATING REVEl\'lJES
Charges for services $19,795,480 $404,456 $20,199,936
Other cities' participation 5,763,645 5,763,645
Permit fees 102,289 102,289
Parking fees $916,687 916,687
Total Operating Revenues 25,661,414 916,687 404,456 26,982,557
OPERATING EXPENSES
Personnel expenses 8,210,747 358,258 1,144,188 9,713,193
Professional services 1,358,364 153,402 32,521 1,544,287
OPEB expenses 535,039 535,039
Program supplies 1,345,831 18,981 32,968 1,397,780
Insurance 187,983 3,297 191,280
Self-insurance and claims
Repair and maintenance 1,276,158 22,788 1,298,946
Rents and leases 1,592,100 1,592,100
Utilities 1,481,736 51,219 12,602 1,545,557
Administration 1,290,069 100,900 64,156 1,455,125
Depreciation 4,104,622 255,014 12,378 4,372,014
Other 79,246 216 79,462
Total Operating Expenses 21,461,895 937,774 1,325,114 23,724,783
Operating Income (Loss) 4,199,519 (21,087) (920,658) 3,257,774
NONOPERATING REVEl\'lJES (EXPENSES)
Interest income 23,552 2,795 1,363 27,710
Gain on dispositions of capital assets
Interest expense (1,085,231) (1,085,231)
Other 14,384 14,384
Total Nonoperating Revenues (Expenses) (1,061,679) 2,795 15,747 (1,043, 137)
Income (loss) before transfers 3,137,840 (18,292) (904,911) 2,214,637
TRANSFERS
Transfers in (Note 4C) 1,860 1,103,178 1,105,038
Transfers out (Note 4C)
Change in Net Position 3,139,700 (18,292) 198,267 3,319,675
Net Position (Deficits) -July 1 74,976,520 13,927,713 1,221,139 90,125,372
Net Position (Deficits) -June 30 $78,116,220 $13,909,421 $1,419,406 $93,445,047
Change in Net Position $3,319,675
Some amounts reported for business-type activities in the
statement of activities are different because the net revenue
(expense) of certain internal service funds is reported
with business-type activities (125,344)
Change in Net Position of Business-Type Activities $3,194,331
See accompanying notes to financial statements
43
Governmental
Activities
Internal
Service Funds
$25,016,836
25,016,836
14,544,617
639,502
2,070,095
1,394,756
1,362,542
3,253,303
1,009,266
29,478
760,921
315,537
25,380,017
(363,181)
32,800
19,646
(65,943)
92,286
78,789
(284,392)
1,032,576
(96,245)
651,939
(10,255,794)
($9,603,855)
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2017
Governmental
Business-type Activities -Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $25,981,757 $916,687 $425,377 $27,323,821
Cash payment to suppliers for goods and services (7,858,907) (313,930) (141,010) (8,313,847) ($5,630,718)
Cash payment to employees for services (8,393,871) (355,067) (1,169,732) (9,918,670) (14,415,344)
Cash received from interfund service provided 25,105,855
Cash payment for judgments and claims (1,681,308)
Other receipts 409,917
Net Cash Provided by (Used in) Operating Activities 9,728,979 247,690 (885,365) 9,091,304 3,788,402
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 1,860 1,103,178 1,105,038 1,032,576
Transfers out (96,2452
Net Cash Provided by Noncapital Financing Activities 1,860 1,103,178 1,105,038 936,331
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on long-term debt ( 4,536,800) ( 4,536,800) (565,475)
Interest paid on long-term debt (1,169,086) (1,169,086) (65,943)
Acquisition of capital assets, net (2,588,459) (261,161) (2,849,620) (1,629,268)
Proceeds from the sale of capital assets 19,646
Net Cash Used in Capital and Related Financing Activities (8,294,345) (261,1612 (8,555,506) (2,241,040)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 6,052 187 421 6,660 (7,901)
Net Cash Provided by Investing Activities 6,052 187 421 6,660 (7,901)
Net Increase (Decrease) in cash and cash equivalents 1,442,546 247,877 (42,927) 1,647,496 2,475,792
Cash and cash equivalents, beginning 17,206,683 1,892,163 1,022,616 20,121,462 24,714,764
Cash and cash equivalents, ending $18,649,229 $2,140,040 $979,689 $21,768,958 $27,190,556
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $4,199,519 ($21,087) ($920,658) $3,257,774 ($363,181)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 4,104,622 255,014 12,378 4,372,014 760,921
Other non-operating revenue (expenses) 14,384 14,384 92,286
Net change in assets and liabilities:
Accounts and lease receivables 320,343 6,537 326,880 (3,267)
Accounts payable 1,256,128 15,064 27,538 1,298,730 92,859
Other payable 31,491 (4,492) 26,999 263,832
Accrued insurance losses 1,571,995
OPEB obligations 1,268,332
Compensated absence obligations (37,584) 3,191 (25,544) (59,937) 104,625
(Decrease) increase due to retirement system (145,540) (145,540)
Net Cash Provided by (Used in) Operating Activities $9,728,979 $247,690 ($885,3652 $9,091,304 $3,788,402
See accompanying notes to basic financial statements
44
· FIDUCIARY FUND
An agency fund is used to account for assets held by the City acting as an agent for another government
entity. The financial activity of this fund, excluded from the Entity-wide financial statements, is presented
in a separate Fiduciary Fund financial statement.
SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
The Fund is used to account for the activities of the Successor Agency to the former Redevelopment
Agency of the City of South San Francisco.
SSF EMPLOYEE DEFERRED COMP TRUST OVERSIGHT FUND
This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on
behalf of City employees.
45
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2017
ASSETS
Cash and investments (Note 2)
Accounts receivable
Interest receivable
Advances to the City (Note 5)
Loans receivable (Note 13B)
Restricted cash and investments (Note 2)
Capital assets (Note 13C):
Nondepreciable
Depreciable, net accumulated depreciation
Total Assets
LIABILITIES
Accounts payable
Accrued interest payable
Deposits
Other accrued liabilities
Noncurrent portion of pollution remediation (Note 13E)
Long-term debt (Note 13D):
Due within one year
Due in more than one year
Total Liabilities
NET POSITION
Held in trust for other purposes
Successor
Agency
Private Purpose
Trust Fund
$1,390,743
2,941
20,285
10,691,152
218,030
31,158,229
2,520,264
521,409
$46,523,053
$3,869
9,333
37,519
537,000
275,000
285,000
1,147,721
$45,375,332
See accompanying notes to financial statements
46
Agency Fund
SSF Employee
Def Comp
Trust
Oversight
$105,663
318
$105,981
$24,492
81,489
$105,981
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017
ADDITIONS
Intergovernmental
Interest and rentals
Other
Total Additions
DEDUCTIONS
Economic and Community Development
Interest expense
Depreciation
Total Deductions
SPECIAL ITEMS
Assets transferred to the City of South San Francisco (Note 13G)
Loss on disposal of capital assets
Total Special Items
Change in net position
NET POSITION HELD IN TRUST FOR OTHER PURPOSES
Beginning of the year
End of the year
See accompanying notes to financial statements
47
Successor
Agency
Private Purpose
Trust Fund
$795,840
521,429
23,303
1,340,572
4,223,568
810,400
71,651
5,105,619
45,205,422
3,436,986
48,642,408
(52,407,455)
97,782,787
$45,375,332
This Page Left Intentionally Blank
-CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City
of South San Francisco (the City) as the Primary Government, with its component units for which
the City is considered financially accountable. The component units discussed below are
included in the City's reporting entity because of the significance of their operational and
financial relationships with the City.
B. Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City's blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City's
operations and so data from this unit is combined with the City. The City's following blended
component units are described below.
The City of South San Francisco Capital Improvements Financing Authority is a joint
exercise of powers authority created in 1991 between the City and the City of South San
Francisco former Redevelopment Agency. The Financing Authority is authorized to borrow
money through the purchase or issuance of bonds, notes, or other obligations for the purpose of
making loans to the City and other public entities to finance capital improvements. The City
Council members serve as the Board of Directors.
C. Description of Discrete Component Unit
The City of South San Francisco Conference Center Authority was established in 1992 to
manage and operate the South San Francisco Conference Center. The Authority is governed by a
Board of nine commissioners consisting of two Council members and seven representatives from
various businesses appointed by City Council.
The Authority does not meet the criteria of a blended component unit, since the City Council is
not the component unit's governing body and the Authority does not provide services entirely to
the City. However the City is financially accountable and is able to impose its will on the
Authority. The Authority is therefore considered a discrete component unit with its financial data
reported separately from the financial data of the City.
The City of South San Francisco Conference Center Authority financial statements may be
obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080.
49
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Basis of Presentation
Government-wide Statements -The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the fmancial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City's
governmental activities. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants
and contributions that are restricted to meeting the operational needs of a particular program and
( c) fees, grants and contributions that are restricted to fmancing the acquisition or construction of
capital assets. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's
funds, including fiduciary funds and blended component units. Separate statements for each fund
category -governmental, proprietary, and fiduciary -are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds m the accompanying financial
statements:
General Fund -Accounts for resources traditionally associated with government, such as
administration, public safety, library, parks, maintenance, and recreation, outside of those
accounted for in other funds.
50
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Low and Moderate Income Housing Asset Special Revenue Fund -This fund was established
to account for the activities related to the assets assumed by the City as Housing Successor to the
housing activities of the former Redevelopment Agency of the City.
Capital Improvement Capital Projects Fund -Accounts for expenditures associated with the
acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding
comes from the General Fund, Special Revenue funds, grants and fees.
East of 101 Sewer Impact Fees Capital Projects Fund -These fees provide new
development's share of new and rehabilitated sewer collection and treatment facilities to serve the
East of Highway 101 area.
East of 101 Traffic Impact Fees Capital Projects Fund -These fees are to provide new
developments share of new and expanded roadway and intersection improvements to serve the
East of Highway 101 area.
Child Care Impact Fees Capital Projects Fund -These citywide fees provide new
development's share of new and expanded childcare facilities to serve the City.
Developer Deposits Capital Projects Fund -Accounts for a deposit by a large corporation for
various capital projects the developer agreed to fund.
Capital Infrastructure Reserve Fund -Replacement, upgrade, and maintenance of the City's
infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund
as part of the budget process and as part of the City's reserve policy to address the replacement
and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks,
and storm water facilities).
The City reported all enterprise funds as major funds in the accompanying financial statements.
The enterprise funds are:
Sewer Enterprise Fund -Accounts for user charges and debt proceeds supporting the operation,
maintenance, and capital expansion of the wastewater collection and treatment system.
Parking District Fund -Accounts for meter and parking permit fees used to acquire and
maintain parking facilities.
Storm Water Fund -Accounts for user charges sustaining the Storm Water Management
Program mandated by state and federal authorities.
The City also reports the following fund types:
Internal Service Funds -These funds account for City services, self insurance, health and
retirement benefits, and equipment replacement; all of which are provided to other departments
on a cost-reimbursement basis.
51
CITY OF· SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fiduciary Funds -An agency fund is used to account for assets held by the City as an agent for
SSF Employee Deferred Comp Trust Oversight Fund. The Successor Agency Private-Purpose
Trust Fund accounts for the accumulation of resources to be used for payments at appropriate
amounts and times in the future. The financial activities of the funds are excluded from the
Government-wide financial statements, but are presented in the separate Fiduciary Fund financial
statements.
F. Basis of Accounting
The government-wide, proprietary, private-purpose trust fund, and discretely presented
component unit financial statements are reported using the economic resources measurement
focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses
are recorded at the time liabilities are incurred, regardless of when the related cash flows take
place.
The agency funds which only report assets and liabilities and do not have a measurement focus.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, claims and judgments, and compensated absences, which are recognized as expenditures to
the extent they have matured. General capital asset acquisitions are reported as expenditures in
governmental funds. Proceeds from long-term debt and acquisitions under capital leases are
reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales
taxes collected and held by the state at year end on behalf of the City are also recognized as
revenue. Other receipts and taxes are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City's policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
52
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
!NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Budgets, Budgetary Accounting, and Encumbrances
The City is not legally required to budget any of its funds, but does so to enhance City
management's effectiveness in their financial planning efforts and to enhance control over the
City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and
for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the
purchase order issuance. The Capital Improvement Fund is adopted on a multi-year project basis
with unexpended and unencumbered budgets reappropriated in the following year. The City
operates under the general laws of the State of California (the State) and annually adopts a budget
effective July 1 for the ensuing fiscal year for the General fund; Special Revenue funds; Capital
Projects funds except for the Developer Deposits Capital Projects Fund; and Enterprise funds.
The budget is adopted by the City Council and controlled at the department level for the General
fund and at the fund level or lower for all other funds with adopted budgets. From the effective
date of the budget, the amounts stated therein as proposed expenditures become appropriations to
the various City departments. The City Council may amend the budget by resolution during the
fiscal year. The department heads may authorize transfers within one object category within the
same department within a fund. The City Manager may authorize transfers between object
categories and departments within a fund.
All appropriations lapse at year-end, except for capital projects and encumbrances. Original
adopted budgets and final amended budgets are presented in the basic financial statements.
Supplementary budget appropriations were necessary during the year ended June 30, 2015.
Encumbrance accounting, under which, purchase orders, contracts and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are
reported as reservations of fund balances since they do not constitute expenditures or liabilities.
Encumbrances are reappropriated in the following year.
The budgetary comparison statements present comparisons of the legally adopted budget with
actual charges to appropriations on a budgetary basis. In order to provide a meaningful
comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that
differs significantly from those used to present financial statements in conformity with generally
accepted accounting principles.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
53
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
H. Expenditures in Excess of Appropriations -The City had the following General Fund
departments with expenditures in excess of appropriations for the year ended June 30, 2017:
General Fund:
City Council
City Attorney
City Manager
Finance
Non-departmental
Human Resources
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
$2,450
3,714
16,230
189,710
556,260
74,322
L Cash Equivalents -For purposes of the statement of cash flows, the City considers all highly
liquid investments (including all restricted assets) with maturity of three months or less when
purchased to be cash equivalents. The City maintains a cash and investment pool that is available
for use by all funds. As the proprietary funds' share of this pool is readily available when needed,
such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are
related to insurance and benefits and are not considered cash equivalents for purposes of the
statement of cash flows.
J. Inventory and Prepaid Items -consist of consumable supplies. Inventory is stated at cost (first-
in, first-out method). The costs are recorded as expenditures at the time the individual inventory
or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund
balance reservation, which indicates that they do not constitute "available spendable resources"
even though they are a component of net current assets.
K. Capital Assets -Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are valued at acquisition value. All other capital
assets are valued at historical cost or estimated historical cost if actual historical cost is not
available. Contributed capital assets are valued at their estimated fair market value on the date
contributed.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over
the life of these assets. The amount charged to depreciation expense each year represents that
year's pro rata share of the cost of capital assets.
54
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
J NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The City has assigned the useful lives listed below to capital assets:
Buildings
Clean water facilities and transmission lines
Improvements
Machinery and equipment
Furniture and fixtures
Infrastructure
50 years
40 years
30 years
5-20 years
12 years
20-40 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period. The
capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
L. Vacation and Sick Pay -are accrued as earned. Upon termination, employees are paid for all
unused vacation at their current hourly rates. After five to twenty years of employment, one half
of accumulated sick leave becomes vested, up to a maximum amount as specified under labor
contract provisions. The vested portion is available for current use or, if unused, is payable at
termination or retirement.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements.
The portion expected to be permanently liquidated is recorded in the Health and Retirement
Benefits Internal Service Fund. Proprietary fund liabilities are recorded within their respective
funds.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $6,027,748 $548,454 $6,576,202
Additions 4,340,262 438,748 4,779,010
Payments (3,853,705) (498,685) (4,352,390)
Ending Balance $6,514,305 $488,517 $7,002,822
Current Portion $3,681,331 $396,691 $4,078,022
Compensated absences are liquidated by the fund that has recorded the liability. The long-term
portion of governmental activities compensated absences is liquidated primarily by the Health
and Retirement Benefits Internal Service Fund.
55
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
M. Property Tax Levy, Collection and Maximum Rates -State of California Constitution Article
XIII A provides that the combined maximum property tax rate on any given property may not
exceed 1 % of its assessed value unless an additional amount for general obligation debt has been
approved by voters. Assessed value is calculated at 100% of market value as defined by Article
XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred,
or substantially improved. The State Legislature has determined the method of distribution of
receipts from a 1 % tax levy among the counties, cities, school districts and other districts. The
County of San Mateo assesses properties, bills for and collects property taxes on the schedule that
follows:
Valuation/lien dates
Levy dates
Due dates (delinquent as of)
Secured
January 1
July 1
50% on November 1(December10)
50% on February 1 (April 10)
Unsecured
January 1
July 1
July 1 (August 31)
The term "unsecured" refers to taxes on personal property other than land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue and receivables when they are collected during the
fiscal year of levy or within 60 days of year-end.
N. Land held for development -is stated at the lower of historical cost or net realizable value (equal
to agreed upon sales price if a disposition and development agreement has been reached with a
developer).
0. Unbilled Services -for the Sewer Rental Enterprise Fund are accrued at year-end.
P. Use of Estimates -The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the
dates of the financial statements and the reported amounts of revenues and expenditures/expenses
during the reporting periods. Actual results could differ from those estimates.
Q. Deferred Outflows/Inflows of Resources -In addition to assets, the statement of financial
position or balance sheet reports a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a consumption of
net position or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of
financial position or balance sheet reports a separate section for deferred inflows of resources.
This separate financial statement element, deferred iliflows of resources, represents an acquisition
of net position or fund balance that applies to a future period( s) and so will not be recognized as
an inflow of resources (revenue) until that time.
56
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
[ NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
R. New Accounting Pronouncements
Governmental Accounting Standards Board (GASB) Statement No. 73 -Accounting and Financial
Reporting for Pensions and Related Assets that are not within the scope of GASE Statement 68.
This Statement establishes requirements for defined benefit pension that are not within the scope of
Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets
accumulated for purposes of providing those pensions. In addition, it establishes requirements for
defined contribution pensions that are not within the scope of Statement 68. It also amends certain
provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement 68 for
pension plans and pensions that are within their respective scopes. The statement is effective for the
2016-2017 fiscal year and had no impact on the City's financial statements.
Governmental Accounting Standards Board (GASB) Statement No. 74 -Financial Reporting for
Postemployment Benefit Plans other than Pension Plans. The objective of this statement is to
improve the usefulness of information about postemployment benefits other than pensions (other
postemployment benefits or OPEB) included in the general purpose external financial reports of
state and local governmental OPEB plans for making decisions and assessing accountability. This
Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans
Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers
and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB
plans that replace the requirements for those OPEB plans in Statement No. 25, Financial
Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution
Plans, as amended, Statement 43, and Statement No. 50, Pension Disclosures. The statement is
effective for the 2016-2017 fiscal year and had no impact on the City's financial statements.
Governmental Accounting Standards Board (GASB) Statement No. 77 -Tax Abatement
Disclosures. For financial reporting purposes, this Statement defines a tax abatement as resulting
from an agreement between a government and an individual or entity in which the government
promises to forgo tax revenues and the individual or entity promises to subsequently take a
specific action that contributes to economic development or otheryvise benefits the government or
its citizens. This Statement requires governments that enter into tax abatement agreements to
disclose information about the agreements, including (1) brief descriptive information, such as the
tax being abated, the authority under which tax abatements are provided, eligibility criteria, the
mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of
commitments made by tax abatement recipients, (2) the gross dollar amount of taxes abated
during the period, and (3) commitments made by a government, other than to abate taxes, as part
of a tax abatement agreement. The statement is effective for the 2016-2017 fiscal year and had no
impact on the City's financial statements.
Governmental Accounting Standards Board (GASB) Statement No. 78 -Pensions Provided
through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement
is to address a practice issue regarding the scope and applicability of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions-an amendment to GASB Statement No. 27. This
issue is associated with pensions provided through certain multiple-employer defined benefit
pension plans and to State or local governmental employers who employees are provided with such
pensions. The requirements of this Statement are effective for reporting periods beginning after
December 15, 2015. This Statement had no impact on the City's financial statements.
57
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I
Governmental Accounting Standards Board Statement (GASB) No. 80 -Blending Requirements
for Certain Component Unit -an amendment to GASB Statement No. 14. The objective of this
Statement is to improve financial reporting by clarifying the financial statement presentation
requirements for certain component units. This Statement amends the blending requirements
established in paragraph 53 of GASB Statement No. 14, The Financial Reporting Entity. The
additional criterion requires blending of a component unit incorporated as a not-for-profit
corporation in which the primary government is the sole corporate member. The additional
criterion does not apply to component units included in the financial reporting entity pursuant to
the provisions of GASB Statement No. 39, Determining Whether Certain Organizations Are
Component Units -an amendment to GASB Statement No. 14. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2016 and had no impact on
the City's financial statements
Governmental Accounting Standards Board Statement (GASB) No. 82, -Pension Issues-an
amendment ofGASB Statements No. 67, No. 68, and No. 73. The objective of this Statement is to
address certain issues that have been raised with respect to GASB Statement No. 67, Financial
Reporting for Pension Plans-an amendment to GASB Statement No. 25, GASB Statement No. 68,
Accounting and Financial Reporting for Pensions-an amendment to GASB Statement No. 27, and
GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68. Specifically, this Statement addresses issues regarding (1) the
presentation of payroll-related measures in required supplementary information; (2) the selection of
assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice
for financial reporting purposes; and (3) the classification of payments made by employers to satisfy
employee (plan member) contribution requirements. The requirements of this Statement are
effective for reporting periods beginning after June 15, 2016, except for the requirements of this
Statement for the selection of assumptions in a circumstance in which an employer's pension
liability is measured as of a date other than the employer's most recent fiscal year end. In that
circumstance, the requirements for the selection of assumptions are effective for that employer in
the first reporting period in which the measurement date of the pension liability is on or after June
15, 2017. This statement had no significant impact on the City's financial statements.
S. Fair Value Measurements
Fair value is defmed as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs -other than quoted prices included within level 1 -that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable iri.puts for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the
fair value hierarchy, the measurement is considered to be based on the lowest priority level input
that is significant to the entire measurement.
58
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 2 -CASH AND INVESTMENTS I
The City's goal is to invest at the maximum yield, consistent with safety and liquidity, while
individual funds can process payments for expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order
to increase security, the City employs the Trust Department of a bank as the custodian of certain
City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with
a market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City's name and
places the City ahead of general creditors of the institution.
The City's investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2017 are classified in the financial statements as shown
below, based on whether or not their use is restricted under the terms of City debt instruments or
agency agreements.
Financial Statement Presentation:
Statement ofNet Position:
City of South San Francisco:
Cash and investments available for operations
Restricted cash and investments
Total Primary Government cash and investments
Statement ofFiduciary Assets:
Cash and investments available for operations
Restricted cash and investments
Total Fiduciary cash and investments
Conference Center:
Cash and investments available for operations
Restricted cash and investments
Total South San Francisco
Conference Center cash and investments
Total cash and investments
59
$13 8,697, 709
108,392
138,806,101
1,496,406
31,158,229
32,654,635
3,240,137
480,922
3,721,059
$175,181,795
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 2 -CASH AND INVESTMENTS (Continued) I
The City does not allocate investments by fund. Each proprietary fund's portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City's Investment Policy
The City's investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City's Investment Policy where it is more restrictive:
Authorized Investment Type
U.S. Treasury Obligations
U.S. Agency Securities
Asset-Backed Securities
Connnercial Paper
Repurchase Agreements
Local Agency fuvestment Fund (LAIF)
Money Market Mutual Funds
Corporate Medium-Term Notes
Supranational Obligations
Maximum
Maturity
5 years
5 years
5 years
270 days
90days
Upon Demand
NIA
5 years
5 years
Minimum
Credit
Quality
NIA
NIA
AA
Al,Pl
AA
NIA
Highest
Rating
Category
A
AA
Maximum
Percentage
of Portfolio
No Limit
25%
20%
25%
No Limit
$65 million
20%
30%
30%
Maximum
Investment
in One Issuer
No Limit
No Limit
No Limit
5%
No Limit
No Limit
10%
5%
10%
The City of South San Francisco Conference Center Authority (Authority) maintains its cash and
investments separately from the City. The investment policy of the Authority contains no
limitations on the amount that can be invested in any one issue beyond that stipulated by the
California Government Code.
60
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
[ NOTE 2 -CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The Successor Agency to the former Redevelopment Agency must maintain required amounts off
cash and investments with trustees or fiscal agents under the terms of certain debt issues. These
funds are unexpended bond proceeds or are pledged as reserves to be used if the City fails to meet
its obligations under these debt issues. The California Government Code requires these funds to
be invested in accordance with City ordinance bond indentures or State statute. The table below
identifies the investment types that are authorized for investments held by fiscal agents. The table
also identifies certain provisions of these debt agreements:
Authorized Investment TYJIC
U.S. Treasury Obligations
U.S. Agency Securities
Commercial Paper
State and Local Investment Pool
Guaranteed Investment Contracts (fully
collateraliz.ed) (A)
Municipal Obligations
State Obligations
Maximum
Maturity
NIA
NIA
270days
NIA
NIA
NIA
NIA
Minimum
Credit
Quality
NIA
NIA
Highest
Rating
Category
Highest
Rating
Category
AAA
Highest
Rating
Category
Two Highest
Rating
Categories
Maximum
Percentage
of Portfolio
No Limit
No Limit
No Limit
No Limit
No Limit
No Limit
No Limit
(A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury Obligations or
U.S. Agency Obligations.
61
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 2 -CASH AND INVESTMENTS (Continued) I
The City of South San Francisco Conference Center Authority must maintain required amounts of
cash and investments with trustees or fiscal agents under the terms of certain debt issues. These
funds are unexpended bond proceeds or are pledged as reserves to be used ifthe Authority fails to
meet its obligations under these debt issues. The California Government Code requires these
funds to be invested in accordance with the Authority's ordinance, bond indentures or State
statute. The table below identifies the investment types that are authorized for investments held
by fiscal agents. The table also identifies certain provisions of these debt agreements:
Minimum Maximum
Maximum Credit Percentage
Authorized Investment Type Maturi!}: Quali!}'. of Portfolio
U.S. Treasury Obligations NIA NIA No Limit
U.S. Agency Securities NIA NIA 10%
Negotiable Certificates ofDeposit NIA A No Limit
Commercial Paper NIA Aaa No Limit
Corporate Notes NIA A No Limit
Money Market NIA NIA No Limit
Guaranteed Investment Contracts (fully
collateraliz.ed) (A) NIA AAA No Limit
(A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury Obligations or
U.S. Agency Obligations.
62
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 2 -CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. The City also manages its interest rate risk is
by holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City's investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the City's investments by maturity or earliest call date:
Remaining maturity
City and Fiduciary:
U.S. Agency Securities
Non-callable
U.S. Treasury Notes
Local Agency Investment Fund
Money Market Funds
Guaranteed Investment Agreements
Corporate Notes
Commercial Paper
Asset-Backed Securities
Supranational Obligations
South San Francisco Conference Center:
Local Agency Investment Fund
Money Market Funds
Total Investments
Less than
1 year
$61,140,370
23,855,234
3,083,238
2,712,089
480,922
$91,271,853
Cash in Banks and on Hand -City of South San Francisco
Cash in Banks and on Hand -South San Francisco Conference Center
Total Cash and Investments
One to Five
Years
$23,853,192
21,703,495
303,000
19,572,677
8,508,998
6,522,240
$80,463,602
Total
$23,853,192
21,703,495
61,140,370
23,855,234
303,000
19,572,677
3,083,238
8,508,998
6,522,240
2,712,089
480,922
171, 735,455
2,918,292
528,048
$175,181,795
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds,
and floating rate securities issued by federal agencies, government-sponsored enterprises, United
States Treasury Notes and Bills, and corporations. At June 30, 2017, these investments have an
average maturity of 197 days.
Money market funds are available for withdrawal on demand and as of June 30, 2017 have an
average maturity of 36 days.
63
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 2 -CASH AND INVESTMENTS (Continued) I
F. Credit Risk
G.
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, 2017, for each
of the Primary Government's investment types as provided by Moody's investment rating system,
except as noted:
Investment T:t:Ee Aaa Aaa-mf Aal-Aa3 Al-A3 P-1 Total
City and Fiduciary:
U.S. Agency Securities
Non-callable $23,853,192 $23,853,192
Money Maiket Funds $23,855,234 23,855,234
Corporate Notes 2,137,799 $2,458,913 $14,975,965 19,572,677
Commercial Paper $3,083,238 3,083,238
Asset-Backed Securities 5,345,203 5,345,203
Supranational Obligations 6,522,240 6,522,240
South San Francisco Conference Center:
Money Market Funds 480,922 480,922
Totals $37,858,434 $24,336,156 $2,458,913 $14,975,965 $3,083,238 82,712,706
City and Fiduciary:
Not rated:
Guaranteed Investment Agreements 303,000
Asset Backed Securities 3,163,795
Local Agency Investment Fund 61,140,370
Exempt.from credit rate disclosure:
U.S. Treasuiy Notes 21,703,495
South San Francisco Conference Center:
Not rated:
Local Agency Investment Fund 2,712,089
Total Investments $171, 735,455
Concentration of Credit Risk
The City's investment policy contains limitations on the amount that can be invested in any one
issuer beyond that stipulated by the California Government Code. Investments in any one issuer,
other than U. S. Treasury securities, mutual funds, and external investment pools that represent
5% or more of total Entity-wide investments are as follows at June 30, 2017:
Issuer
Federal National Mortgage Association
64
Investment
Type
U.S. Agency Securities
Amount
$11,478,950
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 2 -CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
The City categorized its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City
as of June 30, 2017:
Investments by Fair Value Level:
City and Fiduciary:
U.S. Agency Securities
Non-callable
U.S. Treasury Notes
Corporate Notes
Commercial Paper
Asset Backed Securities
Supranational Obligations
Totals
Investments Measured at Amortized Cost:
City and Fiduciary:
Guaranteed Investment Agreements
Money Market Mutual Funds
South San Francisco Conference Center:
Money Market Mutual Funds
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund
South San Francisco Conference Center:
Local Agency Investment Fund
Total Investments
Level2
$23,853,192
21,703,495
19,572,677
3,083,238
8,508,998
6,522,240
$83,243,840
Total
$23,853, 192
21,703,495
19,572,677
3,083,238
8,508,998
6,522,240
83,243,840
303,000
23,855,234
480,922
61,140,370
2,712,089
$171,735,455
All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing
techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings
and matrix pricing. These prices are obtained from various pricing sources by the City's
investment manager. Money market funds and guaranteed investment agreements were reported
at amortized cost.
65
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
NOTE 3 -CAPITAL ASSETS
A. Capital Asset Changes -Changes in capital assets during the fiscal year consist of:
Balance Transfers from Balance
June 30, 2016 Additions Retirements Transfers Successor Agency June 30, 2017
Governmental activities
Capital assets not being depreciated:
Land $47,563,435 ($7,481,022) $30,153,572 $70,235,985
Construction in Progress 26,684,122 $5,958,669 (14,051) ($21,968,404) 10,660,336
Total capital assets not being depreciated 74,247,557 5,958,669 (7,495,073) (21,968,404) 30,153,572 80,896,321
Capital assets being depreciated:
Buildings and Improvements 84,955,957 (710,000) 4,939,432 2,266,120 91,451,509
Infrastructure -Streets 183,079,365 11,848,800 194,928, 165
Infrastructure -Storm Drains 8,927,492 8,927,492
Infrastructure -Traffic Control Devices 5,138,138 4,403,511 9,541,649
Equipment and Vehicle 6,387,999 354,343 (77,289) 6,665,053
Furniture and Fixtures 1,837,554 776,661 2,614,215
Total capital assets being depreciated 290,326,505 354,343 (787,289) 21,968,404 2,266,120 314, 128,083
Less acclUTiulated depreciation for:
Buildings and Improvements (32,650,324) (2,235,450) 71,000 (359,663) (35,174,437)
Infrastructure -Streets (90,483,589) (5,528,966) (96,012,555)
Infrastructure -Storm Drains (2,957,561) (204,500) (3,162,061)
Infrastructure -Traffic Control Devices (2,586,321) (293,288) (2,879,609)
Equipment and Vehicle (5,993,033) (144,686) 77,289 (6,060,430)
Furniture and Fixtures (1,445,914) (63,425) (1,509,339)
Total accumulated depreciation (136,116,742) (8,4 70,315) 148,289 (359,663) (144,798,431)
Net Governmental Fund
Capital Assets Being Depreciated 154,209, 763 (8,115,972) (639,000) 21,968,404 1,906,457 169,329,652
Internal Service Fund Capital Assets
Capital assets not being depreciated:
Construction in Progress 103,736 162,140 (103,736) 162,140
Total capital assets not being depreciated 103,736 162,140 (I 03, 736) 162,140
Capital assets being depreciated:
Equipment and Vehicle 13,399,977 1,467,128 (83,403) 103,736 14,887,438
Accumulated depreciation (8,579,956) (760,921) 83,403 (9,257,474)
Net Internal Service Fwtd Capital Assets
Being Depreciated 4,820,021 706,207 103,736 5,629,964
Governmental activity capital assets, net $233,381,077 ($1,288,956) ($8,134,073) $32,060,029 $256,018,077
66
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
!NOTE 3-CAPITAL ASSETS (Continued) I
Balance
June 30, 2016 Additions Retirements Transfers
Business-type activities
Capital assets, not being depreciated:
Land $1,396,758
Balance
June 30, 2017
$1,396,758
Construction in Progress 12,111,583 $2,512,908 ($776,755) ($6,999,192) ____ 6-'-,8_4~8,,_5_44_
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and Improvements
Clean Water Facilities and Lines
Infrastructure -Storm Drains
Infrastructure -Streets
Equipment and Vehicle
Furniture and Fixtures
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and Improvements
Clean Water Facilities and Lines
Infrastructure -Storm Drains
Infrastructure -Streets
Equipment and Vehicle
Furniture and Fixtures
Total accumulated depreciation
Net capital assets being depreciated
Business-type activity capital assets, net
Component Unit:
13,508,341
66,715,639
75,522,774
4,773,977
7,377,546
11,179,118
31,154
165,600,208
(14,543,959)
(25,389,813)
(716,094)
(1,421,551)
(9,833,073)
(31,154)
(51,935,644)
113,664,564
$127,172,905
South San Francisco Conference Center
Buildings and Improvements
Furniture and Fixtures
Machinery and equipment
Total:
Less accumulated depreciation
Component mit, net
2,512,908
336,692
336,692
(1,611,714)
(1,888,070)
(159,132)
(209,570)
(503,528)
(4,372,014)
(4,035,322)
($1,522,414)
Balance
Jme 30, 2016
$10,654,098
714,158
206,896
11,575,152
(7,871,477)
$3,703,675
(776,755) -~<~6,_99_9~,1_92~) ____ 8~,2_4~5,'-3_02_
6,999,192
6,999,192
6,999,192
($776,755)
Additions Retirements
$280,006 ($111,647)
67,307
43,127 (12,466)
390,440 (124, 113)
(474,542) 124, 113
($84,102)
66,715,639
75,522,774
4,773,977
7,377,546
18,515,002
31,154
172,936,092
(16,155,673)
(27,277,883)
(875,226)
(1,631,121)
(10,336,601)
(31,154)
(56,307,658)
116,628,434
$124,873,736
Balance
Jme 30, 2017
$10,822,457
781,465
237,557
11,841,479
(8,221,906)
$3,619,573
B. Capital Asset Contributions -Some capital assets may have been acquired using federal and
State grant funds, or were contributed by developers or other governments. Contributed capital
assets are valued at their estimated acquisition value on the date contributed. GASB Statement 34
requires that these contributions be accounted for as revenues at the time the capital assets are
contributed.
67
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
!NOTE 3 -CAPITAL ASSETS (Continued) I
C. Depreciation Allocation -Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
Governmental functions
General government
Fire
Police
Public works
Parks and recreation
Library
:Economic and community development
Total Governmental Functions
Internal Service Funds
Total Governmental Activities
Business-Type Activities
Sewer Enterprise
Parking District
Storm Water
Total Business-Type Activities
I NOTE 4 -INTER-FUND TRANSACTIONS
A. Internal Balances
$627,468
385,741
50,479
6,915,857
403,851
60,001
26,918
8,470,315
760,921
$9,231,236
$4,104,621
255,015
12,378
$4,372,014
Internal balances are presented in the Entity-wide financial statements only. They represent the
net interfund receivables and payables remaining after the elimination of all such balances within
governmental and business-type activities.
B. Inter-Jund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
Due From Other Fund
General Fund
Due to Other Fund
Capital Improvement
Capital Projects Fund
Non-major Governmental Funds
68
Amount
$335,000
1,000
$336,000
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
NOTE 4 -INTER-FUND TRANSACTIONS (Continued)
C. Transfers
Resources may be transferred from one City fund to another. Transfers routinely fund capital
projects or capital outlays, lease or debt service payments, and operating expenses. The purpose
of majority of these transfers is to reimburse a fund that has made an expenditure on behalf of
another fund. Some expenditures reimbursed were for capital projects, debt service, maintenance
and operating expenses, and contributions for post-employment benefits.
Transfers between funds during the fiscal year ended June 30, 2017 were as follows:
FROMFUND (OUI)
General Fund
Fast oflOl Sewer Impact Fees Capital Project Fund
Fast oflOl Traffic Impact Fees Capital Project Fund
Developer Deposit Capital Projects Funds
Capital Infrastructure Reserve Capital Projects Fund
Non-major Governmental Funds
Internal Service Funds
TOFUND(IN)
Capital Improvement Capital Projects Fund
Capital Infrastructure Reserve Capital Projects Fund
Storm Water Fnterpris e Fund
Internal Service Funds
Sewer Enterprise Fund
Capital Improvement Capital Projects Fund
Capital Improvement Capital Projects Fund
General Fund
Capital Improvement Capital Projects Fund
Non-major Governmental Funds
General Fund
Capital Improvement Capital Projects Fund
Capital Infrastructure Reserve Capital Projects Fund
Storm Water Enterprise Fund
Capital Improvement Capital Projects Fund
Total
69
AMOUNT
$2,335,199
2,266,000
275,861
1,032,576
1,860
284,133
5,103
4,426,952
908,910
459,633
1,594,901
1,550,054
400,000
827,317
96,245
$16,464,744
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 5 -LONG-TERM DEBT I
A. Current Year Transactions and Balances
A summary of governmental and business-type activities transactions for the fiscal year ended
June 30, 2017 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2016 Retirement June 30, 2017 Portion
Gowrnmental Acti\ities:
2007 Loans Payable to the Successor Agency (1) $10,714,152 $23,000 $10,691,152
Total Gowrnmental Acti\ities Debt 10,714,152 23,000 10,691,152
Capitall.eases (2):
2008 Two Fire Trucks 260,154 100,982 159,172 $105,061
2010 Two Ambulances 131,959 87,190 44,769 44,768
2010 Two Fire Trucks 558,395 115,736 442,659 120,353
2013 Fire Truck 937,135 123,576 813,559 126,860
2014 Sweeper 351,355 137,991 213,364 141,379
Total Capital Leases 2,238,998 565,475 1,673,523 538,421
Net Gowrnmental Long-Term Debt $12,953,150 $588,475 $12,364,675 $538,421
Business-Type Acti\ities:
1999 State Water Resources Loan, 2.6%, due 8/ 1/22 (3) $47, 721,252 $20,705,346 $2,735,082 $17,970,264 $2,806,193
2004 State Water Resources Loan, 2.5%, due 111/27 (3) 21,258,529 12,270,846 1,095,280 11,175,566 1,122,663
2008 State Water Resources Loan, 2.4%, (4) 9,164,505 6,416,640 426,438 5,990,202 436,673
2005 Sewer Revenue Bonds, 2.75 to 5.0%, due 04/30/26 (5) 6,000,000 3,850,000 280,000 3,570,000 295,000
Total Fnterprise Fund Long-Term Debt $84,144,286 $43,242,832 $4,536,800 $38,706,032 $4,660,529
Component Unit-Conference Center:
2003 Revenue Bonds, 2.25% to 4.0%, due 9/1/18 (6) $5,865,000 $1,330,000 $425,000 $905,000 $445,000
Unamortized refunding loss on 2003 bonds (50,819) (26,515) (24,304)
Total Conference Center $5,865,000 $1,279,181 $398,485 $880,696 $445,000
70
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 5 -LONG-TERM DEBT (Continued) I
(1) As of June 30, 2017, the Oyster Point Improvements Impact Fund owed Successor Agency
(formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the
amount of $10,691,152 for the Flyover and Hook.ramps Projects that were completed in prior years.
The outstanding balance will be paid off from the future developer fees. With the dissolution of the
Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to
repay. This payable is recorded as a long-term obligation (see also Note 13). Prior to the
dissolution of all Redevelopment Agencies in California by the State, the former Redevelopment
Agency (Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital
Projects Fund (the Oyster Point Fund). The impact fees are collected according to a fee
methodology adopted under the terms of AB 1600. The fees are assessed against commercial
development in a specific geographic area that is primarily east of Highway 101 to repay the former
Agency for the funds it advanced to the Oyster Point Fund to pay for freeway interchange
improvements at Highway 101 and Oyster Point Blvd, and are assessed per an adopted Engineering
report's formula that measures each new development's impact on the area's trip traffic. While the
former Agency advanced the funds, the impact fee was put in place specifically to charge future
developers for their share of traffic trips generated prior to the construction of the improvements.
When the Agency was dissolved, the Successor Agency, and therefore, all local taxing entities, are
entitled to receive future Oyster Point Impact fees collected by the City from developers. Future
developers, not the City of South San Francisco, are legally obligated to pay the future fees until the
liability owed to the Successor Agency is paid off as long as the fee continues to be levied and is in
place. The repayment has significantly slowed since 2007, as development has subsided and fees
assessed have therefore dropped. Management believes it may take 10-3 0 years or more before the
Successor Agency is fully paid back.
(2) The City has entered into long-term capital leases with various financing agencies. Under
these capital leases, all leased assets shall be distributed to the City at the end of the lease terms
and shall thereafter remain the sole property of the City. Therefore, these capital leases have been
recorded at the present value of the future minimum lease payments at the date of inception of the
lease, and the corresponding assets have been included in the Statement of Net Position as
appropriate. Capital lease payments are made from revenues of the Equipment Replacement Internal
Service Fund and the General Fund.
(3) The two loans were authorized by the State Water Resources Control Board to improve and
expand the City's wastewater treatment plant. Loan proceeds were issued as the projects
progressed and debt service payments commenced one year after project completion. Sewage
treatment user fees support the debt service payments.
(4) State Water Resources Control Board Loan -In November 2007, the City approved the
$11.8 million loan agreement with State Water Resources Control Board (SWRCB) to finance the
City's Wet Weather Program project. Under the terms of the contract, the City has agreed to
repay $11.8 million to the State in exchange for receiving $9.2 million in proceeds to be used to
fund the Project. The difference between the repayment obligation and proceeds amounted to
$2.6 million and represents in-substance interest on the outstanding balance. Debt service
payments commenced on August 15, 2009.
71
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 5 -LONG-TERM DEBT (Continued) I
(5) On October 25, 2005, the California Statewide Communities Development Authority issued
2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale
and the City's portion of debt is $6,000,000. Proceeds were used to finance sewer system capital
improvement. The principal payment on the debt commenced in October 2006 and is due each
October 1. Final principal payment is due on October 1, 2026. Interest payment at the rate of
4.457% is payable semi-annually each April 1 and October 1.
The 2005 Water and Wastewater Revenue Bonds are secured by a pledge of net revenues of the
City's Enterprise system. Net Revenues available for debt service amounted to $8.3 million
which represented coverage of 18.5 over the $449,976 in debt service.
(6) On June 1, 2003, the City of South San Francisco Capital Improvement Financing Authority
(CIF A) issued $5,865,000 of 2003 Revenue Bonds. The CIF A was created through a joint
exercise of powers agreement between the City and the City of South San Francisco Financing
Authority for the purpose of obtaining financing for capital improvements. The 2003 Revenue
Bonds are obligations of the CIF A although the Authority is required to make the bond principal
and interest payments in return for the use and ownership of the improvements to the leased
buildings that comprise the Conference Center's facilities. The Authority has pledged the $2.50
tax imposed on the City's hotel occupants on a per day per room basis as the sole source of
repayment of these obligations. The 2003 revenue bonds are, in substance, obligations of the
Authority and have therefore been recorded as such in these discretely presented component unit
financial statements.
The 2003 revenue bonds were issued for the purpose of refunding the 1993 revenue bonds. The
refunding reduced required interest payments and did not extend the maturities on the bonds. The
advance refunding reduced the Authority's total debt service payments by $846,859 and resulted
in an accounting loss of $401,345, which has been deferred in accordance with GASB Statement
No. 23, Accounting and Financial Reporting for Refunding of Debt Reported by Proprietary
Activities. This loss is being amortized over the remaining life of the old debt and the remaining
balance is reported as a deferred outflow of resources. The 2003 revenue bonds bear interest rates
ranging from 2.25% to 4.00% and mature on September 1, 2018.
72
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 5 -LONG-TERM DEBT (Continued)
B. Debt Service Requirements
Future debt service requirements, including interest and capital leases, but excludes the 2007 and
2008 Loans payable to the Redevelopment Successor Agency at June 30, 2017, were as follows:
For the Year Governmental Activities
Ended June 30 Principal Interest
2018 $538,422 $47,431
2019 381,483 30,743
2020 263,839 20,330
2021 204,251 11,582
2022 140,892 6,614
2023-2027 144,636 2,870
2026-2029
Totals $1,673,523 $119,570
Business-Type Activities
Principal Interest
$4,660,530 $1,060,207
4,782,037 942,915
4,906,394 822,328
5,038,676 698,146
5,173,954 570,292
13,024,062 1,025,946
1,120,379 23,621
$38,706,032 $5,143,455
Component Unit
Conference Center Authority
Principal Interest
$445,000
460,000
$905,000
$35,644
18,400
$54,044
Certificates of Participation and Capital Leases are issued for the purpose of financing the
construction or acquisition of projects defined in each leasing arrangement. Projects are leased to
the City for lease payments which, together with unspent proceeds of the leasing arrangement,
will be sufficient to meet the debt service obligations of the leasing arrangement. At the
termination of the leasing arrangement, title to the project will pass to the City.
Leasing arrangements are similar to debt; they allow investors to participate in a share of
guaranteed payments which are made by the City. Because they are similar to debt, the present
value of the total of the payments to be made by the City is recorded as long-term debt. The
City's leasing arrangements are included in long term obligations discussed above.
A summary of capital assets leased through the issuance of leasing arrangements follows:
Leasing Arrangement Fund/ Activity
Capital Leases Governmental Activity
73
Original
Cost
$5,842,799
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 6 -NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City's assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position are divided into
three captions. These captions apply only to Net Position, which is determined only at the
Government-wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City's capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
The City's fund balances are classified in accordance with Governmental Accounting Standards
Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type
Definitions, which requires the City to classify its fund balances based on spending constraints
imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to be
maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such
as prepaids, notes receivable, and land held for redevelopment are included. However, if
proceeds realized from the sale or collection of nonspendable assets are restricted, committed or
assigned, then Nonspendable amounts are required to be presented as a component of the
applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by Council Resolution of the City Council
which may be altered only by Council Resolution of the City Council. Nonspendable amounts
subject to council commitments are included along with spendable resources.
74
CITY OF soum SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 6 -NET POSITION AND FUND BALANCE (Continued)
Assigned fund balances are amounts constrained by the City's intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. The City
Council had delegated authority to the Finance Director to assign fund balances which are not
otherwise restricted or committed. This category includes nonspendables, when it is the City's
intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of
Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or
committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
Minimum Fund Balance Policies -The City's Reserve Policy is to have the General Fund
Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in
alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the
general fund operating expenditures budget as well as an economic contingency which is 7% of
general fund revenues. Funds in excess of these requirements will continue to be earmarked for
paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits
(OPEB) or for Infrastructure and Facilities Replacement needs.
Detailed classifications of the City's Fund Balances, as of June 30, 2017, are below:
CaP!tal Project Funds
Low and Moderate F.ast of101
General Income Housing Capital Sewer
Fund Balance Classifications Fund Assets lmE!:ovement Im~ctFees
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $474
Total Nonspendable Fund Balances 474
Restricted for:
Sewer Impact Fees $688,223
Low and moderate housing projects $4,658,178
Total Restricted Fund Balances 4,658,178 688,223
Committed for:
Capital projects 2,490,575
Lo cal services 9,290,149
Total Committed Fund Balances 11,780,724
Assigned to:
Capital projects 5,244,279
Total Assigned Fund Balances 5,244,279
Unassigned:
General fund 39,278,746
Capital Improvement Fund ~$88,331}
Total Unassigned Fund Balances 39,278,746 (88,331)
Total Fund Balances $56,304,223 $4,658,178 ($88,331} $688,223
(Continued)
75
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
[ NOTE 6 -NET POSITION AND FUND BALANCE (Continued)
c.
Ca[!ital Project Funds
EastoflOl Capital Other
Traffic Child Care Developer Infrastructure Governmental
FnndBalance Classifications {continued) Im[!!!ct Fees Im[!!!ct Fees Dei!Qsit Reserve Fund Funds
Restricted for:
Traffic impact fees projects $7,045,993
Child Care impact fees projects $3,399,688
Developer deposit fees projects $72,884
Capital infrastructure projects $14,525,445
Gas Tax projects $931,545
Developer contnbutions projects 4,877,868
Community Development Block Grant projects 478,890
Maintenance districts projects 2,562,369
Transportation sales tax projects 2,189,418
City programs projects 4,135,445
Other Special Revenues projects 5,221,104
Capital projects activities 4,408,450
Total Restricted Fund Balances 7,045,993 3,399,688 72,884 14,525,445 24,805,089
Total Fnnd Balances $7,045,993 $3,399,688 $72,884 $14,525,445 $24,805,089
Net Deficit
The Capital Improvement Capital Projects Fund had net deficit in the amount of $88,331. Future
revenues are expected to offset the deficit.
The Health and Retirement Benefits Internal Service Fund had net deficit in the amount of
$17,704,113 at June 30, 2017. This deficit is attributable to the Net OPEB Obligation described in
Note 9.
D. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for
governmental funds. Under this system, purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of applicable
appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or
assigned fund balance, depending on the classification of the resources to be used to liquidate the
encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations
lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in
governmental funds as ofJune 30, 2017, were as listed below:
Governmental funds:
General Fund
Capital Improvement Capital Projects Fund
Other Governmental Funds
Total
76
Amount
$5,244,279
3,767,942
220,876
$9,233,097
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 7 -PENSION PLANS I
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
City's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions
to/deductions from the Plans' fiduciary net position have been determined on the same basis as
they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
A. General Information about the Pension Plans
Plan Descriptions -All qualified permanent and probationary employees are eligible to
participate in the City's separate Safety (police and fire) and Miscellaneous (all other) Plans,
agent multiple-employer defined benefit pension plans administered by the California Public
Employees' Retirement System (CalPERS), which acts as a common investment and
administrative agent for its participating member employers. Benefit provisions under the Plans
are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the
CalPERS website.
Benefits Provided -CalPERS provides service retirement and disability benefits, annual cost of
living adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10
years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957
' Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments
for each plan are applied as specified by the Public Employees' Retirement Law.
The Plans' provisions and benefits in effect at June 30, 2017, are summarized as follows:
Miscellaneous
Classic Plan Classic Plan PEPRAPlan
Hire date Prior to After On or after
April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7%@55 2%@60 2%@62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50-55 50-60 52-62
Monthly benefits, as a% ofeligible compensation 2.0%to2.7% 1.092% to 2.418% l.0%to 2.5%
Required employee contnbution rates 8% 7% 6.5%
Required employer contribution rates 27.822% 27.822% 27.822%
77
CITY OF soum SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 7 -PENSION PLAN (Continued) I
Hire date
Benefit fornrula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a% of eligible compensation
Required employee contnbution rates
Required employer contnbution rates
Classic Plan
Prior to
April25,2010
3%@50
5 years service
monthly for life
50
3%
9%
43.678%
Safety
Classic Plan
After
April 25, 2010
3%@55
5 years service
monthly for life
50-55
2.4%to 3.0%
9%
43.678%
PEPRAPlan
On or after
January 1, 2013
2.7%@57
5 years service
monthly for life
50-57
2.0%to2.7%
11.5%
43.678%
Employees Covered -As of the June 30, 2015 actuarial valuation date and the June 30, 2016
measurement date, the following employees were covered by the benefit terms for the Plans:
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to but not yet receiving benefits
Active employees
Total
Miscellaneous
413
311
253
977
Safety
271
104
159
534
Contributions -Section 20814(c) of the California Public Employees' Retirement Law requires
that the employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for both Plans are determined annually on an actuarial basis as of June 30 by
CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs
of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability. The City is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees.
B. Net Pension Liability
The City's net pension liability for each Plan is measured as the total pension liability, less the
pension plan's fiduciary net position. The net pension liability of each of the Plans is measured
as of June 30, 2016, using an annual actuarial valuation as of June 30, 2015 rolled forward to
June 30, 2016 using standard update procedures. A summary of principal assumptions and
methods used to determine the net pension liability is shown below.
78
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
J NOTE 7 -PENSION PLAN (Continued) I
Actuarial Assumptions -For the measurement period ended June 30, 2016, the total pension
liabilities were determined by rolling forward the June 30, 2015 total pension liability. The June
30, 2015 total pension liabilities were based on the following actuarial methods and assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increase
Investment Rate ofRetum
Post Retirement Benefit Increase
Mortality
Miscellaneous and Safety
June 30, 2015
June 30, 2016
Entry-Age Nonna.I Cost Method
7.65%
2.75%
Varies by Entry Age and Service
7.50% Net of Pension Plan Investment Expenses,
includes Inflation
Contract COLA up to 2.75% until Purchasing Power
applies, 2.75% thereafter
Derived using CalPers Membership Data for all Funds
(1)
(1) The mortality table used was developed based on CalPERS' specific data. The table includes
20 years of mortality improvements using Society of Actuaries Scale BB. For more details
on this table, please refer to the CalPERS 2014 experience study report.
All other actuarial assumptions used in the June 30, 2015 valuation were based on the results of a
January 2015 actuarial experience study for the period 1997 to 2011, including updates to salary
increase, mortality and retirement rates. Further details of the Experience Study can be found on
the CalPERS website.
Discount Rate -The discount rate used to measure the total pension liability was 7.65% for each
Plan. To determine whether the municipal bond rate should be used in the calculation of a
discount rate for each plan, CalPERS stress tested plans that would most likely result in a
discount rate that would be different from the actuarially assumed discount rate. Based on the
testing, none of the tested plans run out of assets. Therefore, the current 7.65% discount rate is
adequate and the use of the municipal bond rate calculation is not necessary. The long term
expected discount rate of 7.65% will be applied to all plans in the Public Employees Retirement
Fund (PERF). The stress test results are presented in a detailed report that can be obtained from
the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class.
79
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
J NOTE 7 -PENSION PLAN (Continued) I
In determining the long-term expected rate of return, CalPERS took into account both short-term
and long-term market return expectations as well as the expected pension fund cash flows. Such
cash flows were developed assuming that both members and employers will make their required
contributions on time and as scheduled in all future years. Using historical returns of all the
funds' asset classes, expected compound (geometric) returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the
expected nominal returns for both short-term and long-term, the present value of benefits was
calculated for each fund. The expected rate of return was set by calculating the single equivalent
expected return that arrived at the same present value of benefits for cash flows as the one
calculated using both short-term and long-term returns. The expected rate of return was then set
equivalent to the single equivalent rate calculated above and rounded down to the nearest one
quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class. The rate of
return was calculated using the capital market assumptions applied to determine the discount rate
and asset allocation. These geometric rates of return are net of administrative expenses.
New
Strategic Real Return
Asset Class Allocation Years 1 -lO(a)
Global Equity 51.0%
Global Fixed Income 20.0%
Inflation Sensitive 6.0%
Private Equity 10.0%
Real Estate 10.0%
Infrastructure and Forestland 2.0%
Liquidity 1.0%
Total 100%
(a) An expected inflation of2.5% used for this period.
(b) An expected inflation of3.0% used for this period.
80
5.25%
0.99%
0.45%
6.83%
4.50%
4.50%
-0.55%
Real Return
Years 1 l+(b)
5.71%
2.43%
3.36%
6.95%
5.13%
5.09%>
-1.05%
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 7 -PENSION PLAN (Continued) I
C Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension Plan Fiduciary
Liabilit~ Net Position
Balance at June 30, 2015 $198,871,260 $142,302, 730
Changes in the year:
Service cost 3,079,994
Interest on the total pension liability 14,870,988
Changes of benefit tenns
Chases of assumptions
Differences between actual and expected experience (476,337)
Plan to plan resource movement 229
Contribution -employer 5,726,981
Contribution -employees 1,622,453
Net investment income 687,860
Benefit payments, including refunds of employee
contributions (11,085,829) (11,085,829)
Administrative expenses (86,726)
Net changes 6,388,816 (3,135,032)
Balance at June 30, 2016 $205,260,076 $139,167,698
Safety Plan:
Increase (Decrease)
Total Pension Plan Fiduciary
Liability Net Position
Balance at June 30, 2015 $268,679,186 $195,205,601
Changes in the year:
Service cost 5,329,842
Interest on the total pension liability 20,134,558
Changes of benefit tenns
Chases of assumptions
Differences between actual and expected experience (915,267)
Plan to plan resource movement (229)
Contribution -employer 8,535,737
Contribution -employees 1,961,907
Net investment income 950,612
Benefit payments, including refunds of employee
contributions (14,463,995) (14,463,995)
Administrative expenses (118,968)
Net changes 10,085,138 (3, 134,936)
Balance at June 30, 2016 $278, 764,324 $192,070,665
81
Net Pension
Liabilit~/(Asset2
$56,568,530
3,079,994
14,870,988
(476,337)
(229)
(5,726,981)
(1,622,453)
(687,860)
0
86,726
9,523,848
$66,092,378
Net Pension
Liability/~Asset2
$73,473,585
5,329,842
20,134,558
(915,267)
229
(8,535, 737)
(1,961,907)
(950,612)
0
118,968
13,220,074
$86,693,659
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 7 -PENSION PLAN (Continued) I
Sensitivity of the Net Pension Liability to Changes in the Discount Rate -The following
presents the net pension liability of the City for each Plan, calculated using the discount rate for
each Plan, as well as what the City's net pension liability would be if it were calculated using a
discount rate that is I-percentage point lower or I-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.65% 6.65%
Net Pension Liability $91,969,258 $124,134,164
Current Discount Rate 7.65% 7.65%
Net Pension Liability $66,092,378 $86,693,659
1% Increase 8.65% 8.65%
Net Pension Liability $44,630,768 $55,923,952
Pension Plan Fiduciary Net Position -Detailed information about each pension plan's fiduciary
net position is available in the separately issued CalPERS financial reports.
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 20I 7, the City recognized negative pension expenses of $986,502 and
$468,896 for the Miscellaneous and Safety Plans, respectively. At June 30, 2017, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Miscellaneous Plan:
Pension contributions subsequent to measurement date
Changes of assumptions
Differences between actual and expected experience
Net differences between projected and actual earnings on
plan investments
Total
82
Deferred Outflows Deferred Inflows
of Resources of Resources
$5,228,454
($674,931)
(599,362)
7,536,073
$12,764,527 ($1,274,293)
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 7 -PENSION PLAN (Continued) I
Safety Plan:
Pension contributions subsequent to measurement date
Changes of assumptions
Differences between actual and expected experience
Net differences between projected and actual earnings on
plan investments
Total
Deferred Outflows
of Resources
$8,071,060
10,644,950
$18, 716,010
Deferred Inflows
ofResources
($2,052,483)
(2,472,336)
($4,524, 819)
$13 ,299 ,514 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2017. Other amounts reported as deferred outflows ofresources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Plan:
Year Ended
June 30
2018
2019
2020
2021
Safety Plan:
Year Ended
June 30
2018
2019
2020
2021
83
Annual
Amortization
($165,956)
917,804
3,509,205
2,000,727
Annual
Amortization
($1,316,785)
(28,854)
4,706,291
2,759,479
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
!NOTE 8-DEFERRED COMPENSATION PLAN I
A. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this
Plan, participants are not taxed on the deferred portion of their compensation until it is distributed
to them; distributions may be made only at termination, retirement, death or in an emergency as
defined by the Plan.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust
for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under
these plans are not the City's property and are not subject to City control, they have been
excluded from these financial statements.
I NOTE 9 -OTHER POST-EMPLOYMENT BENEFITS
The City provides certain health care benefits for all employees who retire after attaining age 50
with at least five years of service or disability at any age. The City provides certain health care
benefits for those employees hired prior to April 25, 2010. In order to reduce the City's OPEB
obligations over time, the City changed to a defined contribution post-retirement health plan for
employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a
medical after retirement health plan (MARA), and contributes 1.5% of salary for those plans.
Benefits are provided as authorized by various memorandums of understanding entered into by the
City and its employees. As of June 30, 2017, approximately 384 retirees were eligible to receive
benefits. The City provides fully paid medical coverage under various health care plans. A summary
of eligibility and retiree contribution requirements are shown below by bargaining unit:
Eligibility *Hired< 4/25/2010
* Age 50 and 5 years City service or disability at any age after 5 years
service
Medical Benefit *City pays single premium up to largest HMO single premium.
Cap for 2016/2017:
-$1,097.70/month pre-65 (Blue Shield)
-$575. 70/month post-65 Medical eligible (Blue Shield)
-$1,720.17/ month post-65 not Medicare eligible (Kaiser)
* Medicare ineligible retirees allowed to stay in their
pre-Medicare premium plans after age 65
*City pays premium and reimburses Medicare Part B hired
before 4/25/2010 only
Surviving Spouse *Participation with premium payment
Benefit * AFSCME, Local 1569, Mid-Management, IAFF
-surviving spouses covered 2 months following death of retiree
Dentai Vision, & Life None
84
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 9 -OTHER POST-EMPLOYMENT BENEFITS (Continued)
During fiscal year 2009, the City implemented the provisions of Governmental Accounting
Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions. This Statement establishes uniform financial
reporting standards for employers providing postemployment benefits other than pensions
(OPEB). The provisions of this statement are applied prospectively and do affect prior years
financial statements. Required disclosures are presented below. The City offers retirees a single-
employer postemployment benefits plan that is administered by the City. The City's Health and
Retirement Benefits Fund hold assets designated forthe payment of City's OPEB obligations.
The City joined the California Employers' Retiree Benefit Trust (CERBT), an agent multiple-
employer plan administered by CALPERS, consisting of an aggregation of single-employer
plans.
A. Funding Policy and Actuarial Assumptions
The annual required contribution (ARC) was determined as part of a June 30, 2015 actuarial
valuation using the entry age normal actuarial cost method. This is a projected benefit cost
method, which takes into account those benefits that are expected to be earned in the future as
well as those already accrued. The actuarial assumptions included (a) 4.0% investment rate of
return if not pre-funded and assets remain in City's own investment portfolio; 5.22% if pre-
funded with CERBT, (b) 3.25% projected annual salary increase, (c) 3.0% inflation rate.
The actuarial assumptions also included the following health care cost trend:
Year Non-Medicare Medicare
2016 Actual Premiums
2017 Actual Premiums
2018 6.5% 6.7%
2019 6.0% 6.1%
2020 5.5% 5.6%
2021+ 5.0% 5.0%
The actuarial methods and assumptions used include techniques that smooth the effects of short-
term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial
calculations reflect a long-term perspective and actuarial valuations involve estimates of the value
of reported amounts and assumptions about the probability of events far into the future.
Actuarially determined amounts are subject to revision at least biannually as results are compared
to past expectations and new estimates are made about the future. The City's OPEB unfunded
actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed
basis using a 22-year amortization period.
85
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
J NOTE 9-OTHER POST-EMPLOYMENT BENEFITS (Continued)
B. Funding Progress and Funded Status
Generally accepted accounting principles permits contributions to be treated as OPEB assets and
deducted from the Actuarial Accrued Liability (AAL) when such contributions are placed in an
irrevocable trust or equivalent arrangement. In fiscal year 2017, the City made contribution less
than the ARC as presented below:
Annual required contribution (ARC)
Interest on net OPEB Obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made:
Benefits paid
Prefunding contribution to trust
Total contributions
Change in net OPEB Asset I (Obligation)
Net OPEB Asset I (Obligation) at June 30, 2016
Net OPEB Asset I (Obligation) at June 30, 2017
$6,233,000
1,153,000
(2,436,000)
4,950,000
2,879,906
801,762
3,681,668
(1,268,332)
(24,904, 700)
($26, 173,032)
The Plan's annual required contributions and actual contributions for the year ended June 30,
2017 is set forth below (in thousands):
Percentage of
AnnualOPEB Actual AnnualOPEB NetOPEB
Fiscal Year Cost Contribution Contributed Obligation
6/30/2015 $5,884,000 $13,895,000 236% $23,810,700
6/30/2016 5,177,000 4,083,000 79% 24,904,700
6/30/2017 4,950,000 3,681,668 74% 26,173,032
Funded Status and Funding Progress -As of June 30, 2015, the most recent actuarial valuation
date, the plan was 21.9% funded. The Actuarial Accrued Liability (AAL) for benefits was
$73,752,000 and the Actuarial Value of Plan Assets was $16,175,000 resulting in an Unfunded
Actuarial Accrued Liability (UAAL) of $57,577,000. The covered payroll (annual payroll of active
employees covered by the plan) was $24,471,000 and the ratio ofUAAL to the covered payroll was
235.3%.
The schedule of funding progress presented immediately following the fmancial statements as
required supplementary information, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liability for benefits. A separate audited GAAP basis for this post-employment benefit plan report
is not available.
86
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
jNOTE 10-JOINTLY GOVERNED ORGANIZATIONS I
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of
this joint organization are not the City's responsibility and the City does not have an equity
interest in the assets of each joint organization except upon dissolution of the joint organization.
A. Oyster Point Marina
(OPM) was established in 1977 by the City and the San Mateo County Harbor District (Harbor
District) for the purpose of expanding, improving and operating the Oyster Point Marina and
Park. The governing board consists of two of the City's council members and two Harbor District
commissioners. The Harbor District operates OPM. Operation of the Marina provides revenues
for the marina's operations. The City retains title to the land; however, the City is not liable for
any obligations of the San Mateo County Harbor District. Condensed unaudited financial
information may be obtained from San Mateo County Harbor District, #1 Johnson Pier, Half
Moon Bay, CA 94019.
B. Peninsula Traffic Congestion Relief Alliance
(PTCRA) was formed from the merger of The Inter City Transportation Systems Management
Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The
members are Cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay,
Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic
congestion. The governing board consists of one council member from each member city. The
finance director of Daly City acts as the treasurer and controller of PTCRA. The individual cities
are not liable for the debts, liabilities or obligations of PTCRA. Each member city has an equal
interest in PTCRA. Condensed accrual basis unaudited financial information may be obtained
from the City of Daly City Finance Department, 333 90th Street, Daly City, CA 94015.
C. City/County Association of Governments
(C/CAG) was established in 1990 by the County of San Mateo and the Cities of San Mateo
County for preparation, adoption, monitoring and enforcing of Countywide state mandated plans.
A Board of Directors consisting of one council member from each member city and one member
from the County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as
the treasurer of C/CAG. The individual cities and the County are not liable for the debts,
liabilities, or obligations of C/CAG. Condensed unaudited cash basis financial information may
be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos, CA
94070.
87
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
jNOTE 11 -RISK MANAGEMENT
A. Insurance Coverage
The City participates in Association of Bay Area Governments (ABAG) Plan Corporation, a non
profit benefit corporation established to provide liability insurance coverage, claims and risk
management, and legal defense to its participating members. ABAG Plan provides $5,000,000 of
general liability and automobile coverage per occurrence and is responsible for paying claims in
excess of the City's $100,000 self-insured retention. The City's liability coverage through
ABAG is a total of $30 million, with the first $5 million covered out of ABAG's financial
reserves, and with the next $25 million covered from two excess insurance policies acquired by
ABAG. The Plan includes a per occurrence or wrongful act or employee benefit wrongful act up
to $10,000,000 with two retained limits of $5,000,000. For the year ended June 30, 2017, the City
paid ABAG Plan $1,018,320 in premiums and did not receive a refund of premiums paid in prior
years. ABAG Plan has not determined the value of the City's interest in its net position.
Financial statements may be obtained from ABAG Services, P.O. Box 2050, Oakland, CA 94694-
2050.
The City has also purchased excess coverage insurance for worker's compensation claims from
CSAC Excess Insurance Authority $500,000 self-insured retention. For the past five fiscal years,
general liability and worker compensation settlements did not exceed insurance coverage.
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance
Internal Service Fund. Claims and judgments, including a provision for claims incurred but not
reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is
reasonably determinable. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City's liability for uninsured claims is limited to workers' compensation and general liability
claims, as discussed above, and was estimated by management based on prior year's claims
experience as follows:
June 30, 2017 Fiscal Year
Workers' General 2015-2016
Compensation Liability Total Total
Balance, beginning of year $11,228,000 $172,947 $11,400,947 $11,344,000
Current year claims and changes in
estimates of prior years claims 3,148,309 415,602 3,563,911 2,869,747
Claims Paid (1,681,309) (310,607) (1,991,916) (2,812,800)
Balance, end of year $12,695,000 $277,942 $12,972,942 $11,400,947
Current portion $562,000 $150,000 $712,000 $712,000
88
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 12 -COMMITMENTS AND CONTINGENCIES I
The City is subject to litigation arising in the normal course of business. In the opinion of the
City Attorney there is no pending litigation which is likely to have a material adverse effect on
the financial position of the City.
The City participates in Federal and State grant programs. These programs have been audited by
the City's independent auditors in accordance with the provisions of the Federal Single Audit Act
as amended and applicable State requirements. No cost disallowances were proposed as a result
of these audits; however, these programs are still subject to further examination by the grantors
and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
A. Rental Revenues From Use of City Property
The Conference Center Authority, a discrete component unit, leases land from the City under an
operating lease commencing on January 1, 1999, with a 30-year term from February 1, 1999, to
January 31, 2029. The rent amount is subject to re-negotiation at the option of either party
between January 1 and February 28, 2009 and 2019. These leases are considered for accounting
purposes to be operating leases. Property lease revenue from the Conference Center Authority
during the year fiscal year ended June 30, 2017, was $420,000. The cost and carrying amount of
leased land under this lease receivable is $5,040,000. Future minimum lease payments from the
Conference Center Authority land leases are as follows:
Year ending June 30
2018
2019
2020
2021
2022
2023-2027
2028-2029
Total
89
Component Unit
Conference Center
$420,000
420,000
420,000
420,000
420,000
2,100,000
570,000
$4,770,000
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
I NOTE 12 -COMMITMENTS AND CONTINGENCIES (Continued) I
Price Club Associates leases the land for the Costco store on South Airport Boulevard from the
City. Lease payments are based on a percentage of Costco's gross annual sales, with minimum
annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal 2014, Costco
exercised the option to extend the lease through fiscal year 2029, with an option for a 6 year
extension through fiscal year 2035. In fiscal 2017 lease payments were $400,000.
Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the City.
Minimum lease payments are set at $51,800, and are payable through the fiscal year 2062. In
fiscal year 2017 lease payments were $51,800.
Future minimum lease revenues for the Costco and Magnolia Plaza leases are as follows:
Year ending June 30: Costco Ma~nolia Plaza Total
2018 $400,000 $51,800 $451,800
2019 400,000 51,800 451,800
2020 400,000 51,800 451,800
2021 400,000 51,800 451,800
2022 400,000 51,800 451,800
2023-2027 2,000,000 259,000 2,259,000
2028-2032 2,000,000 259,000 2,259,000
2033-2037 800,000 259,000 1,059,000
2038-2042 259,000 259,000
2043-2047 259,000 259,000
2048-2052 259,000 259,000
2053-2057 259,000 259,000
2058-2062 259,000 259,000
$6,800,000 $2,331,000 $9,131,000
NOTE 13 -FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the former
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
Information presented in the following footnotes represents assets and liabilities of the Successor
Agency.
A. Cash and Investments
Cash and investments of the Successor Agency as of June 30, 2017 are discussed in Note 2 to the
financial statements. Information presented in the following footnotes represents other assets and
liabilities of the Successor Agency as of June 30, 2017.
90
NOTE 13
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
B. Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment
Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs
designed to encourage construction of or improvement to low-to-moderate income housing.
Under these programs, grants or loans were provided to homeowners or developers who agreed to
expend these funds in accordance with the Agency's terms.
C. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of
February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if
actual historical cost is not available. Contributed capital assets are valued at their estimated fair
market value on the date contributed. The Successor Agency's policy is to capitalize all assets
with costs exceeding certain minimum thresholds and with useful lives exceeding two years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The
purpose of depreciation is to spread the cost of capital assets equitably among all users over the
life of these assets. The amount charged to depreciation expense each year represents that year's
pro rata share of the cost of capital assets.
Depreciation of all capital assets is charged as an expense against operations each year and the
total amount of depreciation taken over the years, called accumulated depreciation, is reported on
the balance sheet as a reduction in the book value of capital assets.
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to
capital assets:
Buildings
Improvements
Machinery and equipment
Furniture and fixtures
50 years
30 years
5-20 years
12 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period. The
capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
91
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2017
NOTE 13 -FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Transfer to the City Balance
June 30, 2016 Additions of South San Francisco June 30, 2017
Nduciary activities
Capital assets not being depreciated:
Land $52,769,724 ($50,249,460) $2,520,264
Total capital assets not
being depreciated 52,769,724 (50,249,460) 2,520,264
Capital assets being depreciated:
Buildings and Improvements 3,788,506 (2,860, 716) 927,790
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 4,052,202 (2,860,716) 1,191;486
Less accmnulated depreciation for:
Buildings and Improvements (805,650) ($69,646) 467,812 (407,484)
Equipment and Vehicle (239,083) (2,005) (241,088)
Furniture and Fixtures (21,505) (21,505)
Total accwnulated depreciation (1,066,238) (71,651) 467,812 (670,077)
Net capital assets being depreciated 2,985,964 (71,651) (2,392,904) 521,409
Nduciary activity capital assets, net $55,755,688 ($71,651) ($52,642,364) $3,041,673
Current year transfers to the City of South San Francisco include properties totaling $20,591,173
transferred from capital assets to property held for redevelopment in the General Fund, which has
been reported as a Special Item.
D. Long-Term Debt
All of the long-term debt of the Successor Agency were issued by the former Redevelopment
Agency. Current year transactions were as follows:
Balance Balance Current
Type ofOblig;ition June 30, 2016 Retirements June 30, 2017 Portion
2006 Revenue Bonds, 3.75 to 5.13%, due 9/1/35 (I) $56,775,000 ($56,775,000)
1999 Revenue Bonds, 3.3 to 5.0%, due 9/1/18 (2) 815,000 (255,000) $560,000 $275,000
Total Successor Agency $57,590,000 ($57 ,030,000) $560,000 $275,000
92
This Page Left Intentionally Blank
REQUIRED SUPPLEMENTARY INFORMATION
97
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2017
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THENEf PENSION UABil.JfY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Llali.Iity
Service cost $3,449,973 $3,075,813 $3,079,994
Interest on total pension liability 13,930,544 14,393,013 14,870,988
Changes ofbenefit tenIIS
Changes ofassumptions (3,374,655)
Difference between expected and actual experience (1,567,798) (476,337)
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829)
Net change in total pension liali.Iity 8,092,542 2,119,130 6,388,816
Total pension Iiali.Iity-beginning 188,659,588 196,752,130 198,871,260
Total pension liali.Iity-eming (a) $196,752,130 $198,871,260 $205,260,076
Plan fiduciary net position
Contnbutions -employer $4,235,454 $4,546,984 $5,726,981
Contributions -employee 1,466,176 1,411,273 1,622,453
Net investment income 21,712,340 3,221,551 687,860
Other miscellaneous income
Benefit payments, including refunds of employee
contnbutions (9,287,975) (10,407,243) (11,085,829)
Plan to plan resource movement (50,555) 229
Administrative expense (160,268) (86,726)
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032)
Plan fiduciary net position -beginning 125,614,993 143,740,988 142,302,730
Plan fiduciary net position -enmng (b) $143,740,988 $142,302,730 $139,167,698
Net pension liability -ending (a)-(b) $53,011,142 $56,568,530 $66,092,378
Plan fiduciary net position as a percentage of the
total pension liability 73.06% 71.56% 67.80%
Covered payroll $17,725,581 $17,798,104 $21,409,193
Net pension liability as percentage ofcovered-
employee payroll 299.07% 317.83% 308.71%
Notes to Schedule:
Benefit chanr:es. The figures above do not include any liability impact that may have resuhed from plan changes
which occurred after the actuarial vaIUation date. This applies for voluntary benefit changes as well as any offers
of Two Years Additional Service Credit (a.k.a. GJlden Handshakes).
98
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2017
Miscellaneous Agent Multiple-Employer Defined Benefit Pens ion Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30
Actuarially determined contnbution
Contnbutions in relation to the actuarially
determined contnbutions
Contnbution deficiency ( e:xces s)
Covered payroll
Contnbutions as a percentage of covered-
employee payroll
Notes to Schedule
Valuation date:
2015
$4,210,973
4,210,973
$0
$17,798,104
23.66%
6/30/2012
2016
$5,399,856
5,399,856
$0
$21,409,193
25.22%
6/30/2013
Methods and assumptions used to determine contnbution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
Entry age
Level percentage of payroll
24 years as of the Valuation Date
15-year smoothed market
2.75%
3.30% to 14.20% depending on Age,
Service, and type of employment
7.50% net of administrative expenses
The probabilities of Retirement are
based on the 2010 Ca!PERS Experience
Study for the period from 1997 to 2007
The probabilities of mortality are based
on the 2010 CalPERS Experience Study
for the period from 1997 to 2007. Pre-
retirement and Post-retirement mortality
rates include 5 years of projected
mortality improvement using Scale AA
published by the Society of Actuaries
99
2017
$5,228,454
5,228,454
$0
$29,390,370
17.79%
6/30/2014
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2017
Safety Agent l\fultiple-.Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN TIIENEf PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Llability
Service cost $5,143,842 $4,968,087 $5,329,842
Interest on total pension liability 18,899,544 19,398,484 20,134,558
Changes ofbenefit terms
Changes ofassumptions ( 4,789,129)
Difference between expected and actual experience ( 4,226,388) (915,267)
Benefit payments, including refunds of employee
contributions (13, 161,296) (13,556,606) (14,463,995)
Net change in total pension liability 10,882,090 1,794,448 10,085,138
Total pension liability-beginning 256,002,648 266,884,738 268,679,186
Total pension liability-ending (a) $266,884,738 $268,679,186 $278,764,324
Plan fiduciary net position
Contributions -employer $6,535,399 $7,191,715 $8,535,737
Contributions -employee 2,151,163 1,714,039 1,961,907
Net investment income 29,348,051 4,264,997 950,612
Other miscellaneous income
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) ( 14,463 ,995)
Plan to plan resource movement (229)
Administrative expense (219,696) (118,968)
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936)
Plan fiduciary net position -beginning 170,937,835 195,811,152 195,205,601
Plan fiduciary net position -ending (b) $195,811,152 $195,205,601 $192,070,665
Net pension liability -ending (a)-(b) $71,073,586 $73,473,585 $86,693,659
Plan fiduciary net position as a percentage of the total
pens ion liability 73.37% 72.65% 68.90%
Covered payroll $15,994,412 $16,679,857 $18,986,895
Net pension liability as percentage of covered-
employee payroll 444.37% 440.49% 456.60%
Notes to Schedule:
Benefit chan~es. The figures above do not include any liability impact that may have resulted from plan changes
which occurred after the actuarial valuation date. This applies or voluntary benefit changes as well as any offers of
Two Years Additional Service Credit (a.k.a. Golden Handshakes).
100
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2017
Safety Agent Multiple-Employer Defined Benefit Pens ion Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30
Actuarially determined contnbution
Contnbutions in relation to the actuarially
determined contributions
Contnbution deficiency (excess)
Covered payroll
Contnbutions as a percentage of covered-
employee payroll
Notes to Schedule
Valuation date:
2015
$7,191,715
7,191,715
$0
$16,679,857
43.12%
6/30/2012
2016
$8,538,138
8,538,138
$0
$18,986,895
44.97%
6/30/2013
Methods and assumptions used to determine contnbution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
Entry age
Level percentage of payroll
24 years as of the Valuation Date
15-year smoothed market
2.75%
3.300/o to 14.20% depending on Age,
Service, and type of employment
7.50% net ofadministrative expenses
The probabilities ofRetirement are based
on the 2010 CalPERS &perience Study
The probabilities of mortality are based
on the 2010 CalPERS &perience Study
for the period from 1997 to 2007. Pre-
retirement and Post-retirement mortality
rates include 5 years of projected
mortality improvement using Scale AA
published by the Society of Actuaries
101
2017
$8,071,060
8,071,060
$0
$19,563,549
41.26%
6/30/2014
Actuarial
Valuation
Date
6/30/2012
6/30/2013
6/30/2015
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2017
Other Post-Emoloyment Benefits Schedule ofFunding Progress
(fu Thousands)
Overfunded
Fntry Age (Underfunded)
Actuarial Actuarial Actuarial
Value of Accrued Accrued Funded Covered
Assets Liability Liability Ratio Payroll
$0 $71,306 ($71,306) 0% $31,431
0 66,444 (66,444) 0% 29,914
16,175 73,752 (57,577) 21.9% 24,471
102
Overfunded
(Underfunded)
Actuarial
Liability as
Percentage of
Covered Payroll
(226.91'/o)
(222.1%)
(235.3%)
SUPPLEMENTARY INFORMATION
103
This Page Left Intentionally Blank
GENERAL FUND
The General Fund is the City's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund. The General Fund is comprised of
the following:
GENERAL PURPOSE FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
MEASURE W FUND
This fund accounts for revenue as the result of the voter-approved one-half percent sales and use tax.
Revenues are committed for maintenance and enhancement of local services.
105
ASSETS
Cash and investments
Receivables:
Accounts
Accrued interest
Due from Conference Center
Due from other funds
Inventory
Property held for redevelopment
Total Assets
LIABILITIES
Accounts payable
Accrued salaries and benefits
Other payable
Unearned revenue
Total Liabilities
FUND BALANCES
Nonspendable
Committed
Assigned
Unassigned
Total Fund Balances
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2017
General Purpose
$25,098,149
4,855,369
64,817
43,668
336,000
474
20,582,335
$50,980,812
$2,012,208
1,569,242
278,678
106,610
3,966,738
474
2,490,575
5,244,279
39,278,746
47,014,074
Total Liabilities and Fund Balances $50,980,812
106
Measure W Total
$8,124,449 $33,222,598
1,165,700 6,021,069
64,817
43,668
336,000
474
20,582,335
$9,290,149 $60,270,961
$2,012,208
1,569,242
278,678
106,610
3,966,738
474
$9,290,149 11,780,724
5,244,279
39,278,746
9,290,149 56,304,223
$9,290,149 $60,270,961
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017
General Pu!:eose MeasureW
REVENUES
Property taxes $33,405,829
Sales taxes 15,593,032 $8,886,444
Transient occupancy taxes 13,631,507
Franchise Fees 4,090,073
Other taxes 5,708,187
Intergovernmental 1,593,508
Interest and rentals 2,784,072
Licenses and permits 7,823,403
Charges for services 9,451,835
Fines and forfeitures 899,118
Other 1,092,691
Total Revenues 96,073,255 8,886,444
EXPENDITURES
Current:
City Council 206,950
City Clerk 607,096
City Treasurer 110,559
City Attorney 1,187,716
City Manager 1,948,911
Finance 2,613,473
Non-departmental 1,145,698
Human Resources 1,571,647
Fire 25,567,548
Police 25,539,781
Public Works 4,654,758
Parks and Recreation 14,897,157
Library 5,157,355
Economic and Community Development 7,158,564
Total Expenditures 92,367,213
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,706,042 8,886,444
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets
Transfers in 6,021,853
Transfers out (5,031,908) (877,728)
Total Other Financing Sources (Uses) 989,945 (877,728)
Net Change in Fund Balances before special items 4,695,987 8,008,716
Special Item 20,582,335
Net Change in Fund Balances 25,278,322
Fund balances (deficits) -July 1 21,735,752 1,281,433
Fund balances (deficits) -June 30 $47,014,074 $9,290,149
107
Total
$33,405,829
24,479,476
13,631,507
4,090,073
5,708,187
1,593,508
2,784,072
7,823,403
9,451,835
899,118
1,092,691
104,959,699
206,950
607,096
110,559
1,187,716
1,948,911
2,613,473
1,145,698
1,571,647
25,567,548
25,539,781
4,654,758
14,897,157
5,157,355
7,158,564
92,367,213
12,592,486
6,021,853
(5,909,636)
112,217
12,704,703
20,582,335
33,287,038
23,017,185
$56,304,223
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
General Purpose
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $25,486,789 $32,549 ,949 $33,405,829 $855,880
Sales taxes 16,105,336 16,105,336 15,593,032 (512,304)
Transient occupancy taxes 13,100,000 13,500,000 13,631,507 131,507
Franchise fees 4,060,000 4,060,000 4,090,073 30,073
Other taxes 5,083,400 5,483,400 5,708,187 224,787
Intergovernmental 6,794,956 2,504,369 1,593,508 (910,861)
Interest and rentals 3,071,500 3,071,500 2,784,072 (287,428)
Licenses and permits 8,411,713 8,411,713 7,823,403 (588,310)
Charges for services 8,601,108 8,681,908 9,451,835 769,927
Fines and forfeitures 838,500 838,500 899,118 60,618
Other 165,430 185,930 1,092,691 906,761
Amounts available for appropriation 91,718,732 95,392,605 96,073,255 680,650
Charges to appropriations (outflows)
City Council 204,499 207,500 206,950 550
City Clerk 647,864 703,244 631,225 72,019
City Treasurer 123,340 123,340 110,559 12,781
City Attorney 802,002 1,188,002 1,187,716 286
City Manager 1,926,245 2,632,838 2,632,068 770
Finance 2,477,795 3,045,461 3,045,450 11
Non-departmental 473,973 1,212,102 1,211,362 740
Human Resources 1,458,009 1,622,360 1,621,682 678
Fire 25,689,589 26,121,215 25,582,889 538,326
Police 27,104,498 26,319,956 25,539,781 780,175
Public Works 4,975,860 5,229,163 5,173,685 55,478
Parks and Recreation 14,553,266 15,361,255 15,002,999 358,256
Library 5,051,647 5,372,318 5,157,355 214,963
Economic and Community Development 10,331,488 11,115,411 10,507,771 607,640
Total charges to appropriations 95,820,075 100,254,165 97,611,492 2,642,673
OTHER FINANCING SOURCES (USES)
Transfers in 6,089,393 6,208,393 6,021,853 (186,540)
Transfers out (1,668,980) (6,484,937) (5,031,908) 1,453,029
Total Other Financing Sources (Uses) 4,420,413 (276,544) 989,945 1,266,489
NET CHANGE lN FUND BALANCES BEFORE SPECIAL ITEMS 319,070 (5,138,104) (548,292) 4,589,812
Special Item 20,582,335 20,582,335
Net Change in Fund Balances $319,070 $15,444,231 20,034,043 $4,589,812
Fund Balance -July 1 21,735,752
Adjustment to budgetary basis:
Encumbrance adjustments 5,244,279
Fund Balance -June 30 $47,014,074
108
MeasureW Total
Variance with Variance with
Budgeted Amounts Final Budget Budgeted Amounts Final Budget
Actual Positive Actual Positive
Original Final Amount (Negative) Original Final Amount {Negative)
$25,486,789 $32,549,949 $33,405,829 $855,880
$7,000,000 $7,000,000 $8,886,444 $1,886,444 23,105,336 23,105,336 24,479,476 1,374,140
13,100,000 13,500,000 13,631,507 131,507
4,060,000 4,060,000 4,090,073 30,073
5,083,400 5,483,400 5,708,187 224,787
6,794,956 2,504,369 1,593,508 (910,861)
3,071,500 3,071,500 2,784,072 (287,428)
8,411,713 8,411,713 7,823,403 (588,310)
8,601,108 8,681,908 9,451,835 769,927
838,500 838,500 899,118 60,618
165,430 185,930 1,092,691 906,761
7,000,000 7,000,000 8,886,444 1,886,444 98,718,732 102,392,605 104,959,699 2,567,094
204,499 207,500 206,950 550
647,864 703,244 631,225 72,019
123,340 123,340 110,559 12,781
802,002 1,188,002 1,187,716 286
1,926,245 2,632,838 2,632,068 770
2,477,795 3,045,461 3,045,450 11
473,973 1,212,102 1,211,362 740
1,458,009 1,622,360 1,621,682 678
25,689,589 26,121,215 25,582,889 538,326
27,104,498 26,319,956 25,539,781 780,175
176,178 176,178 4,975,860 5,405,341 5,173,685 231,656
14,553,266 15,361,255 15,002,999 358,256
5,051,647 5,372,318 5,157,355 214,963
10,331,488 11,115,411 10,507,771 607,640
176,178 176,178 95,820,075 100,430,343 97,611,492 2,818,851
6,089,393 6,208,393 6,021,853 (186,540)
(5,500,000) (5,500,000) (877,728) 4,622,272 (7, 168,980) (11,984,937) (5,909,636) 6,075,301
(5,500,000) (5,500,000) (877,728) 4,622,272 (1,079,587) (5,776,544) 112,217 5,888,761
1,500,000 1,323,822 8,008,716 6,684,894 1,819,070 (3,814,282) 7,460,424 11,274,706
20,582,335 20,582,335
$1,500,000 $1,323,822 8,008,716 $6,684,894 $1,819,070 $16,768,053 28,042,759 $11,274,706
1,281,433 23,017,185
5,244,279
$9,290,149 $56,304,223
109
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MAJORGOVERNMENTALFUNDSOTHERTHAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
CAPITAL IMPROVEMENT FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
EAST OF 101 SEWER IMP ACT FEES CAPITAL PROJECTS FUND
These fees provide new development's share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
EAST OF 101 TRAFFIC IMP ACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development's share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area.
CHILD CARE IMP ACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development's share of new and expanded childcare facilities to serve the
City.
DEVELOPER DEPOSIT CAPITAL PROJECTS FUND
These fees provide new development's share of funding for the Oyster Point at Highway 101 interchange
improvements.
CAPITAL INFRASTRUCTURE RESERVE FUND
Replacement, upgrade, and maintenance of the City's infrastructure are backlogged, constituting a
significant liability. Funds are set aside in this fund as part of the budget process and as part of the City's
reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks,
buildings, facilities, streets, sidewalks, and storm water facilities).
111
CITY OF SOUTH SAN FRANCISCO
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
REVENUES:
Intergovernmental
Other
Total Revenues
EXPENDITURES:
Current:
Public works
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTIIBR FINANCING SOURCES (USES)
Proceeds from debt
Transfers in
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
Fund balance -July 1
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance -June 30
112
Budget
$7,642,594
250,000
7,892,594
33,095,750
33,095,750
(25,203,156)
218,917
24,597,480
24,816,397
($386,759)
Actual Amounts
$505,664
110,019
615,683
10,018,623
10,018,623
(9,402,940)
5,179,644
5,179,644
( 4,223,296)
367,023
3,767,942
($88,331)
Variance with
Final Budget
Positive
(Negative)
($7, 136,930)
(139,981)
(7,276,911)
23,077,127
23,077,127
15,800,216
(218,917)
(19,417,836)
(19,636,753)
($3,836,537)
CITY OF SOUTH SAN FRANCISCO
EAST OF 101 SEWER IMP ACT FEES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
REVENUES:
Interest and rental
Charges for services
Total Revenues
EXPENDITURES:
Current:
N"on-depar1:nlental
Total Expenditures
EXCESS (DEFICIEN"CY) OF REVENUES
OVER EXPENDITURES
OTHER FIN"ANCIN"G SOURCES (USES)
Transfers out
Total other financing sources (uses)
N"ET CHANGE rn FUND BALANCE
Fund balance (deficit) -July 1
Fund balance (deficit) -June 30
FOR THE YEAR ENDED JUNE 30, 2017
Budget
$185,000
185,000
2,500
2,500
182,500
(342,101)
(342,101)
($159,601)
113
Actual Amounts
$3,065
185,752
188,817
2,500
2,500
186,317
(1,860)
(l,860)
184,457
503,766
$688,223
Variance with
Final Budget
Positive
(Negative)
$3,065
752
3,817
3,817
340,241
340,241
$344,058
CITY OF SOUTH SAN FRANCISCO
EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
REVENUES:
Interest and rental
Charges for services
Total Revenues
EXPENDITURES:
Current:
Public works
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers (out)
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
Fund balance -July 1
Fund balance -June 30
Budget
$109,000
109,000
2,500
2,500
106,500
(3,533,636)
(3,533,636)
($3,427, 136)
114
Variance with
Final Budget
Positive
Actual Amounts (Negative)
$9,506 $9,506
109,867 867
119,373 10,373
2,500
2,500
116,873 10,373
(284,133) 3,249,503
(284,133) 3,249,503
(167,260) $3,259,876
7,213,253
$7,045,993
CITY OF SOUTH SAN FRANCISCO
CAPITAL INFRASTRUCTURE RESERVE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $16,555 $16,555
Total Revenues 16,555 16,555
OTHER FINANCING SOURCES (USES)
Transfers in 2,666,000 2,666,000
Transfers out (6,550,040) (5, 795,495) 754,545
Total other financing sources. (uses) (3,884,040) (3, 129,495) 754,545
NET CHANGE IN FUND BALANCE ($3,867,485) (3,112,940) $754,545
Fund balance -July 1 17,638,385
Fund balance -June 30 $14,525,445
117
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NON-MAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for revenue sources that are restricted by law or administrative
action to expenditures for specified purposes. Special revenue funds used by the City of South San
Francisco include:
Gas Tax -Accounts for State monies received and expended for street improvements, repairs,
engineering, and administration under Streets and Highway Code Sections 2105, 2106, 2107, and
2107.5. Includes sales taxes on gasoline received from the State's Traffic Congestion Relief Fund.
Developer Contributions -Accounts for fees deposited for planning and engineering reviews or
for future project development.
Federal Aviation Grant -This fund accounts for federal monies received for insulating
structures against airport noise.
Community Development Block Grant -Accounts for Federal monies received to be expended
for development of jobs and suitable housing for low-income residents.
Maintenance District -Accounts for a portion of property tax dedicated to provide for the
maintenance of landscaped areas within housing developments.
Transportation Sales Tax -Accounts for the sales tax that provides resources for street
improvements and repairs.
Solid Waste Reduction -Accounts for revenues and expenditures associated with the waste
reduction, recycling, composting and household hazardous waste programs for residents and
businesses.
Supplemental Law Enforcement Services -Accounts for State monies provided for designated
Police department services.
City Programs -Organizations and individuals provide revenues that fund certain programs and
services.
Affordable Housing Trust -The inclusionary housing requirement in the City provides that 20%
of new residential housing units (for projects of 4 or more units) be affordable. These in-lieu fees
(in-lieu of production of affordable housing units by the developer) provide new residential
development's share of affordable housing units.
PEG Equipment and Access -Accounts for the one percent of money set-aside from cable
franchise fees that are used to support public, educational and governmental (PEG) channels.
Transit Station Enhancement in-Lieu Fee -Accounts for revenues that are collected as a
negotiated community benefit.
119
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Capital projects funds are used to account for resources used for the acquisition and construction of
capital facilities or major capital equipment, except for capital improvements financed by proprietary
funds. Capital projects funds used at the City of South San Francisco include:
Non-obligated Capital Projects -Accounts for the construction of assets financed by non-
obligated debt.
Public Safety Impact Fee -These fees are to provide new development's share of funding for
the replacement of public safety capital equipment, vehicles and facilities.
Oyster Point Improvements Impact Fees Capital Projects Fund -These fees provide new
development's share of funding for the Oyster Point at Highway 101 interchange improvements.
Sewer Capacity Charges -accounts for cost recovery charged to new development based on
proportional benefit, associated with providing sewer collection and treatment capacity to new
development, both through existing infrastructure provided, and through future capital projects
not funded by other sources.
120
This Page Left Intentionally Blank
ASSETS
Cash and investments
Receivables:
Accounts
Accrued interest
Loans
Restricted cash and investments
Land held for resale
Total Assets
LIABILITIES
Liabilities:
Accounts payable
Other payable
Deposits
Due to other funds
Unearned revenue
Total Liabilities
Fund Balances:
Restricted
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2017
SPECIAL REVENUE FUNDS
Federal
Developer Aviation
Gas Tax Contributions Grant
$927,786 $6,580,266 $734,127
3,759 19,047 2,729
$931,545 $6,599,313 $736,856
$49,693 $55
1,671,752
736,801
1,721,445 736,856
$931,545 4,877,868
931,545 4,877,868
$931,545 $6,599,313 $736,856
122
Community
Development Maintenance
Block Grant Districts
$2,562,671
$91,856
349,331
108,377
$549,564 $2,562,671
$68,129 $302
2,545
70,674 302
478,890 2,562,369
478,890 2,562,369
$549,564 $2,562,671
SPECIAL REVENUE FUNDS
Solid Supplemental Affordable PEG Transit Station
Transportation Waste Law Enforce-City Housing Equipment and Enhancement
Sales Tax Reduction ment Services Programs Trust Access In-Lieu Fee
$2,182,696 $527,314 $859 $4,169,031 $1,721,045 $924,056 $57,563
15,840 330 44,188
6,722 244 15,460 6,146 3,052 1,418
20,206
1,900,000
$2,189,418 $543,154 $1,103 $4,184,491 $3,647,727 $971,296 $58,981
$49,046
$157
$1,000
157 1,000 49,046
$2,189,418 542,997 103 4,135,445 $3,647,727 $971,296 $58,981
2,189,418 542,997 103 4,135,445 3,647,727 971,296 58,981
$2,189,418 $543,154 $1,103 $4,184,491 $3,647,727 $971,296 $58,981
(Continued)
123
ASSETS
Cash and investments
Receivables:
Accounts
Accrued interest
Loans
Restricted cash and investments
Land held for resale
Total Assets
LIABILITIES
Liabilities:
Accounts payable
Other payable
Deposits
Due to other funds
Unearned revenue
Total Liabilities
Fund Balances:
Restricted
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2017
CAPITAL PROJECTS FUNDS
Non-obligated Public Oyster Point
Capital Safety Improvement
Projects Imeact Fee Imeact Fees
$41,857 $392,544 $29,168
1,590 16
$41,857 $394,134 $29,184
$41,857 $394,134 $29,184
41,857 394,134 29,184
$41,857 $394,134 $29,184
124
Total
Sewer Nonmajor
Capacity Governmental
Char&es Funds
$3,931,801 $24, 782, 784
152,214
11,474 71,657
369,537
108,377
1,900,000
$3,943,275 $27,384,569
$167,225
2,702
1,671,752
1,000
736,801
2,579,480
$3,943,275 24,805,089
3,943,275 24,805,089
$3,943,275 $27,384,569
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
NONMAJORGOVERNMENTALFUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017
SPECIAL REVENUE FUNDS
Federal Community
Developer Aviation Development
Gas Tax Contributions Grants Block Grant
REVENUES
Property taxes
Other taxes
Intergovernmental $1,507,105 $377,470
Interest and rentals 1,216 $8,047 $995 44,349
Charges for services 2,365,609
Other 10,694
Total Revenues 1,508,321 2,373,656 995 432,513
EXPENDITURES
Current:
Economic and community development 319,643 995 851,305
Public works
:Non-departmental
Fire
Police
Other
Debt service:
Principal repayments
Total Expenditures 319,643 995 851,305
EXCESS (DEFICIE:NCY) OF REVENUES
OVER (UNDER) EXPE:NDITURES 1,508,321 2,054,013 (418,792)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,854,509) (57,200~
Total Other Financing Sources (Uses) (1,854,509) (57,200)
:Net Change in Fund Balances (346,188) 1,996,813 (418,792)
Fund balance -July 1 1,277,733 2,881,055 897,682
Fund balance -June 30 $931,545 $4,877,868 $478,890
126
Maintenance
Districts
$1,751,019
1,751,019
1,199,741
1,199,741
551,278
(141,990)
(141,990)
409,288
2,153,081
$2,562,369
Transportation
Sales Tax
$1,568,013
2,755
1,570,768
1,570,768
(657,956)
(657,956)
912,812
1,276,606
$2,189,418
Solid
Waste
Reduction
$190,078
190,078
130,523
130,523
59,555
(282,201)
(282,201)
(222,646)
765,643
$542,997
SPECIAL REVENUE FUNDS
Supplemental
Law Enforce-
ment Services
$131,129
139
131,268
131,268
131,268
103
$103
City
Programs
$5,414
909,264
914,678
203,451
270,338
473,789
440,889
(500,000)
(500,000)
(59,111)
4,194,556
$4,135,445
127
Affordable
Housing
Trust
$22,008
22,008
22,008
22,008
3,625,719
$3,647,727
PEG Transit Station
Equipment and Enhancement
Access In-Lieu Fee
$1,177 $3,193
182,289
183,466 3,193
2,880
3,845
2,880 3,845
180,586 (652)
459,633
(400,000)
59,633
180,586 58,981
790,710
$971,296 $58,981
(Continued)
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2017
CAPITAL PROJECTS FUNDS
Non-obligated Public Oyster Point Sewer
Capital Safety Improvement Capacity
Projects lmJ.!act Fee lmJ.!act Fees Chaq~es
REVENUES
Property taxes
Other taxes
Intergovernmental $36,024
Interest and rentals $545 $5
Charges for services 23,650 1,630,615
Other 132,654
Total Revenues 133,199 23,655 1,666,639
EXPENDITURES
Current:
Economic and community development
Public works 36,285
Non-departmental
Fire 64,818
Police 123,597
Other
Debt service:
Principal repayments 23,000
Total Expenditures 188,415 23,000 36,285
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (55,216) 655 1,630,354
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out ($475,220) (3,196)
Total Other Financing Sources (Uses) (475,220) (3,196)
Net Change in Fund Balances (475,220) (58,412) 655 1,630,354
Fund balance -July 1 517,077 452,546 28,529 2,312,921
Fund balance -June 30 $41,857 $394,134 $29,184 $3,943,275
128
Total
Nonmajor
Governmental
Funds
$1,751,019
1,699,142
1,920,599
89,843
4,209,952
1,234,901
10,905,456
1,302,466
1,236,026
2,880
64,818
458,316
274,183
23,000
3,361,689
7,543,767
459,633
(4,372,272)
(3,912,639)
3,631,128
21,173,961
$24,805,089
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
GAS TAX DEVELOPER CONTRIBUTIONS
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental $1,600,736 $1,507,105 ($93,631)
Interest and rentals 15,000 1,216 (13,784) $8,047 $8,047
Charges for services $1,702,000 2,365,609 663,609
Other
Total Revenues 1,615,736 1,508,321 (107,415) 1,702,000 2,373,656 671,656
EXPENDITURES
Current:
Economic and community development 438,650 438,341 309
Public works
Non-departmental
Fire
Other
Police
Debt service:
Principal repayments
Total Expenditures 438,650 438,341 309
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,615,736 1,508,321 (107,415) 1,263,350 1,935,315 671,965
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,927,493) (1,854,509) 1,072,984 (643,512) (57,200) 586,312
Total Other Financing Sources (Uses) (2,927,493) (1,854,509) 1,072,984 (643,512) (57,200) 586,312
NET CHANGE IN FUND BALANCES ($1,311,757) (346, 188) $965,569 $619,838 1,878, 115 $1,258,277
Adjustment to budgetary basis:
Encumbrance adjustments 118,698
Fund balance -July 1 1,277,733 2,881,055
Fund balance -June 30 $931,545 $4,877,868
130
FEDERAL AVIATION COMMUNITY DEVELOPMENT
GRANT BLOCK GRANT MAINTENANCE DISTRICTS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,389,805 $1,751,019 $361,214
$647,321 $377,470 ($269,851)
$4,000 $995 ($3,005) 44,349 44,349
11,437 10,694 ~7432
4,000 995 (3,005) 658,758 432,513 (226,2452 1,389,805 1,751,019 361,214
500 995 (495) 833,076 931,612 (98,536)
1,559,251 1,199,741 359,510
___ 5o_o _____ 99_5 ____ (_49_5~) __ 8_3~3,_07_6_ 931,612 (98,5362 1,559,251 1,199,741 359,510
3,500 (3,500) (174,318) (499,099) (324,781) (169,446) __ 55_1.._,2_78 ____ 72_0.._,7_24_
(95,330) 95,330 (218,5212 (141,9902 76,531
(95,3302 95,330 (218,5212 (141,990) 76,531
$3,500 ($3,500) ($269,6482 (499,099) ($229,4512 ($387,9672 409,288 $797,255
80,307
897,682 2,153,081
$478,890 $2,562,369
131
CITY OF SOUTH SAN FRANCISCO
NONMAJORGOVERNMENTALFUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
TRANSPORTATION SALES TAX SOLID WASTE REDUCTION
Variance Variance
Final Positive Final Positive
Budliiet Actual (Neliiative2 Budget Actual (Negative)
REVENUES
Property taxes
Other taxes $1,468,995 $1,568,013 $99,018
Intergovernmental
Interest and rentals 25,000 2,755 (22,245)
Charges for services $180,000 $190,078 $10,078
Other
Total Revenues 1,493,995 1,570,768 76,773 180,000 190,078 10,078
EXPENDITURES
Current:
Economic and community development 157,697 151,747 5,950
Public works
Non-departmental
Fire
Other
Police
Debt service:
Principal repayments
Total Expenditures 157,697 151,747 5,950
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPEN"DITURES 1,493,995 1,570,768 76,773 22,303 38,331 16,028
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,581,163) (657,956) 1,923,207 (766,8702 (282,2012 484,669
Total Other Financing Sources (Uses) (2,581,163) (657,9562 1,923,207 (766,8702 (282,201) 484,669
N"ET CHANGE IN FUN"D BALANCES ($1,087,168) 912,812 $1,999,980 ($744,5672 (243,870) $500,697
Adjustment to budgetary basis:
Encumbrance adjustments 21,224
Fund balance -July 1 1,276,606 765,643
Fund balance -June 30 $2,189,418 $542,997
132
SUPPLEMENTAL LAW
ENFORCEMENT SERVICES
Variance
Final Positive
Budget Actual (Negative)
$100,000 $131,129 $31,129
139 139
100,000 131,268 31,268
100,000 131,268 (31,268)
100,000 131,268 (31,268)
103
$103
CITY PROGRAMS
Final
Budget
$909,000
909,000
270,000
226,423
496,423
412,577
(1,622,982)
(l,622,982)
($1,210,405)
Actual
$5,414
909,264
914,678
270,338
203,451
473,789
440,889
(500,000)
(500,000)
Variance
Positive
(Negative)
$5,414
264
5,678
(338)
22,972
22,634
28,312
1,122,982
1,122,982
(59,111) $1,151,294
4,194,556
$4,135,445
133
(Continued)
AFFORDABLE HOUSING TRUST
Final
Budget
$22,000
22,000
22,000
$22,000
Actual
$22,008
22,008
22,008
22,008
3,625,719
$3,647,727
Variance
Positive
(Negative)
$8
8
8
$8
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2017
PEG TRANSIT ENHANCEMENT
EQUIPMENT AND ACCESS IN-LIEU FEE
Variance Variance
Final Positive Final Positive
Budll;et Actual (Negative) Budll;et Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Interest and rentals $5,000 $1,177 ($3,823) $3,193 $3,193
Charges for services
Other 125,000 182,289 57,289
Total Revenues 130,000 183,466 53,466 3,193 3,193
EXPENDITURES
Current:
Economic and community development
Public works
Non-departmental 209,117 49,380 159,737
Fire
Other 3,845 3,845
Police
Debt service:
Principal repayments
Total Expenditures 209,117 49,380 159,737 3,845 3,845
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (79,117) 134,086 213,203 (652) (652)
OTHER FINANCING SOURCES (USES)
Transfers in $460,000 459,633 (367)
Transfers out (400,000) (400,000)
Total Other Financing Sources (Uses) 60,000 59,633 (367)
NET CHANGE IN FUND BALANCES ($79,117) 134,086 $213,203 $60,000 58,981 ($1,019)
Adjustment to budgetary basis:
Encumbrance adjustments 46,500
Fund balance -July 1 790,710
Fund balance -June 30 $971,296 $58,981
134
NONOBLIGATED
CAPITAL PROJECTS
Variance
Final Positive
Budget Actual (Negative)
($475,220) ($475,220) ----
(475,220) (475,220) ----
($475,220) (475,220) ====
517,077
$41,857
PUBLIC SAFETY
Final
Budget
$132,000
132,000
70,294
118,323
188,617
(56,617)
IMPACT FEE
Actual
$545
132,654
133,199
64,818
123,597
188,415
(55,216)
Variance
Positive
(Negative2
$545
654
1,199
5,476
5,274
(2022
1,401
OYSTER POINT
IMPROVEMENT IMPACT FEES
Variance
Final Positive
Budget Actual (Negative2
$5 $5
$23,650 23,650
23,650 23,655 5
52,561 52,561
23,000 (23,000)
52,561 23,000 29,561
(28,9112 655 29,566
(137,220) __ (._.3, ...... 19_6~) __ 13_4._,0_24_ ---------------
(137,220) (3,196) __ 13_4._,0_24_ ---------------
($193,8372 (58,412) $135,425 ($28,9112 655 $29,566
452,546 28,529
$394,134 $29,184
135
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2016
SEWER
CAP A CITY CHARGES
Variance
Final Positive
Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental $36,024 $36,024
Interest and rentals
Charges for services $1,630,000 1,630,615 615
Other
Total Revenues 1,630,000 1,666,639 36,639
EXPENDITURES
Current:
Economic and community development
Public works 2,500 36,285 (33,785)
Non-departmental
Fire
Other
Police
Debt service:
Principal repayments
Total Expenditures 2,500 36,285 (33,785)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,627,500 1,630,354 2,854
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
I Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES $1,627,500 1,630,354 $2,854
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance -July 1 2,312,921
Fund balance -June 30 $3,943,275
136
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service. Internal service funds used at the City include:
City Service -Accounts for vehicle maintenance and information technology services provided
to City departments.
Self Insurance -Accounts for workers' compensation, general liability and property damage
claim activity and financing is represented in this fund.
Health and Retirement Benefits -Accounts for health and retirement benefits paid on the behalf
of eligible City employees.
Equipment Replacement -Accounts for resources set-aside for the future replacement of City
vehicles and equipment.
137
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ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Deposit
Total current assets
Noncurrent assets:
Capital assets:
Nondepreciable
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2017
Health and
Self Retirement
City Service Insurance Benefits
$1,237,277 $13,720,637 $9,736,034
10,128
4,363 42,893 32,128
157,500 46,010
1,251,768 13,921,030 9,814,172
Depreciable, net of accumulated depreciation 871
Total Assets 1,252,639 13,921,030 9,814,172
LIABILITIES
Current liabilities:
Accounts payable 101,554 15,023 19,231
Other payable 10,980
Current portion of accrued insurance loss 712,000
Current portion of compensated absences 86,550 607,641
Current portion oflong-terrn debt
Total current liabilities 199,084 727,023 626,872
Noncurrent liabilities:
Accrued insurance loss 12,260,942
Compensated absences obligation 90,321 718,381
Net OPEB obligation 26,173,032
Noncurrent portion oflong-terrn debt
Total noncurrent liabilities 90,321 12,260,942 26,891,413
Total Liabilities 289,405 12,987,965 27,518,285
NET POSITION:
Net investment in capital assets 871
Unrestricted 962,363 933,065 (17,704,113)
Total Net Position $963,234 $933,065 ($17,704,113)
139
Equipment
Replacement Total
$2,496,608 $27,190,556
10,128
9,814 89,198
203,510
2,506,422 27,493,392
162,140 162,140
5,629,093 5,629,964
8,297,655 33,285,496
78,467 214,275
341,706 352,686
712,000
694,191
538,421 538,421
958,594 2,511,573
12,260,942
808,702
26,173,032
1,135,102 1,135,102
1,135,102 40,377,778
2,093,696 42,889,351
4,117,710 4,118,581
2,086,249 (13, 722,436)
$6,203,959 ($9,603,855)
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2017
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $3,893,005 $5,899,659 $13,470,017 $1,754,155 $25,016,836
Total Operating Revenues 3,893,005 5,899,659 13,470,017 1,754,155 25,016,836
OPERATING EXPENSES
Personnel expenses 1,792,496 1,366,584 11,385,537 14,544,617
OPEB expenses 2,070,095 2,070,095
Professional services 401,187 217,802 20,513 639,502
Program supplies 1,164,607 92,806 3,080 134,263 1,394,756
Insurance 11,578 1,350,964 1,362,542
Self-insurance and claims 3,253,303 3,253,303
Repair and maintenance 395,772 613,494 1,009,266
Utilities 29,478 29,478
Depreciation 580 760,341 760,921
Other 8,693 306,844 315,537
Total Operating Expenses 3,804,391 6,281,459 13,786,069 1,508,098 25,380,017
Operating Income (Loss) 88,614 (381,800) (316,052) 246,057 (363,181)
NON OPERATING
REVENUES (EXPENSES)
Interest income 1,685 16,042 12,193 2,880 32,800
Interest expense (65,943) (65,943)
Gain from disposal of capital assets 19,646 19,646
Other 92,286 92,286
Total Nonoperating
Revenues (Expenses) 1,685 108,328 12,193 (43,417) 78,789
Net income (loss) before transfers 90,299 (273,472) (303,859) 202,640 (284,392)
TRANSFERS
Transfers in 273,472 759,104 1,032,576
Transfers out (96,245) (96,245)
Change in Net Position 90,299 455,245 106,395 651,939
Net Position -(deficits) July 1 872,935 933,065 (18,159,358) 6,097,564 (10,255, 794)
Net Position -(deficits) June 30 $963,234 $933,065 ($17,704,113) $6,203,959 ($9,603,855)
140
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2017
Health and
Self Retirement
City Service Insurance Benefits
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $3,889,738 $5,991,945 $13,470,017
Cash payment to suppliers for goods and services (2,011,315) (1,739,446) (1,132,200)
Cash payment to employees for services (1,797,423) (1,352,661) (11,265,260)
Cash payment for judgments and claims (1,681,308)
Other receipts
Net Cash Provided by Operating Activities 81,000 1,218,530 1,072,557
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 273,472 759,104
Transfers out
Net Cash Provided by Noncapital Financing Activities 273,472 759,104
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease
Interest payments
Acquisition of capital assets, net
Proceeds from the sale of capital assets
Net Cash Used in Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (14) 3,761 (13,161)
Net Cash Provided by Investing Activities (14) 3,761 (13,161)
Net Increase (Decrease) in cash and cash equivalents 80,986 1,495,763 1,818,500
Cash and cash equivalents, beginning 1,156,291 12,224,874 7,917,534
Cash and cash equivalents, ending $1,237,277 $13,720,637 $9,736,034
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $88,614 ($381,800) ($316,052)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 580
Other non-operating revenue (expenses) 92,286
Net change in assets and liabilities:
Accounts and lease receivables (3,267)
Accounts payable (8,493) 13,923 19,218
Other payable (77,874)
Accrued insurance losses 1,571,995
OPEB obligations 1,268,332
Compensated absence obligations 3,566 101,059
Net Cash Provided by (Used in) Operating Activities $81,000 $1,218,530 $1,072,557
141
Equipment
Replacement Total
$1,754,155 $25,105,855
(747,757) (5,630,718)
(14,415,344)
(1,681,308)
409,917 409,917
1,416,315 3,788,402
1,032,576
(96,245) (96,245)
(96,245) 936,331
(565,475) (565,475)
(65,943) (65,943)
(1,629,268) (1,629,268)
19,646 19,646
(2,241,040) (2,241,040)
1,513 (7,901)
1,513 (7,901)
(919,457) 2,475,792
3,416,065 24,714,764
$2,496,608 $27,190,556
$246,057 ($363,181)
760,341 760,921
92,286
(3,267)
68,211 92,859
341,706 263,832
1,571,995
1,268,332
104,625
$1,416,315 $3,788,402
This Page Left Intentionally Blank
AGENCY FUND
An agency fund is used to account for monies where the City is acting as an agent for another
government entity. The agency fund used at the City of South San Francisco consisted of:
SSF Employee Deferred Comp Trust Oversight -This fund is used to pay for the
administrative costs of monitoring the Deferred Compensation Funds on behalf of City
employees.
143
ASSETS
Cash and investments
Interest receivable
Total Assets
LIABILITIES
Accounts payable
Other accrued liabilities
Total Liabilities
CITY OF SOUTH SAN FRANCISCO
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2017
SSF Employee Deferred Comp Trust Oversight
Balance Balance
June 30, 2016 Additions Deductions June 30, 2017
$62,944 $105,663 $62,944 $105,663
158 318 158 318
$63,102 $105,981 $63,102 $105,981
$12,500 $24,492 $12,500 $24,492
50,602 81,489 50,602 81,489
$63,102 $105,981 $63,102 $105,981
144
STATISTICAL SECTION
This part of the City's Comprehensive Annual Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health. In contrast to the financial
section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well being have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue
source, the property tax:
1. Assessed Value and Estimated Market Value of Taxable Property
2. All Overlapping Property Tax Rates
3. Principal Property Tax Payers
4. Twenty Largest Taxable Property Owners for Merged RDA Project Area
5. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels
of outstanding debt and the City's ability to issue additional debt in the future:
1. Ratio of Outstanding Debt by Type
2. Computation of Direct and Overlapping Debt
3. Computation of Legal Bonded Debt Margin
4. Continuing Disclosure Requirements:
a. Revenue Bond Coverage
b. Sewer Debt Service Coverage
c. Bonded Debt Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
145
STATISTICAL SECTION -(Continued)
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City's financial report relates to the services the City provides and the activities it performs:
1. Full-Time City Government Employees by Function
2. Operating Indicators by Function/Program
3. Capital Asset Statistics by Function/Program
Miscellaneous Information
1. Collection and Use of 1 % Special Transient Occupancy Tax
Sources
Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual
Financial Reports for the relevant year.
146
Thousan ds
$180,000
$160,000
$140,000
$120,000
"" ~
$100,000
,____
$80,000
$60,000
$40,000
$20,000
$0
2008
2008
General F und
Reserved $283,435
Unreserved 14,503,263
Nonspendable
Committed
Assigned
Unassigned
Total General F und $14,786,698
AJI Other Gove rn menta l Funds
Reserved $70,194,663
Unreseived, reported in:
Special revenue fun ds 21,286,431
Deb t service fu nds 11 9,525
Capital proj ect funds 3,578,595
Restricted
Assigned
Unassigned
Total all other governmenta l fu nds $95,179,2 14
-
""
~
>---
--
1---1---
CITY O F SOUT H SAN FRANCISCO
F und Bala nces of G overnmental Fu nds
L ast Ten Fisca l Yea rs
(M odified Ac crual Basis of Account in g)
•
1---
>---
-
>---
..
..
>--->--->--->--->---
Ill
..
2009 2010 201 1 20 12 2013 20 14 20 15
(b
2009 2010 2011 2012 2013
$554 ,692 $889,186
17,509,823 14,84 1,958
67,129 $90,167 $805,677
40 1,797 208 ,054 1,406,430
77 1,849 840,365 566,104
15,049 ,168 17,347,445 23 ,498,194
$18,064,515 $15,73 1,144 $16,289,943 $18,486,03 1 $26,276,405
$65,11 7,97 1 $64 ,163 ,373
23,826,184 11 ,079,390
12 1,764 3,198,6 00
51,589,538 69,286,2 11
$163,727,096 $43,364,540 $30,539,396
2,390,904 2,076,065 1,105 ,320
(14,353,252) (1,388,956) (1,379,895)
$140,655 ,457 $147,727,574 $15 1,764,748 $44,051,649 $30,264,82 1
•
'--• >---.. •
L---'--
L--->---~
2016 2017
2014 2 015
$14,163 $1 ,134
3,879,45 1 2,536,790
743 ,746 1,458,029
15,89 1,899 17,285,422
$20,529,259 $21,281,375
$42,392,238 $43 ,437,36 1
0 6,188,554
(52 1,604) (40,459)
$4 1,870,634 $49,585,4 56
(a) T he change in total fund ba lance for the Ge neral Fund and oth er governmental funds is explained in M anagement's Discussion a nd Analysis.
(b ) In fisca l year 20 11 , the C ity implemented GASB 54, Fund B alance R eporting and Governmental Fu nd Type Defi nitions,
wh ich requires the C ity to classify its fund balances based on spending constraints im posed on the use of resou rces.
150
•To tal Committed
C TotttlUn:issigned
•Total Assigned
C Totnl Restricted
C Total Nonspe ndable
a Total UnreserYcd
11To1.:1!Rescrved
2016 2017
$33,580 $474
3,654,283 11 ,780,724
1,578,153 5,244,279
17,751,169 39,278,746
$23,017,185 (a) $56,304,223
$52,938,897 $55,195 ,500
367,023 0
0 (88,33 1)
$53,305,920 $55,107,169
This Page Left Intentionally Blank
Revenues
Property Taxes
Other Taxes
Intergovernmental revenues
Interest and Rents
Licenses and permits
Charges for services
Fines and forfeitures
Other
Total Revenues
Expenditures
Current:
General government
Fire Department
Police Department
Public works
Recreation and Community Services
Library
Economic and Community Development
Other
Capital outlay
Debt service:
Principal repayment
Interest and fiscal charges
Total Expenditures
Excess (deficiency) ofrevenues over
(under) expenditures
Other Financing Sonrces (Uses)
Transfers in
Transfers (out)
Tax allocation bonds issued
Premium on bonds
Payments to refunded bond escrow
Other debt proceeds
Sale of capital assets
Total other financing sources (uses)
Net Change in fund balances
before extraordinary and special items
Extraordinary item
Special item
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
For The Fiscal Year Ended June 30,
2008 2009 2010
$44,165,490 $59,369,550 $54,718,916
24,313,543 22,755,561 19,771,310
13,219,053 15,088,171 10,609,605
12,318,594 7,625,428 7,680,293
5,716,017 5,957,815 7,270,081
10,792,043 13,644,314 9,986,352
1,073,603 1,013,434 1,054,549
1,091,514 3,722,979 2,542,492
112,689,857 129,177,252 113,633,598
5,897,066 5,752,948 5,916,364
16,875,311 17,724,990 16,790,834
18,757,394 19,989,136 19,359,770
14,910,401 12,360,989 8,416,242
10,826,041 10,700,332 9,960,090
4,766,821 4,679,270 4,342,662
13,848,049 19,554,780 26,279,406
1,023,435 474,805
36,544,741 4,247,021 6,724,022
1,692,296 1,755,426 1,887,434
5,441,036 4,571,150 4,255,050
130,582,591 101,810,847 103,931,874
(17,892,734) 27,366,405 9,701,724
20,182,014 18,754,214 18,047,351
(24,253,621) (19,330,934) (22, 175,268)
13,750 13,784
( 4,057,857) (562,936) (4,127,917)
(21,950,591) 26,803,469 5,573,807
($21,950,591) $26,803,469 $5,573,807
8.9% 6.8% 6.6%
152
2011 2012
$54,128,998 $38,174,655
23,412,992 28,866,546
11,860,658 11,580,530
7,612,223 4,955,223
7,004,603 3,056,507
10,010,541 10,088,070
2,133,677 2,184,234
2,261,247 3,000,563
118,424,939 101,906,328
6,407,094 6,485,219
18,140,954 18,812,861
20,272,684 21,217,818
9,856,201 14,253,609
10,168,425 10,101,408
4,231,762 4,272,701
19,894,692 8,184,334
6,969,052 8,894,514
1,842,000 1,752,000
4,274,170 1,817,764
102,057,034 95,792,228
16,367,905 6,114,100
88,175,882 108,413,018
(99,947,814) (109,646,766)
11,771,932 (1,233,748)
4,595,973 4,880,352
(110,397 ,363)
$4,595,973 ($105,517,011)
6.7% 4.2%
For The Fiscal Year Ended June 30,
2013 2014 2015 2016 2017
$27,077,697 $23,010,136 $24,650,648 $26,438,620 $35,156,848
31,894,811 33,931,446 38,275,478 $41,811,097 49,608,385
13,054,594 10,757,440 10,453,071 12,360,354 4,019,771
3,238,089 3,632,693 3,531,966 4,207,453 3,100,692
3,054,451 4,366,271 4,795,158 6,896,897 7,823,403
9,275,724 16,864,409 13,387,712 15,386,358 14,485,367
1,753,682 1,528,319 1,221,413 791,756 899,118
1,837,675 2,249,728 4,660,668 2,439,579 2,906,625
91,186,723 96,340,442 100,976,114 110,332,114 118,000,209
6,658,532 5,970,429 7,167,969 8,469,924 9,399,930
20,877,917 20,163,759 21,247,989 24,175,340 25,632,366
22,542,135 23,309,568 23,611,743 25,458,986 25,998,097
9,186,493 16,791,894 15,923,071 14,846,346 12,143,965
10,927,433 11,552,502 11,826,407 13,234,028 14,897,157
4,112,570 3,987,928 4,247,650 4,681,188 5,157,355
20,512,545 5,972,966 5,917,508 7,907,655 8,943,111
480,290 395,749 274,183
453,381 352,674 656,000 23,000
52,139
94,869,764 88,202,427 90,775,301 99,825,216 102,469,164
(3,683,041) 8,138,015 10,200,813 10,506,898 15,531,045
4,467,530 21,870,234 17,983,227 8,143,075 14,327,130
(6,780,943) (24,149,582) (19,717,102) (13,193,699) (16,368,499)
1,016,276
(2,313,413) (2,279,348) (1,733,875) (5,050,624) (1,025,093)
(5,966,454) 5,858,667 8,466,938 5,456,274 14,505,952
20,582,335
($5,966,454) $5,858,667 $8,466,938 $5,456,274 $35,088,287
0.1% 0.6% 0.4% 0.7% 0.0%
153
CITY OF SOUTH SAN FRANCISCO
DIRECT AND OVERLAPPING
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
2008 1.000 0.1370 1.1370 (1,14)
2009 1.000 0.1426 1.1426 ( 1, 15)
2010 1.000 0.1600 1.1600 (1, 16)
2011 1.000 0.1707 1.1707 (1 ,17)
2012 1.000 0.1824 1.1824 (1, 18)
2013 1.000 0.1959 1.1959 ( 1, 19)
2014 1.000 0.2046 1.2046 (1 ,20)
2015 1.000 0.1822 1.1822 (1 ,21)
2016 1.000 0.1750 1.1750 (1 ,22)
2017 1.000 0.1749 1.1749 (1 ,23)
Notes:
(1) Like other cities, South San Francisco includes several property tax rate areas with different rates. A mean average is indicated.
(14) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0360 percent which includes South San Francisco Unified School District bonds
and San Mateo Jr. College bond, 3 have the rate of 1.0756, which includes Jefferson Un ion School bonds, one has a rate of 1.0716, which includes
San Bruno Park Elementary and San Mateo High bonds, and one at a tax rate of 1.0596 percent, for Brisbane ES D bonds and Jefferson Union
High School bonds .
(15) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0327 percent, which includes South San Francisco Unified School D istrict bonds
and San Mateo Jr. College bond. 2 have the rate of 1.0719 and one has a rate of 1.0689, which includes Jefferso n Union School bonds and
Brisbane ESD bonds, and one has a rate of 1.0710 which includes San Bruno Park Elementary.
(16) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.03 77 percent, which includes South San Francisco Unified School Di strict bonds
and San Mateo Jr. College bond . 3 have the rate of 1.0783 and one has a rate of 1.0748, which includes Jefferson Union School bonds, and
Brisbane ESD bonds, and one has a rate of 1.0804 w hich includes San Bruno Park Elementary.
(17) Of the 68 tax rate areas in the City, 63 hav e a tax rate of 1.0389 percent, which includes SSFUSD bonds and San Mateo Jr College bond. 3
has a rate of 1.0870 percent and one at 1.0832 percent which includes Jefferson Union School bonds and Brisbane ESD bonds. One has a rate of
1.0834 percent which includes San Bruno Park Elementary.
(18) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0420 percent, which includes SS FU SD bonds and San Mateo Jr College bond. 3
has a rate of 1.0893 percent and one at 1.0854 percent which includes Jefferso n Union School bond, Brisbane E SD bonds & San Mateo JR
College bonds and one has a rate of 1.0909 percent which includes San Bruno Park Elementary .
(19) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0521 percent, whi ch includes SSFUSD bonds, San Mateo Jr College bond, and
San Mateo Comm College. 4 has a rate of 1.092 1 percent which includes Brisbane E SD Bond, Jefferson H ig h bonds, SM Jr Coll ege bond a nd
San Mateo Comm Coll ege. 1 has a rate of 1.0905 percent, which includes San Bruno Pk Elem bond, SM Union High, SM Jr College bond and
San Mateo Comm Coll bond.
(20) Of the 68 tax rate a reas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and
San Mateo Comm Colleg e. 4 has a rate of 1.1048 percent which includes Bri sbane ESD Bond, Jefferson High bonds, SM Jr College bond and
San Mateo Comm College. 1 has a rate of 1.0864 percent, w hi ch includes San Bruno Pk Elem bond, SM Union High, SM High, and San Mateo
Comm College . 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and
San Mateo Comm Coll bond.
(21) Of the 68 tax rate areas in the City , 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and
San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson Hi g h bonds, SM Jr College bond and
San Mateo Comm College. 1 has a rate of 1.0983 percent, which includes San Bruno Pk E lem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(22) Of the 68 tax rate areas in the C ity, 63 have a tax rate of 1.0707 percent, which in cludes SSFUSD bond s, San Mateo Jr College bond, and
San Mateo Comm Coll ege. 3 has a rate of 1.1080 perce nt and 1 with 1.10 68 percent rate which includes College bond Brisbane ES D Bond,
Jefferson High bonds, SM Jr and San Mateo Co mm Coll eg e. 1 has a rate of 1.0929 percent, which in cludes San Bruno Pk E lem bond, SM Uni on
High, SM High, SM Jr Coll ege bond and San Mateo Comm Coll bond.
(23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr College bond . 4 has
a rate of 1.1 282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD , SM Jr College bonds. 1 has a rate of 1.0910
percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr Co llege bond and Sa n Mateo Comm Coll bond .
Source: HDL, Coren & Cone (San M ateo County Assessor 2007/08-2016/1 7 Tax Rate Table).
155
Vi
-.)
Property Tax Payer
Slough
Genentech
Britannia Pointe Grand LP
ARE San Francisco Exch LLC
BMR 1000 Gateway LP N A
Gateway Boulevard LLC
Gateway Center LLC
ASN Solaire LLC
HCP Inc
Costco Wholesale Corp
HPTMI II Properties Trust
BP Gateway Center LLC
PR 701 Gateway LLC
Amgen SFLLC
Blue Line Transfer Inc.
OIK Sierra Point LLC
Felcor CMB SSF Holdings LP
Areus Inc
Prologis Uslv Newca 2 LLC
Theravance Inc.
Total Top Twenty
Percent of AV
CITY OF SOUTH SAN FRANCISCO
Twenty Largest Taxable Property Owners for Merged RDA Project Area
June 30, 2017
Total % of Total
Assessed AV in Project
Secured Unsecured Value Area Land Use
$965,586,473 $965,586,473 21.78% Industrial
241,489,807 170,679,681 $412, 169,488 9.30% Industrial, Office, R&D
297,590,141 $297,590,141 6.71% Industrial
$229,102,810 $229,102,810 5.17% Industrial, Commercial
213,145,455 $213,145,455 4.81% Commercial
201,733,291 $201,733,291 4 .55% Industrial
143,533,477 0 $143,533 ,477 3.24% Commercial
110,934, 105 $110,934, 105 2.50% Residential
98,463,117 $98,463, 117 2.22% Unknown
41,669,548 38 ,231,010 $79 ,900,558 1.80% Commercial
66,190,793 $66,190,793 1.49% Residential, Hotels, Motels
59,261,340 $59,261,340 1.34% Commercial, Office, 2+ stories
58,579,924 $58,579,924 1.32% Commercial
57,824,838 $57,824,838 1.30% Industrial
49,075,135 $49,075, 135 1.11% Industrial
43,856,270 $43,856,270 0 .99% Commercial, Office, 2+ stories
39,708,919 $39,708,919 0.90% Residential, Hotels, Motels
35,242,075 $35,242,075 0.79% Commercial, Office, 2+ stories
29,493,009 $29,493 ,009 0 .67% Commercial, Office, 2+ stories
26,780,291 $26,780,291 0.60% Industrial, Office, R&D
2 ,924 ,655 ,689 293 ,515 ,820 3 ,218 ,17 1,509 72 .59 %
90.9% 9.1%
(1) Given the nature of the research performed at Genentech, a significant portion of the total assessed value of the Genentech Property is likely equipment. It would appear on the secured roll as that contains
the value of personal property/improvements
Source: San Mateo County Assessor, RDA Secured & Unsecured SSF 2017 Tax Rolls
Source: Muni Services
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2017
2016-17 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
OVERLAPPING TAX AND ASSESSMENT DEBT:
San Mateo Community College Di strict
Jefferson Union High School Di strict
South San Franci sco Unified School Di strict
Brisbane School Di strict
TOT AL OVERLAPPING TAX AND ASSESSMENT DEBT
Ratio to 2015-16 Assesse d Valuation:
Total Overlapping Tax and Assessment Debt ......... 1.30%
OVERLAPPING FUND DEBT :
San Mateo County General Fund Obligation s
San Mateo County Board of Education Certificate s of Participation
San Mateo County Flood Control Di strict Certificates of Participation
South San Franc isco Unified School District Certificates of Participation
Jefferson Union Hi gh School Di strict Certificates of Participation
City of South San Francisco Loans Payable
City of South San Franci sc o Capital Leases
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:
OVERLAPPING TAX INCREMENT DEBT (Successor Agency):
TOTAL DIRECT DEBT
Total Overlapping Debt
COMBINED TOTAL DEBT
$16 ,456 ,057 ,191
$16 ,456 ,057 ,191
Total Debt
6/30/2017
$611 ,812 ,998
180,406,091
175 ,812 ,3 64
5,820,437
$399 ,3 89 ,816
9,3 30,000
18 ,095,000
4,3 60,746
1,279,477
10 ,691,152
1,673 ,52 3
$560,000
(1) Percentage of overlapping agency's assessed valuation lo cated with in boundaries of the city .
% Applicable (1)
8 .577%
1.964
89.46 7
13 .858
8 .577%
8.577
60.402%
89.467
1.964
100.000
100
100.000%
City's Share of
Debt 6130/17
$52 ,475,201
3,543, 176
157 ,294,048
806,596
$2 14 ,119 ,021
$34 ,2 55 ,665
800 ,234
10 ,929 ,742
3,901 ,429
$25 ,129
10 ,691,152
1,673 ,522
$62,276,873
$560,000
12 ,364,674
$264,591,220
$276,955,895
(2) Excludes tax and revenue anticipation notes, enterprise revenu e, mortgage revenue, tax allocation bonds, and Successor Agency Debt.
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Total Direct Debt
Combined Total Debt
Ratios to Redevelopment Successor Agency Incremental Valuation ($4,099 ,895 ,614):
Total Overlapping Tax Increment Deb t
Source : California Municipal Statistics, Inc . and City of South San Francisco
510-658-2640 Austin Busch
160
1.30%
0.08%
1.68%
0.01%
(2)
NOTE: (a)
Fiscal
Year
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2017
ASSESSED VALUATION: $16,456,057,191
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) 617 ,102 ,145
LESS AMOUNT OF DEBT SUBJECT TO LIMIT: 0
LE GAL BONDED DEBT MARGIN $6 17, 102 , 145
Total net debt
Total Net Debt Legal applicable to the limit
Debt Applicable to Debt as a percentage
Limit Limit Margin of debt limit
$469,575,123 0 $469,575,123 0.00%
559 ,744 ,420 0 559,744,420 0 .00%
525 ,673,963 0 525 ,673,963 0.00%
511 ,748 ,388 0 511 ,748,388 0.00%
518,513 ,854 0 518 ,513,854 0.00%
524,729 ,886 0 524, 729 ,886 0.00%
536 ,413 ,229 0 536,413 ,229 0.00%
558,585 ,910 0 558,585 ,910 0.00%
580 ,561,386 0 580,561 ,386 0.00%
617 ,102 ,145 0 617,102,145 0.00%
California Government Code, Section 43605 sets the debt limit at 15 %. The Code section was enacted prior to the change in basing
assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit
to account for the adjustment of showing assessed valu ation at full cash value.
Source: HDL Coren & Cone, San Mateo County Assessor -Combined Tax Rolls
161
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST FIVE FISCAL YEARS
Fiscal Year
2013 2014 2015 2016 2017
Revenues
Service Charges $19,310,559 $19,129,475 $19,758,128 $19,515,093 $19,750,636
Connection and Other Fees 27,548 25,992 122,640 104,283 147,133
Interest Income 80,692 133,248 106,830 238,389 23,552
Developer Fees
Other Cities' Participation (1) 6,137,401 7,619,601 6,159,937 5,752,765 5,763,645
Total Revenues $25,556,200 $26,908,316 $26,147,535 $25,610,530 $25,684,966
Operating Expenses (2) $15,151,968 $14,904,225 $18,759,650 $13,514,718 $17,357,273
Wastewater System Net Revenues $10,404,232 $12,004,091 $7,387,885 $12,095,812 $8,327,693
Parity Debt Service (3)
State Water Resources Control Board Loans $6,012,716 $6,022,799 $5,445,162 $5,449,692 $5,454,747
CSCDA Series 2005D Revenue Bonds 206,405 197,630 188,148 178,036 167,284
Total Parity Debt $6,219,121 $6,220,429 $5,633,310 $5,627,728 $5,622,031
Total Parity Debt Service Coverage 1.67 1.93 1.31 2.15 1.48
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San
Bruno's share of operating costs. See "Wastewater System" herein.
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments
( 4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1,
2004 and an adopted increase in rates for Fiscal Year 2005-06 of9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22,
2005.
163
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
2016-17
Percentage
Number of of Total City
Employer Employees Rank Employment
Genentech Inc. 8,637 13.2%
Costco Wholesale (3 stores) 834 2 1.3%
Life Technologies Corporation 622 3 1.0%
Amgen San Francisco LLC 500 4 0.8%
Successfactors, Inc. 352 5 0.5%
ZS Associates, Inc. 252 6 0.4%
American ETC Inc/Royal Laundry 249 7 0.4%
SBM Site Services LLC 245 8 0.4%
Tobi.com, LLC 227 9 0.3%
Holiday Inn 224 10 0.3%
United Airlines
Kaiser
SSF School District
United Parcel Service
Amgen
Exelixis
Cell Genesys
Actuate
Subtotal 12,142 18.6%
Total City Population 65,451
Source:
SSF Business License Database-Business licenses expiring 12/31/17.
CAFR 2007-08
166
Number of
Employees
9,000
798
9,000
1,100
950
732
676
545
377
350
23,528
63,744
2007-08
Percentage
of Total City
Rank Employment
2 14.1%
5 1.3%
14.1%
3 1.7%
4 1.5%
6 1.1%
7 1.1%
8 0.9%
9 0.6%
10
36.9%
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Five Fiscal Years
2013 2014 2015
Function/Program
Public safety:
Fire :
Inspections conducted 2 ,369 2,574 1,817
Police :
Police calls for service 33,657 29 ,359 31,532
Law violations:
Part I crimes 1,874 1,780 1,874
Physical arrests (adult and juvenile) 2,081 2,158 1,933
Traffic violations 3,632 4 ,175 3,828
Parking violations 14,648 16 ,597 13 ,378
Public works
Street resurfacing (miles) (Eng Div) 3 22 (2) 0
Potholes repaired (square miles) 0 .13 0.20 0.11
Asphalt used for street repairs (tons) 287 435 250
Culture and recreation :
Recreation class participants 27,184 26 ,694 26 ,879
Library:
Total items borrowed 701,721 686 ,491 (1 ) 643 ,630
Items in collection 188 ,394 185 ,482 (1) 130, 106
Wastewater
Residential connections 16,466 16,482 16 ,470
Commercial connections 1,566 1,562 1,560
Other connections 127 128 128
Average daily sewage treatment (millions of gallons 9 .27 8.28 8.89
Note : NI A denotes information not available .
2016 2017
2 ,563 3 ,426
32,477 33 ,313
2 ,126 2 ,103
2 ,071 1,870
4 ,211 3 ,785
12 ,006 15,291
2 8
2 0
151 94
(3) 23,399 23 ,939
565,806 558,106
(4) 208 ,400 209 ,895
16 ,491 16 ,488
1,561 1,562
131 140
7.92 8.41
(1) Year 2015 decrease is due to clearing out of outdated and damaged items in the collection. Prior to Grand library's remodel ,
most of the outdated items are already cleaned out.
(2) Street resurfacing project estimated early next year (2016).
(3) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2011-2015 did not.
(4) New items added for Grand Library and electronic books are also included.
168
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Function/Program
Public safety:
Fire stati ODS 5 5 5 5 5 5 5 5 5 5
Police stations I 1 1 I (6) 1 (6) I 1 1 1 1
Police Fleet (I ) 45 (2) 48 (2) 48 52 51 5 1 (8) 50 53 53 52
Public works
Miles of streets 12 7 127 12 7 127 127 127 127 127 127 127
Street lights 3 ,779 3 ,779 4,156 4 ,160 4,160 (7) 4,505 4,505 4 ,505 4,505 4 ,505
Parking District lights 20 20 20 20 20 20 20 20 20 (9) 16
Traffic Signals 7 0 70 73 74 74 74 74 74 76 76
Culture and recreation:
Community services:
City parks 28 28 28 28 2 8 28 28 28 28 28
City parks acreage 190 190 19 0 190 190 190 190 190 190 190
Playgrounds 24 24 24 24 24 24 24 24 24 24
City trails 6 6 6 6 6 6 6 6 6 6
Community gardens 1 I I 1 I I I 1 I I
Community centers 4 4 4 4 4 4 4 4 4 4
Senior centers 2 2 2 (4) 1 I I I I I I
Skate Park (3) I I I 1 I I I I
Dog park (3) I I I I I I I I
Swimming pools I I I I I I 1 I 1 I
Tennis courts 7 7 7 7 7 7 7 7 7 7
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds 11 11 11 11 11 11 11 11 11 11
Soccer/football fields 5 5 5 5 5 5 5 5 5 5
Library:
City Libraries (6) 2 2 2 2 2 2 2 2 2 2
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164
Miles of storm sewers 125 125 125 125 125 125 125 125 125 125
Number of treatment plant~ 1 1 1 1 1 1 1 1 1 1
Source: ssf.net/depts/rcs ; Director of Rec & Comm Services ; Superintendent of parks & Maintenance
(1) Police patrol units consists of35 marked/unmarked cars , 6 motorcycles , 1 SWAT and 3 cushman.
(2) Year 2009, the 3 units added are not new. These are units that was not included on the previous Fleet count.
(3) Year 2010, Skate park and dog park was added on the list.
(4) The only senior center is Magnolia Center but programming still continues at El Camino.
(5) Community Leaming Center not included on count as it is only a homework center not a library.
(6) Police sub station located behind Miller parking garage not included .
(7) Includes all lights in SSF billed as LS-2 from PG&E
(8) One less motorcycle from last year.
169
CITY OF SOUTH SAN FRANCISCO
Miscellaneous Information
Last Three Fiscal Years
Collection and Use of 1 % Special Transient Occupancy Tax (TOT) Approved by Voters as
2015 2016 2017
Transient Occupancy Tax Detail
9% TOT collected 11,652,726 12 ,054,093 12 ,256,007
1 % Measure I Special Tax 1,294,747 1,339 ,344 1,361 ,779
Total TOT Co llection 12 ,947 ,474 13 ,393 ,436 13 ,617,786
1 % Measure I Special Tax Use
Police 258,949 267,869 272 ,356
Fire 258,949 267 ,869 272 ,356
Library 258,949 267 ,869 272 ,356
Parks 258 ,949 267 ,869 272 ,356
Recreation 258 ,949 267 ,869 272 ,356
Total 1 % Measure I Special Tax 1,294,747 1,339,344 1,361 ,779
*Note: Measure I, a one percent supplemental special tax to the already existing 9% general transient occupancy tax (TOT) was approved on Nov. 2,
2004 and took effect January 1, 2005. Special tax was earmarked for use to supplement Po lice, Fire, Library, and Parks and Recreation expenditures.
170
EX
H
I
B
I
T
B
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT
ACT ARTICLE III FUND
BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED
JUNE 30, 2017 AND 2016
EXHIBIT C
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Basic Financial Statements
For the Years Ended June 30, 2017 and 2016
Table of Contents
Independent Auditor's Report ......................................................................................................................... 1
Fund Financial Statements:
Comparative Balance Sheets .................................................................................................................... 3
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance ............................ 4
Notes to Financial Statements .................................................................................................................. 5
Independent Auditor's Report on Internal Control Over Financial Reporting,
on Compliance with the Transportation Development Act
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ............................................................... 7
This Page Left Intentionally Blank
INDEPENDENT AUDITOR'S REPORT
Honorable Members of the City Council of the
City of South San Francisco
South San Francisco, California
Report on Financial Statements
M MAZE
&A SS OCIATES
We have audited the accompanying financial statements of the City of South San Francisco Transportation
Development Act Article III Fund (TDA Fund), which are included in the Capital Projects Fund of the City
of South San Francisco (City), California, as of and for the years ended June 30, 2017 and 2016, and related
notes to the financial statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audits. We conducted
our audits in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States . Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the TDA Fund's preparation and
fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Fund's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Accou ntancy Corporation
347 8 Bu skirk Ave nu e, Suite 2 15
Pl easant Hill , CA 94523
T 925.930.0902
F 925.930 .01 35
E maze@maze assoc iates .com
w mazeassociates.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial positions of the TDA Fund as of June 30, 2017 and 2016, and the respective changes
in financial positions for the years then ended in conformity with accounting principles generally accepted
in the United States of America.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and do not purport to, and do
not present fairly the financial positions of the City as of June 30, 2017 and 2016 or the changes in its
financial positions for the years then ended in accordance with accounting principles generally accepted
in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 28,
2017 on our consideration of the TDA Fund's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the TDA Fund's internal control over
financial reporting and compliance.
m't ~vz-1. )1./!£40 c.-'lq.. 4{-ea
Pleasant Hill, California
November 28, 2017
2
ASSETS
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
COMPARATIVE BALANCE SHEETS
JUNE 30, 2017 AND 2016
2017
Allocation
Instruction
Number
16001070 2016
Due from Metropolitan Transportation Commission $39,669 $163,318
Total Assets $39,669 $163,318
LIABILITIES
Due to the City $39,669 $163,318
Total Liabilities 39,669 163,318
FUND BALANCE
Total Fund Balance and Liability $39,669 $163,318
See accompanying notes to financial statements
3
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
REVENUES
TDA Article 3.0 (Note 2)
Total Revenues
EXPENDITURES
Linden Ave. Complete Streets Safety Project
Oyster Point Bike Lanes Improvement
Total Expenditures
Net change in fund balance
Fund balance at beginning of year
Fund balance at end of year
2017
Allocation
Instruction
Number
16001070 2016
$39,699 $163,318
39,699 163,318
39,699
163,318
39,699 163,318
See accompanying notes to financial statements
4
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Notes to the Financial Statements
For the Years Ended June 30, 2017
I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of South San Francisco, California (City), Transportation Development Act Article III Fund
(TDA Fund) includes the financial activities associated with the State of California Transportation
Development Act. The State of California created a local transportation fund for each County
funded by a portion of the State sales tax.
The TDA Fund is distributed through the Metropolitan Transportation Commission (MTC) which is
the agency responsible for allocation of funds to eligible claimants within the greater San Francisco
Bay Area.
The TDA Fund is included in a Capital Projects Fund of the Comprehensive Annual Financial
Report of the City. The financial statements are intended to present the financial position and results
of operation for the TDA Fund, and not those of the City as a whole.
B. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized. The TDA Fund is
accounted for in a governmental fund type and the modified accrual basis of accounting is used.
Under the modified accrual basis, revenues are recognized when they become measurable and
availabie as net current assets. TDA Article 3.0 revenues are recognized when qualifying project
expenditures are incurred. Expenditures are generally recognized when they are incurred.
I NOTE 2 -TDA ARTICLE 3.0 REVENUE
As of the year ended June 30, 2017 and 2016 the City received allocation instructions from the
Metropolitan Transportation Commission for the following projects:
Revenue
Instruction N wnber Project Name Grant Award 2017 2016
16001070 Linden Ave Complete Streets Safety Project $400,000 $39,699
14001100 Oyster Point Blvd. Bike Lanes Improvement 182,100 $163,318
$39,699 $163,318
5
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Notes to the Financial Statements
For the Years Ended June 30, 2017
I NOTE 3 -COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs have been audited by the City's
independent accountants in accordance with the provisions of applicable State requirements. No cost
disallowances were proposed as a result of these audits; however, these programs are still subject to
further examination by the grantors and the amount, if any, of expenditures which may be disallowed
by the granting agencies cannot be determined at this time. The City expects such amounts to be
immaterial.
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney, there is no pending litigation which is likely to have a material adverse effect on the
financial position of the City.
6
MAZE
&ASSOCIATES
INDEPENDENT AUDITOR'S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING,
ON COMPLIANCE WITH THE TRANSPORTATION DEVELOPMENT ACT
AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Members of the City Council of
City of South San Francisco
South San Francisco, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the Transportation
Development Act Article III Fund (the TDA Fund) of the City of South San Francisco (City), California, as
of and for the year ended June 30, 2017, and the related notes to the financial statements, and have issued
our report thereon dated November 28, 2017
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the TDA Fund's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the TDA Fund's internal control. Accordingly, we
do not express an opinion on the effectiveness of the TDA Fund's internal control. ·
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the TDA Fund's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
7
T 925 .930.0902
F 925 .930.0135
E maze@mazeassociates.com
w mazeassociates.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. Our procedures included the applicable audit procedures
contained in §6666 of Title 21 of California Code of Regulations and tests of compliance with the
applicable provisions of the Transportation Development Act and the Allocation Instructions and
Resolutions of the Metropolitan Transportation Commission. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated November 28, 2017 which is an
integral part of our audit and should be read in conjunction with this report.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the TDA Fund's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the TDA Fund's internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of the Metropolitan Transportation Commission,
management, City Council, others within the City, and federal awarding agencies and pass-through entities
and is not intended to be and should not be used by anyone other than these specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
'lYl~e, i~o~
Pleasant Hill, California
November 28, 2017
8
EXHIBIT D
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-98 Agenda Date:2/14/2018
Version:1 Item #:11.
Report regarding an ordinance amending Chapter 20.410 of the South San Francisco Municipal Code to
prohibit cannabis microbusinesses and to permit commercial cannabis manufacturing,testing,distribution,and
delivery uses.(Rozalynne Thompson, Associate Planner)
RECOMMENDATION
Staff recommends that the City Council waive reading and adopt an ordinance making findings and
approving amendments to Title 20 (“Zoning”)of the South San Francisco Municipal Code,to prohibit
cannabis microbusinesses and to permit commercial cannabis manufacturing,testing,distribution,and
delivery uses.
DISCUSSION
On January 24, 2018, the City Council waived reading and introduced the following ordinance:
Ordinance amending Chapter 20.410 of the South San Francisco Municipal Code to prohibit
cannabis microbusinesses and to permit commercial cannabis manufacturing,testing,
distribution, and delivery uses.
(Introduced on 1/24/18; Vote 4 - 1)
CONCLUSION
The ordinance is ready for adoption.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:18-99 Agenda Date:2/14/2018
Version:1 Item #:11a.
Ordinance amending Chapter 20.410 of the South San Francisco Municipal Code to prohibit cannabis
microbusinesses and to permit commercial cannabis manufacturing, testing, distribution, and delivery uses.
WHEREAS,on October 9,2015,Governor Brown approved the Medical Marijuana and Regulation and Safety
Act (“MMRSA”),effective January 1,2016,which established a comprehensive state licensing and regulatory
framework for the cultivation,manufacturing,testing,distribution,transportation,dispensing,and delivery of
medical cannabis and which recognized the authority of local jurisdictions to prohibit or impose additional
restrictions on any such medical cannabis activities; and
WHEREAS,on June 27,2016,Governor Brown approved Senate Bill 837.which amended the MMRSA and
renamed it the Medical Cannabis Regulation and Safety Act (“MCRSA”); and
WHEREAS,on November 8,2016,the voters of the State of California (“State”)enacted Proposition 64,the
Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”); and
WHEREAS,on April 4,2017,Governor Brown released a budget trailer bill that aimed to reconcile the
existing medical marijuana statutory framework under MCRSA and the recreational statutory framework
adopted under the AUMA.After some revision,the State Senate and Assembly passed a modified version of the
original proposal in the form of AB 110/SB 94,known as the Medical and Adult-Use Cannabis Regulation and
Safety Act (“MAUCRSA”), and on June 27, 2017 and the Governor signed it into law; and
WHEREAS, MAUCRSA uses the term “cannabis” instead of “marijuana”; and
WHEREAS,subject to certain exceptions,MAUCRSA generally establishes a comprehensive system to
legalize,control,and regulate the cultivation,processing,manufacture,distribution,testing,and sale of
cannabis, including cannabis products, and to tax the commercial growth and retail sale of cannabis; and
WHEREAS,MAUCRSA permits a city to enact and enforce “reasonable regulations”to regulate the
possession,planting,cultivation,harvesting,drying,or processing of cannabis plants,including the complete
prohibition of such activities outdoors; and
WHEREAS,the MAUCRSA creates a licensing system whereby the State will issue licenses to businesses
authorizing them to cultivate,distribute,transport,store,manufacture,process,and sell cannabis and cannabis
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authorizing them to cultivate,distribute,transport,store,manufacture,process,and sell cannabis and cannabis
products, with such licenses to be issued by January 1, 2018; and
WHEREAS,the MAUCRSA mandates that State licensing authorities shall not approve an application for a
State license if approval of the State license will violate the provisions of any local ordinance or regulation
adopted in accordance with the requirements of MAUCRSA; and
WHEREAS,the MAUCRSA states that nothing in it shall be interpreted to supersede or limit the authority of a
local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under the MAUCRSA,
including completely prohibiting the establishment or operation of one or more types of businesses licensed
under MAUCRSA in the local jurisdiction; and
WHEREAS,on November 16,2017,California’s three State cannabis licensing authorities -the Department of
Food and Agriculture’s CalCannabis Cultivation licensing program,the Department of Consumer Affairs’
Bureau of Cannabis Control,and the Department of Public Health’s Manufactured Cannabis Safety Branch -
released draft emergency regulations that will allow the State to begin issuing temporary licenses for growers,
distributers, and sellers on January 1, 2018, when recreational sales become legal; and
WHEREAS,on December 13,2017,the City Council adopted Ordinance 17-1085 amending Chapter 20.410 of
the South San Francisco Municipal Code to prohibit the retail sale and outdoor cultivation of cannabis; and
WHEREAS, the City desires to prohibit cannabis microbusinesses within the boundaries of the city; and
WHEREAS,the City desires to permit commercial cannabis manufacturing,testing,distribution,and delivery
uses within the boundaries of the city,create a local application process for the issuance of Operator Permits for
those uses, and prohibit microbusinesses; and
WHEREAS,to permit and prohibit the above-described uses,the City prepared a Zoning Amendment
(“Amendment”)to the City’s zoning ordinance contained in Chapter 20 of the City’s Municipal Code (“Zoning
Ordinance”), which would amend Chapter 20.410 of the Zoning Ordinance; and
WHEREAS,the Zoning Ordinance was adopted after preparation,circulation,consideration,and adoption of
an Initial Study/Mitigated Negative Declaration (“IS/MND”)in accordance with the California Environmental
Quality Act,Public Resources Code Sections 21000,et seq.(“CEQA”),in which the IS/MND analyzed the
environmental impacts of adopting the Zoning Ordinance and concluded that adoption of the Zoning Ordinance
could not have a significant effect on the environment because none of the impacts required to be analyzed
under CEQA would exceed established thresholds of significance; and
WHEREAS,the refinements,clarifications,and/or corrections set forth in this Amendment,as they relate to
prohibiting cannabis microbusiness and permitting commercial cannabis manufacturing,testing,distribution,
and delivery uses are minor in nature,the adoption of which would not result in any new significant
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and delivery uses are minor in nature,the adoption of which would not result in any new significant
environmental effects or a substantial increase in the severity of any previously identified effects beyond those
disclosed and analyzed in the IS/MND prepared for the Zoning Ordinance Amendment,nor do the refinements,
clarifications,and/or corrections constitute a change in the project or change in circumstances that would
require additional environmental review; and
WHEREAS,pursuant to Business and Professions Code §26055(h),adoption of an ordinance,rule or
regulation by a local jurisdiction that requires discretionary review and approval of permits,licenses or other
authorizations to engage in commercial cannabis activity is not subject to CEQA provided that the ordinance is
adopted prior to July 1,2019 and any specific discretionary review or approval authorized by said ordinance
includes any applicable environmental review.As the Amendment requires each applicant for an Operator
Permit to obtain a conditional use permit which requires applicable environmental analysis and environmental
review, adoption of this ordinance is not subject to CEQA; and
WHEREAS,on December 21,2017 the Planning Commission for the City of South San Francisco held a
lawfully noticed public hearing to solicit public comment and consider the proposed Amendment,take public
testimony, and make a recommendation to the City Council on the Amendment.
NOW,THEREFORE,BE IT ORDAINED that based on the entirety of the record before it,as described below,
the City Council of the City of South San Francisco does hereby ORDAIN as follows:
SECTION 1.Findings
Based on the entirety of the record as described below,the City Council for the City of South San
Francisco hereby makes the following findings:
A.General Findings
1.The foregoing recitals are true and correct and made a part of this Ordinance.
2.The record for these proceedings,and upon which this Ordinance is based,includes without
limitation,federal and State law;the Medical and Adult-Use Cannabis Regulation and Safety Act
(“MAUCRSA”);the California Environmental Quality Act (Public Resources Code §§21000 et seq.
(“CEQA”))and the CEQA Guidelines (14 California Code of Regulations §§15000 et seq.);the South San
Francisco General Plan and General Plan Environmental Impact Report,including all amendments and updates
thereto;the South San Francisco Municipal Code;the Initial Study and Negative Declaration prepared for the
Zoning Ordinance Update,including all written comments received;all reports,minutes,and public testimony
submitted as part of the Planning Commission's duly noticed meetings on December 21,2017;all reports,
minutes,and public testimony submitted as part of the City Council's duly noticed meeting on January 24,
2018;and any other evidence (within the meaning of Public Resources Code section 21080,subdivision (e)and
section 21082.2).
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3.The refinements,clarifications,and/or corrections to the Zoning Ordinance as they relate to the
prohibition of cannabis microbusinesses and permitting of commercial cannabis manufacturing,testing,
distribution,and delivery uses are minor in nature.Therefore,the adoption of the ordinance would not result in
any new significant environmental effects or a substantial increase in the severity of any previously identified
effects beyond those disclosed and analyzed in the IS/ND prepared and circulated for the Zoning Ordinance
(2010),nor do the refinements,clarifications,and/or corrections constitute a change in the project or change in
circumstances that would require additional environmental review.
4.Pursuant to Business and Professions Code §26055(h),adoption of an ordinance,rule or
regulation by a local jurisdiction that requires discretionary review and approval of permits,licenses or other
authorizations to engage in commercial cannabis activity is not subject to CEQA provided that the ordinance is
adopted prior to July 1,2019 and any specific discretionary review or approval authorized by said ordinance
includes any applicable environmental review.As the Amendment requires each applicant for an Operator
Permit to obtain a conditional use permit which requires applicable environmental analysis and environmental
review, adoption of this ordinance is not subject to CEQA.
5.The documents and other material constituting the record for these proceedings are located at the
Planning Division for the City of South San Francisco,315 Maple Avenue,South San Francisco,CA 94080,
and in the custody of Chief Planner, Sailesh Mehra.
B.Zoning Amendment Findings
1.The proposed Zoning Amendment is consistent with the adopted General Plan because the
Zoning Amendment will reinforce the General Plan policies,and is consistent with the relevant specific plans.
The proposed amendments would clarify and strengthen the City’s current prohibition on cannabis related
activities which have been determined to have adverse impacts to the community and would permit commercial
cannabis activities that are consistent with the City’s economic and land use patterns.Adopting of this
ordinance would be consistent with the intent of the City’s existing regulations that would serve to protect the
public health,safety and welfare of the citizens of South San Francisco.The prohibition on cannabis
microbusinesses and the permitting of commercial cannabis manufacturing,testing,distribution,and delivery
uses will not conflict with or impede achievement of any of the goals,policies,or land use designations
established in the General Plan.
2.The proposed Zoning Amendment prohibiting cannabis microbusinesses are consistent with the
City’s current prohibitions on certain cannabis related activities,and would serve to clarify and strengthen these
existing provisions.In addition,the proposed Zoning Amendment permitting commercial cannabis
manufacturing,testing,distribution,and delivery uses are consistent with the existing manufacturing,testing,
warehousing and distribution uses currently operating in the City.The proposed Zoning Amendment includes
detailed regulations of cannabis related activities,which are necessary to protect the public health,safety and
welfare of the citizens of South San Francisco.The proposed Amendments ensure that subject properties for
commercial cannabis manufacturing,testing,distribution,and delivery uses are suitable for the uses permitted
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commercial cannabis manufacturing,testing,distribution,and delivery uses are suitable for the uses permitted
in the relevant zones in terms of access,size of parcel,relationship to similar or related uses,and other
considerations deemed relevant by the Planning Commission and City Council because the proposed
Amendments will impose specific distance,safety,and operational requirements that ensure that these new uses
will be compatible with existing and future uses in the City.
3.The proposed Amendments related to the prohibition of cannabis microbusinesses would not be
detrimental to the use of land in any adjacent zone because the Amendments prohibit the establishment of uses
that the Planning Commission and City Council deem incompatible with existing and future uses in the City.
Further,the prohibition on cannabis microbusinesses would prevent potentially detrimental health,safety and
quality of life issues that can be associated with such uses.In addition,the proposed Amendments permitting
commercial cannabis manufacturing,testing,distribution,and delivery uses will not be detrimental to the use of
land in adjacent zone because the Amendments impose specific distance,safety and operational requirements
that ensure that these uses will not have detrimental impacts on adjacent land uses.
SECTION 2.Amendments
The City Council hereby makes the findings contained in this Ordinance and amends the sections as set forth in
Exhibit A,attached hereto.Sections and subsections that are not amended by this Ordinance in Exhibit A shall
remain in full force and effect.
SECTION 3.Severability
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or
unconstitutional,the remainder of this Ordinance,including the application of such part or provision to other
persons or circumstances,shall not be affected thereby and shall continue in full force and effect.To this end,
provisions of this Ordinance are severable.The City Council of the City of South San Francisco hereby
declares that it would have passed each section,subsection,subdivision,paragraph,sentence,clause,or phrase
hereof irrespective of the fact that any one or more sections,subsections,subdivisions,paragraphs,sentences,
clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 4.Publication and Effective Date
Pursuant to the provisions of Government Code section 36933,a summary of this Ordinance shall be prepared
by the City Attorney.At least five (5)days prior to the Council meeting at which this Ordinance is scheduled to
be adopted,the City Clerk shall (1)publish the Summary,and (2)post in the City Clerk’s Office a certified
copy of this Ordinance.Within fifteen (15)days after the adoption of this Ordinance,the City Clerk shall (1)
publish the summary,and (2)post in the City Clerk’s Office a certified copy of the full text of this Ordinance
along with the names of those City Council members voting for and against this Ordinance or otherwise voting.
This Ordinance shall become effective thirty (30) days from and after its adoption.
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*****
Introduced at a regular meeting of the City Council of the City of South San Francisco held the 24th day of
January, 2018.
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1. Revise Section 20.410.001 as follows:
SECTION 20.410.001 Purpose and Intent
It is the purpose and intent of this Chapter to permit and regulate commercial cannabis
manufacturing, testing, distribution, and delivery uses and to preclude the outdoor cultivation of
cannabis, preclude the indoor and mixed-light commercial cultivation of cannabis, and to
preclude the opening, establishment, and/or operation of microbusinesses and storefront cannabis
retail establishments, including medical cannabis cooperatives and collectives, in the City.
Nothing in this Chapter is intended to authorize the cultivation, possession, or use of cannabis in
violation of state or federal law. This Chapter acknowledges that the cultivation of cannabis is
illegal under federal law while granting limited immunity from local prosecution to those
medical and nonmedical cannabis activities that do not violate the restrictions and limitations set
forth in this section or California law.
2. Revise Section 20.410.002 as follows:
SECTION 20.410.002 Definitions
The words and phrases included in this Section shall have the following meanings, unless it is
clearly apparent from the context that another meaning is intended:
“Cannabis retail establishment” or “storefront cannabis retail establishment” means a dispensary,
operator, individual, establishment, provider, association or similar entity that operates out of a
fixed location that it is open to the public and offers, dispenses, sells, exchanges, makes
available, either individually or in any combination, cannabis or cannabis products to customers,
patients, or primary caregivers pursuant to State law. For the purposes of this Chapter, cannabis
retail establishment and storefront cannabis retail establishment do not include delivery-only
operations as defined by this Chapter.
“Cannabis operator permit” or “operator permit,” means a permit issued by the City pursuant to
this Chapter for the operation of a commercial cannabis business allowed by this Chapter within
the City.
“Closed-loop system” means a method of extracting cannabinoids and tetrahydrocannabinol
(“THC”) from cannabis plant material in a sealed environment. The method involves the use of
specific equipment, including tanks with attached tubes, recovery tanks, refrigerant scales and
pumps, and recovery pumps in order to create more efficient extraction and confine flammable
solvents to a closed environment and decrease the risk of explosion.
“Commercial cannabis uses” means any commercial cannabis activity licensed pursuant to the
Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), including but
not limited to, cultivation, possession, distribution, laboratory testing, labeling, retail, delivery,
1
sale or manufacturing of cannabis or cannabis products. Commercial cannabis uses also means
any cannabis activity licensed pursuant to additional State laws regulating such businesses.
Commercial cannabis uses shall not include cannabis activities carried out exclusively for one’s
personal use that does not involve commercial activity or sales.
“Delivery-only” means a commercial cannabis use that involves the transfer of cannabis or
cannabis products from a fixed location that is not open to the public to a customer at a fixed
address specified by the customer pursuant to the applicable state cannabis license.
“Delivery vehicle” means a manned vehicle meeting all requirements in State laws and
regulations used in the commercial transfer of cannabis or cannabis products from a fixed
location to a fixed address specified by a customer.
“Distribution” means the procurement, sale, and transport of cannabis and cannabis products
between state cannabis licensees.
“Indoor commercial cultivation” means cultivation within a fully enclosed structure, including
greenhouses and similar structures used for mixed light cultivation licensed pursuant to State
law, for commercial cannabis uses. For the purposes of this Chapter, indoor commercial
cultivation does not include cultivation that is legally conducted pursuant to federally-regulated
scientific research.
“Manufacturing” means producing, preparing, propagating, blending, or compounding cannabis
or cannabis products either directly or indirectly or by extraction methods, infusion methods, or
independently by means of chemical synthesis, or by a combination of extraction and chemical
synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels
or re-labels its container, or otherwise making or preparing cannabis products.
“Microbusiness” means a commercial cannabis establishment engaged in the cultivation of
cannabis on an area less than 10,000 square feet and possesses multiple permits to act as a
licensed distributor, manufacturer that uses nonvolatile solvents or no solvents, and/or retailer
under Division 10 of the California Business and Professions Code.
“Nonvolatile solvents” means a solvent that is not or does not produce a flammable gas or vapor
that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
“Operator” means a natural person or entity responsible for the direction, control, management,
operation of any State-licensed and locally-permitted commercial cannabis use.
“Owner” means each person or entity having an ownership interest in or a financial interest in, a
commercial cannabis business.
2
“Pre-clearance” or “pre-cleared” means the process by which an applicant for a cannabis
operator permit is authorized to seek a conditional use from the Planning Commission. If staff
determines that an applicant meets the minimum qualifications and the operator permit
application complies with all of the requirements outlined in this Chapter, said operator permit
application will be granted pre-clearance and the applicant will be authorized to seek a
conditional use permit from the Planning Commission. Valid operator permits will only be
issued after an applicant successfully obtains a conditional use permit from the Planning
Commission.
“Testing” means performing scientific analysis of cannabis or cannabis products to determine its
chemical profile, the presence of contaminants, or other similar scientific or compositional
information as a commercial enterprise.
“Volatile solvent” means volatile organic compounds, including but not limited to: (1) explosive
gases, such as Butane, Propane, Xylene, Styrene, Gasoline, Kerosene, 02 or H2; and (2)
dangerous poisons, toxins, or carcinogens, such as Methanol, Methylene Chloride, Acetone,
Benzene, Toluene, and Tri-chloro-ethylene as determined by the Fire Marshal.
4. Revise Section 20.410.003 as follows:
SECTION 20.410.003 Cannabis Retail Establishments and Microbusinesses
Prohibited
A. Storefront Prohibited. A storefront cannabis retail establishment is not a permitted
use and is prohibited in all zones throughout the City. No permit or any other applicable license
or entitlement for use, nor any business license, shall be approved or issued for the
establishment, maintenance or operation of a storefront cannabis retail establishment within the
City. This prohibition shall not apply to a delivery-only retail cannabis operation operating
under an issued state cannabis license for retailers.
B. Microbusiness Prohibited. A microbusiness is not a permitted use and is
prohibited in all zones throughout the City. No permit or any other applicable license or
entitlement for use, nor any business license, shall be approved or issued for the establishment,
maintenance or operation of a cannabis microbusiness within the City.
C. Public Nuisance. The establishment, maintenance or operation of a storefront
cannabis retail establishment or a microbusiness within the City is declared to be a public
nuisance and may be abated by the City either pursuant to the South San Francisco Municipal
Code or any other available legal remedies, including, but not limited to, declaratory relief and
civil injunctions.
3
5. Repeal Section 20.410.005 as follows, in its entirety, and replace with the following
language:
SECTION 20.410.005 Commercial Cannabis Manufacturing
Commercial Cannabis Manufacturing is permitted in the City subject to the following
requirements:
A. Zones Where Permitted. Commercial cannabis manufacturing activity shall not be
permitted anywhere in the City except east of Highway 101 in the following zoning
districts: Business Professional (BPO) and Mixed Industrial (MI).
B. Conditional Use Permit Required. Commercial cannabis manufacturing activity is only
permitted in the zoning districts specified above with a conditional use permit approved
by the Planning Commission.
C. Distance Requirements. Commercial cannabis manufacturing sites must be located in the
zoning districts listed in section (A). Commercial cannabis manufacturing must also be
located a minimum of 600 feet from residential uses, schools, day care centers and youth
centers. The terms “school”, “day care center” and “youth center” shall have the same
meaning as in State laws related to cannabis.
D. Operational Requirements.
1. Operator Permits. All cannabis manufacturing operations must obtain and
maintain a valid operator permit issued by the City pursuant to Section
20.410.009 prior to commencing any commercial cannabis activity for which a
state cannabis license is required.
2. Compliance with Law. All cannabis manufacturing activities must be conducted
in accordance with all applicable State laws and regulations, as may be amended
from time to time, and all applicable local laws and regulations.
3. Visibility. All cannabis, cannabis products, and any aspect of the manufacturing
of cannabis that indicates the type of product(s) being manufactured inside shall
not be visible from the public right-of-way, exterior of the structure, and/or
vehicle(s) where those commercial cannabis activities take place.
4. Odor Control. Operators must install and maintain, in good working-order, air
treatment or other ventilation systems to prevent odors generated from the
manufacture of cannabis and cannabis products from being detected within ten
(10) feet of the structure in which commercial cannabis activity occurs.
5. Volatile Solvent Extraction. If a manufacturing process utilizes volatile solvents,
then it is only permitted if it is conducted exclusively within a closed-loop system
that meets all of the following requirements:
4
a) The system uses only solvents that are recognized as safe pursuant to the
federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).
b) The system is designed to recapture and contain solvents during the
manufacturing process, and otherwise prevent the off-gassing of solvents
into the ambient atmosphere to mitigate the risks of ignition and explosion
during the manufacturing process.
c) A licensed engineer certifies that the system was commercially
manufactured, safe for its intended use, and built to codes of recognized
and accepted good engineering practices, including, but not limited to, the
American Society of Mechanical Engineers (ASME), the American
National Standards Institute (ANSI), Underwriters Laboratories (UL), the
American Society for Testing and Materials (ASTM), or OSHA
Nationally Recognized Testing Laboratories (NRTLs).
d) The system has a certification document that contains the signature and
stamp of a professional engineer and the serial number of the extraction
unit being certified and such document is provided to the City.
6. Quality Control Personnel. All commercial cannabis manufacturing sites must
employ at least one (1) full time quality assurance compliance monitor who shall
not hold a commercial cannabis license or have an ownership interest in a
commercial cannabis licensee or the premises of a commercial cannabis licensee.
7. Standard Operating Procedures. All commercial cannabis manufacturing sites
must establish standard operating procedures and batch records that comply with
current best manufacturing practices and applicable State laws and regulations.
8. Labeling. All finished cannabis products must be labeled in compliance with
applicable State laws and regulations.
9. Child-Resistant Packaging. All cannabis products must be packaged in child-
resistant containers prior to leaving the commercial manufacturing site in
compliance with applicable State law and regulations.
10. Security Plan Requirements for Cannabis Manufacturing Sites. All commercial
cannabis manufacturing sites must implement and maintain a security plan and
surveillance system that complies with the requirements outlined in Section
20.410.010 herein.
11. Fire Safety Plan Requirements. All commercial cannabis manufacturing sites
must comply with the provisions of a fire safety plan ensuring compliance with all
applicable Fire Code and Building Code requirements prepared by a third-party
engineer and approved by the City.
12. Liquid or Solid Wastes. Operators shall not discharge liquids and solids of any
kind, whether directly or indirectly, into a public or private body of water, sewage
5
system, watercourse, or into the ground, except in compliance with applicable
regulations of the California Regional Water Quality Control Board.
E. Operating Agreement. The City shall require commercial cannabis manufacturing
operations to enter into an operating agreement with the City, pursuant to Section
20.410.009 herein.
6. Add the following Section 20.410.006, in its entirety:
SECTION 20.410.006 Cannabis Testing Operations
Commercial Cannabis Testing is permitted in the City subject to the following
requirements:
A. Zones Where Permitted. Commercial cannabis testing activity shall not be permitted
anywhere in the City except east of Highway 101 in the following zoning districts:
Business Commercial (BC), Business Professional Office (BPO), Business Technology
Park (BTP), Bay West Cove Specific Plan District (BWCSPD), Gateway Specific Plan
(GSPD), Mixed Industrial (MI), and Oyster Point Specific Plan District (OPSD)
B. Conditional Use Permit Required. Commercial cannabis testing activity is only permitted
in the zoning districts specified above with a conditional use permit approved by the
Planning Commission.
C. Distance Requirements. Commercial cannabis testing sites must located in the zoning
districts listed in section (A). Commercial cannabis testing sites must be located a
minimum of 600 feet from residential uses, schools, day care and youth centers.
D. Operational Requirements.
1. Operator Permits. All cannabis testing operations must obtain and maintain a
valid operator permit issued by the City pursuant to Section 20.410.009.
2. Compliance with Law. All cannabis testing activities must be conducted in
accordance with all applicable State laws and regulations, as may be amended
from time to time, and all applicable local laws and regulations.
3. Visibility. All cannabis, cannabis products, and any aspect of the testing of
cannabis that indicates the type of product(s) being tested inside shall not be
visible from the public right-of-way, exterior of the structure, and/or vehicle(s)
where those commercial cannabis activities take place.
4. Odor Control. Operators must install and maintain, in good working-order, air
treatment or other ventilation systems to prevent odors generated from the testing
of cannabis and cannabis products from being detected within ten (10) feet of the
structure in which commercial cannabis activity occurs.
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5. Quality Control Personnel. All commercial cannabis testing sites must employ at
least one (1) full time quality assurance compliance monitor who shall not hold a
commercial cannabis license or have an ownership interest in a commercial
cannabis licensee or the premises of a commercial cannabis licensee.
6. Testing Procedures. All testing activities must be conducted in accordance with
industry-best practices and applicable State laws and regulations.
7. Testing Devices. All testing devices used at a testing site must be UL listed, or its
equivalent, or be otherwise approved for its intended use by the City’s Building
Official, Fire Department or other person as designated by the Chief Planner.
8. Accreditation Notification. All testing sites must maintain proper accreditation
where applicable and must notify the Chief Planner, or designee, and the State
Department of Public Health within one business day after the receipt of notice
that the facility’s accreditation has been denied, suspended, or revoked.
9. Security Plan/Surveillance System. All commercial testing sites must implement
and maintain a security plan and surveillance system that complies with the
requirements outlined in Section 20.410.010 herein.
10. Fire and Safety Plan Requirements. All commercial testing sites must comply
with the provisions of a fire safety plan ensuring compliance with all applicable
Fire Code and Building Code requirements prepared by a third-party engineer and
approved by the City.
11. Liquid or Solid Wastes. Operators shall not discharge liquids and solids of any
kind, whether directly or indirectly, into a public or private body of water, sewage
system, watercourse, or into the ground, except in compliance with applicable
regulations of the California Regional Water Quality Control Board.
E. Operating Agreement. The City shall require commercial cannabis testing operations to
enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
7. Add the following Section 20.410.007, in its entirety:
SECTION 20.410.007. Cannabis Distribution Operations
Cannabis Distribution Operations are permitted in the City subject to the following
requirements:
A. Zones Where Permitted.
1. Distribution Permitted. Cannabis distribution operations are permitted to
distribute to other properly licensed and permitted commercial cannabis
7
operations throughout the City and to other jurisdictions where such activities are
permitted.
2. Distribution Facility. Fixed locations for distribution facilities are prohibited
everywhere in the City except east of Highway 101 in the following zoning
districts: Business and Professional Office (BPO), and Mixed Industrial (MI)
B. Conditional Use Permit Required. Distribution facilities are only permitted in the zoning
districts specified above with a conditional use permit approved by Planning
Commission.
C. Distance Requirements. Cannabis Distribution operation sites must be located a
minimum of 600 feet from residential uses, schools, day care and youth centers.
D. Operational Standards.
1. Scope of Permitted Service.
a) Types of Services. Operators may provide storage-only services, storage
and distribution services, and/or distribution-only services.
b) Types of Customers. Operators may only provide the services outlined in
subsection (a) above to properly licensed and permitted cultivators,
manufacturers, testers, retailers, or other distributors.
2. Operator Permits. All cannabis distribution operations must obtain and maintain a
valid operator permit issued by the City pursuant to Section 20.410.009.
3. Compliance with Law. All cannabis distribution activities must be conducted in
accordance with all applicable State laws and regulations, as may be amended
from time to time, and all applicable local laws and regulations.
4. Visibility. All cannabis, cannabis products, and any aspect of the distribution of
cannabis that indicates the type of product(s) being distributed shall not be visible
from the public right-of-way, exterior of the structure, and/or vehicle(s) where
those commercial cannabis activities take place.
5. In-Transit Requirements.
a) Distribution vehicles may only travel between the distribution facility
location and the drop-off destinations while transporting cannabis and/or
cannabis products.
b) Only Operators and/or employees of Operators may be present in the
distribution vehicles while transporting cannabis or cannabis products.
c) All drivers shall carry valid identification and proof of employment at a
permitted distribution facility.
8
d) All drivers shall carry an inventory log of cannabis and cannabis products
being transported with the name and address of the ultimate destination for
each unit of cannabis inventory.
6. Vehicle Registration with City Police Department. All distribution vehicles must
be registered with the City Police Department.
7. Fire safety plan. All commercial distribution facility sites must comply with the
provisions of a fire safety plan ensuring compliance with all applicable Fire Code
and Building Code requirements prepared by a third-party engineer and approved
by the City.
8. Recordkeeping requirements. Operators shall keep and maintain the following
records:
a) All distribution vehicle maintenance records.
b) All distribution vehicle ownership records.
c) All shipping manifests for completed and in-transit deliveries.
d) A contemporaneous inventory log.
e) Distribution log including location, time and driver.
f) Quality-assurance details for all cannabis and cannabis products stored
and/or delivered by Operator.
g) A log of any destruction or loss of any cannabis and/or cannabis products.
h) These records may be inspected by any officer of the City as permitted by
law. Whenever possible, the inspection shall be conducted at a time and in
a manner that minimizes any interference with the operation of the
business.
i) These records are not maintained nor kept by the City. To the extent that
any of these records come into the custody of the City, they shall be
exempt from public disclosure in accordance with applicable law.
9. Security Plan/surveillance system requirements.
a) Security at Distribution Facility. All commercial distribution facility sites
must implement and maintain a security plan and surveillance system that
complies with the requirements outlined in Section 20.410.010 herein.
b) Security in Distribution Vehicles. All commercial distribution vehicles
must comply with the following security requirements:
i. All cannabis and cannabis products shall be stored in a lockbox
that is permanently secured to the vehicle during transport.
ii. All distribution vehicles shall include video and audio monitoring
equipment that retains recordings for (30) days, has date and time
stamped recordings, and video overlays that indicate which vehicle
the recording is from.
iii. All distribution vehicles shall include cellular technology-based
panic buttons or other emergency alert devices.
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iv. All distribution vehicles shall be tracked by GPS locators that are
monitored at the fixed distribution facility and retain logs of GPS
locations for (1) year.
v. All distribution vehicles must be plainly marked and not include
any overt or obvious indications of the products being distributed.
E. Operating Agreement. The City shall require commercial cannabis distribution operations
to enter into an operating agreement with the City, pursuant to Section 20.410.009 herein.
8. Add the following Section 20.410.008, in its entirety:
SECTION 20.410.008. Delivery-Only Operations
Delivery-Only Operations are permitted in the City subject to the following requirements:
A. Zones Where Permitted.
1. Delivery Permitted. Commercial delivery of cannabis to a fixed address
within City limits is permitted throughout the City except at the following
locations: schools, day care centers, youth centers, public parks and open
space, public buildings, eating or drinking establishments. All deliveries must
be to a fixed address.
2. Fixed Delivery-Only Business Locations Permitted. Fixed locations for
delivery-only cannabis businesses are prohibited everywhere in the City
except east of Highway 101 in the following zoning districts: Business
Commercial (BC), Business Technology Park (BTP), and Mixed Industrial
(MI)
B. Conditional Use Permit Required. Fixed locations for delivery-only cannabis
businesses are only permitted in the zoning districts specified above with a
conditional use permit approved by Planning Commission.
C. Distance Requirements. Fixed delivery-only cannabis businesses shall be sited a
minimum of 600 feet from residential uses, schools, day care centers and youth
centers.
D. Operational Standards.
1. Operator Permits. All delivery-only cannabis operations must obtain and
maintain a valid operator permit issued by the City pursuant to Section
20.410.009.
2. Compliance with Law. All delivery-only cannabis activities must be
conducted in accordance with all applicable State laws and regulations, as
10
may be amended from time to time, and all applicable local laws and
regulations.
3. Visibility. All cannabis, cannabis products, and any aspect of the delivery of
cannabis that indicates the type of product(s) being delivered shall not be
visible from the public right-of-way, exterior of a structure, and/or vehicle(s)
where those commercial cannabis activities take place.
4. All fixed locations for delivery-only operations must comply with the
provisions of a fire safety plan ensuring compliance with all applicable Fire
Code and Building Code requirements prepared by a third-party engineer and
approved by the City.
5. Security in Vehicle.
a) All cannabis and cannabis products shall be stored in a lockbox that
is permanently secured to the vehicle during transport .
b) All delivery vehicles shall include video and audio monitoring
equipment that retains recordings for (30) days, has date and time
stamped recordings, and video overlays that indicate which vehicle the
recording is from.
c) All delivery vehicles shall include cellular technology-based panic
buttons or other emergency alert devices.
d) All delivery vehicles shall be tracked by GPS locators that are
monitored at the fixed delivery-only cannabis business location and
retain logs of GPS locations for (1) year.
e) All delivery vehicles must be plainly marked and not include any overt
or obvious indications of the products being distributed.
6. Security at Delivery-Only Business Locations. All delivery-only business
location sites must implement and maintain a security plan and surveillance
system that complies with the requirements outlined in Section 20.410.010
herein.
7. In-Transit Requirements
a) Delivery vehicles may only travel between the delivery business
locations and drop-off destinations while transporting cannabis and/or
cannabis products.
b) Deliveries are only permitted during the hours specified under State
law and/or regulations.
c) Only Operators and/or employees of Operators may be present in the
delivery vehicle while transporting cannabis or cannabis products.
d) All drivers shall carry valid identification and proof of employment at
a permitted delivery facility.
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e) All drivers shall carry an inventory log of cannabis and cannabis
products being transported.
8. Vehicle Registration with City Police Department. All delivery vehicles must
be registered with the City Police Department.
9. Recordkeeping Requirements. Operators shall keep the following records:
a) All delivery vehicle maintenance records.
b) All delivery vehicle ownership records.
c) All shipping manifests for completed and in-transit deliveries.
d) A contemporaneous inventory log.
e) Delivery log including location, time and delivery driver.
f) Quality-assurance details for all cannabis and cannabis products stored
and/or delivered by Operator destruction or loss of any cannabis and/or
cannabis products.
E. Operating Agreement. The City shall require delivery-only operations to enter into
an operating agreement with the City, pursuant to Section 20.410.009 herein.
9. Add the following Section 20.410.009, in its entirety:
SECTION 20.410.009. Operator Permit Requirements
A. Operator Permit Required. No person shall engage in commercial cannabis
activity or operate a commercial cannabis business pursuant to this Section without possessing a
valid operator permit from the City and without possessing all other approvals or licenses that
may be required pursuant to State law and regulations.
1. Additional permits or entitlements may be required depending on construction
or improvements necessary for a building or site.
2. Regardless of the number of sites zoned for commercial cannabis operations in
the City, the total number of commercial cannabis operator permits granted for
each State license type may be established or limited by City Council
Resolution.
3. The City may refuse to issue any discretionary or ministerial permit, license,
variance or other entitlement, which is sought pursuant to this Section,
including zoning clearance for a building permit, where the property upon
which the use or structure is proposed is in violation of the South San Francisco
Municipal Code, or any other local, State or federal law.
4. No property interest, vested right, or entitlement to receive a future permit to
operate a commercial cannabis use shall ever inure to the benefit of such
operator permit holder, as such permits are revocable. Operator permits issued
12
pursuant to this Section are specific to the operator, do not run with the land
and are not transferable.
B. Permit Types. Prior to engaging in any commercial cannabis business,
individuals must obtain an operator permit from the City corresponding to the category of
activity or enterprise. The following permit types are available in the City:
1. Commercial Cannabis Manufacturing
2. Commercial Testing Permit
3. Commercial Cannabis Distribution Permit
4. Commercial Cannabis Delivery-Only Permit
C. Operator/Permit Holder Qualifications. All operator permit holders must meet
the following minimum qualifications. The City reserves the right to require additional
qualifications through the operator permit application procedures.
1. Operator permit holders and all employees and agents of said commercial
cannabis business must be twenty-one (21) years of age or older.
2. Operator permit holders and all employees and agents of said commercial
cannabis business shall be subject to a background search by the California
Department of Justice and local law enforcement.
3. Operator permits for commercial cannabis uses shall not be issued to any
operators who have been convicted of a violent felony or any operators that
have employees or agents that have been convicted of a violent felony, In
addition, permits for commercial cannabis uses shall not be issued to operators
(or operators that have employees or agents) who have been convicted of
crimes (whether felony or misdemeanor) that involve crimes of moral
turpitude.
4. Operator permit holders must meet the minimum qualifications established by
this Chapter and by the State for the applicable State license type.
D. Operator Permit Application. Applicants must submit applications to the
Finance Director. Any confidential information submitted by applicants pursuant to this Section
shall be marked as such. Confidential information submitted to the City may be withheld from
public disclosure in accordance with applicable law. Applications shall include, at a minimum,
the following:
1. Business Operators’ Information. All necessary information related to the
business operator, including names, birth dates, addresses, social security
numbers, relevant criminal history, relevant work history, names of businesses
owned or operated by the applicant within the last ten (10) years, investor
13
and/or partner information, and Assessor Parcel Number (APN) number of the
parcel upon which the business will be located. Such private information will
be exempt from disclosure to the public, pursuant to applicable law, to protect
an individual’s privacy interests and public health and safety.
2. Payment of Application Fee. Applicants shall submit the application fee
amount with their applications.
3. Property Owner Permission. Written (and notarized) permission from the
property owner and/or landlord to operate a commercial cannabis use on the
site.
4. Completed Business License Application. Each applicant shall submit proof
that either the City has issued the applicant a business license or proof that the
applicant has submitted a City business license application.
5. Volatile Solvent Closed-Loop System. If applicant is proposing a Cannabis
Manufacturing operation utilizing volatile extraction, then plans for a closed-
loop system certified and stamped by a professional engineer must be
submitted.
6. Employee Roster. Each application shall submit an employee roster with the
names and birth dates of each proposed employee of the operation with a
signed authorization from each such employee authorizing the City to conduct
a background check.
7. Operating Plan. Each application shall submit a detailed operating plan
identifying the features of the proposed business.
8. Security Plan as required under Section 20.410.010.
9. Site Plans. Each application shall submit a detailed site plan identifying the
layout and configuration of the proposed operation, as well as any proposed
improvements to the site.
10. Proof of Notice. Applicants must provide notice to properties and property
owners within three hundred (300) feet of the boundaries of the property upon
which the commercial cannabis business is proposed at least fifteen (15) days
prior to submission of an application for a permit and must include proof of
such notice with the operator permit application.
11. Air Quality. The applicant shall provide a calculation of the businesses
anticipated emissions of air pollutants. The applicant shall also provide
assurance that the business will comply with all rules identified by the Bay
Area Quality Management District. No operator permit shall be issued to any
business that would exceed the thresholds of significance established by the
14
Bay Area Quality Management District for evaluating air quality impacts under
the California Environmental Quality Act for either operation or construction.
Applicants are encouraged to design their project so as to minimize or avoid air
pollutant emissions.
12. Greenhouse Gas Emissions. The applicant shall provide calculations of the
anticipated greenhouse gas emissions for the operation of the business. The
applicant shall further demonstrate compliance with any applicable State,
regional, or local plan for the reduction of greenhouse gas emissions. No
operator permit shall be granted for any business that would violate any State,
regional, or local plan for the reduction of greenhouse gases, nor shall any
cannabis permit be issued where the construction and/or operation of the
business would exceed any applicable threshold of significance for greenhouse
gas emissions under the California Environmental Quality Act.
13. Hazardous Materials. To the extent that the applicant intends to use any
hazardous materials in its operations, the applicant shall provide a hazardous
materials management plan that complies with all federal, State, and local
requirements for management of such substances. “Hazardous materials”
includes any hazardous substance regulated by any federal, State, or local laws
or regulations intended to protect human health or the environment from
exposure to such substances.
14. Water Supply. The applicant shall demonstrate to the satisfaction of the City
Engineer that sufficient water supply exists for the use. To the extent any
proposed use intends on relying on groundwater supplies, the applicant shall
demonstrate to the satisfaction of the City Engineer that the use will not result
in net groundwater depletion.
15. Wastewater. The applicant shall demonstrate to the satisfaction of the City
Engineer that sufficient wastewater capacity exists for the proposed use. To the
extent the proposed use will result in agricultural or industrial discharges to the
City’s wastewater system, the applicant shall provide a plan for meeting all
federal, State, and local requirements for such discharges. A Waste Water
Management Plan shall be submitted identifying the amount of wastewater,
excess irrigation and domestic wastewater anticipated, pre-treatment method
(when applicable), as well as disposal method.
16. Signed Affidavit. The property owner and applicant, if other than the property
owner, shall sign the application and shall include affidavits agreeing to abide
by and conform to the conditions of the permit and all provisions of the South
San Francisco Municipal Code pertaining to the establishment and operation of
the commercial cannabis use, including, but not limited to, the provisions of
this section. The affidavit(s) shall acknowledge that the approval of the
operator permit shall, in no way, permit any activity contrary to the South San
15
Francisco Municipal Code, or any activity which is in violation of any
applicable laws.
17. Signed indemnity provision. To the fullest extent permitted by law, any actions
taken by a public officer or employee under the provisions of this Section
20.410 shall not become a personal liability of any public officer or employee
of the City. To the maximum extent permitted by law, Operators shall defend
(with counsel acceptable to the City), indemnify and hold harmless the City of
South San Francisco, the South San Francisco City Council, and its respective
officials, officers, employees, representatives, agents and volunteers (hereafter
collectively called “City”) from any liability, damages, costs, actions, claims,
demands, litigation, loss (direct or indirect), causes of action, proceedings,
prosecutions for violations of State or federal law, or judgments (including
legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or
staff time, expenses or costs) (collectively called “action”) caused, in whole or
in part, by Operator’s operation of a commercial cannabis business in the City
or associated with any action against the City to attack, set aside, void or annul,
any cannabis-related approvals and/or determinations. The City may elect, in its
sole discretion, to participate in the defense of said action, and the Operator
shall reimburse the City for its reasonable legal costs and attorneys’ fees.
Operators shall be required to agree to the above obligations in writing and
submit said writing as part of the operator permit application.
E. Permit Issuance, Validity, Rejection of Application, Revocation, Suspension,
Renewal and Transfer
1. Cannabis Operator Permit Issuance. Cannabis operator permits shall require
approval of Finance Director or designee. Permit applicants must meet all
operator and application requirements to be considered for permit issuance.
a) Cannabis operator permits shall be valid for one (1) year from the date
of issuance.
b) The City shall not issue any cannabis operator permit until the
necessary State license(s) is obtained.
c) No cannabis operator permit holder may be issued until the applicant
obtains a conditional use permit from the Planning Commission.
d) No cannabis operator permit shall be issued until the operator has paid
all required fees and applicable local and state taxes. Cannabis operator
permit fees shall be set by Resolution of the City Council.
2. Operator Permit Issuance Procedure. The Finance Director, or his or her
designee, may design application forms and procedures specific to each
16
permitted license type and require inspections of proposed facilities before
issuing a permit under this Chapter.
a) Applications shall be reviewed by City staff, as designated by the
Finance Director for completeness, sufficiency, and consistency with
minimum qualifications. Applicants failing to meet minimum
qualifications or application requirements will not be permitted to seek
a conditional use permit from the Planning Commission.
b) Relevant City staff will engage in an inspection of the site and all
delivery vehicles to ensure compliance with the requirements of this
Chapter.
c) If staff determines that an applicant meets the minimum qualifications
and the application complies with all of the requirements outlined in
Subsection D above and other applicable provisions of this Chapter,
said operator permit application will be granted pre-clearance and the
applicant will be authorized to seek a conditional use permit from the
Planning Commission. The applicant must seek a conditional use
permit within one (1) year from the date pre-clearance is issued. If an
applicant has not sought a conditional use permit within the one (1)
year period, the applicant’s pre-clearance status will expire and a new
application will have to be submitted in order to seek a conditional use
permit. The Finance Director may, in his or her sole discretion, extend
an applicant’s pre-clearance status if the Finance Director determines
that there is a reasonable basis for the delay and the information
contained in the initial application is still accurate.
d) If a pre-cleared applicant successfully obtains a conditional use permit
from the Planning Commission, the applicant will be issued an
operator permit. If a pre-cleared applicant fails to obtain a conditional
use, the City will not issue that applicant an operator permit.
Conditional use permits issued for cannabis commercial operations are
valid for a maximum of five (5) years.
3. Rejection of Applications/Revocation or Suspension of Operator Permit.
The Finance Director, or designee, has the authority and discretion to reject,
suspend or revoke any application or permit. Applicants providing false or
misleading information in the permitting process will result in rejection of the
application and/or nullification or revocation of any issued permit. Grounds for
rejection of application or suspension/revocation of permit include, but are not
limited to:
a) Providing incomplete, late, or unresponsive applications.
b) Making false or misleading statements to the City.
17
c) Any owner, employee, or agent having been convicted of a violent
felony or crime of moral turpitude.
d) Any owner has had a cannabis-related license or approval revoked
from another jurisdiction.
e) Failure to comply with any provisions of this Chapter, the Zoning
Code, State law, or any other applicable laws or regulations.
f) Unpaid fees, fines, or administrative penalties.
g) Facts or circumstances exist which indicate that the Operation does or
would very likely constitute a threat to public health, safety and/or
welfare.
h) Failure to obtain the necessary planning approvals or revocation of said
planning approval in accordance with this Chapter and the Zoning
Code.
i) The Operation as proposed would violate any provision of State or
local laws or regulations.
j) Failure to implement and maintain a Security Plan in conformance
with Section 20.410.010.
k) Failure to implement and maintain a Fire Safety Plan in conformance
with this Chapter.
l) The Applicant has engaged in unlawful, fraudulent, unfair or deceptive
business acts or practices.
m) The Applicant’s State license for commercial cannabis operations is
suspended or revoked. The City shall not reinstate the permit until
documentation is received showing that the state license has been
reinstated or reissued. It shall be up to the City's discretion whether the
City reinstates any permit.
n) State law permitting the use for which the permit was issued is
amended or repealed resulting in the prohibition of such use, or the
City receives credible information that the federal government will
commence enforcement measures against such businesses and/or local
governments that permit them.
4. Renewal. Operators must renew operator permits each year to continue
operating in the City. The Finance Director shall have the authority and
discretion to design renewal application procedures. Any renewal application
shall require a site and vehicle inspection and submission of all of the
information specified in subsection D above and approval of said application in
accordance with the provisions of this Chapter.
5. Transfer. Operator permits are personal to the Operator and are non-
transferrable. In the event that an Operator sells, disposes of or otherwise
conveys a cannabis business in the City, the purchaser or successor-in-interest
shall obtain a new operator permit from the City prior to commencing
operations. Purchasers and/or successors-in-interest are not required to obtain
new conditional use permits for existing cannabis businesses provided that the
18
transfer of the business occurs during the five (5) year term of the conditional
use permit.
G. Operating Agreement. The City shall require an operating agreement as a condition of
receiving an operator’s permit. Such operating agreement shall set forth the terms and
conditions under which the commercial cannabis activity will operate, that are in addition to
the requirements of the South San Francisco Municipal Code. The terms and conditions may
include, but are not limited to the payment of fees, charges, and contributions as mutually
agreed, and any such other terms which promote the public health, safety, and welfare and
mitigate negative impacts of such use.
H. Appeals. Applicants/Operators may appeal the denial, suspension or revocation of a
cannabis operator permit by filing a written notice of appeal with the City Manager or
designee within ten (10) days after receipt of a denial or order of suspension or revocation
from the Finance Director. The City Manager or designee shall hold a hearing within thirty
(30) days of receiving the request for appeal where the applicant and the City may present
evidence regarding the denial, suspension or revocation of the Permit. The City Manager or
designee shall render his or her decision in writing on the appeal within forty-five (45) days
after the date of the hearing. Said decision shall be final and no appeal may be taken to the
City Council.
10. Add the following Section 20.410.010, in its entirety:
SECTION 20.410.010 Commercial Cannabis Operation Security Requirements
A. Approval of Security/Surveillance Plan. All applicants for commercial cannabis operator
permits must submit a security plan demonstrating compliance with the provisions of this
section. Prior to the issuance of any permit, the Chief of Police, or his/her designee, must
approve the security plan. Said plan must, in the Chief’s determination, demonstrate the
applicant’s ability to operate a safe operation that does not encourage criminal activity
and prevents the theft or diversion of cannabis.
B. Mandatory Elements of the Security Plan. To be eligible for approval, the security plan
must provide for all of the following components:
1. Minimum building security standards. Building security standards in compliance with
Chapter 15.48 of the South San Francisco Municipal Code.
2. Robbery alarm system. Installation and maintenance of a central station silent robbery
alarm system that is hidden from plain view, but easily accessible to authorized
personnel. Alarm systems shall be installed and maintained in compliance with
Chapter 6.60 of the South San Francisco Municipal Code.
3. Burglary alarm system. Installation and maintenance of a central station silent
intrusion alarm system. The silent intrusion alarm system shall include contact
sensors covering each entrance/exit, each skylight, as well as interior motion sensors.
19
Alarm systems shall be installed and maintained in compliance with Chapter 6.60 of
the South San Francisco Municipal Code.
4. Security guards. Employment of at least one uniformed security guard present during
normal business hours to include one half (½) hour before and after normal business
hours. The security guard shall be charged with preventing violations of the law,
reporting suspicious persons, vehicles, circumstances and all criminal offenses to the
Police Department. Security guards shall be uniformed in such a manner so as to be
readily identifiable as a security guard by the public and shall be duly licensed as a
security guard as required by applicable provisions of the State law and per Chapter
6.62 of the South San Francisco Municipal Code. The sole purpose of the security
guard shall be to provide for the protection and safety of the business and its
authorized personnel and said guard shall not be required to perform additional, non-
security related duties within the business. The Chief of Police reserves the right to
review the number of guards and may require that the number of guards be increased
or decreased as necessary.
5. Recordkeeping/Product Tracking. Implementation of a recordkeeping/product
tracking system to ensure that all cannabis is accounted for and any loss or theft is
easily discoverable in accordance with State law. These records shall be kept for at
least (1) year.
6. Employee Roster. Operator must keep a current and updated employee roster on-file
with the police department with the names and addresses of all Operator’s employees.
7. Video surveillance system. Installation of a video surveillance system meeting the
following criteria:
a. Cameras that record at a resolution of 1280 x 720 or higher,
b. Cameras that record in accurate color with a surveillance monitor that
displays in accurate color,
c. Sufficient storage capacity to retain data from all cameras for a period of
thirty (30) days,
d. An on-site monitor no smaller than fifteen (15) diagonal inches for viewing
of images,
e. The ability to view and record footage at the same time,
f. Accurate time and date stamps on recorded video images,
g. Locked and secure location of system to prevent destruction or tampering
from customers or employees. Access to the system shall be restricted to
management,
h. Cameras with clear and unobstructed view of the desired coverage areas,
i. A dedicated and secured power source to prevent intentional or accidental
deactivation, and
j. Separate cameras dedicated to each processing area, loading or shipping area,
each entrance/exit of the business, and the parking lot. The cameras shall be
placed in locations that allow a clear, unobstructed view of the desired
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locations and shall be periodically evaluated to ensure compliance. Enough
cameras shall be placed at each location to cover the entirety of the intended
area to be captured.
8. Prohibition on External Signage. The business shall not display any external signage
or other visual clues as to the nature of the business, including but not limited to,
green lights, depictions of marijuana leaves, “420,” or other common terms or
symbols associated with cannabis.
9. Prohibition of On-site Sales/Public Access. No access by the general public may
occur. No on-site sales to any customers may occur.
10. Prohibition on Delivery Vehicle Signage. No pickup or delivery vehicles may contain
or depict any signage or other visual clues as to the nature of the business, including
but not limited to, green lights, depictions of marijuana leaves, “420,” or other
common terms or symbols associated with cannabis.
11. Prohibition on Cannabis in Plain View. All cannabis, cannabis products, and any
aspect of the commercial cannabis operation that indicates the type of product(s)
inside shall not be visible from the public right-of-way, exterior of the structure,
and/or vehicle(s) where those commercial cannabis activities take place.
12. Prohibition on Advertising Business Address. The business shall not identify the
business address in any communications, advertisements and marketing, as required
under Chapter 15 of Division 10 of the California Business and Professions Code.
The business may only display the business name and license number.
13. Unauthorized Access. All entrances to the building shall remain locked at all times to
prevent unauthorized access from the exterior. The business shall utilize an electronic
card key system to allow access for authorized personnel. The system shall record and
log all entries/exits from the premises and such records must be retained for one (1)
year by the system.
14. Security of Loading/Shipping Areas. Loading/shipping areas shall have a double
security door design that securely isolates the loading/shipping area from the main
warehouse/processing area of the building when pickups or deliveries are made.
15. Drop safes. Each cannabis business shall install, maintain, and use a time delay drop
safe to store cash and limit the risk of robbery. Time delayed drop safes shall be rated
at UL TL-15 or higher.
16. Odor control system. The business shall install, maintain, and use an odor control
system to prevent cannabis odors from escaping and being detected within ten (10)
feet outside the building.
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C. Implementation and on-going compliance. All businesses must implement and maintain
the security systems and equipment required by this Chapter in strict accordance with the
approved security plan prior to commencing operations. If a business subject to this
Chapter does not meet or maintain the security standards required by this Chapter, the
business must take immediate steps to bring the security requirements into conformance
with the provisions of this Chapter. Failure to comply with the requirements of an
approved security plan is grounds for revocation of a permit and cessation of operations.
11. Revise Section 20.410.005 as follows:
SECTION 20.410.011 Nuisance, Violation and Enforcement
The establishment, maintenance or operation of a storefront cannabis retail establishment,
microbusiness, manufacturing facility, testing facility, distribution facility, delivery-only
operation, indoor commercial cultivation operation, or outdoor cultivation of Cannabis in
violation of or in non-compliance with any of the requirements of this Chapter or applicable
provisions of State law or the Zoning Code or South San Francisco Municipal Code, is declared
a public nuisance and, in addition to or in lieu of prosecuting a criminal action, shall be subject to
any enforcement or abatement remedies available under the law and/or the City’s Municipal
Code. In addition, the City may enforce the violation of this Chapter by means of civil
enforcement through a restraining order, a preliminary or permanent injunction or by any other
means authorized by the law.
12. Add Section 20.410.012, in its entirety, as follows:
SECTION 20.410.012 Administrative Procedures
The City Manager may adopt reasonable administrative procedures necessary to implement this
Chapter.
13. Add Section 20.410.013, in its entirety, as follows:
SECTION 20.410.013 Conflict of Laws
In the event that any provision of this Chapter is in conflict with State law or regulations, as
may be amended from time to time, said State law or regulation shall control to the extent
that said State law or regulation preempts local regulations.
14. Revise Table 20.090.002 “Land Use Regulations—Commercial, Office, and
Mixed-Use Districts” as follows:
Use Classification CC BPO CMX ECRMX Additional
Regulations
Commercial Uses
Business Services
P P P P
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Commercial Cannabis
Businesses
Cannabis Delivery-
Only Operations - - - -
See Chapter
20.410
“Regulation of
Cannabis
Activities”
Cannabis Distribution - C - -
See Chapter
20.410
“Regulation of
Cannabis
Activities”
Cannabis
Manufacturing - C - -
See Chapter
20.410
“Regulation of
Cannabis
Activities”
Cannabis Testing - C - -
See Chapter
20.410
“Regulation of
Cannabis
Activities”
15. Revise Table 20.110.002 “Land Use Regulations—Employment Districts” as
follows:
Use Classification BC BTP FC MI Additional
Regulations
Commercial Uses
Business Services
P MUP - P
Commercial Cannabis
Businesses
Cannabis Delivery-
Only Operations C C - C
See Chapter
20.410
“Regulation of
Cannabis
Activities”
Cannabis Distribution - _ - C
See Chapter
20.410
“Regulation of
Cannabis
Activities”
Cannabis
Manufacturing - _ - C
See Chapter
20.410
“Regulation of
Cannabis
Activities”
Cannabis Testing C C - C
See Chapter
20.410
“Regulation of
Cannabis
Activities”
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16. Revise Table 20.210.003 “Land Use Regulations—Bay West Cove Specific Plan
District” as follows:
Bay West Cove Planning Area
Uses Permitted 1a 1b 2 3 4 Additional Regulations
Employment Use
Classifications
Cannabis Testing C - C C -
See Chapter 20.410
“Regulation of Cannabis
Activities”
Research and Development P - P P -
17. Revise Table 20.220.003 “Land Use Regulations—Gateway Specific Plan
District” as follows:
Uses Permitted Gateway Specific Plan Zone Additional Regulations
Employment Use Classifications
Cannabis Testing - C C C - See Chapter 20.410 “Regulation of
Cannabis Activities”
Research and development - P P P P
18. Revise Table 20.230.003 “Land Use Regulations” for the Oyster Point Specific
Plan District as follows:
Uses Classifications Planning Area 1 Planning Area 2
Employment Uses
Cannabis Testing C(7) C(7)
Research and Development P P(5)
Notes:
1. Limited to storage, repair and service of water craft, except that Automobile Vehicle Rentals may be approved as
ancillary to a hotel use.
2. Only within hotels.
3. Retail and eating and drinking establishment uses are limited to a total of 40,000 square feet in Planning Area 2.
4. Hotel use is limited to no more than two hotels of up to a total of 350 rooms.
5. Use may be subject to limitations pursuant to terms of an approved Disposition and Development Agreement.
6. Only permitted to be installed on building rooftop—all other equipment and facilities must be inside the primary
structure or an approved and established equipment yard—and subject to Chapter 20.370 (“Antenna and Wireless
Communications Facilities”).
7. See Chapter 20.410 “Regulation of Cannabis Activities”
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