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Home My WebLink About2019-06-26 e-packet@6:00Wednesday, June 26, 2019 6:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Municipal Services Building, Council Chambers 33 Arroyo Drive, South San Francisco, CA Special City Council Special Meeting Agenda June 26, 2019Special City Council Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, June 26, 2019, at 6:00 p.m., in the City Council Chambers, Municipal Services Building, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: Call to Order. Roll Call. Agenda Review. Public Comments - comments are limited to items on the Special Meeting Agenda. ADMINISTRATIVE BUSINESS Report regarding a motion to accept the construction improvements of the Slurry Seal Project as complete in accordance with plans and specifications (Total Construction Cost $1,202,364.32). (Matthew Ruble, Acting Principal Engineer, and Peter Vorametsanti, Swinerton) 1. Report regarding a resolution amending the City of South San Francisco’s Master Fee Schedule to reduce the service franchise fee for police-generated tows.(Master Sergeant Danny Gil) 2. Resolution authorizing an amendment to the City’s Master Fee Schedule for the renewal of franchise fees for tow service franchises 2a. Report regarding a resolution approving a comprehensive plan to address long-term pension obligations. (Christina Crosby, Interim Director of Finance) 3. Resolution approving a comprehensive plan to address long-term pension obligations.3a. Report regarding a resolution approving and authorizing the City Manager to execute a Cooperative Implementation Agreement No. D43CIASF0002 with Caltrans for the Phase II Orange Memorial Park Storm Water Capture Project. (Bianca Liu, Associate Engineer, Robert Dusenbury, Lotus Water) 4. Resolution approving and authorizing the City Manager to execute a Cooperative Implementation Agreement No. D43CIASF0002 with Caltrans for the Phase II Orange Memorial Park Storm Water Capture Project. 4a. Adjournment. Page 2 City of South San Francisco Printed on 8/14/2019 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-545 Agenda Date:6/26/2019 Version:1 Item #:1. Report regarding a motion to accept the construction improvements of the Slurry Seal Project as complete in accordance with plans and specifications (Total Construction Cost $1,202,364.32).(Matthew Ruble,Acting Principal Engineer, and Peter Vorametsanti, Swinerton) RECOMMENDATION It is recommended that the City Council,by motion,accept the construction improvements of the Slurry Seal Project (CIP Project No.st1903a)as complete in accordance with plans and specifications (Total Construction Cost $1,202,364.32). BACKGROUND/DISCUSSION On October 20,2018,the City awarded a construction contract to G.Bortolotto &Co.,Inc.to rehabilitate approximately 170,000 square yards of City streets with the application of asphalt surface sealer:a mixture of polymer modified asphalt emulsion,mineral aggregate,mineral filler,water,concrete,and other additives.The work included removal of vegetation,debris and pavement striping and marking on streets,repairs of concrete curbs and gutters and structural pavement failures,application of the slurry seal mixture,replacement of striping and pavement markings,and street sweeping.The work was inspected by the Engineering Division and found to be complete in accordance with the contract documents as of June 7,2019.Location map and photos are included in the Attachment 1 of this staff report. FISCAL IMPACT This project is funded by the Measure W and OBAG 2 funds,and the project is included in the City of South San Francisco’s Fiscal Year 2018-19 Capital Improvement Program (Project No.st1903)with sufficient funds allocated to cover the project cost. The total construction cost incurred for the project is summarized as follows: Projected Actual G. Bortolotto & Co., Inc. Contract $1,179,717 $1,179,717.00 Construction Contingency $120,283 $22,647.32 Total Construction Budget $1,300,000 $1,202,364.32 Contingency was used for re-posting of No Parking signs that were vandalized,additional notifications (door hanger)for residents on streets with required repairs,and for pavement striping that was added after the bid to enhance the project area. RELATIONSHIP TO STRATEGIC PLAN The project is consistent with the City’s Strategic Plan initiative to build and maintain a sustainable city. City of South San Francisco Printed on 6/27/2019Page 1 of 2 powered by Legistar™ File #:19-545 Agenda Date:6/26/2019 Version:1 Item #:1. CONCLUSION Staff recommends acceptance of the project as complete. Upon acceptance, a Notice of Completion will be filed with the County of San Mateo Recorder’s office. At the end of the thirty-day lien period, the retention funds will be released to the Contractor after the City has received a one-year warranty bond. It is recommended that the City Council,by motion,accept the construction improvements of the Slurry Seal Project (CIP Project No.st1903a)as complete in accordance with plans and specifications (Total Construction Cost $1,202,364.32). Attachment 1 - Location Map and Before and After Photos City of South San Francisco Printed on 6/27/2019Page 2 of 2 powered by Legistar™ St1903a Surface Seal Project Attachment 1, Page 1 of 4 LOCATION MAP St1903a Surface Seal Project Attachment 1, Page 2 of 4 PHOTOS Chestnut Avenue at Treeside Court St1903a Surface Seal Project Attachment 1, Page 3 of 4 Miller Avenue at Westview Drive St1903a Surface Seal Project Attachment 1, Page 4 of 4 Grand Avenue at Mission Road City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-327 Agenda Date:6/26/2019 Version:1 Item #:2. Report regarding a resolution amending the City of South San Francisco’s Master Fee Schedule to reduce the service franchise fee for police-generated tows.(Master Sergeant Danny Gil) RECOMMENDATION It is recommended that the City Council adopt a Resolution to amend the Master Fee Schedule to lower the specified franchise fee for police-generated vehicle tows from $50 to $20 per vehicle. BACKGROUND/DISCUSSION The City of South San Francisco (City) has a regular and ongoing need to have tow companies available to tow vehicles from public roadways for a variety of reasons, including the removal of vehicles disabled by mechanical breakdowns or collisions, vehicles left abandoned, vehicles with excessive unpaid parking citations (five or more unpaid citations) and vehicles being driven by persons with suspended licenses or who are being arrested. These City requested tows are regulated by California State law and are facilitated through the Police Department. The City regulates all tow services, including police-generated tows, through Chapter 6.64 of the Municipal Code. Over the past five years, the City has averaged more than 748 police-generated tows annually. Section 12110(b)of the California Vehicle Code (CVC)allows a municipality to establish franchise agreements for police-generated tows and to charge a fee to reimburse the municipality for the reasonable costs incurred with managing the towing franchise program.Based on this State law,the City established a franchise fee of $50 for each police-generated vehicle tow to be paid by the tow company to the Police Department to defray the costs of administering the program. Through the police-generated tow program,the Police Department utilizes the services of three approved towing companies (Action Towing,Bob Jr’s Towing and Courtesy Tow)who are all parties to a franchise towing agreement with the City to perform police-generated tows on a rotational tow program.By joining the City’s rotational tow program,these three tow companies submit to police background checks on all of their tow truck drivers to ensure the hiring of honest and trustworthy employees to provide the best service to the public involved in police-generated tows. Franchisee Feedback The franchise towing agreement contract is renewed every three years.In January 2019,the contract expired, and a meeting was held between the three franchise tow companies and the Police Department.During this meeting,franchise fees were discussed at length.The tow companies’owners expressed concern about the overall costs of participating in the Police Department’s rotational tow program.After explaining the financial difficulties of the Police tow program,the tow companies requested the current franchise fees be reviewed for consideration of having the fees lowered prior to committing themselves to a new contract with the City. The three current City approved tow companies participating in the rotational tow program have proven themselves to be credible and reliable resources in assisting the City with the necessary removal of vehicles from the City streets.Because these companies have submitted their drivers to police background checks City of South San Francisco Printed on 6/27/2019Page 1 of 3 powered by Legistar™ File #:19-327 Agenda Date:6/26/2019 Version:1 Item #:2. from the City streets.Because these companies have submitted their drivers to police background checks through the years,the current tow companies have established trustworthy employees who the Police Department trust to work with the public during police-generated towing.Losing these three companies would significantly impede the Police Department’s ability to properly remove vehicles needing to be towed from the City streets,since the Police Department regulates the tow companies’response times to police-generated tows. Because of this longstanding good-working relationship between the City and these three towing companies, the Police Department agreed to carefully consider the company owners’ feedback regarding the franchise fees. The franchisees explained they are facing significantly more financial pressures today than they were several years ago to include increased insurance and rent prices.Combined with these factors decreasing their profits, the franchisees pointed to the specific issues related to towing and storing of abandoned vehicles for the City. The tow companies are compensated for towing abandoned vehicles either when the vehicles were claimed by owners or by selling the vehicle at the end of the State-mandated storage period (The State requires tow companies to store abandoned vehicles valued under $4,000 for 30 days,at the end of which they can dispose of them. Tow companies generally lien-sell these vehicles at auction or sell them to junkyards.) The tow companies explained as few as 22 percent of these abandoned vehicles are reclaimed by the owners (who then pay the original tow and daily storage fees).For approximately 78 percent of the abandoned vehicle tows,the tow companies must try to recoup their expenditures by lien-selling or junking (depending on its value)the vehicle.Market factors,including decreased value for metal have negatively impacted the likelihood of the tow companies making a viable profit with respect to those vehicles that are sold to junkyards.Additional factors include the increased costs of disposing hazardous materials,such as paint and other chemicals, commonly found inside of abandoned vehicles. After examining the costs and benefits of participating in the City’s tow program,the owners concluded it was no longer financially beneficial for them to provide towing services specifically due to the $50 service franchise fee per police-generated tow. Additional Information The Police Department has reviewed the issue of decreased financial viability of towing and storing abandoned vehicles as described by the tow company owners and found it to be reasonable.Attachment I contains a chart illustrating the steady increase in the number of police-generated tows of abandoned vehicles over the past five years.In 2015 there were 180 vehicles towed for 72-hour parking violations compared to 321 vehicles towed in 2018. Additionally,prior to State law changes in 2012,vehicles could be towed and stored for a 30-day impound, after the drivers were found to be unlicensed at sobriety DUI checkpoints or during lawful traffic stops on public roadways.Since most of the vehicles were valuable and in good condition,the vehicles towed and stored under these laws were later retrieved by the registered owners.This resulted in the tow companies receiving reimbursement for the tow and 30-days’ worth of storage fees. The 2012 adoption of sections 2814.2 and 14602.6 of the California Vehicle Code no longer allowed the police to tow vehicles for 30-day impounds when the driver was found to be unlicensed.Attachment II shows the number of police-generated vehicle tows that have substantially dropped.This information is significant to this proposal because prior to 2012,tow company participation with the Police Department franchise agreement was more profitable than it is today due to the higher number of retrieved vehicles from these 30-day City of South San Francisco Printed on 6/27/2019Page 2 of 3 powered by Legistar™ File #:19-327 Agenda Date:6/26/2019 Version:1 Item #:2. was more profitable than it is today due to the higher number of retrieved vehicles from these 30-day impounds.The tow company owners report that the financial burden of the franchise fee is more significant today than it was prior to 2012. Finally,as is standard State-wide,the Police Department determines how much tow companies can charge the public for police-generated tows.The tow rates allowed to be charged to the public in South San Francisco for police-generated tows are among the lowest rates in San Mateo County.In addition to regulating these tow rates,the Police Department has placed a cap of $75 for after hour fees which are referred to as “gate fees,” while other cities typically charge half the rate of a tow (up to $150)for “gate fees.”Attachment III shows tow rate comparisons of San Mateo County cities.Historically this has been at the council’s discretion to keep the fees to our residents reasonable. During the meeting with the franchisees,none of the tow company owners were opposed to increasing the tow rates to match other cities in San Mateo County.However,the owners stated the overall issues with their financial burden due to the service franchise fee would remain.Moreover,increasing the overall tow rates would have a financial impact on the public while reducing the service franchise fee would have no such impact on the public. Although section 12110(b)CVC allows police agencies to charge a franchise fee,our City is the only city in San Mateo County that opted to do so.The City of South San Francisco is the only San Mateo County city charging these franchise fees. After discussing the issue with the tow company owners and examining the facts as described above, the Police Department proposes the franchise fee be lowered from $50 per police-generated tow to $20. FISCAL IMPACT Currently the three participating tow companies pay a combined approximate total of $37,400 annually in franchise fees (based on $50 per tow and an average of 748 tows per year). If this proposal is adopted and the franchise fee is lowered to $20 per tow,the tow companies will pay approximately $14,960 per year. CONCLUSION It is recommended that the City Council adopt a Resolution to amend the Master Fee Schedule to lower the specified franchise fee for police-generated vehicle tows from $50 to $20 per vehicle. ATTACHMENTS I.Abandoned Vehicle Towed II.Pre and Post 2814.2 CVC III.Gate Fees City of South San Francisco Printed on 6/27/2019Page 3 of 3 powered by Legistar™ Attachment I I 0 50 100 150 200 250 300 350 2014 2015 2016 2017 2018 240 180 200 257 321 Abandoned Vehicles Towed Total Tows Attachment II II BOB JR TOW COURTESY TOW SBAC/ACTION TOWS YEARLY TOW AVERAGE PER COMPANY YEARLY PD GENERATED TOWS 1,708 1,726 1,749 350 1,036 1,168 1,291 1,281 250 748Total Police Generated TowsPre and Post 2814.2 CVC (2012) AB 353 SBAC Sold To Action Tow March 2016 2007-2012 (Pre Law)2014-2019 (Post Law) Attachment III III Agency Standard Tow Fee Daily Storage Fee South San Francisco Police $225 $60 Burlingame $200 $70 Sheriff’s Office $264 $88 San Bruno $300 $95 Brisbane $300 $95 SFO Police $300 $95 Highway Patrol Golden Gate $300 $95 Colma $300 $95 Broadmoor $300 $88 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-328 Agenda Date:6/26/2019 Version:1 Item #:2a. Resolution authorizing an amendment to the City’s Master Fee Schedule for the renewal of franchise fees for tow service franchises WHEREAS,staff recommends modification to the City Master Fee Schedule for Fiscal Year 2019-20 as set forth in the staff report and Exhibit “A” to this Resolution; and WHEREAS, the fees reflect the reasonable costs of providing the subject services. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council amends and adopts the revision to the Master Fee Schedule to include fee amendment specified in the staff report and attached as Exhibit A. BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco does herby amend the FY 2019-20 Master Fee Schedule to reflect the modified fee charged by the Police Department. ***** City of South San Francisco Printed on 6/27/2019Page 1 of 1 powered by Legistar™ Exhibit A PROPOSED MASTER FEE SCHEDULE CHANGES FOR POLICE FY 2019-2020 Police 1. Change: P16-Renewal for Tow Service Franchise Fee - $20.00 Per Vehicle City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. Report regarding a resolution approving a comprehensive plan to address long-term pension obligations. (Christina Crosby, Interim Director of Finance) RECOMMENDATION It is recommended that the City Council adopt a resolution approving a comprehensive plan to address long-term pension obligations. BACKGROUND In Fiscal Year 2017-18 the San Mateo County Civil Grand Jury issued a report,“Soaring Pension Costs -Time for Hard Choices.”The report recommended that cities develop a financial plan to address rising pension costs. At a special City Council meeting on April 9,2019,Finance Department staff presented a financial review of the City,including the escalating cost of pensions,and recommended options the City could take to begin addressing escalating pension costs. DISCUSSION Like other general law cities of its kind,the City of South San Francisco (City)obtains the majority of its funding through taxes to provide services to the community.The City’s primary taxes are property tax,sales tax,and transient occupancy tax (TOT),all of which are accounted for in the City’s General Fund.The General Fund serves as the City’s primary operating fund, and as such, is the primary focus of the study session. Major Revenues Property Tax Since 1978,the property tax framework has been guided by Proposition 13,which includes the following principal tenets: 1.Annual property tax assessment is limited to one percent (1%)of the assessed value (AV)of land and improvements. 2.Annual increase in assessed value is limited to no more than two percent (2%). 3.Allocation of the 1%property tax between public entities is largely static.In San Mateo County,on average,school districts receive 43 percent,the County receives 26 percent,and local municipalities receive 18 percent. In other words, for every dollar paid in property tax, local cities receive $0.18. 4.Property is reappraised to current full value immediately upon a change in ownership. At 30 percent of total General Fund revenues,property tax is the City’s top revenue source.In Fiscal Year (FY) 2017-18,the City received $34.1 million in property tax,the majority of which came from current year secured property tax ($17.4 million). Sales Tax The State of California began imposing sales tax on retailers for the privilege of selling tangible personal property in 1933.In 1935,the state added “use tax”to protect retailers from then tax-free,out-of-state competitors.Over the course of a decade,324 local cities established their own sales taxes.In an effort to promote administrative efficiency and uniformity,the Legislature passed the Bradley-Burns Local Sales and Use Tax Law in 1955 (Bradley-Burns).Of the current 9.25 percent sales tax rate in South San Francisco,theCity of South San Francisco Printed on 6/27/2019Page 1 of 7 powered by Legistar™ File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. Use Tax Law in 1955 (Bradley-Burns).Of the current 9.25 percent sales tax rate in South San Francisco,the City receives 1.0 percent,pursuant to Bradley-Burns,and 0.5 percent,pursuant to Measure W,which was approved by South San Francisco voters in November 2015. In FY 2017-18,the City received $17.6 million in sales tax revenues,which represented 15 percent of total General Fund revenues.Measure W revenues totaled $11 million.Since inception,the City has received $21.5 million in Measure W revenues. Transient Occupancy Tax (TOT) TOT is a general tax imposed on occupants for the privilege of occupying a room in a hotel,motel,inn,etc.The City’s current TOT rate is 12 percent per transaction,plus the South San Francisco Conference Center tax of $2.50 per night/room.FY 2017-18 TOT revenues were $14.0 million,or 12 percent of total General Fund revenues. On November 6,2018,South San Francisco voters approved Measure FF,which increased the TOT rate from 10 to 12 percent as of January 1,2019,13 percent as of January 1,2020,and finally,14 percent as of January 1, 2021. As illustrated in Attachment 1,tax revenues,including all of the aforementioned taxes,business license taxes, and property transfer taxes,totaled $71.6 million,or 64 percent of total General Fund revenues in FY 2017-18. Due to the reliance upon tax revenues for operational funding,local government entities,such as the City of South San Francisco,are susceptible to the ebb and flow of the local,state,and national economy.Reliance upon tax revenues poses a challenge to service delivery during periods of economic contractions,as employee salaries and benefits comprise 77 percent of the City’s General Fund operating costs. Major Expenditures As indicated in Attachment 2,in FY 2017-18,excluding transfers,from a department perspective,the City’s Fire and Police departments comprised 55 percent of total General Fund expenditures,which is common for full service city government operations.Attachment 3 analyzes General Fund expenditures by type,where employee salaries and benefits cost $74.7 million,or 77 percent of total General Fund expenditures in FY 2017- 18.Within that expenditure category,$46.3 million was spent on employee salaries,and the remaining $28.4 million was for employee benefits.Of the $28.4 million in employee benefits in FY 2017-18,$15.3 million,or 20 percent of total employee costs,reflected the City’s payment to CalPERS.Attachment 4 provides historical and projected CalPERS pension contributions and the percentage of total General Fund expenditures.As manifest in the data,pensions will continue to take on a greater proportional share of General Fund expenditures each year, which warrants the discussion below to provide a clear understanding of pensions: 1.CalPERS background; 2.Key pension terms; 3.Pension liability primer; and 4.Options to address pension liabilities. CalPERS Background In 1932,the State Employees’Retirement System (SERS)was established.In 1939,the State Legislature passed a bill that allowed counties,cities,and school districts to participate in SERS.The City of South San Francisco joined SERS in 1945 to provide pension benefits to its employees.In 1992,SERS changed its name to the California Public Employees’Retirement System (CalPERS).CalPERS is the largest pension trust in the country, with $357 billion in assets and 1.9 million members. City of South San Francisco Printed on 6/27/2019Page 2 of 7 powered by Legistar™ File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. Over the past two decades,CalPERS has endured significant investment return volatility,including the boom and bust of the dotcom era and the Great Recession.CalPERS’strategic actions to reduce its exposure to economic fluctuation included changes in actuarial assumptions (discount rate,mortality rate),and changes in how gains and losses were amortized. CalPERS’ Investment Earnings For every dollar of pension benefits paid to retired annuitants over the past twenty years,59 cents is funded by CalPERS investment earnings,while 28 cents comes from contributions from CalPERS employers,and the remaining 13 cents comes from contributions from CalPERS members.CalPERS’dependence on its investment earnings to pay pension benefits,when in contrast against the investment volatility it has experienced, has played a major role in escalating pension costs. The chart in Attachment 5 illustrates CalPERS’historical return on investment (ROI)in comparison to the discount rate,which is the expected rate of return over a long period of time.In CalPERS’s case,the time horizon for measuring long term investment returns is 30 years.Over the past 24 years,CalPERS’annual rate of return has been as high as 20 percent in FY 1996-97 to as low as negative 23 percent in FY 2008-09.In order to address the investment volatility while ensuring long term sustainability,CalPERS has implemented a number of significant changes to its policies and actuarial assumptions. Notable Changes to Policy and Actuarial Assumptions In 2013,CalPERS shifted from a 30-year open amortization of its pension liabilities to a 30-year closed amortization.In the former,the Unfunded Accrued Liability (UAL)was refinanced each year for another 30- year period. In the latter, the UAL will be fully paid by the end of the amortization period. Within the 30-year amortization,CalPERS implemented a ramping method to mitigate the impact of investment gains/losses and changes in actuarial assumptions.Within the 30-year period,the amortized cost of the first five years is gradually ramped up,20 percent each year.If the annual cost of a particular amortization base is $100,000 per year,the then the cost in Year 1 would be $20,000.In Year 2,the cost would increase to $40,000, and so on.While this methodology is favorable in the short term,it is more costly to the employer in the long term,as there is less principal being paid than would be under normal amortization,and the total principal balance to pay off ends up being higher than the actual UAL due to the cost of interest.This phenomenon is known as negative amortization.At the tail end of the 30-year amortization period,the annual payment would go through a “ramp down” process, which is a reverse of the 5-year ramp up process. In 2015,CalPERS adopted a funding risk mitigation policy,which established investment-related events that would be triggered if certain criteria were met.For example,if actual investment returns exceeded the discount rate by 4.0 percent,the discount rate would be reduced by 5 basis points (0.05 percent).While higher investment returns may be welcome by some,from CalPERS perspective,the deviation from expected outcome is an indication that the investment portfolio’s risk profile (i.e.the proportion of CalPERS assets invested in higher risk investment vehicles) is too high. In December 2016,the CalPERS Board of Administration approved a reduction of the discount rate from 7.5 to 7.0 percent.The reduction reflects the impact of a relatively low interest rate market on CalPERS long-term investment projections.While Governor Brown preferred to implement the accompanying increase in employer contribution rate immediately,the sharp contribution increase would have put several CalPERS member agencies into fiscal duress.As a compromise,CalPERS agreed to phase in the discount rate reduction over a three year period.Factoring in the five-year ramp up method,the full impact of the discount rate reduction will City of South San Francisco Printed on 6/27/2019Page 3 of 7 powered by Legistar™ File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. three year period.Factoring in the five-year ramp up method,the full impact of the discount rate reduction will be not felt until seven years after implementation of the first amortization base.The CalPERS Board also temporarily suspended the funding risk mitigation policy discussed above until further notice. In February 2018,CalPERS reduced the period to amortize gains and losses from 30 to 20 years.While the long-term cost to member agencies will be lower,the contribution rates will be higher in the short term.A similar analogy would be paying off a mortgage over 20 years rather than the traditional 30 years.The long- term cost is lower due to higher principal payments, shorter amortization period, and reduced interest expense. Key Pension Terms and Concepts Defined Benefit Public pensions,such as those available through CalPERS,are defined benefit plans,where an employee’s pension earnings are calculated based on the length of service and the highest salary,which typically is at the end of their career.As a general example,the annual pension benefit for a “Classic”member of CalPERS that worked their entire career for the City of South San Francisco for 30 years as a Parks Maintenance Worker and retired at the end of 2018 at the age of 55 would be calculated as follows: Highest 12-month average salary: $66,414 Number of service years: 30 Pension plan: 2.7% @ 55 Benefit factor: (30 x 0.027) = 0.81 Annual pension benefit = $66,414 x 0.81 = $53,795 Member types CalPERS members are identified as either “Classic”or “PEPRA”.Classic members were a member of CalPERS before January 1,2013.Any new members hired on or after January 1,2013 are subject to a less rich pension benefit pursuant to the Public Employees’Pension Reform Act (PEPRA).Prior to PEPRA,the City Council adopted a second Classic tier for both the miscellaneous and safety pension plans to address the City’s pension liabilities.As such,pension benefit tiers are as follows in the City of South San Francisco,where the member earns a percent for every year of service,with the latter portion of the formula reflects the retirement age. Pension Plan Tier 1 Classic Tier 2 Classic PEPRA Miscellaneous 2.7% @ 55 2.0% @ 60 2.0% @ 62 Safety 3.0% @ 50 3.0% @ 55 2.7% @ 57 Pension Liability Primer A net pension liability exists when pension plan liabilities exceed pension plan assets.Pension plan assets include investment earnings,employer pension contributions,and employee pension contributions.Pension plan liabilities reflect investment losses and changes in actuarial assumptions.To avoid extreme volatility,the above liabilities are amortized or spread over a long period of time,similar to a mortgage.Each year,any investment deviation from the discount rate,whether a gain or loss,is recognized as an amortization base.Each subsequent year over the 20-year amortization period,CalPERS assesses the annual amortized annual payment for each of the existing amortization bases.Attachment 6 provides the amortization bases as reflected in CalPERS’ annual actuarial valuation for the miscellaneous and safety pension plans. City of South San Francisco Printed on 6/27/2019Page 4 of 7 powered by Legistar™ File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. San Mateo County Grand Jury Report On July 17,2018 County of San Mateo Civil Grand Jury released a report entitled “Soaring City Pension Costs -Time for Hard Choices.”There were multiple recommendations,including scheduling public hearings, posting detailed pension obligations on the City website and have City staff prepare and post a plan to address pension costs by June 30,2019.The City has addressed the first two recommendations and staff would now like to adopt a formal plan and post on the City website (http://www.ssf.net/departments/finance). Options to Address Pension Liabilities The City Council already implemented a number of options to address pension liabilities: ·In 2010,the City Council established a second pension tier for classic CalPERS members.Any employee hired on or after April 25,2010 falls under the second pension tier.For any miscellaneous members (non-public safety),the pension formula is 2.0%@ 60,as opposed to 2.7%@ 55 for tier 1 members. Any safety members earn 3.0% @ 55, as opposed to 3.0% @ 50. ·In FY 2015-16,the City established the CalPERS Stabilization Reserve to address pension contribution volatility. ·In July 2017,the Council approved agreements with public safety employees,which include International Association of Firefighters Local 1507 (IAFF),Police Officers Association (POA),Public Safety Managers (PSM),and Executive Management.These agreements outlined provisions for employee cost-sharing of City contributions to CalPERS as part of a long-term strategy to reduce the City’s pension costs.The plan includes an increase in employee contributions to pension by 3%of salary,for a total employee contribution of 12%of salary.This will,in turn,reduce the City’s costs by the same amount.The increases are scheduled to occur in 1%increments in each fiscal year from 2017 to 2019. ·In FY 19-20 City Council moved forward with two ballot measures to increase the City’s tax base, Measure FF and Measure LL.Measure FF increases hotel Transient Occupancy Tax (TOT)by 2%in 2019.The ballot measure also authorized an additional 1%each year to a maximum TOT rate of 14%. Measure FF first increased the City's TOT rate to 12%effective January 1,2019.Subsequently,it will then increase the City's TOT rate to 13%effective January 1,2020.Finally,Measure FF would increase the City's TOT rate to a maximum of 14%effective January 1,2021.This is estimated to generate approximately $5.9 million of additional revenue annually for the General Fund.In addition to Measure FF,Measure LL set the business license tax for all types of commercial cannabis operations permitted within the City at a minimum rate of 1%for gross receipts.Additionally,it established maximum rates for permitted cannabis uses:a maximum of 2.5%of gross receipts for Testing,a maximum of 4%of gross receipts for Cultivation;a maximum of 3%of gross receipts for Distribution,a maximum of 5% of gross receipts for Manufacturing, and a maximum of 5% of gross receipts for Delivery Only. There are additional options that the City Council can consider to address pension liabilities, including: Contribute additional funds to CalPERS The City could consider paying funds in addition to the required annual contribution to pay down existing amortization bases.The additional funds would reduce the principal balance on the amortization base;shorten the period of time that the amortization base is paid,thus reducing the accompanying interest expense.The City’s 10-year financial forecast,included as Attachment 7,depicts the projected outcome with no additional contributions to CalPERS.City staff projects operating outcomes that range from a deficit of $0.5M in FY 2028 -29 to a surplus of $3.5M in FY 2021-22.Page 2 of Attachment 7 projects the City’s reserves,including General Fund Reserve,Infrastructure Reserve,and the CalPERS Stabilization Reserve,which is projected to City of South San Francisco Printed on 6/27/2019Page 5 of 7 powered by Legistar™ File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. General Fund Reserve,Infrastructure Reserve,and the CalPERS Stabilization Reserve,which is projected to end FY 2028-29 with a balance of $13.3 million, and a projected pension liability of $130.0 million. Attachment 8 provides a similar financial forecast where the City contributes $1.0 million additional funds per year to CalPERS beginning in FY 2022-23.In this scenario,staff projects operating outcomes ranging from a deficit of $0.7 million in FY 2028-29 to a surplus of $3.7 million in FY 2021-22.Page 2 of Attachment 8 notes that the additional contributions to CalPERS reduce the pension liability by $6.8 million,from $130.0 million to $123.2 million in FY 2028-29. Contribute to a Section 115 Pension Trust Fund In February 2014,the City Council authorized investment of $13.5 million in funds with the California Employers’Retiree Benefit Trust (CERBT)that had accumulated over a number of years in an internal service fund,intended to address the City’s Other Post-Employment Benefits (OPEB)liability.The trust fund assets included in CERBT can be directly netted against the City’s OPEB liability on the City’s Comprehensive Annual Financial Statement (CAFR).This figure is noted as the Net OPEB liability.Since that time,the City’s operating budget has included budget appropriations to ensure ongoing contributions to CERBT.As of September 30, 2018, the City’s CERBT balance is $22,526,702. Similar to the above concept,as one viable option to address pension liabilities,the City Council could invest funds into a Section 115 pension trust fund.However,there is one distinct accounting nuance with pension trust funds.Any assets from a pension trust fund are not directly netted against pension liabilities.Instead,they are reported as a restricted asset on the entity-wide financial statement in the CAFR.While the net position (the bottom line)is still the same,for some agencies,this nuance is a deterrent.If the City invested the current balance of $5.5 million in the CalPERS Stabilization Reserve,then beginning in FY 2022-23,$1.0 million on an annual basis into a Section 115 pension trust fund with a discount rate of 5.0 percent,as illustrated in Attachment 9,the City’s net pension liability would be reduced by $19.0 million,from $130.0 million to $111.0 million. Comprehensive Plan to Address Long-Term Pension Obligations As stated above the City Council has been proactive in the steps that have already been implemented.Most consultants recommend using a combination of different approaches to address outstanding CalPERS obligations. Below is the recommended plan to address long-term pension obligations: ·Continue to explore ways to raise revenue and increase the tax base.In addition to the above ballot measures the City is currently proactive in cost recovery and analyzes our Master Fee Schedule to ensure that we are charging adequately for service delivery. ·Continue to explore potentially contributing a percentage of General Fund surplus at the end of the fiscal year to the existing CalPERS Stabilization Reserve. ·Continue to work toward employee cost-sharing for the City’s contribution to CalPERS with additional labor groups to lower the City’s contribution to CalPERS. ·Continue to explore the possibility of creating a 115 pension trust fund with the existing $5.5 million in the CalPERS Stabilization Reserve. FISCAL IMPACT The City’s pension contributions are projected to increase by $10.2 million,or 59 percent over the next decade. At this time there is no fiscal impact since staff is seeking approval of a comprehensive plan to address long term pension obligations. City of South San Francisco Printed on 6/27/2019Page 6 of 7 powered by Legistar™ File #:19-572 Agenda Date:6/26/2019 Version:2 Item #:3. RELATIONSHIP TO STRATEGIC PLAN Developing a plan to fund the City’s CalPERS pension obligations is part of the Financial Stability priority area of the strategic plan. CONCLUSION Staff recommends that the City council adopt a Comprehensive Plan to Address Long-Term Pension Obligations (attachment 10)that continues a multi-pronged approach to address the challenge of escalating pension contributions and liabilities.This includes,continuing to explore increases in the tax base and charges for service,funding the existing CalPERS Stabilization Reserve with potential surpluses in the General Fund at fiscal year-end,and continuing to pursue cost sharing for the City’s pension obligation with additional labor groups, and explore the potential of 115 pension trust. Attachments: 1.General Fund Tax Revenues 2.General Fund Expenditures by Department 3.General Fund Expenditures by Type 4.Historical and Projected Pension Contributions 5.CalPERS ROI 1994-95 to 2017-18 6.Schedule of Amortization Bases 7.General Fund 10-year Forecast - No Additional Contributions 8.General Fund 10-year Forecast - $1.0M Contribution to CalPERS 9.General Fund 10-year Forecast - $1.0M Contribution to Section 115 Pension Trust Fund 10.Comprehensive Plan to Address Long-Term Pension Obligations City of South San Francisco Printed on 6/27/2019Page 7 of 7 powered by Legistar™ Tax revenues, 71,559,444, 64% All other revenues, 40,141,358, 36% FY 2017-18 General Fund Revenues $111M ATTACHMENT 1 COMPREHENSIVE FINANCIAL PLAN TO MITIGATE ESCALATING PENSION COSTS Expand on Current Multi-Pronged Approach Expand current revenue and tax base Potential surplus of General Fund to CalPERS Stabilization Reserve Lower City’s CalPERS contribution through continued and expanded cost-sharing with labor groups Continue to explore the possibility of a 115 pension trust fund Attachment 10 Police & Fire, $52,698,073 , 55% All other Departments, $43,956,571 , 45% General Fund Expenditures $96M FY 2017-18 ATTACHMENT 2 General Fund Expenditures $96M FY 2017-18 By Type Employee Salaries & Benefits 77% Supplies & Services 16% Interdepartmental Charges 7% ATTACHMENT 3 City of South San Francisco Pension Costs Actual & Projected Status Year Number Fiscal Year Miscellaneous Safety Total Total Covered Payroll Pension Cost as a % of Covered Payroll General Fund Expenditures* Pension Cost as a % of GF Exp Miscellaneous Safety Total Total Covered Payroll Pension Cost as a % of Covered Payroll General Fund Expenditures Pension Cost as a % of GF Exp Additional Annual Cost at 6.0% Actual 1 2015-16 5,726,981 8,535,737 14,262,718$ 40,396,088$ 35.31%86,795,020$ 16.43%5,726,981 8,535,737 14,262,718$ 40,396,088$ 35.31%86,795,020$ 16.43% Actual 2 2016-17 6,300,000 8,570,000 14,870,000$ 48,953,919$ 30.38%92,367,213$ 16.10%6,300,000 8,570,000 14,870,000$ 48,953,919$ 30.38%92,367,213$ 16.10% Unaudited 3 2017-18 5,960,000 8,990,000 14,950,000$ 46,289,694$ 32.30%101,286,947$ 14.76%5,960,000 8,990,000 14,950,000$ 46,289,694$ 32.30%101,286,947$ 14.76% Projected 1 2018-19 6,840,000 10,370,000 17,210,000$ 51,271,335$ 33.57%105,114,037$ 16.37%6,840,000 10,370,000 17,210,000$ 51,271,335$ 33.57%105,114,037$ 16.37% Projected 2 2019-20 7,700,000 11,870,000 19,570,000$ 56,334,034$ 34.74%104,306,737$ 18.76%7,700,000 11,870,000 19,570,000$ 56,334,034$ 34.74%104,306,737$ 18.76% Projected 3 2020-21 8,420,000 12,960,000 21,380,000$ 59,296,625$ 36.06%109,921,035$ 19.45%9,610,000 15,310,000 24,920,000$ 59,296,625$ 42.03%109,921,035$ 22.67%3,540,000$ Projected 4 2021-22 9,040,000 13,720,000 22,760,000$ 61,071,994$ 37.27%114,227,565$ 19.93%10,950,000 16,970,000 27,920,000$ 61,071,994$ 45.72%114,227,565$ 24.44%5,160,000$ Projected 5 2022-23 9,570,000 14,480,000 24,050,000$ 62,901,910$ 38.23%118,307,473$ 20.33%12,240,000 18,690,000 30,930,000$ 62,901,910$ 49.17%118,307,473$ 26.14%6,880,000$ Projected 6 2023-24 9,900,000 15,010,000 24,910,000$ 64,786,723$ 38.45%122,263,512$ 20.37%13,410,000 20,240,000 33,650,000$ 64,786,723$ 51.94%122,263,512$ 27.52%8,740,000$ Projected 7 2024-25 10,260,000 15,710,000 25,970,000$ 66,728,080$ 38.92%126,747,698$ 20.49%14,640,000 22,020,000 36,660,000$ 66,728,080$ 54.94%126,747,698$ 28.92%10,690,000$ Projected 8 2025-26 10,490,000 15,960,000 26,450,000$ 68,727,678$ 38.49%131,022,254$ 20.19%14,990,000 22,380,000 37,370,000$ 68,727,678$ 54.37%131,022,254$ 28.52%10,920,000$ Projected 9 2026-27 10,730,000 16,190,000 26,920,000$ 70,787,264$ 38.03%135,438,008$ 19.88%15,340,000 22,720,000 38,060,000$ 70,787,264$ 53.77%135,438,008$ 28.10%11,140,000$ Projected 10 2027-28 10,970,000 16,450,000 27,420,000$ 72,938,608$ 37.59%140,112,978$ 19.57%15,700,000 23,100,000 38,800,000$ 72,938,608$ 53.20%140,112,978$ 27.69%11,380,000$ *Note: Excludes transfers in, as they are reported as other financing sources on the income statement.68,450,000$ Discount Rate & ROI at 7.0%Discount Rate and ROI at 6.0% ATTACHMENT 4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Discount Rate 8.25 8.25 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.75 7.75 7.75 7.75 7.75 7.75 7.75 7.50 7.50 7.50 7.50 7.50 7.50 7.38 Actual ROI 16.30 15.30 20.10 19.50 12.50 10.50 (7.20)(6.10)3.70 16.60 12.20 11.90 18.80 (2.90)(23.60)11.10 20.70 1.00 12.50 18.40 2.40 0.61 11.20 8.60 (30.00) (25.00) (20.00) (15.00) (10.00) (5.00) 0.00 5.00 10.00 15.00 20.00 25.00 CalPERS ROI vs. Discount Rate 1995 - 2018 ATTACHMENT 5 CalPERS Actuarial Valuation - June 30, 2017 Miscellaneous Plan of the City of South San Francisco CalPERS ID: 7147827092 Page 1 of 2 Schedule of Amortization Bases There is a two-year lag between the valuation date and the start of the contribution fiscal year. •The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2017. •The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: Fiscal Year 2019-20. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year. The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is r olled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for a fiscal year is equal to the Expected Employer C ontribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution for the first fiscal year is determined by the actuarial valuation two yea rs ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency. Reason for Base Date Established Ramp Up/Down 2019-20 Amorti- zation Period Balance 6/30/17 Expected Payment 2017-18 Balance 6/30/18 Expected Payment 2018-19 Balance 6/30/19 Scheduled Payment for 2019-20 FRESH START 06/30/04 No Ramp 17 $21,860,350 $1,707,760 $21,676,642 $1,738,565 $21,447,713 $1,785,781 ASSUMPTION CHANGE 06/30/09 No Ramp 12 $6,677,208 $644,141 $6,494,223 $657,227 $6,284,419 $674,970 SPECIAL (GAIN)/LOSS 06/30/09 No Ramp 22 $2,057,695 $139,349 $2,062,565 $141,570 $2,065,489 $145,433 SPECIAL (GAIN)/LOSS 06/30/10 No Ramp 23 $(627,444) $(41,520) $(629,935) $(42,166) $(631,937) $(43,317) ASSUMPTION CHANGE 06/30/11 No Ramp 14 $3,645,762 $319,727 $3,578,966 $325,925 $3,500,908 $334,747 SPECIAL (GAIN)/LOSS 06/30/11 No Ramp 24 $(120,274) $(7,789) $(120,928) $(7,907) $(121,506) $(8,123) PAYMENT (GAIN)/LOSS 06/30/12 No Ramp 25 $643,047 $40,804 $647,411 $41,407 $651,466 $42,539 (GAIN)/LOSS 06/30/12 No Ramp 25 $2,808,168 $178,191 $2,827,222 $180,822 $2,844,934 $185,767 (GAIN)/LOSS 06/30/13 100% 26 $21,402,499 $864,224 $22,059,176 $1,169,655 $22,447,153 $1,502,083 ASSUMPTION CHANGE 06/30/14 80% 17 $11,743,833 $437,193 $12,142,496 $668,012 $12,331,024 $914,913 (GAIN)/LOSS 06/30/14 80% 27 $(15,672,369) $(428,721) $(16,364,626) $(652,351) $(16,875,476) $(893,656) (GAIN)/LOSS 06/30/15 60% 28 $7,516,537 $105,845 $7,951,871 $214,571 $8,306,169 $330,703 ASSUMPTION CHANGE 06/30/16 40% 19 $3,414,109 $(104,254) $3,769,599 $71,134 $3,969,227 $146,163 (GAIN)/LOSS 06/30/16 40% 29 $10,935,399 $0 $11,728,215 $162,749 $12,409,966 $334,466 ASSUMPTION CHANGE 06/30/17 20% 20 $2,678,180 $(169,450) $3,047,833 $(174,322) $3,449,332 $65,005 (GAIN)/LOSS 06/30/17 20% 30 $(4,354,362) $0 $(4,670,053) $0 $(5,008,632) $(69,423) TOTAL $74,608,336 $3,685,500 $76,200,679 $4,494,891 $77,070,249 $5,448,051 ATTACHMENT 6 CalPERS Actuarial Valuation - June 30, 2017 Safety Plan of the City of South San Francisco CalPERS ID: 7147827092 Page 2 of 2 Schedule of Amortization Bases There is a two-year lag between the valuation date and the start of the contribution fiscal year. •The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2017. •The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: Fiscal Year 2019-20. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year. The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is r olled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for a fiscal year is equal to the Expected Employer C ontribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution for the first fiscal year is determined by the actuarial valuation two yea rs ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency. Reason for Base Date Established Ramp Up/Down 2019-20 Amorti- zation Period Balance 6/30/17 Expected Payment 2017-18 Balance 6/30/18 Expected Payment 2018-19 Balance 6/30/19 Scheduled Payment for 2019-20 FRESH START 06/30/04 No Ramp 17 $36,363,954 $2,840,802 $36,058,362 $2,892,045 $35,677,546 $2,970,587 ASSUMPTION CHANGE 06/30/09 No Ramp 12 $3,936,351 $379,734 $3,828,478 $387,449 $3,704,794 $397,909 SPECIAL (GAIN)/LOSS 06/30/09 No Ramp 22 $2,541,792 $172,133 $2,547,808 $174,876 $2,551,420 $179,647 SPECIAL (GAIN)/LOSS 06/30/10 No Ramp 23 $898,734 $59,473 $902,301 $60,397 $905,170 $62,046 ASSUMPTION CHANGE 06/30/11 No Ramp 14 $4,804,885 $421,380 $4,716,851 $429,548 $4,613,976 $441,175 SPECIAL (GAIN)/LOSS 06/30/11 No Ramp 24 $85,984 $5,568 $86,451 $5,652 $86,866 $5,807 PAYMENT (GAIN)/LOSS 06/30/12 No Ramp 25 $288,556 $18,310 $290,514 $18,581 $292,333 $19,089 (GAIN)/LOSS 06/30/12 No Ramp 25 $1,400,493 $88,867 $1,409,997 $90,180 $1,418,829 $92,646 (GAIN)/LOSS 06/30/13 100% 26 $30,298,399 $1,223,437 $31,228,022 $1,655,819 $31,777,262 $2,126,420 ASSUMPTION CHANGE 06/30/14 80% 17 $14,799,498 $550,948 $15,301,891 $841,824 $15,539,472 $1,152,968 (GAIN)/LOSS 06/30/14 80% 27 $(25,338,304) $(693,135) $(26,457,509) $(1,054,689) $(27,283,426) $(1,444,819) (GAIN)/LOSS 06/30/15 60% 28 $10,281,385 $144,778 $10,876,851 $293,498 $11,361,471 $452,347 ASSUMPTION CHANGE 06/30/16 40% 19 $4,971,646 $(174,030) $5,512,319 $104,019 $5,804,238 $213,735 (GAIN)/LOSS 06/30/16 40% 29 $18,580,025 $0 $19,927,077 $276,522 $21,085,419 $568,282 ASSUMPTION CHANGE 06/30/17 20% 20 $5,621,487 $(231,610) $6,268,904 $(238,269) $6,970,155 $131,357 (GAIN)/LOSS 06/30/17 20% 30 $(6,587,158) $0 $(7,064,727) $0 $(7,576,920) $(105,022) TOTAL $102,947,726 $4,806,655 $105,433,589 $5,937,452 $106,928,605 $7,264,174 2018-19 Adopted 2019-20 Projected 2020-21 Projected 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected Total Revenues 109,053,694 109,407,496 114,666,959 119,493,014 123,279,163 127,382,753 130,056,084 135,192,077 138,350,310 141,677,970 145,014,487 Total Expenditures 107,997,038 106,106,737 111,721,035 116,027,565 120,107,473 124,063,512 128,547,698 132,822,254 137,238,008 141,912,978 145,524,038 $100 $105 $110 $115 $120 $125 $130 $135 $140 $145 $150 Axis Title Millions City of South San Francisco General Fund 10 Year Forecast Most Likely Scenario No additional contributions to CalPERS Total Revenues and Expenditures Page 1 of 2 ATTACHMENT 7 2018-19 Adopted 2019-20 Projected 2020-21 Projected 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected General Reserves 21,213,318 21,521,578 22,573,471 23,538,682 24,295,912 25,116,630 25,651,296 26,678,494 27,310,141 27,975,673 28,642,976 Infrastructure Reserve 12,396,850 15,389,348 17,283,379 19,783,618 3,646,722 3,646,722 3,646,722 3,646,722 3,646,722 2,746,181 1,569,326 CalPERS Stabilization Reserve 5,545,104 5,545,104 5,545,104 5,545,104 7,959,564 10,458,087 11,431,807 12,774,430 13,255,086 13,255,086 13,255,086 Net Pension Liability 189,200,000 188,540,000 188,350,000 188,570,000 183,750,000 177,790,000 170,370,000 161,970,000 152,510,000 141,880,000 129,980,000 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $- $5 $10 $15 $20 $25 $30 $35 Millions Millions City of South San Francisco Most Likely Scenario No Additional Contributions to CalPERS Reserves & Net Pension Liability Page 2 of 2 2018-19 Adopted 2019-20 Projected 2020-21 Projected 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected Total Revenues $109,053,694 $109,407,496 $114,666,959 $119,493,014 $123,279,163 $127,382,753 $130,056,084 $135,192,077 $138,350,310 $141,677,970 $145,014,487 Total Expenditures $107,997,038 $106,201,508 $111,568,995 $115,837,289 $120,828,127 $124,594,297 $128,919,404 $133,143,000 $137,515,980 $142,149,782 $145,710,225 $100 $110 $120 $130 $140 $150 $160 Millions City of South San Francisco General Fund 10-Year Forecast Revenues and Expenditures Most Likely Scenario With $1M in Additional Annual Contributions to CalPERS ATTACHMENT 8 Page 1 of 2 2018-19 Adopted 2019-20 Projected 2020-21 Projected 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected General Reserves 21,213,318 21,521,578 22,573,471 23,538,682 24,295,912 25,116,630 25,651,296 26,678,494 27,310,141 27,975,673 28,642,976 Infrastructure Reserve 12,396,850 15,294,577 17,340,649 20,031,163 5,588,074 7,555,812 8,157,825 9,179,703 9,382,386 8,245,042 6,882,000 CalPERS Stabilization Reserve 5,545,104 ---------- Net Pension Liability 189,200,000 188,540,000 188,350,000 181,330,000 176,000,000 169,600,000 162,410,000 154,280,000 145,120,000 134,840,000 123,330,000 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $- $5 $10 $15 $20 $25 $30 $35 Millions Millions City of South San Francisco 10-Year Forecast Reserves & Net Pension Liability Most Likely Scenario With $1M in Additional Annual Contributions to CalPERS Page 2 of 2 2018-19 Adopted 2019-20 Projected 2020-21 Projected 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected Total Revenues 109,053,694 109,407,496 114,666,959 119,493,014 123,279,163 127,382,753 130,056,084 135,192,077 138,350,310 141,677,970 145,014,487 Total Expenditures 107,997,038 106,106,737 111,721,035 116,027,565 121,107,473 125,063,512 129,547,698 133,822,254 138,238,008 142,912,978 146,524,038 $100 $105 $110 $115 $120 $125 $130 $135 $140 $145 $150 Axis Title Millions City of South San Francisco General Fund 10 Year Forecast Most Likely Scenario $1M to Section 115 Pension Trust Fund Total Revenues and Expenditures Page 1 of 2 ATTACHMENT 9 2018-19 Adopted 2019-20 Projected 2020-21 Projected 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected General Reserves 21,213,318 21,521,578 22,573,471 23,538,682 24,295,912 25,116,630 25,651,296 26,678,494 27,310,141 27,975,673 28,642,976 Infrastructure Reserve 12,396,850 15,389,348 17,283,379 19,783,618 5,061,182 6,559,704 6,533,424 6,876,048 6,356,703 4,456,162 2,279,307 CalPERS Stabilization Reserve 5,545,104 ---------- Net Pension Liability 183,570,000 182,620,000 182,140,000 181,020,000 174,800,000 167,360,000 158,400,000 148,380,000 137,210,000 124,790,000 111,010,000 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $- $5 $10 $15 $20 $25 $30 $35 Millions Millions City of South San Francisco Most Likely Scenario $1M to Section 115 Pension Trust Fund Reserves & Net Pension Liability Page 2 of 2 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-573 Agenda Date:6/26/2019 Version:1 Item #:3a. Resolution approving a comprehensive plan to address long-term pension obligations. WHEREAS, in Fiscal Year 2017-18 the County of San Mateo Civil Grand Jury issued a report, “Soaring City Pension Costs - Time for Hard Choices;” and WHEREAS, the Civil Grand Jury report recommends that cities develop financial plans to address rising pension costs; and WHEREAS, at a special City Council meeting on April 9, 2019, Finance Department staff presented a financial review of the City, including the escalating cost of pensions, and recommended options the City could take to begin addressing escalating pension costs; and WHEREAS, the City of South San Francisco obtains a majority of its funding through taxes which primarily consist of property, sales, and transient occupancy taxes; and WHEREAS, the City’s General Fund consists of $74.7 million of employee salaries and benefits or 77 percent of total fund expenditures in FY 2017-18; and WHEREAS, CalPERS made several significant changes to amortization periods and estimated return on investment; and WHEREAS, the City’s pension contributions are projected to increase by $10.2 million, or 59 percent over the next decade; and WHEREAS, in consideration of the foregoing, staff has prepared and recommends that the City Council adopt a Comprehensive Plan to Address Long-Term Pension Obligations, attached to this resolution as Exhibit A, that continues a multi-pronged approach to address the challenge of escalating pension contributions and liabilities. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby approve a Comprehensive Plan to Address Long-Term Pension Obligations, attached hereto as Exhibit A, which includes a multi-pronged approach to mitigate escalating pension costs while continuing to pay down CalPERS unfunded liability with the effective date June 26, 2019. ***** City of South San Francisco Printed on 6/27/2019Page 1 of 1 powered by Legistar™ Exhibit A City of South San Francisco Comprehensive Plan to Address Long Term Pension Obligations This Comprehensive Plan to Address Long-Term Pension Obligations of the City of South San Francisco was approved by the City Council on June 26, 2019 through resolution ____-2019. The Comprehensive Plan to Address Long-Term Pension Obligations may be amended by the City Council as it deems appropriate. The Comprehensive Plan to Address Long-Term Pension Oblgations is a multi-pronged approach that includes the following strategies, many of which have been implemented by the City Council: • Expand current revenue and tax base • Designate potential surplus of General Fund at year end to CalPERS Stabilization Reserve • Lower City’s CalPERS contribution through continued and expanded cost- sharing with labor groups • Continue to explore the possibility of a 115 pension trust fund City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-502 Agenda Date:6/26/2019 Version:1 Item #:4. Report regarding a resolution approving and authorizing the City Manager to execute a Cooperative Implementation Agreement No.D43CIASF0002 with Caltrans for the Phase II Orange Memorial Park Storm Water Capture Project.(Bianca Liu, Associate Engineer, Robert Dusenbury, Lotus Water) RECOMMENDATION It is recommended that the City Council adopt a resolution approving and authorizing the City Manager to execute Cooperative Implementation Agreement No.D43CIASF0002 with Caltrans for the Phase II Orange Memorial Park Storm Water Capture Project. BACKGROUND/DISCUSSION The City of South San Francisco is a member of the San Mateo Countywide Water Pollution Prevention Program (SMCWPPP),a program of the City/County Association of Governments of San Mateo County (C/CAG).C/CAG is a joint powers agency whose members are the County and the 20 incorporated cities and towns in San Mateo County.SMCWPPP supports C/CAG’s member agencies in complying with requirements contained in the second five-year term of the Municipal Regional Permit (MRP)issued by the San Francisco Bay Regional Water Board.Four important components SMCWPPP is implementing to assist member agencies include green infrastructure planning,stormwater resource planning,mercury/polychlorinated biphenyl (PCB) load reduction, and trash load reductions. The MRP requires San Mateo County permittees to reduce PCBs by 370 grams per year by June 30,2020,with an interim reduction of 60 grams per year required by June 30,2018,with a minimum of 15 grams per year of the total be achieved via green infrastructure.San Mateo County permittees also need to demonstrate they have reduced mercury by six grams per year via green infrastructure by June 30,2020.These reduction rates are required by the MRP as part of the process to achieve compliance with the mercury and the PCBs total maximum daily load (TMDL)for San Francisco Bay.San Mateo County permittees are also required to reduce trash discharges to the Bay from municipal storm drain systems.This requirement began with the issuance of the first MRP in 2009,with a 40%reduction required in 2014.Under the current MRP term,70%reduction is required in 2017, 80% reduction in 2019, and zero impact on receiving waters from trash by 2022. These reductions will largely be accomplished through the implementation of green infrastructure,including stormwater capture and use and/or infiltration to groundwater.SMCWPPP developed a countywide Storm Water Resource Plan (SWRP)that focuses primarily on storm water capture with a multi-benefit approach to overall water resources planning,including water quality.This plan is being followed by local Green Infrastructure Plans (GI Plans)to meet MRP requirements.Development of the GI Plans will be a multi-year effort that includes preparation of a reasonable assurance analysis (RAA)to demonstrate long-term GI Plan implementation by all MRP permittees will reduce PCB loads by three kilograms per year by 2040. Effective on April 26,2017,the California Department of Transportation (Caltrans)agreed to fund $9,500,000 to the City’s Orange Memorial Storm Water Capture Project (Original Project)through Cooperative Implementation Agreement No.D43CIASF0001.The Original Project is currently at 60%design.The design includes a drop inlet diversion structure to re-direct all dry-weather urban runoff and up to approximately 15 cubic feet per second of the first flush of wet-weather runoff from the Colma Creek channel through pre-City of South San Francisco Printed on 6/27/2019Page 1 of 3 powered by Legistar™ File #:19-502 Agenda Date:6/26/2019 Version:1 Item #:4. cubic feet per second of the first flush of wet-weather runoff from the Colma Creek channel through pre- treatment structures to remove trash,debris,and sediment before conveying the water into a subsurface multi- chambered storage reservoir with an overall storage capacity of approximately 1,250,000 gallons.A portion (approximately 250,000)of the storage functions as a cistern holding water that will receive water quality polishing and disinfection for eventual non-potable irrigation use in and around the park,and the remainder (approximately 1,000,000)functions as an infiltration chamber.When storage capacity is exceeded,diverted water that has been screened for full trash capture and has been through pretreatment for removal of floatables and settleables overflows back into the channel. The RAA model estimates that the current 60%design will capture and treat approximately eight (8)percent of the average annual drainage volume from 6,570 acres of tributary watershed areas in the City of South San Francisco,Town of Colma,the City of Daly City,a portion of unincorporated San Mateo County,and two small portions of Pacifica and San Bruno.Caltrans right-of-way constitutes 234 acres of the tributary area,including 7.08 miles of State Highway 82 (El Camino Real),8.43 miles of Interstate 280,and 3.34 miles of State Highway 35 (Skyline Blvd).The Original Project has multiple benefits in addition to water quality improvements,including flood reduction and beneficial use of treated water for irrigation and groundwater recharge. The City now seeks to expand the Original Project with the proposed Phase II Orange Memorial Park Storm Water Capture Project (Phase II Project).The Phase II Project will allow the City to increase the scale of the Original Project and effectively double the water quality treatment provided in terms of diversion,pretreatment, and infiltration capacity.The Phase II Project will include a water capture facility at this site with 30 cubic feet per second diversion and over 2 million gallons of storage,which will capture and treat approximately sixteen (16) percent of the average annual drainage volume in Colma Creek at the Project site, per the RAA model. The Phase II Project involves additional engineering and geotechnical assessment for the expanded footprint, detailed design,and construction of a larger capture and treatment system,including a larger instream drop inlet, pretreatment structures, conveyance pipes, flow splitter, and infiltration gallery. The City of South San Francisco,as lead agency,will enter into a second Cooperative Implementation Agreement,No.D43CIASF0002,with Caltrans for a total amount of $6 million to continue funding for these projects. FISCAL IMPACT The Project construction costs will be fully funded through the Cooperative Implementation Agreement No. D43CIASF0002 with no matching funds required from the City.Caltrans has set aside funds over the next four fiscal years to pay for the total project costs (estimated at $6 million),contingent on City Council authorization. Once funds have been allocated for a fiscal year,the City will have three years to spend the funds.This allocation schedule will work with the City’s current schedule to begin construction spring of 2020. RELATIONSHIP TO STRATEGIC PLAN Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by providing green infrastructure and improving water quality. CONCLUSION Staff recommends that the City Council adopt a resolution approving the Cooperative Implementation City of South San Francisco Printed on 6/27/2019Page 2 of 3 powered by Legistar™ File #:19-502 Agenda Date:6/26/2019 Version:1 Item #:4. Agreement No. D43CIASF0002 between the City and Caltrans, and authorizing the City Manager to execute the agreement. Attachment: Exhibit A - Draft Cooperative Implementation Agreement No. D43CIASF0002 City of South San Francisco Printed on 6/27/2019Page 3 of 3 powered by Legistar™ City of South San Francisco CIA No. D43CIASF0002 Page 1 of 19 CALTRANS CIA AGREEMENT rev 6/2018 COOPERATIVE IMPLEMENTATION AGREEMENT THIS AGREEMENT, ENTERED INTO EFFECTIVE ON June 12, 2019, is between the State of California acting by and through its Department of Transportation, referred to herein as CALTRANS and the CITY OF SOUTH SAN FRANCISCO, a body politic and a municipal corporation (chartered City) of the State of California, referred to herein as “AGENCY”. CALTRANS and AGENCY are together referred to as PARTIES. RECITALS 1. CALTRANS and AGENCY, pursuant to California Streets and Highways Code (SHC) Sections 114 and 130, are authorized to enter into a Cooperative Agreement for improvements to the State Highway System (SHS) as a watershed stakeholder within AGENCY’s jurisdiction. 2. As per Attachment IV of the Caltrans National Pollutant Discharge Elimination Permit Order 2012-0011-DQW (NPDES Permit), Section I.A, CALTRANS and AGENCY are to collaboratively implement the NPDES Permit requirements as they have been identified as stakeholders in the Total Maximum Daily Load (TMDL) for Orange Park Stormwater Treatment Facility (hereinafter referred to as “PROJECT”). CALTRANS has agreed to contribute an amount not to exceed Six Million Dollars ($6,000,000) to AGENCY for AGENCY to construct the PROJECT, within the regional area under the jurisdiction of AGENCY to comply with the TMDL. The NPDES Permit (including Attachment IV) is located at: www.waterboards.ca.gov/water_issues/programs/stormwater/caltrans.shtm 3. AGENCY has agreed to implement the PROJECT subject to the terms and conditions of this Agreement including all documents attached hereto that are incorporated herein and hereby made a part of this Agreement (collectively referred to as the “AGREEMENT”). 4. AGENCY will be responsible for all management, maintenance and operations, including costs of the constructed PROJECT. 5. CALTRANS will be credited with one (1) Compliance Unit (CU) for each Eighty Eight Thousand Dollars ($88,000) paid to AGENCY. A compliance unit is defined as one (1) acre of CALTRANS’s Right-of-Way (ROW) from which the runoff is retained, treated, and/or otherwise controlled prior to discharge to the relevant reach. The financial equivalent as submitted by CALTRANS is One Hundred Seventy Six Thousand Dollars ($176,000) per CU. The State Water Resources Control Board (“State Water Board”) is encouraging collaborative efforts and Cooperative Implementation Agreements, and uses a 50% discount for CU in dollars contributed to the Cooperative Implementation. This sets the CU equivalent at Eighty Eight Thousand Dollars ($88,000). DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 2 of 19 CALTRANS CIA AGREEMENT rev 6/2018 6. Cooperative Implementation has the following advantages: Cooperative Implementation (i) allows for retrofit projects off the ROW, at locations that may otherwise have space, access, or safety limitations within the ROW; (ii) provides for the involvement of local watershed partners who have an interest and expertise in the best way to protect, manage, and enhance water quality in the watershed; (iii) allows for implementation of Best Management Practices (BMPs) and other creative solutions not typically available to CALTRANS; (iv) allows for larger watershed-scale projects; and (v) leverages resources from other entities. 7. All services performed by AGENCY pursuant to this AGREEMENT are intended to be performed in accordance with all applicable Federal, State and AGENCY laws, ordinances, and regulations, and with CALTRANS published manuals, policies, and procedures. In case of conflict between Federal, State and AGENCY laws, ordinances, or regulations, the order of precedence applicability of these laws shall be Federal, State and then AGENCY laws and regulations, respectively. 8. CALTRANS share of PROJECT funding is as follows: FUND TITLE FUND SOURCE DOLLAR AMOUNT SHA State of California $6,000,000 DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 3 of 19 CALTRANS CIA AGREEMENT rev 6/2018 SECTION I All sections of this AGREEMENT including the recitals are enforceable. 1. AGENCY has agreed to implement PROJECT in accordance with Attachment II-SCOPE SUMMARY. The SCOPE SUMMARY that is attached to and made a part of this AGREEMENT defines in detail the PROJECT’s scope of work, description, timeline, location and budget. 2. AGENCY will be responsible for all management, maintenance and operations, including costs of the constructed PROJECT. 3. AGENCY will develop and construct the PROJECT in accordance with the applicable laws, policies, practices, procedures and standards. This applies to all procurements, including land acquisitions, licenses and permits. 4. AGENCY shall prepare initial engineering and geotechnical assessments, and detailed design as well as acquire environmental reviews and ROW needed for the PROJECT. This work is the AGENCY equivalent to CALTRANS process of Project Initiation Document (PID), Project Approval & Environmental Document (PA & ED) and Plans, Specification and Estimate (PS&E). AGENCY will pay for coordinate, prepare, obtain, implement, renew, and amend all any permits needed to complete the PROJECT. AGENCY will prepare CEQA environmental documentation to meet CEQA requirements. 5. AGENCY will advertise, open bids, award, and approve the construction contract in accordance with the California Public Contract Code and the California Labor Code and will be responsible for the administration, acceptance, and final documentation of the construction contract. 6. AGENCY shall be reimbursed for actual costs not exceeding the amount provided in the AGREEMENT herein. 7. CALTRANS shall have the right to inspect the work to be performed hereunder at any time during its progress and to make final inspection upon completion thereof. Failure of CALTRANS to object within 30 days after final inspection shall indicate satisfactory performance of the AGREEMENT by AGENCY. 8. The total amount reimbursable to AGENCY pursuant to this AGREEMENT by CALTRANS shall not exceed $6,000,000 (“Contract Sum”). Costs incurred by AGENCY for PROJECT work under this AGREEMENT in excess of the Contract Sum will be borne by AGENCY. It is understood and agreed that this AGREEMENT fund limit is an estimate and that CALTRANS will only reimburse the cost of services actually rendered as authorized by the CALTRANS Contract Manager or designee at or below the fund limitation amount set forth in this AGREEMENT and in accordance with the Budget included in Attachment II. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 4 of 19 CALTRANS CIA AGREEMENT rev 6/2018 9. All administrative draft and administrative final reports, studies, materials, and documentation relied upon, produced, created or utilized for PROJECT will be held in confidence to the extent permitted by law, and where applicable, the provisions of California Government Code section 6254.5(e) shall govern the disclosure of such documents in the event said documents are shared between the Parties. Parties will not distribute, release, or share said documents with anyone without prior written consent of the party authorized to release said documents except: (i) to employees, agents, and consultants who require access to complete the work described within this AGREEMENT; or (ii) where release is required or authorized by law. 10. HM-1 is defined as hazardous material (including but not limited to hazardous waste) that requires removal and disposal pursuant to Federal or State law, whether it is disturbed by PROJECT or not. HM-2 is defined as hazardous material (including but not limited to hazardous waste) that may require removal and disposal pursuant to Federal or State law, only if disturbed by PROJECT. 11. CALTRANS, independent of PROJECT costs, is responsible for any HM-1 found within existing CALTRANS ROW. CALTRANS will undertake HM-1 management activities with minimum impact to PROJECT schedule and will pay all costs associated with HM-1 management activities. 12. CALTRANS has no responsibility for management activities or costs associated with HM-1 found outside the CALTRANS existing ROW. AGENCY, independent of PROJECT costs, is responsible for any HM-1 found within PROJECT limits outside existing CALTRANS ROW, and will pay, or cause to be paid, all costs associated with HM-1 management activities. AGENCY will undertake, or cause to be undertaken, HM-1 management activities with minimum impact to PROJECT schedule. 13. If HM-2 is found within the limits of PROJECT, the AGENCY responsible for advertisement, award, and administration (AAA) of the PROJECT construction contract will be responsible for HM-2 management activities. Any management activity cost associated with HM-2 is a PROJECT construction cost. 14. This AGREEMENT may only be amended or modified by mutual written agreement of the parties. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 5 of 19 CALTRANS CIA AGREEMENT rev 6/2018 SECTION II- GENERAL PROVISIONS 1. TERMINATION A. This AGREEMENT may be terminated by the PARTIES upon mutual written agreement. In the event of a termination CALTRANS will reimburse AGENCY all allowable, authorized, and non-cancelable obligations and costs incurred by AGENCY prior to the termination. B. CALTRANS reserves the right to terminate this AGREEMENT before the AGENCY awards the construction contract or begins to do project work. CALTRANS will reimburse AGENCY reasonable, allowable, authorized and non-cancelled costs up to the date of termination that are attributable to the PROJECT. C. This AGREEMENT will terminate upon completion of PROJECT when all parties have met all scope, cost, and schedule commitments included in this AGREEMENT and have signed a closure statement, which is a document signed by the parties that verifies the completion of PROJECT, except that all indemnification, document retention, audit, claims, environmental commitment, pending legal challenge, hazardous material, operation, maintenance and ownership provisions will remain in effect until terminated or modified in writing by mutual agreement. D. AGENCY has sixty (60) days after the effective date of AGREEMENT termination, or such other time agreed upon in writing by PARTIES, to submit invoices to CALTRANS to make final allowable payments for Project costs in accordance with the terms of this AGREEMENT. Failure to submit invoices within this period may result in a waiver by AGENCY of its right to reimbursement of expended costs. 2. BUDGET CONTINGENCY CLAUSE All obligations of CALTRANS under the terms of this AGREEMENT are subject to the appropriation of resources by the Legislature, and the State Budget Act authority. It is mutually agreed that if the State Legislature does not appropriate sufficient funds for the program, this AGREEMENT shall be amended if possible to reflect any reduction in funds, but nothing herein obligates the PARTIES to provide additional funding or proceed if sufficient funding is unavailable. 3. ALLOWABLE COST, PAYMENTS AND INVOICING A. The method of payment for this AGREEMENT will be based on actual allowable costs. CALTRANS will reimburse AGENCY for expended actual allowable direct costs and indirect costs, including, but not limited to labor costs, employee benefits, travel (overhead is reimbursable only if the Agency has an approved indirect costs allocation plan) and contracted consultant services costs incurred by AGENCY in performance of the PROJECT work, not to exceed the cost of the Contract Sum. B. Reimbursement of AGENCY expenditures will be authorized only for those allowable costs actually incurred by AGENCY in the performance of the PROJECT WORK. AGENCY must not only have incurred the expenditures on or after the Effective Date of DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 6 of 19 CALTRANS CIA AGREEMENT rev 6/2018 this AGREEMENT and before the Termination Date, but must have also paid for those costs to claim any reimbursement. C. PARTIES will agree upon CALTRANS’ annual reimbursement of the PROJECT costs, throughout its duration. Total reimbursement will not exceed the amount stated in Recital 2. The encumbered funds are to be expended and invoiced by AGENCY by May 1 of the third Fiscal Year from the fiscal year they were encumbered. Any funds encumbered, but not expended by the end of the third Fiscal Year, will not be reimbursed to AGENCY by CALTRANS. D. Travel, per diem, and third-party contract reimbursements are a PROJECT costs only after those hired by AGENCY to participate in PROJECT incur and pay those costs. Payments for travel and per diem will not exceed the rates paid rank and file state employees under current California Department of Human Resources rules current at the effective date of this AGREEMENT. E. CALTRANS will reimburse AGENCY for all allowable PROJECT costs no more frequently and no later than monthly in arrears and as promptly as CALTRANS fiscal procedures permit upon receipt of itemized signed invoices. Invoices shall reference this AGREEMENT Number and shall be signed and submitted to the Contract Manager at the following address: California Department of Transportation Division of Environmental Analysis – Stormwater Program Attention: Tom Rutsch, MS 27 P.O. Box 942874 Sacramento, CA 94274-0001 F. Invoices shall include the following information: 1) Invoice Cover Sheet The invoice cover sheet summarizes the previous, current and total amounts billed for the AGREEMENT. Details included on the cover sheet are: a. “INVOICE” near top of page b. Invoice Date c. Contract Number d. Invoice Number e. Billing period (performance period), specified with beginning and ending dates. Best towards top of page. f. Brief description of the work performed g. Summary of total dollar amount billed to date i. Previous month invoice balance ii. Amount billed this month iii. Total amount billed including current invoice amount h. Total amount due i. Summary of charges i. AGENCY (municipality) Labor Costs ii. Sub-Vendor Labor Costs (consultant) DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 7 of 19 CALTRANS CIA AGREEMENT rev 6/2018 iii. Sub-Vendor Direct Costs (materials, equipment, miscellaneous itemized costs) iv. Other Direct Costs j. Discounts (if applicable) k. Remittance information including name and address l. AGENCY Contract Manager’s name, address and phone number m. AGENCY Contract Manager’s signature and signature block n. CALTRANS Contract Manager’s name and address o. CALTRANS Contract Manager’s signature block (optional) 2) Invoice and Supports All invoice charges must match the rates on the contract cost proposal and personnel request. (Changes in billing rates must be approved BEFORE billing.) The CALTRANS’ Contract Manager must be provided invoices or other documentation with sufficient detail to verify the charges are allowable under the AGREEMENT with sufficient support to allow them to verify charges. Supporting documentation, such as receipts, is required for all costs included on the invoice that are not for hourly or sub- contract labor. AGENCY labor charges need to show person’s name, hours worked, billing rate and brief description of work performed. Supporting documents (timesheet or payroll report) need to be provided. These documents need to include: a. Name (first and last) b. Hours charged c. Brief description -- identify the work is for the project funded by the Cooperative Implementation Agreement d. Month, day and year of the charges e. Worker and supervisor’s signatures (Exceptions can be made for electronic timesheets.) All overtime must be approved in advance by the CALTRANS Contract Manager Direct costs (such as material costs, vehicle rental) are reimbursable. These costs need to be verified, therefore, a copy of the receipt, paid purchase order or other documentation that shows the items and cost needs to be attached to the invoice. AGENCY personnel travel costs may be reimbursed according to the Consultant and Contractor travel guidelines located on the CALTRANS’ website at: www.dot.ca.gov/hq/asc/travel/ch12/1consultant.htm. The Travel Expense Claim (TEC) form is available at: www.dot.ca.gov/hq/asc/travel/ch5/1tec.htm. Subcontractor costs are reimbursed after providing a copy of the paid invoice. This invoice needs to show that the AGENCY contract manager reviewed and approved the payment. CALTRANS requires its vendors to submit proof of costs incurred, such as timesheet or payroll records, travel reimbursement form (that includes the reason and dates for travel) with receipts, receipts for materials, lab services or other items) and CALTRANS assumes the AGENCY has similar requirements that are documented. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 8 of 19 CALTRANS CIA AGREEMENT rev 6/2018 3) Progress Reports Each invoice needs to be accompanied by a Progress Report for the billing period. This report includes: a. Work performed during the billing period (can be in a bullet format) b. Contract progress estimate -- percentage of work completed (not dollar based) c. Work anticipated during the next billing cycle (can be in a bullet format) d. Total amount spent during the billing period (AGENCY personnel, AGENCY direct costs, subcontractor costs and total) e. Total amount spent to date (AGENCY, subcontractor, total) f. Percentage of Cooperative Implementation Agreement (CIA) funds used to date. [Total (AGENCY and subcontractor)/CIA not to exceed amount)] 4. COST PRINCIPLES A. If PARTIES fund any part of PROJECT with state or federal funds, each PARTY will comply, and will ensure that any sub-recipient, contractor or subcontract hired to participate in PROJECT will comply with the federal cost principles and administrative requirements of 2 CFR, Part 200. These principles and requirements apply to all funding types included in this AGREEMENT. B. Any Project costs for which AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, and/or Title 48, Chapter 1, Part 31, are subject to repayment by AGENCY to CALTRANS. Should AGENCY fail to reimburse moneys due CALTRANS within thirty (30) days of discovery or demand, or within such other period as may be agreed in writing between the parties hereto, CALTRANS is authorized to intercept and withhold future payments due AGENCY from CALTRANS. C. PARTIES will maintain and make available to each other all PROJECT related documents, including financial data, during the term of this AGREEMENT. PARTIES will retain all PROJECT-related records for three (3) years after the final payment voucher. 5. INDEMNIFICATION Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by AGENCY, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon AGENCY under this AGREEMENT. It is understood and agreed that AGENCY, to the extent permitted by law, will defend, indemnify, and save harmless CALTRANS and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by AGENCY, its contractors, sub-contractors, and/or its agents under this AGREEMENT. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 9 of 19 CALTRANS CIA AGREEMENT rev 6/2018 6. RETENTION OF RECORDS/AUDITS A. AGENCY, its contractors, subcontractors and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred PROJECT costs. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), shall enable the determination of incurred costs at interim points of completion, and shall provide support for reimbursement payment vouchers or invoices. All books, documents, papers, accounting records and other supporting papers and evidence of performance under this AGREEMENT of AGENCY, its contractors, subcontractors and sub-recipients connected with PROJECT performance under this AGREEMENT shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CALTRANS, the California State Auditor, and auditors representing the federal government during business hours with appropriate notice. Copies thereof will be furnished by AGENCY, its contractors, its subcontractors and sub-recipients upon receipt of any request made by CALTRANS or its agents. In conducting an audit of the costs under this AGREEMENT, CALTRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY’s external and internal auditors may be relied upon and used by CALTRANS when planning and conducting additional audits. B. AGENCY, its sub-recipients, contractors, and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other AGENCY of the State of California designated by CALTRANS, for the purpose of any investigation to ascertain compliance with this AGREEMENT. C. This AGREEMENT shall be subject to a pre-award audit prior to execution of the AGREEMENT to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable and allocable costs. D. CALTRANS, the state auditor, and the Federal Government, (if the PROJECT utilizes federal funds), will have access to all PROJECT-related records held by AGENCY or by any party hired by AGENCY to participate in PROJECT. E. The examination of any records will take place in the offices and locations where said records are generated and/or stored and will be accomplished during reasonable hours of operation. F. Upon completion of the final audit, AGENCY has thirty (30) calendar days to refund or invoice as necessary in order to satisfy the obligation of the audit. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 10 of 19 CALTRANS CIA AGREEMENT rev 6/2018 7. DISPUTES A. PARTIES will first attempt to resolve AGREEMENT disputes at the PROJECT team level. If they cannot resolve the dispute themselves, the CALTRANS Chief Environmental Engineer and the executive officer of AGENCY will attempt to negotiate a resolution. B. If PARTIES do not reach a resolution, AGENCY’ legal counsel will initiate mediation. PARTIES agree to participate in mediation in good faith and will share equally in its costs. C. Neither the dispute nor the mediation process relieves PARTIES from full and timely performance of PROJECT in accordance with the terms of this AGREEMENT. However, if either PARTY stops fulfilling PROJECT, the other PARTY may seek equitable relief to ensure that PROJECT continue. D. Except for equitable relief, no PARTY may file a civil complaint until after mediation, or 45 calendar days after filing the written mediation request, whichever occurs first. E. PARTIES will file any civil complaints in the Superior Court of the county in which the CALTRANS district office signatory to this AGREEMENT resides or in the Superior Court of the county in which the PROJECT is physically located. The prevailing PARTY will be entitled to an award of all costs, fees, and expenses, including reasonable attorney fees as a result of litigating a dispute under this AGREEMENT or to enforce the provisions of this article including equitable relief. F. Additional Dispute Remedies. PARTIES maintain the ability to unanimously pursue alternative or additional dispute remedies if a previously selected remedy does not achieve resolution. 8. RELATIONSHIP OF PARTIES It is expressly understood that this AGREEMENT is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 11 of 19 CALTRANS CIA AGREEMENT rev 6/2018 9. NOTIFICATION OF PARTIES A. AGENCY Mike Futrell, City Manager, [email protected] and (650) 877-8500. B. CALTRANS’s Tom Rusch, Watershed Manager – North, [email protected] and (916) 653-7396. C. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and received by the parties at their respective addresses: City of South San Francisco City Manager 400 Grand Avenue South San Francisco, CA 94080 California Department of Transportation Division of Environmental Analysis - MS 27 Attention: Tom Rutsch 1120 N St. Sacramento, CA 95814 Mail to: P.O. Box 942874, Sacramento, CA 94274-0001 DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 12 of 19 CALTRANS CIA AGREEMENT rev 6/2018 SECTION III ATTACHMENTS The following attachments are incorporated into and are made a part of this AGREEMENT by this reference and attachment. I. AGENCY Resolution, Certification of Approval, order, motion, ordinance or other similar document from the local governing body authorizing execution of the AGREEMENT II. Scope of Work, Description, Timeline, Location and Budget SECTION IV- SIGNATURES Signatories may execute this AGREEMENT through individual signature pages provided that each signature is an original. This AGREEMENT is not fully executed until all original signatures are attached. PARTIES are empowered by California Streets and Highways Code (SHC) sections 114 and 130 to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and covenant to have followed all the necessary legal requirements to validly execute this AGREEMENT. STATE OF CALIFORNIA AGENCY DEPARTMENT OF TRANSPORTATION Signature: Signature: Print Name: Tom Rutsch Print Name: Mike Futrell Title: Watershed Manager Title: City Manager Date: Date: DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 13 of 19 CALTRANS CIA AGREEMENT rev 6/2018 ATTACHMENT I – CITY COUNCIL RESOLUTION DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 14 of 19 CALTRANS CIA AGREEMENT rev 6/2018 DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 15 of 19 CALTRANS CIA AGREEMENT rev 6/2018 ATTACHMENT II – SCOPE SUMMARY South San Francisco Water Capture Project The City of South San Francisco is a member of the San Mateo Countywide Water Pollution Prevention Program (SMCWPPP), a program of the City/County Association of Governments of San Mateo County (C/CAG). C/CAG is a joint powers agency whose members are the County and the 20 incorporated cities and towns in San Mateo County. SMCWPPP supports C/CAG’s member agencies in complying with requirements contained in the second five-year term of the Municipal Regional Permit (MRP) issued by the San Francisco Bay Regional Water Board. Four important components SMCWPPP is implementing to assist member agencies include green infrastructure planning, stormwater resource planning, mercury/PCBs load reduction, and trash load reductions. The MRP requires San Mateo County permittees to reduce PCBs by 370 grams per year by June 30, 2020, with an interim reduction of 60 grams per year required by June 30, 2018, with a minimum of 15 grams per year of the total be achieved via green infrastructure. San Mateo County permittees also need to demonstrate they have reduced mercury by six grams per year via green infrastructure by June 30, 2020. These reduction rates are required by the MRP as part of the process to achieve compliance with the mercury and the PCBs TMDLs for San Francisco Bay. San Mateo County permittees are also required to reduce trash discharges to the Bay from municipal storm drain systems. This requirement began with the issuance of the first MRP in 2009, with a 40% reduction required in 2014. Under the current MRP term, 70% reduction is required in 2017, 80% reduction in 2019, and zero impact on receiving waters from trash by 2022. These reductions will largely be accomplished through the implementation of green infrastructure, including stormwater capture and use and/or infiltration to groundwater. SMCWPPP developed a countywide Storm Water Resource Plan (SWRP) that focuses primarily on storm water capture with a multi-benefit approach to overall water resources planning, including water quality. This plan is being followed by local Green Infrastructure Plans (GI Plans) to meet MRP requirements. Development of the GI Plans will be a multi-year effort that includes preparation of a reasonable assurance analysis (RAA) to demonstrate long-term GI Plan implementation by all MRP permittees will reduce PCB loads by three kilograms per year by 2040. Effective on April 26, 2017, the California Department of Transportation (Caltrans) agreed to fund $9,500,000 to the Orange Memorial Storm Water Capture Project (Original Project) through Cooperative Implementation Agreement No. D43CIASF0001. The Original Project is currently at 60% design. The design includes a drop inlet diversion structure to re-direct all dry-weather urban runoff and up to approximately 15 cubic feet per second of the first flush of wet-weather runoff from the Colma Creek channel through pre-treatment structures to remove trash, debris, and sediment before conveying the water into a subsurface multi-chambered storage reservoir with an overall storage capacity of approximately 1,250,000 gallons. A portion (approximately 250,000) of the storage functions as a cistern holding water that will receive water quality polishing and DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 16 of 19 CALTRANS CIA AGREEMENT rev 6/2018 disinfection for eventual non-potable irrigation use in and around the park, and the remainder (approximately 1,000,000) functions as an infiltration chamber. When storage capacity is exceeded, diverted water that has been screened for full trash capture and has been through pretreatment for removal of floatables and settleables overflows back into the channel. The RAA model estimates that the current 60% design will capture and treat approximately eight (8) percent of the average annual drainage volume from 6,570 acres of tributary watershed areas in the City of South San Francisco, Town of Colma, the City of Daly City, a portion of unincorporated San Mateo County, and two small portions of Pacifica and San Bruno. Figure 1 shows the tributary watershed areas draining to the Colma Creek Flood Control Channel as it passes through Orange Memorial Park. Caltrans right-of-way constitutes 234 acres of the tributary area, including 7.08 miles of State Highway 82 (El Camino Real), 8.43 miles of Interstate 280, and 3.34 miles of State Highway 35 (Skyline Blvd). The Project has multiple benefits in addition to water quality improvements, including flood reduction and beneficial use of treated water for irrigation and groundwater recharge. Figure 1. Water Capture Project Drainage Area by Jurisdiction DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 17 of 19 CALTRANS CIA AGREEMENT rev 6/2018 The proposed Phase II Orange Memorial Park Storm Water Capture Project (Proposed Project) will allow the Agency to increase the scale of the Original Project and effectively double the water quality treatment provided in terms of diversion, pretreatment, and infiltration capacity. The larger scale Water Capture Facility is shown schematically in Figure 2. The Proposed Project will include a water capture facility at this site with 30 cubic feet per second diversion and over 2 million gallons of storage, which will capture and treat approximately sixteen (16) percent of the average annual drainage volume in Colma Creek at the Project site, per the RAA model. Increasing the scale of the Water Capture Facility will reduce the transport of Mercury, PCB’s, trash and other pollutants downstream to San Francisco Bay by removing these pollutants from the captured discharges. As part of the Proposed Project, the RAA model was used to calculate in- channel flows at our project site for the respective design storms (85th percentile for general water quality and 1-yr, 1-hr for trash capture), then the ratio of [flow treated]:[total flow] for each was applied to the tributary watershed area to back out the “equivalent areas treated”. The upscaled facility is estimated to provide general water quality treatment to wet-weather discharges from an equivalent watershed area of approximately 1,150 acres as well as trash capture to an equivalent 700 acres. Figure 2. Expanded Water Capture Project Layout DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 18 of 19 CALTRANS CIA AGREEMENT rev 6/2018 The Proposed Project involves additional engineering and geotechnical assessment for the expanded footprint, detailed design, and construction of a larger capture and treatment system, including a larger instream drop inlet, pretreatment structures, conveyance pipes, flow splitter, and infiltration gallery. The City of South San Francisco, as lead agency, will enter into a Cooperative Implementation Agreement with Caltrans and consultants will be hired to manage the project, conduct engineering and geotechnical investigations, and assist with environmental clearance, permitting, design, and construction management. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 19 of 19 CALTRANS CIA AGREEMENT rev 6/2018 Cost Estimate A preliminary cost estimate has been prepared for the Orange Memorial Park Water Capture Project to increase the scale of the Original Project up to the Proposed Project. The cost estimate considers the additional costs associated with design, construction, construction administration and inspections, and 25% contingency. These preliminary costs may be adjusted with the development of the Project.  Project Management $88,000  Project Approval & Environmental Documents $105,000  Plans, Specifications, & Estimate $235,000  Construction Administration $424,000  Construction $4,100,000  Contingency $1,025,000 $5,977,000 Estimated Timeline These dates are subject to refinement as the project proceeds. The complete construction dates will be dependent on receipt of the balance of the project funding from Caltrans. Construction Drawings – 90% Milestone 08/23/19 Construction Drawings – 100% Complete 10/11/19 Advertise for Bids 10/25/19 Award Construction Contract 12/15/19 Commence Construction (17 months) 03/01/20 *Deadline to Bill Caltrans for FY19-20 Funding Allocation 04/30/21 Complete Construction 08/09/21 *Deadline to Bill Caltrans for FY20-21 funding allocation 04/30/22 *Deadline to Bill Caltrans for FY21-22 funding allocation 04/30/23 *City may request adjustments to the schedule line items except for the deadlines to expend Caltrans funding allocations. DRAFT Orange Memorial Park Storm Water Capture Project South San Francisco City Council Meeting June 26, 2019 Project Update Selected Alternative: Subsurface Cistern under Ballfields 60% Design – Water Capture System Layout 60% Design – Water Capture System Performance Hydrology Total Annual Runoff 8% Diverted 92% Bypass 96% Flows Reach the Bay Annual Benefits (RAA Model) Equivalent Areas treated •351 acres for general water quality (85th percentile storm) •133 acres for trash capture (1-yr, 1-hr storm) Pollutant Load Reduction •56 tons of sediment removed •5 grams of PCBs removed •16 grams of Hg removed Beneficial Uses •120 ac-ft/yr groundwater recharge •40 ac-ft/yr potable offset •160 ac-ft/yr treated and returned 4% Treated 3% Infiltrated 1% Irrigation Water Quality Benefits Schedule – Design, Bid, and Construction New CIA with Caltrans Potential Expanded Project Footprint Current Tank Layout Expanded Tank Layout Potential Expanded Project Footprint Upsized Elements: Instream diversion Grit chamber Diversion pipe Flow splitter Overflow pipe Infiltration gallery Cost and Performance Comparison Current Project Expanded Project •Cost = $9.5M •$1.0M for field renovation •Equivalent Area Treated = 590 ac •320 ac-ft diverted & treated •120 ac-ft infiltrated •40 ac-ft used for irrigation •160 ac-ft treated & returned •Cost = $15.5M •$1.7M for field renovation •Equivalent Area Treated = 1,150 ac •640 ac-ft diverted & treated •240 ac-ft infiltrated •40 ac-ft used for irrigation •360 ac-ft treated & returned Cost and Performance Comparison Current Project Expanded Project Total Annual Runoff 16% Diverted 84% Bypass 93% Flows Reach the Bay 9% Treated 6% Infiltrated 1% Irrigation Total Annual Runoff 8% Diverted 92% Bypass 96% Flows Reach the Bay 4% Treated 3% Infiltrated 1% Irrigation Thankyou! Extra Slides Tributary Watershed Subsurface Storage Reservoir – Cross Section Water Treatment System Instream Diversion from Colma Creek City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:19-501 Agenda Date:6/26/2019 Version:1 Item #:4a. Resolution approving and authorizing the City Manager to execute a Cooperative Implementation Agreement No. D43CIASF0002 with Caltrans for the Phase II Orange Memorial Park Storm Water Capture Project. WHEREAS, The City of South San Francisco (‘the City”) is a member of the San Mateo Countywide Water Pollution Prevention Program (SMCWPPP), a program of the City/County Association of Governments of San Mateo County (C/CAG); and WHEREAS, pursuant to a Municipal Regional Permit (MRP) issued by the San Francisco Bay Regional Water Board, SMCWPPP member agencies, including the City, are required to address stormwater quality including polychlorinated biphenyls (PCBs), mercury, and trash reduction; and WHEREAS, the San Mateo Countywide Storm Water Resource Plan prepared by C/CAG identified the Orange Memorial Park Storm Water Capture Project (Original Project) as a potential project with regional benefits that will assist with MRP mandated reductions in PCBs, mercury, and trash; and WHEREAS, effective on April 26, 2017, the California Department of Transportation (Caltrans) agreed to fund $9,500,000 to the Original Project through Cooperative Implementation Agreement No. D43CIASF0001; and WHEREAS, the City is now proposing to expand the Original Project with the Phase II Orange Memorial Park Storm Water Capture Project (“Phase II Project”), which will allow the City to increase the scale of the Water Capture Facility and effectively double the water quality treatment provided in terms of diversion, pretreatment, and infiltration capacity; and WHEREAS, Caltrans is offering to fund the Phase II Project through Cooperative Implementation Agreement No. D43CIASF0002 (Exhibit A). NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco that the City Council hereby approves the Cooperative Implementation Agreement No. D43CIASF0002 between the City of South San Francisco and State of California Department of Transportation. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the Cooperative Implementation Agreement No. D43CIASF0002, subject to approval as to form by the City Attorney. City of South San Francisco Printed on 6/27/2019Page 1 of 2 powered by Legistar™ File #:19-501 Agenda Date:6/26/2019 Version:1 Item #:4a. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to make any revisions, amendments, or modifications, deemed necessary to carry out the intent of this Resolution which do not materially alter or increase the City’s obligations thereunder, 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 related action necessary to carry out the intent of this Resolution. Attachment: Exhibit A - Draft Cooperative Implementation Agreement No. D43CIASF0002 ***** City of South San Francisco Printed on 6/27/2019Page 2 of 2 powered by Legistar™ City of South San Francisco CIA No. D43CIASF0002 Page 1 of 19 CALTRANS CIA AGREEMENT rev 6/2018 COOPERATIVE IMPLEMENTATION AGREEMENT THIS AGREEMENT, ENTERED INTO EFFECTIVE ON June 12, 2019, is between the State of California acting by and through its Department of Transportation, referred to herein as CALTRANS and the CITY OF SOUTH SAN FRANCISCO, a body politic and a municipal corporation (chartered City) of the State of California, referred to herein as “AGENCY”. CALTRANS and AGENCY are together referred to as PARTIES. RECITALS 1. CALTRANS and AGENCY, pursuant to California Streets and Highways Code (SHC) Sections 114 and 130, are authorized to enter into a Cooperative Agreement for improvements to the State Highway System (SHS) as a watershed stakeholder within AGENCY’s jurisdiction. 2. As per Attachment IV of the Caltrans National Pollutant Discharge Elimination Permit Order 2012-0011-DQW (NPDES Permit), Section I.A, CALTRANS and AGENCY are to collaboratively implement the NPDES Permit requirements as they have been identified as stakeholders in the Total Maximum Daily Load (TMDL) for Orange Park Stormwater Treatment Facility (hereinafter referred to as “PROJECT”). CALTRANS has agreed to contribute an amount not to exceed Six Million Dollars ($6,000,000) to AGENCY for AGENCY to construct the PROJECT, within the regional area under the jurisdiction of AGENCY to comply with the TMDL. The NPDES Permit (including Attachment IV) is located at: www.waterboards.ca.gov/water_issues/programs/stormwater/caltrans.shtm 3. AGENCY has agreed to implement the PROJECT subject to the terms and conditions of this Agreement including all documents attached hereto that are incorporated herein and hereby made a part of this Agreement (collectively referred to as the “AGREEMENT”). 4. AGENCY will be responsible for all management, maintenance and operations, including costs of the constructed PROJECT. 5. CALTRANS will be credited with one (1) Compliance Unit (CU) for each Eighty Eight Thousand Dollars ($88,000) paid to AGENCY. A compliance unit is defined as one (1) acre of CALTRANS’s Right-of-Way (ROW) from which the runoff is retained, treated, and/or otherwise controlled prior to discharge to the relevant reach. The financial equivalent as submitted by CALTRANS is One Hundred Seventy Six Thousand Dollars ($176,000) per CU. The State Water Resources Control Board (“State Water Board”) is encouraging collaborative efforts and Cooperative Implementation Agreements, and uses a 50% discount for CU in dollars contributed to the Cooperative Implementation. This sets the CU equivalent at Eighty Eight Thousand Dollars ($88,000).DRAFTEXHIBIT A City of South San Francisco CIA No. D43CIASF0002 Page 2 of 19 CALTRANS CIA AGREEMENT rev 6/2018 6. Cooperative Implementation has the following advantages: Cooperative Implementation (i) allows for retrofit projects off the ROW, at locations that may otherwise have space, access, or safety limitations within the ROW; (ii) provides for the involvement of local watershed partners who have an interest and expertise in the best way to protect, manage, and enhance water quality in the watershed; (iii) allows for implementation of Best Management Practices (BMPs) and other creative solutions not typically available to CALTRANS; (iv) allows for larger watershed-scale projects; and (v) leverages resources from other entities. 7. All services performed by AGENCY pursuant to this AGREEMENT are intended to be performed in accordance with all applicable Federal, State and AGENCY laws, ordinances, and regulations, and with CALTRANS published manuals, policies, and procedures. In case of conflict between Federal, State and AGENCY laws, ordinances, or regulations, the order of precedence applicability of these laws shall be Federal, State and then AGENCY laws and regulations, respectively. 8. CALTRANS share of PROJECT funding is as follows: FUND TITLE FUND SOURCE DOLLAR AMOUNT SHA State of California $6,000,000 DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 3 of 19 CALTRANS CIA AGREEMENT rev 6/2018 SECTION I All sections of this AGREEMENT including the recitals are enforceable. 1. AGENCY has agreed to implement PROJECT in accordance with Attachment II-SCOPE SUMMARY. The SCOPE SUMMARY that is attached to and made a part of this AGREEMENT defines in detail the PROJECT’s scope of work, description, timeline, location and budget. 2. AGENCY will be responsible for all management, maintenance and operations, including costs of the constructed PROJECT. 3. AGENCY will develop and construct the PROJECT in accordance with the applicable laws, policies, practices, procedures and standards. This applies to all procurements, including land acquisitions, licenses and permits. 4. AGENCY shall prepare initial engineering and geotechnical assessments, and detailed design as well as acquire environmental reviews and ROW needed for the PROJECT. This work is the AGENCY equivalent to CALTRANS process of Project Initiation Document (PID), Project Approval & Environmental Document (PA & ED) and Plans, Specification and Estimate (PS&E). AGENCY will pay for coordinate, prepare, obtain, implement, renew, and amend all any permits needed to complete the PROJECT. AGENCY will prepare CEQA environmental documentation to meet CEQA requirements. 5. AGENCY will advertise, open bids, award, and approve the construction contract in accordance with the California Public Contract Code and the California Labor Code and will be responsible for the administration, acceptance, and final documentation of the construction contract. 6. AGENCY shall be reimbursed for actual costs not exceeding the amount provided in the AGREEMENT herein. 7. CALTRANS shall have the right to inspect the work to be performed hereunder at any time during its progress and to make final inspection upon completion thereof. Failure of CALTRANS to object within 30 days after final inspection shall indicate satisfactory performance of the AGREEMENT by AGENCY. 8. The total amount reimbursable to AGENCY pursuant to this AGREEMENT by CALTRANS shall not exceed $6,000,000 (“Contract Sum”). Costs incurred by AGENCY for PROJECT work under this AGREEMENT in excess of the Contract Sum will be borne by AGENCY. It is understood and agreed that this AGREEMENT fund limit is an estimate and that CALTRANS will only reimburse the cost of services actually rendered as authorized by the CALTRANS Contract Manager or designee at or below the fund limitation amount set forth in this AGREEMENT and in accordance with the Budget included in Attachment II. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 4 of 19 CALTRANS CIA AGREEMENT rev 6/2018 9. All administrative draft and administrative final reports, studies, materials, and documentation relied upon, produced, created or utilized for PROJECT will be held in confidence to the extent permitted by law, and where applicable, the provisions of California Government Code section 6254.5(e) shall govern the disclosure of such documents in the event said documents are shared between the Parties. Parties will not distribute, release, or share said documents with anyone without prior written consent of the party authorized to release said documents except: (i) to employees, agents, and consultants who require access to complete the work described within this AGREEMENT; or (ii) where release is required or authorized by law. 10. HM-1 is defined as hazardous material (including but not limited to hazardous waste) that requires removal and disposal pursuant to Federal or State law, whether it is disturbed by PROJECT or not. HM-2 is defined as hazardous material (including but not limited to hazardous waste) that may require removal and disposal pursuant to Federal or State law, only if disturbed by PROJECT. 11. CALTRANS, independent of PROJECT costs, is responsible for any HM-1 found within existing CALTRANS ROW. CALTRANS will undertake HM-1 management activities with minimum impact to PROJECT schedule and will pay all costs associated with HM-1 management activities. 12. CALTRANS has no responsibility for management activities or costs associated with HM-1 found outside the CALTRANS existing ROW. AGENCY, independent of PROJECT costs, is responsible for any HM-1 found within PROJECT limits outside existing CALTRANS ROW, and will pay, or cause to be paid, all costs associated with HM-1 management activities. AGENCY will undertake, or cause to be undertaken, HM-1 management activities with minimum impact to PROJECT schedule. 13. If HM-2 is found within the limits of PROJECT, the AGENCY responsible for advertisement, award, and administration (AAA) of the PROJECT construction contract will be responsible for HM-2 management activities. Any management activity cost associated with HM-2 is a PROJECT construction cost. 14. This AGREEMENT may only be amended or modified by mutual written agreement of the parties. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 5 of 19 CALTRANS CIA AGREEMENT rev 6/2018 SECTION II- GENERAL PROVISIONS 1. TERMINATION A. This AGREEMENT may be terminated by the PARTIES upon mutual written agreement. In the event of a termination CALTRANS will reimburse AGENCY all allowable, authorized, and non-cancelable obligations and costs incurred by AGENCY prior to the termination. B. CALTRANS reserves the right to terminate this AGREEMENT before the AGENCY awards the construction contract or begins to do project work. CALTRANS will reimburse AGENCY reasonable, allowable, authorized and non-cancelled costs up to the date of termination that are attributable to the PROJECT. C. This AGREEMENT will terminate upon completion of PROJECT when all parties have met all scope, cost, and schedule commitments included in this AGREEMENT and have signed a closure statement, which is a document signed by the parties that verifies the completion of PROJECT, except that all indemnification, document retention, audit, claims, environmental commitment, pending legal challenge, hazardous material, operation, maintenance and ownership provisions will remain in effect until terminated or modified in writing by mutual agreement. D. AGENCY has sixty (60) days after the effective date of AGREEMENT termination, or such other time agreed upon in writing by PARTIES, to submit invoices to CALTRANS to make final allowable payments for Project costs in accordance with the terms of this AGREEMENT. Failure to submit invoices within this period may result in a waiver by AGENCY of its right to reimbursement of expended costs. 2. BUDGET CONTINGENCY CLAUSE All obligations of CALTRANS under the terms of this AGREEMENT are subject to the appropriation of resources by the Legislature, and the State Budget Act authority. It is mutually agreed that if the State Legislature does not appropriate sufficient funds for the program, this AGREEMENT shall be amended if possible to reflect any reduction in funds, but nothing herein obligates the PARTIES to provide additional funding or proceed if sufficient funding is unavailable. 3. ALLOWABLE COST, PAYMENTS AND INVOICING A. The method of payment for this AGREEMENT will be based on actual allowable costs. CALTRANS will reimburse AGENCY for expended actual allowable direct costs and indirect costs, including, but not limited to labor costs, employee benefits, travel (overhead is reimbursable only if the Agency has an approved indirect costs allocation plan) and contracted consultant services costs incurred by AGENCY in performance of the PROJECT work, not to exceed the cost of the Contract Sum. B. Reimbursement of AGENCY expenditures will be authorized only for those allowable costs actually incurred by AGENCY in the performance of the PROJECT WORK. AGENCY must not only have incurred the expenditures on or after the Effective Date of DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 6 of 19 CALTRANS CIA AGREEMENT rev 6/2018 this AGREEMENT and before the Termination Date, but must have also paid for those costs to claim any reimbursement. C. PARTIES will agree upon CALTRANS’ annual reimbursement of the PROJECT costs, throughout its duration. Total reimbursement will not exceed the amount stated in Recital 2. The encumbered funds are to be expended and invoiced by AGENCY by May 1 of the third Fiscal Year from the fiscal year they were encumbered. Any funds encumbered, but not expended by the end of the third Fiscal Year, will not be reimbursed to AGENCY by CALTRANS. D. Travel, per diem, and third-party contract reimbursements are a PROJECT costs only after those hired by AGENCY to participate in PROJECT incur and pay those costs. Payments for travel and per diem will not exceed the rates paid rank and file state employees under current California Department of Human Resources rules current at the effective date of this AGREEMENT. E. CALTRANS will reimburse AGENCY for all allowable PROJECT costs no more frequently and no later than monthly in arrears and as promptly as CALTRANS fiscal procedures permit upon receipt of itemized signed invoices. Invoices shall reference this AGREEMENT Number and shall be signed and submitted to the Contract Manager at the following address: California Department of Transportation Division of Environmental Analysis – Stormwater Program Attention: Tom Rutsch, MS 27 P.O. Box 942874 Sacramento, CA 94274-0001 F. Invoices shall include the following information: 1) Invoice Cover Sheet The invoice cover sheet summarizes the previous, current and total amounts billed for the AGREEMENT. Details included on the cover sheet are: a. “INVOICE” near top of page b. Invoice Date c. Contract Number d. Invoice Number e. Billing period (performance period), specified with beginning and ending dates. Best towards top of page. f. Brief description of the work performed g. Summary of total dollar amount billed to date i. Previous month invoice balance ii. Amount billed this month iii. Total amount billed including current invoice amount h. Total amount due i. Summary of charges i. AGENCY (municipality) Labor Costs ii. Sub-Vendor Labor Costs (consultant) DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 7 of 19 CALTRANS CIA AGREEMENT rev 6/2018 iii. Sub-Vendor Direct Costs (materials, equipment, miscellaneous itemized costs) iv. Other Direct Costs j. Discounts (if applicable) k. Remittance information including name and address l. AGENCY Contract Manager’s name, address and phone number m. AGENCY Contract Manager’s signature and signature block n. CALTRANS Contract Manager’s name and address o. CALTRANS Contract Manager’s signature block (optional) 2) Invoice and Supports All invoice charges must match the rates on the contract cost proposal and personnel request. (Changes in billing rates must be approved BEFORE billing.) The CALTRANS’ Contract Manager must be provided invoices or other documentation with sufficient detail to verify the charges are allowable under the AGREEMENT with sufficient support to allow them to verify charges. Supporting documentation, such as receipts, is required for all costs included on the invoice that are not for hourly or sub- contract labor. AGENCY labor charges need to show person’s name, hours worked, billing rate and brief description of work performed. Supporting documents (timesheet or payroll report) need to be provided. These documents need to include: a. Name (first and last) b. Hours charged c. Brief description -- identify the work is for the project funded by the Cooperative Implementation Agreement d. Month, day and year of the charges e. Worker and supervisor’s signatures (Exceptions can be made for electronic timesheets.) All overtime must be approved in advance by the CALTRANS Contract Manager Direct costs (such as material costs, vehicle rental) are reimbursable. These costs need to be verified, therefore, a copy of the receipt, paid purchase order or other documentation that shows the items and cost needs to be attached to the invoice. AGENCY personnel travel costs may be reimbursed according to the Consultant and Contractor travel guidelines located on the CALTRANS’ website at: www.dot.ca.gov/hq/asc/travel/ch12/1consultant.htm. The Travel Expense Claim (TEC) form is available at: www.dot.ca.gov/hq/asc/travel/ch5/1tec.htm. Subcontractor costs are reimbursed after providing a copy of the paid invoice. This invoice needs to show that the AGENCY contract manager reviewed and approved the payment. CALTRANS requires its vendors to submit proof of costs incurred, such as timesheet or payroll records, travel reimbursement form (that includes the reason and dates for travel) with receipts, receipts for materials, lab services or other items) and CALTRANS assumes the AGENCY has similar requirements that are documented. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 8 of 19 CALTRANS CIA AGREEMENT rev 6/2018 3) Progress Reports Each invoice needs to be accompanied by a Progress Report for the billing period. This report includes: a. Work performed during the billing period (can be in a bullet format) b. Contract progress estimate -- percentage of work completed (not dollar based) c. Work anticipated during the next billing cycle (can be in a bullet format) d. Total amount spent during the billing period (AGENCY personnel, AGENCY direct costs, subcontractor costs and total) e. Total amount spent to date (AGENCY, subcontractor, total) f. Percentage of Cooperative Implementation Agreement (CIA) funds used to date. [Total (AGENCY and subcontractor)/CIA not to exceed amount)] 4. COST PRINCIPLES A. If PARTIES fund any part of PROJECT with state or federal funds, each PARTY will comply, and will ensure that any sub-recipient, contractor or subcontract hired to participate in PROJECT will comply with the federal cost principles and administrative requirements of 2 CFR, Part 200. These principles and requirements apply to all funding types included in this AGREEMENT. B. Any Project costs for which AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, and/or Title 48, Chapter 1, Part 31, are subject to repayment by AGENCY to CALTRANS. Should AGENCY fail to reimburse moneys due CALTRANS within thirty (30) days of discovery or demand, or within such other period as may be agreed in writing between the parties hereto, CALTRANS is authorized to intercept and withhold future payments due AGENCY from CALTRANS. C. PARTIES will maintain and make available to each other all PROJECT related documents, including financial data, during the term of this AGREEMENT. PARTIES will retain all PROJECT-related records for three (3) years after the final payment voucher. 5. INDEMNIFICATION Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by AGENCY, its contractors, sub-contractors, and/or its agents under or in connection with any work, authority, or jurisdiction conferred upon AGENCY under this AGREEMENT. It is understood and agreed that AGENCY, to the extent permitted by law, will defend, indemnify, and save harmless CALTRANS and all of its officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, but not limited to, tortious, contractual, inverse condemnation, or other theories and assertions of liability occurring by reason of anything done or omitted to be done by AGENCY, its contractors, sub-contractors, and/or its agents under this AGREEMENT. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 9 of 19 CALTRANS CIA AGREEMENT rev 6/2018 6. RETENTION OF RECORDS/AUDITS A. AGENCY, its contractors, subcontractors and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred PROJECT costs. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), shall enable the determination of incurred costs at interim points of completion, and shall provide support for reimbursement payment vouchers or invoices. All books, documents, papers, accounting records and other supporting papers and evidence of performance under this AGREEMENT of AGENCY, its contractors, subcontractors and sub-recipients connected with PROJECT performance under this AGREEMENT shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CALTRANS, the California State Auditor, and auditors representing the federal government during business hours with appropriate notice. Copies thereof will be furnished by AGENCY, its contractors, its subcontractors and sub-recipients upon receipt of any request made by CALTRANS or its agents. In conducting an audit of the costs under this AGREEMENT, CALTRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY’s external and internal auditors may be relied upon and used by CALTRANS when planning and conducting additional audits. B. AGENCY, its sub-recipients, contractors, and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other AGENCY of the State of California designated by CALTRANS, for the purpose of any investigation to ascertain compliance with this AGREEMENT. C. This AGREEMENT shall be subject to a pre-award audit prior to execution of the AGREEMENT to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable and allocable costs. D. CALTRANS, the state auditor, and the Federal Government, (if the PROJECT utilizes federal funds), will have access to all PROJECT-related records held by AGENCY or by any party hired by AGENCY to participate in PROJECT. E. The examination of any records will take place in the offices and locations where said records are generated and/or stored and will be accomplished during reasonable hours of operation. F. Upon completion of the final audit, AGENCY has thirty (30) calendar days to refund or invoice as necessary in order to satisfy the obligation of the audit. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 10 of 19 CALTRANS CIA AGREEMENT rev 6/2018 7. DISPUTES A. PARTIES will first attempt to resolve AGREEMENT disputes at the PROJECT team level. If they cannot resolve the dispute themselves, the CALTRANS Chief Environmental Engineer and the executive officer of AGENCY will attempt to negotiate a resolution. B. If PARTIES do not reach a resolution, AGENCY’ legal counsel will initiate mediation. PARTIES agree to participate in mediation in good faith and will share equally in its costs. C. Neither the dispute nor the mediation process relieves PARTIES from full and timely performance of PROJECT in accordance with the terms of this AGREEMENT. However, if either PARTY stops fulfilling PROJECT, the other PARTY may seek equitable relief to ensure that PROJECT continue. D. Except for equitable relief, no PARTY may file a civil complaint until after mediation, or 45 calendar days after filing the written mediation request, whichever occurs first. E. PARTIES will file any civil complaints in the Superior Court of the county in which the CALTRANS district office signatory to this AGREEMENT resides or in the Superior Court of the county in which the PROJECT is physically located. The prevailing PARTY will be entitled to an award of all costs, fees, and expenses, including reasonable attorney fees as a result of litigating a dispute under this AGREEMENT or to enforce the provisions of this article including equitable relief. F. Additional Dispute Remedies. PARTIES maintain the ability to unanimously pursue alternative or additional dispute remedies if a previously selected remedy does not achieve resolution. 8. RELATIONSHIP OF PARTIES It is expressly understood that this AGREEMENT is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 11 of 19 CALTRANS CIA AGREEMENT rev 6/2018 9. NOTIFICATION OF PARTIES A. AGENCY Mike Futrell, City Manager, [email protected] and (650) 877-8500. B. CALTRANS’s Tom Rusch, Watershed Manager – North, [email protected] and (916) 653-7396. C. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and received by the parties at their respective addresses: City of South San Francisco City Manager 400 Grand Avenue South San Francisco, CA 94080 California Department of Transportation Division of Environmental Analysis - MS 27 Attention: Tom Rutsch 1120 N St. Sacramento, CA 95814 Mail to: P.O. Box 942874, Sacramento, CA 94274-0001 DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 12 of 19 CALTRANS CIA AGREEMENT rev 6/2018 SECTION III ATTACHMENTS The following attachments are incorporated into and are made a part of this AGREEMENT by this reference and attachment. I. AGENCY Resolution, Certification of Approval, order, motion, ordinance or other similar document from the local governing body authorizing execution of the AGREEMENT II. Scope of Work, Description, Timeline, Location and Budget SECTION IV- SIGNATURES Signatories may execute this AGREEMENT through individual signature pages provided that each signature is an original. This AGREEMENT is not fully executed until all original signatures are attached. PARTIES are empowered by California Streets and Highways Code (SHC) sections 114 and 130 to enter into this AGREEMENT and have delegated to the undersigned the authority to execute this AGREEMENT on behalf of the respective agencies and covenant to have followed all the necessary legal requirements to validly execute this AGREEMENT. STATE OF CALIFORNIA AGENCY DEPARTMENT OF TRANSPORTATION Signature: Signature: Print Name: Tom Rutsch Print Name: Mike Futrell Title: Watershed Manager Title: City Manager Date: Date: DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 13 of 19 CALTRANS CIA AGREEMENT rev 6/2018 ATTACHMENT I – CITY COUNCIL RESOLUTION DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 14 of 19 CALTRANS CIA AGREEMENT rev 6/2018 DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 15 of 19 CALTRANS CIA AGREEMENT rev 6/2018 ATTACHMENT II – SCOPE SUMMARY South San Francisco Water Capture Project The City of South San Francisco is a member of the San Mateo Countywide Water Pollution Prevention Program (SMCWPPP), a program of the City/County Association of Governments of San Mateo County (C/CAG). C/CAG is a joint powers agency whose members are the County and the 20 incorporated cities and towns in San Mateo County. SMCWPPP supports C/CAG’s member agencies in complying with requirements contained in the second five-year term of the Municipal Regional Permit (MRP) issued by the San Francisco Bay Regional Water Board. Four important components SMCWPPP is implementing to assist member agencies include green infrastructure planning, stormwater resource planning, mercury/PCBs load reduction, and trash load reductions. The MRP requires San Mateo County permittees to reduce PCBs by 370 grams per year by June 30, 2020, with an interim reduction of 60 grams per year required by June 30, 2018, with a minimum of 15 grams per year of the total be achieved via green infrastructure. San Mateo County permittees also need to demonstrate they have reduced mercury by six grams per year via green infrastructure by June 30, 2020. These reduction rates are required by the MRP as part of the process to achieve compliance with the mercury and the PCBs TMDLs for San Francisco Bay. San Mateo County permittees are also required to reduce trash discharges to the Bay from municipal storm drain systems. This requirement began with the issuance of the first MRP in 2009, with a 40% reduction required in 2014. Under the current MRP term, 70% reduction is required in 2017, 80% reduction in 2019, and zero impact on receiving waters from trash by 2022. These reductions will largely be accomplished through the implementation of green infrastructure, including stormwater capture and use and/or infiltration to groundwater. SMCWPPP developed a countywide Storm Water Resource Plan (SWRP) that focuses primarily on storm water capture with a multi-benefit approach to overall water resources planning, including water quality. This plan is being followed by local Green Infrastructure Plans (GI Plans) to meet MRP requirements. Development of the GI Plans will be a multi-year effort that includes preparation of a reasonable assurance analysis (RAA) to demonstrate long-term GI Plan implementation by all MRP permittees will reduce PCB loads by three kilograms per year by 2040. Effective on April 26, 2017, the California Department of Transportation (Caltrans) agreed to fund $9,500,000 to the Orange Memorial Storm Water Capture Project (Original Project) through Cooperative Implementation Agreement No. D43CIASF0001. The Original Project is currently at 60% design. The design includes a drop inlet diversion structure to re-direct all dry-weather urban runoff and up to approximately 15 cubic feet per second of the first flush of wet-weather runoff from the Colma Creek channel through pre-treatment structures to remove trash, debris, and sediment before conveying the water into a subsurface multi-chambered storage reservoir with an overall storage capacity of approximately 1,250,000 gallons. A portion (approximately 250,000) of the storage functions as a cistern holding water that will receive water quality polishing and DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 16 of 19 CALTRANS CIA AGREEMENT rev 6/2018 disinfection for eventual non-potable irrigation use in and around the park, and the remainder (approximately 1,000,000) functions as an infiltration chamber. When storage capacity is exceeded, diverted water that has been screened for full trash capture and has been through pretreatment for removal of floatables and settleables overflows back into the channel. The RAA model estimates that the current 60% design will capture and treat approximately eight (8) percent of the average annual drainage volume from 6,570 acres of tributary watershed areas in the City of South San Francisco, Town of Colma, the City of Daly City, a portion of unincorporated San Mateo County, and two small portions of Pacifica and San Bruno. Figure 1 shows the tributary watershed areas draining to the Colma Creek Flood Control Channel as it passes through Orange Memorial Park. Caltrans right-of-way constitutes 234 acres of the tributary area, including 7.08 miles of State Highway 82 (El Camino Real), 8.43 miles of Interstate 280, and 3.34 miles of State Highway 35 (Skyline Blvd). The Project has multiple benefits in addition to water quality improvements, including flood reduction and beneficial use of treated water for irrigation and groundwater recharge. Figure 1. Water Capture Project Drainage Area by Jurisdiction DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 17 of 19 CALTRANS CIA AGREEMENT rev 6/2018 The proposed Phase II Orange Memorial Park Storm Water Capture Project (Proposed Project) will allow the Agency to increase the scale of the Original Project and effectively double the water quality treatment provided in terms of diversion, pretreatment, and infiltration capacity. The larger scale Water Capture Facility is shown schematically in Figure 2. The Proposed Project will include a water capture facility at this site with 30 cubic feet per second diversion and over 2 million gallons of storage, which will capture and treat approximately sixteen (16) percent of the average annual drainage volume in Colma Creek at the Project site, per the RAA model. Increasing the scale of the Water Capture Facility will reduce the transport of Mercury, PCB’s, trash and other pollutants downstream to San Francisco Bay by removing these pollutants from the captured discharges. As part of the Proposed Project, the RAA model was used to calculate in- channel flows at our project site for the respective design storms (85th percentile for general water quality and 1-yr, 1-hr for trash capture), then the ratio of [flow treated]:[total flow] for each was applied to the tributary watershed area to back out the “equivalent areas treated”. The upscaled facility is estimated to provide general water quality treatment to wet-weather discharges from an equivalent watershed area of approximately 1,150 acres as well as trash capture to an equivalent 700 acres. Figure 2. Expanded Water Capture Project Layout DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 18 of 19 CALTRANS CIA AGREEMENT rev 6/2018 The Proposed Project involves additional engineering and geotechnical assessment for the expanded footprint, detailed design, and construction of a larger capture and treatment system, including a larger instream drop inlet, pretreatment structures, conveyance pipes, flow splitter, and infiltration gallery. The City of South San Francisco, as lead agency, will enter into a Cooperative Implementation Agreement with Caltrans and consultants will be hired to manage the project, conduct engineering and geotechnical investigations, and assist with environmental clearance, permitting, design, and construction management. DRAFT City of South San Francisco CIA No. D43CIASF0002 Page 19 of 19 CALTRANS CIA AGREEMENT rev 6/2018 Cost Estimate A preliminary cost estimate has been prepared for the Orange Memorial Park Water Capture Project to increase the scale of the Original Project up to the Proposed Project. The cost estimate considers the additional costs associated with design, construction, construction administration and inspections, and 25% contingency. These preliminary costs may be adjusted with the development of the Project.  Project Management $88,000  Project Approval & Environmental Documents $105,000  Plans, Specifications, & Estimate $235,000  Construction Administration $424,000  Construction $4,100,000  Contingency $1,025,000 $5,977,000 Estimated Timeline These dates are subject to refinement as the project proceeds. The complete construction dates will be dependent on receipt of the balance of the project funding from Caltrans. Construction Drawings – 90% Milestone 08/23/19 Construction Drawings – 100% Complete 10/11/19 Advertise for Bids 10/25/19 Award Construction Contract 12/15/19 Commence Construction (17 months) 03/01/20 *Deadline to Bill Caltrans for FY19-20 Funding Allocation 04/30/21 Complete Construction 08/09/21 *Deadline to Bill Caltrans for FY20-21 funding allocation 04/30/22 *Deadline to Bill Caltrans for FY21-22 funding allocation 04/30/23 *City may request adjustments to the schedule line items except for the deadlines to expend Caltrans funding allocations. DRAFT