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Home My WebLink About2021-02-10 e-packet@7:00Wednesday, February 10, 2021 7:00 PM City of South San Francisco P.O. Box 711 South San Francisco, CA TELECONFERENCE MEETING City Council Regular Meeting Agenda February 10, 2021City Council Regular Meeting Agenda TELECONFERENCE MEETING NOTICE THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDERS N-29-20 AND N-63-20 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION. The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff and the public while allowing for public participation. Councilmembers Coleman, Flores and Nicolas, Vice Mayor Nagales and Mayor Addiego and essential City staff will participate via Teleconference. PURSUANT TO RALPH M. BROWN ACT, GOVERNMENT CODE SECTION 54953, ALL VOTES SHALL BE BY ROLL CALL DUE TO COUNCIL MEMBERS PARTICIPATING BY TELECONFERENCE. MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY: Internet: https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council Local cable channel: Astound, Channel 26 or Comcast, Channel 27 Participants are asked to register via the Zoom platform to receive the meeting link. Your email address will not be disclosed to the public. Please click on the link below to register for the session: Zoom Link https://ssf-net.zoom.us/webinar/register/WN_JVGrq4TWRoiqpONH0OBtRg After registering, you will receive a confirmation email containing information about joining the meeting. Please note that dialing in will only allow you to listen in on the meeting. To make a public comment during the Zoom meeting follow the instructions listed under Remote Public Comments. Page 2 City of South San Francisco Printed on 4/21/2021 February 10, 2021City Council Regular Meeting Agenda PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:00 p.m. As of March 10, 2021 the meeting time will be 6:00 p.m. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. MARK ADDIEGO, Mayor (At-Large) MARK NAGALES, Vice Mayor (District 2) BUENAFLOR NICOLAS, Councilmember (At-Large) JAMES COLEMAN, Councilmember (District 4) EDDIE FLORES, Councilmember (At-Large) ROSA GOVEA ACOSTA, City Clerk FRANK RISSO, City Treasurer MIKE FUTRELL, City Manager SKY WOODRUFF, City Attorney In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to an adjourned regular meeting will be made available for public inspection in the City Clerk ’s Office located at City Hall. If, however, the document or writing is not distributed until the adjourned regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080. Page 3 City of South San Francisco Printed on 4/21/2021 February 10, 2021City Council Regular Meeting Agenda CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW ANNOUNCEMENTS FROM STAFF PRESENTATIONS Presentation regarding financing the Civic Campus and Street Paving Program. (Janet Salisbury, Finance Director; Matthew Ruble, Principal Engineer; Jacob Gilchrist, Capital Projects Director) 1. REMOTE PUBLIC COMMENTS Remote Public Comments Received2. The Public Comments portion of the meeting is reserved for persons wishing to address the Council on any matter NOT on the agenda. Speakers are allowed to speak on any topic for up to three minutes during this section. If there appears to be a large number of speakers, speaking time may be reduced subject to the Mayor’s discretion to limit the total amount of time for public comments (Gov. Code sec. 54954.3.(b)(1).). Comments that are not in compliance with the City Council's rules of decorum may be summarized for the record if they are in writing or muted if they are made live. Submit Public Comments in Advance via GoogleDocs: Members of the public are encouraged to submit public comments in writing in advance of the meeting via GoogleDocs by 5:00 p.m. on the meeting date. Comments received by the deadline will be forwarded to the City Council and read into the record by the City Clerk. Comments received after 5:00 p.m. will not be read during the meeting but will be entered into the record for the meeting. Approximately 300 words total can be read in three minutes. Link to submit public comment can be found here: https://forms.gle/tELVKxzsggWwr9PN8 Page 4 City of South San Francisco Printed on 4/21/2021 February 10, 2021City Council Regular Meeting Agenda Comments During Remote Meeting: Members of the public who wish to provide comment during the meeting may do so by using the “Raise Hand” feature: • To raise your hand on a PC or Mac desktop/laptop, click the button labeled "Raise Hand” at the bottom of the window on the right side of the screen. Lower your hand by clicking the same button, now labeled “Lower Hand.” • To raise your hand on a mobile device, tap “Raise Hand” at the bottom left corner of the screen. The hand icon will turn blue, and the text below it will switch to say "Lower Hand" while your hand is raised. To lower your hand, click on “Lower Hand.” • To raise your hand when participating by telephone, press *9. Once your hand is raised, please wait to be acknowledged by the City Clerk, or designee, who will call on speakers. When called upon, speakers will be unmuted. After the allotted time, speakers will be placed on mute. COUNCIL COMMENTS/REQUESTS CONSENT CALENDAR Motion to approve the Minutes for the meetings of December 1, 2020, and December 9, 2020. (Rosa Govea Acosta, City Clerk) 3. Report regarding a resolution authorizing the acceptance of $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation. (Jess Magallanes, Fire Chief) 4. Resolution authorizing the acceptance of $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation. 4a. Report regarding a resolution determining the continued existence of an emergency and the need to continue emergency repairs in response to the Sign Hill Diamond Fire. (Greg Mediati, Deputy Director of Parks and Recreation) 5. Resolution determining the continued existence of an emergency and authorizing procurement for emergency remediation work relating to fire damage on Sign Hill in South San Francisco. 5a. Report regarding a resolution authorizing the filing of grant application(s) for all CalRecycle grants for which the City of South San Francisco is eligible and for the resolution authorizing on its behalf the submittal of grant application(s) by a lead agency for which the City of South San Francisco is eligible. (Eunejune Kim, Director of Public Works) 6. Page 5 City of South San Francisco Printed on 4/21/2021 February 10, 2021City Council Regular Meeting Agenda Resolution of City Council of the City of South San Francisco authorizing submittal of application(s) for all CalRecycle grants for which the City of South San Francisco is eligible. 6a. Resolution of the City Council of the City of South San Francisco authorizing on its behalf the submittal of grant application(s) by a lead agency for which the City of South San Francisco is eligible. 6b. Report regarding an ordinance amending South San Francisco Municipal Code Section 2.04.010 to authorize the City Council to set regular meeting times by resolution (Sky Woodruff, City Attorney) 7. Ordinance amending Section 2.04.010 of the South San Francisco Municipal Code to authorize the time of regular City Council meetings be established by resolution. 7a. PUBLIC HEARING Report regarding a public hearing relating to the bond financing for the Grand and Linden Family Apartments (201-219 Grand Avenue and 418 Linden Avenue) including issuance of tax-exempt bonds by the California Statewide Communities Development Authority (CSCDA) in an aggregate principal amount not to exceed $45 million. (Julie Barnard, Economic Development Coordinator and Jon Penkower, Managing Director, CSCDA) 8. A resolution approving the issuance of multifamily housing revenue bonds for the Grand and Linden Family Apartments by the California Statewide Communities Development Authority. 8a. ADMINISTRATIVE BUSINESS Report regarding a resolution approving the parcel map for 201 Grand Avenue, authorizing the recordation of the parcel map and all related documents. (Jason Hallare, Senior Civil Engineer) 9. Resolution approving the parcel map for 201 Grand Avenue, authorizing the recordation of the parcel map and all related documents. 9a. Report Regarding a Resolution to Amend the Executive Salary Schedule for the City of South San Francisco to Incorporate Provisions of the Amended City Manager Employment Agreement (Leah Lockhart, Human Resources Director) 10. Resolution to amend the Executive Salary Schedule for the City of South San Francisco to Incorporate provisions of Amendment No. 6 to the City Manager Employment Agreement. 10a. Page 6 City of South San Francisco Printed on 4/21/2021 February 10, 2021City Council Regular Meeting Agenda Report regarding the Comprehensive Annual Financial Report for fiscal year ended June 30, 2020, mid-year update for fiscal year ending June 30, 2021, and additional appropriation requests. (Janet Salisbury, Director of Finance) 11. Resolution approving the Comprehensive Annual Financial Report for fiscal year ended June 30, 2020, mid-year update for fiscal year ending June 30, 2021, and additional appropriation requests. 11a. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS CLOSED SESSION Closed Session: Conference with Legal Counsel - Anticipated Litigation (Pursuant to Government Code section 54956.9(d)(4)) Initiation of Litigation: Three potential cases (Sky Woodruff, City Attorney and Mike Futrell, City Manager) 12. ADJOURNMENT Page 7 City of South San Francisco Printed on 4/21/2021 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-91 Agenda Date:2/10/2021 Version:1 Item #:1. Presentation regarding financing the Civic Campus and Street Paving Program.(Janet Salisbury,Finance Director; Matthew Ruble, Principal Engineer; Jacob Gilchrist, Capital Projects Director) City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™ Financing the Civic Campus & Street Paving Program Presentation to City Council Janet Salisbury, Finance Director Matt Ruble,Principal Engineer Jake Gilchrist,Capital Projects Director 10 FEBRUARY 2021 AGENDA 1 Measure W & Lease Revenue Bond Overview 2 Funding the Civic Campus 3 Funding the Street Paving Program 4 Q&A 2 Overview of Measure W 1Measure W & Lease Revenue Bond Overview ▪Voters approved Measure W ½ cent Sales Tax in 2015 ▪Measure W revenues and expenditures outside of General Fund 3 Fiscal Year Ended 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 REVENUES $1,493,425 $8,886,653 $11,162,238 $12,644,947 $11,704,090 EXPENDITURES Civic Campus 211,992 382,776 4,925,872 8,793,377 10,255,536 Street Paving Program -495,162 4,122,270 1,189,851 127,882 Debt Service ----407,156 TOTAL EXPENDITURES $211,992 $877,938 $9,048,241 $9,983,229 $10,790,573 Revenues Less Expenditures $1,281,433 $8,008,716 $2,113,996 $2,661,719 $913,518 FUND BALANCE $1,281,433 $9,290,149 $11,404,145 $14,065,864 $14,979,381 Overview of Lease Revenue Bonds ▪Lease Revenue Bond Structure for Measure W Projects ▪Long-term lease of real property for its use ▪Marks-Roos Local Bond Pooling Act of 1985 (JPA Act) allows City to form a JPA –JPA = Issuer of Bonds –Dec. 11, 2019: City South San Francisco Public Facilities Financing Authority (SSF JPA) approved by Council ▪Real Property pledged for Series 2020A financing: –Orange Memorial Park –Miller Street Garage ▪Lease transfer once project completed ▪Asset seizure of real property highly unlikely 4 1Measure W & Lease Revenue Bond Overview Why Ratings Process is a Big Deal ▪Credit rating agencies provide independent appraisal of credit quality and likelihood of timely repayment of a bond issue ▪Higher the Credit Rating = Lower the Interest Rate (Borrowing Cost) ▪City has ratings from S&P only –Given size of first bond issuance, only one rating necessary ▪Credit Considerations –Overall financial health of City –Measure W sales tax revenue –Future growth projections and stress tests on financial projections –Pension/OPEB liability 5 AAA AA+AA AA-A+A A-BBB+BBB BBB- City Rating Bond Rating 1Measure W & Lease Revenue Bond Overview City’s Financing Team for Series 2021 6 Role Firm Issuer SSF Public Facilities Financing Authority Municipal Advisor Sperry Capital Bond Counsel / Disclosure Counsel Stradling Yocca Carlson & Rauth Underwriter Stifel (Senior Manager) Citi (Co-Manager) Underwriter’s Counsel TBD Bond Trustee / Paying Agent BNY Mellon Credit Rating Agency Standard & Poor’s 1Measure W & Lease Revenue Bond Overview Funding the Civic Campus 2Funding the Civic Campus 7 Description Pre-Construction Phase I: Police Station Phase II: Library, P&R, Council TOTAL Estimated Cost $ 34,000,000 $ 56,800,000 $ 101,000,000 $ 191,800,000 Sources of Funds Monies Already Spent (6/30/2020)24,569,552 24,569,552 Bond Proceeds 53,800,000 74,000,000 127,800,000 Measure W / Other Cash 9,430,448 20,455,000 28,885,445 Asset Seizure 2,000,000 2,000,000 Public Safety Impact Fee 1,000,000 1,000,000 PEG Funds 1,100,000 1,100,000 Childcare/Library Improvement 490,000 490,000 Library –Project READ 255,000 255,000 Fundraising 4,700,000 4,700,000 TOTAL $ 34,000,000 $ 56,800,000 $ 101,000,000 $ 191,800,000 $- $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 FY19 Measure W Receipts = $12.6 million FY20 Measure W Receipts = $11.7 million 8 SERIES 2020A –Police Station Phase II Bonds Debt Service Streets Program (pay as you go) Measure W Cashflow (Revenue less Expenditure) Measure W Projected Revenues 2Funding the Civic Campus Interest Rates Are Near Historic Lows 9 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 U.S. Treasury Rates -20 Year (Constant Maturity) 20 Year Treasury (Constant Maturity)Average (3.85%) Series 2020A Bond Issue Feb 27, 2020 Source: U.S. Department of the Treasury 2Funding the Civic Campus Add Photovoltaic (Solar) Panels to Civic Campus and Corp Yard Issue additional $4M -TBD Benefits: ▪Provide clean energy source for three major City facilities ▪Replace aging roof at the Corporation Yard ▪Return on investment (timeframe TBD) 10 2Funding the Civic Campus Potential solar array locations on Police and LPR to be reviewed and approved by Council Bonding Out the Street Paving Program Issue additional $24M for Street Paving Program Benefits: ▪Accelerates street improvements ▪Saves Money –short & long term savings ▪Very low interest rate = Low borrowing cost ▪Cost of bond issuance efficiencies ▪Repair more miles of road Sets the City up for long-term road success… While delivering better roads for residents! 11 3Funding the Street Paving Program Total Rehabilitation Cost $17.5 M ($2.5 M/year) Average $4.5 M/year to maintain Pavement Condition Index at 78 Treat 17.2 CL miles (12% of entire network) Current Pay-As-You-Go Program (2020-2026) 12 3Funding the Street Paving Program Total Rehabilitation Costs $24.0 M Treat 25.2 CL miles (19% of entire network) Average $2.0 M/year to maintain Pavement Condition Index at 87 Bond Measure Project (2020-2022) 13 3Funding the Street Paving Program Average $2 M/year Surface Seal by Zone Future Maintenance –Surface Seal By Zone 14 3Funding the Street Paving Program Project Summary –Street Bond Program 15 Items Current Year by Year Project Bond Measure Project Rehabilitation Cost $2.5 M/yr $24 M Single Project Zone Surface Seal Cost $2.0 M/yr $2.0 M/yr 15-year Total Cost $4.5 M*15 = $67.5 M $24 M + $2.0 M*15 = $54 M (-20%) Upfront Cost Savings 0 $2.0 M Total Cost Savings 0 ($67.5 M –$54 M) + $2 M = $15.5 Treated CL Miles (rehab. only)17.2 25.2 (+46%) Pavement Condition Index (PCI)Maintain Current Level (70s)Current Level + 10 points (80s) General Network Condition Good condition with low severity cracking and pavement distress, still poor condition streets Excellent –Significantly less pavement distress, no poor condition streets 3Funding the Street Paving Program $- $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Measure W Projected Revenues Option #1 –Civic Campus Debt Service + Current Obligations Option #2 –Add $24M for Streets Program Revenues vs. Option #1 and #2 Cashflow 16 3Funding the Street Paving Program Bond Sale Assumptions Description Option #1 (LPR Only) Option #2 (LPR + Streets) Bond Proceeds $ 74,000,000 $ 98,000,000 All-In Total Interest Cost 2.86%2.86% Average Annual Debt Service $ 4,175,600 $ 5,305,000 Total Debt Service $ 105,200,000 $ 148,460,000 Impact on DS with 1% Interest Rate Move +/-$350,000 +/-$400,000 17 3Funding the Street Paving Program ▪Numbers do not include solar roof ▪Additional $4 million for solar roof = approx. $250K increase in annual debt service Projected Cash Flow Detail Date Estimated Sales Tax Receipts (Measure W)1 Phase I: Debt Service (Police Station) Phase II: Debt Service (Library,P&R, Council)2 Street Paving3 Capital Project Director Remaining Measure W Funds 6/30/21 $ 11,704,090 $ 2,767,200 $ 847,178 $ 297,645 $350,000 $6,774,645 6/30/22 11,704,090 2,765,450 4,173,000 1,459,340 357,000 2,282,300 6/30/23 11,704,090 2,766,450 4,170,400 1,465,770 364,140 2,270,300 6/30/24 11,704,090 2,764,950 4,175,400 1,463,323 371,423 2,261,994 6/30/25 12,055,213 2,765,950 4,172,600 1,465,060 2,984,603 6/30/26 12,416,869 2,764,200 4,172,200 1,466,098 3,347,371 6/30/27 12,789,375 2,764,700 4,174,000 1,466,426 3,717,250 6/30/28 13,173,056 2,762,200 4,177,800 1,466,030 4,100,027 6/30/29 13,568,248 2,764,800 4,173,400 1,464,260 4,498,789 6/30/30 13,975,296 2,765,200 4,171,000 1,467,085 4,905,010 18 1 Assumes no growth in sales tax receipts from FY 2021 –2024 and 3.00% CAGR thereafter 2 Assumes all-in total interest cost of 2.86%; does not include solar roof 3 Assumes all-in total interest cost of 2.86%. 3Funding the Street Paving Program QUESTIONS 19 4Q&A City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-89 Agenda Date:2/10/2021 Version:1 Item #:2. Remote Public Comments Received City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™ Email address * César Rodríguez Regular City Council Meeting - (7:00 p.m.) 02/10/2021 Comments received by the 5:00 p.m. deadline will be forwarded to the City Council and read into the record by the City Clerk. Comments received after the 5:00 p.m. deadline will not be read during the meeting but will be entered into the record for the meeting. Approximately 300 words in total can be read in three minutes. Name Address: Phone number Organization: Item Number 1 Item Number 2 Item Number 3 Item Number 4 Item Number 5 Item Number 6 Item Number 7 Item Number 8 Item Number 9 Item Number 10 Item Number 11 Item Number 12 Public Comment - Members of the public may address the City Council regarding items that are on the agenda or on items that are not on the agenda. To comment during the meeting, please register to receive a meeting link. * Yes No The City Manager is already the highest paid city employee, and his current salary is nearly 3 times the average the median household income. Moreover, the city discussed lay-offs of rank and file city workers, namely in one city organization with the most direct and meaningful impact on our communities - Parks and Recreation. Moreover, our teachers - perhaps THE most impor tant profession that develops our community - remain dramatically underpaid relative to the rest of the Peninsula. Yes, the teacher are under the budget and governance of the SSFUSD, which is a different from the City of SSF, but the point still stands. As long as our most essential workers are making sacrifices to keep our city afloat, and until our teachers salaries reach or exceed a competitive level, the City Manager's salary should remain where as is. And if this isn't enough to retain the current City Manager's services, then we can find one who is more committed to serving our community than personally enriching themselves from it. Email Phone No Response Needed Would you like your comment read during the Public Comment section of the agenda? If you select NO, your comment will be read before the Council discusses the item. * Submit your comment below. * Would you like to receive a response from members of the City Council? If yes, please select your preferred method of communication and provide your information above. * This form was created inside of City of South San Francisco - Oce of the City Clerk. Forms City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-90 Agenda Date:2/10/2021 Version:1 Item #:3. Motion to approve the Minutes for the meetings of December 1, 2020, and December 9, 2020. (Rosa Govea Acosta, City Clerk) City of South San Francisco Printed on 2/11/2021Page 1 of 1 powered by Legistar™ CALL TO ORDER Mayor Garbarino called the meeting to order at 6:00 p.m. ROLL CALL Present: Councilmembers Matsumoto, Nagales, and Nicolas, Vice Mayor Addiego, and Mayor Garbarino. AGENDA REVIEW No changes. REMOTE PUBLIC COMMENTS – comments are limited to items on the Special Meeting Agenda. Members of the public wishing to participate were encouraged to submit public comments in writing in advance of the meeting to all-cc@ssf.net by 3:00 p.m. on Tuesday, December 1, 2020. None. CLOSED SESSION 1. Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Properties: 201 Baden Avenue (APN 012-335-100 and APN 012-335-110) Agency Negotiators: Alex Greenwood, Director of Economic and Community Development; Nell Selander, Deputy Director of Economic and Community Development and; Julie Barnard, Economic Development Coordinator Negotiating Parties: Firehouse Work LLC., and Anton DevCo Inc. Under negotiation: Price and Terms of City property disposition 3. Closed Session Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): Three potential cases 3 MINUTES SPECIAL MEETING CITY COUNCIL CITY OF SOUTH SAN FRANCISCO TUESDAY, DECEMBER 1, 2020 6:00 p.m. Teleconference via Zoom City Council conducted this meeting in accordance with California Governor Newsom’s Executive Orders N-29-20 and N-63-20 and COVID-19 pandemic protocols. SPECIAL CITY COUNCIL MEETING DECEMBER 1, 2020 MINUTES PAGE 2 2. Closed Session: Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Properties: 109 Longford (APN 010-071-050) City Negotiators: Nell Selander and Deanna Talavera Negotiating Parties: City of South San Francisco Under Negotiations: Price and terms for disposition of the property Time entered Closed Session: 6:04 p.m. Meeting resumed: 6:45 p.m. Report out of Closed Session by Mayor Garbarino: Direction given. No reportable action. ADJOURNMENT Being no further business, Mayor Garbarino adjourned the meeting at 6:46 p.m. Respectfully submitted by: Approved: Rosa Govea Acosta, CMC, CPMC Mark Addiego City Clerk Mayor Approved: / / CALL TO ORDER Mayor Addiego called the meeting to order at 11:10 p.m. ROLL CALL Present: Councilmembers Coleman and Nicolas, Vice Mayor Nagales, and Mayor Addiego. AGENDA REVIEW No changes. REMOTE PUBLIC COMMENTS - comments are limited to items on the Special Meeting Agenda. Members of the public wishing to participate were encouraged to submit public comments in writing in advance of the meeting to all-cc@ssf.net by 4:01 p.m. on Wednesday, December 09, 2020. The following individuals provided remote public comments: None. ADMINISTRATIVE BUSINESS 1. Report regarding Resolution No. 189-2020 authorizing the acceptance of $25,000 in grant funding from the Woodlawn Foundation to support the Community Learning Center’s after-school homework program and amending the Library Department’s Fiscal Year 2020-2021 Operating Budget via Budget Amendment 21.031. (Valerie Sommer, Library Director) Library Director Sommer presented the report and stated the item was initially scheduled for next month. However, Woodlawn indicated their grant funding cycle would close before the next meeting and thanked the Council for holding the item tonight. She provided an overview of the after-school homework program. Vice Mayor Nagales inquired about the total funds the Library receives in grants. Library Director Sommer indicated it was around $600k and would provide an exact amount to Council. Mayor Addiego recognized Jack West and the Woodlawn Foundation for making a difference in the community. MINUTES SPECIAL MEETING CITY COUNCIL CITY OF SOUTH SAN FRANCISCO WEDNESDAY, DECEMBER 09, 2020 7:01 p.m. Teleconference via Zoom City Council conducted this meeting in accordance with California Governor Newsom’s Executive Orders N-25-20 and N-29-20 and COVID-19 pandemic protocols. SPECIAL CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 2 Motion— Councilmember Nicolas/Second Vice Mayor Nagales: to approve Resolution No. 189- 2020, by roll call vote: AYES: Councilmembers Nicolas and Coleman, Vice Mayor Nagales and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. ADJOURNMENT Being no further business, Mayor Addiego adjourned the meeting at 11:18 p.m. Respectfully submitted by: Approved by: Cindy Avila Mark Addiego Assistant City Clerk Mayor Approved by the City Council: / / 1. CALL TO ORDER Mayor Garbarino called the meeting to order at 7:00 p.m. 2. ROLL CALL Present: Councilmembers Matsumoto, Nagales, and Nicolas, Vice Mayor Addiego, and Mayor Garbarino. REMOTE PUBLIC COMMENTS 3. Members of the public wishing to participate were encouraged to submit public comments in writing in advance of the meeting to all-cc@ssf.net by 4:00 p.m. on Wednesday, December 09, 2020. The following individuals provided remote public comments: • Russell Lee • Marcela Rivera 4. Resolution No. 182-2020 canvassing returns and declaring results of the 2020 Statewide General Election of November 3, 2020. Assistant City Clerk Avila read the resolution canvassing returns and declaring results of the 2020 Statewide General Election of November 3, 2020. Motion — Vice Mayor Addiego/Second – Councilmember Nagales: to approve Resolution No. 182-2020 canvassing returns and declaring results of the 2020 Statewide General Election of November 3, 2020 by roll call vote: AYES: Councilmembers Matsumoto, Nicolas, and Nagales, Vice Mayor Addiego and Mayor Garbarino; NAYS: None; ABSENT: None; ABSTAIN: None. 5. Outgoing comments from Councilmember Matsumoto Councilmember Matsumoto delivered outgoing remarks. 6. Outgoing comments from Mayor Garbarino Mayor Garbarino delivered outgoing remarks. The Council read a Proclamation honoring him for his years of service. MINUTES REGULAR MEETING CITY COUNCIL CITY OF SOUTH SAN FRANCISCO WEDNESDAY, DECEMBER 9, 2020 7:00 p.m. Teleconference via Zoom City Council conducted this meeting in accordance with California Governor Newsom’s Executive Orders N-25-20 and N-29-20 and COVID-19 pandemic protocols. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 2 7. Public Comments by Elected Officials for outgoing Councilmembers. The following Elected Officials provided remote public comments: • California Assemblymember Phil Ting • California Assemblymember Kevin Mullin • San Mateo County Supervisor Dave Pine • San Mateo County Supervisor David Canepa • Daly City Councilmember Pamela DiGiovanni • Brian Perkins from the Office of Congresswoman Jackie Speier • Honorable Pradeep Gupta • San Bruno Mayor Rico Medina • South San Francisco Unified School District Trustee Eddie Flores • California State Senator Josh Becker • Millbrae City Councilmember Gina Papan (email read by Assistant City Clerk Avila) • Steven Mattas • California State Senator Scott Wiener • James RuiGomez from the San Mateo Council Building Trades Council • Daly City Vice Mayor Juslyn Manalo • Ray Larios • Honorable Wayne Lee • San Mateo County Harbor District Board Commissioner Virginia Chang Kiraly • Jefferson Union High School District Board of Trustee Nick Occhipinti Vice Mayor Addiego recognized various elected officials in attendance. He thanked Mayor Garbarino and Councilmember Matsumoto for all their years of public service in South San Francisco. Councilmember Nagales recognized and thanked Councilmember Matsumoto for her years of service. He also thanked and recognized Mayor Garbarino for his years of service. Councilmember Nicolas expressed her admiration for Councilmember Matsumoto and thanked her for her dedication to the City. She recognized Mayor Garbarino for his years serving the City and thanked him for his service. Meeting recessed: 8:43 p.m. Meeting resumed: 8:48 p.m. 8. Vice Mayor resumes meeting 9. Vice Mayor declares the purpose of the meeting: Reorganization of the City Council a. Virtual Oaths of Office administered to incoming Councilmembers: Oaths of Office were administered as follows: Elected Official Sworn in by: Mark Nagales, District 2 Amy Lam and Aiden Nagales James Coleman, District 4 Hector Camacho- President of the San Mateo County Board of Education REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 3 Public comments were provided by the following individuals: • Marcela Rivera • Edward Holman b. Nominations for Mayor; close of nominations; appointment Motion — Councilmember Nagales/Second – Councilmember Nicolas: to nominate and appoint Honorable Mark Addiego to serve as Mayor of the City of South San Francisco by roll call vote: AYES: Councilmembers Nagales, Nicolas, Coleman, and Vice Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. c. Nominations for Vice Mayor; close of nominations; appointment Motion — Councilmember Nicolas/Second – Councilmember Coleman: to nominate and appoint Honorable Mark Nagales to serve as Vice Mayor of the City of South San Francisco by roll call vote: AYES: Councilmembers Nagales, Nicolas, Coleman and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. 10. Incoming remarks from Councilmember Coleman, District 4 Councilmember Coleman delivered incoming remarks. 11. Incoming remarks from Councilmember Nagales, District 2 Vice Mayor Nagales delivered incoming remarks. 12. Incoming remarks from Mayor Mayor Addiego delivered incoming remarks. 1. CALL TO ORDER Mayor Addiego called the meeting to order at 9:29 p.m. 2. ROLL CALL Present: Councilmembers Coleman and Nicolas, Vice Mayor Nagales, and Mayor Addiego. 3. Report regarding options for filling a vacancy in an at-large City Council office. (Sky Woodruff, City Attorney and Rosa Govea Acosta, City Clerk) City Attorney Woodruff presented the report and provided background information on the vacant City Council seat. He indicated that the at-large vacancy was due to the election of Vice Mayor Nagales to represent District 2. State law requires the Council to fill the vacancy by February 5, 2021 and provided two options for the Council to proceed. He provided additional information on the appointment process and indicated that holding a special election would cost between $600,000 and $700,000. Councilmember Nicolas indicated she was inclined to vote for the appointment process due to the substantial cost of holding a special election. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 4 Vice Mayor Nagales went over the process of calling a special election with City Attorney Woodruff. He indicated he was leaning towards supporting an appointment process. Councilmember Coleman agreed with the Vice Mayor and stated that special elections had a significantly less voter turnout. He agreed with public comment speakers that the person appointed should not run for City Council in November 2022. Mayor Addiego agreed with his colleagues’ comments and indicated that the City and County of San Francisco had recently asked an appointed member not to run in a future election. Vice Mayor Nagales inquired whether there would be any legal recourse should the person appointed change their mind about running for election in November 2022. City Attorney Woodruff stated the Council could make it clear to the applicants; however, there would be no recourse should they change their mind. The consensus of the Council was to move forward with an appointment process. CONSENT CALENDAR The Assistant City Clerk duly read the Consent Calendar: 4. Motion to approve the Minutes for the meetings of October 14, 2020, October 21, 2020 and October 27, 2020. 5. Report regarding Ritvik Kumar declining Housing Authority Commission appointment, and Luis Antonio Mercado’s continued service on the Commission until the next recruitment in Spring of 2021. (Rosa Govea Acosta, City Clerk, and Sky Woodruff, City Attorney) 6. Report regarding Resolution No. 183-2020 approving an Agreement between the City of South San Francisco and the San Mateo County Flood and Sea Level Rise Resiliency District for shared maintenance services of the Colma Creek Flood Channel. (Eunejune Kim, Public Works Director) 7. Report regarding adoption of Ordinance No. 1616-2020 amending Section 20.300.010 of the South San Francisco Municipal Code (“Performance Standards”) to include a reference to the local agency override process (Adena Friedman, Senior Planner). Motion — Councilmember Nicolas/Second – Councilmember Coleman: to approve Consent Calendar items 4-7 by roll call vote: AYES: Councilmembers Nicolas and Coleman, Vice Mayor Nagales and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. Vice Mayor Nagales recused himself from the meeting at 9:50 p.m. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 5 PUBLIC HEARING Public Hearing opened: 9:51 p.m. 8. Report regarding a public hearing on the Program Year 2019-20 (PY 19-20) Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant Program and adopting a resolution approving the PY 19-20 CAPER and authorizing its submittal to the U.S. Department of Housing and Urban Development (Heather Ruiz, Acting Community Development Coordinator) Acting Community Development Coordinator Ruiz presented the Consolidated Annual Performance and Evaluation Report (CAPER) for Program Year 2019-2020. She thanked the Community Development Block Grant (CDBG) Subcommittee and stated that HUD requires jurisdictions that receive CDBG funds to submit a year-end CAPER. The CAPER describes how the City utilized its CDBG funds to address the City’s housing and community development needs. It further compares the City’s accomplishments to the goals set in the PY 19-20 Annual Action Plan (AAP). The CAPER outlines the funded activities, residents served, and a comprehensive accounting of all CDBG funds. In PY 19-20, the City spent $595,666 in CDBG funding and $16,171 in HOME administrative funding received from the San Mateo County HOME Consortium. The City used these CDBG funds to support a number of programs including public services, home repair programs, and public improvements. There were one hundred forty nine (149) individuals served through the City’s public service programs, which provided foster youth services, rape trauma services, and other public services. Two hundred and thirty two (232) individuals either experiencing homelessness or at risk of homelessness were served through housing and homeless services providers. Twenty (20) persons received comprehensive fair housing services, including case investigations, consultations, and referrals through the City’s fair housing program. Twenty-six (26) households were served through the City’s housing rehabilitation programs through organizations like Rebuilding Together Peninsula, El Concilio of San Mateo County, and Center for Independence of Individuals with Disabilities. Additionally, a portion of CDBG funds went toward the Gardiner Park Renovation Project, which replaced the older play equipment and installed new rubberized safety surfacing. Councilmember Nicolas stated she was very pleased with all the assistance provided to the residents through the various programs and services. Councilmember Coleman stated he was excited to be joining the CDBG Subcommittee. Public Hearing closed: 9:59 p.m. Motion— Councilmember Nicolas/Second Councilmember Coleman: to approve Resolution No. 184-2020, by roll call vote: AYES: Councilmembers Nicolas and Coleman, and Mayor Addiego; NAYS: None; ABSENT: Vice Mayor Nagales; ABSTAIN: None. Vice Mayor Nagales rejoined the meeting at 10:00 p.m. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 6 ADMINISTRATIVE BUSINESS 9. Report regarding a resolution approving an Access and Permit agreement between the City of South San Francisco and the San Mateo County Flood and Sea Level Rise Resiliency District, and a resolution awarding a construction contract to Minerva Construction Inc. of San Francisco, California for the Orange Memorial Park Storm Water Capture Project (Project No. sd1801) in an amount not to exceed $8,747,430, authorizing a total construction budget of $11,371,659, and authorizing the City Manager to execute agreements on behalf of the City. (Bianca Liu, Senior Civil Engineer) Senior Civil Engineer Liu presented the report and provided background information on the Orange Memorial Park Storm Water Capture Project. The Project’s primary goal is to help the City and Caltrans comply with the Regional Water Quality Control Board’s (RWQCB) Municipal Regional Permit (MRP) which stipulates a regulatory limit requirement for trash, mercury and polychlorinated biphenyl (PCB) load reductions in waters flowing to San Francisco Bay. RWQCB had established minimum pollutant load reduction limits for each county and its cities and the MRP requires that a portion of the pollutant load reductions shall be through green infrastructure. The City subsequently entered a second Cooperative Implementation Agreement, No. D43CIASF0002 dated September 20, 2019, with Caltrans for a total amount of $6,000,000 which allowed for expansion of the Project to increase the amount of water quality treatment provided in terms of diversion, pretreatment, and infiltration capacity. The Project now includes a water capture facility at this site with 30 cubic feet per second diversion and over 1.8 million gallons of storage, which will capture and treat approximately fifteen percent of the average annual drainage volume in Colma Creek at the Project site, which provides regional benefits to both South San Francisco and additional areas in San Mateo County. The Project consists of constructing a diversion and treatment structure to re-direct and treat storm water runoff to remove trash, debris and sediment before storing the water in an underground, multi-chambered storage reservoir. The system will also provide water quality treatment and disinfection so that the water may eventually be used for irrigation in and around Orange Memorial Park. Senior Civil Engineer Liu presented Consultant Robert Dusenbury who provided details on the final design of the project. Councilmember Nicolas inquired about the project timeline. Mr. Dusenbury stated that the project would begin in February 2021 with an estimated completion date of April 2022. Senior Civil Engineer Liu provided an overview of the procurement methods, bid information, project budget, and construction schedule. Mayor Addiego thanked City staff and indicated he was very excited to get the project under construction as it had been many years in the making. Vice Mayor Nagales thanked City staff for all their work and asked that the community be informed about the construction. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 7 Councilmember Coleman suggested reaching out to the South San Francisco School District and thanked staff for the presentation. Councilmember Nicolas requested clarification on whose responsibility it was to ensure the forms complied with current regulations. Senior Civil Engineer Liu indicated it had been an oversite by staff; however, the form templates had since been updated to comply with current regulations. 9a. Resolution No. 185-2020 awarding a construction contract to Minerva Construction of San Francisco, California for the Orange Memorial Park Storm Water Capture Project (Project No. sd1801) in an amount not to exceed $8,747,430 and authorizing a total construction budget of $11,371,659. Motion— Vice Mayor Nagales/Second Councilmember Nicolas: to approve Resolution No. 185- 2020, by roll call vote: AYES: Councilmembers Nicolas and Coleman, Vice Mayor Nagales and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. 9b. Resolution No. 186-2020 approving and authorizing the City Manager to execute an Access and Permit Agreement between the City of South San Francisco and the San Mateo County Flood and Sea Level Rise Resiliency District for the Orange Memorial Park Storm Water Capture Project. Motion— Vice Mayor Nagales/Second Councilmember Nicolas: to approve Resolution No. 186- 2020, by roll call vote: AYES: Councilmembers Nicolas and Coleman, Vice Mayor Nagales and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. 10. Report regarding Resolution No. 187-2020 authorizing the City Manager to execute a consulting services contract amendment with Akel Engineering Group, Inc. of Fresno California for the Sewer Master Plan (ss1801) for $293,692 and authorizing Budget Amendment 21.028 to add $225,000 for a total project budget of $725,000. (Jason Hallare, Senior Civil Engineer) Senior Civil Engineer Hallare presented the report and provided background information on the Sewer Master Plan. The City of South San Francisco (City) prepared a Sewer Master Plan for the East of 101 area, and was currently in the process of preparing a Citywide Sewer Master Plan (ss1801) to include the West of 101 area. Akel Engineering Group, Inc. (Consultant) is the current design consultant for the City. Akel Engineering prepared the East of 101 Sewer Master Plan and was working on the Citywide Sewer Master Plan. As the study of the West of 101 sewer system nears completion, inflow and infiltration (I&I) is identified as the largest contributor to capacity issues among the sewer conveyance system and the Water Quality Control Plant (WQCP). I&I increases the sewer flows on the sewer conveyance system during storms as storm water inadvertently enters the sewer system. The added scope for the current project is to monitor the West of 101 sewer basins to determine which basins are the largest contributors to I&I introduced to the system. With this information, the City will determine future CIP projects that will be the most cost effective at reducing the Citywide I&I. This additional study will provide additional monitoring locations in order to focus I&I reduction efforts. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 8 The staff had worked with the Consultant to identify the added scope of sewer basin I&I flow monitoring and determined that the proposed added scope will be an appropriate and effective use of funds to inform future sewer infrastructure projects. The effort would monitor the sewer system during the rainy season (January-March), update the Citywide Sewer Master Plan study with I&I project lists and costs, and provide a Technical Memorandum by October 2021. Councilmember Nicolas requested clarification on awarding Akel Engineering Group, Inc. with an additional project and wanted to ensure it was the best option for the City. Senior Civil Engineer Hallare stated that it was the best option for the City given the time constraints. Mr. Akel provided further clarification on the project. Councilmember Coleman requested clarification on the instruments used to monitor the pipelines. Mr. Akel provided clarification on the meters used to monitor the pipelines. Motion— Councilmember Nicolas/Second Councilmember Coleman: to approve Resolution No. 187-2020, by roll call vote: AYES: Councilmembers Nicolas and Coleman, Vice Mayor Nagales and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. 11. Report regarding a Resolution No. 188-2020 approving and authorizing the City Manager to execute three agreements facilitating a Public Private Partnership with GTE Mobilnet of California Limited Partnership, d/b/a Verizon Wireless (Tony Barrera, Director of Information Technology) Director of Information Technology Barrera presented the report and provided background information on the project. The City of South San Francisco (City) is proposing to enter into three agreements relating to wireless and fiber optic facility deployments with Verizon, to achieve a public-private partnership (PPP). The PPP will allow new technologies and facilitate the installation of fiber optic and wireless infrastructure throughout the City to improve the quality of life for residents. The PPP is comprised of a Strategic Joint Development Agreement (SJDA), a Conduit Occupancy Agreement (COA), and a Small Cell Master License Agreement (MLA). The SJDA governs the overall structure of the PPP, and the COA and MLA sets forth the terms for fiber optic facilities and small cell wireless facilities deployment, respectively. Collaboration between the City and Verizon involves significant investment from Verizon to build required infrastructure to support the citizens living in the community, with the commitment by the City to reduce its pole attachment rate for small cell deployment on City-owned light poles and provide existing conduit space in City-owned conduits to accommodate Verizon’s wireline deployment. In return, through the proposed MLA and COA, the City will be able to receive payment for the use of its light poles, recover administrative costs associated with processing small cell applications and deployment, and retain control over the manner in which small cells and fiber optic cables are deployed on City property, including aesthetics and design of small cell facilities. The expansion of wireless and fiber optic infrastructure in the City would also beneficial to accommodate future advancements in technology and digital services. Vice Mayor Nagales inquired about the generated revenue stream. Director of Information Technology Barrera indicated he would need Verizon Wireless to provide the information. Vice Mayor Nagales proposed using the funds from the agreement to expand Wi-Fi throughout the City. REGULAR CITY COUNCIL MEETING DECEMBER 09, 2020 MINUTES PAGE 9 City Manager Futrell suggested approving the MLA tonight and allocating the funds in an upcoming financial report to Council. Motion— Councilmember Nicolas/Second Vice Mayor Nagales: to approve Resolution No. 188- 2020, by roll call vote: AYES: Councilmembers Nicolas and Coleman, Vice Mayor Nagales and Mayor Addiego; NAYS: None; ABSENT: None; ABSTAIN: None. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMNTS 12. C/CAG Committee Vacancies for Elected Officials. (Mayor) Vice Mayor Nagales requested the support of the City Council to represent the City of South San Francisco on the Association of Bay Area Governments (ABAG). The consensus of Council was to nominate Vice Mayor Addiego and Rick Bonilla. There was a consensus of the Council to nominate the following elected officials: Domestic Violence Council- Ruben Abrica Housing and Community Development Committee- Ron Collins and Donna Colson Local Agency Formation Commission- Ann Schneider San Mateo County Transportation Authority- Julia Mates and Carlos Romero Councilmember Coleman would like to revisit the handling of public comments at City Council meetings and requested the item be discussed at the next meeting. ADJOURNMENT Being no further business, Mayor Addiego adjourned the meeting at 11:03 p.m. Respectfully submitted by: Approved by: Cindy Avila Mark Addiego Assistant City Clerk Mayor Approved by the City Council: / / City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-06 Agenda Date:2/10/2021 Version:1 Item #:4. Report regarding a resolution authorizing the acceptance of $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation.(Jess Magallanes, Fire Chief) RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the acceptance of $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation. BACKGROUND/DISCUSSION The Fire Department received a donation from the South San Francisco Association of Firefighters Local 1507 Charity Foundation,a local non-profit organization that supports various community efforts such as holding breast cancer awareness programs,sponsoring burn victims’attendance at summer burn camps,hosting an annual pancake breakfast to support the local VFW,and assisting with the annual Holiday Toy Drive and other volunteering efforts. In December 2020,Fire,Police and other City Departments provided gift cards to approximately 675 children during the Holiday Food distribution.The overwhelming support from the community resulted in each child receiving a $35 gift card allowing them to shop for a toy of their choice. FISCAL IMPACT Funds from the Local 1507 Charity Foundation will be used to offset the cost of purchasing Toy Drive gift cards and other peripheral items,with any remaining monies being held as reserves to support like programs in the future. RELATIONSHIP TO STRATEGIC PLAN Acceptance of these donations supports Strategic Plan Priority #2: Quality of Life. CONCLUSION It is recommended that the City Council adopt a resolution authorizing the acceptance of $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation. City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-07 Agenda Date:2/10/2021 Version:1 Item #:4a. Resolution authorizing the acceptance of $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation. WHEREAS,the Fire Department received a donation from the South San Francisco Association of Firefighters Local 1507 Charity Foundation,a local non-profit organization that supports various community efforts such as holding breast cancer awareness programs,sponsoring burn victims’attendance at summer burn camps,hosting an annual pancake breakfast to support the local VFW,and assisting with the annual Holiday Toy Drive and other volunteering efforts; and WHEREAS,in December 2020,the Fire,Police and other City Departments provided gift cards to approximately 675 children during the Holiday Food distribution.The overwhelming support from the community resulted in each child receiving a $35 gift card allowing them to shop for a toy of their choice; and WHEREAS,funds from the Local 1507 Charity Foundation will be used to offset the cost of purchasing Toy Drive gift cards and peripheral items and reserves needed to support future programs. NOW THEREFORE BE IT RESOLVED by the City Council of the City of South San Francisco that it accepts $31,370.66 in donations from the South San Francisco Association of Firefighters Local 1507. ***** City of South San Francisco Printed on 2/11/2021Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-67 Agenda Date:2/10/2021 Version:1 Item #:5. Report regarding a resolution determining the continued existence of an emergency and the need to continue emergency repairs in response to the Sign Hill Diamond Fire.(Greg Mediati,Deputy Director of Parks and Recreation) RECOMMENDATION It is recommended that the City Council adopt a resolution determining the continued existence of an emergency and the need to continue emergency repairs in response to the Sign Hill Diamond Fire. BACKGROUND/DISCUSSION On October 16,2020 at 11:54 a.m.,a fire ignited on Sign Hill originating on the western section of the iconic letters.This was the third day of a regional Red Flag Warning with elevated temperatures,reduced humidity, and a steady easterly wind.The wind pushed the fire quickly to the west across the southern face of the hill through the grasses before spreading into the nearby tree groves.The incident commander realized the fire would grow quickly and structures would be threatened.Additional resources were immediately called to the scene to assist. In total,five alarms of fire apparatus from South San Francisco and nearby agencies responded to the emergency.Additionally,an agreement with California Forestry and Fire Department (CalFire)was utilized and provided the City with their associated aircraft,hand crews and wildland firefighting equipment for the incident.The fire burned for nearly three hours before being fully declared under control.Fire crews remained on site for over two days to ensure all hot spots were extinguished and embers would not reignite.Fortunately, the fire was kept to 16 acres and only caused minor property damage to three homes on Mountain Road,and no one was injured,thanks to the fuel load reduction and fire break work completed in recent years and the fire fighters great efforts. Immediately after the fire,the City Manager’s Office,Parks and Recreation Department,Fire Department and Public Works/Engineering staff met to discuss next steps to prepare the hill for the winter months.On October 22,2020,City Parks and Recreation staff completed a walkthrough and prepared an assessment of the state of the Sign Hill environment and trails to evaluate the scale of fire damage.Based on staff’s assessment,two phases of work were established -short term work to winterize the hill,remove hazards,and make it safe to reopen,and longer term work to expand on the ongoing fuel load reduction and maintain firebreaks on Sign Hill. Due to the emergent nature of the short term work to prepare Sign Hill for wet weather,and potential debris flows,falling trees,or the potential for future fire due to the buildup of fuel in the form of dead trees and brush, it was determined an emergency declaration was needed to expedite the work. At the November 24,2020 Regular City Council Meeting,the City Council adopted a resolution determining the existence of an emergency as a result of the Diamond Fire,and authorized emergency repairs.These repairs largely include the removal of more than 1,500 trees directly impacted by the Diamond Fire for a contract total not to exceed $900,000.Additionally,the City has executed a contract with Acacia Environmental ConstructionCity of South San Francisco Printed on 2/5/2021Page 1 of 3 powered by Legistar™ File #:21-67 Agenda Date:2/10/2021 Version:1 Item #:5. not to exceed $900,000.Additionally,the City has executed a contract with Acacia Environmental Construction to perform immediate slope stabilization and erosion mitigation work on newly exposed and vulnerable sloped areas for a contract total not to exceed $110,559. For historical context,it should be noted that on September 12,2018,the City Council adopted a resolution delegating authority to the City Manager to order any emergency action and enter into necessary contracts pursuant to the provisions and restrictions of Public Contract Code Section 22050. Tree Removals Davey Tree Experts began their work on December 3,2020 focusing on the area near the Ridge Trail known as Seubert Grove.At the time of drafting this report,this portion of the work is largely complete,and Davey Tree Experts is moving along the Ridge Trail.The next phase of work will focus on clearing the Iris Trail of any hazardous trees.In each of these areas,the trees being removed are largely being chipped on site to help with slope stabilization or are safely stockpiled for use in restoration efforts on the hill.Some tree trunks of twelve inches or greater in diameter may be left on the ground perpendicular to the slope of the hill.The smaller brush is being removed so as not to serve as potential fuel for the next fire season.This work is in accordance with CalFire forestry guidance. When these areas are made safe,the Parks Division will re-open trails on the hill and tree work will shift focus to trees adjacent to residences on the hill in a preventative effort for the dry season in 2021.The status of the trails on Sign Hill will be regularly updated on the City’s webpage under the Sign Hill link for residents to access closure information. Tree work is expected to continue through March 2021,until bird nesting season,and will resume in late summer after bird nesting season ends,consistent with the Migratory Bird Act which provides protections to bird habitat. Erosion Control Acacia Environmental Construction was contracted to perform the erosion control efforts on December 11, 2020.Staff met with Acacia’s project team on December 14 to discuss the project’s priorities and phases of work.Erosion control work began on December 28,2020,and consists of installation of check dams in drainage areas and culverts,fiber waddle installation on steep slopes,and hydro-seeding barren areas of the hill with a native seed blend,which in addition to the slope stabilization efforts will help re-establish the hill’s native grassland ecosystem.Additionally,tree stumps and root mass from felled trees will be left in place to help with slope stabilization. Mulch from removed trees is also being spread to lessen rain impacts. Acacia Environmental Construction has completed much of the erosion control work.Straw wattle and check dam installation was completed prior to the rain event during the week of January 25,2021.Hydro-seeding,and all other erosion control work will be completed by mid-February, weather permitting. Emergency Continuation Continuation of this emergency is necessary to continue the aforementioned work in response to the Diamond Fire and safely re-open the park as soon as possible.Terminating the work now would leave hundreds of hazardous trees in immediate proximity to paths of travel,and would halt efforts to mitigate any erosion concerns that winter storms could exacerbate. City of South San Francisco Printed on 2/5/2021Page 2 of 3 powered by Legistar™ File #:21-67 Agenda Date:2/10/2021 Version:1 Item #:5. As required by Public Contract Code section 22050(c)(1), this emergency tree removal and erosion control project will continue to be placed back on future regular City Council meeting agendas for the Council to review this emergency action and determine whether there is a need to continue the action, until such emergency repairs have been completed and the project terminated. Section 22050 requires the City Council determine the continuance of the emergency by “a four-fifths vote.” Adoption of the associated resolution authorizes the continuance of the emergency repair work to address the response to the Diamond Fire and related repairs. CONCLUSION Approving the resolution and adopting the findings will authorize the continuation of emergency repair work to address the hazardous conditions as a result of the Diamond Fire on Sign Hill.Staff recommends that the City Council determines that the emergency continues to exist and the emergency action,undertaken pursuant to the City Manager’s delegated authority, remains necessary. City of South San Francisco Printed on 2/5/2021Page 3 of 3 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-68 Agenda Date:2/10/2021 Version:1 Item #:5a. Resolution determining the continued existence of an emergency and authorizing procurement for emergency remediation work relating to fire damage on Sign Hill in South San Francisco. WHEREAS,on September 12,2018,the City Council adopted a resolution delegating authority to the City Manager to order any emergency action and enter into necessary contracts pursuant to the provisions and restrictions of California Public Contract Code Section 22050; and WHEREAS,on October 16,2020,a multi-alarm grass fire broke out on the western section of the iconic letters at Sign Hill in South San Francisco,where multiple recreational trails are located and frequently used by the public; and WHEREAS,the wind pushed the fire quickly to the west across the southern face of the hill through the grasses and spread into the nearby tree groves, killing hundreds of trees which now pose a public safety hazard; and WHEREAS, the fire burned over 16 acres of land and damaged a significant number of trees and trails; and WHEREAS,although the fire has been contained,the damaged trees have since become a falling hazard and trails remain severely damaged or destroyed,creating an extremely dangerous condition for the public and rendering the Sign Hill trails unsafe for trail users, and also required them to be closed to the public; and WHEREAS,at the November 24,2020 Regular City Council Meeting,the City Council adopted a resolution determining the existence of an emergency as a result of the Diamond Fire,and authorized emergency repairs including removal of more than 1,500 trees directly impacted by the wildfire; and WHEREAS,in order to remediate such dangerous conditions,City staff retained consultants and contractors to assess the scope of the damage,recommend corrective action,and undertake or contract for a substantial amount of tree removal and trail repair/remediation work in order to restore the trails and other features of Sign Hill to a safe condition as quickly as possible, and to subsequently re-open them to the public; and WHEREAS,pursuant to the aforementioned delegated authority,the City solicited for and executed a contract with Davey Tree Expert Company,for the emergency removal of more than 1,500 damaged or hazardous trees for a contract total not to exceed $900,000; and WHEREAS,in December 2020,the City solicited for and executed a contract with Acacia Environmental Construction,for the emergency mitigation of potential erosion hazards within fire damaged areas on Sign Hill; and City of South San Francisco Printed on 4/21/2021Page 1 of 3 powered by Legistar™ File #:21-68 Agenda Date:2/10/2021 Version:1 Item #:5a. WHEREAS,the dead trees and exposed slopes remain in a precarious and dangerous condition for the public and additional emergency mitigation work is still needed to eliminate the dangerous conditions. FINDINGS WHEREAS, the City Council of the City of South San Francisco hereby finds as follows: A.The above recitals are true and correct and incorporated herein by this reference. B.Pursuant to California Public Contract Code Section 20168,public interest and necessity demand the immediate commencement of the above-described work at Sign Hill in South San Francisco and the expenditure of public money for such work to safeguard life, health and property. C.Pursuant to California Public Contract Code Section 22050 and the authority delegated by the City Council on September 12,2018,and based on substantial evidence presented by the circumstances of the Sign Hill fire and City staff’s assessments,including but not limited to those from the City’s Fire,Police,and Parks &Recreation Departments,the staff report prepared concerning this resolution,and as set forth in this resolution,the City Manager would continue to be authorized to order emergency tree removal,trail repair and related work for the hazardous and threatening conditions at Sign Hill in South San Francisco. D.Terminating the above-described emergency work and let the remaining work at Sign Hill to competitive bidding would jeopardize public health,safety and welfare;risk additional damage to public and private property;and result in the public incurring additional expense,including,but not limited to,additional expense due to delay and further damage,due to the dangerous conditions of the falling trees and damage to trails and other features of the Sign Hill area and such work is necessary to respond to the emergency conditions at Sign Hill.Therefore,it remains that competitive bidding of such work would not produce an advantage for the public. E.Based on evidence presented in the record,the above-described emergency work continues to be statutorily exempt from the requirements of the California Environmental Quality Act (CEQA)pursuant to CEQA Guidelines Section 15269, subparagraphs (b) and (c). NOW,THEREFORE,the City Council of the City of South San Francisco hereby does resolve,by at least a four-fifths vote, as follows: 1.The above recitals and findings are true and correct and hereby declared to be findings of the City Council of the City of South San Francisco. 2.The emergency conditions at Sign Hill in South San Francisco continue to exist and threaten public health,welfare and safety;thus,emergency repair work continues to be necessary to address the hazardous and threatening conditions of the falling trees and destructed trail improvements.The emergency work described in this resolution continues to be exempt from California Public Contract Code competitive bidding requirements pursuant to California Public Contract Code Sections 20168 and 22050. 3.The City Council continues to authorize City staff to procure contracts for the emergency work City of South San Francisco Printed on 4/21/2021Page 2 of 3 powered by Legistar™ File #:21-68 Agenda Date:2/10/2021 Version:1 Item #:5a. 3.The City Council continues to authorize City staff to procure contracts for the emergency work described in this resolution and the City Manager to execute such contracts on behalf of the City,as approved to form by the City Attorney, and to take any other related action necessary to further the intent of this Resolution. 4.City staff is directed,in accordance with California Public Contract Code Section 22050(c)(1),to place on future regular agendas of the City Council an item concerning the emergency work authorized pursuant to this resolution so that the City Council may determine,by at least a four-fifths vote,whether there is a need to continue the emergency work described above or whether such work may be terminated. 5.This resolution shall become effective immediately. 6.Each portion of this resolution is severable.Should any portion of this resolution be adjudged to be invalid and unenforceable by a body of competent jurisdiction,then the remaining resolution portions shall be and continue in full force and effect,except as to those resolution portions that have been adjudged invalid.The City Council hereby declares that it would have adopted this resolution and each section,subsection,clause, sentence,phrase and other portion thereof,irrespective of the fact that one or more section,subsection,clause sentence, phrase or other portion may be held invalid or unconstitutional. ***** City of South San Francisco Printed on 4/21/2021Page 3 of 3 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-85 Agenda Date:2/10/2021 Version:1 Item #:6. Report regarding a resolution authorizing the filing of grant application(s)for all CalRecycle grants for which the City of South San Francisco is eligible and for the resolution authorizing on its behalf the submittal of grant application(s)by a lead agency for which the City of South San Francisco is eligible.(Eunejune Kim,Director of Public Works) RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the filing of grant application(s) for all CalRecycle grants for which the City of South San Francisco is eligible and for City Council to adopt a resolution authorizing on its behalf the submittal of grant application(s)by a lead agency for which the City of South San Francisco is eligible. BACKGROUND/DISCUSSION It is recommended that the City Council adopt a resolution authorizing the filing of a grant application(s)for California Department of Resources Recycling and Recovery (CalRecycle)funds as part of their Rubberized Pavement Grant Program for Fiscal Year 2020-21.The purpose of the grant is to promote markets for Rubberized Asphalt Concrete (RAC)products with crumb rubber derived from only California-generated waste tires.The program is designed to encourage first-time or limited users of rubberized pavement in two project types - RAC Hot-Mix and Rubberized Chip Seal. City staff have discussed partnering with City of Brisbane on a Joint application in order to help meet minimum quantities set out in the CalRecycle Grant.The City of Brisbane will be bringing a similar resolution to their city council later this month.If the partnership with the City of Brisbane does not materialize,City staff will apply for an individual grant for use in the City’s pavement program. The maximum available grant award for individual application is $250,000. The maximum available grant award for joint application is $350,000. The City of South San Francisco is eligible for the CalRecycle fiscal year 2020-21 Rubberized Pavement Grant Program offering the following reimbursement rates for Tier 2 applicants. Tier 2 Applicant Reimbursement Rates for RAC and Chip Seal Grants: Chip Seal (minimum of 40K SY)(0 - 5 previous grants)$1 per square yard RAC - 1 (up-to 25K tons)(0 - 1 previous grants)$20 per ton For a Joint Application, the City of Brisbane and the City of South San Francisco propose installing: Brisbane 26,500 square yards Rubberized Chip Seal South San Francisco 14,500 square yards Rubberized Chip Seal South San Francisco 2,700 tons of Rubberized Asphalt Concrete City of South San Francisco Printed on 2/5/2021Page 1 of 2 powered by Legistar™ File #:21-85 Agenda Date:2/10/2021 Version:1 Item #:6. For an Individual Application, the City of South San Francisco proposes installing: South San Francisco 2,700 tons of Rubberized Asphalt Concrete The authorizations to file CalRecycle grant applications will be effective for five (5)years from the date of adoption of each resolution. FISCAL IMPACT A successful grant application award has the potential to award the City of South San Francisco $68,500 for a joint application and $54,000 for an individual application.Adopting these resolutions will authorize the Finance Director to amend the FY 2020-21 revenue budget upon receipt of funds from CalRecycle.Payments will be distributed in June-July 2021. Funding for these improvements are included in the approved Capital Improvement Program budget for the Pavement Rehabilitation Project (st2106), as part of the City’s Pavement Management Plan. RELATIONSHIP TO STRATEGIC PLAN Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maintaining and improving infrastructure to serve the public.And CalRecycle program funds supports Strategic Plan outcome to Build and Maintain a Sustainable City by incorporating recycled rubber into our pavement management program. CONCLUSION Staff recommends the City Council authorize the submittal of application(s)to CalRecycle for all grants for which the City of South San Francisco is eligible. It is recommended that the City Council adopt two resolutions authorizing the filing of an application for CalRecycle funds allocated through the State of California to support pavement management program and authorize the Finance Director to amend the FY 2020-21 revenue budget upon receipt of funds.Receipt of these funds will enable the Public Works Department to utilize Rubberized Asphalt Concrete in the upcoming pavement management program, to the benefit of the community and the environment. Attachments: 1.CalRecycle Rubberized Pavement Grant Program Application Guidelines and Instruction,Fiscal Year 2020-21 City of South San Francisco Printed on 2/5/2021Page 2 of 2 powered by Legistar™ Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 1 January 2021 Department of Resources Recycling and Recovery Rubberized Pavement Grant Program Application Guidelines and Instructions Fiscal Year 2020–21 Revised January 11, 2021 Attachment 1 Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 2 Table of Contents Grant Cycle Overview ....................................................................................................... 3 Timeline ............................................................................................................................ 4 Eligible Applicants ............................................................................................................ 4 Joint Application Requirements ........................................................................................ 5 Joint Powers Authority Application Requirements ............................................................ 6 Eligible Projects ................................................................................................................ 6 Available Funds ................................................................................................................ 7 Grant Term ....................................................................................................................... 8 Eligible and Ineligible Costs .............................................................................................. 8 Tire-Derived Aggregate (TDA) Training Course Requirement .......................................... 9 Vehicle and Equipment Fleet Requirement: Tire Maintenance ......................................... 9 Environmentally Preferable Purchases and Practices Policy Requirement .................... 10 Inducement for Furthering Specific CalRecycle and Environmental Goals ..................... 10 Question-and-Answer Process ....................................................................................... 13 Public Records Requests ............................................................................................... 13 Confidentiality ................................................................................................................. 13 Application Instructions ................................................................................................. 15 Application Access ......................................................................................................... 15 GMS Tabs - Application Contents and Instructions ........................................................ 15 Summary Tab .............................................................................................................. 15 Applicant/Participant Tab ............................................................................................. 16 Detail Tab .................................................................................................................... 16 Contacts Tab ............................................................................................................... 19 Budget Tab .................................................................................................................. 19 Documents Tab ........................................................................................................... 19 Application Submittal and Deadline ................................................................................ 19 Application Documents .................................................................................................. 20 Electronic and Original Signatures ................................................................................. 20 CalRecycle Documents .................................................................................................. 20 Application Certification ............................................................................................... 20 Applicant’s Documents ................................................................................................... 20 Tire-Derived Aggregate (TDA) Training Course Requirement ..................................... 21 Inducement for Furthering Specific CalRecycle and Environmental Goals .................. 21 Resolution.................................................................................................................... 21 Joint Powers Authority Agreement .............................................................................. 22 Letter of Commitment .................................................................................................. 22 Letter of Designation ................................................................................................... 23 Letter of Authorization ................................................................................................. 23 Grant Review and Award Process ................................................................................. 24 Grant Application Review Process ................................................................................. 24 Grant Award Process ..................................................................................................... 24 Grant Award Conditions ................................................................................................. 25 Grant Program Administration ....................................................................................... 26 Grant Agreement ............................................................................................................ 26 Reporting Process .......................................................................................................... 26 Payment Request Process ............................................................................................. 26 Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 3 Grant Cycle Overview The Department of Resources Recycling and Recovery (CalRecycle) offers the Rubberized Pavement (Pavement) Grant Program pursuant to Section 42872, 42872.1, and 42873 of the Public Resources Code. The purpose of the grant is to promote markets for Rubberized Asphalt Concrete (RAC) products with crumb rubber derived from only California-generated waste tires. The program is designed to encourage first- time or limited users of rubberized pavement in two project types – RAC Hot-Mix and Rubberized Chip Seal. This resource document provides applicants with instructions to access and complete the application online and information about grant administration . The web-based application is in CalRecycle’s Grants Management System (GMS) (https://www.calrecycle.ca.gov/Funding/GMS/). You will need to sign into GMS to complete and submit an application. Note: The following terms used in this document are defined below, unless the context clearly indicates otherwise:  “Applicant” refers to either the legal name of the entity that is legally responsible for grant administration, if awarded, or to a person who is completing an application on behalf of the Applicant (this is usually the primary contact listed on the application, but could also be the secondary contact, signature authority, or consultant).  “You” refers to a person who is completing the application on behalf of the Applicant. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 4 Timeline Table 1. Timeline Date Activity January 13, 2021 February 3, 2021 Question and Answer Period Due Date  Applicants or interested parties may submit questions from the application release date to this date.  Applicants or interested parties must submit questions by email. January 20, 2021 February 10, 2021 Question and Answer Posted  CalRecycle will post all answers to questions on the CalRecycle website that were submitted during Question and Answer Period. February 3, 2021 February 22, 2021 Application Due Date  Applications must be submitted in GMS by 11:59 p.m. on this date  Customer service will be available until 4:00 p.m. on this date  Approved Resolution must be uploaded in GMS by this date  Applicant must have an Environmentally Preferable Purchasing and Practices (EPPP) Policy by this date March 2021 Grants Awarded CalRecycle considers funding recommendations, and if approved, conditionally awards grants during this month (tentative) April 1, 2023 Grant Term Notice to Proceed to this date Final Report and final Payment Request Deadline Eligible Applicants California Labor Code section 1782 prohibits a charter city from receiving state funding or financial assistance for construction projects if that charter city does not comply with Labor Code sections 1770-1782. If any applicants or participating jurisdictions are charter cities or joint powers authorities that include charter cities, the lead participating jurisdiction must certify on the Detail tab of the application that Labor Code section 1782 does not prohibit any included charter city from receiving state funds for the project described in this application. If it is determined after award that an applicant or participating jurisdiction is a charter city prohibited from receiving state funds for this grant project, the grant will be terminated and any disbursed grant funds shall be returned to CalRecycle.  Local Governments (cities, counties, and cities and counties) as defined in Public Resources Code section 48617.  Other local governmental agencies (including regional park districts, special districts, and Joint Powers Authorities (JPA) [where all JPA members are also otherwise eligible applicants]). Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 5  Qualifying Indian Tribes. A “Qualifying Indian Tribe” is defined as an Indian tribe, band, nation or other organized group or community, residing within the borders of California, which: (1) Is recognized for special programs and services provided by the United States to Indians because of the status of its members as Indians; or (2) Can establish that it is a government entity and which meets the criteria of the grant program.  State agencies (including offices, departments, bureaus, and boards). State agencies are only eligible for projects for Class 1 bikeways, greenways, and disability access at parks – see Eligible Projects for specific limitations. Applicants (and participating jurisdiction if a joint application) may not apply for and receive grants in consecutive fiscal years (i.e., if you received a grant using FY 2019-20 funds, you are not eligible to apply in FY 2020-21). For Individual Applications only (not Joint Applications): If you have received six total grants under the Targeted RAC Incentive Grant Program, RAC Use Grant Program, and/or Pavement Grant Program for hot-mix projects, you are no longer eligible to receive grants for hot-mix projects, but may be eligible for grants to fund chip seal projects. If you have received six total grants under the Chip Seal Grant Program and/or Pavement grants for chip seal projects, you are no longer eligible to receive grants for chip seal projects, but you may still be eligible for grants to fund hot -mix projects. If you have reached the limit for both types of grant projects, you are no longer eligible to receive Pavement grants from CalRecycle. Joint Application Requirements Local governments may join together in a joint grant application in which two or more eligible entities join together to implement the grant. A Lead Participant (Lead) must be designated to act on behalf of all participating entities. The Lead is the applicant, and if awarded, will be the grantee responsible for the performance of the grant and all required documentation. CalRecycle will direct all official correspondence and grant payments to the Lead. Lead must reimburse participating jurisdiction(s), then submit payment request to CalRecycle for reimbursement. Note: An entity may not submit an individual application if that entity is also a participant of a joint application. CalRecycle understands that it may be beneficial for two (or more) entities or jurisdictions to combine road pavement projects in order to achieve economies of scale and a lower overall cost to taxpayers. Accordingly, an eligible applicant may apply as a Lead for a hot-mix and/or chip seal project(s) to perform work in its own jurisdiction as well as one or more additional eligible jurisdiction(s) if:  The work is performed subject to a written agreement (a contract or Memorandum of Understanding – MOU) between the Lead and participating jurisdiction(s) (an executed copy of the agreement and authorizing Resolutions [if applicable] must be provided to CalRecycle).  The participating jurisdiction(s) must provide either Resolution(s) or a Letter(s) of Authorization from the City Manager (or other authorized individual) to participate in the project(s), subject to the written agreement. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 6  The participating jurisdiction(s) is/are encouraged, but not required, to have in place (or adopt, as appropriate) an Environmentally Preferable Purchasing and Practices Policy.  The Lead is responsible for compliance with all terms and conditions of the grant, including but not limited to construction/paving activities within the participating jurisdiction(s).  The projected reimbursement cannot exceed 80% of the total grant award for material used in a single jurisdiction, whether that jurisdiction is the Lead or a Participant. If at the end of the grant, more than 80% of the reimbursed material (by value) was used in a single jurisdiction, CalRecycle may treat the grant as if it were an individual grant and adjust the reimbursement rate and maximum amount as if that jurisdiction had applied individually.  Grant reimbursement will be made [based on reimbursement per ton for hot-mix project(s) or per square yard for chip seal project(s)] to the Lead. Joint Powers Authority Application Requirements Joint Powers Authorities (JPA) may submit a grant application as an individual applicant. The JPA must upload a copy of its JPA Agreement that: 1. Give authority over public roadway construction projects. 2. Lists all member entities. 3. Contains the signature of all members. Members of the JPA are also eligible to apply individually, as long as they are seeking funds for projects within their own jurisdiction and not for projects that are part of the JPA’s application. Eligible Projects An application may include rubberized pavement (hot-mix and chip seal) projects for roadways, Class 1 bikeways [as defined in Streets and Highways Code section 890.4(a)], greenways, and disability access at parks. A greenway is a travel corridor for pedestrians, bicycles, non-motorized vehicle transportation, recreation, or a combination thereof, located along natural landscape features, such as an urban watercourse. State agencies are eligible only for projects for Class 1 bikeways, greenways, and disability access at parks. All projects are subject to the following requirements:  The grantee will construct one or more Rubberized Asphalt Concrete (RAC) Hot- Mix or Rubberized Chip Seal project(s) at the location(s) specified in the approved grant application, unless otherwise approved by the Grant Manager.  Only California-generated waste tires, processed in California, shall be used in the crumb rubber portion of the project(s). Recycled end-of-life crumb rubber that meets all specifications and standards can be used, as appropriate with prior written permission from the Grant Manager.  The project(s) must be located in California.  Projects must be owned and maintained by the applicant and accessible to the general public.  Reimbursement will not exceed the amount stated on the Grant Agreement Cover Sheet (CalRecycle 110). Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 7  Construction of the RAC portion of any project must commence on or after the date indicated in the Notice to Proceed and be completed by April 1, 2023.  The binder material must contain a minimum of 300 pounds (equivalent to 15 percent by weight) of the tire-derived crumb rubber per ton of rubberized binder. The binder may be either asphalt rubber/field blend or terminal blend. Additionally, the following are project requirements specific to the project type indicated:  Hot-Mix Project: Project(s) must use a minimum of 2,000 tons of RAC hot-mix.  Chip Seal Project: Project(s) must use a minimum area of 40,000 square yards of chip seal material. Because of the amount of paving material used, local government and Qualifying Indian Tribe applicants may combine projects for Class 1 bikeways, greenways, and disability access at parks with eligible roadway projects in order to satisfy Program minimums. If a majority of the request is for a greenway project(s) and the applicant entity has a median household income 80 percent or less of the statewide median household income, please indicate such in the Project Summary/Statement of Use field, located in the Detail tab of your application. Available Funds  $4,387,000 is available for this grant cycle, fiscal year 2020–21, subject to funding availability.  $250,000 is the maximum available for individual grant awards.  $350,000 is the maximum available for the joint grant award, subject to funding availability. The funding of project(s) is based on the amount of RAC material proposed, the applicant’s county, and number of previous CalRecycle RAC/Pavement grants received. The maximum grant award for hot-mix and/or chip seal project(s) is $250,000. The maximum grant award, if applying as a joint applicant, shall not be greater than $350,000. If a joint applicant includes projects in both a Tier 1 and Tier 2 county, the county with projects representing the greatest dollar amount shall determine the grant category. If the amount is equal, the application shall be consi dered Tier 1. The Lead or a participating jurisdiction is limited to no more than $250,000 of the grant award. RAC Hot-Mix (Hot-Mix) Project(s): Grant awards are calculated on a base rate of $10 or $20 per ton of RAC hot-mix, depending on the applicant’s county, and are adjusted depending on the number of previous Rubberized Pavement grants. See Available Funds section for specific categories and reimbursement rates. Rubberized Chip Seal (Chip Seal) Project(s): Grant awards are $0.50 or $1.00 per square yard of rubberized chip seal material proposed, depending on the applicant’s county. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 8 Table 2. Rubberized Pavement Grant Program Categories and Reimbursement Rates Grant Category1 Number of Previous RAC/Chip Seal Grants2 Tier 1 (Applicants in the following counties: Los Angeles, Orange, Riverside, San Bernardino, and Ventura) Tier 2 (Applicants in all counties not in Tier 1) RAC – 13 0 – 1 $10 per ton $20 per ton RAC – 2 2 – 3 $7 per ton $14 per ton RAC – 3 4 – 5 $4 per ton $8 per ton Chip Seal3 0 – 5 $0.50 per square yard $1 per square yard Grant Term The Grant Term begins on the date that CalRecycle sends the Notice to Proceed email. The Grant Term ends on April 1, 2023. For detailed information about requirements within the grant term, refer to the Procedures and Requirements document. Eligible and Ineligible Costs Grantees may incur eligible costs only during the Grant Term. For detailed information about eligible and ineligible costs, refer to the Procedures and Requirements document. 1 To categorize the request, if an applicant requests funding for both hot-mix and chip seal projects, the material type used which represents the greatest dollar amount shall determine the grant category. If amounts are equal, the application will be considered in the appropriate RAC category. 2 RAC Grants include grant numbers beginning with RAC, TRI, and/or TRP. Chip Seal Grants include grant numbers beginning with TCS and/or TRP. To determine the number of previous grants, please visit our web site under the Grant and Payment Reports (https://www2.calrecycle.ca.gov/Funding/Grants/ByCounty) and select your county and “Tire Recycling Grants” in the Grant Category menu. Please note that the list includes withdrawn grants and are included in the total number. Refer to a grant specific contact (https://www.calrecycle.ca.gov/Funding/GMS/Contacts), if you have questions as to whether a previous grant was withdrawn and/or if you are unsure of your jurisdiction’s number of previous grants. 3 Applies to Joint Applications. Participation in a joint application will not count as a grant when considering future grant awards. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 9 Tire-Derived Aggregate (TDA) Training Course Requirement A key goal of CalRecycle’s tire programs is the recycling and use of waste tires in other products/uses, including the use of tire-derived aggregate (TDA). In an effort to educate and encourage the use of TDA, all applicants are required to take a free online training course that covers the basic properties and uses of TDA. The course will take approximately 1-2 hours to complete (including a quiz). After successfully taking the quiz, the applicant will be provided a training certificate showing course completion. An applicant’s public works department head (or designee) of engineering, design, transportation, environmental or sustainability division (subject to a minimum of one) is required to take the course. If the individual taking the course is other than those listed as contacts in the application, you must indicate their name and title in the Project Summary/Statement of Use field under the Detail tab of GMS (https://secure.calrecycle.ca.gov/Grants/SignIn.aspx?ReturnUrl=%2fGrants). The training course (https://ce.ecst.csuchico.edu/LMS/) is available online. New users will need to create an account and complete the course titled Certificate on Using Tire Derived Aggregate in Civil Engineering (https://ce.ecst.csuchico.edu/LMS/course/view.php?id=4). You will need to use Enrollment Key: TDA@CalRecycle20 when prompted, in order to enroll in the course. Please email dxcheng@csuchico.edu or William.Heung@calrecycle.ca.gov for questions regarding the website or issues with registration. For your convenience, instructions to self-register is provided on the Summary Tab under Resource Documents section of GMS (https://secure.calrecycle.ca.gov/Grants/SignIn.aspx?ReturnUrl=%2fGrants) and within the login website. Applicants who have successfully completed the course must certify to this fact on the Detail Tab of the application and upload the training certificate by February 3, 2021 February 22, 2021. Otherwise, the application will be disqualified. Vehicle and Equipment Fleet Requirement: Tire Maintenance The highest level on the waste management hierarchy is source reduction. One of the simplest ways to protect tire life is to ensure proper management practices that prevent excessive wear and premature failure. As an eligibility requirement, applicants (and participating entities if a joint application) are required to develop and implement vehicle/equipment fleet tire best management practices for their organizations. The list below includes examples of common vehicle and equipment best management practices that are used to maximize fleet tire life: 1. Planning for preventative maintenance  Checking and maintaining tire pressure with routine tire inspections  Assessing regularly vehicle and equipment condition  Analyzing fuel efficiency  Preparing for overhead and vehicle maintenance costs 2. Keeping information and safety systems updated and modernized 3. Making tire maintenance training programs mandatory for all fleet personnel Applicants must certify on the Detail Tab of their application that their organization Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 10 acknowledges and implements these types, or other applicable, fleet management practices that maximize fleet tire life. Otherwise, the application will be disqualified. Environmentally Preferable Purchases and Practices Policy Requirement Consistent with CalRecycle’s core values, CalRecycle requires all applicants to have or develop, adopt, and implement an Environmentally Preferable Purchasing and Practices (EPPP) Policy for their organizations. Applicants must have an EPPP Policy in place prior to submitting their application must certify to this fact on the Detail tab in the application. Some additional practices that CalRecycle encourages organizations to include in their EPPP Policies include:  Buildings and Grounds o All building and renovations follow the green building practices for design, construction and operation, where appropriate, as described in the Leadership in Energy and Environmental Design Green Building Rating System (https://www.usgbc.org/resources/leed-v4-building-design-and- construction-current-version).  Continual Improvement o Training is provided to new and existing employees. o Organization regularly evaluates and/or improves implementation of EPPP policy. Additional EPPP Policy resources include:  Tools and Resources (https://www.calrecycle.ca.gov/EPP/Resources/)  Laws and Policies (https://www.calrecycle.ca.gov/EPP/LawPolicy/)  Responsible Purchasing Network (http://www.responsiblepurchasing.org/purchasing_guides/all/policies/) Note: In Joint Applications, the lead and the participants will each need an EPPP Policy. If a Joint Powers Authority (JPA) applies, only the JPA needs an EPPP Policy. For more information, visit the EPPP Frequently Asked Questions web page (https://www.calrecycle.ca.gov/Funding/EPPPQandA). Inducement for Furthering Specific CalRecycle and Environmental Goals Many eligible applicants have strong environmental programs and should be rewarded for their leadership for either committing to the evaluation of materials/products or adopting policies that further specific CalRecycle and environmental goals. Other eligible applicants may be considering improving their environmental efforts and would appreciate an additional inducement. In an effort to both reward environmental leadership and encourage others to improve their environmental programs, CalRecycle will provide a ranking inducement under the following conditions. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 11 A. An applicant commits to objectively review and evaluate one or more of the following:  The use of RAC either as asphalt rubber hot mix or rubberized chip seal in all applicable road projects.  The use of TDA in appropriate civil engineering projects.  The institutional use of retread tires for its vehicle and equipment fleet. This commitment must be substantiated by submitting a letter from the Signature Authority. The Letter should include evaluating eligible projects on a life cycle (as opposed to a first cost) basis, alternative bids or other acceptable approaches. CalRecycle staff will evaluate the proposed evaluation process and methodology (described in the Letter) to determine whether it is acceptable for the inducement. B. An applicant adopts one of the following policies or procedures by submitting a Board Resolution, Administrative Process/Procedure, or equivalent document. a. RAC is the default material for the surface course on appropriate roadways. The applicant may consider including the following components in the document. 1. Bidding and placement, especially for relatively small pavement projects, should be combined with other projects whenever possible to try to achieve reduced costs. 2. Capital and maintenance projects should be scheduled whenever weather and temperatures are appropriate for RAC placement. 3. Warm Mix Asphalt (WMA) technologies should be used, when appropriate, to extend the construction temperature window. 4. WMA technologies should be used, whenever possible, to reduce Greenhouse Gases (GHG). 5. Crumb Rubber Modifier (CRM) used must be derived from only California-generated waste tires, processed in California by a registered waste tire processor. 6. Binder material must contain a minimum of 15 percent (by weight) CRM. 7. Describe the rationale, process and authority for approving an exception to the adopted policy/procedure. 8. Provide transparent tracking of all pavement projects, the evaluation of paving material applied and documentation of exceptions to the adopted policy/procedure. b. TDA is the default material for appropriate aggregate projects in the following categories.  Mechanically Stabilized TDA (retaining walls)  Low Impact Development (storm water mitigation measures including storm water infiltration galleries)  Lightweight fill (slope stabilization, embankment fill, landslide repair, and retaining walls)  Vibration Mitigation (under rail lines)  Landfill application projects (aggregate replacement projects such as leachate and gas collection systems, drainage layers, leachate injection). Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 12 The applicant may consider including the following components in the document. 1. Bidding and placement, especially for relatively small pavement projects, should be combined with other projects whenever possible to try to achieve reduced costs. 2. Only California-generated waste tires, processed in California, will be used in the TDA portion of the project(s). 3. Describe the rationale, process and authority for approving an exception to the adopted policy/procedure. 4. Provide transparent tracking of the (above) five categories of aggregate projects, the evaluation of conventional or alternative material applied and documentation of exceptions to the adopted policy/procedure. c. Retread tires will be used for all appropriate fleet vehicles and equipment. The applicant may consider including the following components in the document. 1. Maintain a written and understood vehicle/equipment fleet management practices (described in the Vehicle and Equipment Fleet Requirement section above). 2. Specify which vehicles/equipment are able to use retread tires and in what position. 3. Identify when a tire should be pulled from service based on tire position, tread depth, usage, etc.. 4. Quantify how many times a quality casing should be retread based on usage, age and condition. 5. Develop standards for the tire type, quality and position of new retread tires. 6. Provide training for all involved staff from drivers to managers. 7. Describe the rationale, process and authority for approving an exception to the adopted policy/procedure. 8. Provide transparent tracking of compliance regarding tire and retread tire use and documentation of exceptions to the adopted policy/procedure. In 2021, CalRecycle will conduct a retread tire education program. All applicants requesting an inducement for retread tires will be contacted and should participate in the training. Applicants that wish to receive a ranking inducement must indicate compliance with the condition and may certify to this fact on the Detail Tab of the application. A copy of the Letter or the policy/procedure must be uploaded in GMS (https://secure.calrecycle.ca.gov/Grants/SignIn.aspx?ReturnUrl=%2fGrants) by February 3, 2021 February 22, 2021. The ranking inducement for an applicant committing to evaluate the use of the above specified materials/products will only be allowed once. The ranking inducement for an applicant that adopts an appropriate policy or procedure will be ongoing unless the Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 13 policy or procedure is not being implemented. Implementation of the policy or procedure, and future inducement consideration, is subject to verification and approval by CalRecycle at the time of application. For detailed information about the ranking process, refer to the Grant Application Review Process Section (page 24). Note: A ranking inducement does not guarantee funding nor increase the reimbursement rate or amount. It does increase an applicant’s chances of being awarded in an oversubscribed situation. Question-and-Answer Process Questions regarding the application and its requirements must be emailed to tiregrants@calrecycle.ca.gov. CalRecycle must receive the questions by January 13, 2021 February 3, 2021 or the questions will not be accepted. CalRecycle may post the Questions and Answers periodically during the Questions and Answers period. Applicants or interested parties may access the Questions and Answers web page from the Notice of Funds Available web page or from the application. CalRecycle may group together similar or related questions or re-word them for clarity, and respond to them as one question. CalRecycle will post all Questions and Answers approximately two weeks after the deadline. The posted Questions and Answers are subject to updates. It is the applicant’s responsibility to check the Questions and Answers web page for the latest information. Public Records Requests It is the policy of CalRecycle to make records requested by the public promptly available in accordance with the laws governing disclosure of records and information to the public. In general, all records in the possession of a state agency are public records subject to disclosure, unless a law provides that a particular kind of record or information is not a public record or is exempt or prohibited from disclosure. Upon request, the entire contents of the submitted application are subject to public records requests. This may include contact information, project summary, uploaded documents, and scoring information. Public records may be requested from CalRecycle through the California Public Records Act Requests web page (https://www2.calrecycle.ca.gov/Forms/ContactUs/PublicRecordsRequest/). Confidentiality The following describes the treatment of certain confidential or proprietary information under the California Public Records Act (Government Code 6250, et seq.) and related regulations. It also describes how questions are resolved on whether information is truly confidential, the legal protections for confidential information, and internal and program procedures to maintain confidentiality. Confidential or Proprietary Information Title 14 of the California Code of Regulations (14 CCR), sections 17041-17046 (https://www.calrecycle.ca.gov/Laws/Regulations/Title14/), states that confidential or proprietary information shall include, but is not limited to: Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 14  Personal or business-related financial data, customer client lists, supplier lists and other information of a proprietary or confidential business nature provided by persons in applications, reports, returns, certifications or other documents submitted to [CalRecycle] which if released would result in harmful effects on the person’s competitive position  Tax information prohibited from disclosure, pursuant to the Revenue and Taxation Code Accordingly, appropriate documents submitted with an application that are clearly marked, on each page, “confidential or proprietary information” will be treated by CalRecycle pursuant to the procedures set forth in 14 CCR sections 17041-17046. However, the law does not treat documents marked as “confidential or proprietary information” (such as sales brochures, promotional literature and other general non - financial documents) as confidential if they do not fall within the categories of protected financial documents listed above. What if there is a question about what is confidential? If CalRecycle receives a request to disclose data claimed by the applicant to be confidential, CalRecycle would notify the applicant of the request and state that the documents were under review to determine whether information was correctly identified as “confidential.” If there was any question as to whether specific information was confidential, CalRecycle would contact the person(s) identified in the application to provide a justification and statement why the information is confidential. The process for evaluating confidentiality claims is set forth in section 14 CCR 17046. What program procedures will keep information confidential? Financial information will be evaluated and analyzed only by CalRecycle staff, kept confidential, and will be maintained with restricted access. Grantee businesses agree to provide specific key financial information for three years to develop benchmarks to evaluate the program. Records no longer needed to provide the services offered under the grant program are periodically destroyed, when allowed by audit policies and state law. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 15 Application Instructions Application Access The application is available in CalRecycle’s web-based Grants Management System (GMS). Access to GMS is secure; therefore, you must have a CalRecycle WebPass to log in to the system. Those who have not previously obtained a CalRecycle WebPass can create an account at the CalRecycle WebPass page (https://secure.calrecycle.ca.gov/WebPass/). To start an application: 1. Log in to GMS (https://secure.calrecycle.ca.gov/Grants). 2. Select Apply for a Grant on the left.  All open grant cycles are displayed in a table. 3. Find Rubberized Pavement Grant: TRP13: FY 2020–21 and select Start Application.  A pop-up window will appear asking for contact information. If you have an existing GMS Account, the information may be auto populated.  GMS will automatically add you as the Primary Contact for the new grant application however, you may update this later. 4. Click Save. GMS Tabs - Application Contents and Instructions The components of the application are divided into tabs. To fill out an application, click on each tab and complete the sections in each tab as required. General directions are on the top of each tab and detailed information about the requirements for each tab is listed below. The applicant is responsible for a complete application. This includes signing documents, uploading required documents, and submitting the application by the due date(s). Failure to do so will result in disqualification from the Rubberized Pavement grant program. Examples of disqualifications may include:  Applicant does not meet the eligibility requirements.  Project is not eligible.  Applicant fails to use required CalRecycle documents or forms.  Applicant uploads incomplete or blank documents to the Documents tab.  Signature Authority fails to sign Application Certification or any document that requires a signature.  The online application is incomplete or missing information.  Applicant fails to adopt an EPPP policy by the application due date. Summary Tab This tab provides a summary of the application, due dates, resource documents and links, application documents, and the Application Submission section. It is the applicant’s responsibility to ensure that all required documents, based on the individual grant application/project, are submitted by the appropriate due date. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 16 Applicant/Participant Tab The applicant name is the legal name of the jurisdiction/organization that is legally responsible for grant administration, if awarded. 1. Select the Add Applicant/Participant button and type in the Applicant Name and County. Do not enter your personal name. 2. Search the table for the correct applicant name and select Add Applicant/Participant. 3. Choose the Lead Participant radio button and click Save.  Every application must have a Lead Participant even if it is an individual application with no participating jurisdictions. If the Participant Search List does not contain your Applicant/Participant name: 1. Click on Add New Applicant/Participant. 2. Enter the Applicant/Participant Name as it appears on the Resolution or Letter of Commitment. Do not include the department or unit name. Do not enter your personal name.  List county names with the name first followed by the word “County,” e.g., “Sacramento County.”  List city names as “City of” followed by the city’s name, e.g., “City of Sacramento.” 3. Complete all required fields then click Save. For Joint Applications, or Joint Powers Authority Applications, add the name of each eligible participating jurisdiction and choose the Participating Jurisdiction radio button. For a list of eligible applicants, please see the Grant Cycle Overview section titled “Eligible Applicants.” Detail Tab Complete this tab as follows: 1. Enter a dollar amount in the Grant Funds Requested field. To determine amount, multiply tonnage and/or square yards by your reimbursement rate. Your proposed tonnage and/or square yards is the number you entered in the Project Summary/Statement of Use field described below. Your reimbursement rate is dependent on your Tier and grant category. See Table 2. For detailed step-by- step instructions, see below under Program Questions. For calculation samples, see Table 3 and 4. Do not exceed the maximum grant award amount of $250,000 (or $350,000 for a joint application). Please round all amounts to the nearest whole dollar. 2. Enter the Assembly Districts and Senate Districts. To select more than one district hold the “Ctrl” key while selecting the numbers. 3. Enter the applicant’s Department Name, e.g. “General Services.” If the applicant does not have a department the applicant’s name may be entered. 4. Enter the grant payment mailing address. 5. Project Summary/Statement of Use: Provide a brief description of the proposed project(s). You must enter: o The earliest proposed construction start date o The total tons of RAC hot-mix and/or o The total square yards of rubberized chip seal that will be used Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 17 This will determine your total dollar amount in the Grant Funds Requested field described above. If the applicant entity has a median household income 80 percent or less of the statewide median household income, please indicate it here. If the individual taking the required TDA training course is other than those listed as contacts in the application, please indicate their name and title here. 6. Select the appropriate option for the Resolution or Letter of Commitment Requirement and optional Letter of Designation . 7. Select the appropriate option for the Environmentally Preferable Purchasing and Practices Policy. 8. Select the appropriate answer for Program Questions. o For the last six questions in GMS, the following are instructions to determine Grant Funds Requested. 1) If you are an applicant in the following counties: Los Angeles, Orange, Ventura, San Bernardino, and Riverside, select Tier 1. If you are an applicant not mentioned above, select Tier 2. 2) If you are applying as the sole entity (including JPA applicants), select Individual Application. If you applying as the lead in partnership with one or more eligible jurisdiction , select Joint Application. 3) Select your project type.  If applying for hot-mix project(s) only, complete Questions 4 and 5 only.  If applying for chip seal project(s) only, complete Questions 4 and 6 only.  If applying for hot-mix and chip seal projects, complete Questions 4, 5, and 6. 4) Select your material type. If Terminal Blend is selected, please note that it may not be produced and available in California. You must provide evidence from the provider that the material was produced in California using California-generated waste tires. 5) For Question 5 and 6 in GMS, select your grant category. Grant category is based on your jurisdiction’s number of previous grants. To determine this number, please visit our web site under the Grant and Payment Reports (https://www2.calrecycle.ca.gov/Funding/Grants/ByCounty) and select your county and “Tire Recycling Grants” in the Grant Category menu. Please note that the list includes withdrawn grants and are included in the total number. Refer to a grant specific contact (https://www.calrecycle.ca.gov/Funding/GMS/Contacts), if you have questions as to whether a previous grant was withdrawn and/or if you are unsure of your jurisdiction’s number of previous grants. If you have received six total grants for hot-mix or for chip seal projects, you are no longer eligible to receive TRP grants. See Table 2 in the Available Funds section for determining Grant Category. For Individual Applications, select your appropriate hot-mix/chip seal category. For Joint Applications, select RAC-1 and/or Chip Seal category, regardless of number of previous grant. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 18 6) Based on the information selected in the last six questions in GMS, refer to Table 2 in the Available Funds section to determine your reimbursement rate. Multiply this rate by the proposed tonnage/square yardage entered in the Project Summary/Statement of Use field above. This equates to your requested grant amount. Enter this amount in the Grant Funds Requested field above. Calculation for Grant Funds Requested (Information and Example) Examples below are for informational purposes only. Hot-Mix Project The example calculation below is for a Tier 1 applicant to help determine the requested amount of grant funds; the final grant reimbursement will be determined by the actual total RAC tonnage used for all projects multiplied by the reimbursement rate of ten dollars per ton ($10/ton) for category “RAC – 1”; seven dollars per ton ($7/ton) for category “RAC – 2”; or four dollars per ton ($4/ton) for category “RAC – 3”, not to exceed the grant award amount. Table 3. Hot-Mix Project, Tier 1, Calculation for Grant Funds Requested Example: (AxB) = C Grant Category A: Amount of RAC Hot-Mix (tons) X B: Reimbursement Rate (cost per ton) = C: Total RAC - 1 25,000 X $10.00 = $250,000 RAC - 2 32,500 X $7.00 = $227,500 RAC - 3 55,000 X $4.00 = $220,000 Chip Seal Project The example calculation below is for a Tier 2 applicant to help determine the requested amount of grant funds; the final grant reimbursement will be determined by the actual total chip seal square footage used for all projects multiplied by the reimbursement rate of one dollar per square yard ($1.00/yd2), not to exceed the actual grant award. Table 4. Chip Seal Project, Tier 2, Calculation for Grant Funds Requested Example: (AxB) = C Grant Category A: Amount of Rubberized Chip Seal (square yards) X B: Reimbursement Rate (cost per square yard) = C: Total Chip Seal 115,000 X $1.00 = $115,000 Chip Seal 250,000 X $1.00 = $250,000 Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 19 Contacts Tab CalRecycle requires the application to have only one Primary Contact and at least one Signature Authority. Each application contact may be granted access by checking the box on the top of the contact’s detail screen. The contact will be able to log in to GMS using their own CalRecycle WebPass and access the application.  Primary Contact. One person who the Signature Authority or their designee has authorized to manage and oversee the grant . This person will be the first contact with whom the Grant Manager will communicate.  Signature Authority. The person(s) authorized to sign CalRecycle documents, such as grant applications, grant agreements, etc., as authorized by a board/council-adopted Resolution, Letter of Designation, or Letter of Commitment (if applicable).  Secondary Contact. A person authorized (by the Primary Contact or Signature Authority or their designee) as the alternate person with whom the Grant Manager will communicate. (Not required)  Consultant. A professional who provides advice in an area of expertise. If CalRecycle awards a grant to the applicant, the consultants may manage the grant or only conduct specific activities, based on a written agreement between the applicant and the consultant outlining work to be performed. (Not required) Budget Tab Select the Materials budget category and enter a dollar amount. The Total must equal the Grant Funds Requested amount shown on the Detail tab. Documents Tab See the Application Documents section in the Summary tab for documents that must be uploaded in the Documents tab. When uploading a document, enter a document title, select the appropriate document type from the drop-down list, and enter the date that it was executed/signed, if applicable, or select “today’s date.” After all the application documents are uploaded, return to the Summary Tab and print the Application Certification from the Application Submission section. Application Submittal and Deadline The Submit Application button located in the Summary tab will be enabled after all required documents have been uploaded. Click the Submit Application button and the application status will change to Submitted. The application can only be submitted once. Applications must be submitted no later than 11:59 p.m. on February 3, 2021 February 22, 2021. Customer service will be available until 4:00 p.m. on the application due date either by emailing grantassistance@calrecycle.ca.gov or calling Joe Pacheco at (916) 341-6534. Note: Applications that are not submitted by the due date will be deleted from GMS . Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 20 Application Documents Electronic and Original Signatures CalRecycle now allows for certified e-Signature or original wet signature on documents or forms that certify legally binding information. Note: The e-Signature must be the Adobe Digital ID or through another certified digital signature program, and cannot be the “Fill and Sign” function within Adobe. Any documents using the “Fill and Sign” method, will be considered as incomplete and may be sent back to the applicant. Once the document(s) have been signed by the Signature Authority, you must scan the wet signature, or upload the digitally signed document and save it to GMS. Retain the original document for potential CalRecycle audits (see Audit Consideration section of the Procedures and Requirements document for more information). If you have questions, email grantassistance@calrecycle.ca.gov. CalRecycle Documents CalRecycle documents are on the Summary tab in the Application Documents section. To access a document, click on the link, open it up, fill it out, save it to your computer, and upload it to the Documents tab. If you are having trouble with a document, email grantassistance@calrecycle.ca.gov or call (916) 341-6534. Altered or reproduced CalRecycle documents or templates may result in automatic disqualification of your application. Unless a document specifies that it may be reproduced as necessary, do not alter CalRecycle documents. Below is a list of the documents: Application Certification The Application Certification is a required application document that must be generate d from GMS. After you have completed each tab of the application and uploaded the required documents, generate the Application Certification from the Summary tab. Once the Application Certification is signed, upload it to the Documents tab. Applicant’s Documents Below is a list of documents that the applicant is responsible for preparing and uploading to their application. For examples/templates of some of these documents, please refer to the Summary tab. Retain the original hard copy documents for potential CalRecycle audits (see Audit Consideration section of the Procedures and Requirements for more information). Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 21 Tire-Derived Aggregate (TDA) Training Course Requirement Applicants who have successfully completed the course must certify to this fact on the Detail Tab of the application and upload the training certificate by February 3, 2021 February 22, 2021. Otherwise, the application will be disqualified. Inducement for Furthering Specific CalRecycle and Environmental Goals Applicants interested in receiving an inducement for either committing to the evaluation of materials/products or adopting policies that further specific CalRecycle and environmental goals must submit a letter from the Signature Authority or a copy of the existing policy/procedure. Resolution Any applicant that is subject to a governing body must upload a Resolution that authorizes specific grant-related matters. A copy of the Resolution is a required application document that must be uploaded no later than February 3, 2021 February 22, 2021 or CalRecycle will deem the application incomplete and disqualify the applicant. Resolution requirements vary for individual applications and joint applications as described in the following sections. For Resolution templates refer to the Resolution and Letter Examples (https://www.calrecycle.ca.gov/Funding/SampleDocs) web page. CalRecycle staff are available to answer questions about the Resolution, or to review your draft Resolution to ensure it meets the requirements of the grant program. You may upload the Resolution to your application as a Draft Resolution, or for immediate review email it to grantassistance@calrecycle.ca.gov. Note: Some publicly held businesses or private companies with a governing body may submit a Letter of Commitment, see Letter of Commitment section below. Individual Application Resolution Requirements:  The Resolution must authorize submittal of an application for one or more specifically named CalRecycle grant(s) or for all CalRecycle grants for which the applicant is eligible.  The Resolution must identify the time period, up to five years, during which the authorizations are valid. o Five years is encouraged; however, periods of less than five years are acceptable. o If a Resolution does not specify a time period, CalRecycle will consider the Resolution valid for one year from the date of adoption.  The Resolution must identify the Signature Authority by listing the job title of the person(s) authorized to sign all grant-related documents necessary to implement and close-out the grant(s). o (Optional but encouraged) The Resolution should authorize the Signature Authority to delegate their signature authority to another person identified by job title. Applicants can only submit a Letter of Designation if the corresponding Resolution includes designee language. Note: The Signature Authority must sign a Letter of Designation prior to the designee’s exercise of their authority. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 22 Joint Application Resolution Requirements:  The Lead Participant (Lead) must submit an approved Resolution, or a Letter of Commitment if the Lead is not subject to a governing body that authorizes it to act as a lead on behalf of itself and the participating entities.  If the Resolution is valid for more than one year, it is highly recommended that: a. the list of participants be provided as an attachment rather than embedded in the Resolution, and b. the Signature Authority be authorized to revise the list as necessary with each subsequent application (this allows a Signature Authority to add or remove participants with each new application without the necessity of obtaining a new Resolution).  Participants must provide a Letter of Authorization (LOA) to the Lead, authorizing the Lead to act on its behalf. LOA(s) may be valid for as long as the Lead’s Resolution or Letter of Commitment is valid, not to exceed five years, otherwise, if no time period is specified, the LOA will be valid for only one year from the document date. The applicant must upload copies of the LOA(s) no later than the February 3, 2021 February 22, 2021. Joint Powers Authority Agreement Joint Powers Authorities (JPA) must upload a copy of their JPA Agreements giving them authority to conduct the project, listing all member entities, and containing the signature of all members. CalRecycle does not require Letters of Authorization for JPA applicants. A JPA applicant must still upload a Resolution as a part of their application and list all JPA members as participants on the Applicant/Participant tab. Letter of Commitment Applicants that are not subject to a governing body must upload a Letter of Commitment (LOC) that authorizes specific grant-related matters. Some publicly held businesses or private companies with a governing body may submit an LOC under the condition that the signatory is an individual authorized to contractually bind the applicant for the conditions of the grant award. The LOC is due by February 3, 2021 February 22, 2021 or CalRecycle will deem the application as incomplete and will disqualify the applicant. Letter of Commitment Requirements The LOC must:  Authorize submittal of the Rubberized Pavement Grant Program application on behalf of applicant.  Designate the job title of the person authorized to execute all grant documents necessary to secure grant funds and implement the appro ved grant project (Signature Authority). o The LOC may also authorize the Signature Authority to delegate this authority. For LOC templates refer to the Resolution and Letter Examples (https://www.calrecycle.ca.gov/Funding/SampleDocs) web page. CalRecycle staff are available to answer questions about the LOC, or to review your draft LOC to ensure it meets the requirements of the grant program. You may upload the LOC to your application as a Draft Letter of Commitment, or for immediate review e mail it to grantassistance@calrecycle.ca.gov. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 23 Letter of Designation CalRecycle requires a Letter of Designation (LOD) only when the Signature Authority identified in the approved Resolution chooses to delegate their signature authority to another person. The approved Resolution must indicate the Signature Authority’s ability to delegate or designate their authority. The applicant must upload the LOD prior to the designee’s exercise of their authority. If the designee signs an application document in place of the Signature Authority, the applicant must upload the LOD with their application. The LOD must:  Be on the applicant’s letterhead.  Be signed by the Signature Authority.  Include the job title of the designee and the scope of the designee’s authority.  Include the time period during which the designee may exercise the authority. o The designee’s authority may not extend beyond the effective date of the approved Resolution or Letter of Commitment. For example, if the Resolution is effective until December 31, 2021, then the Letter of Designation may not be effective beyond December 31, 2021. If the letter does not identify a valid time period, the letter will follow the same time frame as the Resolution. For LOD templates refer to the Resolution and Letter Examples (https://www.calrecycle.ca.gov/Funding/SampleDocs) web page. Letter of Authorization Applicants may use a Letter of Authorization (LOA) f or grants that allow for Joint applications. The Participating Entity prepares the LOA and gives the Lead Participant authorization to apply for and to act on its behalf in the implementat ion and administration of the grant/program. The Lead must upload the LOA no later than February 3, 2021 February 22, 2021 or CalRecycle will remove the Participating Entity(ies) from the application. Letter of Authorization Requirements: The LOA must:  Be on the Participant’s official letterhead.  Be signed by an individual authorized to contractually bind the Participating Entity.  Be valid for as long as the Lead’s Resolution, not to exceed five years, otherwise the participating entity must date the letter within the last 12 months.  Authorize the Lead to submit a joint application and act as Lead Agency on behalf of the Participating Entity.  Authorize the Lead to execute all documents necessary to implement the grant. For LOA templates refer to the Resolution and Letter Examples (https://www.calrecycle.ca.gov/Funding/SampleDocs) web page. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 24 Grant Review and Award Process Grant Application Review Process After the close of the application period, CalRecycle staff will review the applications for completeness and eligibility. Only complete applications can be considered for award. Applicants may request funding for multiple projects in a single application. Movement from one priority category to the next is based on the number of CalRecycle -funded grants, not necessarily the number of individual projects. If CalRecycle receives more requests for funding than provided for with available monies (i.e., if the program is oversubscribed), staff will initially allocate (approximately) 67 percent of monies to hot-mix projects and 33 percent to chip seal projects. The actual amount allocated to hot-mix and chip seal is subject to change, depending on the amount of eligible applications received. Staff will use the following process to prioritize funding recommendations for eligible applicants: 1. Applicants with a median household income less than 80 percent of the statewide median household income and whose grant request seeks a majority of funding (greater than 50 percent) for a greenway shall be given priority funding. 2. Applicants applying in a joint application. 3. Applications categorized as RAC-1 projects will be funded before any RAC-2 projects and all RAC-2 projects will be funded before any RAC-3 projects. In the event of ties within any of the RAC or chip seal categories, the following tiebreakers be applied in sequential order: a. Applicants that did not receive funding in FY 2018–19. b. Applicants that propose to use the greatest amount of crumb rubber material in their project(s). In addition to the oversubscribed process, if an applicant satisfies either of the inducement requirements described on page 10-13 the application will be:  Ranked one “grant category” above the RAC category for which they would otherwise qualify, and/or  W ill have priority funding within the Chip Seal category. For reference, see Table 2 (page 8) and Priority 3 above. Applicants (and participating jurisdiction if a joint application) that were awarded any rubberized asphalt concrete grants in the previous three FYs, but either withdrew their grant or used less than 50 percent of their grant award, will be considered only after all other eligible applicants have been awarded. Grant Award Process For qualifying applications, CalRecycle staff will develop funding recommendations for the consideration and approval of CalRecycle’s Director, or their designee; CalRecycle tentatively schedules this for March 2021. CalRecycle reserves the right to partially fund or fund individual phases of selected proposals, and CalRecycle may fund an amount less than requested. CalRecycle may consider the historical performance of Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 25 applicant’s Rubberized Pavement grants when determining partial funding . CalRecycle reserves the right to not award any grant funds under one or more cycles. Grant Award Conditions When awarded, this grant will be subject to two conditions: 1) The recommended grantee must pay all outstanding debts due to CalRecycle, or bring current outstanding payments owed to CalRecycle, within 60 days of the award email date. 2) The recommended grantee’s Signature Authority (or their delegated signature authority) must sign and return the Grant Agreement to CalRecycle. CalRecycle must receive the signed Grant Agreement within 60 days of the date of the award email. Failure to comply with either condition will void the grant award. Application Guidelines and Instructions Rubberized Pavement Grant Program, FY 2020–21 (Revised January 11, 2021) 26 Grant Program Administration Grant Agreement The Grant Agreement binds the grantee to CalRecycle’s requirements as outlined in the Grant Agreement documents. CalRecycle now sends the Grant Agreement Cover Sheet electronically to allow for a certified e-signature using Adobe Sign. These documents shall guide the grantee’s administration of the grant project. Following CalRecycle’s conditional approval of the grant awards, we will email grantees the information below.  Award email  Grant Agreement Cover Sheet (CalRecycle 110)  Exhibit A: Terms and Conditions o Contain CalRecycle standard legal requirements for grants  Exhibit B: Procedures and Requirements o Contain specific requirements for administering this grant, including but not limited to project, reporting, and audit requirements  Exhibit C: Grantee’s approved application with revisions, if any, and any amendments  e-Signature Instructions for Awardees o Contains instruction on how to sign the Grant Agreement Cover Sheet using Adobe Sign  Attachment I: Forms Guide o For CalRecycle forms used throughout the Grant Term see CalRecycle Grant Forms web page (https://www.calrecycle.ca.gov/Funding/Forms/) to download the forms. Reporting Process Grantees are required to report on the progress of their grant:  Progress Report is due April 1, 2022.  Final Report is due April 1, 2023. Detailed reporting information is included in the Procedures and Requirements (Exhibit B). Payment Request Process Eligible costs are authorized for reimbursement upon the Grant Manager’s approval of the Payment Request, and if required, the accompanying Progress/Final Report. Payment Requests must include itemized documentation of claimed expenses (e.g., itemized receipts and proof of payment of invoices). CalRecycle will retain 10 percent of each approved Payment Request amount until the Grant Manager approves the Final Report, the final Payment Request, and all required supporting documentation. Failure to submit these final documents by the deadline specified in the Procedures and Requirements (Exhibit B) or failure to receive the Grant Manager’s approval of these documents by April 1, 2023, may result in the nonpayment of otherwise eligible costs. Detailed payment information is included in the Procedures and Requirements (Exhibit B). City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-86 Agenda Date:2/10/2021 Version:1 Item #:6a. Resolution of City Council of the City of South San Francisco authorizing submittal of application(s)for all CalRecycle grants for which the City of South San Francisco is eligible . WHEREAS,Public Resources Code sections 48000 et seq.authorize the Department of Resources Recycling and Recovery (CalRecycle)to administer various grant programs (Grants)in furtherance of the State of California’s (State)efforts to reduce,recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS,in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and WHEREAS,CalRecycle grant application procedures require,among other things,an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants. NOW,THEREFORE,BE IT RESOLVED,that the City Council of the City of South San Francisco authorizes the submittal of application(s) to CalRecycle for all grants for which the City of South San Francisco is eligible. BE IT FURTHER RESOLVED that the Director of Public Works/City Engineer,or his/her designee is hereby authorized and empowered to execute in the name of the City of South San Francisco all grant documents, including but not limited to,applications,agreements,amendments and requests for payment,necessary to secure grant funds and implement the approved grant project. BE IT FURTHER RESOLVED that the City Council authorizes the Director of Public Works/City Engineer to take any other related actions consistent with the intention of the resolution,including modifying the scope and size of the grant application to best meet the needs of the City. BE IT FURTHER RESOLVED that City Council authorizes the Finance Director,or his/her designee,to adjust the City’s fiscal year 2020-21 revenue budget upon receipt of funds. BE IT FURTHER RESOLVED that these authorizations are effective for five (5)years from the date of adoption of this resolution. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take any other related actions consistent with the intention of the resolution. ***** City of South San Francisco Printed on 4/21/2021Page 1 of 2 powered by Legistar™ File #:21-86 Agenda Date:2/10/2021 Version:1 Item #:6a. City of South San Francisco Printed on 4/21/2021Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-88 Agenda Date:2/10/2021 Version:1 Item #:6b. Resolution of the City Council of the City of South San Francisco authorizing on its behalf the submittal of grant application(s) by a lead agency for which the City of South San Francisco is eligible . WHEREAS,Public Resources Code sections 48000 et seq.authorize the Department of Resources Recycling and Recovery (CalRecycle)to administer various grant programs (grants)in furtherance of the State of California’s (State)efforts to reduce,recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS, the City of South San Francisco allows regional grant projects; and WHEREAS,CalRecycle grant application procedures require,among other things,an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants. NOW,THEREFORE,BE IT RESOLVED,that the City Council of the City of South San Francisco authorizes the City of Brisbane (Regional Lead Participant)to submit a CalRecycle Rubberized Pavement Grant Program regional application on behalf of itself as a regional participant. BE IT FURTHER RESOLVED that the City of Brisbane (Regional Lead Participant)is hereby authorized and empowered to execute on behalf of the City of South San Francisco (Regional Participant)all grant-related documents,including,but not limited to,applications,payment requests,agreements,and amendments necessary to secure grant funds and to implement the approved grant project. BE IT FURTHER RESOLVED that the City Council authorizes the Director of Public Works/City Engineer to take any other related actions consistent with the intention of the resolution,including modifying the scope and size of the grant application to best meet the needs of the City. BE IT FURTHER RESOLVED that the City Council authorizes the Finance Director,or his/her designee,to adjust the City’s Fiscal Year 2020-2021 revenue budget upon receipt of funds. BE IT FURTHER RESOLVED that these authorizations are effective for five (5)years from the date of adoption of this resolution. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to enter into a Memorandum of Understanding with the City of Brisbane consistent with the intention of this resolution. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take any other related City of South San Francisco Printed on 4/21/2021Page 1 of 2 powered by Legistar™ File #:21-88 Agenda Date:2/10/2021 Version:1 Item #:6b. actions consistent with the intention of this resolution. ***** City of South San Francisco Printed on 4/21/2021Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-98 Agenda Date:2/10/2021 Version:1 Item #:7. Report regarding an ordinance amending South San Francisco Municipal Code Section 2.04.010 to authorize the City Council to set regular meeting times by resolution (Sky Woodruff, City Attorney) RECOMMENDATION It is recommended that the City Council adopt an ordinance amending South San Francisco Municipal Code Section 2.04.010 to authorize the City Council to set regular meeting times by resolution. BACKGROUND On January 27, 2021, the City Council voted to introduce an ordinance to amend South San Francisco Municipal Code Section 2.04.010 to authorize the City Council to set regular meeting times by resolution. The ordinance now requires a second reading and adoption (Introduced on January 27, 2021; vote 4-0.) CONCLUSION The ordinance is now ready for adoption. City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-97 Agenda Date:2/10/2021 Version:1 Item #:7a. Ordinance amending Section 2.04.010 of the South San Francisco Municipal Code to authorize the time of regular City Council meetings be established by resolution. WHEREAS,Section 2.04.010 of the South San Francisco Municipal Code currently requires that the City Council shall hold a regular meeting on the second and fourth Wednesdays of each month at seven p.m.; and WHEREAS,the City Council may set its meeting time by resolution in accordance with subsection (a)of section 54954 of the Government Code,so long as meetings are noticed within 24 hours of a special meeting and 72 hours of a regular meeting in accordance with Government Code section 54950 et seq.(commonly known as the Ralph M. Brown Act); and WHEREAS,the City Council now desires to amend Section 2.04.010 of the South San Francisco Municipal Code to allow for the time of regular City Council meetings be established by City Council resolution. NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES HEREBY ORDAIN AS FOLLOWS. SECTION 1.Findings The City Council finds that the foregoing recitals are true and correct and are incorporated into the Ordinance by this reference. SECTION 2.Amendments to the Municipal Code Section 2.04.010 (“Time”) of the South San Francisco Municipal Code is hereby amended to read as follows: 2.04.010 Time. The council shall hold a regular meeting on the second and fourth Wednesdays of each month.The time of meetings shall be set by resolution of the City Council. SECTION 3.Severability. If any section,subsection,sentence,clause,or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction,such decision shall not affect the validity of the remaining portions of this Ordinance.The City Council hereby declares that it would have passed the Ordinance,and each and every section,subsection,sentence,clause,or phrase not declared invalid or unconstitutional without regard to whether any portion of this Ordinance would be subsequently declared invalid or unconstitutional. City of South San Francisco Printed on 3/8/2021Page 1 of 2 powered by Legistar™ File #:21-97 Agenda Date:2/10/2021 Version:1 Item #:7a. SECTION 4. Publication and Effective Date Pursuant to the provisions of Government Code Section 36933,the City Attorney shall prepare a summary of this Ordinance.At least five (5)days prior to the Council meeting at which this Ordinance is scheduled to be adopted,the City Clerk shall (1)publish the Summary,and (2)post in the City Clerk’s Office a certified copy of this Ordinance.Within fifteen (15)days after the adoption of this Ordinance,the City Clerk shall (1)publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance ***** Introduced at a regular meeting of the City Council of the City of South San Francisco held the 27th day of January, 2021. City of South San Francisco Printed on 3/8/2021Page 2 of 2 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-475 Agenda Date:2/10/2021 Version:1 Item #:8. Report regarding a public hearing relating to the bond financing for the Grand and Linden Family Apartments (201-219 Grand Avenue and 418 Linden Avenue) including issuance of tax-exempt bonds by the California Statewide Communities Development Authority (CSCDA) in an aggregate principal amount not to exceed $45 million. (Julie Barnard, Economic Development Coordinator) RECOMMENDATION Staff recommends that the City Council: 1.Receive an update on the Grand and Linden Family Apartments project; 2.Conduct a public hearing for community members who may be interested in speaking on the use of tax-exempt bonds for the financing of the project; and 3.Adopt a resolution approving the proposed tax-exempt revenue bonds. BACKGROUND/DISCUSSION In December 2015,the City approved the Grand and Linden Family Apartments project (the “Project”), planned for the following downtown properties: •201-219 Grand Avenue (Successor Agency-owned properties),entitled for a mixed-use project with 47 housing units, ground floor commercial, a leasing office, and a resident lounge; and •418 Linden (City-owned property),entitled for residential use only project with 37 housing units,with some flexibility to allow for live/work spaces. As discussed below, all 84 of the units will be affordable. Project Update In March 2020,City Council approved amendments to the agreements with ROEM Development Corporation (“the Developer”),which govern the disposition of the above referenced properties and the undertaking of the Project.At that time,the Close of Escrow was extended (along with subsequent performance milestones like start of construction)and is now set for October 26,2020.At that time,the City Council also considered and approved amendments to previous entitlements and the conversion of a $3.5 million affordable housing grant to a loan, of which $500,000 will be repaid in five years. The financing for this project is heavily dependent on the Developer securing $78,755,000 in financing.The $78,755,000 is comprised of the following: ·$41,915,000 that will be issued through California Debt Limit Allocation Committee (“CDLAC”)in the form of bonds; ·$3,500,000 in the form of a loan/grant from the City of South San Francisco; ·$2,500,000 in the form of a loan from the County of San Mateo; ·$5,610,000 of deferred developer fees which will be deferred over the Tax Credit Compliance period of City of South San Francisco Printed on 2/5/2021Page 1 of 4 powered by Legistar™ File #:20-475 Agenda Date:2/10/2021 Version:1 Item #:8. ·$5,610,000 of deferred developer fees which will be deferred over the Tax Credit Compliance period of 15 years; and ·$25,230,000 in tax credit equity,based on allocation of federal tax credits to be issued though the California Tax Credit Allocation Committee (“TCAC”). The Developer received a reservation letter for their Low-Income Housing Tax Credits in September 2020. Prior to this,the Developer had experienced some trouble securing tax credit financing.ROEM was unsuccessful in securing tax credit financing in the December 2019 application round because,although they submitted ahead of the deadline,the credits were allocated on a first-come-first-served basis and the TCAC had a much higher volume of applications than is typical.The Developer reapplied for tax credits in January 2020, which was the first competitive round for 4%bonds in more than a decade.This application was considered in April 2020 and was unsuccessful because it was less competitive than some other projects that reviewed by TCAC at that time. Due to the effects of COVID-19 and the Shelter in Place (“SIP”)orders,TCAC delayed the next possible application date from May 2020 to July 2020.The Developer worked to ensure that their development would be far more competitive than their previous applications and,once again,submitted well ahead of the deadline. The project secured all requested tax credit financing at the September 2020 TCAC meeting and the project is now fully funded.Per the Developer’s Schedule of Performance,construction will commence on site immediately following close of escrow, which is set for March 15, 2021. The Council may recall that a public hearing was held in August 2019,which anticipated receiving a tax credit award in late 2019.The public hearing for tax-exempt bonds must be held within one year of bond issuance, which is why staff has brought this item back to Council, at the request of the Developer. Tax-exempt Bond Financing As mentioned,all of the units in the Project,except for the manager units,will be affordable.Below is the distribution of the units by Area Median Income (“AMI”): ·29 units at 30% AMI ·13 units at 50% AMI ·40 at 80% AMI Attachment 1 illustrates the household income levels by household size at the various AMI levels. As part of its efforts to finance the Project,the Developer is pursuing tax-exempt bonds,which are issued by the California Statewide Communities Development Authority (“CSCDA”).California state statutes authorize cities and certain other public agencies to issue tax-exempt revenue bonds to reduce the financing costs of multifamily rental housing developments.Because repayment of the bonds is backed solely by project revenues,all liability and obligation relating to repayment of such bonds rests on the borrower of the bond sale proceeds (i.e.the developer/owner).Projects are generally financed on a secured,non-recourse basis,meaning that the borrower is obligated to make payments on the debt from project revenues only,and the lender’s primary security for the financing is the asset itself.In the event of the developer defaulting on the payments City of South San Francisco Printed on 2/5/2021Page 2 of 4 powered by Legistar™ File #:20-475 Agenda Date:2/10/2021 Version:1 Item #:8. primary security for the financing is the asset itself.In the event of the developer defaulting on the payments the property would revert to the investor who buys the bonds. The capital structure for a typical bond-financed project includes the following: ·Senior loan funded with tax-exempt bonds (subject of the hearing today); ·one or more grants and/or subordinate loans from state or local government; and/or ·equity from limited partners, often tax-credit investors. In order to make bond issuance as efficient as possible,cities and counties are authorized to form joint powers authorities (“JPAs”)to conduct bond sales on the behalf of JPA members.CSCDA is a JPA established in 1988 by the League of California Cities and California State Association of Counties to assist with the financing of economic development,housing,and charitable activities throughout California.CSCDA is a public entity, separate and apart from each member with which it executes an agreement.CSCDA currently has over 530 member agencies and has issued more than $60 billion in economic development bonds throughout California. The City of South San Francisco executed an agreement with CSCDA on July 15,2005,becoming a member of the JPA. Pursuant to the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA"),in order for all or a portion of issued bonds to qualify as tax-exempt, the local jurisdiction within which the project is located must: 1.Conduct a public hearing for community members who may be interested in speaking on the use of tax-exempt bonds for the financing of the project; and 2.Adopt a resolution approving the proposed tax-exempt revenue bonds. FISCAL IMPACT The bonds issued by the CSCDA for the Project will be the sole responsibility of the borrower,in this case ROEM Development Corporation.The City of South San Francisco will have no financial or legal obligation, liability,or responsibility for the Project or the repayment of the bonds for the financing of the Project.All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City of South San Francisco or the State of California but are to be paid for solely from funds provided by the borrower, ROEM. CONCLUSION In order to issue and sell these tax-exempt revenue bonds,certain City Council actions are required,including conducting a public hearing pursuant to the TEFRA and Internal Revenue Code of 1986 and authorizing the issuance of multi-family revenue bonds. With the assurance that the actions proposed pose no financial obligation or liability to the City,staff recommends the following. 1.Conduct and close the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986. 2.Adopt a resolution approving the issuance of the bonds in an amount not to exceed $45 million by the California Statewide Communities Development Authority for the benefit of ROEM Development City of South San Francisco Printed on 2/5/2021Page 3 of 4 powered by Legistar™ File #:20-475 Agenda Date:2/10/2021 Version:1 Item #:8. California Statewide Communities Development Authority for the benefit of ROEM Development Corporation to provide for the financing of the Grand and Linden Family Apartments in satisfaction of the requirements of TEFRA,Internal Revenue Code of 1986 and the California Government Code Section 6500. Attachment 1: San Mateo County AMI levels (2020) City of South San Francisco Printed on 2/5/2021Page 4 of 4 powered by Legistar™ revised 06/30/2020 For HUD-funded programs, use the Federal Income Schedule. For State or locally-funded programs, you may use the State Income Schedule. For programs funded with both federal and state funds, use the more stringent income levels. Please verify the income and rent figures in use for specific programs. San Mateo County Income Limits (based on Federal Income Limits for SMC) Effective 4/30/2020 - Area median Income $143,100 (based on household of 4) Income Category 1 2 3 4 5 6 7 8 Extremely Low (30% AMI) *36,540$ 41,760$ 46,980$ 52,200$ 56,400$ 60,570$ 64,740$ 68,910$ Very Low (50% AMI) *60,900$ 69,600$ 78,300$ 87,000$ 94,000$ 100,950$ 107,900$ 114,850$ Low (80% AMI) *97,600$ 111,550$ 125,500$ 139,400$ 150,600$ 161,750$ 172,900$ 184,050$ Median (100% AMI)100,150$ 114,500$ 128,800$ 143,100$ 154,550$ 166,000$ 177,450$ 188,900$ Moderate (120% AMI)120,200$ 137,350$ 154,550$ 171,700$ 185,450$ 199,150$ 212,900$ 226,650$ NOTES *2020 State Income limits provided by State of California Department of Housing and Community Development 2020 San Mateo County Income Limits as determined by HUD - effective June 28, 2019 Income Limits by Family Size ($) City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-476 Agenda Date:2/10/2021 Version:1 Item #:8a. A resolution approving the issuance of multifamily housing revenue bonds for the Grand and Linden Family Apartments by the California Statewide Communities Development Authority. WHEREAS,the City of South San Francisco (“City”)is the owner of certain real property located in the City of South San Francisco,California,with the address of 418 Linden Avenue,known as County Assessor’s Parcel Numbers (“APN”) 012-314-010 (“418 Linden”); and WHEREAS,the City is also the owner of former Redevelopment Agency property located in the City of South San Francisco,California,with the address of 201-219 Grand Avenue,known as APNs 012-316-100,012-316- 110, 012-316-080 and 012-316-090 (collectively, “201 Grand Avenue”); and WHEREAS,in December 2015 the City approved entitlements for a residential project at 418 Linden Avenue and a mixed-use project at 201 Grand Avenue (“Project”); and, WHEREAS,in December 2016,following a competitive process,the City and Agency selected a developer, ROEM Development Corporation (“Developer”),to develop the 418 Linden Avenue and 201 Grand Avenue Projects; and WHEREAS,the California Statewide Communities Development Authority (the “Authority”)is authorized pursuant to the provisions of California Government Code Section 6500 et seq.and the terms of an Amended and Restated Joint Exercise of Powers Agreement,dated as of June 1,1988 (the “Agreement”),among certain local agencies throughout the State of California,including the City of South San Francisco (the “City”),to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS,Grand and Linden Family Apartments,LP or a partnership of which ROEM Development Corporation (the “Developer”)or a related person to the Developer is the general partner,has requested that the Authority adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7)of the Internal Revenue Code of 1986 (the “Code”)in one or more series issued from time to time,including bonds issued to refund such exempt facility bonds in one or more series from time to time,and at no time to exceed $45,000,000 in outstanding aggregate principal amount (the “Bonds”),to finance or refinance the acquisition,construction and development of a 84-unit multifamily rental housing project located at 201 Grand Avenue and 418 Linden Avenue,South San Francisco, California (the “Project”); and WHEREAS,pursuant to Section 147(f)of the Code,prior to their issuance,private activity bonds are required City of South San Francisco Printed on 2/18/2021Page 1 of 3 powered by Legistar™ File #:20-476 Agenda Date:2/10/2021 Version:1 Item #:8a. WHEREAS,pursuant to Section 147(f)of the Code,prior to their issuance,private activity bonds are required to be approved by the “applicable elected representative”of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located,after a public hearing held following reasonable public notice; and WHEREAS,the members of the City Council of the City of South San Francisco (the “City Council”)are the applicable elected representatives of the City; and WHEREAS,there has been published,at least 7 days prior to the date hereof,in a newspaper of general circulation within the City,a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and WHEREAS,such public hearing was conducted on such date,at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and WHEREAS,the Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project (the “Refunding Bonds”),but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and WHEREAS,it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AS FOLLOWS: Section 1.The above recitals are true and correct. Section 2.The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority.It is the purpose and intent of the City Council that this resolution constitutes approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. Section 3.The officers of the City are hereby authorized and directed,jointly and severally,to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out,give effect to and comply with the terms and intent of this resolution and the financing approved hereby. Section 4.This resolution shall take effect immediately upon its passage. ***** City of South San Francisco Printed on 2/18/2021Page 2 of 3 powered by Legistar™ File #:20-476 Agenda Date:2/10/2021 Version:1 Item #:8a. City of South San Francisco Printed on 2/18/2021Page 3 of 3 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-653 Agenda Date:2/10/2021 Version:1 Item #:9. Report regarding a resolution approving the parcel map for 201 Grand Avenue,authorizing the recordation of the parcel map and all related documents.(Jason Hallare, Senior Civil Engineer) RECOMMENDATION It is recommended that the City Council adopt a resolution approving the parcel map for 201 Grand Avenue, authorizing the recordation of the parcel map and all related documents. BACKGROUND/DISCUSSION On December 9,2015,the City Council approved an entitlements request by the South San Francisco Successor Agency and Brookwood Group to construct a mixed-use building consisting of 47 residential units and 5,160 square feet of retail space.The project is located at and referred to as 201 Grand Avenue (previously 255 Cypress Avenue)which is at the corner of Grand Avenue and Cypress Avenue.A location and site overview plan is shown in Attachment 1. This site consists of addresses 201-219 Grand Avenue (APNs 012-316-100,012-316-110,012-316-080 and 012 -316-090).This site,formerly owned by the South San Francisco Successor Agency,was transferred to the City of South San Francisco (“City”)in 2016.Pursuant to the State of California Redevelopment Agency law,the City is in the process of selling former Redevelopment Agency sites.As part of this process the City selected the developer,ROEM Development Corporation (“Developer”),to develop 47 units on the 201-219 Grand Avenue property (“Project Site”).City staff have been working with the developer on securing financing and other technical aspects of the project for the past few years.Both the developer and the City are nearly ready to close escrow on the site. Parcel Map The City Engineer and the City’s technical reviewer,with concurrence of all affected city departments and divisions,have determined that the parcel map for 201 Grand Avenue (“Parcel Map 20-0478”),described in Exhibit A of the attached resolution is in compliance with the Subdivision Map Act,the City’s Subdivision Ordinance, and all applicable conditions of approval for said development. Parcel Map 20-0478 will merge the existing four parcels into a single 0.46 acre parcel to construct a mixed-use building.The building is served by the public roads:Grand Avenue to the north,Cypress Avenue to the east, and 3rd Lane to the south. A subdivision improvement agreement is not included as part of this parcel map since the conditions of approval did not require a subdivision improvement agreement nor any major public improvements.An encroachment permit the developer will obtain prior to building permit issuance will cover all improvements in the right-of-way. The proposed improvements are depicted in Attachment 2. FISCAL IMPACT Approving the parcel map will have no fiscal impact on the City. City of South San Francisco Printed on 2/5/2021Page 1 of 2 powered by Legistar™ File #:20-653 Agenda Date:2/10/2021 Version:1 Item #:9. RELATIONSHIP TO STRATEGIC PLAN Approval of this parcel map will contribute to the City’s Strategic Plan outcome of improved Quality of Life by promoting a balanced mix of housing options in SSF Priority Area 2,Initiative 2.3 and promote a full range of employment through development in SSF Priority Area 2, Initiative 2.4. CONCLUSION It is recommended that the City Council adopt a resolution approving the parcel map for 201 Grand Avenue, authorizing the recordation of the parcel map and all related documents. Attachments: 1.Vicinity Map 2.Proposed Improvements City of South San Francisco Printed on 2/5/2021Page 2 of 2 powered by Legistar™ ATTACHMENT 1 - VICINITY MAP City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-654 Agenda Date:2/10/2021 Version:1 Item #:9a. Resolution approving the parcel map for 201 Grand Avenue,authorizing the recordation of the parcel map and all related documents. WHEREAS,on December 9,2015,the City Council approved an entitlements request by the South San Francisco Successor Agency and Brookwood Group to construct a mixed-use building consisting of 46 residential units and 5,500 square feet of retail space at 201 Grand Avenue (“Project Site”),formerly 255 Cypress Avenue; and WHEREAS,the Project Site consists of addresses 201-219 Grand Avenue (APNs 012-316-100,012-316-110, 012-316-080 and 012-316-090); and WHEREAS,the Project Site,formerly owned by the South San Francisco Successor Agency,was transferred to the City of South San Francisco (“City”) in 2016; and WHEREAS,as part of the City’s process of selling former Redevelopment Agency sites,the City selected ROEM Development Corporation (“Developer”)to develop 47 residential units and 5,160 square feet on the Project Site; and WHEREAS,the City Engineer and the City’s technical reviewer,with concurrence of all affected City departments and divisions,have determined that the parcel map for 201 Grand Avenue,described in Exhibit A and titled Parcel Map 20-0478,is in compliance with the Subdivision Map Act,the City’s Subdivision Ordinance, and all applicable tentative map conditions of approval for said development; and WHEREAS,Parcel Map 20-0478 will merge the existing four parcels into a single 0.46 acre parcel to construct a mixed-use building served by the public roads: Grand Avenue, Cypress Avenue, and 3rd Lane. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco: 1. City Council approves the parcel map for 201 Grand Avenue; and 2.City Council authorizes recordation of the parcel map for 201 Grand Avenue and all related documents; and 3.City Council authorizes the City Manager to execute any other documents or to take any other action consistent with the intent of this Resolution, subject to approval as to form by the City Attorney. Exhibits: 1.Exhibit A - Parcel Map 20-0478 ***** City of South San Francisco Printed on 4/21/2021Page 1 of 2 powered by Legistar™ File #:20-654 Agenda Date:2/10/2021 Version:1 Item #:9a. City of South San Francisco Printed on 4/21/2021Page 2 of 2 powered by Legistar™ SURVEYOR'S STATEMENTTHIS PARCEL MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS BASED UPON A FIELD SURVEY INCONFORMANCE WITH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCE AT THEREQUEST OF THE CITY OF SOUTH SAN FRANCISCO, A MUNICIPAL CORPORATION, IN SEPTEMBER, 2020. ALLMONUMENTS ARE OF THE CHARACTER AND OCCUPY THE POSITIONS INDICATED, OR THAT THEY WILL BE SETIN THOSE POSITIONS ON OR BEFORE SEPTEMBER, 2022, AND THAT THE MONUMENTS ARE, OR WILL BE,SUFFICIENT TO ENABLE THE SURVEY TO BE RETRACED. I HEREBY STATE THAT THIS PARCEL MAPSUBSTANTIALLY CONFORMS TO THE APPROVED OR CONDITIONALLY APPROVED TENTATIVE MAP, IF ANY.DATED: ____________________ BY: _________________________________ ALEX CALDERL.S. NO. 8863OWNERS STATEMENTTHE UNDERSIGNED HEREBY STATES THAT IT IS THE OWNER OF THE LAND EMBRACED WITHIN THE HEAVY BLACKLINES OF THE HEREIN EMBODIED PARCEL MAP NO. 20-0478, CITY OF SOUTH SAN FRANCISCO, SAN MATEOCOUNTY, CALIFORNIA, CONSITING OF TWO (2) SHEETS, THAT IT IS THE OWNER OF SAID LAND BY VIRTUE OF THEGRANT DEEDS RECORDED ON MAY 16, 2017 AS RECORDERS SERIES NO. 2017-042158, 2017-042159, AND2017-042160, OFFICIAL RECORDS OF SAN MATEO COUNTY, CALIFORNIA, AND THAT IT CONSENTS TO THEPREPARATION AND RECORDING OF THIS PARCEL MAP.ANY INTEREST IN EASEMENTS OVER SAID PROPERTY AS STATED IN BOOK 62 OF DEEDS, PAGE 189 AND IN BOOK114 OF DEEDS, PAGE 68 SAN MATEO COUNTY RECORDS, IS HEREBY ABANDONED BY THE CITY OF SOUTH SANFRANCISCO PURSUANT TO SECTION 66434(G) OF THE SUBDIVISION MAP ACT UPON THE FILING OF THIS MAP.AS OWNER:THE CITY OF SOUTH SAN FRANCISCO, A MUNICIPAL CORPORATIONBY: ______________________________ MIKE FUTRELL, CITY MANAGERCITY ENGINEER'S STATEMENTI HEREBY STATE THAT I HAVE EXAMINED THE HEREON PARCEL MAP; THAT THE SUBDIVISION AS SHOWNHEREON IS SUBSTANTIALLY THE SAME AS IT APPEARED ON THE TENTATIVE MAP, IF REQUIRED, AND ANYAPPROVED ALTERATIONS THEREOF; THAT ALL PROVISIONS OF THE SUBDIVISION MAP ACT, AS AMENDED, ANDOF ANY LOCAL ORDINANCE APPLICABLE AT THE TIME OF APPROVAL OF THE TENTATIVE MAP, IF REQUIRED,HAVE BEEN COMPLIED WITH.DATED: _________________BY: _________________________________ EUNEJUNE KIM, C.E. C 54268CITY OF SOUTH SAN FRANCISCOTECHNICAL REVIEWER'S STATEMENTTHIS PARCEL MAP HAS BEEN REVIEWED AND FOUND TO BE TECHNICALLY CORRECT.DATED: _________________BY: _________________________________MAURICE KAUFMAN L.S NO. 7256,EXP. 12/31/2020OWNER'S ACKNOWLEDGMENTA NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OFTHE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOTTHE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT.STATE OF ____________________)COUNTY OF ___________________)SS.ON ____________ 2020, BEFORE ME, ________________, A NOTARY PUBLIC,PERSONALLY APPEARED__________________________________________,WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S)IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEYEXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIRSIGNATURE(S) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THEPERSON(S) ACTED, EXECUTED THE INSTRUMENT.I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THEFOREGOING PARAGRAPH IS TRUE AND CORRECT.WITNESS MY HAND.NOTARY'S SIGNATURE: _________________________________PRINTED NAME: ______________________________________COUNTY OF PRINCIPAL PLACE OF BUSINESS: __________________COMMISSION No.: _____________________________________COMMISSION EXPIRATION DATE: ___________________________COUNTY RECORDER'S STATEMENTFILED THIS ______ DAY OF _______________________ 2020, AT: _________ A.M./P.M.IN VOLUME _____________ OF PARCEL MAPS, AT PAGE(S) _____________________, ATTHE REQUEST OF THE CITY OF SOUTH SAN FRANCISCO, A MUNICIPAL CORPORATION.MARK CHURCH, SAN MATEO COUNTY RECORDERFILE NO._____________________ ___________________________________ DEPUTY RECORDERFEE _________________VICINITY MAP - NOT TO SCALEGRAND AVELIND E N A V E BADEN AVECYP R E S S A V E AIR P O R T B L V D US-101VILLAGE WAYSITEA 1 LOT SUBDIVISION MERGING ALL OF LOTS 25, 26, 27, 28 AND 29 OF BLOCK 140 OFTHAT CERTAIN MAP ENTITLED, "SOUTH SAN FRANCISCO, SAN MATEO CO. CAL.RECORDED ON MARCH 1, 1892, IN BOOK 2 OF MAPS, PAGE 52.CITY OF SOUTH SAN FRANCISCO SAN MATEO COUNTY CALIFORNIASOIL AND GEOLOGIC REPORT STATEMENTA GEOTECHNICAL REPORT WAS PREPARED FOR THE PROPOSED DEVELOPMENT ON PARCEL A AND ISENTITLED "GEOTECHNICAL INVESTIGATION 255 CYPRESS AVENUE SOUTH SAN FRANCISCO,CALIFORNIA" AND DATED JANUARY 29, 2016 WAS PREPARED BY LANGAN TREADWELL ROLLO,PROJECT NO. 731654702 AND SIGNED BY RICHARD D. RODGERS, G.E. MANAGING PRINCIPAL.CITY CLERK'S STATEMENTI, ROSA GOVEA ACOSTA, HEREBY STATE THAT THE CITY COUNCIL OF THE CITY OF SOUTH SANFRANCISCO,COUNTY OF SAN MATEO, STATE OF CALIFORNIA, AT ITS REGULAR MEETING HELD ONTHE ________ DAY OF __________________2020, DID DULY APPROVE THIS PARCEL MAP, AUTHORIZEITS RECORDATION, AND DID ABANDON EASEMENTS WITHIN THE BOUNDARIES OF THIS MAP PERSECTION 66434(G) OF THE SUBDIVISION MAP ACT.____________________________ _____________________ROSA GOVEA ACOSTADATESOUTH SAN FRANCISCO CITY CLERKSAN MATEO COUNTY, CACONDOMINIUM NOTE:THE REAL PROPERTY SHOWN ON THIS PARCEL MAP AS PARCEL A IS APPROVED FORCONDOMINIUM PURPOSES FOR UP TO ___ RESIDENTIAL CONDOMINIUM UNITS. 302.18' 300.12'N74°27'00"W 402.72'N74°27'00"W386.27'FOUND 2" BRASS DISKWITH PUNCH PER (R2) (R5)FOUND 2" BRASSDISK WITH PUNCHPER (R2) (R5)(S22°14'50"W) ( R 1 )(S74°27'00"E) (R1)(R3)(N15°33'00"E) (R1)N74°27'00"W419.13' (R5)N15°33'00"E 370.12' (R5)N74°27'00"W (R1) (R2)462.59' (R5) (462.58') (R2) CL-CLBASIS OF BEARINGS140.06' 141.02' N15°33'00"E 140.06'367.48'140.06' (R5)N74°27'00"W383.92'N22°14'50"E 372.66' (R5) 141.02' 40.00'182.59'S67°45'10"E25.00'43.21'(S22°15'48"W) ( R 3 )SEE DETAIL A(N22°12'26"E) ( R 4 )(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(52.71')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(25')(36.27')(25')(25')(25')(25')(58.92')(25')(25')(25')(25')(42.48')(R1)(R5)(140') (R1) 20.14' (140') (R1) (140.96') (R1) (140.96') (R1) 20.00'(R1)(R5)(R1)(300') (R1)(402.71') (R1)(N15°31'27"E) (R4) (N15°33'00"E)(R1) (140') (R1) N15°33'00"EN74°27'00"W462.69' (R5) (462.68') (R2) M-M152.72'(152.71') (R1)250.00' (R1)0.10'(R5)SEE DETAIL B250.00'136.27' (R1)225.00' (R1)(R5)225.00' (R1)(R5)(140')(R1) 140.06'(R5) N22°14'50"E LEGEND BOUNDARY LINEMONUMENT/CENTER LINEADJACENT LOT LINETIE LINELOTLINE TO BE REMOVEDCL-CLCENTERLINE TO CENTERLINEDN.DOCUMENT NUMBERMMAPM-MMONUMENT TO MONUMENTPLPROPERTY LINER.O.W.RIGHT OF WAYRREFERENCE( )REFERENCE TO R1 UNLESS OTHERWISE NOTEDFOUND MONUMENT AS NOTEDMAG NAIL & 2" ALUMINUM WASHER STAMPED"LS 8863" TO BE SETREFERENCE MAPSR1 MAP OF SOUTH SAN FRANCISCO, 2 M 52SAN MATEO CO. CAL., PLAT NO. 1R2 RECORD OF SURVEY OF 204 GRAND AVENUE27 M 39R3PARCEL MAP NO. 96-01869 M 84-85R4 RECORD OF SURVEY18 M 61R5FINAL MAPOF 200 LINDEN AVENUE142 M 27-28BASIS OF BEARINGSTHE BEARING OF NORTH 74°27'00" WEST ALONG THE MONUMENTLINE OF GRAND AVENUE, AS SHOWN ON THAT RECORD OF SURVEYFILED FOR RECORD IN BOOK 27 OF MAPS, AT PAGE 39, ON APRIL 5,2005 IN THE OFFICE OF THE COUNTY RECORDER OF SAN MATEOCOUNTY.SEPTEMBER 2020 SCALE 1" = 40'A 1 LOT SUBDIVISION MERGING ALL OF LOTS 25, 26, 27, 28 AND 29 OF BLOCK 140 OFTHAT CERTAIN MAP ENTITLED, "SOUTH SAN FRANCISCO, SAN MATEO CO. CAL.RECORDED ON MARCH 1, 1892, IN BOOK 2 OF MAPS, PAGE 52.CITY OF SOUTH SAN FRANCISCO SAN MATEO COUNTY CALIFORNIADETAIL ANOT TO SCALEGRAND AVENUE( 80' R.O.W. )BADEN AVENUE( 60' R.O.W. )CYPRESS AVE N U E ( 50' R.O.W. ) LINDEN AVENUE( 60' R.O.W. )THIRD LANE( 20' R.O.W. )LANDS OF ROMO (DN. 2010-009726)PARCEL ALANDS OF THE CITY OFSOUTH SAN FRANCISCO20,238.1 SQ. FT.±0.46 ACRES±0.01'0.07'BUILDING TOREMAINBUILDING TOBE REMOVED1.36'BUILDING TOBE REMOVEDDETAIL BNOT TO SCALE0.01'BLOCK140(1.00')BUILDING TOREMAIN City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-59 Agenda Date:2/10/2021 Version:1 Item #:10. Report Regarding a Resolution to Amend the Executive Salary Schedule for the City of South San Francisco to Incorporate Provisions of the Amended City Manager Employment Agreement (Leah Lockhart,Human Resources Director) RECOMMENDATION It is recommended that City Council adopt a resolution to amend the Executive Management Salary Schedule for the City of South San Francisco to incorporate provisions of Amendment No.6 to the City Manager Employment Agreement. BACKGROUND/DISCUSSION On November 24,2020 the City Council approved an amendment to the employment agreement with City Manager C.Michael Futrell to modify Mr.Futrell’s annual base salary of $289,934.34 by three percent (3%),to $298,632.37,effective April 22,2020.The approved amendment number six is attached to the associated resolution as Exhibit A.The change in Mr.Futrell’s compensation is consistent with the 2020 cost-of-living adjustments granted to all other regular City employees,pursuant to Council-approved Memorandums of Understanding with each employee group. In accordance with Government Code §54953 and CalPERS requirements,the City’s salary and wage schedule must be updated and made publicly available to reflect any approved changes to the local agency executive salaries.Therefore,the attached resolution includes an amended Executive Salary Schedules effective April 22, 2020,as well as updated Salary Schedules for subsequent amendments effective July 10,2020 and December 25,2020.These amendments reflect the three percent (3%)increase to the City Manager’s salary effective April 22, 2020, expressed as an hourly equivalent rate. FISCAL IMPACT City Council approved Amendment No.6 to the City Manager Employment Agreement on November 24,2020, and appropriations for employee cost-of-living adjustments had been included in the Fiscal Year 2020-2021 operating budget. Therefore, there is no fiscal impact resulting from this action. CONCLUSION It is recommended that City Council approve a resolution to amend the City’s Executive Salary Schedules for April 22,2020,July 10,2020 and December 25,2020 to reflect the City Manager compensation adjustment pursuant to Amendment No. 6 to the Employment Agreement. City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-62 Agenda Date:2/10/2021 Version:1 Item #:10a. Resolution to amend the Executive Salary Schedule for the City of South San Francisco to Incorporate provisions of Amendment No. 6 to the City Manager Employment Agreement. WHEREAS,on November 24,2020,City Council approved Amendment No.6 to the Employment Agreement with City Manager C. Michael Futrell, attached hereto as Exhibit A. WHEREAS,the approved amendment to the Employment Agreement included a three percent (3%)cost-of- living adjustment to the City Manager’s salary, for an annual salary of $298,632.37 WHEREAS,in accordance with California law,local agency executive salaries must be included in publicly available salary schedules approved by City Council. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco,that the amended Executive Salary Schedules dated April 22,2020,July 10,2020,and December 25,2020,attached hereto as Exhibits B-D, are hereby approved. ***** City of South San Francisco Printed on 4/21/2021Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-60 Agenda Date:2/10/2021 Version:1 Item #:11. Report regarding the Comprehensive Annual Financial Report for fiscal year ended June 30,2020,mid-year update for fiscal year ending June 30,2021,and additional appropriation requests.(Janet Salisbury,Director of Finance) RECOMMENDATION Staff requests that the City Council of the City of South San Francisco (“City”)accept the review of this report by the Budget Standing Committee;and approve a resolution acknowledging the results of the Comprehensive Annual Financial Report (“CAFR”)for Fiscal Year (“FY”)2019-20,accepting the mid- year financial update for FY 2020-21,and appropriating additional funds for FY 2020-21 as detailed herein. BACKGROUND/DISCUSSION Due to the formatting limitations of the City’s Agenda Management Platform,the full staff report accompanying this agenda item is being attached as Attachment 1 of this report. Attachments: 1. Staff Report 2. FY2019-20 General Fund Operating Summary 3. Presentation to City Council City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™ City of South San Francisco Page 1 of 17 File#: 21-60 Agenda Date: 02/10/2021 Version: 1 Item #: Report regarding the Comprehensive Annual Financial Report for fiscal year ended June 30, 2020, mid-year update for fiscal year ending June 30, 2021, and additional appropriation requests. (Janet Salisbury, Director of Finance) RECOMMENDATION Staff requests that the City Council of the City of South San Francisco (“City”) accept the review of this report by the Budget Standing Committee; and approve a resolution acknowledging the results of the Comprehensive Annual Financial Report (“CAFR”) for Fiscal Year (“FY”) 2019-20, accepting the mid-year financial update for FY 2020-21, and appropriating additional funds for FY 2020-21 as detailed herein. BACKGROUND/DISCUSSION The information contained herein was presented to the Budget Standing Committee of the City Council on January 28, 2021 at a public meeting. Through most of FY 2019-20, the City enjoyed robust economic conditions, bolstered by the continued growth in the biotechnology sector and the business/leisure travel sector in the Bay Area. However, the COVID-19 outbreak and the necessary virus containment measures brought much of the global economy to a standstill. With the shelter-in-place orders beginning in March 2020, the City’s economic activity fell precipitously, erasing much of the record-breaking revenue pace enjoyed throughout the first half of the fiscal year. Nevertheless, the combination of the City’s diverse revenue streams, early cost-control measures, and prudent fiscal management resulted in a General Fund surplus for FY2019-20, reflective of the overall strength of the City’s financial position. Taking into account the City’s strong liquidity position and high reserve levels, the City is better positioned that most other local governments to weather the sharp financial impacts of the worldwide pandemic. The following provides the results of the City of South San Francisco’s CAFR for the fiscal year ending June 30, 2020. The final CAFR is attached to the resolution associated with this report. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City of South San Francisco Page 2 of 17 I. FY2019-20 GENERAL FUND OVERVIEW The General Fund is the City’s main operating fund, where the bulk of the essential services delivered by departments such as Library, Parks and Recreation, Economic and Community Development, Fire, Police, and City Administration are budgeted. As noted in the General Fund Summary, which is included as Attachment 2 of this report, in Fiscal Year (FY) 2019-20, the City received $120.5 million in General Fund operating revenues, which was $6.8 million or 6.0 percent above the amended budget of $113.7 million. Including carryover purchase orders, General Fund expenditures were $113.4 million, a favorable variance of $8.9 million, or 7.3 percent. Including transfers in and out and other accounting adjustments including releasing all encumbrances for purchase orders (“POs”) deemed non-mission critical, the net change in fund balance (General Fund surplus) slightly exceeded $16.3 million. It is important to note that these numbers do not include any Measure W activities. In anticipation of a large General Fund surplus for FY 2019-20, Council appropriated approximately $8.7 million of the $16.3 million as part of prior Council actions. On June 24, 2020, as part of the budget approval process for FY 2020-21, Council approved a resolution approving $2.9 million of the City’s fund balance to cover the anticipated operating shortfall projected for FY 2020-21 resulting from the pandemic’s economic impact. An operational shortfall occurs when expenditures exceed revenues. At the same Council meeting, Council approved a $4.5 million appropriation from the anticipated surplus for the FY 2020-21 budget cycle in support of the various Capital Improvement Projects (“CIP”). In addition, on October 28, 2020, as part of the financial update to Council for the first quarter of the new fiscal year, Council approved a resolution appropriating an additional $1.2 million for various departmental efforts for FY2020- 21. As a result, after netting out the above actions, $7.6 million of the FY 2019-20 General Fund surplus remains as part of the City’s fund balance and is currently unappropriated. Table 1: FY 2019-20 General Fund Operating Summary Total Revenues $ 120,450,189 - Total Expenditures $ 107,672,589 Net Operating Surplus $ 12,777,600 - Net Transfers (In/Out) $ 2,620,205 + PO Encumbrance Release $ 6,160,575 TOTAL General Fund Surplus $ 16,317,969 Prior Appropriations Projected Shortfall FY2020-21 $ 2,939,139 CIP for FY2020-21 $ 4,509,171 October 28, 2020 Appropriations $ 1,220,250 Total Prior Appropriations $ 8,668,560 General Fund Surplus less Prior Appropriations equals: Net GF Unappropriated Surplus $ 7,649,409 City of South San Francisco Page 3 of 17 II. FY2019-20 GENERAL FUND REVENUE AND EXPENDITURES VARIANCE ANALYSIS (BUDGET vs. ACTUALS) The following details notable variances only between the FY2019-20 budget and actuals across the major subcategories within the General Fund. Please refer to Attachment 2 of this report for the detailed quantitative budget to actuals analysis. A. Revenue Variance Rationale (includes Measure W) The following section highlights the variance to budget across the major/notable revenue categories for FY2019-20. Favorable results, meaning a net positive for the City’s finances, are noted with a “+”, and conversely, unfavorable results are noted with a “-“ in the following section. 1. Property Tax +$6,188,309 Property tax revenues, one of the City’s primary recurring General Fund revenue sources, continues to reflect the strong real estate prices in the area – totaling $42.8 million in FY 2019-20. Revenues came in 16.9 percent, or $6.2 million higher than budget, primarily due to the former RDA property tax allocation, which was $4.5 million over expected budget. In addition to RDA property tax allocations coming in higher than budgeted, the secured property tax came in higher than anticipate by $540 thousand. 2. Sales & Use Tax +$1,096,058 Sales and Use Tax totaled $19.9 million in FY 2019-20, which was $1.1 million above the amended budget. This was a surprising result given an anticipated revenue decline as a result of the COVID-19 pandemic. The strength in this revenue category reflects several factors: (a) Sales tax collections from July 2019 through January 2020 hit near record-breaking levels for the city related to the strength of the overall economy pre-COVID. (b) The City’s sales tax collection continues to benefit from the overall strength of the retail sector, anchored by the three Costcos. (c) The strength overall in the e-commerce sector softened impact of the sharp declines the food products and transportation sectors, especially within the last quarter of the year. 3. Measure W -$665,910 Measure W brought in $11.7 million, or $666,000 under budget expectations. Budget projections for FY2019-20 were based on prior year’s actual receipts, which was $12.6 million in FY2018-19. While Measure W revenues generally follow similar collection patterns of sales and use taxes, Measure W revenues are applied and remitted to the City differently than the above revenue category. While still ending the year at healthy level s, the under performance reflects the acute effects of the COVID-19 pandemic on the local businesses and community members. City of South San Francisco Page 4 of 17 4. Transient Occupancy Tax -$3,026,272 Transient Occupancy Tax (TOT) collection was the most dramatically impacted by the shelter-in-place orders. TOT revenues for FY2019-20 was $13.8 million; this represents a $3.0 million shortfall from the expected $16.8 million that was projected in the June 2019 when the budget was originally adopted. However, staff updated the Budget Standing Committee in May 2020, modifying TOT projections down to $13.0 million. From that perspective, the revenue collections for the last quarter of FY2019-20 were generally on pace with projections. 5. Franchise Fees +$594,577 The City receives franchise fees from utility service providers from various industries, including solid waste disposal, cable, electric, and gas. Each franchise fee is based on a percentage of operating revenue, thus revenues from franchise fees increase as utility rates increase. FY2019-20 franchise fee revenues were $4.6 million, or $600 thousand above the amended budget. This is consistent with the amount that was collected in the previous fiscal year which saw an almost three percent increase. 6. Building & Fire Permits +$3,769,482 In FY2019-20, permit revenues reflected the numerous residential and commercial developments currently under construction in South San Francisco. As such, the City’s permit revenues reached a new record of $15.9 million, or $3.8 million more than the amended budget. Permit revenues are largely dependent upon prevailing winds in the local development environment. Staff from the Finance and Economic & Community Development departments meet regularly to review developments that are entitled, permitted, and under construction to project one-time permit and impact fee revenues, as well as the impact to recurring tax revenues. 7. Fines & Forfeitures +$195,854 Fines and Forfeitures totaled $814,000 in FY2019-20, which was $195,000 above the amended budget. Much of this gain was realized in the first half of the fiscal year, and became stagnant as revenues from enforcements (i.e., parking/street cleaning fines) became less of a priority during the shelter-in-place period. 8. Intergovernmental -$1,036,288 The City received a total of $1.6 million in revenue or $1.0 million below the amended budget from other government agencies. The reduction of funds largely reflects the mismatch in timing between when grants are accepted by Council and when monies are actually received by the City. Grants for departmental efforts, like fire suppression, street sweeping services and traffic signal maintenance, public safety OTS grants, and grants for the Library Department are often not received until the fiscal year following the actual approval by Council. City of South San Francisco Page 5 of 17 9. Charges for Services -$439,159 Charges for Services were $10.0 million or $440,000 below the amended budget. Revenues reflect services from various City departments, including Economic & Community Development, Fire, Parks & Recreation, Police, Public Works, and Library. Due to shelter-in-place orders, service charges, especially in the Park & Recreation Department, were significantly impacted as operating much of the normal P&R programs, like aquatics, special classes, events, picnic facility rental fees, and to a lesser extent, childcare, became infeasible. 10. Use of Money and Property +$1,003,786 Revenue from Use of Money and Property came in $1.0 million over the amended FY 2019-20 budget for a total of $6.3 million. This positive result is primarily driven by higher interest rates on investments than were originally projected. The Finance Department conservatively projects interest income and received $900,000 more than the amended budget. B. Expenditure Variance Rationale The City took proactive measures to curb expenditures, even prior to the County’s shelter-in-place order, as it became evident that revenues in the last third of the fiscal year would be impacted by the pandemic. Austerity measures like hiring freezes, curbing all non-essential spending, and eliminating non-mission critical purchase orders aided in savings in almost every department. The following section highlights the variance to budget for the departments that were over budget and all those departments who realized greater than a 10% savings level. Favorable results (under budget), meaning a net positive for the City’s finances, are noted with a “-”, and conversely, unfavorable results (over budget) are noted with a “+“ in the following section. The variance analysis includes all open purchase orders and accompanying budget appropriations that were rolled over to the subsequent fiscal year. 1. City Manager +$495,436 (+8.3%) The City Manager’s Office was over the FY 2019-20 amended budget of $6.0 million by $495,000. The unfavorable budget results were largely due to increased spending on professional and specialized services throughout the fiscal year, including the payment of $169,000 related to a pollution liability insurance policy at the Oyster Point Kilroy project site. That line item had not been taken into account during the normal budget cycle and was paid from the City Manager’s budget. It is expected that the City will recoup half of that amount as part of the Successor Agency funding request to the State Department of Finance in FY2021-22. The reimbursement amount was approved by the County Oversight Board on January 11, 2021. The remaining overage relates largely to encumbrances that exceeded budget for the General Plan. It is the expectation that the City Manager’s Office will reconcile the budget to encumbrances in the current fiscal year. 2. Finance -$453,819 (-11.8%) The Finance Department spent $3.9 million or $454,000 under the FY 2019-20 amended budget. The favorable budget result was due to the multiple vacancies during the fiscal City of South San Francisco Page 6 of 17 year, including the Deputy Finance Director, Financial Services Manager, and Financial Analyst positions. 3. Non-Departmental -$370,880 (-25.5%) Expenditures for the Non-Departmental program was $1.0 million or $370,000 below the amended budget. The Non-Departmental program primarily consists of programs and costs which benefit the City as a whole and cannot be attributed to one specific department, such as Animal Services, C/CAG and various dues and memberships. The favorable budget variance was realized primarily by not undertaking the bulk of the Clean Team project approved by Council during the FY2019-20 mid-year process. 4. Human Resources -$238,030 (-11.8%) The Human Resources Department had expenditures of $1.8 million or $238,000 below the FY 2019-20 amended budget. The favorable results are due to decreased spending on professional services and operating supplies throughout the fiscal year. 5. Economic & Community Development -$4,015,144 (-28.8%) In FY 2019-20, the Economic & Community Development Department had a favorable budget variance of $4.0 million. This variance is the result of the elimination of many prior year encumbrances (purchase orders), especially related to plan review and building inspection professional services. 6. Public Works +$732,230 (+12.7%) The Public Works Department was over the FY 2019-20 amended budget of $5.8 million by $732,000. The unfavorable budget results from higher than budgeted personnel costs, especially related to the Streets, Inventory and Assessment Program and various capital improvement projects. 7. Library -$722,555 (-10.8%) The Library Department spent $6.0 million or $722,000 under the FY 2019-20 amended budget. The favorable result was due to salary savings and lower operational expenditures as programs were halted from the shelter-in-place order. III. FY2019-20 SUMMARY RESULTS FOR OTHER FUNDS Separate from the General Fund, the CAFR reports the financial results for the various other funds within the City. The following outlines the year end information for the notable funds within the City. 1. Common Green Funds The Common Green Funds include a collection of landscape maintenance district funds in the Westborough area - West Park, Stonegate Ridge, and Willow Gardens. A portion of the City’s share of the one percent property tax levy supports these funds. FY 2019-20 revenues were $2 million, $271,000 above expectations of $1.7 million. City of South San Francisco Page 7 of 17 On the expenditure side, the Common Greens expenditures were $1.3 million of the $1.7 million budget. FY2019-20 expenditures were $420,000 less than anticipated. Overall, the fund balance for the Common Greens fund as of June 30, 2020 is $4,274,000. 2. Capital Improvement Projects The Capital Improvement Projects (CIP) Fund accounts for expenditures associated with the acquisition, construction, or improvement of City owned facilities and infrastructure. Funding comes from the General Fund, special revenue funds, grants, and fees. As such, the fund accounts for capital expenses on a pass-through basis, therefore, any unexpended capital budget appropriations are carried over to the subsequent fiscal year. Of the $74 million in amended budget, $49 million will be carried over in FY 2020-21. 3. Programs Special Revenue Fund The City Programs Special Revenue Fund accounts for donations and other accounts that is dedicated for particular programs. This fund is not budgeted and all revenue and expenses are recognized every fiscal year-end. The FY2019-20 net revenue is $1.8 million. 4. Sewer Enterprise Fund The Sewer Enterprise Fund provides for the operation, maintenance, and improvements of the Water Quality Control Plant (WQCP). Revenues were $39 million, falling short of projections by $69 million. The majority of the budget variance was related to the fact that the expected $53.4 million loan from the State Revolving Fund (SRF) did not materialize. The Sewer Enterprise only received a partial $19.5 million loan, driving much of the variance to budget. The remaining variance is due to the fact that services charges were lower than projected by $5 million. The combination of (a) residents in our sewer service area responding to drought conditions through water conservation efforts, and (b) the loss of some larger industries (due to cost of operating in Bay Area) negatively impacted the overall service charges revenues. On the expenditure side of the enterprise, expenditures were well-below expectations as the capital project expenditures were delayed to future years given the timing of the SRF loan. The enterprise only spent $30 million of the budgeted $77 million for capital projects for FY2019-20. Any unspent appropriations for capital projects will be carried over to the next year. Overall, the net position for the enterprise as of June 30, 2020 is $94,455,000. 5. Parking District Fund In FY2019-20, Parking District revenues totaled $1.1 million, which was $230,000 higher than the amended budget. $61,000 of the variance was primarily due to increases in collections on meter fees, parking permit fees, and Miller Avenue Garage parking fees in the first half of the fiscal year. In addition, the fund’s interest income under Use of Money City of South San Francisco Page 8 of 17 and Property and Transfers group outperformed budget expectations. On the expenditure side, the Parking District was below expectations with a total expenditure of $1.1 million of the budgeted 1.8 million. The variance is mainly due to the underspending of the $1 million capital project appropriation; only $200,000 was spent in FY2019-20. Any unspent appropriations for capital projects are carried over to the next year. The net position for the Parking District fund as of June 30, 2020 is $14,179,000. 6. Storm Water Fund In FY 2019-20, Storm Water revenues totaled $2.1 million, which is $8.5 million below the projected $10.7 million revenues. The majority of the budget variance was related to the fact that the expected $8.5 million Caltrans funding that did not materialize. The Storm Water Fund only received a partial $550,000, driving much of the budget shortfall of $8 million. On the expenditure side, the Storm Water Fund was below expectations as well with a total expenditure of $1.2 million of the budgeted $10.7 million. The variance is mainly due to the fact that only $960,000 was spent of the $9.3 million capital project appropriation in FY2019-20. Any unspent appropriations for capital projects are carried over to the next year. The net position for the Storm Water fund as of June 30, 2020 is $5,375,000. 7. Self-Insurance Fund The Self Insurance Fund ended FY2019-20 in the nominally positive territory, as total expenditures were $5 million against revenues of $5.2 million. Higher than expected costs related to legal settlement claims were tempered by lower workers compensation claims compared to the prior year. The fund also benefited from higher than expected interest income. 8. Measure A Fund Measure A revenues were $1.9 million, $400,000 above the projected budget of $1.5 million in FY2019-20. On the expenditure side, the Measure A expenditures were $2.6 million, which was $3 million below the $5.6 million budget. This was primarily due to unspent project budget that will be carried forward to the next fiscal year. The fund balance for the Measure A fund as of June 30, 2020 is $2,800,000. City of South San Francisco Page 9 of 17 IV. DEVELOPER IMPACT FEES The City has several developer impact fees in place to ensure that new development pays its fair share of the impact to the City’s infrastructure and capital needs. The City received $11.3 million in revenue during FY 2019-20 as detailed in the table below. Staff presented this information to Council on January 13, 2021 as part of the required reporting under Assembly Bill 1600 (“AB 1600”), also known as the Mitigation Fee Act. AB 1600 requires agencies to report annually on the fees collected and their use. Table 2: Summary of Developer Impact Fee Fund Balance as of June 30, 2020 Sewer Capacity Charge $ 2,035,408 Park Land Acquisition Fee 478,826 Parks Construction Fee 1,021,922 East of 101 Sewer Impact Fee 1,317,358 East of 101 Traffic Impact Fee 4,244,426 Public Safety Impact Fee 429,948 Bicycle/Pedestrian Impact Fee 12,438 Child Care Impact Fee 455,544 Oyster Point Interchange Impact Fee 1,195,993 Commercial Linkage Impact Fee 96,233 Total $ 11,288,096 V. FY2020-21 GENERAL FUND REVENUE AND EXPENDITURES UPDATE The FY 2020-21 budget that was approved by Council on June 24, 2020 anticipated that the pandemic would have a sustained negative impact on the City’s revenues for the full fiscal year. Council was updated with the first quarter (as of September 30, 2020) financial results at the October 28, 2020 Council meeting. The following section will show the revenue and expenditure results as of December 31, 2020. A. REVENUES The following table shows actual revenues as of December 31, 2020 with a comparative view of where the City’s revenues were at the same time last year (December 31, 2019): Table 3: FY 2019-20 vs. FY 2020-21 Revenues as of December 31 Revenue Types FY2019-20 FY2020-21 Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Taxes Property Tax 36,659,133 15,467,178 42.2% 41,595,650 21,407,880 51.5% Sales Tax 18,763,000 6,239,801 33.3% 16,900,000 6,493,797 38.4% Transient Occupancy Tax 16,855,297 8,280,123 49.1% 7,872,437 2,476,118 31.5% Other tax 6,058,132 2,354,194 38.9% 3,118,206 1,960,322 62.9% Franchise Fees 4,000,000 1,146,931 28.7% 4,600,000 1,064,940 23.2% Licenses and Permits 12,131,018 6,564,434 54.1% 14,995,496 7,403,812 49.4% Fines & Forfeitures 618,500 496,111 80.2% 789,249 234,236 29.7% City of South San Francisco Page 10 of 17 Revenue Types FY2019-20 FY2020-21 Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Intergovernmental 2,315,476 405,458 17.5% 3,639,940 1,171,755 32.2% Charges for Services Planning 111,190 528,709 475.5% 209,562 59,739 28.5% Fire 2,804,857 1,502,461 53.6% 2,076,314 1,448,756 69.8% Parks & Recreation 4,713,139 2,047,087 43.4% 2,966,522 369,680 12.5% Police 1,199,615 495,679 41.3% 727,811 430,697 59.2% City Admin & Other 1,589,037 957,340 60.2% 2,031,448 1,080,787 53.2% Money & Property 5,309,459 1,868,719 35.2% 3,827,794 1,440,662 37.6% Other Revenues 181,994 95,808 52.6% 175,341 62,576 35.7% Transfers In 1,524,868 600,458 39.4% 1,555,660 765,014 49.2% TOTAL REVENUES $114,834,714 $ 49,050,491 42.7% $ 107,081,429 $ 47,870,772 44.7% As shown in the above table, projected revenues for FY 2020-21 is $107.0 million – approximately $7.8 million less than the FY2019-20 budget. Actual revenue collections are higher on a percentage of budget basis than where the City was at the same time last year (42.7% vs. 44.7%). The following highlights the recommended revenue adjustments to the FY2020-21 budgets. 1. Property Tax. Property tax is collected in two large installments (December and April). As the above shows, property tax collections continues to be strong. Staff recommends that the revenue budget be conservatively increased by another 3.5% ($1,455,848) to $43.0 million, which would be slightly above the $42.8 million actuals for FY2019-20. 2. Sales Tax. There is about a two-month lag in the collection of sales tax receipts. The bulk of the sales tax figures shown above represent sales tax collection for July-November. Given the resilient trend actual collections for the first half of the year, and in consultation with the City’s sales tax consultant, staff recommends that sales tax revenues be increased by another $1.6 million to $18.5 million. 3. TOT. The travel industry continues to be acutely affected by the pandemic and is directly reflected in the poor collections in TOT. Staff recommends that the City further decrease revenue expectations by another 25% ($1,968,109) to $5,904,328. 4. Intergovernmental. The City expects that federal/grant reimbursements for City expenditures will be lower than expected this fiscal year. Staff recommends that the City further decrease the revenue expectation by $550,000 to $3,089,940. 5. Service Charges. Service charges is another revenue category that has been unduly affected by COVID. The much lower than expected revenue collection in Parks and Recreation service charges for the first half of the fiscal year represents the high rate of City of South San Francisco Page 11 of 17 refunds that were issued to residents for canceled services stemming from the pandemic. Given that normal operations will not resume for much of this fiscal year, staff recommends that revenue expectations be decreased by an additional $1 million to $1.966 million. If approved by Council, the above changes would result in a lowering the overall revenue budget for the year by $462,262 to $106,619,168. B. EXPENDITURES The following table shows by Department the actual expenditures that have been processed through December 31, 2020: Table 4: FY 2019-20 vs. FY 2020-21 Expenditures as of December 31 Expenditures FY2019-20 FY2020-21 Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget City Council Payroll 199,332 81,530 40.9% 205,970 62,775 30.5% Supplies & Services 51,419 28,524 55.5% 34,819 3,206 9.2% Interdepartmental Charges 39,540 19,558 49.5% 43,772 21,674 49.5% Total 290,291 129,612 44.6% 284,561 87,655 30.8% City Clerk Payroll 812,675 386,330 47.5% 849,578 431,504 50.8% Supplies & Services 234,927 96,594 41.1% 198,503 33,115 16.7% Interdepartmental Charges 43,459 21,364 49.2% 48,513 23,892 49.2% Total 1,091,061 504,288 46.2% 1,096,594 488,511 44.5% City Treasurer Payroll 58,353 19,224 32.9% 60,435 15,453 25.6% Supplies & Services 82,200 45,276 55.1% 82,200 41,697 50.7% Interdepartmental Charges 2,584 1,292 50.0% 2,889 1,445 50.0% Total 143,137 65,793 46.0% 145,524 58,594 40.3% City Attorney Supplies & Services 1,100,650 419,991 38.2% 893,150 318,849 35.7% Interdepartmental Charges 15,285 7,593 49.7% 16,899 8,400 49.7% Total 1,115,935 427,584 38.3% 910,049 327,249 36.0% City Manager - Payroll 2,625,715 1,129,847 43.0% 1,746,225 1,144,406 65.5% Supplies & Services 3,452,448 986,692 28.6% 2,539,816 508,715 20.0% Interdepartmental Charges 40,477 19,632 48.5% 44,144 21,465 48.6% Total 6,118,639 2,136,171 34.9% 4,330,185 1,674,587 38.7% Finance Payroll 2,312,981 1,307,674 56.5% 2,149,949 1,155,086 53.7% Supplies & Services 1,055,954 140,862 13.3% 1,068,058 135,860 12.7% Interdepartmental Charges 310,091 153,427 49.5% 346,545 171,655 49.5% Total 3,679,026 1,601,964 43.5% 3,564,552 1,462,601 41.0% Non-Expense/Dept. Payroll 6,760 1,172 17.3% 146,785 39,129 26.7% City of South San Francisco Page 12 of 17 Expenditures FY2019-20 FY2020-21 Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Supplies & Services 991,084 1,105,406 111.5% 1,590,638 859,959 54.1% Transfers 753,453 11,276,727 1496.7% 500,000 250,000 50.0% Total 1,751,297 12,383,305 707.1% 2,237,423 1,149,089 51.4% Human Resources Payroll 1,389,927 748,638 53.9% 1,474,719 761,051 51.6% Supplies & Services 432,164 71,384 16.5% 448,320 34,667 7.7% Interdepartmental Charges 96,974 47,921 49.4% 108,465 53,667 49.5% Total 1,919,065 867,943 45.2% 2,031,503 849,385 41.8% Economic & Comm Development Payroll 5,483,581 2,940,514 53.6% 4,577,900 2,830,864 61.8% Supplies & Services 8,096,294 929,754 11.5% 4,491,331 631,300 14.1% Capital Outlay 60,000 - 0.0% 60,000 - 0.0% Interdepartmental Charges 296,763 144,686 48.8% 327,516 160,063 48.9% Total 13,936,637 4,014,954 28.8% 9,456,747 3,622,227 38.3% Fire Payroll 25,569,074 13,818,296 54.0% 26,547,762 15,513,479 58.4% Supplies & Services 3,408,464 494,191 14.5% 2,554,957 546,765 21.4% Interdepartmental Charges 1,849,825 772,503 41.8% 1,865,577 814,544 43.7% Total 30,827,363 15,084,990 48.9% 30,968,296 16,874,788 54.5% Police Payroll 27,584,701 15,346,309 55.6% 28,575,330 15,226,298 53.3% Supplies & Services 1,595,967 714,706 44.8% 1,474,257 565,955 38.4% Interdepartmental Charges 1,891,262 932,559 49.3% 1,970,653 972,255 49.3% Total 31,071,930 16,993,574 54.7% 32,020,240 16,764,509 52.4% Public Works Payroll 3,026,853 1,862,555 61.5% 2,825,654 1,544,196 54.6% Supplies & Services 1,658,914 719,612 43.4% 2,050,049 637,511 31.1% Interdepartmental Charges 1,019,505 506,503 49.7% 1,059,984 526,742 49.7% Total 5,705,271 3,088,670 54.1% 5,935,686 2,708,450 45.6% Library Payroll 4,751,115 2,549,003 53.7% 4,706,672 2,508,358 53.3% Supplies & Services 961,008 397,437 41.4% 816,759 339,152 41.5% Interdepartmental Charges 573,980 273,304 47.6% 638,314 305,471 47.9% Total 6,286,103 3,219,744 51.2% 6,161,744 3,152,981 51.2% Parks and Recreation - - Payroll 13,039,349 7,019,985 53.8% 11,682,736 6,354,494 54.4% Supplies & Services 3,739,485 1,876,862 50.2% 3,127,404 1,101,433 35.2% Interdepartmental Charges 931,170 463,030 49.7% 982,306 488,598 49.7% Total 17,710,005 9,359,877 52.9% 15,792,445 7,944,524 50.3% CIP Transfers 3,789,608 910,323 24.0% 7,429,073 830,759 11.2% Total 3,789,608 910,323 24.0% 7,429,073 830,759 11.2% Total General Fund Expenditures 125,435,368 70,788,792 56.4% 122,364,622 57,995,907 47.4% City of South San Francisco Page 13 of 17 Expenditures FY2019-20 FY2020-21 Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Information Technology* - Payroll 1,555,490 811,031 52.1% 1,631,965 838,095 51.4% Supplies & Services 2,930,178 615,912 21.0% 2,573,355 680,530 26.4% Interdepartmental Charges 10,444 5,222 50.0% 10,469 5,235 50.0% Total 4,496,113 1,432,166 31.9% 4,215,789 1,523,860 36.1% * Non-General Fund; budgeted as internal service fund in Fund 785. The expenditures outpacing revenues is fairly typical for the City’s cashflows for this time of year. In the first half of the current fiscal year, actual expenditures were greater than revenues by $10.1 million (revenues of $47.9 million less expenditures of $58.0 million). In comparison, in the first half of the last fiscal year, actual expenditures were greater than revenues by almost $21.7 million (revenues of $49.0 million less expenditures of $70.8 million). As discussed in October, much of this mismatch is due to how the City pays its unfunded actuarial liability (UAL) to CalPERS. In order to receive a discount, the City pays CalPERS its UAL payment in July as a lump sum. This year, the UAL paid out of the General Fund exceeded $11.8 million. C. ADDITIONAL GENERAL FUND APPROPRIATIONS REQUEST The following are additional General Fund expenditure appropriations request totaling $435,000. 1. City Manager’s Office $150,000 Additional funds are sought to cover temporary staff costs necessary due to staff on leave due to COVID-19 or otherwise; and to pursue City Council direction concerning an entrepreneurial center/training center. 2. Finance $75,000 Recruiting for finance personnel in the public sector is becoming increasingly difficult. The high demand, especially regionally, for experienced finance employees with government sector backgrounds, the availability of well-paid finance positions in the private sector, compounded by the City’s low pension formula for Classic employees make hiring for Finance vacancies very challenging. The department currently has two Financial Analyst II vacancies, one of which is under a hiring freeze. Given the operational need in the department, Finance “over-hired” for the first Financial Analyst II vacancy and have made a Financial Services Manager offer to an experienced professional who is expected to start in February. The department expects that the additional cost of the over-hire can be absorbed by the salary savings realized the first half of the fiscal year. However, given that recruitment has already occurred for a Financial Analyst II and a candidate list is available, Finance is requesting that Council approve a budget amendment of $75,000, effectively unfreezing the second Financial Analyst II vacancy, for the remainder of the fiscal year (February through June). City of South San Francisco Page 14 of 17 3. Fire $20,000 For the past several years, the Fire Department has been working to complete internal reviews of each of its operational divisions. One of these divisions is Fire Prevention. An analysis of the workload, personnel availability and average fee for inspection estimates the Fire Prevention division has a work capacity deficiency. The department is requesting funding to add an additional hourly Safety Inspector. The analysis conducted by the department has shown that Safety Inspectors have a three-pronged positive effect for the City: (a) Generates revenue for the City that often exceed the actual personnel cost; (b) Improves the safety and service to the community; and (c) Provides apprentice level personnel who would have a succession pathway into and through the organization. The amount above would cover personnel costs for the last quarter of FY2020-21. 4. Parks and Recreation $190,000 In addition to the day-to-day execution of its mission, Parks and Recreation is planning for the future. Specifically, funding is sought for a Childcare Master Plan, focused on the City Council’s stated goal of “universal Pre-K;” and for a new Orange Memorial Park Master Plan, reimagining the future of our City’s main park. D. ADDITIONAL NON-GENERAL FUND APPROPRIATIONS REQUEST The following are the additional non-General Fund expenditure appropriations requests: 1. Grand Ave. / Airport Blvd. Streetscape Improvement Project (ST1801) $2,600,000 Funding Source: E101 Traffic Impact Fund An additional $2.6 million is being requested from East of 101 Traffic Impact Fee Fund to fund the expected construction cost of the above project. The capital improvement project currently already has a $1.525 million appropriation from the E101 Traffic Impact Fee fund. The additional appropriation is necessary to complete the project. 2. General Plan Update (City Manager’s Office) $675,000 Funding Source: General Plan Impact Fund An additional $675,000 is being requested from the General Plan Impact Fund to enable additional activities related to the ongoing General Plan Update. Specific tasks include a new Historical Resources Survey, additional community outreach regarding the zoning code and overall plan, and additional transportation and financial studies/analysis. The General Plan Impact Fund currently has a balance of $1,640,317. VI. RESERVES AND FY2019-20 GENERAL FUND SURPLUS CONSIDERATIONS In FY 2019-20, General Fund revenues, excluding Measure W, were $120.5 million. In keeping with the City’s Reserve Policy of maintaining 20 percent of operating revenues, the City’s reserves City of South San Francisco Page 15 of 17 levels will need to decrease slightly by approximately $300,000, from $24.4 million to $24.1 million. After meeting the reserves requirement noted above, the following is a summary of the City’s Reserve Levels: Table 5: Current City Reserves Summary General Reserves $ 24,100,000 Pension Stabilization Reserves + Infrastructure Reserves $ 5,546,000 $ 22,200,000 Total Reserve Levels $ 51,846,000 In addition to the above, the City also has available an additional $6.7 million from prior year General Fund surplus if Council chooses to appropriate the additional $435,000 request detailed in Section V.C. of this report. Please see the following table, which takes into account the recommended revenue budget adjustments (Section V.A.) and mid-year appropriations request: Table 6: FY 2019-20 General Fund Surplus Summary FY20 General Fund Surplus $ 16,317,969 Appropriations Projected Shortfall FY2020-21 $ 2,939,139 CIP for FY2020-21 $ 4,509,171 Oct. 28, 2020 Appropriations $ 1,220,250 Add’l Proj. Revenue Adjustments* $ 462,262 Mid-Year Appropriations Request $ 435,000 Total Projected Appropriations $ 9,615,822 General Fund Surplus less Prior Appropriations equals: Net GF Unappropriated Surplus $ 6,702,148 Staff would like guidance from the City Council related to City priorities that would determine the use of the above surplus. Consideration should be given to the ongoing global pandemic, which has reduced city revenues, such as setting aside additional funds to stabilize expected operational shortfalls in future years. According to a report released by Standard & Poor’s on January 6, 2021, the outlook on the U.S. Local Government Sector remains negative. As it states, “Local governments that have weaker financial reserves and less flexibility, and don’t proactively manage their budgets in 2021, will be most at risk for credit deterioration.” Staff also strongly recommends that any appropriations from the surplus be limited to one-time projects, versus funding ongoing needs such as increasing staff or continuing operating costs. As a financial best practice, one-time revenues should be used for one-time expenditures. Possible City of South San Francisco Page 16 of 17 future one-time needs include: Table 7: Unfunded Capital Projects Description Estimated Cost* 1 Oyster Point Sea Level Rise Protection $25M 2 Westborough Park Repairs $2M 3 Replace Fire Station 63 (MSB) $20M 4 Replace Fire Station 62 (E101) $20M 5 Orange Memorial Park Ballfields $14M 6 New Finance Computer System $5M 7 State Mandated Police Records System $2M 8 Oak Avenue Extension $16M 9 Purchase Parks and/or Open Space $7.5M 10 Replace City Pool Complex $25M 11 Grand Boulevard Initiative Phase III (local share) $1.7M * Very preliminary and expected to change when requirements are better understood. Additionally, medium-sized maintenance obligations related to city buildings, parks and other public spaces will require funding. For example, the HVAC system at Terra Bay gymnasium requires replacing at an estimated cost of $500,000. The City’s CalPERS (California Public Employees’ Retirement System) obligations are another category where available surplus could be spent. As of June 30, 2019, the City’s unfunded pension liability was $193.1 million. For clarity, pension liability measurement date is one year behind the current audit review period. The $193.1 million represents a 5.7% increase from the prior fiscal year of $182.7 million. Staff is planning on presenting to Council options on actively addressing the pension liability before the end of the fiscal year. Understanding that further discussions are needed to understand Council’s priorities, a breakdown of the City’s reserves and surplus could look as follows: Table 8: Notional Breakdown of City Reserves General Reserves (20%) $ 24,100,000 Pension Stabilization Reserve $ 5,546,000 Add’l Economic Downturn Reserve $ 3,000,000 Infrastructure Reserve $ 5,000,000 Future Capital Needs $ 20,902,148 Total Reserve Levels $ 58,548,148 Staff recommends maintaining the strategy of keeping 20% of revenues in reserves as essential to maintaining the City’s AAA-credit rating, plus keeping the pension stabilization reserve at its present level. The above also maintains an infrastructure reserve, notionally at $5 million, to cover unforeseen cost overruns on existing projects or unforeseen maintenance costs such as stormwater City of South San Francisco Page 17 of 17 sinkhole repair or roof replacement, while also allowing capacity for the City to take advantage of any grant opportunity which may require a local match. Under the above scenario, the City is left with $20.9M to address capital funding priorities of the Council. CONCLUSION The results of the FY2019-20 CAFR, with its healthy $16.3 million General Fund surplus levels, reflects the robust development and strength of the larger Bay Area economy. However, it is important to note that the high surplus would not have been attainable without the City’s early actions to be fiscally conservative. The austerity measures, like limiting all non-essential spending, enacting hiring freezes, and eliminating non-mission critical encumbrances bolstered the City’s financial position for the year. The City is entering a rather precarious time, as revenues are stressed, and expectations are that local governments will take longer than the rest of the economy to recover to pre-COVID recession revenue levels. Shifts in tax revenue trends are likely, especially as the worldwide pandemic has dealt a near catatonic blow to the travel industry. The City’s high revenue levels, combined with prudent policy decisions, are what will allow the City to maintain its enviable AAA-rating. Staff recommends that the City Council approve the resolution accepting the CAFR and financial results for the first half of FY2020-21and appropriating additional funds as described herein. Attachment 2 FY2019‐20 YEAR END SUMMARY GENERAL FUND OPERATING SUMMARY Favorable/ (Unfavorable)% Variance Property Taxes 38,659,658$ 36,659,133$ 42,847,443$ 6,188,309$ 16.9% Sales Tax 19,606,689 18,763,000 19,859,058 1,096,058 5.8% Transient Occupancy Tax 17,091,222 16,855,297 13,829,025 (3,026,272) ‐18.0% Other Taxes 4,995,404 6,058,132 4,515,376 (1,542,755) ‐25.5% Franchise Fees 4,469,808 4,000,000 4,594,577 594,577 14.9% Building and Fire Permits 15,381,415 12,131,018 15,900,500 3,769,482 31.1% Fines and Forfeitures 926,728 618,500 814,354 195,854 31.7% Intergovernmental 2,867,795 2,662,817 1,626,529 (1,036,288) ‐38.9% Charges for Services 11,563,754 10,417,837 9,978,678 (439,159) ‐4.2% Use of Money & Property 6,078,798 5,309,459 6,313,245 1,003,786 18.9% Other Revenues 330,845 181,994 171,403 (10,591) ‐5.8% Total Revenues 121,972,118$ 113,657,188$ 120,450,189$ 6,793,001$ 6.0% Add Prior Year Committed reserves ‐ 15,758,282 ‐ Total Available Resources 121,972,118$ 129,415,470$ 120,450,189$ 6,793,001$ (Favorable)/ Unfavorable % Variance City Council 258,759$ 290,291$ 258,413$ ‐$ (31,878)$ ‐11.0% City Clerk 770,987 1,091,061 978,451 ‐ (112,610) ‐10.3% City Treasurer 123,504 143,137 151,726 ‐ 8,590 6.0% City Attorney 961,588 1,115,935 1,009,372 ‐ (106,563) ‐9.5% City Manager 2,298,368 5,988,689 4,139,612 2,344,513 495,436 8.3% Finance 2,789,191 3,851,736 3,222,657 175,260 (453,819) ‐11.8% Non‐Departmental 1,276,969 1,452,844 1,014,839 67,125 (370,880) ‐25.5% Human Resources 1,562,789 2,019,065 1,672,701 108,334 (238,030) ‐11.8% Economic & Community Development 8,433,295 13,935,395 7,669,329 2,250,923 (4,015,144) ‐28.8% Fire 27,563,733 30,983,930 28,138,053 296,755 (2,549,122) ‐8.2% Police 28,482,441 31,071,930 30,190,060 ‐ (881,870) ‐2.8% Public Works 5,787,769 5,755,271 6,156,203 331,299 732,230 12.7% Library 5,628,684 6,674,593 5,940,870 11,168 (722,555) ‐10.8% Parks & Recreation 16,530,599 17,893,966 17,130,302 122,738 (640,926) ‐3.6% Total Expenditures 102,468,676$ 122,267,843$ 107,672,589$ 5,708,113$ (8,887,141)$ ‐7.3% Net Operating Surplus/ (Deficit) 19,503,442$ 7,147,626$ 12,777,600$ Other Financing Sources / (Uses) Transfers In 7,143,014$ 1,539,100$ 1,302,435$ ‐$ (236,666)$ ‐15% Transfers Out 5,651,831 16,902,319 2,951,629 ‐ (13,950,689) ‐83% Other Accounting Adjustments 971,011 ‐ 971,011 n/a Total Other Financing Sources/ (Uses) 1,491,183$ (15,363,218)$ (2,620,205)$ ‐$ (1,207,677)$ 8% Purchase Order Encumbrance Releases 6,160,575$ Net Change in Fund balance 20,994,625$ (8,215,592)$ 16,317,969$ General Fund Surplus Equity: 16,317,969$ Committed Appropriations: June 24, 2020 Council 4,509,171$ October 28, 2020 Council 1,220,250$ Projected Shortfall FY2020‐21 2,939,139$ NET GF Unappropriated Surplus: 7,649,409$ Variance from 2019‐20 Amended Expenditures Actual 2018‐19 Amended 2019‐20 Actual 2019‐20 Carryover Purchase Orders Variance from 2019‐20 Amended Revenues Actual 2018‐19 Amended 2019‐20 Actual 2019‐20 FY2019-20 Financial Results Presentation to City Council JANET SALISBURY, Director of Finance 10 FEBRUARY 2021 AGENDA 1 FY 19-20 Financial Highlights 2 FY 19-20 General Fund Overview 3 FY 20-21 Financial Update (2nd Quarter) 4 Reserves & Other Considerations 5 Q&A 2 Citywide Financial Highlights for FY2019-20 1FY19-20 Financial Highlights ▪General Fund* Operating Surplus = $16.3 million ➢Revenues = $120.5 million ➢Expenditures = $107.8 million ➢Transfers = -$2.6 million ➢Purchase Orders Encumbrance Release = $6.2 million ▪Committed Appropriations = $8.7 million ➢June 24, 2020 City Council Meeting –FY2020-21 Capital Improvement Projects = $4.5 million –FY2020-21 Operating Shortfall = $2.9 million ➢October 28, 2020 City Council Meeting –Departmental Appropriations = $1.2 million ▪Remaining Unappropriated Surplus = $7.6 million * Excludes Measure W Sales Tax 3 General Fund Revenues Expenditure Comparison (FY18-19, FY19-20 Budget, FY19-20 Actuals) 42.8 19.9 13.8 4.5 4.6 15.9 0.8 1.6 10.0 6.3 0.2 0 5 10 15 20 25 30 35 40 45 $ millionFY2018-19 Results FY2019-20 Budget FY2019-20 Actuals 4 2FY 19-20 General Fund Overview TOTAL FY2018-19 Expenditures (includes PO): $120.5M General Fund Expenditures Expenditure Comparison (FY18-19, FY19-20 Budget, FY19-20 Actuals) 0.3 1.0 0.2 1.0 6.5 3.4 1.1 1.8 9.9 28.4 30.2 6.5 6.0 17.3 0 5 10 15 20 25 30 35 $ millionFY2018-19 Results FY2019-20 Budget FY2019-20 Actuals 5 2FY 19-20 General Fund Overview TOTAL FY2018-19 Expenditures (includes PO): $113.4M FY 2020-21 General Fund Budget -Revenues ▪FY2020-21 Budgeted Revenues = $106.3 million ▪Total Receipts through December 31 = $47.9 million (44.7%) 6 REVENUES FY 2019-20 FY2020-21 (in millions)Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Property Tax $ 36.7 $ 15.5 12.2%$ 41.6 $ 21.4 51.5% Sales Tax $ 18.8 $ 6.2 33.3%$ 16.9 $ 6.5 38.4% TOT $ 16.9 $ 8.3 49.1%$ 7.9 $ 2.5 31.5% Licenses & Permits $ 12.1 $ 6.6 54.1%$ 15.0 $ 7.4 49.4% Intergovernmental $ 2.3 $ 0.4 17.5%$ 3.6 $ 1.2 32.2% Service Charges $ 10.4 $ 5.5 53.1%$ 8.0 $ 3.4 42.3% All Other Revenues $ 16.2 $ 6.0 36.9%$ 12.5 $ 4.8 38.1% Transfers In $ 18.5 $ 0.6 39.4%$ 1.6 $ 0.8 49.2% TOTAL $114.8 $49.1 42.7%$107.1 $ 47.9 44.7% 3FY 20-21 Financial Update $1.5M →43.1M $1.6M →18.5M $0.6M →3.1M $2.0M →5.9M $1.0M →7.0M Recommended Projection Adjustments $0.5M →106.6M General Fund Expenditure Budget ➢City Manager’s Office –Support Staff $ 150,000 ➢Finance –Financial Analyst II Vacancy $ 75,000 ➢Fire –Contract Safety Inspector $ 20,000 ➢Parks & Rec –Childcare & Orange Park Master Plan $ 190,000 7 ▪FY2020-21 Budgeted Expenditures = $122.4 million ▪Total Expenses through December 31 = $60.0 million (47.4%) Additional Appropriations Request: Total Request $435,000 3FY 20-21 Financial Update Non-General Fund Budget Adjustments ▪Grand Ave / Airport Blvd Streetscape Improvement Project –E101 Traffic Impact Fee Fund $ 2,600,000 ▪General Plan Update (City Manager’s Office) –General Plan Impact Fund $ 675,000 8 Total Non-GF Expenditure Budget Adjustments =$ 3,275,000 8 3FY 20-21 Financial Update FY20 General Fund Surplus $ 16,317,969 Appropriations Projected Shortfall FY2020-21 $ 2,939,139 CIP for FY2020-21 $ 4,509,171 Oct. 28, 2020 Appropriations $ 1,220,250 Add’l Proj. Revenue Adjustments* $ 462,262 Mid-Year Appropriations Request $ 435,000 Total Projected Appropriations $ 9,615,822 General Fund Surplus less Prior Appropriations equals: Net GF Unappropriated Surplus $ 6,702,148 FY2019-20 GF Surplus & Reserves 4Reserve & Other Considerations 9 City Reserves ▪General Reserves $ 24,100,000 ▪Pension Reserves 5,546,000 ▪Infrastructure Reserves 22,200,000 TOTAL Reserve Levels $ 51,846,000 FY19-20 General Fund Surplus Combined: $58,548,148 Unfunded Capital Projects & Reserve Considerations 10 Description Estimated Cost Oyster Point Sea Level Rise $ 25 M Westborough Park Repairs $ 2 M Replace Fire Station 63 (MSB)$ 20 M Replace Fire Station 62 (E101)$ 20 M Orange Memorial Park Ballfields $ 14 M New Finance Computer System $ 5 M State Mandated Police Records System $ 2 M Oak Avenue Extension $ 16 M Purchase Parks and/or Open Space $ 7.5 M Replace City Pool Complex $ 25 M Grand Blvd Initiative Phase III (local share)$ 1.7 M City Reserves ▪General Reserves $ 24,100,000 ▪Pension Reserves 5,546,000 ▪Add’l Econ Downturn 3,000,000 ▪Infrastructure Reserves 5,000,000 ▪Future Capital Needs 20,902,148 TOTAL $ 58,548,148 4Reserve & Other Considerations QUESTIONS? 11 5Q&A City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-61 Agenda Date:2/10/2021 Version:1 Item #:11a. Resolution approving the Comprehensive Annual Financial Report for fiscal year ended June 30,2020,mid- year update for fiscal year ending June 30, 2021, and additional appropriation requests. WHEREAS,the Government Accounting Standards Board Statement 34 (GASB 34)requires the City of South San Francisco to provide an overview of its financial activities for the fiscal year; and WHEREAS,the City of South San Francisco publishes a Comprehensive Annual Financial Report (CAFR), which includes its Basic Financial Statements as defined in Governmental Accounting Standards,as well as Supplementary Information; and WHEREAS,the City’s independent auditor opined that that the City’s financial statements present fairly,in all material respects, the City’s financial position as of year ended June 30, 2020; and WHEREAS,the auditor has as part of its most recently completed audit prepared a letter to the City Council, also known as the Independent Auditor’s Report, outlining the scope of the audit review; and WHEREAS,on June 24,2020,a resolution adopting the Fiscal Year (“FY”)2020-21 budget was approved by the City Council; and WHERAS, preliminary (unaudited) financial results for the first half of FY 2020-21 are available; and WHEREAS,additional appropriations are necessary to fund certain projects and/or programs for FY2020-21; and WHEREAS,the availability of unrestricted funds have been identified within the City’s General Fund as a result of the audit for year ended June, 30, 2020; and WHEREAS,on January 28,2021,the information related to the above were presented and accepted by the Budget Standing Committee at a public meeting. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council accepts the attached results of the attached CAFR. BE IT FURTHER RESOLVED that the City Council approves the revenue adjustments to the FY2020-21 budget based upon the preliminary unaudited financial data available through December 31, 2020. City of South San Francisco Printed on 4/21/2021Page 1 of 2 powered by Legistar™ File #:21-61 Agenda Date:2/10/2021 Version:1 Item #:11a. BE IT FURTHER RESOLVED that the City Council approves the additional expenditure requests for FY2020-21 described in the report associated with this resolution and approves the appropriation of additional funds, thereby amending the FY2020-21 expenditure budget. BE IT FURTHER RESOLVED that the fund balance and reserve categories presented in the report herein related to FY2020-21 are designed for decision-making and information purposes only for the City Council and are not intended to replace the reserve classifications supplied by GASB Statement 54 for governmental funds. BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to use professional judgment to make corrections to the adopted budget schedules as necessary to follow the intent of Council’s appropriation approval if any related numbers represented herein do not match. BE IT FURTHER RESOLVED that any adjustments to staffing levels,as detailed in the staff report and accompanying attachments herein are hereby approved,and the Director of Finance is hereby authorized to make commensurate budget adjustments as necessary. ***** City of South San Francisco Printed on 4/21/2021Page 2 of 2 powered by Legistar™ COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF SOUTH SAN FRANCISCO CALIFORNIA YEAR ENDED JUNE 30, 2020 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2020 Prepared by: Department of Finance This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page INTRODUCTORY SECTION Table of Contents ............................................................................................................................................... i Letter of Transmittal ......................................................................................................................................... v Certificate of Achievement for Excellence in Financial Reporting ................................................................ ix Organization Chart ............................................................................................................................................ x City Council and Directory of City Officials .................................................................................................. xi FINANCIAL SECTION Independent Auditor's Report ...................................................................................................................... 1 Management’s Discussion and Analysis ....................................................................................................... 5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position .................................................................................................................. 27 Statement of Activities ...................................................................................................................... 28 Fund Financial Statements: Major Governmental Funds: Balance Sheet ................................................................................................................................ 32 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 34 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 36 Reconciliation of the Net Change in Fund Balances Total Governmental Funds with the Statement of Activities ........................................................................................................ 38 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Budgetary Basis: General Fund ....................................................................................................................... 39 Low and Moderate Income Housing Assets ....................................................................... 40 Major Proprietary Funds: Statement of Net Position .............................................................................................................. 42 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 43 Statement of Cash Flows ............................................................................................................... 44 i CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page FINANCIAL SECTION (Continued) Fiduciary Funds: Statement of Fiduciary Net Position ............................................................................................. 46 Statement of Changes in Fiduciary Net Position .......................................................................... 47 Notes to Basic Financial Statements ...................................................................................................... 49 Required Supplementary Information: Schedule of Changes in Net Pension Liability and Related Ratios- Miscellaneous Plan .............................................................................................................. 96 Schedule of Contributions – Miscellaneous Plan .......................................................................... 97 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ........................ 98 Schedule of Contributions – Safety Plan ....................................................................................... 99 Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 100 Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 101 Notes to Schedule of Employer Contributions ............................................................................ 102 Supplementary Information: General Fund: Combining Balance Sheets ............................................................................................................. 106 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 107 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 108 Major Governmental Funds Other Than the General Fund and Special Revenue Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: East of 101 Sewer Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ................ 112 East of 101 Traffic Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............... 113 Child Care Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............................ 114 ii CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page FINANCIAL SECTION (Continued) Developer Deposit Capital Projects Fund (Non GAAP Legal Basis) .................................... 115 Capital Infrastructure Reserve Fund (Non GAAP Legal Basis) ............................................ 116 Capital Improvements Police Stations Capital Projects Fund (Non GAAP Legal Basis) ..... 117 Non-major Governmental Funds: Combining Balance Sheet ............................................................................................................... 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 126 Budgeted Non-major Government Funds: Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ................................................................................... 130 Internal Service Funds: Combining Statement of Net Position ............................................................................................ 138 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 139 Combining Statement of Cash Flows ............................................................................................. 140 Fiduciary Funds: Statement of Changes in Assets and Liabilities – Agency Fund .................................................. 142 STATISTICAL SECTION Net Position by Component – Last Ten Fiscal Years .................................................................... 145 Changes in Net Position - Last Ten Fiscal Years ........................................................................... 146 Fund Balances of Governmental Funds - Last Ten Fiscal Years ................................................... 150 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 152 Assessed Value of Taxable Property - Last Ten Fiscal Years ....................................................... 154 Direct and Overlapping Governments - Property Tax Rates Last Ten Fiscal Years ................................................................................................................ 155 Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 157 Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 158 iii CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page STATISTICAL SECTION (Continued) Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 159 Computation of Direct and Overlapping Debt ............................................................................... 160 Computation of Legal Bonded Debt Margin ................................................................................. 161 Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 162 Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Six Fiscal Years ................ 163 Redevelopment Pledged Revenue Coverage – Last Eight Fiscal Years ........................................ 164 Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 165 Principal Employers – Current Year and Nine Years Ago ............................................................ 166 Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 167 Operating Indicators by Function/Program – Last Six Fiscal Years ............................................. 168 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 169 Miscellaneous Information – Last Four Fiscal Years .................................................................... 170 iv v vi vii viii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of South San Francisco California For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 Executive Director/CEO ix Citizens of South San Francisco City Council City Clerk Rosa Govea Acosta City Treasurer Frank Risso City Manager Mike Futrell City Attorney Sky Woodruff Assistant to the City Manager Christina Fernandez Administrative Departments Operating Departments Fire Chief Jess Magallanes Public Works Director Eunejune Kim Library Director Valerie Sommer Parks and Recreation Director Sharon Ranals Econ . & Comm . Dev . Dir . Alex Greenwood Chief of Police Jeff Azzopardi Human Resources Director Leah Lockhart Finance Director Janet Salisbury Assistant City Manager/Chief Sustainability Officer Sharon Ranals Communications Director Leslie Arroyo Mark Addiego, Mayor Mark Nagales (District 2), Vice Mayor James Coleman (District 4), Member Flor Nicolas (AT LARGE), Member Information Technology Director Tony Barrera Capital Projects Director Jacob Gilchrist x City Council & Directory of Officials* City Council Mark Addiego Mayor Mark Nagales (District 2) Vice Mayor James Coleman (District 4) Councilmember Buenaflor Nicolas (AT LARGE) Councilmember Elected Officials Rosa Govea Acosta City Clerk Frank Risso City Treasurer Appointed Officials Mike Futrell City Manager Sharon Ranals Assistant City Manager / Parks & Recreation Director Janet Salisbury Finance Director Leslie Arroyo Communications Director Jeff Azzopardi Chief of Police Tony Barrera Information Technology Director Jacob Gilchrist Capital Projects Director Alex Greenwood Economic & Community Development Director Leah Lockhart Human Resources Director Jess Magallanes Fire Chief Eunejune Kim Public Works Director Valerie Sommer Library Director Budget Subcommittee Mark Addiego Buenaflor Nicolas *As of December 30, 2020 xi This Page Left Intentionally Blank INDEPENDENT AUDITOR’S REPORT Honorable Members of the City Council City of South San Francisco, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of South San Francisco (City), California, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the discretely presented component unit financial statements of the South San Francisco Conference Center Authority (Authority), which represents 0.91%, 1.62%, and 1.58%, respectively, of the assets, net position, and revenue of the primary government. These component unit financial statements were audited by other auditors, whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for this entity, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Opinions In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining information of the City as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, Supplemental Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 20, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Pleasant Hill, California January 20, 2021 3 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Government Accounting Standards Board Statement 34 (GASB 34) requires the City of South San Francisco to provide an overview of its financial activities for the fiscal year. Please read this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements. FISCAL YEAR (FY) 2019-20 FINANCIAL HIGHLIGHTS Summary: The City of South San Francisco started Fiscal Year 2019-20 with a strong economy throughout the region fueled by development growth from the biotechnology and housing sectors. In February 2020, S&P Global Ratings (“S&P”) assigned an issuer rating of triple A (“AAA”) to the City. AAA is the highest rating possible and is important as higher ratings generally result in lower borrowing costs. In a release announcing the rating, S&P noted the City's strong financial position, bolstered by the local economic growth and development momentum. The solid executive management, fiscally sound policies and practices, and sound budgetary performance were also recognized. From March 2020 to June 2020, the City was significantly impacted – both financially and operationally – as a result of the global COVID-19 pandemic. In reaction to the COVID-19 pandemic, six Bay Area counties including San Mateo County, issued a Shelter-in-Place order effective March 17, 2020, followed by the State of California’s similar Stay-at-Home order a few days later. All non-essential businesses were ordered to close. The hospitality industry, restaurants, city services and retail businesses were hit extremely hard. The San Francisco- Oakland-Hayward Metropolitan Statistical Area unemployment rate increased from 2.8% in June 2019 to 12.6% in June 2020, according to the U.S. Bureau of Labor Statistics. The economic impacts of the global pandemic is the main driver for the $2.0 million decrease in General Fund revenues (excluding operating transfers in) versus the prior year; this represents a relatively modest decrease of 1.5%. The expected revenue decline as a result COVID-19 related contractions, especially in sales taxes, transient occupancy taxes, intergovernmental, and charges for services, were offset by the healthy growth in property taxes and licenses and permits revenues, reflective of the strong fundamentals of the local economy. As in years past, the General Fund reserves were fully funded in accordance with the City’s Reserves Policy, which follows best practices as recommended by the Government Finance Officers’ Association (GFOA). City-wide financial highlights of the year include the following: Total Net Position for Governmental Activities in FY 2019-20 increased by $29.6 million in comparison to prior year (from $275 million to $305 million). The increase in assets is a result of the continued growth in the local economy. Total liabilities increased by $73.9 million from the issuance of bonds related to the police facility, OPEB liability, and other liabilities. 5 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information  Net pension liability to CalPERS for fiscal year ending June 30, 2020 increased by $10.4 million (5.69% increase) to $193.1 million. The City’s net pension liability for the prior fiscal year was $182.7 million. The liability increase was driven by revised actuarial valuations from CalPERS taking into account member contributions and investment earnings.  Cash and investments and Net Expenses from Governmental Activities increased compared to the prior year, reflecting the ongoing strong development environment in South San Francisco. Cash and investments increased $24.2 million or 12.3% from $195.4 million to $219.6 million, while Net Expenses increased $22.1 million or 39.6% from $55.8 million to $77.9 million.  Sales tax revenues for Governmental Funds remained relatively flat to FY 2018-19 at $32.3 million. The COVID-19 pandemic driven declines in the latter half of the year erased much of the gains from the near record-breaking pace in sales tax collections from July 2019 through January 2020. This flat growth in FY 2019-20 is in stark contrast to the healthy 12.3% increase the City saw in FY 2018-19.  Transient Occupancy Tax (“TOT”) collections were the most dramatically impacted by the Shelter-in-Place orders. TOT revenues declined by 19.1% to $13.8 million, representing a $3.3 million decrease, versus the prior year. Much like sales tax, the City saw a dramatic increase in TOT collections from July 2019 through January 2020, reflective of the strong tourism and business economy in the region prior to the COVID-19. However, with leisure and business travel dramatically falling with the onset of the COVID-19 pandemic, TOT collections dropped precipitously from March 2020 through June 2020.  Revenue from licenses and permits for Governmental Funds increased $0.5 million or 3.2% from $15.4 million to $15.9 million, reflecting the City’s diverse investments to broaden development throughout the City. South San Francisco continues to see remarkable levels of new construction, especially in the East of 101 area driven by non-residential and biotechnology companies along with high density residential in the downtown area.  Intergovernmental revenues for Governmental Funds increased $5.1 million or 38.6% from $13.2 million to $18.3 million, primarily due to the contribution of $6.1 million from the Successor Agency for the Oyster Point Development Project and in addition, the prior year included a one-time transfer of funds from San Mateo County for $0.7 million to purchase open space on Sign Hill. The South San Francisco Fire Department responded to fewer mutual aid events throughout the State of California due to the fire season. As such, the California Office of Emergency Services (CalOES) reimbursed the City $0.4 million less for employee and equipment costs compared to FY 2018-19. 6 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information OVERVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT This Comprehensive Annual Financial Report is in six parts: 1) The Introductory Section, which includes the Transmittal Letter and general information; 2) Management’s Discussion and Analysis (this part); 3) The Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the notes accompanying these statements; 4) Required Supplementary Information and the accompanying notes; 5) Other Supplementary Information including combining statements for non-major governmental funds, internal service funds, other budgetary information, and a fiduciary statement of changes in assets and liabilities; and 6) The Statistical Section. Basic Financial Statements The Basic Financial Statements are comprised of the City-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position. The City-wide Financial Statements provide a longer-term view of the City’s activities as a whole, and consist of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to the basis used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities provides a detailed explanation of the change in net position for the year. All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole. The Fund Financial Statements report the City’s operations in more detail than the government- wide statements and focus primarily on the short-term activities of the City’s General Fund and other Major Funds. The Fund Financial Statements measure only current revenues, expenditures, and fund balances; they exclude capital assets, long-term debt and other long-term amounts. Major Funds account for the major financial activities of the City and are presented individually, while the activities of Non-major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major Funds are explained below. 7 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information The fiduciary statements provide financial information about the activities of Non-Obligated Assessment Districts, for which the City acts solely as agent. Note 1 to the Basic Financial Statements provides a summary of the City’s significant accounting policies, fund categories, and fund types. City-wide Financial Statements The Statement of Net Position and the Statement of Activities present information about the following:  Governmental activities - All of the City’s basic services are considered to be governmental activities, including general government, fire, public works, parks and recreation, library, and economic and community development. These services are supported by general City revenues such as taxes, and by specific program revenues from grants, contributions, and fees. The City’s governmental activities also include the City of South San Francisco Capital Improvements Financing Authority and South San Francisco Public Facilities Financing Authority, as the City Council also governs these entities.  Business-type activities - All the City’s enterprise activities are reported here, including wastewater treatment, parking, and storm water management. Unlike governmental services, user fees fully support most of these services.  Component Unit - The City of South San Francisco Conference Center Authority comprises the component unit. The Authority serves the City and other interests and it has a governing body separate from the City Council. Citywide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Fund Financial Statements The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called Major Funds. Each Major Fund is presented individually, with all Non- major Funds summarized and presented only in a single column. Subordinate schedules present the detail of these Non-major funds. Major Funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of City’s activities. Fund Financial Statements include governmental, enterprise and internal service funds as discussed below. 8 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Governmental Fund Financial Statements are prepared on the modified accrual basis, which mean they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements. Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis and include all their assets, liabilities and deferred outflows/inflows of resources, current and long-term. Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and business-type activities, their activities are reported only in total at the Fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City Funds. These revenues are eliminated in the citywide financial statements and any related profits or losses are returned to the activities which created them, along with any residual net position of the Internal Service Funds. Comparisons of Budget and Actual financial information are required in the Basic Financial Statements only for the General Fund and other Major Funds that are Special Revenue Funds. Fiduciary Statements The City is the agent for certain assessment districts, holding amounts collected from property owners which await transfer to these Districts’ bond trustees. The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations. FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE The following analyses focus on the net position and changes in the City’s Governmental Activities (Tables 1 through 3 and Chart 1) and Business-type Activities (Tables 4 and 5), which are presented in the City-wide Statement of Net Position and Statement of Activities. The comparative results for FY 2019-20 are presented against FY 2018-19. Governmental Activities Net position may serve over time as a useful indicator of the City’s financial condition. Table 1 below shows that total assets deferred outflows of resources exceed the total liabilities and deferred inflows of resources as of June 30, 2020 for governmental activities: 9 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Governmental Net Position Table 1 Governmental Net Position at June 30 (In Millions) The total net position for Governmental Activities increased by $29.6 million in FY 2019-20 compared to the prior year, reflecting significant increases in assets, primarily in other assets. The increase in other assets is due to bond proceeds from the sale of bonds for the police facility. Pursuant to GASB 75 requirements, the City, as in prior years, recognized the full OPEB liability of $64.4 million. The City’s net pension liability increased $10.4 million to $193.1 million from prior year’s liability of $182.7 million. Increase / (Decrease) 2020 2019 Amount % Cash and investments 219.6$ 195.4$ 24.2$ 12.4% Other assets 90.5 36.6 53.9 147.3% Capital assets 301.5 272.1 29.4 10.8% Total assets 611.6 504.1 107.5 21.3% Total outflows of resources 29.4 32.4 (3.0) (9.3%) Total outflow of resources 29.4 32.4 (3.0) (9.3%) Long‐term debt outstanding 56.8 5.3 51.5 971.7% Other liabilities 276.3 253.9 22.4 8.8% Total liabilities 333.1 259.2 73.9 28.5% Deferred inflows of resources 3.2 2.2 1.0 45.5% Total deferred inflow of resources 3.2 2.2 1.0 45.5% Net position: Net investment in capital assets 296.2 271.3 24.9 9.2% Restricted 138.7 117.8 20.9 17.7% Unrestricted (130.2) (114.0) (16.2) 14.2% Total net position 304.7$ 275.1$ 29.6$ 10.8% 10 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information The following table shows the changes in net position for governmental activities: Table 2 Expense and Program Revenue Comparison in Governmental Activities (In Millions) Increase / (Decrease) 2020 2019 Amount % Revenues Program revenues: Charges for services 48.8$ 62.7$ (13.9)$ (22.2%) Operating grants and contributions 8.8 12.1 (3.3) (27.3%) Capital grants and contributions 4.9 1.6 3.3 206.3% Total program revenues 62.5$ 76.4$ (13.9)$ (18.2%) General revenues: Taxes: Property taxes 37.4$ 33.5$ 3.9$ 11.6% Sales taxes 31.8 31.8 0.0 0.0% Transient occupancy taxes 13.8 17.1 (3.3) (19.3%) Other taxes 9.1 9.5 (0.4) (4.2%) Property taxes in lieu 7.5 7.2 0.3 4.2% Investment earnings 6.4 4.8 1.6 33.3% Miscellaneous 9.2 8.6 0.6 7.0% Special Item 0.3 (0.5) 0.8 (154.0%) Total general revenues 115.5$ 112.0$ 3.5$ 3.1% Total revenues 178.0$ 188.4$ (10.4)$ (5.5%) Expenses General government 15.4$ 12.1$ 3.3$ 27.3% Fire department 34.5 32.0 2.5 7.8% Police department 36.1 33.0 3.1 9.4% Public works department 17.7 20.4 (2.7) (13.2%) Recreation and community development 19.6 18.0 1.6 8.9% Library 6.7 6.2 0.5 8.1% Economic and community development 9.8 10.6 (0.8) (7.5%) Interest on long‐term debt 0.5 0.0 0.5 Total expenses 140.3$ 132.3$ 8.0$ 6.0% Excess (deficiency) before transfers 37.7$ 56.1$ (18.4)$ (32.9%) Transfers (8.1) (2.1) (6.0) 285.7% Change in net position 29.6 54.0 (24.4) (45.2%) Net position ‐ beginning 275.1 221.1 54.0 24.4% Net position ‐ ending 304.7$ 275.1$ 29.6$ 10.7% 11 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Governmental program expenses increased by $8.0 million in comparison to the prior year due to increase funding of the capital improvement programs such as the police facility, costs associated with the COVID-19 health crisis, normal salary increases along with additional expenditures related to professional services and enhanced collections by the Public Works department. Total revenues decreased by $10.4 million compared to FY 2018-19 reflecting the impact of COVID-19 on city services, grants and contributions, and the hospitality industry. For FY 2019-20, revenues for the City’s Governmental Activities Funds are distributed as follows: Chart 1 Revenues by Source - Governmental Activities FY 2019-20 Charges for Services 27% Operating Grants and Contributions 5% Capital Grants and Contributions 3% Property taxes 25% Sales taxes 18% Transient occupancy taxes 8% Franchise fees 3% Other taxes 2% Interest and rentals 4% Miscellaneous 5% 12 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information The revenue distribution in the above chart changed slightly from the prior year. Most categories did not have a variance of 3% versus the prior year except for charges for services (decreased by 6%) and property taxes (increased by 4%). Similar to Table 2 above, Table 3 below illustrates the difference between program revenues and expenses. Program revenues consist of capital and operating grants and contributions and fees for services. General City revenues, such as property taxes, sales taxes, transient occupancy taxes, licenses and permits, and investment earnings, cover the shortfall between program revenues and program expenses. Table 3 Net (Expense) Revenue from Services Governmental Activities (In Millions) In FY 2019-20, the net expense for governmental activities increased by $22.1 million from $55.8 million to $77.9 million, due to significant increases in expenditures from general government, police department, and recreation and community services. Public Works department continues to generate revenues driven by enhanced collections. Business Type Activities Table 4 below shows that total assets deferred outflows of resources exceed the total liabilities and deferred inflow of resources as of June 30, 2020 for business-type activities: Increase / (Decrease) 2020 2019 Amount % General government (9.2)$ (2.8)$ (6.4)$ 228.6% Fire department (28.4) (25.9) (2.5) 9.7% Police department (33.3) (30.0) (3.3) 11.0% Public works department 15.7 17.3 (1.6) (9.2%) Recreation and community services (16.0) (12.8) (3.2) 25.0% Library (5.9) (5.7) (0.2) 3.5% Economic and community development (0.3) 4.1 (4.4) (107.3%) Interest on long‐term debt (0.5) 0.0 (0.5) Total (77.9)$ (55.8)$ (22.1)$ 39.6% 13 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Table 4 Business-type Net Position at June 30 (in Millions) The total net position for business-type activities increased by $13.5 million compared to the prior year. Total assets increased by $30.5 million, or 18.5%, reflecting increases of capital assets related to construction in the WQCP Wet Weather and Digester Improvements Project and other projects. However, total liabilities increased by $16.5 million due to drawdowns of $19.6 million on the 2018 Clean Water State Revolving Fund and offset by debt service payments on the other loans. Increase / (Decrease) 2020 2019 Amount % Cash and Investments 27.3$ 26.1$ 1.2$ 4.6% Other assets 3.6 0.5 3.1 620.0% Capital assets 164.8 138.6 26.2 18.9% Total assets 195.7 165.2 30.5 18.5% Deferred outflows related to pension 3.3 3.6 (0.3) (8.3%) Total Deferred outflow of resources 3.3 3.6 (0.3) (8.3%) Long‐term liabilities outstanding 47.8 33.2 14.6 44.0% Other liabilities 36.8 34.9 1.9 5.4% Total liabilities 84.6 68.1 16.5 24.2% Deferred inflows related to pension 0.4 0.2 0.2 100.0% Total deferred inflow of resources 0.4 0.2 0.2 100.0% Net position: Net investment in capital assets 112.0 100.5 11.5 11.4% Restricted 0.0 0.0 0.0 Unrestricted 2.0 0.0 2.0 100.0% Total net position 114.0$ 100.5$ 13.5$ 13.4% 14 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Table 5 below shows the changes in net position for business-type activities: Table 5 Change in Business-type Net Position (In Millions) Business-type activities ended the fiscal year with a positive change in its net position by $13.5 million compared to $7.2 million the previous fiscal year. This positive $13.5 million change was partially attributable to revenues from sanitary sewer service fee rate increases, operating grants and contributions, and transfers. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable resources. Such information can be helpful in determining the City’s financial status. Unrestricted fund balance is a major indicator of designated and uncommitted resources available for spending in future fiscal years. Increase / (Decrease) 2020 2019 Amount % Expenses Sewer Enterprise 26.2$ 25.7$ 0.5$ 1.9% Parking District 1.1 0.9 0.2 22.2% Storm Water 1.2 1.2 0.0 0.0% Total expenses 28.5 27.8 0.7 2.5% Revenues Program Revenues Charges for Services 25.7 25.8 (0.1) (0.4%) Operating grants and contributions 7.4 6.5 0.9 13.8% Total program revenues 33.1 32.3 0.8 2.5% General revenues Investment earnings 0.8 0.6 0.2 33.3% Total general revenues 0.8 0.6 0.2 33.3% Excess (deficiency) before transfers 5.4 5.1 0.3 5.9% Transfers 8.1 2.1 6.0 285.7% Change in net position 13.5 7.2 6.3 87.5% Net position ‐ beginning (as adjusted) 100.5 93.3 7.2 7.7% Net position ‐ ending 114.0$ 100.5$ 13.5$ 13.4% 15 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information At June 30, 2020, the City’s governmental funds reported combined fund balances of $254.9 million, an increase of $69.7 million, or 37.7%, compared to the prior year. The General Fund ending fund balance was $85.1 million, reflecting a slight increase of $0.2 million, or 0.2%. Total governmental fund revenues decreased by $10.6 million or 5.7%, from $187.1 million to $176.5 million, with significant decreases in charges for services, transient occupancy taxes and other revenues as a result of the COVID-19 pandemic. Total governmental fund expenditures increased by $12.9 million or 9.2%, from $139.8 million to $152.7 million, largely stemming from increased Capital Improvement project expenditures for the police facility and costs associated with the COVID-19 health crisis. In addition, the City’s personnel costs for salaries and pensions increased in accordance with negotiated Memorandums of Understanding and increases in the cost for various benefits, primarily pensions and healthcare. Comparison of Final Budgets to Original Adopted Budget The budget is initially adopted by the City Council in June, based on revenue projections that are up to date through May. Between May and the end of the fiscal year, there can be major fluctuations in revenues depending on the economy and/or actions by the State of California. There can also be significant changes to departmental expenditure budgets to the extent unforeseen expenses occur. In the Fund Financial Statements, the page titled “Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual” later in this document shows the initial adopted and final budgets for the General Fund. Significant changes between the adopted and final budgets are described below: 16 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Table 6 Comparison of Final Budgets to Original Adopted Budget (in Thousands) Original Final Pct Discussion: Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance) Property taxes 36,659$ 36,659$ -$ Sales taxes 31,133 31,133 - Transient occupancy taxes 16,855 16,855 - Other taxes 6,058 6,058 - Franchise Fee 4,000 4,000 - Intergovernmental 1,627 2,663 1,036 63.7% Reflects various grants to Fire Department for fire suppression, Public Works Department for street cleaning and traffic signal maintenance, Police Department, and Library Department. Interest and rentals 3,059 3,059 - Licenses and permits 12,131 12,131 - Charges for services 10,418 10,418 - Fines and forfeitures 619 619 - Other 182 182 - Total 122,741$ 123,777$ 1,036$ 0.8% Original Final Pct Discussion: Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance) City Council 290$ 290$ -$ City Clerk 1,057 1,091 34 3.2% City Treasurer 143 143 - City Attorney 1,116 1,116 - City Manager 2,543 6,001 3,458 136.0% Accounts for updating the General Plan Finance 3,294 3,852 558 16.9%Accounts for carryover purchase orders and the transfer of staff from City Manager's Office to Finance Department Non-Departmental 998 1,453 455 45.6% Accounts for Citywide Clean Team Human Resources 1,795 2,019 224 12.5%Accounts for carryover purchase orders from prior year and Summer Youth Program Fire 29,609 30,984 1,375 4.6% Police 30,927 31,072 145 0.5% Public Works 5,018 5,755 737 14.7% Accounts for carryover purchase orders from prior year for operation of Street, Inventory and Assessment and various capital improvement programs. Parks and Recreation 17,763 17,894 131 0.7% Library 6,132 6,675 543 8.9% Accounts for various local and State grants Economic and Community Development 9,926 13,935 4,009 40.4%Accounts for carryover purchase orders from prior year for plan review and building inspection professional services. Total 110,611$ 122,280$ 11,669$ 10.5% 17 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Analysis of Major Governmental Funds General Fund Revenues. In FY 2019-20, total General Fund revenues, excluding transfers in, were $130.9 million, which was $4.9 million, or 3.9% over the final amended budget. Total General Fund expenditures, excluding transfers out, ended FY 2019-20 at $107.7 million. Overall, including transfers, the General Fund ended FY 2019-20 with a surplus of $0.2 million, predominantly due to the items discussed below. Property tax collections in FY 2019-20 was $42.8 million, which was $6.2 million or 16.9% over budget. This was mainly due to higher than expected increases in assessed values and new properties added to the tax roll. Sales tax revenues, including Measure W, was $31.6 million, which was $0.4 million or 1.4% over budget. Last year, sales tax receipts were 9.9% over budget. Transient occupancy taxes came in at $13.8 million, which was $3.0 million or 18.0% below budget. Demand for travel and lodging throughout the area fell significantly after March 2020 due to the COVID-19 pandemic. Licenses and permits revenues were $15.9 million, which was $3.8 million or 31.1% over budget, setting an all-time record for a fiscal year. The strong demand for licenses and permits were primarily attributable to non-residential and bio-tech development in the East of 101 area and high density residential development in the downtown area. Charges for services was $10.0 million, which was $0.4 million or 4.2% below budget, due to the reduction in city services resulting from the Shelter-in-Place order. Expenditures. General Fund expenditures, excluding transfers out, were $8.9 million, or 7.3% under the final amended budget. Higher than expected expenditures for the City Manager’s Office is due to professional services related to updating the City’s General Plan and the Public Works Department as a result of additional capital improvement projects. Compared to the prior year, General Fund expenditures decreased from $114.4 million to $113.4 million, driven by expenditure “savings” as a result of staff vacancies in multiple departments, available state and local grants, and reduced city services due to the COVID-19 pandemic. As of June 30, 2020, the General Fund total fund balance was $85.1 million, which included $17.7 million in committed reserves, $18.4 million in restricted reserves, and $43.3 million in unassigned reserves. The unassigned reserves are designated by the City Council based on the City’s Reserves Policy, which follows best practices from the Government Finance Officers’ Association (GFOA) of between 15-20 percent of General Fund operating revenue. Within the City’s unassigned reserves, the City Council designated funds for economic contingencies, potential catastrophe and budget contingencies. 18 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information City Housing Fund Up until Redevelopment Agencies were abolished in FY 2011-12 by the State of California under ABX1 26, the City set aside 20% of Redevelopment property taxes to fund the provision of new affordable housing units, as well as the operation and maintenance of housing stock that the Redevelopment Agency had already funded. That fund was formerly called the Low/Moderate Income Housing Fund. With its source of funding (20% of Redevelopment property tax dollars) abolished, the City Council voted to take on the operations of the former housing units by becoming the Housing Successor Agency, with activities funded primarily from the rental revenues received by the City for those City-owned occupied housing units. Any shortfall between the rents received and the operations and maintenance costs of those housing units are funded by either one time grants or by the General Fund. Any fund balances will be held for future housing property maintenance needs. As of June 30, 2020, the fund balance was $6 million. In FY 2019-20, the City Housing Fund received for $0.3 million in revenues. The fund had $0.3 million in expenses, the majority of which was for administrative staff costs to support the City’s Housing Division. Capital Improvement Fund The City consolidates and reports its governmental fund-type capital project expenditures in this fund. Resources consist of transfers from the General Fund, major and non-major funds, developer impact fees, and gasoline taxes and transportation sales taxes from non-major governmental funds. Resources also come from federal, state, and local grants, contributions from other cities, utilities and private developers. Entire capital projects are appropriated in one- year, but expended over multiple years, with unspent appropriations carried forward year-to-year until completion. Developer Impact Fees To ensure developers pay their fair share of the impact on the City’s capital and infrastructure, the City imposes impact fees on new developments. In FY 2019-20, South San Francisco experienced a robust development environment that accounted for significant collection of developer impact fees and interest earned including $1.5 million in East of 101 Sewer Impact Fees for upgrades at Pump Station #2 and #14, $5.1 million in East of 101 Traffic Impact Fees for Adaptive Traffic Control System, South Airport Bridge Replacement, Traffic Improvements, and other various projects, $0.7 million in Child Care Impact Fees for the construction of a new preschool facility, and $1.2 million in Oyster Point Improvement Impact Fees to repay a loan from the South San Francisco Successor Agency. 19 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Other Governmental Funds Presented as a group in the Basic Financial Statements, these funds are individually presented as Supplementary Information. Enterprise Funds Sewer Enterprise Fund The Sewer Enterprise fund reported operating income (before non-operating revenues and operating transfers) of $5.6 million in FY 2019-20. Operating revenues increased $1.3 million or 4.3% from $29.9 million to $31.2 million. Operating expenses increased $0.6 million or 2.8% from $24.9 million to $25.5 million, reflecting the impact of increases in employee compensation along with slight increases in normal expenditures like professional services and supplies. Parking District Fund In FY 2019-20, the Parking District fund reported an operating loss (before non-operating revenues and operating transfers) of $0.2 million compared to an operating income of $0.3 million last year. Operating revenues decreased by $0.2 million or 19.0% from $1.2 million to $1.0 million, primarily due to loss revenues from parking meters as a result of the Shelter-in- Place order. Operating expenses increased by $0.2 million or 24.9% from $0.9 million to $1.1 million due to higher personnel cost and professional services expenditures. Storm Water Fund The Storm Water Fund is used to account for resources needed to fund storm drain and storm infrastructure operations, maintenance, capital replacement, and compliance with various federal and state regulations regarding storm water runoff. Revenues totaled $0.4 million, primarily from a levy on property owners. Transfers in totaled $1.1 million, primarily comprised of $0.3 million from the General Fund and $0.8 million from non-major governmental funds. Expenses totaled $1.2 million, which was flat from prior year. Net position increased $0.9 million or 20% from $4.5 million to $5.4 million. CAPITAL ASSETS Generally accepted accounting principles require the City to add infrastructure to its reportable capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety devices. The City has successfully reported on the depreciated value of all such assets acquired or built since 1980. The City reports the depreciated book value of other types of capital assets such as buildings, land, equipment and furniture, on the City-wide Statement of Net Position. Such information is summarized below and is more completely detailed in Note 3 to the Basic Financial Statements. The City depreciates all its capital assets, except land and construction in progress. 20 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information At June 30, 2020, the City had $466.3 million in capital assets, net of depreciation, representing a substantial increase of $55.6 million from the prior year, driven primarily by in progress construction projects. The City’s various capital asset types used in governmental and business-type activities, are illustrated in Table 7 below: Table 7 Capital Assets (in Millions) at June 30 Increase / (Decrease) 2020 2019 Amount % Governmental Activities: Land 66.7$ 67.9$ (1.2)$ (1.8%) Buildings and improvements 96.3 96.2 0.1 0.1% Equipment and vehicles 24.4 22.8 1.6 7.0% Furniture and fixtures 2.6 2.6 0.0 0.0% Infrastructure ‐ streets 200.1 199.7 0.4 0.2% Infrastructure ‐ traffic control devices 12.6 10.8 1.8 16.7% Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0% Construction in progress 71.4 35.3 36.1 102.3% Less accumulated depreciation (181.5) (172.1) (9.4) 5.5% Totals 301.5$ 272.1$ 29.4$ 10.8% Business‐type Activities Land 0.8$ 0.8$ ‐$ 0.0% Buildings and improvements 67.1 67.1 0.0 0.0% Clean water facilities and transmission line 79.9 79.9 0.0 0.0% Infrastructure ‐ storm drains 6.2 5.6 0.6 10.7% Infrastructure ‐ streets 7.3 7.3 0.0 0.0% Equipment and vehicles 18.5 18.5 0.0 0.0% Construction in progress 55.4 25.1 30.3 120.7% Less accumulated depreciation (70.4) (65.7) (4.7) 7.2% Totals 164.8$ 138.6$ 26.2$ 18.9% Total City 466.3$ 410.7$ 55.6$ 13.5% 21 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information DEBT ADMINISTRATION Each of the City’s debt issuances is discussed in detail in Note 5 to the Basic Financial Statements. A summary of the City’s outstanding debt for the past two fiscal years is as follows (excluding unamortized bond premiums): Table 8 Outstanding Debt (In Millions) at June 30 In February 2020, the City of South San Francisco Public Facilities Financing Authority issued $43,905,000 lease revenue bonds, Series 2020A for the acquisition, construction, and installation of certain capital improvements for the police facility. The increase of $15.0 million in Business-type Activities outstanding debt stems from the drawdown of additional $19.6 million State Water Resources Board loan and the retirement of $4.6 million during the fiscal year 2020. The largest remaining debt obligations are the following: - Four loans to the City’s Sewer Enterprise Fund from the State Water Resources Control Board to finance the expansion of the City’s water quality control plant and pay for Wet Weather improvements which will improve environmental impacts on the Bay. Principal and interest repayments commence on the loans upon completion of the project related to each loan package. The four current loans outstanding have fixed interest of 2.6%, 2.5%, 2.4% and 1.8% are due in 2022, 2026 and 2028. Because of the regional benefits and equity interest in these projects, the City of San Bruno shares in the loan repayments for the first two of the four current loans. Increase / (Decrease) Governmental Activities 2020 2019 Amount % Lease Revenue Bonds 43.9$ ‐$ 43.9$ 100.0% Plus: Unamortized Bond Premium 9.9 9.9 100.0% Loan payable to Successor Agency 3.6 4.8 (1.2) (25.0%) Capital leases 0.5 0.8 (0.3) (37.5%) Total Governmental Activities Outstanding Debt 57.9$ 5.6$ 52.3$ 933.9% Business‐type Activities State Water Resources Board loans 50.1$ 35.1$ 15.0$ 42.7% 2005 Sewer Bonds 2.7 3.0 (0.3) (10.0%) Total Business‐type Activities Outstanding Debt 52.8$ 38.1$ 14.7$ 38.6% 22 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS The economic outlook and major accomplishments of the City are discussed in the accompanying Transmittal Letter. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This Comprehensive Annual Financial Report is intended to provide readers with a general overview of the City’s finances. Questions about this report or requests for additional financial information should be directed to the City of South San Francisco Finance Department, P.O. Box 711, South San Francisco, CA 94083, and phone (650) 877-8512. The City’s website is at www.ssf.net. 23 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources. The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these columns are followed by a total column which presents the financial position of the entire City. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities. The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures. The Statement of Activities presents the City’s expenses first, listed by program, and follow these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position. Both these Statements include the financial activities of the City, the City of South San Francisco Capital Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the City of South San Francisco Public Facilities Financing Authority that are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely presented component unit of the City. This data is presented separately from other funds of the City to reflect operations under control of a governing body with a voting majority which is different from the City Council. 25 This Page Left Intentionally Blank Component Unit Primary Government South San Francisco Governmental Business-Type Conference Activities Activities Total Center ASSETS Cash and investments (Note 2)$219,566,116 $27,325,296 $246,891,412 $4,167,754 Receivables: Accounts 16,767,546 1,945,842 18,713,388 132,024 Accrued interest 933,169 106,435 1,039,604 Loans 1,568,273 1,568,273 Due from Conference Center 60,650 60,650 Deposit 289,790 289,790 30,589 Inventory 574 574 Prepaid items 1,074,537 1,074,537 Restricted cash and investments (Note 2)49,539,457 1,544,799 51,084,256 Properties held for redevelopment (Note 1N)20,272,633 20,272,633 Capital assets (Note 3): Nondepreciable 138,045,760 56,196,895 194,242,655 77,670 Depreciable, net accumulated depreciation 163,437,708 108,577,040 272,014,748 3,033,599 Total Assets 611,556,213 195,696,307 807,252,520 7,441,636 DEFERRED OUTFLOW OF RESOURCES Related to pension (Note 7)23,107,237 2,567,470 25,674,707 Related to OPEB (Note 9)6,291,000 699,000 6,990,000 Total Deferred Outflow of Resources 29,398,237 3,266,470 32,664,707 LIABILITIES Accounts payable 8,480,313 2,921,965 11,402,278 121,235 Accrued salaries and benefits 3,416,228 3,416,228 74,698 Accrued interest payable 152,583 397,273 549,856 Other payables 2,747,749 1,730,714 4,478,463 Deposits 4,190,223 7,500 4,197,723 348,385 Unearned revenue 1,186,224 238,330 1,424,554 Accrued insurance losses (Note 11): Due within one year 643,224 643,224 Due in more than one year 14,322,000 14,322,000 Compensated absences obligation (Note 1L): Due within one year 4,445,590 492,267 4,937,857 Due in more than one year 3,892,630 256,939 4,149,569 Debt and capital lease obligations (Note 5): Due within one year 1,139,252 5,038,675 6,177,927 Due in more than one year 56,753,858 47,766,932 104,520,790 Net OPEB Liability - due in more than one year (Note 9)57,920,400 6,435,600 64,356,000 Net pension liability - due in more than one year (Note 7)173,773,619 19,308,180 193,081,799 Total Liabilities 333,063,893 84,594,375 417,658,268 544,318 DEFERRED INFLOW OF RESOURCES Related to pension (Note 7)2,531,087 281,232 2,812,319 Related to OPEB (Note 9)702,000 78,000 780,000 Total Deferred Inflow of Resources 3,233,087 359,232 3,592,319 NET POSITION (Note 6) Net investment in capital assets 296,243,640 111,968,328 408,211,968 3,111,269 Restricted for: Debt service Special revenue projects 39,038,800 39,038,800 Capital projects 81,290,558 81,290,558 Redevelopment and community development activities 18,372,633 18,372,633 Total Restricted Net Position 138,701,991 138,701,991 Unrestricted (130,288,161)2,040,842 (128,247,319)3,786,049 Total Net Position $304,657,470 $114,009,170 $418,666,640 $6,897,318 See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO STATEMENT OF NET POSITION JUNE 30, 2020 27 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government Governmental Activities: General Government $15,378,452 $5,217,199 $990,684 Fire 34,442,874 6,073,247 5,074 Police 36,095,698 2,092,791 729,756 Public Works 17,737,243 23,355,636 5,132,245 $4,930,640 Parks and Recreation 19,620,848 2,872,786 778,448 Library 6,728,102 97,603 674,866 Economic and Community Development 9,837,938 9,067,781 446,481 Interest on long term debt 512,376 Total Governmental Activities 140,353,531 48,777,043 8,757,554 4,930,640 Business-type Activities Sewer 26,213,885 24,296,811 6,887,043 Parking District 1,116,840 1,003,222 Storm Water 1,206,694 412,707 552,998 Total Business-type Activities 28,537,419 25,712,740 7,440,041 Total Primary Government $168,890,950 $74,489,783 $16,197,595 $4,930,640 Component Unit Conference Center $3,757,978 $1,413,138 General revenues: Taxes: Property taxes Sales taxes Transient occupancy taxes Franchise Fees Other taxes Motor vehicle in lieu, unrestricted Property taxes in lieu of vehicle license fees Investment earnings Gain from sale of property Miscellaneous Special Item: Proceeds from sale of common interest (Note 12D) Remittance of land sale proceeds to taxing entities Transfers (Note 4) Total general revenues, special item and transfers Change in Net Position Net Position - Beginning Net Position - Ending See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2020 Program Revenues 28 Component Unit South San Francisco Governmental Business-Type Conference Activities Activities Total Center ($9,170,569) ($9,170,569) (28,364,553) (28,364,553) (33,273,151) (33,273,151) 15,681,278 15,681,278 (15,969,614) (15,969,614) (5,955,633) (5,955,633) (323,676) (323,676) (512,376) (512,376) (77,888,294) (77,888,294) $4,969,969 4,969,969 (113,618) (113,618) (240,989) (240,989) 4,615,362 4,615,362 (77,888,294) 4,615,362 (73,272,932) ($2,344,840) 37,415,367 37,415,367 31,855,027 31,855,027 13,829,025 13,829,025 1,794,405 4,594,577 4,594,577 4,515,376 4,515,376 53,089 53,089 7,457,005 7,457,005 6,384,253 824,916 7,209,169 132,580 9,152,218 9,152,218 10,570 1,247,950 1,247,950 (971,011) (971,011) (8,060,646) 8,060,646 107,472,230 8,885,562 116,357,792 1,937,555 29,583,936 13,500,924 43,084,860 (407,285) 275,073,534 100,508,246 375,581,780 7,304,603 $304,657,470 $114,009,170 $418,666,640 $6,897,318 Primary Government Net (Expenses) Revenues and Changes in Net Position 29 This Page Left Intentionally Blank FUND FINANCIAL STATEMENTS Major funds are defined generally as having significant activities or balances in the current year. The funds described below were determined to be Major Funds by the City in fiscal 2020. Individual non-major funds may be found in the Supplemental section. GENERAL FUND This fund accounts for resources traditionally associated with government, such as administration, public safety, library, parks maintenance, and recreation, outside of those accounted for in other funds. LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND To account for the activities related to the assets assumed by the City as Housing Successor to the housing activities of the former Redevelopment Agency of the City of South San Francisco. The main source of revenue for this fund is the repayment of loans restricted for housing activities. CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND To account for expenditures associated with the acquisition, construction, or improvement of City owned facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees. EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND These fees provide new development’s share of new and rehabilitated sewer collection and treatment facilities to serve the East of Highway 101 area. EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND These fees are to provide new development’s share of new and expanded roadway and intersection improvements to serve the East of Highway 101 area. CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND These citywide fees provide new development’s share of new and expanded childcare facilities to serve the childcare needs of working parents. DEVELOPER DEPOSIT FUND To account for a deposit by a large corporation for various capital projects the developer agreed to fund. CAPITAL INFRASTRUCTURE RESERVE FUND Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks, and storm water facilities). CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND To account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting to new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment’s, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. 31 CITY OF SOUTH SAN FRANCISCO GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2020 Capital Projects Funds Low and Moderate East of 101 General Income Capital Sewer Fund Housing Assets Improvement Impact Fees ASSETS Cash and investments (Note 2)$61,426,353 $5,126,649 $775,253 $5,385,188 Receivables: Accounts 7,813,980 39,303 8,129,238 Accrued interest 243,824 24,294 22,652 Due from Conference Center 60,650 Loans 837,839 Due from other funds (Note 4B)4,400,000 Inventory 574 Restricted cash and investments (Note 2)352,797 Properties held for redevelopment (Note 1N)18,372,633 Total Assets $92,670,811 $6,028,085 $8,904,491 $5,407,840 LIABILITIES Liabilities: Accounts payable $2,018,069 $18,021 $2,230,534 Accrued salaries and benefits 3,416,228 Other payable 186,956 1,636,896 Deposits 1,935,463 Unearned revenue 401,412 Due to other funds (Note 4B)4,400,000 Total Liabilities 7,556,716 18,021 8,668,842 FUND BALANCE Fund Balances (Note 6): Nonspendable 574 Restricted 18,372,633 6,010,064 $5,407,840 Committed 17,723,338 Assigned 5,720,788 Unassigned 43,296,762 235,649 Total Fund Balances (Deficits)85,114,095 6,010,064 235,649 5,407,840 Total Liabilities and Fund Balances (Deficits)$92,670,811 $6,028,085 $8,904,491 $5,407,840 See accompanying notes to basic financial statements 32 Capital Projects Funds East of 101 Capital Capital Other Total Traffic Child Care Developer Infrastructure Improvement Governmental Governmental Impact Fees Impact Fees Deposit Reserve Fund Police Station Funds Funds $24,909,470 $6,157,689 $18,140 $29,224,045 $51,128,905 $184,151,692 767,348 16,749,869 106,276 27,519 943 139,879 207,923 773,310 60,650 730,434 1,568,273 4,400,000 574 $49,099,081 87,579 49,539,457 1,900,000 20,272,633 $25,015,746 $6,185,208 $19,083 $29,363,924 $49,099,081 $54,822,189 $277,516,458 $2,246,031 $372,258 $6,884,913 3,416,228 248,541 509,660 2,582,053 $2,295 2,252,465 4,190,223 784,812 1,186,224 4,400,000 2,295 2,494,572 3,919,195 22,659,641 574 $25,015,746 $6,185,208 16,788 46,604,509 50,902,994 158,515,782 17,723,338 $29,363,924 35,084,712 43,532,411 25,015,746 6,185,208 16,788 29,363,924 46,604,509 50,902,994 254,856,817 $25,015,746 $6,185,208 $19,083 $29,363,924 $49,099,081 $54,822,189 $277,516,458 33 CITY OF SOUTH SAN FRANCISCO GOVERNMENTAL FUNDS BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2020 Total fund balances reported on the governmental funds balance sheet $254,856,817 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds because of the following: Capital assets used in Governmental Activities are not financial resources and, therefore, are not reported in the Governmental Funds. 295,786,759 Internal service funds are used by management to charge the cost of management of communication, telephone, building, fleet maintenance, equipment replacement, workers' compensation, employee benefits, insurance, and post-retirement healthcare benefits to individual funds. The assets and liabilities are included in Governmental Activities in the Statement of Net Position. 23,517,899 The assets and liabilities below are not due and payable in the current period and therefore are not reported in the funds: Long-term debt (57,403,329) Interest payable (152,583) Deferred outflows related pension 23,107,237 Deferred outflows related to OPEB 6,291,000 Net OPEB liability (57,920,400) Net pension liability (173,773,619) Deferred inflows related to OPEB (702,000) Deferred inflows related to pension (2,531,087) Non-current portion of compensated absences (6,419,224) Net position of governmental activities $304,657,470 See accompanying notes to financial statements 34 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2020 Low and Moderate East of 101 General Income Capital Sewer Fund Housing Assets Improvement Impact Fees REVENUES Property taxes $42,847,443 Sales taxes 31,563,148 Transient occupancy taxes 13,829,025 Franchise Fees 4,594,577 Other taxes 4,515,376 Intergovernmental 1,626,529 $6,974,570 Interest and rentals 4,845,966 $310,801 $174,089 Licenses and permits 15,900,500 Charges for services 9,978,678 2,207,462 1,317,358 Fines and forfeitures 814,354 Other 390,733 Total Revenues 130,906,329 310,801 9,182,032 1,491,447 EXPENDITURES Current: City Council 258,413 City Clerk 978,451 City Treasurer 151,726 City Attorney 1,009,372 City Manager 4,139,612 Finance 3,222,657 Non-departmental 1,014,840 2,745 Human Resources 1,672,701 Fire 28,138,053 Police 30,190,060 Public Works 6,156,203 25,831,965 Parks and Recreation 17,130,302 Library 5,940,870 Economic and Community Development 7,669,329 287,975 Other Debt service: Principal repayments Interest and fiscal charges Total Expenditures 107,672,589 287,975 25,831,965 2,745 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 23,233,740 22,826 (16,649,933)1,488,702 OTHER FINANCING SOURCES (USES) Proceeds from sale of property Issuance of debt Bond premium Transfers in (Note 4C)1,302,435 19,817,722 Transfers out (Note 4C)(24,642,202)(516,996) Total Other Financing Sources (Uses)(23,339,767)19,817,722 (516,996) Net Change in Fund Balances before special items (106,027)22,826 3,167,789 971,706 SPECIAL ITEMS Proceeds from sale of common interest (Note 12D)1,247,950 Remittance of land sale proceeds (971,011) Net Change in Fund Balances 170,912 22,826 3,167,789 971,706 Fund balances (deficits) - July 1 84,943,183 5,987,238 (2,932,140)4,436,134 Fund balances (deficits) - June 30 $85,114,095 $6,010,064 $235,649 $5,407,840 See accompanying notes to financial statements Capital Projects Funds 36 Capital Projects Funds East of 101 Capital Capital Other Total Traffic Child Care Developer Infrastructure Improvements Governmental Governmental Impact Fees Impact Fees Deposit Reserve Fund Police Station Funds Funds $2,024,929 $44,872,372 709,951 32,273,099 13,829,025 4,594,577 2,002,706 6,518,082 9,715,961 18,317,060 $814,074 $209,913 $7,172 $1,061,572 $7,002 1,434,409 8,864,998 15,900,500 4,244,426 455,544 9,238,537 27,442,005 814,354 2,676,958 3,067,691 5,058,500 665,457 7,172 1,061,572 7,002 27,803,451 176,493,763 258,413 978,451 151,726 1,009,372 4,139,612 3,222,657 2,745 1,020,330 1,672,701 23,406 28,161,459 7,218,033 60,337 37,468,430 2,745 7,000 8,072,417 40,070,330 17,130,302 5,940,870 823,599 8,780,903 723,901 723,901 1,210,000 1,210,000 331,990 407,156 739,146 2,745 2,745 7,000 7,550,023 11,320,816 152,678,603 5,055,755 662,712 7,172 1,054,572 (7,543,021)16,482,635 23,815,160 43,905,000 43,905,000 10,242,530 10,242,530 10,900,000 6,097,809 38,117,966 (633,466) (14,232)(1,698,620)(19,141,507) (46,647,023) (633,466) (14,232)9,201,380 54,147,530 (13,043,698)45,618,473 4,422,289 648,480 7,172 10,255,952 46,604,509 3,438,937 69,433,633 1,247,950 (971,011) 4,422,289 648,480 7,172 10,255,952 46,604,509 3,438,937 69,710,572 20,593,457 5,536,728 9,616 19,107,972 47,464,057 185,146,245 $25,015,746 $6,185,208 $16,788 $29,363,924 $46,604,509 $50,902,994 $254,856,817 37 CITY OF SOUTH SAN FRANCISCO Reconciliation of the NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2020 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $69,710,572 Amounts reported for Governmental Activities in the Statement of Activities are different because of the following: Capital Assets Transactions Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. Capital assets additions 39,197,210 Retirement and adjustment of capital assets (2,055,012) Current year depreciation (8,546,864) Long-Term Debt Payments Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities. Proceeds from issuance of bonds (43,905,000) Bond premium (10,242,530) Repayment of principal is added back to fund balance 1,210,000 Amortization of premium is added back to fund balance 379,353 Accrual of Non-Current Items of current financial resources and therefore is not reported as revenue or expenditures in governmental funds (net change): Interest payable (152,583) Compensated absences (997,100) Net pension liability, deferred outflows and inflows of resources (15,622,490) Net OPEB liability, deferred outflows and inflows of resources (1,139,400) Allocation of Internal Service Fund Activity Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service fund is reported with governmental activities.1,747,780 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $29,583,936 See accompanying notes to financial statements The amount below included in the Statement of Activities does not require the use 38 CITY OF SOUTH SAN FRANCISCO GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes $36,659,133 $36,659,133 $42,847,443 $6,188,310 Sales taxes 31,133,000 31,133,000 31,563,148 430,148 Transient occupancy taxes 16,855,297 16,855,297 13,829,025 (3,026,272) Franchise fees 4,000,000 4,000,000 4,594,577 594,577 Other taxes 6,058,132 6,058,132 4,515,376 (1,542,756) Intergovernmental 1,626,854 2,662,818 1,626,529 (1,036,289) Interest and rentals 3,059,459 3,059,459 4,845,966 1,786,507 Licenses and permits 12,131,018 12,131,018 15,900,500 3,769,482 Charges for services 10,417,837 10,417,839 9,978,678 (439,161) Fines and forfeitures 618,500 618,500 814,354 195,854 Other 181,994 181,994 390,733 208,739 Amounts available for appropriation 122,741,224 123,777,190 130,906,329 7,129,139 Charges to appropriations (outflows): City Council 290,291 290,291 258,413 31,878 City Clerk 1,056,761 1,091,062 978,451 112,611 City Treasurer 143,137 143,138 151,726 (8,588) City Attorney 1,115,935 1,115,935 1,009,372 106,563 City Manager 2,542,579 6,001,363 6,496,800 (495,437) Finance 3,294,240 3,851,736 3,397,916 453,820 Non-departmental 997,844 1,452,844 1,081,965 370,879 Human Resources 1,794,862 2,019,064 1,781,034 238,030 Fire 29,608,967 30,983,929 28,434,808 2,549,121 Police 30,926,920 31,071,930 30,190,060 881,870 Public Works 5,018,087 5,755,272 6,487,502 (732,230) Parks and Recreation 17,762,501 17,893,967 17,253,040 640,927 Library 6,132,137 6,674,593 5,952,038 722,555 Economic and Community Development 9,925,951 13,935,395 9,920,252 4,015,143 Total charges to appropriations 110,610,212 122,280,519 113,393,377 8,887,142 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets 2,250,000 2,250,000 (2,250,000) Transfers in (Note 4C) 1,261,591 1,539,100 1,302,435 (236,665) Transfers out (Note 4C) (18,020,454) (42,438,974) (24,642,202) 17,796,772 Total Other Financing Sources (Uses) (14,508,863) (38,649,874) (23,339,767) 15,310,107 (2,377,851) (37,153,203) (5,826,815) 31,326,388 SPECIAL ITEMS Proceeds from sale of common interest (Note 12D) 1,247,950 1,247,950 Remittance of land sale proceeds (971,011) (971,011) NET CHANGE IN FUND BALANCE ($2,377,851) ($37,153,203) (5,549,876) $31,603,327 Fund Balance - July 1 84,943,183 Adjustment to budgetary basis: Encumbrance adjustments 5,720,788 Fund Balance - June 30 $85,114,095 See accompanying notes to financial statements Budgeted Amounts NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS 39 Variance with Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest and rental $167,000 $167,000 $310,801 $143,801 Other 140,000 140,000 (140,000) Total Revenues 307,000 307,000 310,801 3,801 EXPENDITURES: Current: Economic and Community Development 543,291 3,241,558 2,790,088 451,470 Total Expenditures 543,291 3,241,558 2,790,088 451,470 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (236,291) (2,934,558) (2,479,287) 455,271 NET CHANGE IN FUND BALANCE ($236,291) ($2,934,558) (2,479,287) $455,271 Fund balance - July 1 5,987,238 Adjustment to budgetary basis: Encumbrance adjustments 2,502,113 Fund balance - June 30 $6,010,064 SPECIAL REVENUE FUND See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO LOW AND MODERATE INCOME HOUSING ASSETS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Budgeted Amounts 40 MAJOR PROPRIETARY FUNDS Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. SEWER ENTERPRISE FUND This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital expansion of the wastewater collection and treatment system. PARKING DISTRICT FUND This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities. STORM WATER FUND This fund accounts for user charges sustaining the Storm Water Management Program mandated by state and federal authorities. 41 CITY OF SOUTH SAN FRANCISCO PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2020 Governmental Business-type Activities - Enterprise Funds Activities Sewer Parking Storm Internal Enterprise District Water Total Service Funds ASSETS Current assets: Cash and investments (Note 2)$21,442,247 $3,760,097 $2,122,952 $27,325,296 $35,414,424 Receivables: Accounts 1,932,217 13,625 1,945,842 17,677 Accrued interest 79,962 17,404 9,069 106,435 159,859 Deposits 289,790 Restricted cash and investments (Note 2)1,544,799 1,544,799 Prepaid Items 1,074,537 Total current assets 24,999,225 3,777,501 2,145,646 30,922,372 36,956,287 Noncurrent assets: Capital assets (Note 3): Nondepreciable 53,862,650 421,149 1,913,096 56,196,895 80,951 Depreciable, net accumulated depreciation 96,900,238 10,017,847 1,658,955 108,577,040 5,615,758 Total non-current assets 150,762,888 10,438,996 3,572,051 164,773,935 5,696,709 Total Assets 175,762,113 14,216,497 5,717,697 195,696,307 42,652,996 DEFERRED OUTFLOWS OF RESOURCES Related to pension (Note 7)2,567,470 2,567,470 Related to OPEB (Note 9)699,000 699,000 Total Deferred Outflows of Resources 3,266,470 3,266,470 LIABILITIES Current liabilities: Accounts payable 2,785,108 15,980 120,877 2,921,965 1,595,400 Other payable 1,730,645 66 3 1,730,714 165,696 Accrued interest payable 397,273 397,273 Deposits payable 7,500 7,500 Unearned revenue 33,027 205,303 238,330 Accrued insurance loss (Note 11)643,224 Compensated absences obligation (Note 1L)471,053 5,776 15,438 492,267 800,379 Current portion of long-term debt (Note 5)5,038,675 5,038,675 204,252 Total current liabilities 10,463,281 21,822 341,621 10,826,724 3,408,951 Noncurrent liabilities: Accrued insurance losses (Note 11)14,322,000 Compensated absences obligation (Note 1L)240,280 15,762 897 256,939 1,118,617 Noncurrent portion of long-term debt (Note 5)47,766,932 47,766,932 285,529 Net OPEB liability (Note 9)6,435,600 6,435,600 Net pension liability (Note 7)19,308,180 19,308,180 Total noncurrent liabilities 73,750,992 15,762 897 73,767,651 15,726,146 Total Liabilities 84,214,273 37,584 342,518 84,594,375 19,135,097 DEFERRED INFLOWS OF RESOURCES Related to pension (Note 7)281,232 281,232 Related to OPEB (Note 9)78,000 78,000 Total Deferred Inflows of resources 359,232 359,232 NET POSITION: Net investment in capital assets 97,957,281 10,438,996 3,572,051 111,968,328 5,125,977 Unrestricted (deficit)(3,502,203) 3,739,917 1,803,128 2,040,842 18,391,922 Total Net Position $94,455,078 $14,178,913 $5,375,179 $114,009,170 $23,517,899 See accompanying notes to financial statements 42 CITY OF SOUTH SAN FRANCISCO PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2020 Governmental Business-type Activities - Enterprise Funds Activities Sewer Parking Storm Internal Enterprise District Water Total Service Funds OPERATING REVENUES Charges for services $24,150,139 $410,307 $24,560,446 $26,479,155 Other cities' participation 6,887,043 6,887,043 Permit fees 141,672 141,672 Parking fees $956,222 956,222 Total Operating Revenues 31,178,854 956,222 410,307 32,545,383 26,479,155 OPERATING EXPENSES Personnel expenses 10,989,086 306,107 751,328 12,046,521 18,314,774 Professional services 1,731,481 365,961 76,612 2,174,054 792,792 OPEB Expenses 535,039 68 535,107 Program supplies 1,626,257 14,694 175,058 1,816,009 1,303,705 Insurance 210,870 3,698 214,568 1,671,479 Self-insurance and claims 2,358,458 Repair and maintenance 1,297,592 23,503 1,321,095 489,972 Rents and leases 1,689,059 1,689,059 Utilities 1,559,918 67,361 12,048 1,639,327 189,819 Administration 1,378,429 110,792 47,584 1,536,805 Depreciation 4,485,233 253,825 39,456 4,778,514 857,836 Other 46,434 84,766 131,200 446,605 Total Operating Expenses 25,549,398 1,118,808 1,214,053 27,882,259 26,425,440 Operating Income (Loss)5,629,456 (162,586) (803,746) 4,663,124 53,715 NONOPERATING REVENUES (EXPENSES) Interest income 623,256 132,556 69,104 824,916 1,218,689 Gain on dispositions of capital assets 8,722 Interest expense (710,007)(710,007)(20,329) Subventions and grants 552,998 552,998 Other 5,000 47,000 2,400 54,400 73,419 Total Nonoperating Revenues (Expenses)(81,751)179,556 624,502 722,307 1,280,501 Income (loss) before transfers 5,547,705 16,970 (179,244) 5,385,431 1,334,216 TRANSFERS Transfers in (Note 4C)6,985,456 1,097,756 8,083,212 500,000 Transfers (out) (Note 4C)(22,566)(22,566)(31,589) Change in Net Position 12,533,161 (5,596)918,512 13,446,077 1,802,627 Net Position (Deficits) - July 1 81,921,917 14,184,509 4,456,667 100,563,093 21,715,272 Net Position (Deficits) - June 30 $94,455,078 $14,178,913 $5,375,179 114,009,170 $23,517,899 Change in Net Position 13,446,077 Some amounts reported for business-type activities in the statement of activities are different because the net revenue (expense) of certain internal service funds is reported with business-type activities 54,847 Change in Net Position of Business-Type Activities $13,500,924 See accompanying notes to financial statements 43 CITY OF SOUTH SAN FRANCISCO PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2020 Governmental Business-type Activities - Enterprise Funds Activities Sewer Parking Storm Internal Enterprise District Water Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $29,726,826 $1,006,222 $404,749 $31,137,797 Cash payments to suppliers for goods and services (9,807,847) (543,030) (457,655) (10,808,532) ($5,024,543) Cash payments to employees for services (8,919,957) (305,248) (754,625) (9,979,830) (17,279,625) Cash received from interfund service provided 26,409,725 Cash payments for judgments and claims (1,844,487) Net Cash Provided by (Used in) Operating Activities 10,999,022 157,944 (807,531) 10,349,435 2,261,070 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Subventions and grants 552,998 552,998 Transfers in 6,985,456 1,097,756 8,083,212 500,000 Transfers in (22,566) (22,566) (31,589) Net Cash Provided by Noncapital Financing Activities 6,985,456 (22,566) 1,650,754 8,613,644 468,411 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from issuance of debt 19,593,797 19,593,797 Principal paid on long-term debt (4,906,394) (4,906,394) (263,838) Interest paid on long-term debt (798,534) (798,534) (20,329) Acquisition of capital assets, net (30,163,306) (807,659) (30,970,965) (1,232,218) Proceeds from the sale of capital assets 8,722 Net Cash Used in Capital and Related Financing Activities (16,274,437) (807,659) (17,082,096) (1,507,663) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 340,355 71,018 34,077 445,450 657,484 Changes in fair value of investments 294,209 64,035 33,367 391,611 588,182 Net Cash Provided by Investing Activities 634,564 135,053 67,444 837,061 1,245,666 Net Increase (Decrease) in cash and cash equivalents 2,344,605 270,431 103,008 2,718,044 2,467,484 Cash and cash equivalents, beginning 20,642,441 3,489,666 2,019,944 26,152,051 32,946,940 Cash and cash equivalents, ending $22,987,046 $3,760,097 $2,122,952 $28,870,095 $35,414,424 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $5,629,456 ($162,586) ($803,746) $4,663,124 $53,715 Adjustments to reconcile operating income (loss) to cash flows from operating activities: Depreciation 4,485,233 253,825 39,456 4,778,514 857,836 Other non-operating revenue (expenses) 5,000 47,000 2,400 54,400 73,419 Net change in assets and liabilities: Accounts and lease receivables (1,490,055) 3,000 (13,625) (1,500,680) 17,840 Deposit (160,689) Prepaid items (243,797) Accounts payable (1,235,073) 15,780 93,835 (1,125,458) 834,149 Other payable 1,502,305 66 (128,221) 1,374,150 6,559 Unearned revenue 33,027 5,667 38,694 Accrued insurance losses 513,971 (Decrease) increase due to OPEB 126,600 126,600 Compensated absence obligations 206,696 859 (3,297) 204,258 308,067 (Decrease) increase due to retirement system 1,735,833 1,735,833 Net Cash Provided by (Used in) Operating Activities $10,999,022 $157,944 ($807,531) $10,349,435 $2,261,070 See accompanying notes to basic financial statements 44 FIDUCIARY FUNDS These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the government-wide financial statements, but are presented in separate Fiduciary Fund financial statements. SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND The Fund is used to account for the activities of the Successor Agency to the former Redevelopment Agency of the City of South San Francisco. SSF EMPLOYEE DEFERRED COMP TRUST OVERSIGHT AGENCY FUND This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on behalf of City employees. 45 Agency Fund Successor SSF Employee Agency Deferred Comp Private Purpose Trust Trust Fund Oversight ASSETS Cash and investments (Note 2) $2,660,472 $105,236 Accounts receivable 8,883 Interest receivable 46,442 514 Advances to the City (Note 5) 3,635,152 Loans receivable (Note 13B) 128,426 Restricted cash and investments (Note 2) 41,532,619 Capital assets (Note 13C): Nondepreciable 111,219 Depreciable, net accumulated depreciation 251,311 Total Assets 48,374,524 $105,750 LIABILITIES Accounts payable $2,141,346 Other accrued liabilities $105,750 Noncurrent portion of pollution remediation (Note 13D) 537,000 Total Liabilities 2,678,346 $105,750 NET POSITION Held in trust for other purposes $45,696,178 See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2020 46 Successor Agency Private Purpose Trust Fund ADDITIONS Intergovernmental $401,789 Interest and rentals 895,695 Total Additions 1,297,484 DEDUCTIONS Economic and Community Development 8,883,608 Depreciation 6,593 Total Deductions 8,890,201 Change in net position (7,592,717) NET POSITION HELD IN TRUST FOR OTHER PURPOSES Beginning of the year 53,288,895 End of the year $45,696,178 See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2020 47 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A.Description of the Financial Reporting Entity As required by generally accepted accounting principles, the financial statements present the City of South San Francisco (the City) as the Primary Government, with its component units for which the City is considered financially accountable. The component units discussed below are included in the City's reporting entity because of the significance of their operational and financial relationships with the City. B.Description of Blended Component Units The accompanying basic financial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City’s blended component units, entities for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City’s operations and so data from this unit is combined with the City. The City’s following blended component units are described below. The City of South San Francisco Capital Improvements Financing Authority is a joint exercise of powers authority created in 1991 between the City and the City of South San Francisco former Redevelopment Agency. The Capital Improvements Financing Authority is authorized to borrow money through the purchase or issuance of bonds, notes, or other obligations for the purpose of making loans to the City and other public entities to finance capital improvements. The City Council members serve as the Board of Directors. The financial activities of the Capital Improvements Financing Authority are included in the Capital Improvement Police Station Capital Projects Fund. Separate financial statements are not issued for the Capital Improvements Financing Authority. The Parking Authority of the City of South San Francisco was formed in October 2019 pursuant to the California Parking Law of 1949, Streets and Highways Code Section 32500, et seq. The City Council members serve as the Board of Directors. The financial activities of the Parking Authority are included in the Capital Improvements Police Station Capital Projects Fund. Separate financial statements are not issued for the Parking Authority. The City of South San Francisco Public Facilities Financing Authority is a joint exercise of powers authority created in December 2019 between the City and the Parking Authority. The Public Facilities Financing Authority is authorized to borrow money through the purchase or issuance of bonds, notes, or other obligations for the purpose of making loans to the City or the Parking Authority and other public or private entities to finance capital improvements. The City Council members serve as the Board of Directors. The financial activities of the Public Facilities Financing Authority are included in the Capital Improvements Police Station Capital Projects Fund. Separate financial statements are not issued for the Public Facilities Financing Authority. 49 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Description of Discrete Component Unit The City of South San Francisco Conference Center Authority was established in 1992 to manage and operate the South San Francisco Conference Center. The Authority is governed by a Board of nine commissioners consisting of two Council members and seven representatives from various businesses appointed by City Council. The Authority does not meet the criteria of a blended component unit, since the City Council is not the Authority’s governing body and the Authority does not provide services entirely to the City. However, the City is financially accountable and is able to impose its will on the Authority. The Authority is therefore considered a discrete component unit with its financial data reported separately from the financial data of the City. The City of South San Francisco Conference Center Authority financial statements may be obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080. D. Basis of Presentation Government-wide Statements - The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Interfund transfers and amounts owed between funds within the primary government have been eliminated from the statements. Amounts representing interfund services and uses remain in the statements. These statements distinguish between the governmental and business- type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. 50 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Major Funds Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: General Fund – Accounts for resources traditionally associated with government, such as administration, public safety, library, parks, maintenance, and recreation, outside of those accounted for in other funds. Low and Moderate Income Housing Assets Special Revenue Fund – This fund was established to account for the activities related to the assets assumed by the City as Housing Successor to the housing activities of the former Redevelopment Agency of the City. The main source of revenue for this fund is the repayment of loans restricted for housing activities. Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding comes from the General Fund, Special Revenue funds, grants and fees. East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new development’s share of new and rehabilitated sewer collection and treatment facilities to serve the East of Highway 101 area. East of 101 Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share of new and expanded roadway and intersection improvements to serve the East of Highway 101 area. Child Care Impact Fees Capital Projects Fund – These citywide fees provide new development’s share of new and expanded childcare facilities to serve the City. Developer Deposit Capital Projects Fund – Accounts for a deposit by a large corporation for various capital projects the developer agreed to fund. Capital Infrastructure Reserve Fund – Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks, and storm water facilities). Capital Improvement Police Station – Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting to new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment’s, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. 51 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reported all enterprise funds as major funds in the accompanying financial statements. The enterprise funds are: Sewer Enterprise Fund – Accounts for user charges and debt proceeds supporting the operation, maintenance, and capital expansion of the wastewater collection and treatment system. Parking District Fund – Accounts for meter and parking permit fees used to acquire and maintain parking facilities. Storm Water Fund – Accounts for user charges sustaining the Storm Water Management Program mandated by state and federal authorities. The City also reports the following fund types: Internal Service Funds – These funds account for City services, self insurance, health and retirement benefits, and equipment replacement; all of which are provided to other departments on a cost-reimbursement basis. Fiduciary Funds – An agency fund is used to account for assets held by the City as an agent for SSF Employee Deferred Comp Trust Oversight Fund. The Successor Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. The financial activities of the funds are excluded from the government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements. F. Basis of Accounting The government-wide, proprietary, private-purpose trust fund, and discretely presented component unit financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. The agency funds which only report assets and liabilities and do not have a measurement focus. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue. Other receipts and taxes are recognized as revenue when the cash is received. 52 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Non-exchange transactions, in which the City gives or receives value without directly, receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenue. Thus, both restricted and unrestricted net position may be made available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. The City considers restricted shared state revenues such as gasoline taxes and public safety sales taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits, charges for services, and program grants as program revenues. G. Budgets, Budgetary Accounting, and Encumbrances The City is not legally required to budget any of its funds, but does so to enhance City management's effectiveness in their financial planning efforts and to enhance control over the City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the purchase order issuance. The Capital Improvement Fund is adopted on a multi-year project basis with unexpended and unencumbered budgets reappropriated in the following year. The City operates under the general laws of the State of California (the State) and annually adopts a budget effective July 1 for the ensuing fiscal year for the General fund; Special Revenue funds; Capital Projects funds except for the Developer Deposit Capital Projects Fund, Non-obligated Capital Projects Fund, Oyster Point Improvement Impact Fees Capital Projects Fund, Oyster Point Development Impact Fees Capital Projects Fund, Park Land Acquisition Capital Projects Fund, Bicycle and Pedestrian Impact Fee Capital Projects Fund, Commercial Linkage Impact Fee Capital Projects Fund and 2020A Police Station Debt Service Fund; and Enterprise funds. The budget is adopted by the City Council and controlled at the department level for the General fund and at the fund level or lower for all other funds with adopted budgets. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The department heads may authorize transfers within one object category within the same department within a fund. The City Manager may authorize transfers between object categories and departments within a fund. All appropriations lapse at year-end, except for capital projects and encumbrances. Original adopted budgets and final amended budgets are presented in the basic financial statements. Supplementary budget appropriations were necessary during the year ended June 30, 2020. Encumbrance accounting, under which, purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Encumbrances are reappropriated in the following year. 53 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The budgetary comparison statements present comparisons of the legally adopted budget with actual charges to appropriations on a budgetary basis. In order to provide a meaningful comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that differs significantly from those used to present financial statements in conformity with generally accepted accounting principles. Certain indirect costs are included in program expenses reported for individual functions and activities. H. Expenditures in Excess of Appropriations – The City’s General Fund had the following departmental expenditures in excess of appropriations and other funds had expenditures in excess of appropriations for the year ended June 30, 2020: Expenditures in Excess of Budget (Non GAAP Legal Basis) General Fund: City Treasurer $8,588 City Manager 495,437 Public Works 732,230 Developer Contributions Special Revenue Fund 321,134 Federal Aviation Special Revenue Fund 28,257 Supplemental Law Enforcement Services Special Revenue Fund 60,337 City Programs Special Revenue Fund 223,901 Sufficient resources were available within each fund to finance these excesses. I. Cash Equivalents – For purposes of the statement of cash flows, the City considers all highly liquid investments (including all restricted assets) with maturity of three months or less when purchased to be cash equivalents. The City maintains a cash and investment pool that is available for use by all funds. As the proprietary funds' share of this pool is readily available when needed, such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are related to insurance and benefits and are not considered cash equivalents for purposes of the statement of cash flows. J. Inventory and Prepaid Items – consist of consumable supplies. Inventory is stated at cost (first- in, first-out method). The costs are recorded as expenditures at the time the individual inventory or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund balance reservation, which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. 54 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K.Capital Assets – Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets: Buildings 50 years Clean water facilities and transmission lines 40 years Improvements 30 years Machinery and equipment 5-20 years Furniture and fixtures 12 years Infrastructure 20-40 years Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other equipment that is not a vehicle. L.Vacation and Sick Pay – are accrued as earned. Upon termination, employees are paid for all unused vacation at their current hourly rates. After five to twenty years of employment, one half of accumulated sick leave becomes vested, up to a maximum amount as specified under labor contract provisions. The vested portion is available for current use or, if unused, is payable at termination or retirement. The long-term portion of the liability for compensated absences for governmental fund type operations is recorded as compensated absences in the government-wide financial statements. The portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds. The changes of the compensated absences were as follows: Governmental Business-Type Activities Activities Total Beginning Balance $7,033,053 $544,948 $7,578,001 Additions 5,499,889 676,711 6,176,600 Payments (4,194,722) (472,453) (4,667,175) Ending Balance $8,338,220 $749,206 $9,087,426 Current Portion $4,445,590 $492,267 $4,937,857 55 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the Health and Retirement Benefits Internal Service Fund. M. Property Tax Levy, Collection and Maximum Rates – State of California Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1% of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred, or substantially improved. The State Legislature has determined the method of distribution of receipts from a 1% tax levy among the counties, cities, school districts and other districts. The County of San Mateo assesses properties, bills for and collects property taxes on the schedule that follows: Secured Unsecured Valuation/lien dates January 1 January 1 Levy dates July 1 July 1 Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31) 50% on February 1 (April 10) The term "unsecured" refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed. Property taxes levied are recorded as revenue and receivables when they are collected during the fiscal year of levy or within 60 days of year-end. N. Properties held for redevelopment – is stated at the lower of historical cost or net realizable value (equal to agreed upon sales price if a disposition and development agreement has been reached with a developer). O. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end. P. Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 56 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. R. Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the dates of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting periods. Actual results could differ from those estimates. S. New Funds In fiscal year 2019-2020, the City established the following funds: The Capital Improvements Police Station Capital Projects Fund is used to account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting to new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment’s, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. The San Mateo County (SMC) Measure W ½ Sales Tax Special Revenue Fund is used to account for the City’s portion of the special half cent sales tax receipts restricted for congestion relief and transit improvements. The Commercial Linkage Impact Fee Capital Projects Fund is used to account for affordable housing funding created by new commercial development. 2020A Police Station Debt Service Fund is used to account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. 57 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 - CASH AND INVESTMENTS The City’s goal is to invest at the maximum yield, consistent with safety and liquidity, while individual funds can process payments for expenditures at any time. A. Policies The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form. California Law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a fair value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution. The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. B.Classification Cash and investments as of June 30, 2020 are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements. Financial Statement Presentation: Statement of Net Position: City of South San Francisco: Cash and investments available for operations $246,891,412 Restricted cash and investments 51,084,256 Total Primary Government cash and investments 297,975,668 Statement of Fiduciary Assets: Cash and investments available for operations 2,765,708 Restricted cash and investments 41,532,619 Total Fiduciary cash and investments 44,298,327 Conference Center: Cash and investments available for operations 4,167,754 Total South San Francisco Conference Center cash and investments 4,167,754 Total cash and investments $346,441,749 58 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 - CASH AND INVESTMENTS (Continued) The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and Investments Available for Operations is in substance a demand deposit available to finance operations, and is considered a cash equivalent in preparing the statement of cash flows. C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s investment policy and the California Government Code allow the City to invest in the following provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where it is more restrictive: Minimum Maximum Maximum Maximum Credit Percentage Investment Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer U.S. Treasury Securities 5 years N/A No Limit No Limit Federal Agency or U.S. Government Sponsored Enterprise Obligations 5 years N/A No Limit 25% Supranational Obligations 5 years AA 30% 10% Corporate Medium-Term Notes 5 years A 30%5% Asset-Backed Securities 5 years AA 20%5% Commercial Paper 270 days A1,P1 25%5% Negotiable Certificates of Deposit 5 years A-1 or A 30%5% Repurchase Agreements 90 days AA No Limit No Limit Local Agency Investment Fund (LAIF) Upon Demand N/A $75 million No Limit Money Market Mutual Funds N/A AAAm 20% 10% Rating System, or its equivalent. (A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment 59 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 - CASH AND INVESTMENTS (Continued) D. Investments Authorized by Debt Agreements The City and the Successor Agency to the former Redevelopment Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the City or Successor Agency fail to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance bond indentures or State statute. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements: Minimum Maximum Maximum Credit Percentage Authorized Investment Type Maturity Quality of Portfolio U.S. Treasury Obligations N/A N/A No Limit U.S. Agency Securities N/A N/A No Limit Commercial Paper 270 days Highest Rating Category No Limit State and Local Investment Pool N/A Highest Rating Category No Limit Guaranteed Investment Contracts (fully collateralized) (A) N/A AAA No Limit Municipal Obligations N/A Highest Rating Category No Limit State Obligations N/A Two Highest Rating No Limit (A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury Obligations or U.S. Agency Obligations. E. Investments Authorized by the Authority The City of South San Francisco Conference Center Authority follows the California Government Code which authorizes an agency to invest in their own bonds, certain time deposits, obligations of the U.S. Treasury, agencies and instrumentalities, commercial paper, bankers’ acceptances with maturities not to exceed 270 days, and medium-term notes issued by corporations operating within the U.S., commercial paper rated P-1 or higher by Moody’s or A-1 by Standard & Poor’s commercial paper record, repurchase agreements of obligations of the U.S. Government or its agencies for a term of one year or less and the Local Agency Investment Fund. 60 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 - CASH AND INVESTMENTS (Continued) F. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its interest rate risk is by holding most investments to maturity, thus reversing unrealized market gains and losses. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date: Remaining maturity Less than One to Five 1 year Years Total City and Fiduciary: U.S. Treasury Notes $7,790,695 $41,959,411 $49,750,106 Federal Agency Securities 10,102,760 44,197,577 54,300,337 Local Agency Investment Fund 64,792,879 64,792,879 Money Market Funds 41,873,592 41,873,592 Corporate Medium Term Notes 15,131,560 26,968,244 42,099,804 Asset-Backed Securities 3,105,143 23,005,085 26,110,228 Supranational Obligations 1,868,485 3,611,375 5,479,860 South San Francisco Conference Center: Local Agency Investment Fund 3,840,774 3,840,774 Total Investments $148,505,888 $139,741,692 288,247,580 Cash in Banks and on Hand - City of South San Francisco 57,867,189 Cash in Banks and on Hand - South San Francisco Conference Center 326,980 Total Cash and Investments $346,441,749 The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2020, these investments have an average maturity of 191 days. Money market funds are available for withdrawal on demand and as of June 30, 2020 have an average maturity of 41 days. 61 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 - CASH AND INVESTMENTS (Continued) G. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2020, for each of the Primary Government’s investment types as provided by Moody’s investment rating system, except as noted: Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 Total City and Fiduciary: Federal Agency Securities 46,822,767$ 46,822,767$ Money Market Funds $41,873,592 41,873,592 Corporate Medium Term Notes 724,788 $7,608,739 $33,766,277 42,099,804 Asset-Backed Securities 20,143,416 20,143,416 Supranational Obligations 5,479,860 5,479,860 Totals 73,170,831$ 41,873,592$ 7,608,739$ 33,766,277$ 156,419,439 City and Fiduciary: Not rated: Federal Agency Securities 7,477,570 Asset-Backed Securities 5,966,812 Local Agency Investment Fund 64,792,879 Exempt from credit rating disclosure: U.S. Treasury Notes 49,750,106 Not rated: Local Agency Investment Fund 3,840,774 Total Investments 288,247,580$ South San Francisco Conference Center: H. Concentration of Credit Risk The City’s investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer, other than U. S. Treasury securities, mutual funds, and external investment pools that represent 5% or more of total Entity-wide investments are as follows at June 30, 2020: Issuer Investment Type Amount Federal National Mortgage Association Federal Agency Securities 21,775,413$ Federal Home Loan Bank Federal Agency Securities 21,233,841 Federal Home Loan Mortgage Corporation Federal Agency Securities 22,227,127 62 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 - CASH AND INVESTMENTS (Continued) I. Fair Value Hierarchy The City categorized its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2020: Level 2 Total Investments by Fair Value Level: City and Fiduciary: U.S. Treasury Notes $49,750,106 $49,750,106 Federal Agency Securities 54,300,337 54,300,337 Corporate Medium Term Notes 42,099,804 42,099,804 Asset Backed Securities 26,110,228 26,110,228 Supranational Obligations 5,479,860 5,479,860 Totals $177,740,335 177,740,335 Investments Measured at Amortized Cost: City and Fiduciary: Money Market Mutual Funds 41,873,592 Investments Exempt from Fair Value Hierarchy: City and Fiduciary: Local Agency Investment Fund 64,792,879 South San Francisco Conference Center: Local Agency Investment Fund 3,840,774 Total Investments $288,247,580 All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings and matrix pricing. These prices are obtained from various pricing sources by the City’s investment manager. Money market funds were reported at amortized cost. 63 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 3 - CAPITAL ASSETS A. Capital Asset Changes – Changes in capital assets during the fiscal year consist of: Balance 6/30/2019 Additions and Adjustments Retirements and Adjustments Transfers Balance 6/30/2020 Governmental activities Capital assets not being depreciated: Land $67,922,399 ($1,848,307) $654,909 $66,729,001 Construction in Progress 35,332,149 $39,157,623 (104,552) (3,149,412) 71,235,808 Total capital assets not being depreciated 103,254,548 39,157,623 (1,952,859) (2,494,503) 137,964,809 Capital assets being depreciated: Buildings and Improvements 96,174,194 (136,204) 233,662 96,271,652 Infrastructure - Streets 199,703,412 435,530 200,138,942 Infrastructure - Storm Drains 8,927,492 8,927,492 Infrastructure - Traffic Control Devices 10,766,059 1,825,311 12,591,370 Equipment and Vehicle 7,368,142 39,587 7,407,729 Furniture and Fixtures 2,614,215 2,614,215 Total capital assets being depreciated 325,553,514 39,587 (136,204) 2,494,503 327,951,400 Less accumulated depreciation for: Buildings and Improvements (39,836,602) (2,518,171) 34,051 (42,320,722) Infrastructure - Streets (106,389,398) (5,075,887) (111,465,285) Infrastructure - Storm Drains (3,571,061) (204,500) (3,775,561) Infrastructure - Traffic Control Devices (3,733,097) (483,693) (4,216,790) Equipment and Vehicle (6,385,793) (168,827) (6,554,620) Furniture and Fixtures (1,700,686) (95,786) (1,796,472) Total accumulated depreciation (161,616,637) (8,546,864) 34,051 (170,129,450) Net Governmental Fund Capital Assets Being Depreciated 163,936,877 (8,507,277) (102,153) 2,494,503 157,821,950 Internal Service Fund Capital Assets Capital assets not being depreciated: Construction in Progress 80,951 80,951 Total capital assets not being depreciated 80,951 80,951 Capital assets being depreciated: Equipment and Vehicle 15,476,897 1,562,036 (34,390) 17,004,543 Accumulated depreciation (10,565,339) (857,836) 34,390 (11,388,785) Net Internal Service Fund Capital Assets Being Depreciated 4,911,558 704,200 5,615,758 Governmental activities capital assets, net $272,102,983 $31,354,546 ($2,055,012) $301,483,468 64 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 3 - CAPITAL ASSETS (Continued) Balance Balance June 30, 2019 Additions Retirements Transfers June 30, 2020 Business-type activities Capital assets, not being depreciated: Land $794,587 $794,587 Construction in Progress 25,088,578 $30,970,965 ($657,235)55,402,308 Total capital assets not being depreciated 25,883,165 30,970,965 (657,235)56,196,895 Capital assets being depreciated: Buildings and Improvements 67,075,858 67,075,858 Clean Water Facilities and Lines 79,862,094 79,862,094 Infrastructure - Storm Drains 5,559,130 657,235 6,216,365 Infrastructure - Streets 7,377,546 7,377,546 Equipment and Vehicle 18,505,506 ($34,778)18,470,728 Furniture and Fixtures 31,154 31,154 Total capital assets being depreciated 178,411,288 (34,778) 657,235 179,033,745 Less accumulated depreciation for: Buildings and Improvements (19,371,793) (1,610,124)(20,981,917) Clean Water Facilities and Lines (31,103,969) (1,987,964)(33,091,933) Infrastructure - Storm Drains (1,201,342) (181,408)(1,382,750) Infrastructure - Streets (2,050,261) (209,570)(2,259,831) Equipment and Vehicle (11,954,450) (789,448)34,778 (12,709,120) Furniture and Fixtures (31,154)(31,154) Total accumulated depreciation (65,712,969) (4,778,514)34,778 (70,456,705) Net capital assets being depreciated 112,698,319 (4,778,514)657,235 108,577,040 Business-type activities capital assets, net $138,581,484 $26,192,451 $164,773,935 Balance Balance June 30, 2019 Additions Retirements June 30, 2020 Component Unit: South San Francisco Conference Center Construction in Progress $17,500 $77,670 ($17,500) $77,670 Buildings and Improvements 10,824,976 84,312 10,909,288 Furniture and Fixtures 925,599 97,460 (72,245) 950,814 Machinery and Equipment 324,306 162,300 (6,908) 479,698 Total 12,092,381 421,742 (96,653) 12,417,470 Less accumulated depreciation (8,810,877) (574,477)79,153 (9,306,201) Component Unit Capital Assets, Net $3,281,504 ($152,735) ($17,500) $3,111,269 B.Capital Asset Contributions - Some capital assets may have been acquired using federal and State grant funds, or were contributed by developers or other governments. Contributed capital assets are valued at their estimated acquisition value on the date contributed. Generally accepted accounting principles require that these contributions be accounted for as revenues at the time the capital assets are contributed. 65 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 3 - CAPITAL ASSETS (Continued) C. Depreciation Allocation - Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows: Governmental Activities Governmental functions General government $745,201 Fire 356,751 Police 97,718 Public works 6,712,210 Parks and recreation 504,624 Library 76,027 Economic and community development 54,333 Total Governmental Functions 8,546,864 Internal Service Funds 857,836 Total Governmental Activities $9,404,700 Business-Type Activities Sewer Enterprise $4,485,233 Parking District 253,825 Storm Water 39,456 Total Business-Type Activities $4,778,514 NOTE 4 - INTER-FUND TRANSACTIONS A. Internal Balances Internal balances are presented in the entity-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities. B. Inter-Fund Receivables and Payables Amounts due to or due from other funds reflect inter-fund balances for services rendered or short- term loans expected to be repaid in the next fiscal year. Due From Other Fund Due to Other Fund Amount General Fund Capital Improvement Capital Projects Fund $4,400,000 66 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 4 - INTER-FUND TRANSACTIONS (Continued) C. Transfers Transfers between funds during the fiscal year ended June 30, 2020 were as follows: FROM FUND (OUT) TO FUND (IN)AMOUNT General Fund Capital Improvement Capital Projects Fund $12,493,602 Capital Infrastructure Reserve Capital Projects Fund 10,900,000 Non-Major Governmental Funds 410,609 Storm Water Enterprise Fund 337,991 Internal Service Funds 500,000 East of 101 Sewer Impact Fees Capital Project Fund Sewer Enterprise Fund 516,996 East of 101 Traffic Impact Fees Capital Project Fund Capital Improvement Capital Projects Fund 633,466 Child Care Impact Fees Capital Projects Fund General Fund 14,232 Capital Infrastructure Reserve Capital Projects Fund Capital Improvement Capital Projects Fund 1,686,331 Storm Water Enterprise Fund 12,289 Non-Major Governmental Funds General Fund 1,288,203 Capital Improvement Capital Projects Fund 4,950,168 Non-Major Governmental Funds 5,687,200 Sewer Enterprise Fund 6,468,460 Storm Water Enterprise Fund 747,476 Parking District Enterprise Fund Capital Improvement Capital Projects Fund 22,566 Internal Service Fund Capital Improvement Capital Projects Fund 31,589 Total $46,701,178 67 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 5 - LONG-TERM DEBT A. Current Year Transactions and Balances A summary of governmental and business-type activities transactions for the fiscal year ended June 30, 2020 follows: Authorized and Balance at Balance at Current Issued June 30, 2019 Additions Retirement June 30, 2020 Portion Governmental Activities Lease Revenue Bonds: 2020A Police Station Project, 4.00 to 5.00% (1)$43,905,000 $43,905,000 $43,905,000 $935,000 Plus: Unamortized bond premium 10,242,530 $379,353 9,863,177 Total Lease Revenue Bonds 43,905,000 54,147,530 379,353 53,768,177 935,000 Direct Borrowing: 2007 Loans Payable to the Successor Agency (2) $4,845,152 1,210,000 3,635,152 Capital Leases (3): 2010 Two Fire Trucks 197,152 130,146 67,006 67,006 2013 Fire Truck 556,467 133,692 422,775 137,246 Total Capital Leases 753,619 263,838 489,781 204,252 Total Direct Borrowing 5,598,771 1,473,838 4,124,933 204,252 Net Governmental Long-Term Debt $43,905,000 $5,598,771 $54,147,530 $1,853,191 $57,893,110 $1,139,252 Business-Type Activities Revenue Bonds: 2005 Water and Wastewater Revenue Bonds, 2.75 to 4.75%, $6,000,000 $2,970,000 $315,000 $2,655,000 $330,000 due 04/30/26 (4) Direct Borrowing: 1999 State Water Resources Loan, 2.6%, due 8/1/22 (5) 47,721,252 12,284,916 2,954,013 9,330,903 3,030,817 2004 State Water Resources Loan, 2.5%, due 1/1/27 (5) 21,258,529 8,902,174 1,179,497 7,722,677 1,208,985 2008 State Water Resources Loan, 2.4%, (6) 9,164,505 5,106,376 457,884 4,648,492 468,873 2018 State Water Resources Loan, 1.8% (7) 53,403,000 8,854,738 $19,593,797 28,448,535 Total Direct Borrowing 131,547,286 35,148,204 19,593,797 4,591,394 50,150,607 4,708,675 Net Business-Type Long-Term Debt $137,547,286 $38,118,204 $19,593,797 $4,906,394 $52,805,607 $5,038,675 (1) 2020A Lease Revenue Bonds – In February 2020, the City of South San Francisco Public Facilities Financing Authority entered into a $43.9 million lease agreement to finance costs of the acquisition, construction, and installation of certain capital improvements constituting the new City police station, located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. The Series 2020A Bonds are equally and ratably payable from base rental payments to be made by the City for the right to use certain real property consisting of a City-owned parking garage and a City-owned park. The lease agreement contains provisions that in an event of default, the lessor may exercise any and all remedies available to it under the lease agreement, including the right to enforce the terms of the lease. 68 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 5 - LONG-TERM DEBT (Continued) (2) As of June 30, 2020, the Oyster Point Improvements Impact Fund owed the Successor Agency (formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the amount of $3,635,152 for the Flyover and Hookramps Projects that were completed in prior years. The outstanding balance will be paid off from the future developer fees. With the dissolution of the Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to repay. This payable is recorded as a long-term obligation (see also Note 13). Prior to the dissolution of all Redevelopment Agencies in California by the State, the former Redevelopment Agency (Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital Projects Fund (the Oyster Point Fund). The impact fees are collected according to a fee methodology adopted under the terms of AB 1600. The fees are assessed against commercial development in a specific geographic area that is primarily east of Highway 101 to repay the former Agency for the funds it advanced to the Oyster Point Fund to pay for freeway interchange improvements at Highway 101 and Oyster Point Blvd, and are assessed per an adopted Engineering report's formula that measures each new development's impact on the area's trip traffic. While the former Agency advanced the funds, the impact fee was put in place specifically to charge future developers for their share of traffic trips generated prior to the construction of the improvements. When the Agency was dissolved, the Successor Agency, and therefore, all local taxing entities, are entitled to receive future Oyster Point Impact fees collected by the City from developers. Future developers, not the City of South San Francisco, are legally obligated to pay the future fees until the liability owed to the Successor Agency is paid off as long as the fee continues to be levied and is in place. The repayment has significantly slowed since 2007, as development has subsided and fees assessed have therefore dropped. Management believes it may take 10-30 years or more before the Successor Agency is fully paid back. (3) The City has entered into long-term capital leases with various financing agencies. Under these capital leases, all leased assets shall be distributed to the City at the end of the lease terms and shall thereafter remain the sole property of the City. Therefore, these capital leases have been recorded at the present value of the future minimum lease payments at the date of inception of the lease, and the corresponding assets have been included in the Statement of Net Position as appropriate. Capital lease payments are made from revenues of the Equipment Replacement Internal Service Fund and the General Fund. The lease agreements contain provisions that in an event of default, the lessor may (a) seize the properties, (b) sell or lease the properties or (c) exercise any and all remedies available to it under applicable law, including the right to enforce the terms of the lease, recover damages from the breach of the lease, and rescind the lease as to any portion of or all of the properties. (4) On October 25, 2005, the California Statewide Communities Development Authority issued 2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale and the City’s portion of the debt is $6,000,000. Proceeds were used to finance sewer system capital improvement. The principal payments on the debt commenced in October 2006 and principal is due each October 1. The final principal payment is due on October 1, 2026. Interest payments ranging from the rates of 2.75% to 4.75% are payable semi-annually each April 1 and October 1. The 1999 and 2004 State Water Resources Loans and the 2005 Water and Wastewater Revenue Bonds are secured by a pledge of net revenues of the City’s Sewer Enterprise Fund. Net Revenues available for debt service amounted to $18.5 million which represented coverage of 3.6 over the $5,124,491 in total debt service. 69 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 5 - LONG-TERM DEBT (Continued) (5) The two loans were authorized by the State Water Resources Control Board (SWRCB) to improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the projects progressed and debt service payments commenced one year after project completion. The loan agreements include provisions that in an event of default, all principal payments shall be immediately due and payable, interests on all amounts owed shall be paid at the highest legal rate, any additional payments shall be made and SWRCB shall enforce its rights under the agreements by any judicial proceeding, whether in law or equity. (6) 2008 State Water Resources Control Board Loan – In November 2007, the City approved the $11.8 million loan agreement with the SWRCB to finance the City’s Wet Weather Program project. Under the terms of the contract, the City has agreed to repay $11.8 million to the State in exchange for receiving $9.2 million in proceeds to be used to fund the Project. The difference between the repayment obligation and proceeds amounted to $2.6 million and represents in- substance interest on the outstanding balance. Debt service payments commenced on August 15, 2009. (7) 2018 State Water Resources Control Board Loan – In September 2018, the City entered into a $53.4 million loan agreement with the SWRCB to finance the South San Francisco/San Bruno’s Water Quality Control Plant Wet Weather and Digester Project. A portion of this amount, $4 million, is anticipated to be forgiven on the date of completion of construction. For the remaining $49.4 million, under the terms of the loan agreement the City has agreed to repay $59.2 million to the State. The difference between the repayment obligation and proceeds amounted to $9.8 million and represents in-substance interest on the outstanding balance. At June 30, 2019, the City had drawn down $8.9 million from SWRCB and $19.6 million was drawn in fiscal year 2020, with the remaining balance of $24.9 million expected to be drawn down in fiscal year 2021. There was no debt service payment required in fiscal year 2020, with the first debt service payment due in fiscal year ending 2024. Future debt service is expected to average $3 million per year through fiscal year 2043. In the event default has occurred, the City shall, upon demand, immediately accelerate the payment of all principal owed under this loan agreement, if any, which shall be immediately due and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional payments as defined in the loan agreement. The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to $23.1 million which represented coverage of 43.6 over the $529,373 in debt service. 70 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 5 - LONG-TERM DEBT (Continued) B. Debt Service Requirements Annual debt service requirements are shown below for all long-term debt with specified repayment terms: Governmental Activities Business-Type Activities For the Year 2020A Lease Revenue Bonds 2005 Water and Wastewater Revenue Bonds Ended June 30 Principal Interest Principal Interest 2021 $935,000 $1,832,200 $330,000 $134,019 2022 980,000 1,785,450 345,000 120,593 2023 1,030,000 1,736,450 360,000 106,331 2024 1,080,000 1,684,950 375,000 90,000 2025 1,135,000 1,630,950 395,000 71,625 2026-2030 6,535,000 7,286,100 850,000 43,000 2031-2035 7,990,000 5,827,800 2036-2040 9,725,000 4,096,400 2041-2045 11,835,000 1,989,400 2046-2050 2,660,000 106,400 43,905,000 $27,976,100 $2,655,000 $565,568 Plus: Unamortized bond premium 9,863,177 $53,768,177 Future debt service requirements, including interest and capital leases, but excluding the 2007 Loan payable to the Redevelopment Successor Agency and the 2018 State Water Resources Loan at June 30, 2020, were as follows: For the Year Governmental Activities Business-Type Activities Ended June 30 Principal Interest Principal Interest 2021 $204,252 $11,950 $4,708,675 $500,750 2022 140,892 6,614 4,828,954 385,159 2023 144,637 2,870 4,952,309 266,607 2024 1,805,393 145,017 2025 1,850,025 105,421 2026-2030 3,556,716 111,716 Totals 489,781 $21,434 21,702,072 $1,514,670 2007 Loans Payable 3,635,152 2018 State Water Resources Loan 28,448,535 $4,124,933 $50,150,607 Direct Borrowings 71 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 5 - LONG-TERM DEBT (Continued) Capital Leases are issued for the purpose of financing the construction or acquisition of projects defined in each leasing arrangement. Projects are leased to the City for lease payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to meet the debt service obligations of the leasing arrangement. At the termination of the leasing arrangement, title to the project will pass to the City. Leasing arrangements are similar to debt; they allow investors to participate in a share of guaranteed payments which are made by the City. Because they are similar to debt, the present value of the total of the payments to be made by the City is recorded as long-term debt. The City’s leasing arrangements are included in long term obligations discussed above. A summary of capital assets leased through the issuance of leasing arrangements follows: Original Leasing Arrangement Fund/Activity Cost Capital Leases Governmental Activity $5,842,799 C. Legal Debt Margin The City is subject to a debt limit that is 3.75% of the total assessed value of property, net of exempt real property. At June 30, 2020, that amount was $784,957,532. As of June 30, 2020, the City did not have any outstanding debt applicable to the limit. NOTE 6 - NET POSITION AND FUND BALANCES A. Net Position Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position are divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below: Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. Unrestricted describes the portion of Net Position which is not restricted to use. 72 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 6 - NET POSITION AND FUND BALANCE (Continued) B. Fund Balance The City’s fund balances are classified in accordance with generally accepted accounting principles which require the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint. Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category. Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources. Committed fund balances have constraints imposed by Council Resolution of the City Council which may be altered only by Council Resolution of the City Council. Nonspendable amounts subject to council commitments are included along with spendable resources. Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. The City Council had delegated authority to the Finance Director to assign fund balances which are not otherwise restricted or committed. This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. Minimum Fund Balance Policies - The City’s Reserve Policy is to have the General Fund Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the general fund operating expenditures budget as well as an economic contingency which is 7% of general fund revenues. Funds in excess of these requirements will continue to be earmarked for paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits (OPEB) or for Infrastructure and Facilities Replacement needs. 73 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 6 - NET POSITION AND FUND BALANCE (Continued) Detailed classifications of the City’s Fund Balances, as of June 30, 2020, are below: Low and Moderate East of 101 East of 101 General Income Housing Capital Sewer Traffic Fund Balance Classifications Fund Assets Improvement Impact Fees Impact Fees Nonspendables: Items not in spendable form: Inventory and prepaid items $574 Total Nonspendable Fund Balances 574 Restricted for: Sewer Impact Fees $5,407,840 Traffic impact fees projects $25,015,746 Low and moderate housing projects $6,010,064 Redevelopment and community development activities 18,372,633 Total Restricted Fund Balances 18,372,633 6,010,064 5,407,840 25,015,746 Committed for: Capital projects 2,756,632 Local services 14,966,706 Total Committed Fund Balances 17,723,338 Assigned to: Capital projects 5,720,788 Total Assigned Fund Balances 5,720,788 Unassigned: General fund 43,296,762 Capital Improvement Fund $235,649 Total Unassigned Fund Balances 43,296,762 235,649 Total Fund Balances $85,114,095 $6,010,064 $235,649 $5,407,840 $25,015,746 Capital Project Funds Capital Capital Other Child Care Developer Infrastructure Improvements Governmental Fund Balance Classifications (continued) Impact Fees Deposit Reserve Fund Police Station Funds Restricted for: Child Care impact fees projects $6,185,208 Developer deposit fees projects $16,788 Police station projects $46,604,509 Gas Tax projects $439,759 Developer contributions projects 7,938,850 Community Development Block Grant projects 352,586 Maintenance districts projects 4,273,972 Transportation sales tax projects 2,799,809 City programs projects 6,546,780 Other Special Revenues projects 10,676,980 Capital projects activities 17,874,258 Total Restricted Fund Balances 6,185,208 16,788 46,604,509 50,902,994 Assigned to: Capital infrastructure projects $29,363,924 Total Assigned Fund Balances 29,363,924 Total Fund Balances $6,185,208 $16,788 $29,363,924 $46,604,509 $50,902,994 Capital Project Funds 74 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 6 - NET POSITION AND FUND BALANCE (Continued) C. Encumbrances The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in governmental funds as of June 30, 2020, were as listed below: Governmental funds:Amount General Fund $5,720,788 Low and Moderate Income Housing Assets Special Revenue Fund 2,502,113 Capital Improvement Capital Projects Fund 13,872,958 Child Care Impact Fees Capital Projects Fund 1,500 Capital Infrastructure Reserve Capital Projects Fund 933,000 Capital Improvements Police Station Capital Projects Fund 45,462,322 Other Governmental Funds 2,622,779 Total $71,115,460 NOTE 7 - PENSION PLANS For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. A. General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. 75 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 7 - PENSION PLAN (Continued) Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2020, are summarized as follows: Miscellaneous Classic Plan Tier 2 Plan PEPRA Plan Prior to After On or after Hire date April 25, 2010 April 25, 2010 January 1,2013 Benefit formula 2.7% @ 55 2% @ 60 2% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 67 52 - 67 Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8%7%6.5% Required employer contribution rates 9.91%9.91%9.91% Required Unfunded Actuarial Liability Contribution $5,260,688 Safety Classic Plan Tier 2 Plan PEPRA Plan Hire date Prior to April 25, 2010 After April 25, 2010 On or after January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57 Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9% 9% 11.5% Required employer contribution rates 20.43% 20.43% 20.43% Required Unfunded Actuarial Liability Contribution $7,014,353 Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contributions for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2020 were $5,260,688 and $7,014,353, respectively, which were made under the lump sum payment option. 76 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 7 - PENSION PLAN (Continued) Employees Covered – As of the June 30, 2018 actuarial valuation date and the June 30, 2019 measurement date, the following employees were covered by the benefit terms for the Plans: Miscellaneous Safety Inactive employees or beneficiaries currently receiving benefits 458 288 Inactive employees entitled to but not yet receiving benefits 347 109 Active employees 284 151 Total 1,089 548 Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. B. Net Pension Liability The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of June 30, 2019, using an annual actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Assumptions – For the measurement period ended June 30, 2019, the total pension liabilities were determined by rolling forward the June 30, 2018 total pension liability. The June 30, 2019 total pension liabilities were based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Payroll Growth Salary Increase Investment Rate of Return Mortality Post Retirement Benefit Increase (1) Net of pension plan investment and administrative expenses, including inflation (2) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. 2.50% Varies by Entry Age and Service 7.15% (1) The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter Derived using CalPERS Membership Data for all Funds (2) 3.00% Miscellaneous and Safety June 30, 2018 June 30, 2019 Entry-Age Normal Cost Method 7.15% 77 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 7 - PENSION PLAN (Continued) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2018 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS website. Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefits payments of current plan members for all plans in the PERF. Therefore, the long- term expected rate of return on plan investment was applied to all periods of projected benefit payment to determine the total pension liability for each Plan. The long- term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long- term expected rate of return, CalPERS took into account both short- term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the fund’s asset classes, expected compound (geometric) returns were calculated over the short- term (first 10 years) and the long -term (11+ years) using a building- block approach. Using the expected nominal returns for both short- term and long- term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short- term and long- term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted for assumed administrative expenses. The table below reflects the long-term expected real rate of return by asset class. Asset Class(a) New Strategic Allocation Real Return Years 1 - 10(b) Real Return Years 11+(c) Global Equity 50.0% 4.80% 5.98% Fixed Income 28.0% 1.00% 2.62% Inflation Assets 0.0% 0.77% 1.81% Private Equity 8.0% 6.30% 7.23% Real Assets 13.0% 3.75% 4.93% Liquidity 1.0% 0.00% -0.92% Total 100% (a) In the System's CAFR, Fixed income is included in Global Debt Securities; Liquidity is included in short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period. 78 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 7 - PENSION PLAN (Continued) C. Changes in the Net Pension Liability The changes in the Net Pension Liability for each Plan are as follows: Miscellaneous Plan: Increase (Decrease) Total Pension Liability Plan Fiduciary Net Position Net Pension Liability/(Asset) Balance at June 30, 2018 (Measurement Date)$233,975,819 $157,470,642 $76,505,177 Changes in the year: Service cost 4,118,735 4,118,735 Interest on the total pension liability 16,624,514 16,624,514 Changes of benefit terms Chases of assumptions Differences between actual and expected experience 2,853,948 2,853,948 Plan to plan resource movement (20) 20 Contribution - employer 6,851,659 (6,851,659) Contribution - employees 1,816,507 (1,816,507) Net investment income 10,240,873 (10,240,873) Benefit payments, including refunds of employee contributions (12,756,888) (12,756,888) Administrative expenses (112,374) 112,374 Other Miscellaneous Income/(Expense) 365 (365) Net changes 10,840,309 6,040,122 4,800,187 Balance at June 30, 2019 (Measurement Date)$244,816,128 $163,510,764 $81,305,364 Safety Plan: Increase (Decrease) Total Pension Liability Plan Fiduciary Net Position Net Pension Liability/(Asset) Balance at June 30, 2018 (Measurement Date)$327,073,740 $220,879,754 $106,193,986 Changes in the year: Service cost 6,379,124 6,379,124 Interest on the total pension liability 23,249,091 23,249,091 Changes of benefit terms Chases of assumptions Differences between actual and expected experience 2,853,684 2,853,684 Plan to plan resource movement 20 (20) Contribution - employer 10,164,921 (10,164,921) Contribution - employees 2,486,989 (2,486,989) Net investment income 14,404,633 (14,404,633) Benefit payments, including refunds of employee contributions (15,909,734) (15,909,734) Administrative expenses (157,625) 157,625 Other Miscellaneous Income/(Expense)512 (512) Net changes 16,572,165 10,989,716 5,582,449 Balance at June 30, 2019 (Measurement Date)$343,645,905 $231,869,470 $111,776,435 Grand Total - Both Plans $588,462,033 $395,380,234 $193,081,799 79 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 7 - PENSION PLAN (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Miscellaneous Safety 1% Decrease 6.15% 6.15% Net Pension Liability $112,753,994 $158,826,992 Current Discount Rate 7.15% 7.15% Net Pension Liab ility $81,305,364 $111,776,435 1% Increase 8.15% 8.15% Net Pension Liability $55,267,692 $73,169,140 Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2020, the City recognized pension expense of $14,398,113 and $22,193,591 for the Miscellaneous and Safety Plans, respectively, for total pension expense of $36,591,704. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Plan: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to measurement date $7,831,598 Changes of assumptions ($388,880) Differences between actual and expected experience 1,888,207 Net differences between projected and actual earnings on plan investments (849,257) Total $9,719,805 ($1,238,137) Safety Plan: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to measurement date $11,401,783 Changes of assumptions 1,637,329 ($532,651) Differences between actual and expected experience 2,915,790 Net differences between projected and actual earnings on plan investments (1,041,531) Total $15,954,902 ($1,574,182) Grand Total $25,674,707 ($2,812,319) 80 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 7 - PENSION PLAN (Continued) $19,233,381 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Miscellaneous Plan: Year Ended Annual June 30 Amortization 2021 $1,286,763 2022 (582,461) 2023 (222,066) 2024 167,834 Safety Plan: Year Ended Annual June 30 Amortization 2021 $3,821,819 2022 (990,329) 2023 (102,128) 2024 249,575 Subsequent Event - CalPERS Pension Contribution Rates - The CalPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes the 5-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy removes the 5-year ramp-down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019. As a result of these changes, the City’s contribution rates for the fiscal year ended June 30, 2021 are expected to increase over the fiscal year 2020 contribution rates. NOTE 8 - DEFERRED COMPENSATION PLAN City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plan. The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements. NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans The City provides certain health care benefits for all employees who retire after attaining age 50 with at least five years of service or disability at any age. The City provides certain health care benefits for those employees hired prior to April 25, 2010. In order to reduce the City’s OPEB obligations over time, the City changed to a defined contribution post-retirement health plan for employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a medical after retirement health plan (MARA), and contributes 1.5% of salary for those employees. 81 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) B. Defined Benefit Plan Description The City’s Post Employment Benefit Plan for employees hired prior to April 25, 2010 is an agent multiple-employer defined benefit OPEB plan. The City joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple- employer plan administered by CalPERS, consisting of an aggregation of single-employer plans. The CERBT issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703. Benefits provided – The following is a summary of Plan benefits by employee group as of June 30, 2020: Eligibility • Hired < 4/25/2010 • Retire directly from City and elect coverage: • Age 50 and 5 years City service or • Disability retirement with 5 years City service Benefit • City pays single premium up to largest HMO single premium Cap for 2019/20: - $1,430.80/month pre-65 (Blue Shield) - $785.04/month post-65 Medicare eligible (Blue Shield) - $1,971.53/ month post-65 not Medicare eligible (Kaiser) • Medicare ineligible retirees allowed to stay in their pre-Medicare premium plans after age 65 Surviving Spouse Benefit • Participation with premium payment • AFSCME, Local 1569, Mid-Management, IAFF  surviving spouses covered 2 months following death of retiree Other OPEB • City also reimburses Medicare Part B • No City-paid contribution for dental, vision, or life For the year ended June 30, 2020, the City’s contributions to the Plan were $4,854,000. Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2019: Active employees 213 Inactive employees or beneficiaries currently receiving benefit payments 352 Total 565 82 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) C. OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to OPEB For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the California Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. D. Net OPEB Liability Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions: Valuation Date • June 30, 2019 Measurement Date • June 30, 2019 Contribution Policy • City contributes $802,000 per year into trust Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll Amortization Method • Level dollar Amortization Period • Average of 23 years remaining for 2019/20 • 6.75% at June 30, 2019 • 6.75% at June 30, 2018 • Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust. Inflation • 2.75% per annum Salary Increases • Aggregate - 3% annually • Merit - CalPERS 1997-2015 Experience Study Healthcare/Medical Trend • Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years • Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study Mortality Improvement • Mortality projected fully generational with Scale MP-2019 Healthcare participation for future retirees • 100% if covered, 95% if waived Discount Rate and Long-Term Expected Rate of Return on Assets Actuarial Assumptions 83 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) The long-term expected rate of return on OPEB plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long-Term Target Expected Real Asset Class Allocation Rate of Return Global equity 59.0% 4.82% Fixed income 25.0% 1.47% TIPS 5.0% 1.29% Commodities 3.0% 0.84% REITs 8.0% 3.76% Total 100.0% Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. E. Changes in Net OPEB Liability The changes in the net OPEB liability follows: Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) (a)(b)(a) - (b) Balance at June 30, 2018 Measurement Date $82,625,000 $22,041,000 $60,584,000 Changes Recognized for the Measurement Period: Service Cost 1,558,000 1,558,000 Interest on the total OPEB liability 5,568,000 5,568,000 Changes in benefit terms Differences between expected and actual experience 2,895,000 2,895,000 Changes of assumptions (672,000)(672,000) Contributions from the employer 4,180,000 (4,180,000) Net investment income 1,402,000 (1,402,000) Benefit payments (3,378,000) (3,378,000) Administrative expenses (5,000) 5,000 Net changes 5,971,000 2,199,000 3,772,000 Balance at June 20, 2019 Measurement Date $88,596,000 $24,240,000 $64,356,000 Increase (Decrease) 84 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) F.Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current discount rate: Net OPEB Liability/(Asset) Discount Rate -1% Current Discount Rate Discount Rate +1% (5.75%) (6.75%) (7.75%) $76,503,000 $64,356,000 $54,367,000 The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates as discussed in the assumptions above: Net OPEB Liability/(Asset) Current Healthcare Cost 1% Decrease Trend Rates 1% Increase $53,551,000 $64,356,000 $77,596,000 G.OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2020, the City recognized OPEB expense of $6,119,997. At June 30, 2020, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Employer contributions made subsequent to the measurement date $4,854,000 Differences between actual and expected experience 2,136,000 Changes of assumptions ($485,000) Net differences between projected and actual earnings on plan investments (295,000) Total $6,990,000 ($780,000) $4,854,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows: Year Annual Ended June 30 Amortization 2021 $495,000 2022 493,000 2023 348,000 2024 20,000 85 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) H. Defined Contribution Plan Description The City of South San Francisco funded HRA Plan is a defined contribution OPEB plan for employees hired on or after April 25, 2010. For those new hires, the City provides a medical after retirement health plan (MARA), and contributes 1.5% of salary for those employees. In addition, employees contribute to the MARA plan as directed by their respective bargaining unit’s Memorandum of Understanding or compensation plan. The plan is administered by Matrix Trust Company. Employee contributions for the fiscal year totaled $200,361. Employer contributions of $373,207 were paid into the Defined Contribution Plan. No liability for the defined contribution has been included in the report since the City fully paid the annual required contribution. Since the assets held under this plan are not the City’s property and are not subject to claims by general creditors of the City, the assets have been excluded from these financial statements. NOTE 10 - JOINTLY GOVERNED ORGANIZATIONS The City participates in the jointly governed organizations discussed below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint organization is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint organization, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of this joint organization are not the City’s responsibility and the City does not have an equity interest in the assets of each joint organization except upon dissolution of the joint organization. A. Oyster Point Marina (OPM) was established in 1977 by the City and the San Mateo County Harbor District (Harbor District) for the purpose of expanding, improving and operating the Oyster Point Marina and Park. The governing board consists of two of the City's council members and two Harbor District commissioners. The Harbor District operates OPM. Operation of the Marina provides revenues for the marina's operations. The City retains title to the land; however, the City is not liable for any obligations of the San Mateo County Harbor District. Condensed unaudited financial information may be obtained from San Mateo County Harbor District, #1 Johnson Pier, Half Moon Bay, CA 94019. 86 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 10 - JOINTLY GOVERNED ORGANIZATIONS (Continued) B. Peninsula Traffic Congestion Relief Alliance (PTCRA) PTCRA was formed from the merger of the Inter City Transportation Systems Management Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The members are the cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay, Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic congestion. The governing board consists of one council member from each member city. The finance director of the City of San Carlos acts as the treasurer and controller of PTCRA. The individual cities are not liable for the debts, liabilities or obligations of PTCRA. Each member city has an equal interest in PTCRA. Condensed accrual basis unaudited financial information may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070. C. City/County Association of Governments (C/CAG) C/CAG was established in 1990 by the County of San Mateo and the Cities of San Mateo County for preparation, adoption, monitoring and enforcing of Countywide state mandated plans. A Board of Directors consisting of one council member from each member city and one member from the County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as the treasurer of C/CAG. The individual cities and the County are not liable for the debts, liabilities, or obligations of C/CAG. Condensed unaudited cash basis financial information may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070. NOTE 11 - RISK MANAGEMENT A. Insurance Coverage The City participates in Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA), a nonprofit benefit corporation established to provide liability insurance coverage, claims and risk management, and legal defense to its participating members. PLAN JPA provides $2,500,000 of self- funded general liability and automobile coverage and $27,500,000 excess liability coverage per occurrence and is responsible for paying claims in excess of the City’s $100,000 self-insured retention. The Plan includes a per occurrence or wrongful act or employee benefit wrongful act up to $10,000,000 with two retained limits of $5,000,000. For the year ended June 30, 2020, the City paid PLAN JPA $1,357,655 in premiums and did not receive a refund of premiums paid in prior years. Financial statements may be obtained from PLAN JPA 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. The City has also purchased excess coverage insurance for worker’s compensation claims from CSAC Excess Insurance Authority (CSAC-EIA). CSAC-EIA provides coverage up to statutory limits in excess of the City’s $500,000 self-insured retention. For the past five fiscal years, general liability and worker compensation settlements did not exceed insurance coverage. 87 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 11 - RISK MANAGEMENT (Continued) B. Liability for Uninsured Claims The City provides for the uninsured portion of claims and judgments in the Self Insurance Internal Service Fund. Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims. The City’s liability for uninsured claims is limited to workers’ compensation and general liability claims, as discussed above, and was estimated by management based on prior year’s claims experience as follows: June 30, 2020 Fiscal Year Workers' General 2018-2019 Compensation Liability Total Total Balance, beginning of year $14,140,000 $311,253 $14,451,253 $12,793,356 Current year claims and changes in estimates of prior years claims 3,082,487 (112,529) 2,969,958 5,033,357 Claims Paid (2,338,487) (117,500) (2,455,987) (3,375,460) Balance, end of year $14,884,000 $81,224 $14,965,224 $14,451,253 Current portion $562,000 $81,224 $643,224 $712,000 NOTE 12 - COMMITMENTS AND CONTINGENCIES A. Litigation The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City. B. Federal and State Grant Programs The City participates in Federal and State grant programs. These programs have been audited by the City’s independent auditors in accordance with the provisions of the Federal Single Audit Act as amended and applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 88 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued) C. Rental Revenues from Use of City Property The Conference Center Authority, a discrete component unit, leases land from the City under an operating lease commencing on January 1, 1999, with a 30-year term from February 1, 1999, to January 31, 2029. The rent amount is subject to re-negotiation at the option of either party between January 1 and February 28, 2009 and 2019. These leases are considered for accounting purposes to be operating leases. Property lease revenue from the Conference Center Authority during the year fiscal year ended June 30, 2020 was $420,000. The cost and carrying amount of leased land under this lease receivable is $5,040,000. Future minimum lease payments from the Conference Center Authority land leases are as follows: Component Unit Year ending June 30 Conference Center 2021 $420,000 2022 420,000 2023 420,000 2024 420,000 2025 420,000 2026-2029 1,410,000 Total $3,510,000 Price Club Associates leases the land for the Costco store on South Airport Boulevard from the City. Lease payments are based on a percentage of Costco’s gross annual sales, with minimum annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal 2014, Costco exercised the option to extend the lease through fiscal year 2029, with an option for a 6 year extension through fiscal year 2035. In fiscal 2020, lease payments were $400,000. Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the City. Minimum lease payments are set at $51,800, and are payable through the fiscal year 2062. In fiscal year 2020, lease payments were $51,800. Future minimum lease revenues for the Costco and Magnolia Plaza leases are as follows: Year ending June 30: Costco Magnolia Plaza Total 2021 $400,000 $51,800 $451,800 2022 400,000 51,800 451,800 2023 400,000 51,800 451,800 2024 400,000 51,800 451,800 2025 400,000 51,800 451,800 2026-2030 2,000,000 259,000 2,259,000 2031-2035 1,600,000 259,000 1,859,000 2036-2040 259,000 259,000 2041-2045 259,000 259,000 2046-2050 259,000 259,000 2051-2055 259,000 259,000 2056-2060 259,000 259,000 2061-2062 103,600 103,600 $5,600,000 $2,175,600 $7,775,600 89 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued) D. Miller Parking Garage The Miller Parking Garage (“Parking Garage)”, constructed in 2011, is located at 329 Miller Avenue in the City. The Parking Garage consists of a five-level open-air concrete structure building of approximately 100,000 square feet with 244 parking spaces. Approximately 14,350 square feet of commercial and office space (the “Commercial Space”) is located on the ground floor of the Parking Garage. In February 2020, the City sold the Commercial Space for $1,247,950, which has been reported as a Special Item. In connection with the sale of the Commercial Space, a condominium map was recorded with the County to create separate assessor parcel numbers for the Commercial Space and the balance of the property included within the Parking Garage. No rights to the parking spaces were granted to the owners of the Commercial Space in connection with its sale. However, the owners of the Commercial Space may use such spaces upon payment to the City of the applicable parking fees. E. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of businesses and shelter in place orders for all but those deemed essential services. While the business disruption is currently expected to be temporary, there is considerable uncertainty around the duration of the closings and shelter in place orders. Although many of the City's services are considered essential, City Hall was closed to the public, certain other services transitioned to online-only and because the City's major revenue sources, including businesses that collect sales taxes, transient occupancy taxes and parking taxes, are directly impacted by these events, it is probable that this matter will negatively impact the City. However, the ultimate financial impact and duration cannot be reasonably estimated at this time. NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES The activities of the Successor Agency are reported in the Successor Agency to the former Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency. Information presented in the following footnotes represents assets and liabilities of the Successor Agency. A. Cash and Investments Cash and investments of the Successor Agency as of June 30, 2020 are discussed in Note 2 to the financial statements. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2020. 90 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued) B. Loans Receivable The Successor Agency assumed the non-housing loans receivable of the former Redevelopment Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing. Under these programs, grants or loans were provided to homeowners or developers who agreed to expend these funds in accordance with the Agency’s terms. C. Capital Assets The Successor Agency assumed the capital assets of the former Redevelopment Agency as of February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their acquisition value. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding two years. All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the balance sheet as a reduction in the book value of capital assets. Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to capital assets: Buildings 50 years Improvements 30 years Machinery and equipment 5-20 years Furniture and fixtures 12 years Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other equipment that is not a vehicle. 91 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued) Capital assets recorded at June 30 are comprised of: Balance Balance June 30, 2019 Additions June 30, 2020 Fiduciary activities Capital assets not being depreciated: Land $111,219 $111,219 Total capital assets not being depreciated 111,219 111,219 Capital assets being depreciated: Buildings and Improvements 329,671 329,671 Equipment and Vehicle 242,190 242,190 Furniture and Fixtures 21,506 21,506 Total capital assets being depreciated 593,367 593,367 Less accumulated depreciation for: Buildings and Improvements (71,767) ($6,593) (78,360) Equipment and Vehicle (242,190) (242,190) Furniture and Fixtures (21,506) (21,506) Total accumulated depreciation (335,463) (6,593) (342,056) Net capital assets being depreciated 257,904 (6,593) 251,311 Fiduciary activity capital assets, net $369,123 ($6,593) $362,530 D. POLLUTION REMEDIATION In fiscal 2010, the former Redevelopment Agency purchased an unimproved parcel adjacent to the Caltrain Commuter Rail station from the State of California. The current rail station is among the oldest on the peninsula, is under the freeway, is small, has limited parking, and is not adjacent to the Downtown due to the freeway. The Successor Agency will contribute that site to the County Transportation Agency for the future reconfiguration of that rail station after the County secures necessary funding from other sources. The Successor Agency’s contribution will include use of the purchased parcel in order to make the station safer, more visually pleasing, more usable to commuters and business shuttles, and to make the Downtown accessible to pedestrians to and from the train station. As part of that land purchase, the price paid by the former Agency to the State was discounted to give the former Agency credit in the amount of $537,000 against known pollution remediation costs on the site. If the funding from the County for the station reconfiguration does not materialize, and if construction does not occur on that site, the pollution mitigation costs will be much less. 92 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued) E. DEFEASED BONDS As of June 30, 2020, the outstanding balance of defeased debt was $4,955,000 for the 1997 Downtown /Central Redevelopment Tax Allocation Bonds. F. COMMITMENTS AND CONTINGENCIES State Approval of Enforceable Obligations The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi- annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The City expects such amounts, if any, to be immaterial. State Asset Transfer Review The activities of the former Redevelopment Agency and the Successor Agency were also subject to further examination by the State of California. The State Controller’s Office conducted a review of the propriety of asset transfers between the former Redevelopment Agency or the Successor Agency and any public agency that occurred on or after January 1, 2011. The results of that review were issued in July 2015 and although the review did identify ineligible transfers of assets from the former Redevelopment Agency to the City, the report reflected the current year and prior year transfers and made no further demands for the return of assets to the Successor Agency. San Mateo Countywide Oversight Board On July 1, 2018, the duties of the South San Francisco Oversight Board transferred to a new San Mateo Countywide Oversight Board, which will now be responsible for overseeing the winddown affairs of all Successor Agencies in San Mateo County, including the Successor Agency to the South San Francisco Redevelopment Agency. 93 This Page Left Intentionally Blank REQUIRED SUPPLEMENTARY INFORMATION CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2020 Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Total Pension Liability Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 Changes of benefit terms Changes of assumptions (3,374,655) 12,421,358 (1,361,078) Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342 2,853,948 Benefit payments, including refunds of employee contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 Total pension liability - ending (a)$196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819 $244,816,128 Plan fiduciary net position Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 Benefit payments, including refunds of employee contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) Plan to plan resource movement (50,555) 229 (365)(20) Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) Other miscellaneous income (443,767) 365 Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 Plan fiduciary net position - ending (b)$143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642 $163,510,764 Net pension liability - ending (a)-(b)$53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 Plan fiduciary net position as a percentage of the total pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 Net pension liability as percentage of covered- employee payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% Notes to Schedule: *Fiscal year 2015 was the 1st year of implementation. Benefit changes:The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes in assumptions: GASB 68, paragraph 68 states that the long long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. In 2018, there were no changes. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 and 2016 measurement dates. 96 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2020 Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CONTRIBUTIONS Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 Contributions in relation to the actuarially determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 Contributions as a percentage of covered- employee payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% Notes to Schedule Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age Amortization method Level percentage of payroll Asset valuation method Fair value of assets Inflation 2.75% for 2015 to 2019, and 2.875% for 2020 Salary increases Investment rate of return Retirement age Mortality Varies by entry age and service 7.50% for 2015 to 2018, 7.375% for 2019 and 7.25% for 2020, net of administrative expenses, including inflation The probabilities of Retirement are based on the CalPERS Experience Study. The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019 and 2020, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP- 2016 published by the Society of Actuaries. 97 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2020 Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Total Pension Liability Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 Changes of benefit terms Changes of assumptions (4,789,129) 18,010,606 (1,293,579) Difference between expected and actual experience (4,226,388) (915,267) 4,520,149 1,318,613 2,853,684 Benefit payments, including refunds of employee contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 Total pension liability - ending (a)$266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740 $343,645,905 Plan fiduciary net position Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 Benefit payments, including refunds of employee contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) Plan to plan resource movement (229) (512) 20 Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) Other miscellaneous income (617,378) 512 Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 Plan fiduciary net position - ending (b)$195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754 $231,869,470 Net pension liability - ending (a)-(b)$71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 Plan fiduciary net position as a percentage of the total pension liability 73.37% 72.65%68.90%66.44%67.53%67.47% Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 Net pension liability as percentage of covered-employee payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% Notes to Schedule: *Fiscal year 2015 was the 1st year of implementation. Benefit changes.The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes in assumptions: GASB 68, paragraph 68 states that the long long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. In 2018, there were no changes. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 and 2016 measurement dates. 98 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2020 Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CONTRIBUTIONS Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 Contributions in relation to the actuarially determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 Contributions as a percentage of covered- employee payroll 43.12% 44.97% 41.26% 42.51% 44.24% 46.99% Notes to Schedule Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age Amortization method Level percentage of payroll Asset valuation method Fair value of assets Inflation 2.75% for 2015 to 2019, and 2.875% for 2020 Salary increases Investment rate of return Retirement age Mortality *Fiscal year 2015 was the 1st year of implementation Varies by entry age and service 7.50% for 2015 to 2018, 7.375% for 2019 an d 7.25% for 2020, net of pension plan investment expense, including inflation. The probabilities of Retirement are based on the CalPERS Experience Study. The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019 and 2020, pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. 99 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2020 SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS Retiree Healthcare OPEB Plan - Agent Multiple Employer Last 10 fiscal years* (Amounts in 000's) Measurement Date 6/30/17 6/30/18 6/30/2019 Total OPEB Liability Service Cost $1,574 $1,535 $1,558 Interest 5,087 5,325 5,568 Changes in benefit terms Differences between expected and actual experience 91 2,895 Changes of assumptions (672) Benefit payments (2,901)(3,326)(3,378) Net change in total OPEB liability 3,760 3,625 5,971 Total OPEB liability - beginning 75,240 79,000 82,625 Total OPEB liability - ending (a)$79,000 $82,625 $88,596 Plan fiduciary net position Contributions - employer $3,703 $4,128 $4,180 Contributions - employee Net investment income 1,803 1,566 1,402 Administrative expense (9)(37)(5) Benefit payments (2,901)(3,326)(3,378) Net change in plan fiduciary net position 2,596 2,331 2,199 Plan fiduciary net position - beginning 17,114 19,710 22,041 Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 Net OPEB liability - ending (a)-(b)$59,290 $60,584 $64,356 Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% Covered-employee payroll $26,539 $26,986 $27,662 Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% * Fiscal year 2018 was the first year of implementation. 100 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2020 SCHEDULE OF CONTRIBUTIONS Retiree Healthcare OPEB Plan - Agent Multiple Employer Last 10 fiscal years* (Amounts in 000's) Fiscal Year Ended June 30, 2018 2019 2020 Actuarially determined contribution $6,279 $6,839 $6,995 Contributions in relation to the actuarially determined contribution 4,128 4,180 4,854 Contribution deficiency (excess) $2,151 $2,659 $2,141 Covered-employee payroll $26,986 $27,662 $28,215 Contributions as a percentage of covered-employee payroll 7.97% 9.61% 7.59% * Fiscal year 2018 was the first year of implementation. Valuation Date • June 30, 2019 Contribution Policy • City contributes $802,000 per year into trust Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll Amortization Method • Level dollar Amortization Period • Average of 23 years remaining for 2019/20 • 6.75% at June 30, 2019 • 6.75% at June 30, 2018 • Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust. Inflation • 2.75% per annum Salary Increases • Aggregate - 3% annually • Merit - CalPERS 1997-2015 Experience Study Healthcare/Medical Trend • Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years • Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study Mortality Improvement • Mortality projected fully generational with Scale MP-2019 Healthcare participation for future retirees • 100% if covered, 95% if waived Retiree Healthcare OPEB Plan - Agent Multiple Employer NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION Methods and Assumptions for Actuarially Determined Contribution Discount Rate and Long-Term Expected Rate of Return on Assets 101 This Page Left Intentionally Blank SUPPLEMENTARY INFORMATION This Page Left Intentionally Blank GENERAL FUND The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund is comprised of the following: GENERAL PURPOSE FUND This fund accounts for resources traditionally associated with government, such as administration, public safety, library, parks maintenance, and recreation, outside of those accounted for in other funds. MEASURE W FUND This fund accounts for revenue as the result of the voter-approved one-half percent sales and use tax that was passed on November 3, 2015. The tax went into effect April 1, 2016 and will last for 30 years until March 31, 2046. Revenues are committed for maintenance and enhancement of local services. 105 General Purpose Measure W Total ASSETS Cash and investments $48,288,767 $13,137,586 $61,426,353 Receivables: Accounts 5,972,185 1,841,795 7,813,980 Accrued interest 243,824 243,824 Due from other funds 4,400,000 4,400,000 Due from Conference Center 60,650 60,650 Advances to other funds Inventory 574 574 Restricted cash and investments 352,797 352,797 Properties held for redevelopment 18,372,633 18,372,633 Total Assets $77,691,430 $14,979,381 $92,670,811 LIABILITIES Accounts payable $2,018,069 $2,018,069 Accrued salaries and benefits 3,416,228 3,416,228 Other payable 186,956 186,956 Deposits 1,935,463 1,935,463 Unearned revenue Total Liabilities 7,556,716 7,556,716 FUND BALANCES Nonspendable 574 574 Restricted 18,372,633 18,372,633 Committed 2,756,632 $14,966,706 17,723,338 Assigned 5,708,113 12,675 5,720,788 Unassigned 43,296,762 43,296,762 Total Fund Balances 70,134,714 14,979,381 85,114,095 Total Liabilities and Fund Balances $77,691,430 $14,979,381 $92,670,811 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING BALANCE SHEETS JUNE 30, 2020 106 Intra-Fund Transactions General Purpose Measure W Elimination Total REVENUES Property taxes $42,847,443 $42,847,443 Sales taxes 19,859,058 $11,704,090 31,563,148 Transient occupancy taxes 13,829,025 13,829,025 Franchise Fees 4,594,577 4,594,577 Other taxes 4,515,376 4,515,376 Intergovernmental 1,626,529 1,626,529 Interest and rentals 4,845,966 4,845,966 Licenses and permits 15,900,500 15,900,500 Charges for services 9,978,678 9,978,678 Fines and forfeitures 814,354 814,354 Other 390,733 390,733 Total Revenues 119,202,239 11,704,090 130,906,329 EXPENDITURES Current: City Council 258,413 258,413 City Clerk 978,451 978,451 City Treasurer 151,726 151,726 City Attorney 1,009,372 1,009,372 City Manager 4,139,612 4,139,612 Finance 3,222,657 3,222,657 Non-departmental 1,014,840 1,014,840 Human Resources 1,672,701 1,672,701 Fire 28,138,053 28,138,053 Police 30,190,060 30,190,060 Public Works 6,156,203 6,156,203 Parks and Recreation 17,130,302 17,130,302 Library 5,940,870 5,940,870 Economic and Community Development 7,669,329 7,669,329 Total Expenditures 107,672,589 107,672,589 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 11,529,650 11,704,090 23,233,740 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets Transfers in 5,979,520 ($4,677,085) 1,302,435 Transfers out (13,851,629) (15,467,658) 4,677,085 (24,642,202) Total Other Financing Sources (Uses)(7,872,109) (15,467,658)(23,339,767) Net Change in Fund Balances before special items 3,657,541 (3,763,568)(106,027) SPECIAL ITEMS Proceeds from sale of common interest 1,247,950 1,247,950 Remittance of land sale proceeds (971,011)(971,011) Net Change in Fund Balances 3,934,480 170,912 Fund balance - July 1 66,200,234 18,742,949 84,943,183 Fund balance - June 30 $70,134,714 $14,979,381 $85,114,095 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2020 107 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes $36,659,133 $36,659,133 $42,847,443 $6,188,310 Sales taxes 18,763,000 18,763,000 19,859,058 1,096,058 Transient occupancy taxes 16,855,297 16,855,297 13,829,025 (3,026,272) Franchise fees 4,000,000 4,000,000 4,594,577 594,577 Other taxes 6,058,132 6,058,132 4,515,376 (1,542,756) Intergovernmental 1,626,854 2,662,818 1,626,529 (1,036,289) Interest and rentals 3,059,459 3,059,459 4,845,966 1,786,507 Licenses and permits 12,131,018 12,131,018 15,900,500 3,769,482 Charges for services 10,417,837 10,417,839 9,978,678 (439,161) Fines and forfeitures 618,500 618,500 814,354 195,854 Other 181,994 181,994 390,733 208,739 Amounts available for appropriation 110,371,224 111,407,190 119,202,239 7,795,049 Charges to appropriations (outflows) City Council 290,291 290,291 258,413 31,878 City Clerk 1,056,761 1,091,062 978,451 112,611 City Treasurer 143,137 143,138 151,726 (8,588) City Attorney 1,115,935 1,115,935 1,009,372 106,563 City Manager 2,542,579 5,988,688 6,484,125 (495,437) Finance 3,294,240 3,851,736 3,397,916 453,820 Non-departmental 997,844 1,452,844 1,081,965 370,879 Human Resources 1,794,862 2,019,064 1,781,034 238,030 Fire 29,608,967 30,983,929 28,434,808 2,549,121 Police 30,926,920 31,071,930 30,190,060 881,870 Public Works 5,018,087 5,755,272 6,487,502 (732,230) Parks and Recreation 17,762,501 17,893,967 17,253,040 640,927 Library 6,132,137 6,674,593 5,952,038 722,555 Economic and Community Development 9,925,951 13,935,395 9,920,252 4,015,143 Total charges to appropriations 110,610,212 122,267,844 113,380,702 8,887,142 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets 2,250,000 2,250,000 (2,250,000) Transfers in 1,261,591 1,539,100 5,979,520 4,440,420 Transfers out (953,454) (16,902,319) (13,851,629)3,050,690 Total Other Financing Sources (Uses)2,558,137 (13,113,219)(7,872,109)5,241,110 NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS 2,319,149 (23,973,873)(2,050,572) 21,923,301 SPECIAL ITEMS Proceeds from sale of common interest 1,247,950 1,247,950 Remittance of land sale proceeds (971,011)(971,011) Net Change in Fund Balances $2,319,149 ($23,973,873)(1,773,633) $22,200,240 Fund Balance - July 1 66,200,234 Adjustment to budgetary basis: Encumbrance adjustments 5,708,113 Fund Balance - June 30 $70,134,714 (Continued) Budgeted Amounts General Purpose 108 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes Sales taxes $12,370,000 $12,370,000 $11,704,090 ($665,910) Transient occupancy taxes Franchise fees Other taxes Intergovernmental Interest and rentals Licenses and permits Charges for services Fines and forfeitures Other Amounts available for appropriation 12,370,000 12,370,000 11,704,090 (665,910) Charges to appropriations (outflows) City Council City Clerk City Treasurer City Attorney City Manager 12,675 12,675 Finance Non-departmental Human Resources Fire Police Public Works Parks and Recreation Library Economic and Community Development Total charges to appropriations 12,675 12,675 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets Transfers in Transfers out (17,067,000) (25,536,655) (15,467,658) 10,068,997 Total Other Financing Sources (Uses) (17,067,000) (25,536,655) (15,467,658) 10,068,997 NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS (4,697,000) (13,179,330)(3,776,243)9,403,087 SPECIAL ITEMS Proceeds from sale of common interest Remittance of land sale proceeds Net Change in Fund Balances ($4,697,000) ($13,179,330)(3,776,243) $9,403,087 Fund Balance - July 1 18,742,949 Adjustment to budgetary basis: Encumbrance adjustments 12,675 Fund Balance - June 30 $14,979,381 (Continued) Budgeted Amounts Measure W 109 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Intrafund Eliminations Variance with Final Budget Actual Actual Positive Amount Original Final Amount (Negative) Resources (inflows): Property taxes $36,659,133 $36,659,133 $42,847,443 $6,188,310 Sales taxes 31,133,000 31,133,000 31,563,148 430,148 Transient occupancy taxes 16,855,297 16,855,297 13,829,025 (3,026,272) Franchise fees 4,000,000 4,000,000 4,594,577 594,577 Other taxes 6,058,132 6,058,132 4,515,376 (1,542,756) Intergovernmental 1,626,854 2,662,818 1,626,529 (1,036,289) Interest and rentals 3,059,459 3,059,459 4,845,966 1,786,507 Licenses and permits 12,131,018 12,131,018 15,900,500 3,769,482 Charges for services 10,417,837 10,417,839 9,978,678 (439,161) Fines and forfeitures 618,500 618,500 814,354 195,854 Other 181,994 181,994 390,733 208,739 Amounts available for appropriation 122,741,224 123,777,190 130,906,329 7,129,139 Charges to appropriations (outflows) City Council 290,291 290,291 258,413 31,878 City Clerk 1,056,761 1,091,062 978,451 112,611 City Treasurer 143,137 143,138 151,726 (8,588) City Attorney 1,115,935 1,115,935 1,009,372 106,563 City Manager 2,542,579 6,001,363 6,496,800 (495,437) Finance 3,294,240 3,851,736 3,397,916 453,820 Non-departmental 997,844 1,452,844 1,081,965 370,879 Human Resources 1,794,862 2,019,064 1,781,034 238,030 Fire 29,608,967 30,983,929 28,434,808 2,549,121 Police 30,926,920 31,071,930 30,190,060 881,870 Public Works 5,018,087 5,755,272 6,487,502 (732,230) Parks and Recreation 17,762,501 17,893,967 17,253,040 640,927 Library 6,132,137 6,674,593 5,952,038 722,555 Economic and Community Development 9,925,951 13,935,395 9,920,252 4,015,143 Total charges to appropriations 110,610,212 122,280,519 113,393,377 8,887,142 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets 2,250,000 2,250,000 (2,250,000) Transfers in ($4,677,085)1,261,591 1,539,100 1,302,435 (236,665) Transfers out 4,677,085 (18,020,454) (42,438,974) (24,642,202) 17,796,772 Total Other Financing Sources (Uses)(14,508,863) (38,649,874) (23,339,767) 15,310,107 NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS (2,377,851) (37,153,203) (5,826,815) 31,326,388 SPECIAL ITEMS Proceeds from sale of common interest 1,247,950 1,247,950 Remittance of land sale proceeds (971,011)(971,011) Net Change in Fund Balances ($2,377,851) ($37,153,203)(5,549,876) $31,603,327 Fund Balance - July 1 84,943,183 Adjustment to budgetary basis: Encumbrance adjustments 5,720,788 Fund Balance - June 30 $85,114,095 Budgeted Amounts Total 110 MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND These fees provide new development’s share of new and rehabilitated sewer collection and treatment facilities to serve the East of Highway 101 area. EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND These fees are to provide new development’s share of new and expanded roadway and intersection improvements to serve the East of Highway 101 area. CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND These citywide fees provide new development’s share of new and expanded childcare facilities to serve the City. DEVELOPER DEPOSIT CAPITAL PROJECTS FUND These fees provide new development’s share of funding for the Oyster Point at Highway 101 interchange improvements. CAPITAL INFRASTRUCTURE RESERVE FUND Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks, and storm water facilities). CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting to new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment’s, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. 111 CITY OF SOUTH SAN FRANCISCO EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $174,089 $174,089 Charges for services 1,317,358 1,317,358 Total Revenues 1,491,447 1,491,447 EXPENDITURES: Current: Non-departmental $2,745 2,745 Total Expenditures 2,745 2,745 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,745) 1,488,702 1,491,447 OTHER FINANCING SOURCES (USES) Transfers out (3,204,378) (516,996) 2,687,382 Total other financing sources (uses) (3,204,378) (516,996) 2,687,382 NET CHANGE IN FUND BALANCE ($3,207,123) 971,706 $4,178,829 Fund balance (deficit) - July 1 4,436,134 Fund balance (deficit) - June 30 $5,407,840 112 CITY OF SOUTH SAN FRANCISCO EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $814,074 $814,074 Charges for services 4,244,426 4,244,426 Total Revenues 5,058,500 5,058,500 EXPENDITURES: Current: Public works $2,745 2,745 Total Expenditures 2,745 2,745 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,745) 5,055,755 5,058,500 OTHER FINANCING SOURCES (USES) Transfers (out) (8,934,061) (633,466) 8,300,595 Total other financing sources (uses) (8,934,061) (633,466) 8,300,595 NET CHANGE IN FUND BALANCE ($8,936,806) 4,422,289 $13,359,095 Fund balance - July 1 20,593,457 Fund balance - June 30 $25,015,746 113 CITY OF SOUTH SAN FRANCISCO CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $209,913 $209,913 Charges for services $1,500 455,544 454,044 Total Revenues 1,500 665,457 663,957 EXPENDITURES: Current: Non-departmental 2,745 2,745 Public Works 1,500 1,500 Total Expenditures 4,245 4,245 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,745) 661,212 663,957 OTHER FINANCING SOURCES (USES) Transfers (out) (14,232) (14,232) Total other financing sources (uses) (14,232) (14,232) NET CHANGE IN FUND BALANCE ($16,977) 646,980 $663,957 Fund balance - July 1 5,536,728 Adjustment to budgetary basis: Encumbrance adjustments 1,500 Fund balance - June 30 $6,185,208 114 CITY OF SOUTH SAN FRANCISCO DEVELOPER DEPOSIT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $7,172 $7,172 Total Revenues 7,172 7,172 EXPENDITURES Current: Public works Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,172 7,172 OTHER FINANCING SOURCES (USES) Transfers (out) Total other financing sources (uses) NET CHANGE IN FUND BALANCE 7,172 $7,172 Fund balance - July 1 9,616 Fund balance - June 30 $16,788 115 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $1,061,572 $1,061,572 Total Revenues 1,061,572 1,061,572 EXPENDITURES Current: Public Works $1,000,000 1,000,000 Total Expenditures 1,000,000 1,000,000 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,000,000) 61,572 1,061,572 OTHER FINANCING SOURCES (USES) Transfers in 10,900,000 10,900,000 Transfers out (7,001,279) (1,698,620) 5,302,659 Total other financing sources (uses) 3,898,721 9,201,380 5,302,659 NET CHANGE IN FUND BALANCE $2,898,721 9,262,952 $6,364,231 Fund balance - July 1 19,107,972 Adjustment to budgetary basis: Encumbrance adjustments 993,000 Fund balance - June 30 $29,363,924 CITY OF SOUTH SAN FRANCISCO CAPITAL INFRASTRUCTURE RESERVE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 116 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $7,002 $7,002 Total Revenues 7,002 7,002 EXPENDITURES Current: Police $53,800,000 52,680,355 1,119,645 Debt service: Interest and fiscal charges 331,990 (331,990) Total Expenditures 53,800,000 53,012,345 787,655 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (53,800,000) (53,005,343) 794,657 OTHER FINANCING SOURCES (USES) Issuance of debt 43,905,000 43,905,000 Bond premium 9,895,000 10,242,530 347,530 Total other financing sources (uses) 53,800,000 54,147,530 347,530 NET CHANGE IN FUND BALANCE 1,142,187 $1,142,187 Fund balance - July 1 Adjustment to budgetary basis: Encumbrance adjustments 45,462,322 Fund balance - June 30 $46,604,509 CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS POLICE STATION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 117 This Page Left Intentionally Blank NON-MAJOR GOVERNMENTAL FUNDS Special revenue funds are used to account for revenue sources that are restricted by law or administrative action to expenditures for specified purposes. Special revenue funds used by the City of South San Francisco include: Gas Tax – Accounts for State monies received and expended for street improvements, repairs, engineering, and administration under Streets and Highway Code Sections 2105, 2106, 2107, and 2107.5. Includes sales taxes on gasoline received from the State’s Traffic Congestion Relief Fund. Developer Contributions – Accounts for fees deposited for planning and engineering reviews or for future project development. Federal Aviation Grant – This fund accounts for federal monies received for insulating structures against airport noise. Community Development Block Grant – Accounts for Federal monies received to be expended for development of jobs and suitable housing for low-income residents. Maintenance Districts – Accounts for a portion of property tax dedicated to provide for the maintenance of landscaped areas within housing developments. Transportation Sales Tax – Accounts for the sales tax that provides resources for street improvements and repairs. Solid Waste Reduction – Accounts for revenues and expenditures associated with the waste reduction, recycling, composting and household hazardous waste programs for residents and businesses. Supplemental Law Enforcement Services – Accounts for State monies provided for designated Police department services. City Programs – Organizations and individuals provide revenues that fund certain programs and services. Affordable Housing Trust – The inclusionary housing requirement in the City provides that 20% of new residential housing units (for projects of 4 or more units) be affordable. These in-lieu fees (in-lieu of production of affordable housing units by the developer) provide new residential development’s share of affordable housing units. PEG Equipment and Access – Accounts for the one percent of money set-aside from cable franchise fees that are used to support public, educational and governmental (PEG) channels. Transit Station Enhancement in-Lieu Fee – Accounts for revenues that are collected as a negotiated community benefit. Road Maintenance and Rehabilitation – Accounts for State monies received and expended for road maintenance and rehabilitation pursuant to Senate Bill 1, approved in 2017. San Mateo County (SMC) Measure W ½ Sales Tax – Accounts for the City’s portion of the special half cent sales tax receipts restricted for congestion relief and transit improvements. 119 NON-MAJOR GOVERNMENTAL FUNDS (Continued) Capital projects funds are used to account for resources used for the acquisition and construction of capital facilities or major capital equipment, except for capital improvements financed by proprietary funds. Capital projects funds used at the City of South San Francisco include: Non-obligated Capital Projects – Accounts for the construction of assets financed by non- obligated debt. Public Safety Impact Fee – These fees are to provide new development’s share of funding for the replacement of public safety capital equipment, vehicles and facilities. Oyster Point Improvements Impact Fees – These fees provide new development’s share of funding for the Oyster Point at Highway 101 interchange improvements. Sewer Capacity Charges – Accounts for cost recovery charged to new development based on proportional benefit, associated with providing sewer collection and treatment capacity to new development, both through existing infrastructure provided, and through future capital projects not funded by other sources. Oyster Point Development Impact Fees – Accounts for expenditures associated with the acquisition, construction, or improvement related to Oyster Point Development. Park Land Acquisition Fee – Accounts for monies received and expended pursuant to SSFMC Chapter 8.67 and Mitigation Fee Act for park land acquisition. Park Construction Fee – Accounts for monies received and expended pursuant to SSFMC Chapter 8.67 and Mitigation Fee Act for park construction. Bicycle and Pedestrian Impact Fee – Accounts for monies received and expended pursuant to SSFMC Chapter 8.68 for mitigation of impacts of new development on bicycle and pedestrian improvements in the City. Commercial Linkage Impact Fee – Accounts for affordable housing funding created by new commercial development. Debt service funds are used to account for resources used for the payment of debt service on long-term debt. Debt service funds used at the City of South San Francisco include: 2020A Police Station - Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting the new City police station located within the City’s new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. 120 This Page Left Intentionally Blank Federal Community Developer Aviation Development Maintenance Gas Tax Contributions Grant Block Grant Districts ASSETS Cash and investments $308,680 $10,161,677 $781,095 $4,245,957 Receivables: Accounts 128,978 $263,878 73,164 Accrued interest 2,101 37,581 3,717 Loans 713,261 Restricted cash and investments 87,579 Land held for resale Total Assets $439,759 $10,199,258 $784,812 $1,064,718 $4,319,121 LIABILITIES Liabilities: Accounts payable $7,943 $220,555 $23,276 Other payable 491,577 21,873 Deposits 2,252,465 Unearned revenue $784,812 Total Liabilities 2,260,408 784,812 712,132 45,149 Fund Balances: Restricted $439,759 7,938,850 352,586 4,273,972 Total Fund Balances 439,759 7,938,850 352,586 4,273,972 Total Liabilities and Fund Balances $439,759 $10,199,258 $784,812 $1,064,718 $4,319,121 SPECIAL REVENUE FUNDS CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2020 122 SPECIAL REVENUE FUNDS Solid Supplemental Affordable PEG Transit Station Transportation Waste Law Enforce- City Housing Equipment and Enhancement Sales Tax Reduction ment Services Programs Trust Access In-Lieu Fee $2,782,260 $675,921 $893 $6,540,343 $2,031,902 $1,432,846 $2,239,041 17,191 332 39,891 17,549 206 25,168 9,284 6,292 9,484 17,173 1,900,000 $2,799,809 $693,112 $1,099 $6,565,511 $3,958,691 $1,479,029 $2,248,525 $145 $22,521 (3,790) 145 18,731 $2,799,809 692,967 $1,099 6,546,780 $3,958,691 $1,479,029 $2,248,525 2,799,809 692,967 1,099 6,546,780 3,958,691 1,479,029 2,248,525 $2,799,809 $693,112 $1,099 $6,565,511 $3,958,691 $1,479,029 $2,248,525 (Continued) 123 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2020 SPECIAL REVENUE FUNDS Road Maintenance SMC Measure W Non-obligated Public Oyster Point Sewer and 1/2 Cent Capital Safety Improvement Capacity Rehabilitation Sales Tax Projects Impact Fee Impact Fees Charges ASSETS Cash and investments $1,610,274 $485,207 $41,857 $1,413,576 $76,147 $8,115,564 Receivables: Accounts 83,649 108,443 Accrued interest 7,823 1,273 6,502 2,487 34,183 Loans Restricted cash and investments Land held for resale Total Assets $1,701,746 $594,923 $41,857 $1,420,078 $78,634 $8,149,747 LIABILITIES Liabilities: Accounts payable $23,406 Other payable Deposits Unearned revenue Total Liabilities 23,406 Fund Balances: Restricted $1,701,746 $594,923 $41,857 1,396,672 $78,634 $8,149,747 Total Fund Balances 1,701,746 594,923 41,857 1,396,672 78,634 8,149,747 Total Liabilities and Fund Balances $1,701,746 $594,923 $41,857 $1,420,078 $78,634 $8,149,747 CAPITAL PROJECTS FUNDS 124 DEBT SERVICE CAPITAL PROJECTS FUNDS FUND Total Oyster Point Park Land Park Bicycle and Commercial Nonmajor Development Acquisition Construction Pedestrian Linkage 2020A Governmental Impact Fees Fee Fee Impact Fee Impact Fee Bonds Funds $62,767 $865,680 $2,257,026 $65,624 $4,934,568 $51,128,905 51,822 767,348 3,052 18,039 288 22,894 207,923 730,434 87,579 1,900,000 $114,589 $868,732 $2,275,065 $65,912 $4,957,462 $54,822,189 $74,412 $372,258 509,660 2,252,465 784,812 74,412 3,919,195 40,177 $868,732 $2,275,065 $65,912 $4,957,462 50,902,994 40,177 868,732 2,275,065 65,912 4,957,462 50,902,994 $114,589 $868,732 $2,275,065 $65,912 $4,957,462 $54,822,189 125 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2020 SPECIAL REVENUE FUNDS Federal Community Developer Aviation Development Maintenance Gas Tax Contributions Grants Block Grant Districts REVENUES Property taxes $2,024,929 Sales taxes Other taxes Intergovernmental $1,832,110 $446,481 Interest and rentals 15,822 $286,978 $28,257 17,578 Charges for services 2,924,736 Other 16,171 Total Revenues 1,847,932 3,211,714 28,257 480,230 2,024,929 EXPENDITURES Current: Economic and community development 326,206 28,257 424,780 Public works 1,361,716 Non-departmental Fire Police Other 500,000 Capital outlay Debt service: Principal repayments Interest and fiscal charges Total Expenditures 826,206 28,257 424,780 1,361,716 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,847,932 2,385,508 55,450 663,213 OTHER FINANCING SOURCES (USES) Transfers in 1,000,000 3,453 Transfers out (1,930,295) (489,319)(256,904) Total Other Financing Sources (Uses)(1,930,295) 510,681 (253,451) Net Change in Fund Balances (82,363) 2,896,189 (198,001) 663,213 Fund balance - July 1 522,122 5,042,661 550,587 3,610,759 Fund balance - June 30 $439,759 $7,938,850 $352,586 $4,273,972 126 SPECIAL REVENUE FUNDS Solid Supplemental Affordable PEG Transit Station Transportation Waste Law Enforce- City Housing Equipment and Enhancement Sales Tax Reduction ment Services Programs Trust Access In-Lieu Fee $1,844,007 $158,699 132,739 1,638 $156,140 $71,934 $48,001 $72,946 $206,295 92,400 631,333 2,067,407 1,500 161,932 1,976,746 206,295 160,337 2,223,547 165,834 209,933 704,279 44,356 60,337 223,901 44,356 60,337 223,901 1,976,746 161,939 100,000 1,999,646 165,834 209,933 704,279 (2,585,598) (21,006) (100,000)(4,687,200)(259,315) (2,585,598) (21,006) (100,000)(4,687,200)(259,315) (608,852) 140,933 1,999,646 (4,521,366) 209,933 444,964 3,408,661 552,034 1,099 4,547,134 8,480,057 1,269,096 1,803,561 $2,799,809 $692,967 $1,099 $6,546,780 $3,958,691 $1,479,029 $2,248,525 (Continued) 127 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2020 SPECIAL REVENUE FUNDS Road Maintenance SMC Measure W Non-obligated Public Oyster Point Sewer and 1/2 Cent Capital Safety Improvement Capacity Rehabilitation Sales Tax Projects Impact Fee Impact Fees Charges REVENUES Property taxes Sales taxes $709,951 Other taxes Intergovernmental $1,172,241 $136,215 Interest and rentals 59,986 9,836 $49,471 $20,385 125,772 Charges for services 1,195,993 2,035,408 Other 429,948 Total Revenues 1,232,227 719,787 479,419 1,216,378 2,297,395 EXPENDITURES Current: Economic and community development Public works 2,745 Non-departmental Fire 23,406 Police Other Capital outlay Debt service: Principal repayments 1,210,000 Interest and fiscal charges Total Expenditures 23,406 1,210,000 2,745 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,232,227 719,787 456,013 6,378 2,294,650 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (857,975) (124,864) (360,571) (6,468,460) Total Other Financing Sources (Uses) (857,975) (124,864) (360,571) (6,468,460) Net Change in Fund Balances 374,252 594,923 95,442 6,378 (4,173,810) Fund balance - July 1 1,327,494 $41,857 1,301,230 72,256 12,323,557 Fund balance - June 30 $1,701,746 $594,923 $41,857 $1,396,672 $78,634 $8,149,747 CAPITAL PROJECTS FUNDS 128 DEBT SERVICE CAPITAL PROJECTS FUNDS FUND Total Oyster Point Park Land Park Bicycle and Commercial Nonmajor Development Acquisition Construction Pedestrian Linkage 2020A Governmental Impact Fees Fee Fee Impact Fee Impact Fee Bonds Funds $2,024,929 709,951 2,002,706 $6,128,914 9,715,961 166 $23,972 $136,558 $2,201 $174,029 1,434,409 542,883 478,826 1,021,992 12,438 96,233 9,238,537 2,676,958 6,671,963 502,798 1,158,550 14,639 270,262 27,803,451 823,599 6,707,956 8,072,417 23,406 60,337 723,901 1,210,000 $407,156 407,156 6,707,956 407,156 11,320,816 (35,993) 502,798 1,158,550 14,639 270,262 (407,156) 16,482,635 4,687,200 407,156 6,097,809 (1,000,000) (19,141,507) (1,000,000) 4,687,200 407,156 (13,043,698) (35,993) 502,798 158,550 14,639 4,957,462 3,438,937 76,170 365,934 2,116,515 51,273 47,464,057 $40,177 $868,732 $2,275,065 $65,912 $4,957,462 $50,902,994 129 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 GAS TAX DEVELOPER CONTRIBUTIONS Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Property taxes Sales taxes Other taxes Intergovernmental $1,955,116 $1,832,110 ($123,006) Interest and rentals 15,000 15,822 822 $286,978 $286,978 Charges for services 2,924,736 2,924,736 Other Total Revenues 1,970,116 1,847,932 (122,184) 3,211,714 3,211,714 EXPENDITURES Current: City Council Economic and community development $103,425 924,559 (821,134) Public works Non-departmental Fire Police Other 1,000,000 500,000 500,000 Capital outlay Debt service: Principal repayments Interest and fiscal charges Total Expenditures 1,103,425 1,424,559 (321,134) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,970,116 1,847,932 (122,184) (1,103,425) 1,787,155 2,890,580 OTHER FINANCING SOURCES (USES) Transfers in 1,000,000 1,000,000 Transfers out (2,631,182) (1,930,295) 700,887 (1,737,595) (489,319) 1,248,276 Total Other Financing Sources (Uses) (2,631,182) (1,930,295) 700,887 (1,737,595) 510,681 2,248,276 NET CHANGE IN FUND BALANCES ($661,066) (82,363) $578,703 ($2,841,020) 2,297,836 $5,138,856 Adjustment to budgetary basis: Encumbrance adjustments 598,353 Fund balance - July 1 522,122 5,042,661 Fund balance - June 30 $439,759 $7,938,850 130 MAINTENANCE DISTRICTS Variance Variance Variance Final Positive Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,754,248 $2,024,929 $270,681 $662,000 $446,481 ($215,519) $4,000 $28,257 $24,257 120,000 17,578 (102,422) 290,353 (290,353) 16,171 16,171 4,000 28,257 24,257 1,072,353 480,230 (592,123) 1,754,248 2,024,929 270,681 28,257 (28,257) 1,094,797 1,010,588 84,209 1,781,810 1,383,561 398,249 28,257 (28,257) 1,094,797 1,010,588 84,209 1,781,810 1,383,561 398,249 4,000 (4,000) (22,444) (530,358) (507,914) (27,562) 641,368 668,930 3,453 3,453 (300,000) (256,904) 43,096 (296,547) (253,451) 43,096 $4,000 ($4,000) ($318,991) (783,809) ($464,818) ($27,562) 641,368 $668,930 585,808 21,845 550,587 3,610,759 $352,586 $4,273,972 (Continued) GRANT BLOCK GRANT COMMUNITY DEVELOPMENTFEDERAL AVIATION 131 Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Property taxes Sales taxes Other taxes $1,498,375 $1,844,007 $345,632 Intergovernmental Interest and rentals 25,000 132,739 107,739 Charges for services $180,000 $206,295 $26,295 Other Total Revenues 1,523,375 1,976,746 453,371 180,000 206,295 26,295 EXPENDITURES Current: City Council Economic and community development 511,645 158,008 353,637 Public works Non-departmental Fire Police Other Capital outlay Debt service: Principal repayments Interest and fiscal charges Total Expenditures 511,645 158,008 353,637 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,523,375 1,976,746 453,371 (331,645) 48,287 379,932 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (5,624,858) (2,585,598) 3,039,260 (142,265) (21,006) 121,259 Total Other Financing Sources (Uses) (5,624,858) (2,585,598) 3,039,260 (142,265) (21,006) 121,259 NET CHANGE IN FUND BALANCES ($4,101,483) (608,852) $3,492,631 ($473,910) 27,281 $501,191 Adjustment to budgetary basis: Encumbrance adjustments 113,652 Fund balance - July 1 3,408,661 552,034 Fund balance - June 30 $2,799,809 $692,967 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 TRANSPORTATION SALES TAX SOLID WASTE REDUCTION 132 AFFORDABLE HOUSING TRUST Variance Variance Variance Final Positive Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $100,000 $158,699 $58,699 1,638 1,638 $156,140 $156,140 $71,934 $71,934 92,400 92,400 2,067,407 2,067,407 1,500 1,500 100,000 160,337 60,337 2,223,547 2,223,547 165,834 165,834 60,337 (60,337) 223,901 (223,901) $1,142,100 1,050,000 92,100 350,000 350,000 60,337 (60,337)223,901 (223,901) 1,492,100 1,050,000 442,100 100,000 100,000 1,999,646 1,999,646 (1,492,100) (884,166) 607,934 (100,000) (100,000)($60,000)60,000 (4,687,200) (4,687,200) (100,000) (100,000)(60,000)60,000 (4,687,200) (4,687,200) ($60,000) 1,999,646 $2,059,646 ($1,492,100) (5,571,366) ($4,079,266) 1,050,000 1,099 4,547,134 8,480,057 $1,099 $6,546,780 $3,958,691 (Continued) CITY PROGRAMSENFORCEMENT SERVICES SUPPLEMENTAL LAW 133 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Property taxes Sales taxes Other taxes Intergovernmental Interest and rentals $5,000 $48,001 $43,001 $72,946 $72,946 Charges for services 631,333 631,333 Other 125,000 161,932 36,932 Total Revenues 130,000 209,933 79,933 704,279 704,279 EXPENDITURES Current: City Council Economic and community development Public works Non-departmental Fire Police Other Capital outlay Debt service: Principal repayments Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 130,000 209,933 79,933 704,279 704,279 OTHER FINANCING SOURCES (USES) Transfers in Transfers out ($1,199,211) (259,315) 939,896 Total Other Financing Sources (Uses) (1,199,211) (259,315) 939,896 NET CHANGE IN FUND BALANCES $130,000 209,933 $79,933 ($1,199,211) 444,964 $1,644,175 Adjustment to budgetary basis: Encumbrance adjustments Fund balance - July 1 1,269,096 1,803,561 Fund balance - June 30 $1,479,029 $2,248,525 TRANSIT ENHANCEMENT IN-LIEU FEE PEG EQUIPMENT AND ACCESS 134 Variance Variance Variance Final Positive Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $300,000 $709,951 $409,951 $1,185,966 $1,172,241 ($13,725) 59,986 59,986 9,836 9,836 $49,471 $49,471 429,948 429,948 1,185,966 1,232,227 46,261 300,000 719,787 419,787 479,419 479,419 $62,949 32,852 30,097 62,949 32,852 30,097 1,185,966 1,232,227 46,261 300,000 719,787 419,787 (62,949) 446,567 509,516 ($2,773,228) (857,975) 1,915,253 ($300,000) (124,864) 175,136 (392,476) (360,571) 31,905 (2,773,228) (857,975) 1,915,253 (300,000) (124,864) 175,136 (392,476) (360,571) 31,905 ($1,587,262) 374,252 $1,961,514 594,923 $594,923 ($455,425) 85,996 $541,421 9,446 1,327,494 1,301,230 $1,701,746 $594,923 $1,396,672 (Continued) PUBLIC SAFETY IMPACT FEE ROAD MAINTENANCE AND REHABILITATION SMC MEASURE W 1/2 CENT SALES TAX 135 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON GAAP LEGAL BASIS) FOR THE YEAR ENDED JUNE 30, 2020 SEWER CAPACITY CHARGES Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Property taxes Sales taxes Other taxes Intergovernmental $136,215 $136,215 Interest and rentals 125,772 125,772 $136,558 $136,558 Charges for services $200,000 2,035,408 1,835,408 1,021,992 1,021,992 Other Total Revenues 200,000 2,297,395 2,097,395 1,158,550 1,158,550 EXPENDITURES Current: City Council Economic and community development Public works 2,745 2,745 Non-departmental Fire Police Other Capital outlay Debt service: Principal repayments Interest and fiscal charges Total Expenditures 2,745 2,745 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 197,255 2,294,650 2,097,395 1,158,550 1,158,550 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (10,263,243) (6,468,460) 3,794,783 ($64,520) (1,000,000) (935,480) Total Other Financing Sources (Uses) (10,263,243) (6,468,460) 3,794,783 (64,520) (1,000,000) (935,480) NET CHANGE IN FUND BALANCES ($10,065,988) (4,173,810) $5,892,178 ($64,520) 158,550 $223,070 Adjustment to budgetary basis: Encumbrance adjustments Fund balance - July 1 12,323,557 2,116,515 Fund balance - June 30 $8,149,747 $2,275,065 PARK CONSTRUCTION FEE 136 INTERNAL SERVICE FUNDS Internal service funds account for department services and financing performed for other departments within the same governmental jurisdiction. Funding comes from charges assessed to the departments benefiting from the service. Internal service funds used at the City include: City Service – Accounts for vehicle maintenance and information technology services provided to City departments. Self Insurance – Accounts for workers' compensation, general liability and property damage claim activity and financing is represented in this fund. Health and Retirement Benefits – Accounts for health and retirement benefits paid on the behalf of eligible City employees. Equipment Replacement – Accounts for resources set-aside for the future replacement of City vehicles and equipment. 137 CITY OF SOUTH SAN FRANCISCO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION JUNE 30, 2020 Health and Self Retirement Equipment City Service Insurance Benefits Replacement Total ASSETS Current assets: Cash and investments $2,322,308 $16,071,715 $11,657,066 $5,363,335 $35,414,424 Receivables: Accounts 17,677 17,677 Accrued interest 9,370 71,493 54,943 24,053 159,859 Deposit 216,000 73,790 289,790 Prepaid items 1,074,537 1,074,537 Total current assets 2,349,355 16,359,208 12,860,336 5,387,388 36,956,287 Noncurrent assets: Capital assets: Nondepreciable 80,951 80,951 Depreciable, net of accumulated depreciation 5,615,758 5,615,758 Total non-current assets 5,696,709 5,696,709 Total Assets 2,349,355 16,359,208 12,860,336 11,084,097 42,652,996 LIABILITIES Current liabilities: Accounts payable 167,558 149,984 867,089 410,769 1,595,400 Other payable 8,850 32,675 43,220 80,951 165,696 Current portion of accrued insurance loss 643,224 643,224 Current portion of compensated absences 78,137 722,242 800,379 Current portion of long-term debt 204,252 204,252 Total current liabilities 254,545 825,883 1,632,551 695,972 3,408,951 Noncurrent liabilities: Accrued insurance loss 14,322,000 14,322,000 Compensated absences obligation 142,331 976,286 1,118,617 Noncurrent portion of long-term debt 285,529 285,529 Total noncurrent liabilities 142,331 14,322,000 976,286 285,529 15,726,146 Total Liabilities 396,876 15,147,883 2,608,837 981,501 19,135,097 NET POSITION: Net investment in capital assets 5,125,977 5,125,977 Unrestricted 1,952,479 1,211,325 10,251,499 4,976,619 18,391,922 Total Net Position $1,952,479 $1,211,325 $10,251,499 $10,102,596 $23,517,899 138 Health and Self Retirement Equipment City Service Insurance Benefits Replacement Total OPERATING REVENUES Charges for services $5,033,642 $4,593,099 $15,345,511 $1,506,903 $26,479,155 Total Operating Revenues 5,033,642 4,593,099 15,345,511 1,506,903 26,479,155 OPERATING EXPENSES Personnel expenses 2,068,168 920,492 15,326,114 18,314,774 Professional services 643,895 119,750 29,147 792,792 Program supplies 1,269,914 1,000 32,791 1,303,705 Insurance 12,988 1,658,491 1,671,479 Self-insurance and claims 2,358,458 2,358,458 Repair and maintenance 433,341 56,631 489,972 Utilities 189,819 189,819 Depreciation 857,836 857,836 Other 12,782 433,823 446,605 Total Operating Expenses 4,630,907 5,057,191 15,790,084 947,258 26,425,440 Operating Income (Loss)402,735 (464,092) (444,573)559,645 53,715 NONOPERATING REVENUES (EXPENSES) Interest income 71,902 544,451 419,183 183,153 1,218,689 Interest expense (20,329) (20,329) Gain from disposal of capital assets 8,722 8,722 Other 73,419 73,419 Total Nonoperating Revenues (Expenses)71,902 617,870 419,183 171,546 1,280,501 Net income (loss) before transfers 474,637 153,778 (25,390)731,191 1,334,216 TRANSFERS Transfers in 250,000 250,000 500,000 Transfers (out)(31,589) (31,589) Change in Net Position 474,637 153,778 224,610 949,602 1,802,627 Net Position - July 1 1,477,842 1,057,547 10,026,889 9,152,994 21,715,272 Net Position - June 30 $1,952,479 $1,211,325 $10,251,499 $10,102,596 $23,517,899 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2020 CITY OF SOUTH SAN FRANCISCO 139 CITY OF SOUTH SAN FRANCISCO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2020 Health and Self Retirement Equipment City Service Insurance Benefits Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from interfund service provided $5,051,482 $4,533,609 $15,317,731 $1,506,903 $26,409,725 Cash payments to suppliers for goods and services (2,562,739) (1,745,566) (707,767)(8,471) (5,024,543) Cash payments to employees for services (2,081,706) (830,040) (14,367,879)(17,279,625) Cash payments for judgments and claims (1,844,487)(1,844,487) Net Cash Provided by Operating Activities 407,037 113,516 242,085 1,498,432 2,261,070 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 250,000 250,000 500,000 Transfers (out)(31,589) (31,589) Net Cash Provided by Noncapital Financing Activities 250,000 218,411 468,411 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on capital lease (263,838) (263,838) Interest payments (20,329) (20,329) Acquisition of capital assets, net (1,232,218) (1,232,218) Proceeds from the sale of capital assets 8,722 8,722 Net Cash Used in Capital and Related Financing Activities (1,507,663) (1,507,663) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 39,425 289,008 231,558 97,493 657,484 Changes in fair values of investments 34,473 263,049 202,158 88,502 588,182 Net Cash Provided by Investing Activities 73,898 552,057 433,716 185,995 1,245,666 Net Increase (Decrease) in cash and cash equivalents 480,935 665,573 925,801 395,175 2,467,484 Cash and cash equivalents, beginning 1,841,373 15,406,142 10,731,265 4,968,160 32,946,940 Cash and cash equivalents, ending $2,322,308 $16,071,715 $11,657,066 $5,363,335 $35,414,424 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss)$402,735 ($464,092) ($444,573) $559,645 $53,715 Adjustments to reconcile operating income (loss) to cash flows from operating activities: Depreciation 857,836 857,836 Other non-operating revenue (expenses)73,419 73,419 Net change in assets and liabilities: Accounts and lease receivables 17,840 17,840 Deposit (132,909) (27,780)(160,689) Prepaid items (243,797)(243,797) Accounts payable (57,772) 90,452 801,469 834,149 Other payable 32,675 (107,067) 80,951 6,559 Accrued insurance losses 513,971 513,971 Compensated absence obligations 44,234 263,833 308,067 Net Cash Provided by (Used in) Operating Activities $407,037 $113,516 $242,085 $1,498,432 $2,261,070 140 AGENCY FUND An agency fund is used to account for monies where the City is acting as an agent for another government entity. The agency fund used at the City of South San Francisco consisted of: SSF Employee Deferred Comp Trust Oversight – This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on behalf of City employees. 141 CITY OF SOUTH SAN FRANCISCO AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2020 Balance Balance June 30, 2019 Additions Deductions June 30, 2020 ASSETS Cash and investments $105,115 $36,271 $36,150 $105,236 Interest receivable 579 514 579 514 Total Assets $105,694 $36,785 $36,729 $105,750 LIABILITIES Accounts payable $1,706 $1,706 Other accrued liabilities 103,988 $36,785 35,023 $105,750 Total Liabilities $105,694 $36,785 $36,729 $105,750 SSF Employee Deferred Comp Trust Oversight 142 STATISTICAL SECTION This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit. Financial Trends These schedules contain trend information to help the reader understand how the City’s financial performance and well being have changed over time: 1.Net Position by Component 2.Changes in Net Position 3.Fund Balances of Governmental Funds 4.Changes in Fund Balance of Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax: 1.Assessed Value and Estimated Market Value of Taxable Property 2.All Overlapping Property Tax Rates 3.Principal Property Tax Payers 4.Property Tax Levies and Collections Debt Capacity These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future: 1.Ratio of Outstanding Debt by Type 2.Computation of Direct and Overlapping Debt 3.Computation of Legal Bonded Debt Margin 4.Continuing Disclosure Requirements: a.Revenue Bond Coverage b.Sewer Debt Service Coverage c.Bonded Debt Pledge Revenue Coverage Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place: 1.Demographic and Economic Statistics 2.Principal Employers Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs: 1.Full-Time City Government Employees by Function 2.Operating Indicators by Function/Program 3.Capital Asset Statistics by Function/Program 143 STATISTICAL SECTION - (Continued) Miscellaneous Information 1. Collection and Use of 1% Special Transient Occupancy Tax Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 144 2011 2012 2013 2014 2015 Governmental activities Net investment in capital assets $214,246,561 $218,218,696 $216,508,668 $230,440,390 $230,517,037 Restricted 163,669,353 43,321,286 30,514,986 42,367,623 49,311,828 Unrestricted (19,267,010) (3,837,201) 8,021,490 (12,317,511) (134,389,522) Total governmental activities net position $358,648,904 $257,702,781 $255,045,144 $260,490,502 $145,439,343 Business-type activities Net investment in capital assets $66,113,596 $70,653,841 $72,217,660 $78,045,318 $78,598,277 Restricted Unrestricted 9,292,189 10,877,105 13,353,988 15,367,085 4,196,654 Total business-type activities net position $75,405,785 $81,530,946 $85,571,648 $93,412,403 $82,794,931 Primary government Net investment in capital assets $280,360,157 $288,872,537 $288,726,328 $308,485,708 $309,115,314 Restricted 163,669,353 43,321,286 30,514,986 42,367,623 49,311,828 Unrestricted (9,974,821) 7,039,904 21,375,478 3,049,574 (130,192,868) Total primary government net position $434,054,689 $339,233,727 $340,616,792 $353,902,905 $228,234,274 2016 2017 2018 2019 2020 Governmental activities Net investment in capital assets $231,142,079 $254,344,554 $254,570,044 $271,349,364 $296,243,640 Restricted 52,406,602 54,478,093 96,316,988 117,752,590 138,701,991 Unrestricted (120,119,617) (86,808,434) (129,833,581) (114,028,420) (130,288,161) Total governmental activities net position $163,429,064 $222,014,213 $221,053,451 $275,073,534 $304,657,470 Business-type activities Net investment in capital assets $83,930,073 $86,167,704 $90,097,907 $100,463,280 $111,968,328 Restricted Unrestricted 6,243,225 7,199,925 3,227,395 44,966 2,040,842 Total business-type activities net position $90,173,298 $93,367,629 $93,325,302 $100,508,246 $114,009,170 Primary government Net investment in capital assets $315,072,152 $340,512,258 $344,667,951 $371,812,644 $408,211,968 Restricted 52,406,602 54,478,093 96,316,988 117,752,590 138,701,991 Unrestricted (113,876,392) (79,608,509) (126,606,186) (113,983,454) (128,247,319) Total primary government net position $253,602,362 $315,381,842 $314,378,753 $375,581,780 $418,666,640 Source: City of South San Francisco, Department of Finance (a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation. CITY OF SOUTH SAN FRANCISCO (accrual basis of accounting) Last Ten Fiscal Years (a) Net Position by Component ($200) ($100) $0 $100 $200 $300 $400 $500 $600 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Millions Unrestricted Restricted Invested in Capital Assets Net of Related Debt 145 CITY OF SOUTH SAN FRANCISCO Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 2011 2012 2013 2014 Expenses Governmental Activities: General Government $7,711,156 $7,801,328 $8,360,945 $7,155,035 Fire Department 20,032,141 20,749,323 22,746,291 21,200,903 Police Department 22,429,782 23,330,208 24,756,958 24,376,379 Public Works 17,127,086 21,269,281 15,773,710 14,980,417 Park, Recreation and Maintenance Services 10,866,568 11,641,892 12,570,236 12,658,309 Library 4,664,490 4,754,760 4,615,967 4,310,550 Economic and Community Development 15,018,495 8,702,949 16,126,427 5,525,541 Interest on Long -Term Debt 4,249,454 3,328,244 52,139 Total Governmental Activities Expenses 102,099,172 101,577,985 105,002,673 90,207,134 Business-Type Activities: Sewer Rental 19,277,959 19,446,739 20,870,522 19,301,103 Parking District 571,261 769,117 792,609 943,859 Storm Water 710,903 1,010,093 1,655,950 1,078,868 Total Business-Type Activities Expenses 20,560,123 21,225,949 23,319,081 21,323,830 Total Primary Government Expenses $122,659,295 $122,803,934 $128,321,754 $111,530,964 Program Revenues Governmental Activities: Charges for Services: General Government $2,688,990 $2,032,292 $1,951,016 $5,785,598 Fire Department 3,221,837 3,697,665 2,987,956 3,304,952 Police Department 1,815,405 2,599,149 2,640,146 2,805,640 Public Works 3,805,824 3,607,224 2,926,227 4,734,813 Park, Recreation and Maintenance Services 3,004,435 3,178,276 3,433,567 3,571,947 Library 168,505 143,971 125,416 138,827 Economic and Community Development 4,944,328 4,968,383 3,457,020 5,800,849 Operating Grants and Contributions 5,549,711 5,650,685 5,455,010 5,601,916 Capital Grants and Contributions 2,728,543 1,471,416 4,036,786 1,538,225 Total Government Activities Program Revenues 27,927,578 27,349,061 27,013,144 33,282,767 Business-Type Activities: Charges for Services: Sewer Rental 18,087,695 19,310,286 19,338,107 19,155,467 Parking District 722,807 760,248 732,932 785,586 Storm Water 406,589 409,498 427,291 409,458 Operating Grants and Contributions 5,509,874 5,936,527 6,137,401 7,619,601 Capital Grants and Contributions 31,670 Total Business-Type Activities Program Revenue 24,758,635 26,416,559 26,635,731 27,970,112 Total Primary Government Program Revenues $52,686,213 $53,765,620 $53,648,875 $61,252,879 Net (Expense)/Revenue Governmental Activities ($74,171,594) ($74,228,924) ($77,989,529) ($56,924,367) Business-Type Activities 4,198,512 5,190,610 3,316,650 6,646,282 Total Primary Government Net Expense ($69,973,082) ($69,038,314) ($74,672,879) ($50,278,085) 146 2015 2016 2017 2018 2019 2020 $8,421,857 $9,044,518 $10,253,403 $12,506,188 $12,139,671 $15,378,452 22,005,883 22,488,964 25,750,126 30,352,387 31,986,738 34,442,874 23,910,436 23,158,168 25,838,242 30,732,288 32,994,122 36,095,698 14,493,039 11,916,572 12,396,998 18,379,278 20,425,958 17,737,243 12,383,880 12,901,657 15,217,677 17,162,377 17,962,298 19,620,848 4,300,885 4,442,577 5,184,282 5,910,406 6,241,093 6,728,102 5,928,316 7,603,275 8,927,162 10,094,626 10,557,116 9,837,938 512,376 91,444,296 91,555,731 103,567,890 125,137,550 132,306,996 140,353,531 23,969,579 18,273,580 22,661,768 24,397,607 25,719,049 26,213,885 503,014 894,769 940,181 1,202,319 896,994 1,116,840 1,234,616 1,289,465 1,333,409 1,026,948 1,188,182 1,206,694 25,707,209 20,457,814 24,935,358 26,626,874 27,804,225 28,537,419 $117,151,505 $112,013,545 $128,503,248 $151,764,424 $160,111,221 $168,890,950 $3,946,302 $4,194,563 $2,225,049 $1,966,755 $7,930,983 $5,217,199 3,520,275 3,450,524 4,242,940 6,327,921 6,052,804 6,073,247 2,370,736 2,076,837 2,146,909 2,230,824 2,351,491 2,092,791 5,071,729 10,361,525 10,869,608 24,727,897 27,811,701 23,355,636 3,708,272 3,744,137 3,756,369 4,489,665 4,293,474 2,872,786 120,850 164,271 96,987 102,124 105,466 97,603 5,337,177 6,131,463 3,911,597 13,052,441 14,214,991 9,067,781 5,753,845 5,581,492 4,533,539 5,827,149 12,091,079 8,757,554 632,735 1,147,337 577,995 2,515,868 1,629,730 4,930,640 30,461,921 36,852,149 32,360,993 61,240,644 76,481,719 62,465,237 19,798,033 19,569,341 19,897,769 22,417,156 24,078,076 24,296,811 819,051 843,199 916,687 1,084,472 1,180,538 1,003,222 407,640 412,105 418,840 656,315 540,679 412,707 6,242,687 5,802,788 5,763,645 5,834,455 6,452,950 7,440,041 27,267,411 26,627,433 26,996,941 29,992,398 32,252,243 33,152,781 $57,729,332 $63,479,582 $59,357,934 $91,233,042 $108,733,962 $95,618,018 ($60,982,375) ($54,703,582) ($71,206,897) ($63,896,906) ($55,825,277) ($77,888,294) 1,560,202 6,169,619 2,061,583 3,365,524 4,448,018 4,615,362 ($59,422,173) ($48,533,963) ($69,145,314) ($60,531,382) ($51,377,259) ($73,272,932) 147 CITY OF SOUTH SAN FRANCISCO Changes in Net Position (continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2011 2012 2013 2014 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes $54,323,420 $37,379,175 $26,420,861 $22,890,828 Sales Taxes 11,199,175 11,691,564 12,931,805 12,725,141 Transient Occupancy Tax 7,191,938 8,619,170 9,659,281 11,174,017 Franchise fees Other Taxes 7,071,446 7,089,687 7,588,471 8,141,010 Motor Vehicle In-Lieu 211,503 168,214 33,767 40,074 Property taxes in lieu of vehicle license fees 5,086,144 5,153,384 4,955,873 5,319,154 Interest Earnings 3,944,785 2,384,207 809,721 1,108,177 Gain from sale of property Other 1,891,421 9,300,137 1,965,744 2,012,444 Extraordinary Item (107,717,428) Transfers (11,769,393) (785,309) (906,857) (1,041,120) Special items 11,873,226 Total Government Activities 79,150,439 (26,717,199) 75,331,892 62,369,725 Business-Type Activities: Interest Earnings 122,283 149,242 95,177 153,353 Transfers 11,769,393 785,309 906,857 1,041,120 Total Business-Type Activities 11,891,676 934,551 1,002,034 1,194,473 Total Primary Government $91,042,115 ($25,782,648) $76,333,926 $63,564,198 Change in Net Position Governmental Activities $4,978,845 ($100,946,123) ($2,657,637) $5,445,358 Business-Type Activities 16,090,188 6,125,161 4,318,684 7,840,755 Total Primary Government $21,069,033 ($94,820,962) $1,661,047 $13,286,113 148 2015 2016 2017 2018 2019 2020 $24,650,648 $26,438,620 $29,023,618 $29,551,445 $33,446,750 $37,415,367 13,932,125 15,188,686 24,087,776 28,340,393 31,843,568 31,855,027 12,947,473 13,393,437 13,631,507 13,978,533 17,091,222 13,829,025 3,982,092 4,090,073 4,403,493 4,469,808 4,594,577 8,650,056 5,124,574 5,708,187 5,871,096 4,995,404 4,515,376 26,995 26,708 28,933 34,452 32,200 53,089 5,551,651 5,770,060 6,133,230 6,438,199 7,150,867 7,457,005 629,036 1,354,266 622,518 1,097,916 4,808,664 6,384,253 840,298 4,577,239 2,334,407 2,365,820 5,180,288 7,799,392 9,152,218 (1,429,308) (919,547) (1,105,038) (1,997,377) (2,101,222) (8,060,646) 45,205,422 (7,154,626) (531,591) 276,939 69,535,915 72,693,303 129,792,046 85,743,812 109,845,360 107,472,230 126,874 289,201 27,710 37,072 633,704 824,916 1,429,308 919,547 1,105,038 1,997,377 2,101,222 8,060,646 1,556,182 1,208,748 1,132,748 2,034,449 2,734,926 8,885,562 $71,092,097 $73,902,051 $130,924,794 $87,778,261 $112,580,286 $116,357,792 $8,553,540 $17,989,721 $58,585,149 $21,846,906 $54,020,083 $29,583,936 3,116,384 7,378,367 3,194,331 5,399,973 7,182,944 13,500,924 $11,669,924 $25,368,088 $61,779,480 $27,246,879 $61,203,027 $43,084,860 149 CITY OF SOUTH SAN FRANCISCO Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund Nonspendable $67,129 $90,167 $805,677 $14,163 $1,134 $33,580 $474 $106 $372 $574 Restricted 20,582,335 19,201,948 18,372,633 Committed 401,797 208,054 1,406,430 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868 $17,723,338 Assigned 771,849 840,365 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 Unassigned 15,049,168 17,347,445 23,498,194 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 Total General Fund $16,289,943 $18,486,031 $26,276,405 $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 (a) All Other Governmental Funds Nonspendable $39,205 Restricted $163,727,096 $43,364,540 $30,539,396 $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 Assigned 2,390,904 2,076,065 1,105,320 6,188,554 367,023 29,363,924 Unassigned (14,353,252) (1,388,956) (1,379,895) (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649 Total all other governmental funds $151,764,748 $44,051,649 $30,264,821 $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 #REF!#REF! 168,054,691 62,537,680 56,541,226 56,541,226 62,399,893 111,411,392 254,856,817 (a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis. $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Thousands Total Committed Total Unassigned Total Assigned Total Restricted Total Nonspendable 150 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO Changes in Fund Balance of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2011 2012 2013 2014 Revenues Property Taxes $54,128,998 $38,174,655 $27,077,697 $23,010,136 Other Taxes 23,412,992 28,866,546 31,894,811 33,931,446 Intergovernmental revenues 11,860,658 11,580,530 13,054,594 10,757,440 Interest and Rents 7,612,223 4,955,223 3,238,089 3,632,693 Licenses and permits 7,004,603 3,056,507 3,054,451 4,366,271 Charges for services 10,010,541 10,088,070 9,275,724 16,864,409 Fines and forfeitures 2,133,677 2,184,234 1,753,682 1,528,319 Other 2,261,247 3,000,563 1,837,675 2,249,728 Total Revenues 118,424,939 101,906,328 91,186,723 96,340,442 Expenditures Current: General government 6,407,094 6,485,219 6,658,532 5,970,429 Fire Department 18,140,954 18,812,861 20,877,917 20,163,759 Police Department 20,272,684 21,217,818 22,542,135 23,309,568 Public works 9,856,201 14,253,609 9,186,493 16,791,894 Recreation and Community Services 10,168,425 10,101,408 10,927,433 11,552,502 Library 4,231,762 4,272,701 4,112,570 3,987,928 Economic and Community Development 19,894,692 8,184,334 20,512,545 5,972,966 Other Capital outlay 6,969,052 8,894,514 Debt service: Principal repayment 1,842,000 1,752,000 453,381 Interest and fiscal charges 4,274,170 1,817,764 52,139 Total Expenditures 102,057,034 95,792,228 94,869,764 88,202,427 Excess (deficiency) of revenues over (under) expenditures 16,367,905 6,114,100 (3,683,041)8,138,015 Other Financing Sources (Uses) Transfers in 88,175,882 108,413,018 4,467,530 21,870,234 Transfers (out)(99,947,814) (109,646,766)(6,780,943)(24,149,582) Lease revenue bonds issued Premium on bonds Sale of capital assets Total other financing sources (uses)(11,771,932)(1,233,748)(2,313,413)(2,279,348) Net Change in fund balances before extraordinary and special items 4,595,973 4,880,352 (5,996,454)5,858,667 Extraordinary item (110,397,363) Special item Net change in fund balances $4,595,973 ($105,517,011) ($5,996,454)$5,858,667 Debt service as a percentage of noncapital expenditures 6.7%4.1%0.1%0.6% For The Fiscal Year Ended June 30, 152 2015 2016 2017 2018 2019 2020 $24,650,648 $26,438,620 $35,156,848 $35,989,644 $40,597,617 $44,872,372 38,275,478 $41,811,097 $49,608,385 54,597,272 60,721,378 57,214,783 10,453,071 12,360,354 4,019,771 8,433,240 13,179,593 18,317,060 3,531,966 4,207,453 3,100,692 3,524,727 7,231,303 8,864,998 4,795,158 6,896,897 7,823,403 14,674,809 15,381,416 15,900,500 13,387,712 15,386,358 14,485,367 31,961,419 41,055,659 27,442,005 1,221,413 791,756 899,118 423,604 926,729 814,354 4,660,668 2,439,579 2,906,625 6,454,460 7,994,701 3,067,691 100,976,114 110,332,114 118,000,209 156,059,175 187,088,396 176,493,763 7,167,969 8,469,924 9,399,930 10,403,449 10,166,977 12,453,262 21,247,989 24,175,340 25,632,366 26,059,072 27,576,879 28,161,459 23,611,743 25,458,986 25,998,097 26,970,854 28,533,292 37,468,430 15,923,071 14,846,346 12,143,965 23,859,399 38,459,963 40,070,330 11,826,407 13,234,028 14,897,157 15,468,370 16,530,603 17,130,302 4,247,650 4,681,188 5,157,355 5,379,836 5,628,693 5,940,870 5,917,508 7,907,655 8,943,111 9,338,793 9,085,390 8,780,903 480,290 395,749 274,183 256,298 333,024 723,901 352,674 656,000 23,000 2,382,000 3,464,000 1,210,000 739,146 90,775,301 99,825,216 102,469,164 120,118,071 139,778,821 152,678,603 10,200,813 10,506,898 15,531,045 35,941,104 47,309,575 23,815,160 17,983,227 8,143,075 14,327,130 26,486,651 22,230,499 38,117,966 (19,717,102)(13,193,699)(16,368,499)(30,795,941)(24,581,721)(46,647,023) 43,905,000 10,242,530 1,016,276 3,990,605 840,298 (1,733,875)(5,050,624)(1,025,093)(318,685)(1,510,924)45,618,473 8,466,938 5,456,274 14,505,952 35,622,419 45,798,651 69,433,633 20,582,335 (7,154,626)(531,591)276,939 $8,466,938 $5,456,274 $35,088,287 $28,467,793 $45,267,060 $69,710,572 0.4%0.7%0.0%2.2%3.0%1.7% For The Fiscal Year Ended June 30, 153 Real Property Net Taxable value Total Real Total Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2011 $5,547,292,029 $1,509,554,164 $4,922,422,763 $387,673,530 $12,366,942,486 $1,279,681,193 $13,646,623,679 $13,646,623,679 0.36933% 2012 5,579,044,758 1,581,852,456 4,967,158,758 403,895,119 12,531,951,091 1,295,085,027 13,827,036,118 13,827,036,118 0.37860% 2013 5,606,400,603 1,628,754,902 5,050,279,321 418,927,733 12,704,362,559 1,288,434,392 13,992,796,951 13,992,796,951 0.42174% 2014 5,900,441,192 1,713,575,060 4,273,694,531 1,204,288,116 13,091,998,899 1,212,353,871 14,304,352,770 14,304,352,770 0.13474% 2015 6,313,393,048 2,402,335,027 4,588,967,014 345,957,716 13,650,652,805 1,244,971,467 14,895,624,272 14,895,624,272 0.13804% 2016 6,716,642,000 2,000,204,271 5,189,813,366 376,874,603 14,283,534,240 1,197,263,526 15,480,797,766 15,480,797,766 0.13634% 2017 7,087,550,257 2,160,377,671 5,414,028,340 412,344,220 15,074,300,488 1,381,715,511 16,456,015,999 16,456,015,999 0.13632% 2018 7,458,269,085 2,171,084,856 5,838,028,479 383,589,586 15,850,972,006 1,423,348,022 17,274,320,028 17,274,320,028 0.13631% 2019 7,882,766,880 2,511,501,574 6,673,522,321 353,621,189 17,421,411,964 1,765,066,449 19,186,478,413 19,186,478,413 0.13640% 2020 8,459,303,983 2,717,851,133 7,535,473,093 491,981,925 19,204,610,134 1,727,590,717 20,932,200,851 20,932,200,851 0.13640% Source: HdL Coren & Cone, San Mateo County Assessor 2010/11-2019/20 Combined Tax Rolls. (a) (b) CITY OF SOUTH SAN FRANCISCO The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over- rides. These values are considered to be full market values. California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS $0 $5,000 $10,000 $15,000 $20,000 $25,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Millions Unsecured Secured 154 Fiscal Basic School Total Direct/Overlapping Year Levy Districts Tax Rates 2011 1.000 0.1707 1.1707 (1,17) 2012 1.000 0.1824 1.1824 (1,18) 2013 1.000 0.1959 1.1959 (1,19) 2014 1.000 0.2046 1.2046 (1,20) 2015 1.000 0.1822 1.1822 (1,21) 2016 1.000 0.1750 1.1750 (1,22) 2017 1.000 0.1749 1.1749 (1,23) 2018 1.000 0.1642 1.1642 (1,24) 2019 1.000 0.1548 1.1548 (1,25) 2020 1.000 0.1648 1.1648 (1,26) Notes: Source: HDL, Coren & Cone (San mateo County Assessor 2010/11- 2019/20 Tax Rate Table). (26) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0647, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1267 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.1148, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. College bonds. CITY OF SOUTH SAN FRANCISCO DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (1) Like other cities, South San Francisco includes several property tax rate areas with different rates. (23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr College bond. 4 has a rate of 1.1282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.0910 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm College bond. (24) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0601 percent, which includes SSFUSD bonds & San Mateo Jr College bond. 4 has a rate of 1.1276 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.0900 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm College bond. (25) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0597 percent, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1126 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.0801 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. College bonds. (18) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0420 percent, which includes SSFUSD bonds and San Mateo Jr College bond. 3 has a rate of 1.0893 percent and one at 1.0854 percent which includes Jefferson Union School bond, Brisbane ESD bonds & San Mateo JR College bonds and one has a rate of 1.0909 percent which includes San Bruno Park Elementary. (17) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0389 percent, which includes SSFUSD bonds and San Mateo Jr College bond. 3 has a rate of 1.0870 percent and one at 1.0832 percent which includes Jefferson Union School bonds and Brisbane ESD bonds. One has a rate of 1.0834 percent which includes San Bruno Park Elementary. (19) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0521 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0921 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0905 percent, which includes San Bruno Pk Elem bond, SM Union High, SM Jr College bond and San Mateo Comm College bond. (20) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.1048 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm College bond. (21) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0983 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm College bond. (22) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0707 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 3 has a rate of 1.1080 percent and 1 with 1.1068 percent rate which includes College bond Brisbane ESD Bond, Jefferson High bonds, SM Jr and San Mateo Comm College. 1 has a rate of 1.0929 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm College bond. 155 This Page Left Intentionally Blank Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Genentech Inc.$2,823,561,030 1 13.49% $1,904,701,226 1 13.96% Slough SSF LLC 671,415,659 2 3.21%0.00% HCP Oyster Point III LLC 569,748,180 3 2.72%0.00% ARE San Francisco LLC 562,373,193 4 2.69% 353,268,155 4 -- Brittania Pointe Grand LP 315,805,009 5 1.51% 272,915,643 5 2.00% AP3-SF2 CT South LLC 269,311,570 6 1.29%0.00% KR Oyster Point LLC 220,296,896 7 1.05%-- United Airlines Inc 202,728,229 8 0.97% 210,430,123 6 -- Gateway Center LLC 152,318,868 9 0.73%0.00% LPGS Tanforan LLC 132,730,121 10 0.63%-- Slough BTC LLC -- ---- 544,955,383 2 3.99% Slough SSF LLC De -- ---- 464,246,120 3 3.40% ASN Solaire LLC -- ---- 143,205,429 7 1.05% Gateway Center LLC De -- ---- 131,632,467 8 0.96% Britannia Biotech Gateway LP 128,927,713 9 0.94% Myers Peninsula Venture LLC 121,685,150 10 0.89% Subtotal $5,920,288,755 28.28% $4,275,967,409 31.33% Total Net Assessed Valuation: Fiscal Year 2019-20 $20,932,200,851 Fiscal Year 2010-11 $13,646,623,679 HdL Coren & Cone, 2010-11 & 2019-20 Top Ten Property Taxpayers (Net Values). San Mateo County Assessor 2010-11 & 2019-20 Combined Tax Rolls and the SBE Non Unitary Tax Roll Source: 2019-20 2010-11 CITY OF SOUTH SAN FRANCISCO Principal Property Tax Payers Current Year and Nine Years Ago 157 Fiscal Percent of Year Allocations (5) Collections Delinquencies Delinquent taxes 2011 $13,351,506 (4)(4)0.0% 2012 13,360,854 (4)(4)0.0% 2013 13,740,246 (4)(4)0.0% 2014 14,928,197 (4)(4)0.0% 2015 15,184,788 (4)(4)0.0% 2016 15,994,773 (4)(4)0.0% 2017 17,065,875 (4)(4)0.0% 2018 17,894,855 (4)(4)0.0% 2019 19,365,814 (4)(4)0.0% 2020 20,651,650 (4)(4)0.0% Notes: (1) Excludes State Reimbursed Exemptions and deductions for County property tax administration. (2) County adopted full cash value method of valuation rather than assessed valuation. (3) Levies include real and personal property. (5) San Mateo County controller's Office. Adjusted estimated revenue for City of South San Francisco. Source: San Mateo County Auditor -- Controller's Office; Finance Department Revenue Reports (4) Information not applicable. All general purpose property taxes are levied by the County and allocated to other governmental entities. CITY OF SOUTH SAN FRANCISCO PROPERTY TAX LEVIES AND COLLECTIONS (1) LAST TEN FISCAL YEARS $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 $17 $18 $19 $20 $21 $22 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Millions 158 CITY OF SOUTH SAN FRANCISCO Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Loans from Lease Certificates Fiscal Successor Revenue of Capital Year Agency Bonds Participation Lease Loans Total 2011 $4,610,000 $2,342,892 $3,436,000 $10,388,892 2012 $14,120,927 4,445,000 2,056,382 3,324,000 23,946,309 2013 13,343,039 3,084,553 16,427,592 2014 11,722,826 3,316,836 15,039,662 2015 11,370,152 2,786,573 14,156,725 2016 10,714,152 2,238,998 12,953,150 2017 10,691,152 1,673,522 12,364,674 2018 8,309,152 1,135,102 9,444,254 2019 4,845,152 753,619 5,598,771 2020 3,635,152 $43,905,000 489,781 48,029,933 Business-Type Activities Sewer Certificates State Water Total Percentage Fiscal Revenue of Resources Primary of Personal Per Year Bonds Participation Loans Total Government Income (a) Capita (a) 2011 $5,120,000 $60,831,038 $65,951,038 $76,339,930 3.95% 1,187.12 2012 4,885,000 56,530,946 61,415,946 85,362,255 4.31% 1,310.70 2013 4,640,000 52,118,587 56,758,587 73,186,179 3.65% 1,113.78 2014 4,385,000 47,591,019 51,976,019 67,015,681 3.30% 1,019.27 2015 4,120,000 43,543,614 47,663,614 61,820,339 2.92% 957.19 2016 3,850,000 39,392,832 43,242,832 56,195,982 2.59% 858.60 2017 3,570,000 35,136,032 38,706,032 51,070,706 2.22% 761.32 2018 3,275,000 30,770,503 34,045,503 43,489,757 1.80% 648.35 2019 2,970,000 35,148,205 38,118,205 43,716,976 1.63% 644.04 2020 2,655,000 50,150,607 52,805,607 100,835,540 n/a n/a Note : Debt amounts exclude any premiums, discounts, or other amortization amounts. Sources: City of South San Francisco State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See Schedule of Demographic and Economic Statistics for personal income and population data. $0 $10 $20 $30 $40 $50 $60 $70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsTotal Governmental Total Business 159 CITY OF SOUTH SAN FRANCISCO COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2020 2019-20 Assessed Valuation:$20,932,200,851 Redevelopment Incremental Valuation:- Adjusted Assessed Valuation:$20,932,200,851 Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2020 % Applicable (1) Debt 6/30/20 San Mateo Community College District $766,683,503 8.747% $67,061,806 Jefferson Union High School District 275,999,969 2.393 6,604,679 South San Francisco Unified School District 167,147,409 90.541 151,336,936 Brisbane School District 15,991,439 15.891 2,541,200 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $227,544,621 OVERLAPPING FUND DEBT: San Mateo County General Fund Obligations $515,920,256 8.747% $45,127,545 San Mateo County Board of Education Certificates of Participation 7,505,000 8.747 656,462 San Mateo County Flood Control District Certificates of Participation 16,135,000 60.166 9,707,784 South San Francisco Unified School District Certificates of Participation 3,390,000 90.541 3,069,340 Jefferson Union High School District Certificates of Participation 6,946,865 2.393 $166,238 City of South San Francisco Lease Revenue Bonds 43,905,000 100.000 43,905,000 City of South San Francisco Loans Payable 3,635,152 100.000 $3,635,152 City of South San Francisco Capital Leases 489,781 100.000 489,781 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$106,757,302 TOTAL DIRECT DEBT 48,029,933 Total Overlapping Debt $286,271,990 COMBINED TOTAL DEBT $334,301,923 (2) (1) Percentage of overlapping agency's assessed valuation located within boundaries of the city. Ratios to Adjusted Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.09% Total Direct Debt 0.23% Combined Total Debt 1.60% Source: California Municipal Statistics, Inc. and City of South San Francisco 510-658-2640 Austin Busch (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, tax allocation bonds, and Successor Agency Debt. 160 ASSESSED VALUATION:$20,932,200,851 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$784,957,532 LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0 LEGAL BONDED DEBT MARGIN $784,957,532 Total net debt Total Net Debt Legal applicable to the limit Fiscal Debt Applicable to Debt as a percentage Year Limit Limit Margin of debt limit 2011 $511,748,388 $0 $511,748,388 0.00% 2012 518,513,854 0 518,513,854 0.00% 2013 524,729,886 0 524,729,886 0.00% 2014 536,413,229 0 536,413,229 0.00% 2015 558,585,910 0 558,585,910 0.00% 2016 580,561,386 0 580,561,386 0.00% 2017 617,102,145 0 617,102,145 0.00% 2018 647,787,001 0 647,787,001 0.00% 2019 719,492,940 0 719,492,940 0.00% 2020 784,957,532 0 784,957,532 0.00% NOTE: (a) Source: HDL Coren & Cone, San Mateo County Assessor - Combined Tax Rolls CITY OF SOUTH SAN FRANCISCO COMPUTATION OF LEGAL BONDED DEBT MARGIN JUNE 30, 2020 California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value. 161 CITY OF SOUTH SAN FRANCISCO REVENUE BOND COVERAGE SEWER RENTAL ENTERPRISE FUND LAST TEN FISCAL YEARS Net Revenue Debt Service Requirements (4) Fiscal Gross Operating Available for Year Revenue (1)Expenses (2)Debt Service Principal Interest Total Coverage 2011 $23,735,469 $13,527,544 $10,207,925 $230,000 $223,973 $453,973 22.49 2012 25,365,824 13,924,334 11,441,490 235,000 216,501 451,501 25.34 2013 24,782,587 15,151,968 9,630,619 245,000 208,459 453,459 21.24 2014 26,908,316 14,904,225 12,004,091 255,000 199,831 454,831 26.39 2015 26,147,550 18,630,672 7,516,878 265,000 190,533 455,533 16.50 2016 25,610,518 13,514,706 12,095,812 270,000 180,566 450,566 26.85 2017 25,684,966 17,357,273 8,327,693 280,000 169,976 449,976 18.51 2018 28,287,485 19,073,940 9,213,545 295,000 158,616 453,616 20.31 2019 30,393,993 20,398,157 9,995,836 305,000 146,616 451,616 22.13 2020 31,807,110 21,064,165 10,742,945 315,000 134,019 449,019 23.93 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Gross revenue includes operating revenue and non-operating revenue. (2) Direct operating expenses include operating expenses (except depreciation) and non-operating expenses (except interest expense). (3) Retirement of principal for 2005 Sewer Revenue Bonds begins in fiscal year 2008. (4) The requirement does not include loan payments on State Water Resources Board loans. See schedule of Sewer Debt service coverage for details. Source: City of South San Francisco, Department of Finance $5 $10 $15 $20 $25 $30 $35 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020MillionsRevenue (1) Expenses (2) 162 CITY OF SOUTH SAN FRANCISCO SEWER DEBT SERVICE COVERAGE SEWER RENTAL ENTERPRISE FUND LAST SIX FISCAL YEARS Fiscal Year 2015 2016 2017 2018 2019 2020 Revenues Service Charges $19,758,128 $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 Connection and Other Fees 122,640 104,283 147,134 229,002 521,205 146,672 Interest Income 106,830 238,389 23,552 31,061 488,437 623,256 Developer Fees Other Cities' Participation (1)6,159,937 5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 Total Revenues $26,147,535 $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 Operating Expenses (2)$14,987,305 $18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 Wastewater System Net Revenues $11,160,230 $6,850,880 $12,170,248 $9,208,729 $9,995,846 $10,742,943 Parity Debt Service (3) State Water Resources Control Board Loans $5,445,162 $5,449,692 $5,454,747 $5,469,175 $5,477,075 $5,485,587 CSCDA Series 2005D Revenue Bonds 188,148 178,036 167,284 155,706 143,608 130,815 Total Parity Debt $5,633,310 $5,627,728 $5,622,031 $5,624,881 $5,620,683 $5,616,402 Total Parity Debt Service Coverage 1.98 1.22 2.16 1.64 1.78 1.91 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 (2) Excludes depreciation, capital expenditures and debt service. (3) Includes Sewer Revenue Bonds and State Water Loan payments (1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's share of operating costs. See "Wastewater System" herein. (4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an adopted increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005. 163 CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT PLEDGED REVENUE COVERAGE LAST EIGHT FISCAL YEARS Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage 2013 1,490,000$ 3,030,181$ 4,520,181$ 2013 210,000$ 79,995$ 289,995$ 2014 1,545,000 2,971,344 4,516,344 2014 220,000 69,780 289,780 2015 1,605,000 2,904,331 4,509,331 2015 230,000 58,750 288,750 2016 1,680,000 2,834,619 4,514,619 2016 245,000 46,875 291,875 2017 1,745,000 2,761,756 4,506,756 2017 255,000 34,375 289,375 2018 2018 275,000 21,125 296,125 2019 2019 285,000 7,125 292,125 2020 2020 Bond was paid off in fiscal year 2017 Funding Source: RDA tax increment revenues Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage 2013 2014 2015 2016 2017 2018 2019 2020 Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage 2013 1,490,000$ 3,030,181$ 4,520,181$ 2014 1,545,000 2,971,344 4,516,344 2015 1,605,000 2,904,331 4,509,331 2016 1,680,000 2,834,619 4,514,619 2017 1,745,000 2,761,756 4,506,756 2018 0 0 0 2019 0 0 0 2020 0 0 0 Note: Redevelopment Agencies abolished as of 1/31/2012. Numbers for 2012 include the first and second RPTTF distributions received. (A) Shows coverage of all non-housing bonds pledged to tax increment. Source: City of South San Francisco, Department of Finance RDA All Non-housing (A) 2006 RDA Revenue Bonds Funding Source: RDA Gateway and Low Moderate Income Housing tax increment revenues. Gateway bonds defeased in FY 05-06. 1999 RDA Revenue Bonds (Housing) 1989 Cal Health Facilities Financing Authority Revenue Bonds1999 Certificates of Participation 164 City City Estimated Personal Per Capita City San Mateo City City Income (2) Personal Unemployment County Population Year Population (1) (in thousands) Income (2) Rate (3) Population (4) % of County 2010 65,872 $1,918,061 $29,118 10.7% 754,285 8.73% 2011 64,307 1,932,618 30,053 9.7% 729,443 8.82% 2012 65,127 1,982,857 30,446 6.3% 735,678 8.85% 2013 65,710 2,005,666 30,523 5.2% 747,373 8.79% 2014 65,749 2,033,156 30,923 4.5% 745,635 8.82% 2015 64,585 2,114,826 32,744 3.6% 765,135 8.44% 2016 65,451 2,167,750 33,120 3.2% 764,797 8.56% 2017 67,082 2,303,425 35,193 3.2% 771,410 8.70% 2018 67,078 2,421,033 36,092 2.3% 769,545 8.72% 2019 67,879 2,684,438 39,547 2.3% 766,573 8.85% Notes: ** All data were updated to reflect the City of South San Francisco's current information available through HDL, Coren & Cone Data Sources: (1) City Population: HDL/California State Dept of Finance. (2) Personal and per capita income: HDL, Coren & Cone (3) Unemployment Data: HDL/California Employment Development Department (4) San Mateo County Population- https://www.census.gov/quickfacts/fact/table/sanmateocountycalifornia,CA/PST045219 CITY OF SOUTH SAN FRANCISCO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 City Personal Income (in Thousands) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% City Unemployment Rate 8.20% 8.30% 8.40% 8.50% 8.60% 8.70% 8.80% 8.90% City Population % of County $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 City Per Capita Personal Income 165 Percentage Percentage Number of of Total City Number of of Total City Employer Employees Rank Employment Employees Rank Employment Genentech Inc.8,632 1 12.7% 8,556 1 13.4% Costco Wholesale (3 stores)834 2 1.2% 488 2 0.8% Life Technologies Corporation 622 3 0.9% Goodwill Industries of SF, SA 607 4 0.9% 481 3 0.8% Amgen San Francisco LLC 500 5 0.7% MRL San Francico LLC 317 6 0.5% ZS Associates, Inc 317 7 0.5% Amazon.com Services, Inc 291 8 0.4% BIT SSF Miller Cypress, LLC DBA Cadence 260 9 0.4% Alvah Contractors 250 10 0.4% American Etc Inc./Royal Laundry 305 4 0.5% Orowheat/Entenmanns 304 5 0.5% Jansen Alzheimer Immuno Therapy 206 6 0.3% Onyx Pharmaceuticals Inc 200 7 0.3% Guckenheimer Enterprises Inc 200 8 0.3% Columbus Manufacturing, Inc 191 9 0.3% Matagramo Inc 185 10 0.3% Subtotal 12,630 18.6% 11,116 17.4% Total City Population 67,879 64,067 Data Sources: (1) SSF Business License Database- Business licenses expiring 12/31/20. (2) City of South San Francisco CAFR 2010-11 (3) Population: HDL/California State Dept of Finance 2010-112019-20 CITY OF SOUTH SAN FRANCISCO Principal Employers Current Year and Nine Years Ago 166 Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Government (1) 37.00 36.60 36.60 37.60 40.60 47.10 47.10 43.60 41.60 46.60 Fire Department (2)82.48 82.48 82.48 82.98 83.48 92.68 92.68 92.68 91.93 91.68 Police Department 112.65 110.65 115.65 119.75 118.87 120.87 120.87 120.87 122.87 121.87 Park, Rec. & Maintenance Services 116.05 107.86 111.66 117.21 121.31 134.16 137.19 144.29 144.79 151.75 Library 40.81 35.34 35.35 37.66 37.71 38.71 39.26 40.49 41.49 41.49 Economic and Comm. Development 28.95 24.45 23.45 24.40 26.15 27.15 29.40 30.40 30.40 31.40 Public Works (2) 40.05 43.03 45.02 47.21 47.68 49.00 49.00 49.00 53.00 52.00 Water Quality Control Plant 40.64 38.82 38.82 39.63 39.06 41.74 41.50 41.50 41.50 41.50 Total 498.63 479.23 489.03 506.44 514.86 551.41 557.00 562.83 567.58 578.29 Notes: 1.City Manager, City Council, City Treasurer, City Clerk, HR, IT and Finance are under General Government. 2.Oversight of the Code Enforcement has been moved from Fire to Public Works Department. Source: City of South San Francisco's FY2018‐2019 Adopted Operating budget and FY2020 Biennial Operating Budget CITY OF SOUTH SAN FRANCISCO Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years (Adopted Operating Budget) 0.00 100.00 200.00 300.00 400.00 500.00 600.00 700.00 2011 2012 2013 2014 2016 2017 2018 2019 2020 General Government (1)Fire Department (2)Police Department Park, Rec. & Maintenance Services Library Economic and Comm. Development Public Works (2)Water Quality Control Plant 167 2015 2016 2017 2018 2019 2020 Function/Program Public safety: Fire: Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 Police: Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 Law violations: Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 Physical arrests (adult and juvenile) 1,933 2,071 1,870 1,891 1,943 1,871 Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 Public works Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 Potholes repaired (square miles prior)/(square feet) 0.11 2 0 (3) 3221 410 190 Asphalt used for street repairs (tons) 250 151 94 148 13 46 Culture and recreation: Recreation class participants (1)26,879 23,399 23,939 25,688 23,394 17,333 Library: Total items borrowed 643,630 565,806 558,106 544,059 582,497 (4) 450,637 Items in collection 130,106 (2) 208,400 209,895 219,114 228,224 247,393 Wastewater Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 Other connections 128 131 140 140 140 140 Average daily sewage treatment (millions of gallons) 8.89 7.92 8.41 8.62 8.62 7.12 Note: N/A denotes information not available. (1) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2011-2015 did not. (2) New items added for Grand Library and electronic books are also included. (3) Beginning 2018, pothole repairs will be measured by square feet instead of square miles. (4) Fewer items borrowed in FY2020 due to COVID-19 closures. CITY OF SOUTH SAN FRANCISCO Operating Indicators by Function/Program Last Six Fiscal Years 168 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function/Program Public safety: Fire stations 5555555555 Police stations (2)1111111111 Police Fleet 52 51 51 50 53 53 52 59 63 60 Public works Miles of streets 127 127 127 127 127 127 127 127 127 127 Street lights (5) 4,160 4,160 4,505 4,505 4,505 4,505 4,505 4,531 4,531 4,531 Parking District lights (6) 20 20 20 20 20 20 16 16 16 16 Traffic Signals 74 74 74 74 74 76 76 76 76 76 Culture and recreation: Community services: City parks 28 28 28 28 28 28 28 28 28 28 City parks acreage 190 190 190 190 190 190 190 190 210 210 Playgrounds (7) 24 24 24 24 24 24 24 24 24 34 City trails 6666666666 Community gardens 1111111111 Community centers 4444444444 Senior centers (3)1111111111 Skate Park (4)1111111111 Dog park (4)1111111111 Swimming pools 1111111111 Tennis courts 7777777777 Basketball Courts 12 12 12 12 12 12 12 12 12 12 Baseball/softball diamonds11111111111111111111 Soccer/football fields 5555555555 Library: City Libraries (1)2222222222 Wastewater Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164 Miles of storm sewers 125 125 125 125 125 125 125 125 125 125 Number of treatment plants 1111111111 Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance (1) Community Learning Center not included on count as it is only a homework center not a library. (2) Year 2012 the Police substation located behind Miller parking garage is not included. (3) The only senior center is Magnolia Center but programming still continues at El Camino. (4) Year 2010, Skate park and dog park was added on the list. (5) Year 2013- Includes all lights in SSF billed as LS-2 from PG&E. (6) Year 2017- Lot 6 sold for Rotary Plaza development. (7) Year 2020 -Playgrounds in the Common Greens areas are now included. CITY OF SOUTH SAN FRANCISCO Capital Asset Statistics by Function/Program Last Ten Fiscal Years 169 2017 2018 2019 2020 Transient Occupancy Tax Detail 13% TOT collected $12,256,007 $12,580,680 $15,535,213 $15,591,459 1% Measure I Special Tax 1,361,779 1,397,853 1,556,009 1,114,911 Total TOT Collection $13,617,786 $13,978,533 $17,091,222 $16,706,371 1% Measure I Special Tax Use Police $272,356 $279,571 $311,202 $222,982 Fire 272,356 279,571 311,202 222,982 Library 272,356 279,571 311,202 222,982 Parks 272,356 279,571 311,202 222,982 Recreation 272,356 279,571 311,202 222,982 Total 1% Measure I Special Tax $1,361,780 $1,397,853 $1,556,009 $1,114,911 * Note: The current TOT consists of three components - a 9% general excise tax (Measure FF) that generates General Fund revenues; a 1% special tax (Measure I- effective January 1, 2005) was earmarked for use to supplement funding parks, recreation, library, and public safety services (SSFMC 4.20.033) and a $2.50 tax devoted to the acquisition, renovation, maintenance and operation of the South San Francisco Conference Center. The City Council last increased the total TOT rate from 9% to 10% in 2009 with the incremental 1% increase being a general tax. City's TOT rate from 10% to 12% effective January 1, 2019. A subsequent 2% increase over the next two years would revise the TOT rate to 13% (effective January 1, 2020) and 14% (effective January 1, 2021). CITY OF SOUTH SAN FRANCISCO Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I * Miscellaneous Information Last Four Fiscal Years 170 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-101 Agenda Date:2/10/2021 Version:1 Item #:12. Closed Session: Conference with Legal Counsel - Anticipated Litigation (Pursuant to Government Code section 54956.9(d)(4)) Initiation of Litigation: Three potential cases (Sky Woodruff, City Attorney and Mike Futrell, City Manager) City of South San Francisco Printed on 2/5/2021Page 1 of 1 powered by Legistar™