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02.23.22@600 Regular CC
Wednesday, February 23, 2022 6:00 PM City of South San Francisco P.O. Box 711 South San Francisco, CA Municipal Services Building, Council Chambers 33 Arroyo Drive, South San Francisco, CA City Council Regular Meeting Agenda HYBRID IN-PERSON/VIRTUAL MEETING February 23, 2022City Council Regular Meeting Agenda HYBRID IN-PERSON/VIRTUAL MEETING NOTICE 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 Addiego, Vice Mayor Nicolas and Mayor Nagales and essential City staff may 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. The City Council may meet by teleconference, consistent with the Brown Act as amended by AB 361 (2021). Under the amended rules, the City will not provide a physical location for members of the public to participate in the teleconference meeting. American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South San Francisco, CA 94080, or email at all-cc@ssf.net. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 72-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at all-cc@ssf.net, 72-hours before the meeting. Notification in advance of the meeting will enable the City of South San Francisco to make reasonable arrangements to ensure accessibility to the meeting. Page 2 City of South San Francisco Printed on 3/16/2022 February 23, 2022City Council Regular Meeting Agenda ZOOM LINK BELOW -NO REGISTRATION REQUIRED Join Zoom meeting https://ssf-net.zoom.us/j/86729876002 (Enter your email and name) Join by One Tap Mobile : US: +16699006833,,86729876002# or +12532158782,,86729876002# Join by Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 346 248 7799 or +1 669 900 6833 or 833 548 0276 (Toll Free) Webinar ID: 867 2987 6002 How to observe the Meeting (no public comment): 1) Local cable channel: Astound, Channel 26 or Comcast, Channel 27 2) https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council How to submit written Public Comment before the City Council Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting via the eComment tab by 4:00 p.m. on the meeting date. Use the eComment portal by clicking on the following link : https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments are also directly sent to the iLegislate application used by City Council and staff. How to provide Public Comment during the City Council Meeting: 1) By Phone: (669) 900-6833. Webinar ID is 867 2987 6002. Click *9 to raise a hand to speak. Click *6 to unmute when called. By One tap mobile: US: +16699006833,,86729876002# or +12532158782,,86729876002# 2) Online at: https://ssf-net.zoom.us/j/86729876002 a. Enter an email address and name. The name will be visible online and will be used to notify you that it is your turn to speak. b. When the Clerk calls for the item on which you wish to speak, click on "raise hand." Speakers will be notified shortly before they are called to speak. c. When called, please limit your remarks to the time limit allotted. IN-PERSON: Please complete a Digital Speaker Card located at the entrance to the Council Chamber ’s. Be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. Page 3 City of South San Francisco Printed on 3/16/2022 February 23, 2022City Council Regular Meeting Agenda PEOPLE OF SOUTH SAN FRANCISCO The City Council's regular meetings are held on the second and fourth Wednesday of each month at 6:00 p.m. MARK NAGALES, Mayor (District 2) BUENAFLOR NICOLAS, Vice Mayor (At-Large) JAMES COLEMAN, Councilmember (District 4) EDDIE FLORES, Councilmember (At-Large) MARK ADDIEGO, 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 a regular meeting will be made available for public inspection in the City Clerk’s Office located at City Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080. Page 4 City of South San Francisco Printed on 3/16/2022 February 23, 2022City Council Regular Meeting Agenda CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW ANNOUNCEMENTS FROM STAFF PRESENTATIONS Proclamation celebrating February as National Youth Leadership Month. (Mark Nagales, Mayor) 1. Proclamation recognizing Merck’s Carbon Zero success. (Mark Nagales, Mayor)2. Certificate celebrating the 40th anniversary of the Basque Cultural Center. (Mark Nagales, Mayor) 3. PUBLIC COMMENTS Submitted Public Comments Comments received by the deadline will be included as part of the meeting record but will not be read aloud during the meeting. The Public Comment portion of the meeting is reserved for persons wishing to address the Council on any matter NOT on the agenda. Comments on agenda items will be taken when that item is called. If joining the conference by phone you may raise your hand by dialing *9 and *6 to unmute. State law prevents Council from responding to public comments or taking action on matters not on the agenda . The Council may refer comments to staff for follow -up. Speakers are limited to three minutes. If there appears to be a large number of speakers, the Mayor may reduce speaking time to limit the total amount of time for public comments (Gov. Code sec. 54954.3.(b)(1).). Speakers that are not in compliance with the City Council's rules of decorum will be muted. COUNCIL COMMENTS/REQUESTS Motion to approve the Minutes for the meetings of February 9, 2022.4. Report regarding a resolution authorizing the acceptance of $32,428 in San Mateo County Measure K funds via the Peninsula Library system to support the Library’s Summer Learning Challenge 2022, and approving Budget Amendment 22.049. (Valerie Sommer, Library Director) 5. Page 5 City of South San Francisco Printed on 3/16/2022 February 23, 2022City Council Regular Meeting Agenda Resolution authorizing the acceptance of $32,428 in San Mateo County Measure K funds via the Peninsula Library system to support the Library’s Summer Learning Challenge 2022, and approving Budget Amendment 22.049. 5a. Report regarding a resolution approving the filing of a grant application for the State of California’s Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development, and acceptance of grant funding if awarded. (Greg Mediati, Director of Parks and Recreation) 6. Resolution approving the filing of a grant application for the State of California’s Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development, and acceptance of grant funding if awarded. 6a. Report regarding a resolution authorizing the acceptance of $50,000 in grant funding from Genentech to support City Hall’s 101st Birthday Concert which was held on September 25, 2021, and amending the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046. (Ashley Crociani, Policy Analyst) 7. Resolution authorizing the acceptance of $50,000 in grant funding from Genentech to support City Hall’s 101st Birthday Concert which was held on September 25, 2021, and amending the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046. 7a. Report regarding a resolution amending an existing services agreement with Bigbelly Solar, LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease, software, and installation of ten (10) additional dual-stream trash and recycling receptacles, with a term end date of November 3, 2025. (Marissa Garren, Management Analyst I) 8. Resolution amending an existing services agreement with Bigbelly Solar, LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease, software, and installation of ten (10) additional dual-stream trash and recycling receptacles, with a term end date of November 3, 2025 8a. Report regarding a resolution to continue conducting City Council and advisory body meetings remotely due to health and safety concerns for the public and making related findings (Sky Woodruff, City Attorney) 9. Resolution of the City Council of the City of South San Francisco declaring the continuing need for the City legislative bodies to meet remotely in order to ensure the health and safety of the public and making related findings. 9a. Page 6 City of South San Francisco Printed on 3/16/2022 February 23, 2022City Council Regular Meeting Agenda Report regarding a resolution awarding a construction contract to Golden Bay Construction, Inc. of Hayward, California for the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (No. TR2001, Bid No. 2655) in an amount not to exceed $167,756, authorizing a total construction contract authority budget of $201,307, and authorizing the City Manager to execute the agreement on behalf of the City. (Jeffrey Chou, Associate Civil Engineer) 10. Resolution awarding a construction contract to Golden Bay Construction, Inc. of Hayward, California for the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (No. TR2001, Bid No. 2655) in an amount not to exceed $167,756, authorizing a total construction contract authority budget of $201,307, and authorizing the City Manager to execute the agreement on behalf of the City. 10a. Report regarding an ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Commission on Equity and Public Safety (Sky Woodruff, City Attorney, and Amy Ferguson, Management Fellow) 11. Ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Commission on Equity and Public Safety 11a. PUBLIC HEARING Report regarding a fourth public hearing to receive a report from the city’s demographer, National Demographic Corporation (NDC) regarding the redrawing of district maps for the City of South San Francisco. (Rosa Govea Acosta, City Clerk and Kristen Parks, National Demographics Corporation) 12. ADMINISTRATIVE BUSINESS Report regarding the Annual Comprehensive Financial Report for fiscal year ended June 30, 2021, mid-year update for fiscal year ending June 30, 2022, and additional appropriation considerations. (Janet Salisbury, Director of Finance) 13. Resolution approving the Annual Comprehensive Financial Report for fiscal year ended June 30, 2021, mid-year update for fiscal year ending June 30, 2022, and additional appropriation considerations. 13a. Report regarding awarding a construction contract to MCK Services, Inc. for the 2022 West Pavement Rehabilitation Project (No. st2204, Bid No. 2664) in an amount not to exceed $9,479,132.30, authorizing a total construction contract authority budget of $10,479,132.30. (Angel Torres, Senior Civil Engineer) 14. Page 7 City of South San Francisco Printed on 3/16/2022 February 23, 2022City Council Regular Meeting Agenda Resolution awarding a construction contract to MCK Services, Inc. of Martinez, California for the 2022 West Pavement Rehabilitation Project (No. st2204, Bid No. 2664) in an amount not to exceed $9,479,132.30, authorizing a total construction contract authority budget of $10,479,132.30, and authorizing the City Manager to execute the agreement on behalf of the City. 14a. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS City Council to confirm by motion the re-appointment of City Manager Mike Futrell to the Colma Creek Citizens Advisory Committee for another 4-year term. Current second term expires March 31, 2022. (Mike Futrell, City Manager) 15. ADJOURNMENT Page 8 City of South San Francisco Printed on 3/16/2022 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-98 Agenda Date:2/23/2022 Version:1 Item #:1. Proclamation celebrating February as National Youth Leadership Month.(Mark Nagales, Mayor) City of South San Francisco Printed on 2/18/2022Page 1 of 1 powered by Legistar™ Dated: February 23, 2022 RECOGNITION OF FEBRUARY AS YOUTH LEADERSHIP MONTH February 23, 2022 WHEREAS, the City of South San Francisco is home to approximately 12,163 children; and WHEREAS, the City of South San Francisco currently has approximately 9,056 school-age children whose voices provide important prospective to those of us who lead; and WHEREAS, our youth’s success is our future success; and youth leadership and mentor programs are proven to impact scholastic success; and WHEREAS, the City of South San Francisco Government, community partners and organizations acknowledge the value of the youth perspective on community initiatives and are looking to support all youth who will lead in the future; and WHEREAS, the City of South San Francisco recognizes that leadership experiences provide youth with opportunities to actively serve as steward citizens within their community and develop valuable job skills like teamwork, collaboration, project management, program creation and leadership; and WHEREAS, youth leaders can truly help shape the future of their community and school; and WHEREAS, youth are stewards of the future and can lead by providing new ideas on community initiatives like sustainability, collaboration and collective action. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby proclaim February as Youth Leadership Month. ________________________________ Mark Nagales, Mayor ________________________________ Buenaflor Nicolas, Vice Mayor ________________________________ Mark Addiego, Councilmember ________________________________ James Coleman, Councilmember ________________________________ Eddie Flores, Councilmember Government Code Section 54957.5 SB 343 Agenda: 2/23/2022 Reg CC Item #1 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-97 Agenda Date:2/23/2022 Version:1 Item #:2. Proclamation recognizing Merck’s Carbon Zero success.(Mark Nagales, Mayor) City of South San Francisco Printed on 2/18/2022Page 1 of 1 powered by Legistar™ Dated: February 23, 2022 RECOGNITION OF MERCK’S CARBON ZERO SUCCESS February 23, 2022 WHEREAS, Merck is committed to a healthy, sustainable, and regenerative future, one that enhances the health and wellbeing of building occupants and all of humanity; and WHEREAS, Merck Research Laboratories in South San Francisco is a perfect example of Merck’s design and operational ethos – ensuring that new buildings and major retrofits follow an internal engineering standard to “build-in” sustainability from the start; and WHEREAS, Merck went over-and-above the standard LEED certification in South San Francisco to achieve LEED Zero Carbon and Energy – new frameworks from the U.S. Green Building Council to recognize building net-zero performance; and WHEREAS, this certification covers building greenhouse gas emissions as well as emissions from employee transportation to and from the site; and WHEREAS, energy modeling during design predicted it to be 23% more efficient than a conventional lab building, however it is actually 35% more efficient in practice thus far and uses 40% less water; and WHEREAS, the South San Francisco Research Facility reduces Merck’s operational footprint, but just as importantly, it sends a powerful and visible message regarding the importance of Environmental, Social and Governance within the company. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby recognize Merck Research Laboratories with their fulfillment of the requirements of LEED Zero Energy certification as verified by Green Business Certification, Inc. ________________________________ Mark Nagales, Mayor ________________________________ Buenaflor Nicolas, Vice Mayor ________________________________ Mark Addiego, Councilmember ________________________________ James Coleman, Councilmember ________________________________ Eddie Flores, Councilmember Government Code Section 54957.5 SB 343 Agenda: 2/23/2022 Reg CC Item #2 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-132 Agenda Date:2/23/2022 Version:1 Item #:3. Certificate celebrating the 40th anniversary of the Basque Cultural Center.(Mark Nagales, Mayor) City of South San Francisco Printed on 2/18/2022Page 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 #:22-148 Agenda Date:2/23/2022 Version:1 Item #: Submitted Public Comments City of South San Francisco Printed on 2/23/2022Page 1 of 1 powered by Legistar™ in a traffic lane with a 40 mph speed limit Many times we are almost rear ended The frustrated drivers waiting behind us honk, swear and finger point us to move out of the way. Thanks to Town of Colma putting a No Turn On Red sign from Lawndale to Hillside That helps us by slowing down the cars coming up on Lawndale and turning right. The problem is that 50% of drivers do not obey the sign When the road diet project is finished, there will be 2 continuous miles of one lane in each direction from Serramonte to Chestnut with no way for impatient drivers to get around slow moving cars The only place for eastbound traffic to pass will be through the intersection of Lawndale and Hillside and along the bike lane and stripping buffer in front of our neighbor’s houses and our house We are afraid South City is creating a condition more dangerous than the present situation where traffic has two eastbound lanes. My husband and I appreciate the work Jeff Chou is doing on the road diet project and eliminating the proposed merger lane in front of our house that creates its own dangerous conditions. One solution is to install bump outs or a barricade on Hillside at Lawndale to prevent eastbound traffic from trying to pass across the bike lane and stripping buffer in front of our neighbors’ houses and our house Another solution, and probably the best solution, would be to put a traffic separator in like there is on Hillside between Lincoln and Sister City I know this second solution will be more costly And it will create a safe neighborhood environment for the nearly 100 people in South City who live on this dangerous stretch of Hillside Thank you City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-129 Agenda Date:2/23/2022 Version:1 Item #:4. Motion to approve the Minutes for the meetings of February 9, 2022. City of South San Francisco Printed on 2/25/2022Page 1 of 1 powered by Legistar™ CALL TO ORDER Mayor Nagales called the meeting to order at 5:30 p.m. ROLL CALL Councilmember Addiego, present * Councilmember Coleman, present – joined the meeting at 5:35 p.m. Councilmember Flores, present Vice Mayor Nicolas, present Mayor Nagales, present *For purposes of these minutes Successor Agency Member titles are assumed in the reference to Councilmembers titles and all actions and discussions are on behalf of the Council and Successor Agency in a joint capacity. AGENDA REVIEW No changes. PUBLIC COMMENTS – comments are limited to items on the Joint Special Meeting. The following individuals provided public comment via eComment including ten guest users: • Rick J. • Celeste Perez • Daniel Perez • David Ceballos • Daniel Perez The following individuals provided public comment: • Russell • Olga Perez • Hermes Monzon • Tom Carney MINUTES JOINT SPECIAL MEETING CITY COUNCIL AND SUCCESSOR AGENCY CITY OF SOUTH SAN FRANCISCO WEDNESDAY, FEBRUARY 9, 2022 5:30 p.m. Teleconference via Zoom The City Council may meet by teleconference, consistent with the Brown Act as amended by AB 361 (2021. Under the amended rules, the City will not provide a physical location for members of the public to participate in the teleconference meeting. JOINT SPECIAL MEETING CITY COUNCIL AND SUCCESSOR AGENCY FEBRUARY 9, 2022 MINUTES PAGE 2 ADMINISTRATIVE BUSINESS 1. Report regarding the Successor Agency disposition and City acquisition of the former Redevelopment Agency properties at 616 and 700 Linden Avenue for $1,660,000. (Deanna Talavera, Management Analyst II) 1a. Resolution No. 16-2022 appropriating $1,660,000 through Budget Amendment number 22.048 for the allocation of funds to pay the Taxing Entities to retain control of the former Redevelopment Agency properties at 616 and 700 Linden Avenue for the purpose of constructing a park. Management Analyst Talavera presented the report and provided an overview of the proposed disposition and acquisition of former Redevelopment Agency properties at 616 and 700 Linden Avenue. The plot at 616 Linden Avenue measures 100 feet by 140 feet and is zoned Downtown Mixed Use. The land is currently used as a 20-space metered parking lot. In 1997, the agency paid $325,000 for the property. A Quonset hut-style building, and an automotive repair shop were the only structures on the property at the time. The lot at 700 Linden Avenue is a 14,000-square-foot site that is 100 feet by 140 feet and is also zoned Downtown Mixed Use. The Agency bought the property for $315,000 in 1998 with the idea of using it as neighborhood parking. The parcel is now open green space. According to the Long-Range Property Management Plan ("LRPMP") and California Health and Safety Code section 34191.5 (c)(2)(A)(i), the Properties were transferred to the City for disposition in accordance with the LRPMP. According to the LRPMP, the highest and best use for the properties at 616 and 700 Linden Avenue is high density housing. Section 34177(e) of the Health and Safety Code mandates that former redevelopment agency properties be sold "as quickly as possible" and in a way that "maximizes value." In the past when disposing of other properties on the LRPMP, the City has sought approval of the sales price from the County of San Mateo Countywide Oversight Board, which is comprised of representatives from the Taxing Entities, and it intends to do so here as well. The City monies allocated to keep the Properties for development as parks will be dispersed to the Taxing Entities in the following percentages, assuming approval by the Oversight Board: Taxing Entity Percentage of Proceeds South San Francisco Unified School District 43.9% San Mateo County 25.7% City of South San Francisco 16.7% SMC Community College District 7.3% Other 6.4% In the City's existing Housing Element, the above properties have been identified as housing opportunity locations. The City will have to find other acceptable sites to replace the Properties if they are developed as a park. If the Properties are developed as a park, this re-designation will be dealt with during the next Housing Element cycle. JOINT SPECIAL MEETING CITY COUNCIL AND SUCCESSOR AGENCY FEBRUARY 9, 2022 MINUTES PAGE 3 Budget Amendment number 22.048 requests that the City Council authorize spending $1,660,000 from the Parks Acquisition Fund (Fund 805) to pay for the preservation of 616 and 700 Linden Avenues. The real cost to the City, if accepted by the Oversight Board, would be $1,382,780, because the City is entitled to a 16.7% share (or approximately $277,220) of the net profits from the transaction. Councilmember Addiego requested clarification on the purchase price of the property and funding. Acting Deputy Director of Economic and Community Development Barnard provided an overview of the acquisition process and cost. City Manager Futrell indicated that $1.1 million funding comes from developer and impact fees. Councilmember Flores expressed his support of the acquisition of these sites noting the benefits to the community and their quality of life. Vice Mayor Nicolas also voiced support and concurred with Councilmember Flores. Councilmember Coleman expressed his support and noted the importance of open space for the community. Mayor Nagales expressed his support and the benefits to the community for future open space by reinvesting funds into the community. He requested that staff respond to community member Carney’s inquiry. Motion – Councilmember Addiego / Second - Councilmember Coleman: To adopt City Council Resolution No. 16-2022 and Successor Agency Resolution No. 01-2022 appropriating $1,660,000 through Budget Amendment number 22.048 for the allocation of funds to pay the Taxing Entities to retain control of the former Redevelopment Agency properties at 616 and 700 Linden Avenue for the purpose of constructing a park, by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nicolas, and Mayor Nagales; NAYS: None; ABSENT: None; ABSTAIN: None. ADJOURNMENT Being no further business Mayor Nagales adjourned the meeting at 5:58 p.m. Submitted by: Approved by: Rosa Govea Acosta, MMC, CPMC Mark Nagales City Clerk Mayor Rosa Govea Acosta, MMC, CPMC Mark Nagales City Clerk Chair Approved by the City Council: / / CALL TO ORDER Mayor Nagales called the meeting to order at 6:00 p.m. ROLL CALL Councilmember Addiego, present Councilmember Coleman, present Councilmember Flores, present Vice Mayor Nicolas, present Mayor Nagales, present AGENDA REVIEW No changes. ANNOUNCEMENTS FROM STAFF City Manger Futrell informed the community that COVID vaccines continue to be available and noted that following free COVID testing sites: 616 Linden Avenue (Monday-Saturday) registration requested, but not required. Mobile testing clinic at Mater Dolorosa Church on Monday’s. Member of the public can view additional information on the city’s website at ssf.net. PRESENTATIONS 1. Presentation on Teen Internship Program at the Community Learning Center (Karla Bourdon, Literacy Services Program Manager) Literacy Services Coordinator Mary Ann Cordova presented the report and provided an overview of the program. Library Assistant Michelle Velazquez shared her experiences and noted the program's benefits. She indicated that the program is comprised of 30 teens who assist elementary students by providing 1500 hours of enrichment activities. Mayor Nagales congratulated the team for their work and the positive impacts the program will leave for children of the community. Councilmember Coleman acknowledged the benefits of the program and congratulated staff for their work and commitment to the community. Vice Mayor Nicolas noted the importance of the program and requested clarification on recruitment efforts. Literacy Services Coordinator Cordova provided an overview of recruitment and indicated MINUTES REGULAR MEETING CITY COUNCIL CITY OF SOUTH SAN FRANCISCO WEDNESDAY, FEBRUARY 9, 2022 6:00 p.m. Teleconference via Zoom The City Council may meet by teleconference, consistent with the Brown Act as amended by AB 361 (2021. Under the amended rules, the City will not provide a physical location for members of the public to participate in the teleconference meeting. REGULAR CITY COUNCIL MEETING FEBRUARY 9, 2022 MINUTES PAGE 2 that the internship program was grant-funded and would end in March 2022, aligning with school semester schedules. Literacy Services Program Manager Bourdon indicated that staff would be reapplying for grant funding. Vice Mayor Nicolas encouraged staff to collaborate with the South San Francisco Youth Commission to enhance the program and solicit feedback. 2. Proclamation honoring February as Black History Month. (Mark Nagales, Mayor) Mayor Nagales read into the record a proclamation honoring February as Black History Month. Housing Authority Commissioner Luis Mercado accepted the proclamation on behalf of the community and thanked Council for the recognition. 3. Proclamation celebrating Lunar New Year February 1 - 15, 2022. (Mark Nagales, Mayor) Mayor Nagales read into the record a proclamation celebrating Lunar New Year. Dr. Chialin Hsieh, South San Francisco Unified School District Trustee, accepted the proclamation on behalf of the community. PUBLIC COMMENTS The following individuals provided public comment: • Denton Murphy COUNCIL COMMENTS Councilmember Coleman discussed the possible banning of wood-burning fireplaces due to resident complaints about air quality. He asked that staff agendize a future discussion item for Council to consider amending the city's Reach Codes. Vice Mayor Nicolas informed the community of the Peninsula Clean Energy Residential programs and rebates available. She encouraged members to visit the website for additional information at https://www.peninsulacleanenergy.com. She requested to adjourn the meeting in memory of Florencio Lozano and Mercedes Silva. Councilmember Addiego apprised the Council and the community of recent discussions of the SFO Airport Roundtable group and possible rerouting of the current flight path from 12 - 5 a.m. to alleviate airport noise - matter to continue for further discussion. Councilmember Flores noted that the San Mateo County Board of Supervisors approved $2 million towards mental health initiatives for the county's vulnerable population. He announced that the city would provide training in mental health for adults and teenagers and welcomed partnerships with other agencies to provide the best support to the community. He requested a pre-check qualification process for new development projects to ensure the projects meet essential components as mentioned by union advocates and suggested that staff agendize the topic for Council's consideration. City Manager Futrell indicated that he would provide a Thursday memo to Council with the current process, solicit feedback from Council, and explore future improvements. Mayor Nagales acknowledged the need to revisit the current pre-qualification process and further discussion. REGULAR CITY COUNCIL MEETING FEBRUARY 9, 2022 MINUTES PAGE 3 CONSENT CALENDAR The City Clerk duly read the Consent Calendar, after which Council voted and engaged in discussion of specific item as follows. Item No. 4 was pulled by Vice Mayor Nicolas for further discussion. 4. Motion to approve the Minutes for the meetings of January 26, 2022. 5. Report regarding Resolution No. 17-2022 accepting $216,885 from the California Department of Justice for the Tobacco Grant Program (Proposition 56) to be used for personnel overtime, equipment, and training expenses and amend the Police Department’s Operating Budget for Fiscal Years 2021-2025 by approving Budget Amendment 22.045. (Amy Sariotti, Police Sergeant) 6. Report regarding Resolution No. 18-2022 approving an amendment to administrative, plan check, and inspection services agreements with CSG Consultants, Inc. and West Coast Code Consultants, Inc. in an amount not to exceed $1,000,000 per fiscal year for an additional two years and authorizing the City Manager to execute agreements on behalf of the city. (Jason Hallare, Senior Civil Engineer) 7. Report regarding Resolution No. 19-2022 authorizing the City Manager to enter into a purchasing agreement with Stryker Medical in the amount of $231,028.05 for five Stryker PowerPro 6506 Gurney’s, three Stryker Stair-Chairs, and seven Lucas Cardiac Arrest Compression Devices; and approving budget amendment 22.047 to the Fire Department operating budget in the amount of $58,617.00 and authorizing use of Public Safety Impact fee funds in the amount of $10,075.05 for purchase of these devices.(Richard Walls, Emergency Medical Services Chief) 8. Report regarding Resolution No. 20-2022 accepting quitclaims of a small piece of real property for the Community Civic Campus Project and authorizing the City Manager to execute certificates of acceptance (Jacob Gilchrist, Director of Capital Projects, and Sky Woodruff, City Attorney) 9. Report regarding Resolution No. 21-2022 authorizing the City Manager to enter into an agreement between the City and County of San Francisco for the distribution of FY 2021 Urban Area Security Initiative (UASI) grant funds in the amount of $80,647 for the purchase of technical rescue equipment and power units for Rescue Boat 62 and approving budget amendment 22.040 to the Fire Department operating budget in the amount of $80,647. (Jesus Magallanes, Fire Chief) Item No. 4: Vice Mayor Nicolas requested clarification on the minutes presented and noted that Consent Calendar Item No. 5 was postponed. City Clerk Govea Acosta stated that the item was pulled and was excluded from the Council’s motion and referenced in the minutes. Motion — Councilmember Addiego /Second – Vice Mayor Nicolas: To approve Consent Calendar Items 4 - 9, by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nicolas, and Mayor Nagales; NAYS: None; ABSENT: None; ABSTAIN: None. ADMINISTRATIVE BUSINESS 10. Report regarding Resolution No. 22-2022 awarding a construction contract to Interstate Grading and Paving, Inc. of South San Francisco, California for the Orange Memorial Park Sports Field project (Project No. pk1402) in an amount not to exceed $10,515,000.00, REGULAR CITY COUNCIL MEETING FEBRUARY 9, 2022 MINUTES PAGE 4 authorizing a total construction budget of $11,566,500.00, and authorizing the City Manager to execute agreements on behalf of the City. (Philip Vitale, Deputy Director of Capital Projects) Deputy Director of Capital Projects Philip Vitale presented the report and provided an overview of the project. Mayor Nagales inquired about the project design. Craig Caron, President of Interstate Grading & Paving, provided an overview of the project. Vice Mayor Nicolas noted the importance of the project and inquired about soliciting input from the SSF Police Activities League members and the project completion date. Deputy Director of Capital Projects Vitale indicated that staff would reach out to PAL members to engage in future conversations and collaboration. The project is on target for completion by 2023. Councilmember Addiego acknowledged the complexity of the project and noted the project benefits. Motion – Vice Mayor Nicolas / Second - Councilmember Addiego: To approve Resolution Resolution No. 22-2022 awarding a construction contract to Interstate Grading and Paving, Inc. of South San Francisco, California for the Orange Memorial Park Sports Field project (Project No. pk1402) in an amount not to exceed $10,515,000.00, authorizing a total construction budget of $11,566,500.00, and authorizing the City Manager to execute agreements on behalf of the City, by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nicolas, and Mayor Nagales; NAYS: None; ABSENT: None; ABSTAIN: None. 11. Report regarding adoption of Resolution No.23-2022 for stationary Automatic License Plate Readers (ALPR) cameras at the entrance/exit ramps of Highway 101 and Interstate 380, Interstate 280, and/or intersections between South San Francisco and neighboring cities. (Maryjo Nuñez, Lead for America Fellow, City Manager ’s Office) Lead for America Fellow Maryjo Nunez and Police Chief Campbell presented the report and provided an overview of the Law Enforcement process, including transparency. Management Fellow Nunez highlighted privacy considerations addressing Council's previous concerns. Vice Mayor Nicolas requested clarification about the program's efficiency in detecting stolen plates and audits. Mayor Nagales inquired about the temporary paper plates placed on new cars. Police Chief Campbell provided an overview of the program and noted the information entered into the system and officer protocols. In response to Vice Mayor Nicolas's inquiry about audits, the city owns the data and would be responsible for conducting audits. He also noted that staff could hire a third-party vendor to perform the audit if Council preferred. Councilmember Flores expressed his concern with the unintended consequences of implementing such a program and noted his research findings. He supports Option 2 and quarterly program audits with two essential components: network and organizational audits. He discussed Senator Wiener's License Plate Privacy Act legislation that would require data deletion after 24 hours and inquired if a 30-day retention period was a better option. Councilmember Flores requested clarification about data sharing and expressed his support of restricting access to the city's data to protect vulnerable community members and asking agencies to sign a confidentiality clause if data is pulled. Police Chief Campbell noted that 30-day retention would assist officers and provided an overview of the REGULAR CITY COUNCIL MEETING FEBRUARY 9, 2022 MINUTES PAGE 5 importance of mutual agency data sharing for legitimate law enforcement purposes. The consultant could incorporate the privacy language requested into the city's portal if needed. Councilmember Coleman expressed his support of quarterly audits to ensure accountability and requested clarification on data tracking. Police Chief Campbell indicated that local and state law prevents officers from sharing data with federal agencies and indicated that all data retrieval is tracked. Councilmember Addiego noted his concerns about the program but expressed support due to the rise in crime. Mayor Nagales noted his support of option two and requested clarification on the program, including costs. Management Fellow Nunez provided an overview of their programs and cost. City Manager Futrell provided an overview of Senator Wiener's SB 210, License Plate Privacy Act. If approved, Mayor Nagales noted that the City of South San Francisco would be the first to implement such a program. Councilmember Flores inquired about facial recognition through the program and the placement of cameras. Police Chief Campbell indicated that there is no facial recognition in the system, and cameras are installed to read the rear of the plates only. City Attorney Woodruff indicated that Council could approve the resolution with amendments to allow staff to move forward with the program. City Manager Futrell stated that the team would return for Council approval once the vendor is selected. Councilmember Flores stated a motion to support option two with quarterly program audits with two essential components: network and organizational audits for the initial two-year contract. Motion – Councilmember Flores / Second – Vice Mayor Nicolas: To adopt Resolution No.23-2022 for stationary Automatic License Plate Readers (ALPR) cameras at the entrance/exit ramps of Highway 101 and Interstate 380, Interstate 280, and/or intersections between South San Francisco and neighboring cities, with amendments, by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nicolas, and Mayor Nagales; NAYS: None; ABSENT: None; ABSTAIN: None. 12. Report regarding an ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Community Equity and Safety Advisory Board (Sky Woodruff, City Attorney, and Amy Ferguson, Management Fellow) Management Fellow Ferguson presented the report and noted that the Equity Board is central to Action Plan and further equity across the city. She provided an overview of the goals and activities, and the board review functions and process—the recommended composition for the board seven board members and one alternate. Members would be appointed by the City Council (one per council member, two at-large), serving four-year terms and two-year staggered terms. Vice Mayor Nicolas expressed the importance of inclusion and diversity and requested clarification on the proposed two and four-year staggered terms. City Manager Futrell provided clarification and suggested terms should align with Councilmembers' terms. Councilmember Addiego shared his concerns and noted the importance of selecting candidates to serve on the board and having the authority to remove members who do not align with the board's vision. Mayor Nagales supports Council's ability to remove a member if needed. Councilmember Flores requested clarification on the removal of members by the Council. Councilmember Addiego clarified that the Council should have the authority to remove the members they appoint, respectively. REGULAR CITY COUNCIL MEETING FEBRUARY 9, 2022 MINUTES PAGE 6 Councilmember Flores inquired about the board structure, including Chair and Vice Chair roles and appointment process. City Attorney Woodruff noted that the board composition allows for those roles to be filled and are indicated in the ordinance. The appointment process for members "at-large" will be consistent with the city's other advisory bodies. Councilmember Flores requested clarification on the commission's administrative process and staff liaison. City Manager Futrell indicated that his office would oversee the commission, and the commission would provide recommendations to the City Manager, who would then forward them to Council as needed. City Attorney Woodruff clarified that personnel policies are under the authority of the City Manager and not the City Council; therefore, oversight of the commission by the City Manager was appropriate. Councilmember Coleman inquired if the commission would have the authority to review Police Department audits. City Manager Futrell indicated that they would be looking at the data allowed by law. Mayor Nagales requested clarification on the process and the Council's oversight role. City Manager Futrell provided an overview and indicated that no decision within Council's purview would be decided without Council approval. The Council expressed their support of training members and providing adequate staff support. Councilmember Flores noted the importance of having a diverse board that connects with the community and has a pulse to ensure inclusivity. City Attorney Woodruff indicated that staff would amend the ordinance to reflect the Council's desire to appoint and remove members on the Commission on Equity and Public Safety. Motion – Vice Mayor Nicolas / Second – Councilmember Coleman: To introduce and waive further reading of an Ordinance Adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Community Equity and Safety Advisory Board, with amendments, by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nicolas, and Mayor Nagales; NAYS: None; ABSENT: None; ABSTAIN: None. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS None. ADJOURNMENT Being no further business Mayor Nagales adjourned the meeting at 8:23 p.m. in memory of Florencio Lozano and Mercedes Silva. Submitted by: Approved by: Rosa Govea Acosta, MMC, CPMC Mark Nagales 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 #:22-99 Agenda Date:2/23/2022 Version:1 Item #:5. Report regarding a resolution authorizing the acceptance of $32,428 in San Mateo County Measure K funds via the Peninsula Library system to support the Library’s Summer Learning Challenge 2022,and approving Budget Amendment 22.049. (Valerie Sommer, Library Director) RECOMMENDATION It is recommended that the City Council adopt a resolution accepting $32,428 in San Mateo County Measure K funds via the Peninsula Library System to support the Library’s Summer Learning Challenge 2022, and approving Budget Amendment 22.049. BACKGROUND/DISCUSSION The Library has been awarded $32,428 in Measure K funds to support Summer Learning Challenge 2022.In 2013,Measure A,a half-cent sales tax,was approved by San Mateo voters,which included funds to support library summer learning programs.Measure K,approved in 2016,is now the source of funding for these programs.The purpose of summer learning programs is to address summer learning loss among children and teens by focusing on increasing summer reading participation,advancing literacy and academic performance by engaging children,teens and families in reading and enrichment activities,and promoting library use.This funding will be used to fund $31,428 in free book giveaways and a $1,000 scholarship to one lucky Summer Learning Challenge participant.Free books,in Chinese,English,Spanish and Tagalog will be distributed in the Library,at SSFUSD summer lunch programs,to Parks and Recreation summer camp attendees,as well as at other programs and events to be scheduled this summer. FISCAL IMPACT Funds will be used to amend the Library Department’s current fiscal year 2021-2022 Operating Budget via Budget Amendment 22.049.Funds not expended in fiscal year 2021-2022 will be carried over into fiscal year 2022-2023. Receipt of these funds does not commit the City to ongoing funding. RELATIONSHIP TO STRATEGIC PLAN Strengthening of learning programs is an action item in the City’s Strategic Plan under Priority #3:Quality of Life.This funding will allow the Library to encourage and support reading and learning during the summer break. CONCLUSION Receipt of these funds will enable the Library to enhance summer programs and support learning and reading for children and teens.It is recommended that the City Council accept $32,428 in Measure K funding via the Peninsula Library System to support the Library’s Summer Learning Challenge and amend the Library Department’s FY 2021-22 Operating Budget per Budget Amendment 22.049. City of South San Francisco Printed on 2/18/2022Page 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 #:22-100 Agenda Date:2/23/2022 Version:1 Item #:5a. Resolution authorizing the acceptance of $32,428 in San Mateo County Measure K funds via the Peninsula Library system to support the Library’s Summer Learning Challenge 2022,and approving Budget Amendment 22.049. WHEREAS,the annual Summer Learning Challenge program was established to encourage children and teens to read during the school break; and WHEREAS,Measure K half-cent tax increase was passed in 2016 and includes funding to help support library summer learning programs; and WHEREAS,the Library has been awarded $32,428 in San Mateo County Measure K funds via the Peninsula Library System; and WHEREAS,strengthening of learning programs is an action item in the City’s Strategic Plan under Priority #3: Quality of Life; and WHEREAS,funding will be used to fund $31,428 in free book giveaways and a $1,000 scholarship to one Summer Learning Challenge participant; and WHEREAS,free books will be available in Chinese,English,Spanish and Tagalog for distribution in the Library,at SSFUSD summer lunch programs,Parks and Recreation summer camp attendees and other programs; and WHEREAS,staff recommends the acceptance of the donations in the amount of 32,428 to support the 2022 Summer Learning Challenge; and WHEREAS,the Measure K funds will be used to amend Fiscal Year 2022-23 operating budget of the Library Department via Budget Amendment 22.049. NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby accept $32,428 from San Mateo County Measure K funds via the Peninsula Library System to fund the 2022 Summer Learning Challenge,and amend the Library Department’s 2022-2023 Operating Budget in order to reflect an increase of $32,428 via Budget Amendment 22.049. ***** City of South San Francisco Printed on 2/25/2022Page 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 #:22-111 Agenda Date:2/23/2022 Version:1 Item #:6. Report regarding a resolution approving the filing of a grant application for the State of California’s Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development,and acceptance of grant funding if awarded.(Greg Mediati, Director of Parks and Recreation) RECOMMENDATION It is recommended that the City Council adopt a resolution approving the filing of a grant application for the State of California’s Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development, and acceptance of grant funding if awarded. BACKGROUND/DISCUSSION The Land and Water Conservation Fund (LWCF)was established by the United States Congress in 1964 to fulfill a bipartisan commitment to safeguard natural areas,water resources and cultural heritage,and to provide recreation opportunities to all Americans.The fund invests earnings from offshore oil and gas leases to help strengthen communities, preserve history and protect the national endowment of lands and waters. On August 4,2020,the Great American Outdoors Act (GAOA)was signed into law,authorizing $900 million annually in permanent funding for the LWCF.Prior to the passage of the GAOA,funding for the LWCF relied on annual Congressional appropriations. LWCF grants may be administered on behalf of the federal government by state agencies.In this case,the grant administrator is the California Department of Parks and Recreation. Up to $45 million in grant requests will be selected for the current application cycle by the State of California. Grants provide funding for the acquisition or development of land to create new outdoor recreation opportunities for the health and wellness of Californians.Since 1965,over one thousand parks throughout California have been created or improved with LWCF assistance.This funding cycle,acquisition projects have been significantly prioritized over development projects.A 50-percent local agency match is required for all applications. At the February 9,2022 Joint Special Meeting of the City Council and Successor Agency,the City Council authorized staff to move forward with the acquisition of the parcels located at 616 and 700 Linden from the Successor Agency to the Redevelopment Agency for a sale price not to exceed $1,660,000,the appraised value less any environmental cleanup costs. The properties at 616 and 700 Linden Avenue are former Redevelopment Agency properties.The parcel at 616 Linden Avenue consists of a 14,000 square-foot lot zoned for Downtown Mixed Use.The property currently serves as a metered parking lot with 20 parking spaces.The Agency acquired the property in 1997 for $325,000. At that time the lot consisted of a Quonset hut-type building and an automotive repair building. The parcel located at 700 Linden Avenue consists of a 14,000 square-foot lot and is likewise zoned forCity of South San Francisco Printed on 2/18/2022Page 1 of 2 powered by Legistar™ File #:22-111 Agenda Date:2/23/2022 Version:1 Item #:6. The parcel located at 700 Linden Avenue consists of a 14,000 square-foot lot and is likewise zoned for Downtown Mixed Use.The Agency purchased the property in 1998 for $315,000 with the intention of it serving as neighborhood parking.Ultimately,the parcel across the street at 616 Linden was utilized for parking and the parcel at 700 Linden currently serves as open green space. On February 1,staff submitted a grant application for $830,000,50-percent of the appraised land value,to support acquisition of the two parcels.Grants are expected to be awarded in April or May of 2022,aligning with the closing date for the sale of the two parcels. FISCAL IMPACT LWCF grants do require a 50-percent match.For this reason,staff has requested no more than half of the appraised land valuation,$830,000,with the balance of funding being shared by the City.Initially,Park Land Acquisition Fund developer fees were identified for all costs associated with the purchase of the property.If awarded,any savings may be reimbursed into the Park Land Acquisition Fund for other park acquisition projects in South San Francisco. RELATIONSHIP TO STRATEGIC PLAN This item before the City Council supports the City’s Quality of Life strategic goal by providing additional funding for high-quality parks and recreation amenities for residents. CONCLUSION It is recommended that the City Council adopt a resolution approving the filing of a grant application for the State of California’s Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden for parkland development,and acceptance of grant funding if awarded. City of South San Francisco Printed on 2/18/2022Page 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 #:22-112 Agenda Date:2/23/2022 Version:1 Item #:6a. Resolution approving the filing of a grant application for the State of California’s Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development, and acceptance of grant funding if awarded. WHEREAS, at the February 9, 2022 Joint Special Meeting of the City Council and Successor Agency, the City Council authorized City staff to move forward with the acquisition of the parcels located at 616 and 700 Linden from the Successor Agency to the Redevelopment Agency for a sale price not to exceed $1,660,000; and WHEREAS,the Congress under Public Law 88-578 has authorized the establishment of a federal Land and Water Conservation Fund Grant-In-Aid program,providing matching funds to the State of California and its political subdivisions for acquiring lands and developing facilities for public outdoor recreation purposes; and WHEREAS,the California Department of Parks and Recreation is responsible for administration of the Land and Water Conservation Fund Grant-In-Aid program in the State,setting up necessary rules and procedures governing applications by local agencies under the program; and WHEREAS,the City Council now desires to certify by resolution the approval of the application for the State of California’s Land and Water Conservation Fund grant program and the availability of eligible matching funds prior to submission of the application to the State. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby: 1.Approves the filing of an application for Land and Water Conservation Fund assistance for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development, and acceptance of grant funding if awarded. 2.Agrees to abide by Section 6(f)(3)of Public Law 88-578 which states “No property acquired or developed with assistance under this section shall,without the approval of the National Secretary of the Interior,be converted to other than public outdoor recreation uses.The Secretary shall approve such conversion only if he finds it to be in accord with the then existing comprehensive statewide outdoor recreation plan and only upon such conditions as he deems necessary to assure the substitution of other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.” 3.Certifies that the City has matching funds from eligible source(s)and can finance 100 percent of the project, which up to half may be reimbursed. 4.Appoints the City Manager as agent of the applicant to conduct all negotiations and execute and submit all documents,including,but not limited to,applications,contracts,amendments,payment requests,and compliance with all applicable current state and federal laws which may be necessary for the completion of theCity of South San Francisco Printed on 2/25/2022Page 1 of 2 powered by Legistar™ File #:22-112 Agenda Date:2/23/2022 Version:1 Item #:6a. compliance with all applicable current state and federal laws which may be necessary for the completion of the aforementioned project. All contracts and amendments are subject to review and approval by the City Attorney. ***** City of South San Francisco Printed on 2/25/2022Page 2 of 2 powered by Legistar™ Agenda Item 6. 22-111 Report regarding a resolution approving the filing of a grant application for the State of California's Land and Water Conservation Fund grant program for a total award amount not to exceed $830,000 for acquisition of the parcels located at 616 and 700 Linden Avenue for parkland development, and acceptance of grant funding if awarded. (Greg Mediati, Director of Parks and Recreation) Legislation Text 1 Public Comment Olga Perez at February 23, 2022 at 2:54pm PST Support Honorable Mayor Nagales and City Council members, We’re very appreciative in filing of this grant application and sincerely hope it is granted by the State. In reading the legislative text, I truly believe without a doubt, the area of Old Town fulfills the need by which this Fund was set up and appreciate the Fund and Council’s commitment. A new park and playground would not only be beneficial, it is absolutely necessary. Old Town is home to many families with young children, many of whom face barriers (income, language, accessibility, transportation) in recreation and outdoor activities. Senior citizens also do not have a safe space for outdoor gathering and socializing, which is very beneficial for their health. A new park focused on cultural heritage would also strengthen our community in having a sense of belonging and pride and, in turn hopefully, would curb other issues our community faces (i.e. trash). I think only in community can we strengthen Old Town in preserving its history and appreciating its cultural value, while simultaneously, focusing on resident’s safety and well-being in outdoor recreational areas and maintaining it a clean and safe place to live for all. I truly appreciate everyone's thoughtfulness, consideration and time in this grant application. On behalf of my family and Comunidad Inmigrante del Pueblo Viejo, Respectfully, Olga Pérez City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-122 Agenda Date:2/23/2022 Version:1 Item #:7. Report regarding a resolution authorizing the acceptance of $50,000 in grant funding from Genentech to support City Hall’s 101st Birthday Concert which was held on September 25,2021,and amending the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046.( Ashley Crociani, Policy Analyst) RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the acceptance of a grant from Genentech totaling $50,000 to support City Hall’s 101st Birthday Concert which was held on September 25,2021,and amending the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046. BACKGROUND/DISCUSSION On September 7,2021,city staff applied for a $50,000 grant from Genentech to fund City Hall’s 101st Birthday Concert.The objective of this initiative was to bring the community together,build community resilience,and create opportunity for local county resources such as Renaissance and Job Train to showcase their services to the community.Due to its location in the downtown area,the event provided an opportunity to promote South San Francisco small businesses and the Shop Local campaign. On September 8,2021,Genentech approved the funding request for City of South San Francisco’s City Hall Birthday.With this funding the City of South San Francisco will be able to cover part of the costs of the band, marketing and promotional items, and staffing. FISCAL IMPACT Authorizing the acceptance of the $50,000 from Genentech will result in savings to the General Fund. RELATIONSHIP TO STRATEGIC PLAN Acceptance of these funds supports the City’s Strategic Plan under Priority #1,Workforce Development,and Priority #6,Community Connections.Job Train and Renaissance’s participation in the event allowed local small businesses to promote their products and gain exposure.City Hall’s 101st Birthday provided residents the opportunity come together as a community and learn about new resources offered by the City. CONCLUSION Staff recommends that the City Council adopt a resolution authorizing the acceptance of a $50,000 grant from Genentech and amending the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046. The City appreciates the contribution from Genentech,enhancing the City’s mission to foster community pride and understanding. City of South San Francisco Printed on 2/18/2022Page 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 #:22-123 Agenda Date:2/23/2022 Version:1 Item #:7a. Resolution authorizing the acceptance of $50,000 in grant funding from Genentech to support City Hall’s 101st Birthday Concert which was held on September 25, 2021, and amending the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046. WHEREAS, the City received $50,000 from Genentech to support City Hall’s 101 st Birthday Concert, which was held on September 25, 2021; and WHEREAS, the event expenditures are itemized in Exhibit A; and WHEREAS, the City appreciates contributions from Genentech that have continued to enhance the City’s mission to foster community pride and understanding. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby accepts $50,000 in grant funding to support City Hall’s 101st Birthday Concert which was held on September 25, 2021, and amends the City’s Non-departmental Fund in the Fiscal Year 2021-22 Operating Budget pursuant to budget amendment #22.046. ***** City of South San Francisco Printed on 2/25/2022Page 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 #:22-79 Agenda Date:2/23/2022 Version:1 Item #:8. Report regarding a resolution amending an existing services agreement with Bigbelly Solar,LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease,software,and installation of ten (10) additional dual-stream trash and recycling receptacles,with a term end date of November 3,2025.(Marissa Garren, Management Analyst I) RECOMMENDATION It is recommended that the City Council adopt a resolution amending the services agreement with Bigbelly Solar,LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease, software,and installation of ten (10)additional dual-stream trash and recycling receptacles,with a term end date of November 3, 2025. BACKGROUND/DISCUSSION At the January 26,2022 Regular City Council meeting,Public Works staff recommended the current agreement with Bigbelly Solar,LLC (“Bigbelly”)be amended to include the lease cost of ten (10)additional dual-stream trash and recycling receptacles.Council requested staff to provide detailed information regarding the use and benefits of the initial installations before approving additional units.The item was subsequently tabled for consideration at a later meeting. On Thursday,February 10,2022,staff provided a memorandum outlining the additional information requested by City Council (Attachment 3).The staff report presented at the January 26,2022 Regular City Council meeting is also attached for reference (Attachment 2). Staff Time Savings and Cost Information Historically,all trash cans on Grand Avenue have been serviced each week by both Public Works staff and SSF Scavenger (Public Works on Tuesdays and Thursdays and SSF Scavenger on Mondays,Wednesdays,and Fridays)per the City’s franchise agreement.With the higher capacity and self-compaction capability of the Bigbelly units,collection is less frequent.SSF Scavenger continues to service these units three times per week while Public Works does not have to service the units on the other two days.This saves approximately 6 hours of city staff time per week (24 hours per month /288 hours per year)to focus on other maintenance needs throughout South San Francisco. For the proposed additional ten Bigbelly units,four will replace existing cans on Grand Avenue,four will replace existing cans on Linden Avenue,and the two will replace four existing cans in Brentwood.All cans on Grand Avenue proposed for replacement by Bigbelly units will be serviced only by SSF Scavenger.City staff’s time savings for these cans would be approximately two hours per week (eight hours per month /96 hours per year).All cans on Linden Avenue are currently serviced by Public Works staff five times per week and will reduce to half with the new Bigbelly units.Staff time savings will be approximately 2.5 hours per week (10 City of South San Francisco Printed on 2/18/2022Page 1 of 2 powered by Legistar™ File #:22-79 Agenda Date:2/23/2022 Version:1 Item #:8. reduce to half with the new Bigbelly units.Staff time savings will be approximately 2.5 hours per week (10 hours per month /120 hours per year).Lastly,two Bigbelly cans will replace four existing cans in the Brentwood area.The existing bins are currently serviced twice per week by Public Works staff and three (3) times per week by SSF Scavenger.The Bigbelly units will require service only by SSF Scavenger.This will provide staff time savings of two (2)hours per week (8 hours per month /96 hours per year).Staff time savings with the addition of ten (10)Bigbelly units will be approximately 6.5 hours per week (26 hours per month /312 hours per year),which will be applied to other areas of maintenance,such as graffiti abatement,illegal dumping removal, curb, and crosswalk painting, etc. The total estimated staff time saved from the installation of these Bigbelly trash cans is a minimum of 600 hours,the equivalent of a full-time maintenance worker for three months.The calculated cost of these staff and equipment savings is roughly $60,000;the equivalent annual lease-operation cost of all twenty (20)Bigbelly cans. RELATIONSHIP TO STRATEGIC PLAN The installation of ten additional solar-powered Bigbelly units supports Priority Area 3:Quality of Life of the South San Francisco Strategic Plan by building and maintaining a sustainable city with healthy environmental sustainability programs.It also ties into Priority Area 6:Community Connections with multilingual city sustainability messages and initiatives, such as “keep our city clean” on the side panels of the units, FISCAL IMPACT Funding for the lease of the additional ten units is included in the Parking District’s annual operating budget for Fiscal Year 2021-22.Staff has also applied for $16,899 in funding from CalRecycle’s Beverage Container Recycling City/County Payment Program for Fiscal Year 2021-22.Any grant funding received will be applied toward the lease amount. CONCLUSION Staff recommends that the City Council adopt a resolution amending the services agreement with Bigbelly, LLC by an amount of $120,000 for a total not to exceed amount of $270,000 with a term end date of November 3, 2025. Attachments: 1)Bigbelly locations - Current and Proposed 2)January 26, 2022 staff report 3)February 10, 2022 memorandum article “Big Belly Trash and Recycling Units” City of South San Francisco Printed on 2/18/2022Page 2 of 2 powered by Legistar™ 1 2 3 4 5 6 7 8 9 10 2 83 6 5 4 7 1 Current Locations 1.Grand Ave. & Spruce Ave. (southwest corner) 2.Grand Ave.&Walnut Ave.(across from Grand Library) 3.City Hall parking lot 4.309 Maple Ave. (City Hall Park) 5.Grand Ave. & Maple Ave. (northwest corner) 6.352 Grand Ave.(near breezeway) 7.321 Grand Ave. 8.Grand Ave.&Linden Ave.(southwest corner) 9.Grand Ave. & Cypress Ave. (southeast corner) 10.Grand Ave.&Airport Blvd.(in front of Peet’s Coffee) Proposed Additional Locations Downtown Area 1.417 Grand Ave. (across from City Hall) 2.387 Grand Ave. 3.324 Grand Ave. 4.507 Linden Ave. 5.Linden Ave.&Baden Ave.(northwest corner) 6.Linden Ave. in front of parking lot #16 (between 7th Lane & Pine Ave.) 7.322 Linden Ave.(US Post Office) 8.230 Grand Ave. Brentwood Area (see following page) 9.Kenwood Dr. (between Smart & Final and Goodwill) 10.124 Hazelwood Dr. Brentwood Area 9. Kenwood Dr. (between Smart & Final and Goodwill) 10. 124 Hazelwood Dr. 9 10 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-801 Agenda Date:1/26/2022 Version:1 Item #:5. Report regarding a resolution amending an existing services agreement with Bigbelly Solar, LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease, software, and installation of ten (10) additional dual-stream trash and recycling receptacles for the South San Francisco downtown, with a term end date of November 3, 2025.(Marissa Garren, Management Analyst I) RECOMMENDATION It is recommended that the City Council adopt a resolution amending the services agreement with Bigbelly Solar, LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease, software, and installation of ten (10) additional dual-stream trash and recycling receptacles for the South San Francisco downtown, with a term end date of November 3, 2025. BACKGROUND/DISCUSSION In September 2020, the City entered into a services agreement with BigBelly, LLC (“Bigbelly”) for the lease, software, and installation of ten (10) solar-powered, self-compacting, dual-stream receptacles for the South San Francisco downtown area. Installation of these ten units was completed in November 2020 and has been a successful operation due to its self-compacting ability to accept a higher capacity of trash and recycling waste. The addition of these units to the downtown area aligns with the City’s waste reduction commitment, actively responds to the recycling requirements of reducing plastics pollution and solid waste and positions the City as an innovative leader in the effort against waste challenges. These units have worked efficiently for the public, SSF Scavenger collection staff, and city maintenance staff. The installation of ten additional Bigbelly units is intended to prevent litter from overflowing receptacles, in addition to improving trash and recycling collection operations within the high-traffic areas of the South San Francisco downtown. Since their installation in 2020, the Bigbelly units have met the following objectives: ·Litter reduction - The units are visible and clearly labeled, which encourages proper disposal for both regular landfill trash and recycling. ·Public-health concerns - Units include a hands-free foot pedal, so users never have to touch the receptacle when disposing trash or recycling items. ·Sustainability impact - These units provide needed opportunities for smart sorting for pedestrians in the downtown. Increasing these recycling opportunities and reducing waste throughout the community are actions identified in both the City’s Climate Action Plan and Strategic Plan. ·Advertising of City’s clean initiatives - Two panels on each of the Bigbelly units allow for advertising. Since the installation of the ten existing units, the City has used these spaces to market the City’s Clean SSF logo and message. ·Maintenance - The Bigbelly units include dual compactors (one for landfill waste and the other for recycling). These dual compactors communicate via SMS to a cloud-based web application called CLEAN, which captures real-time data on bin capacity, operational status, and waste diversion. This City of South San Francisco Printed on 2/17/2022Page 1 of 2 powered by Legistar™ Attachment 2 File #:21-801 Agenda Date:1/26/2022 Version:1 Item #:5. CLEAN,which captures real-time data on bin capacity,operational status,and waste diversion.This provides city maintenance staff with the management tools needed for efficient route scheduling and collection.The Bigbelly units require no collection service by city staff,whereas the previous trash cans were serviced daily.SSF Scavenger collects trash and recycling waste from these units on average twice per week. ·Aesthetic improvement -Staff has received positive feedback regarding the sleeker and more modern design these units bring. RELATIONSHIP TO STRATEGIC PLAN The installation of ten additional solar-powered Bigbelly units supports Priority Area 3:Quality of Life of the South San Francisco Strategic Plan by building and maintaining a sustainable city with healthy environmental sustainability programs.It also ties into Priority Area 6:Community Connections by communicating city sustainability messages and initiatives on the side panels of these units, such as helping “keep our city clean”. FISCAL IMPACT Parking District funding in the amount of $50,000 was approved in the City’s annual operating budget for Fiscal Year 2021-22.Staff has also applied for $16,899 in funding from CalRecycle’s Beverage Container Recycling City/County Payment Program for Fiscal Year 2021-22.If approved,this funding will be applied toward these units.Remaining funding needed toward these ten new units will be paid from the City’s Parking District as they will also be placed within the district. CONCLUSION Staff recommends that the City Council adopt a resolution amending the services agreement with Bigbelly, LLC by an amount of $120,000 for a total not to exceed amount of $270,000 with a term end date of November 3, 2025. Attachments: 1)Bigbelly locations - Current and Proposed Additional City of South San Francisco Printed on 2/17/2022Page 2 of 2 powered by Legistar™ Attachment 3 (From February 10, 2022 Memorandum from Public Works) Bigbelly Trash and Recycling Units (Content provided and Marissa Garren, Management Analyst I) The following information is provided in follow up to the January 26, 2022, City Council meeting regarding the amendment to the current agreement with Bigbelly Solar, LLC for the addition of 10 dual-stream trash and recycling units. Funding for these additional units were already approved as part of the City’s fiscal year 2021- 22 operating budget. Below provides staff time savings for the current and new Bigbelly units. Quick Facts: The additional ten Bigbelly units are anticipated to replace 14 existing cans (pictured to the right). Bigbelly units allow for less pickup frequency due to higher capacity and solar-powered self-compaction. Previous cans included only small top compartment for recycling, bottom was for regular trash; Bigbelly provides larger compartment for recycling allowing for easier and more hygienic disposal. The additional ten (10) units will be located in the downtown and Brentwood area. Service frequency by Public Works Maintenance staff will reduce by half or will be solely SSF Scavenger, depending on installation location. The self-closing design of the Bigbelly trash cans prevents litter from blowing out onto the street. In addition, the compacting feature allows the cans to be operational over weekends without overflowing or requiring service. Staff time savings: The current 10 Bigbelly units have saved Public Works Maintenance staff 6 hours per week/24 hours per month/288 hours per year to focus on other maintenance efforts throughout South San Francisco. Since these cans are located along Grand Avenue, which is the current service route in the City’s franchise agreement, SSF Scavenger now services these cans twice per week, instead of city staff. For the proposed additional ten Bigbelly units, four are to replace existing cans on Grand Avenue, four to replace existing cans on Linden Avenue, and the last two to replace four existing cans in Brentwood. Since the current cans on Grand Avenue are serviced twice per week by Public Works and three times per week by SSF Scavenger, service will transition solely to SSF Scavenger since Attachment 3 Grand Avenue is already part of their current service route in the City’s franchise agreement. Staff’s time savings for these cans would be approximately 2 hours per week/8 hours per month/96 hours per year. The cans on Linden Avenue are currently serviced by Public Works staff five times per week and will reduce to half with the new Bigbelly units. Staff time savings will be approximately 2.5 hours per week/10 hours per month/120 hours per year. Lastly, two Bigbelly cans will replace four existing cans in the Brentwood area. The existing bins are currently serviced twice per week by Public Works staff. The new Bigbelly units will require service only by SSF Scavenger. This will provide staff time savings of two hours per week/8 hours per month/96 hours per year. Staff time savings with the addition of ten Bigbelly units will be approximately 6.5 hours per week / 26 hours per month / 312 hours per year, which will be applied to other areas of maintenance, such as graffiti abatement, illegal dumping removal, curb, and crosswalk painting, etc. The total estimated staff time saved from the installation of these Bigbelly trash cans is a minimum of 600 hours, the equivalent of a full-time maintenance worker for three months. The calculated cost of these staff and equipment savings is roughly $60,000; the equivalent annual lease-operation cost of all twenty Bigbelly cans. Staff plans to bring this item back to council for approval, tentatively scheduled for the February 23, 2022 regular council meeting. If you have any questions or would like any further information provided prior to the meeting, please contact Marissa Garren at (650) 877-8549 / marissa.garren@ssf.net. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-80 Agenda Date:2/23/2022 Version:1 Item #:8a. Resolution amending an existing services agreement with Bigbelly Solar,LLC by an amount of $120,000 for a total not to exceed amount of $270,000 for the lease,software,and installation of ten (10)additional dual- stream trash and recycling receptacles, with a term end date of November 3, 2025 WHEREAS,the City currently is a party to a Services Agreement with Bigbelly Solar,LLC (“Bigbelly) pursuant to which the City leases and maintains ten (10)Bigbelly trash and recycling receptacles in the South San Francisco downtown area; and WHEREAS, the design features of these receptacles contribute to a cleaner downtown; and WHEREAS,the initial installation of these receptacles has led to significant savings in staff time required to service these units; and WHEREAS,these savings in staff time allow staff to attend to other maintenance needs such as illegal dumping and graffiti; and WHEREAS,the lease and installation of ten (10)additional Bigbelly receptacles has the potential to further improve efficiencies,aesthetics,pest control,litter reduction,public education,recycling opportunities,and economic development; and WHEREAS,staff recommends that the City amends the existing services agreement with Bigbelly Solar,LLC for the lease, software, and installation of ten additional trash and recycling receptacles. NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco that the City Council hereby approves a First Amendment to a connecting services agreement with Bigbelly Solar,LLC in an amount not to exceed $270,000,conditioned on Bigbelly’s timely execution of the amendment,attached herewith as Exhibit A and incorporated herein,and submission of all required documents,including but not limited to, certificates of insurance and endorsements, in accordance with the contract requirements. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the First Amendment to the connecting services agreement with Bigbelly Solar,LLC in substantially the same form as Exhibit A on behalf of the City upon timely submission by Bigbelly Solar,LLC of the signed agreements and all other City of South San Francisco Printed on 2/25/2022Page 1 of 2 powered by Legistar™ File #:22-80 Agenda Date:2/23/2022 Version:1 Item #:8a. documents, subject to approval as to form by the City Attorney. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take any other related actions consistent with the intention of this resolution. ***** City of South San Francisco Printed on 2/25/2022Page 2 of 2 powered by Legistar™ FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND BIGBELLY SOLAR, LLC THIS FIRST AMENDMENT TO THE SERVICES AGREEMENT is made at South San Francisco, California, as of _________ by and between THE CITY OF SOUTH SAN FRANCISCO (“City”), a municipal corporation, and Bigbelly Solar, LLC (“Contractor”), (sometimes referred together as the “Parties”) who agree as follows: RECITALS A. On September 10, 2020, City and Contractor entered that certain Services Agreement (“Agreement”) whereby Contractor agreed to supply ten (10) solar-powered dual stream receptacles, along with software and installation. A true and correct copy of the Agreement and its exhibits is attached as Exhibit A. B. City and Contractor now desire to amend the Agreement. NOW, THEREFORE, for and in consideration of the promises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Contractor hereby agree as follows: 1.All terms which are defined in the Agreement shall have the same meaning when used in this Amendment, unless specifically provided herein to the contrary. 2.Compensation. Section 3.0 of the Agreement shall be amended s uch that the City agrees to pay Contractor a sum not to exceed $270,000, with the understanding that up to $43,591.69 has already been paid to Contractor. Contractor agrees this is the City’s total contribution for payment of costs under the Agreement unless additional payments are authorized in accordance with the terms of the Agreement and said terms of payment are mutually agreed to by and between the parties in writing. 3. Scope of Services. The Scope of services is amended and attached as Exhibit B to this Amendment. All other terms, conditions and provisions in the Agreement remain in full force and effect. If there is a conflict between the terms of this Amendment and the Agreement, the terms of the Agreement will control unless specifically modified by this Amendment. [SIGNATURES ON THE FOLLOWING PAGE] EXHIBIT A Dated: CITY OF SOUTH SAN FRANCISCO BIGBELLY SOLAR, LLC By: By: Mike Futrell, City Manager Approved as to Form: By: City Attorney 1 FIRST AMENDMENT TO CONNECT SERVICES AGREEMENT Reference: Bigbelly Connect Services Agreement No. 10187 by and between the City of South San Francisco, California and Big Belly Solar, LLC dated as of September 10, 2020 (the “Agreement”). THIS FIRST AMENDMENT to the above-referenced Agreement (the “First Amendment”) is entered into effective as of _______________ (the “First Amendment Effective Date”) by and between the City of South San Francisco, California (the “Customer”) and Big Belly Solar, LLC, a Delaware limited liability company, assignee of Big Belly Solar, Inc. (“Bigbelly”). Capitalized terms not otherwise defined herein shall have the meaning given to them in the Agreement. WHEREAS, Bigbelly and Customer are parties to the above-referenced Agreement pursuant to which the Customer is presently leasing (a) for a sixty (60) month Term that expires on November 3, 2025, the following Bigbelly Smart Waste Systems: ten (10) HC5/HC5 Double Stations, all with Bar-Style Lift Bins, Message Panels, HC Foot Pedals, and Partial Wraps (Front Door Stickers) (the “Existing Equipment”); and WHEREAS, Customer desires to lease, for a sixty (60) month Term, ten (10) HC5/HC5 Double Stations, all with Bar-Style Lift Bins, Message Panels, HC Foot Pedals, and Partial Wraps (Front Door Stickers) (the “Additional Equipment”). NOW, THEREFORE, for good and valuable consideration, intending to be legally bound, Bigbelly and Customer agree as follows: 1.As of the First Amendment Effective Date, the Equipment/Hardware Configuration table set forth in the Connect Service Schedule on the first page of the Agreement is amended by adding the Additional Equipment identified below and the related Connect Services Fees and One-Time Fees for the Additional Equipment: Additional Equipment/Hardware Configuration: Qty. 10 HC5/HC5 Double Stations with Bar-Style Lift Bins, Message Panels, HC Foot Pedals, and Partial Wraps (Front Door Stickers) Additional Equipment Connect Services Fees: Total Monthly System Cost $2,448.00 Additional Equipment One-Time Fees: Shipping Charges $6,470.00 Existing Equipment Connect Services Fees: Total Monthly System Cost $2,448.00 Existing and Additional Equipment Total Aggregate Monthly System Cost $4,896.00 2.The Initial Term of the Agreement with respect to the Additional Equipment shall be co-terminus with the Existing Equipment, commencing upon the delivery of the Additional Equipment, as the same may be extended or renewed pursuant to the terms and conditions of the Agreement. The Initial Term with respect to the Existing Equipment remains as stated in the Agreement and is unchanged by this First Amendment. 4.Except as modified by this First Amendment, the Agreement remains unmodified and in full force and effect. Signatures on the following page. EXHIBIT B 2 IN WITNESS WHEREOF, the parties have caused this First Amendment to the Agreement to be executed as of the First Amendment Effective Date. Customer: CITY OF SOUTH SAN BIG BELLY SOLAR, LLC FRANCISCO, CALIFORNIA By: By: Name: Name: Title: Title: Date: Date: CONNECT SERVICES AGREEMENT Connect by Bigbelly Service Agreement CSA20160216 Page 1 13 Agreement No. 10187 CUSTOMER Full Legal Name: City of South San Francisco, CA Legal Contact: Emma Soichet/Claire Lai Billing Address: Billing Contact: Louis Langi Billing Phone: (650) 877-8550 Billing Email: Louis.langi@ssf.net Sales Tax Status: Exempt (Attach Certificate) TIN or FEIN: 946000435 Non-Exempt Insurance: Self-Insured Insurance Certificate Attached Shipping Address: 550 North Canal Street South San Francisco, CA 94080 Shipping Contact: Louis Langi Shipping Phone: (650) 877-8554 Shipping Email: Louis.langi@ssf.net Connect Service Schedule System Software Automated System Monitoring CLEAN Management Console Licenses for Full Term CLEAN Mobile Software Licenses for Full Term Automated System Diagnostics and Alerts Equipment/Hardware Cleaning and Inspection Custom Configuration as Detailed Below Annual Comprehensive Station Cleaning Annual 21-Point Station Inspection Station Installation Warranty On-Site Installation for Stations Hardware Parts Warranty for Full Term (includes battery) Setup and Training Customer Support CLEAN Management Console Software Account Setup System Training & Onboarding Customer Support Hotline and Trained Field Service Professionals Equipment/Hardware Configuration 10 HC5/HC5 Double Stations with Lift Bins, Message Panels, Foot Pedals, and Partial Wraps (Front Door Stickers) Service Fee: Total Monthly System Cost $2,448.00 Shipping: One Time Fee $3,120.00 This Service Agreement (the “Agreement”), made and entered into as of September 10, 2020 (the “Effective Date”), by and between the City of South San Francisco (“Customer”) and Big Belly Solar, LLC (“Bigbelly”) a Delaware corporation located at 150 A Street, Suite 103, Needham, MA 02494, and incorporates herein by reference the attached Terms and Conditions. Bigbelly and Customer shall each be referred to herein as a “Party” and collectively as the “Parties”. The initial term of this agreement shall be 60 Months (the “Initial Term”). The payment terms of this Agreement are monthly in arrears (“Payment Terms”). This Agreement may be executed in counterparts, each of which shall be an original, but which together shall constitute one Connect by Bigbelly Service Agreement CSA2019 Page 2 | 13 instrument. Intending to be legally bound, each of the parties has caused this Agreement to be executed by its duly authorized representative as of the date set forth above. CITY OF SOUTH SAN FRANCISCO (CUSTOMER) BIG BELLY SOLAR, LLC By: ______________________________________________ By: _________________________________ Printed Name: Mike Futrell Printed Name: Jeff Wakely Title: City Manager Title: Chief Financial Officer Date: ____________________________________________ Date: _______________________________ !$ !! $ !" ! ! !$ !" ! % # ! !$ Connect by Bigbelly Service Agreement CSA2019 Page 3 | 13 CONNECT SERVICE TERMS AND CONDITIONS For purposes of this Attachment A, the ‘Agreement’ shall mean the Connect Service Agreement signed by the parties. The meaning of capitalized and undefined terms appearing in these Terms and Conditions shall be as set forth in the Agreement unless otherwise indicated herein. 1.0Definitions 1.1Service. The term “Service” means Connect by Bigbelly, including software, equipment, equipment delivery, installation, customer service and equipment maintenance, warranty for defective part replacement and repair, set up and training and any other features, products or services provided as part of and included under the terms of this Agreement. 1.2Equipment. The term “Equipment” means station hardware and accessories provided by Bigbelly to Customer for use with the Service. 1.3Software. The term “Software” refers to CLEAN cloud-based software for use with mobile or desktop devices intended for use by Customer with the Service. 2.0Term of Agreement 2.1Term. The Term of this Agreement will commence on the date that all Equipment ordered pursuant to this Agreement has been delivered to the Customer and received at Customer’s receiving location. Upon expiration of the Term, and unless terminated according to Section 6.7 below, Customer shall have the right to renwew the Term of this Agreement. As used herein, “Term” shall mean the Initial Term and any applicable Renewal Terms. Except to the extent otherwise provided herein, the Term is non-cancelable. 2.2Notice of Renewal. Customer must provide written notice of renewal to Bigbelly at least three (3) months prior to the expiration of the then-current Term. 3.0Fees Payable by Customer 3.1Fees. In compensation for the Service described in this Agreement, Customer agrees to pay the Service Fee specified in the Service Schedule set forth at page 1 of this Agreement, and any fees payable for additional customization and/or services. Bigbelly shall submit invoices to Customer during the Term of this Agreement per the Payment Terms outlined in the Service Schedule and Customer shall pay each invoice on the date due. All payments shall be made by check or, at Customer’s option, may be automatically deposited to the account of Bigbelly as authorized by Customer by means of Customer submitting a signed Pre-authorization Payment Form (“PAF”) identical to the PAF attached hereto as Attachment B. Any failure by Bigbelly to provide an invoice in a timely manner shall not affect Customer’s obligation to make payments. Whenever any sum due hereunder is not paid when due, Customer agrees to pay to Bigbelly, on the next due date, a late charge equal to five percent (5%) of the amount of such late payment (but not less than $10.00), but only to the extent permitted by law. Late payments shall be subject to interest at the rate of eighteen percent (18%) per annum. 3.2Service Fee Prices. Service Fee Prices are guaranteed for the first twenty-four (24) months of Service. Thereafter, Service Fee Prices shall not increase over the amounts charged for the immediately preceding Term by more than the rate of inflation as reflected by the Consumer Price Index – Urban for all US Cities, unadjusted (“CPI-U”). Bigbelly will provide Customer at least 120 days prior notice of a price change. 4.0Obligations of the Parties 4.1Bigbelly’s Obligations (A)Equipment. Bigbelly will supply the Equipment identified in the Service Schedule on a rental basis to Customer for the Term of the Agreement. Unless otherwise agreed upon by the parties in writing, the Equipment will be new. (B)System Software. The CLEAN Software License Agreement includes communication services and access to the CLEAN Management Console and CLEAN Mobile. Customer’s use of the Software is subject to the CLEAN™ Software License Agreement. (C)Equipment Delivery. Bigbelly will deliver the Equipment at Customer’s expense to Customer’s receiving dock or to a location mutually agreed upon by the parties before the shipment. Bigbelly hereby warrants that its Equipment is: Connect by Bigbelly Service Agreement CSA2019 Page 4 | 13 (a)good and merchantable, (b) free from defects and malfunctions, (c) free of liens, security interests or other encumbrances, (d) complies with all applicable laws, rules, regulations, and orders, and (e) is fit for the purpose for which the Equipment is intended. (D)Station Installation. Bigbelly Equipment will be installed, by Bigbelly at no additional expense to Customer, at mutually agreed upon locations, including semi-permanent attachment to the ground. Installation will be in accordance with the delivery and installation schedule agreed to by the parties. (E)Setup and Training. Bigbelly shall, at its expense, provide Customer Equipment and Software setup and training. The parties shall agree upon the location and method of training. (F)Warranty - Defective Part Replacement and Repair. Replacement parts required due to manufacturer defects or workmanship will be provided by Bigbelly at no cost to Customer. All other repairs and part replacements, including but not limited to, repairs or replacements required as a result of external trauma or damage (including but not limited to vehicle strikes or vandalism) are specifically excluded and must be repaired or replaced at Customer’s expense. Custom add-ons including vinyl wraps purchased by Customer are not covered by this warranty and repair and replacement shall be at Customer’s expense, unless the damage is caused by Bigbelly or its employees, subcontractors or representatives, in which case any repair or replacement will be at Bigbelly’s expense. (G)Customer Support and Equipment Maintenance. Except for losses described in Section 5.2 below, Bigbelly will support the Customer in the maintenance of the Equipment at its sole discretion and expense in order to optimize up time. Technical Customer Support is available Monday through Friday, 7am to 6 pm EST to guide Customer in troubleshooting, repair and replacement efforts and to assist with parts ordering. In addition, Bigbelly maintains a network of trained Field Service professionals available for dispatch upon Customer request to investigate and resolve issues in the field. Equipment batteries will be provided at no cost to Customer during the Term of the Agreement at Bigbelly’s discretion, but no less frequently than necessary for the normal operation of the Equipment. If station operating conditions change such that insufficient sunlight is available for normal station operations (for example, Customer moves station into storage and fails to switch off station or places station under awning), and as a result the equipment battery fails prematurely, battery will be replaced at Customer expense. (H)Removal. Upon termination, Bigbelly will de-install and remove the Equipment at Customer’s expense (not to exceed a total cost of $3,120). Equipment so removed shall be in operational condition and free of any damage for which Customer is responsible pursuant to Section 5.2 below. (I)Subcontractor Services. Bigbelly may contract with third parties to provide the Service. If Bigbelly subcontracts any performance of this Agreement to a third party or third parties, Bigbelly shall be responsible for ensuring that the third party or third parties complies/comply with the terms of this Agreement. (J)Insurance. Prior to beginning the Connect Services and continuing throughout the Term of this Agreement, Bigbelly (and any subcontractors) shall, at Bigbelly’s (or subcontractor’s) sole cost and expense, furnish Customer with certificates of insurance evidencing that Bigbelly (or its subcontractor) has obtained and maintains insurance in the following amounts: A. Workers’ Compensation, if applicable, that satisfies the minimum statutory limits. B. Commercial General Liability and Property Damage Insurance in an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence, TWO MILLION DOLLARS ($2,000,000) annual aggregate, for bodily injury, property damage, products, completed operations and contractual liability coverage. The policy shall also include coverage for liability arising out of the use and operation of any City-owned or City-furnished equipment used or operated by Bigbelly, its personnel, agents or subcontractors. C. Comprehensive automobile insurance in an amount not less than ONE MILLION DOLLARS ($1,000,000) per occurrence for bodily injury and property damage including coverage for owned and non-owned vehicles. Connect by Bigbelly Service Agreement CSA2019 Page 5 | 13 (K)Compliance with Law and Non-Discrimination. Bigbelly shall comply with all applicable local, state and federal laws, regulations and ordinances in the performance of this Agreement. Bigbelly shall not discriminate in the provision of service or in the employment of persons engaged in the performance of this Agreement on account of race, color, national origin, ancestry, religion, gender, marital status, sexual orientation, age, physical or mental disability in violation of any applicable local, state or federal laws or regulations. (L)Taxes. Bigbelly is solely responsible for the payment of employment taxes related to its employees incurred under this Agreement and any similar federal or state taxes. To be exempt from tax withholding, Bigbelly must provide Customer with a valid California Franchise Tax Board form 590 (“Form 590”), as may be amended, and such Form 590 shall be attached hereto and incorporated herein as an exhibit. Unless Bigbelly provides City with a valid Form 590 or other valid, written evidence of an exemption or waiver from withholding, City may withhold California taxes from payments to Bigbelly as required by law. Bigbelly shall obtain, and maintain on file for three (3) years after the termination of this Agreement, Form 590s (or other written evidence of exemptions or waivers) from all subcontractors. Bigbelly accepts sole responsibility for withholding taxes from any non-California resident subcontractor and shall submit written documentation of compliance with Bigbelly’s withholding duty to City upon request. (M)Prevailing Wages. Where applicable, the wages to be paid for a day's work to all classes of laborers, workmen, or mechanics on the work contemplated by this Agreement, shall be not less than the prevailing rate for a day’s work in the same trade or occupation in the locality where the work will be performed, as determined by the Director of Industrial Relations pursuant to the Director’s authority under California Labor Code Section 1770, et seq. Bigbelly shall be responsible for ensuring that it, or any subcontractor working for it, complies with California state prevailing wage law governing public works projects, to the extent applicable. 4.2Customer’s Obligations (A)Customer Information & Access. Customer agrees that Bigbelly’s ability to perform the Service under the Agreement in a timely manner is dependent upon access to Customer’s installation information and locations. Deadlines imposed by this Agreement shall be extended in the event that Customer fails to provide such information and/or access in a timely manner. (B)Shipping. Customer agrees to pay for shipping expenses and to provide an appropriate facility that can receive, inspect and stage all Bigbelly Equipment until the Equipment is installed. (C)Site Preparation. Customer agrees to provide a poured concrete pad if the intended installation surface does not meet Bigbelly specifications (such specifications to be provided by Bigbelly to Customer not less than 30 days in advance of the anticipated shipping date). If Customer’s installation surface does not meet such specifications, any additional cost associated with Bigbelly’s efforts to properly prepare the surface will be at Customer’s expense. It is the Customer’s responsibility to remove, at Customer’s expense, existing bins or any other items from the locations where Bigbelly stations will be installed. (D)Operational Safety. Customer agrees to provide immediate notice to Bigbelly with respect to any damage or other event which causes the Equipment to pose a public safety issue or create unsafe operating conditions and Customer shall take prompt action if necessary, to eliminate such public or operator safety issues. Customer will promptly attempt to service or remove from service any Equipment that Customer has identified as causing a public safety issue or creating unsafe operating conditions. If after applying best effort, Customer cannot resolve the issue, Customer will contact Bigbelly Customer Service and Bigbelly will resolve the issue at Bigbelly’s expense, unless unsafe operating condition is due to losses described in Section 5.2. (E)Automated System Monitoring & Customer Support Escalation - Customer will respond to routine maintenance and repair issues they observe or are notified of via automated CLEAN alerts. Customer will use best efforts to promptly resolve issues and may contact Bigbelly Customer Service to receive troubleshooting assistance and instructions for proper repair. If a replacement part is needed to resolve the issue, Customer will contact Bigbelly Customer Service to request a part(s). If Customer best efforts do not resolve the issue, Customer should contact Bigbelly Customer Service. If Bigbelly Field Service is dispatched and Bigbelly determines the issue is due to failure of Customer to provide best effort, to Customer error, or to damage as described in Section 5.2 below, Bigbelly Connect by Bigbelly Service Agreement CSA2019 Page 6 | 13 reserves the right to bill Customer for incurred expense. Furthermore, if a replacement part is provided and Bigbelly determines that the original part failed due to misuse or abuse, Customer is responsible for replacement cost per Section 5.2 below. (F)Cleaning & Inspection – Up to five (5) cleaning and inspection visits from Bigbelly are included during the Term of this Agreement. One cleaning and inspection visit per every 12-month period shall be made available upon request at no cost to Customer. Customer will use best efforts to maintain general cleanliness of Equipment throughout the contract Term. If, after applying best effort to maintain Equipment cleanliness, Customer finds equipment needs an additional cleaning and inspection visit, Customer may contact Bigbelly Customer Support to request a cleaning and inspection visit. Additional cleaning and inspection visits that are not included in the terms of this Agreement will be at Customer’s expense. (G)Insurance. This Section 4.2(G) shall not be applicable if Customer has provided evidence of self-insurance acceptable to Bigbelly and maintains such self-insurance in full force and effect. During the Term of this Agreement, Customer will keep the Equipment insured against all risks of loss or damage in an amount not less than the replacement cost thereof, with deductible not to exceed $15,000.00 and without co-insurance. Customer will also maintain for the Term of this Agreement, commercial general liability insurance covering both bodily injury and property damage of at least $1,000,000 per occurrence/$2,000,000 annual aggregate. Bigbelly and its assigns will be named as loss payee on the Property insurance and additional insured on General Liability insurance. Customer will pay all premiums for such insurance and must deliver proof of insurance coverage satisfactory to Bigbelly. If Customer does not provide such insurance, it agrees that Bigbelly has the right, but not the obligation, to obtain insurance against theft and physical damage and add an insurance fee to the amount due from Customer. (H)Equipment Relocation. Within five (5) business days following relocation of any Equipment, Customer shall notify Bigbelly in writing of the specific location of such Equipment. 5.0Equipment Rental Terms and Conditions 5.1Title To and Use of Equipment (A)Title. As further set forth in Section 6.4 below, Bigbelly is and will at all times be the sole owner of the Equipment. Customer shall not acquire any title or interest, legal or equitable, in the Equipment, other than the use rights set forth in this Agreement. In the event this Agreement is deemed to be disguised sale, Customer hereby grants to Bigbelly a security interest in the Equipment (and all accessions thereto and substitutions therefore) and the proceeds thereof. (B)Use of Equipment. Customer shall not use the Equipment for other than intended purposes. Customer shall ensure safe operation of the Equipment by trained personnel. Customer shall comply with all Bigbelly and governmental guidelines, laws, rules, regulations and ordinances applicable to the use and operation of the Equipment. (C)No Pledge. Customer shall not pledge, lend, create a security interest in or permit any lien to attach to the Equipment or any part thereof or attempt in any other manner to dispose the Equipment. (D)No Attachments. Customer represents and warrants that the Equipment is, and shall at all times remain, fully removable personal property notwithstanding any affixation or attachment to real property or improvements. Customer shall give Bigbelly immediate notice of any such attachment or other judicial process affecting the Equipment and shall immediately take all action necessary to remove such attachment and terminate the effect of such judicial process on the Equipment. (E)Equipment Inspection Rights. Bigbelly and its agents shall have the right to enter any premises where Equipment is located to inspect such Equipment at any time with reasonable advance written notice to Customer. 5.2Risk of Loss. From the time of delivery of Equipment by Bigbelly to Customer until the Equipment is removed by Bigbelly, Customer will bear the entire risk of whole or partial loss, theft, destruction or damage to the Equipment resulting from any causes other than Bigbelly’s or its employees’ or contractors’ agents’ actions or omissions with respect to the Equipment or defects, flaws or malfunctions in the Equipment, or requisition of the Equipment by any governmental entity, or expropriation or the taking of the Equipment by eminent domain or otherwise (collectively, “Loss”). Customer will give Bigbelly written notice within 10 days of any Loss (“Loss Notice”). If any Equipment is damaged and can be economically repaired, Bigbelly will promptly repair such Equipment to good working order and condition and Customer agrees to immediately pay, on Connect by Bigbelly Service Agreement CSA2019 Page 7 | 13 demand, all costs and expenses incurred by Bigbelly in connection therewith. If any Equipment is damaged and cannot be economically repaired, Bigbelly will promptly replace such Equipment and Customer agrees to immediately pay Bigbelly, on demand, the replacement cost of such Equipment and all costs and expenses incurred by Bigbelly in connection with such replacement. Subject to Bigbelly’s obligations under this Section 5.2, this Agreement shall remain in full force and effect notwithstanding any Loss. 6.0General Terms and Conditions 6.1Taxes and Other Charges. Except for any tax covered by Section 4.1(L) of this Agreement, Customer is responsible for all taxes (including sales, use and personal property tax), fees, and assessments (collectively, “Taxes”) that may be imposed by any governmental entity or taxing authority in connection with this Agreement or the Equipment or any amount due hereunder. Customer will reimburse Bigbelly (or pay directly to the applicable taxing authority if instructed in writing by Bigbelly) for all such Taxes except to the extent Customer is tax-exempt and has delivered to Bigbelly a valid and current tax exemption certificate as reasonably determined by Bigbelly. 6.2Service. Customer agrees that during the Term of the Agreement, it shall keep in effect the Service as defined in the Agreement. Unless otherwise agreed in a written amendment to this Agreement, Bigbelly or its subcontractors shall be the sole and exclusive suppliers of the Service. 6.3Additions and Modifications of Equipment. Unless otherwise expressly agreed by an officer of Bigbelly in writing, Customer shall not make any additions, alterations or modifications to the Equipment. Customer shall not remove, cover or damage any Bigbelly logos or other identification markings on the Equipment. 6.4Ownership Rights. The Equipment and Software contain intellectual property including but not limited to patented and unpatented inventions, trade secrets, know-how, and copyrights all of which is owned and will continue to be owned exclusively by Bigbelly and/or its licensors and Customer will obtain no rights thereto other than the limited rights of use under this Agreement. Customer acknowledges and agrees that all technology, materials, hardware, software, content and data of which the Equipment and Software is comprised or which is otherwise contained within or attached to, generated, collected or processed by the Equipment and/or Software is the sole and exclusive property of Bigbelly. Bigbelly hereby grants Customer a royalty-free, non-exclusive, fully paid up right and license to use the Equipment, the Software, and any intellectual property rights therein as necessary for Customer and its contractors to use the Equipment and Bigbelly Service consistent with the terms and conditions of the Agreement and these Terms and Conditions. Bigbelly reserves the right, at its sole cost and expense and subject to applicable governmental guidelines, laws, rules, regulations and ordinances, at any time upon notice to Customer, to enhance or otherwise modify the Equipment and/or Software made available to Customer under this Agreement, including but not limited to enhancements or modifications for the purpose of implementing Wi-Fi network capability to the Equipment, instituting mechanisms for data collection, processing and analysis. Bigbelly retains all media rights associated with signage, and Customer agrees not to post signage and/or advertisements on the Equipment without written approval by Bigbelly. For avoidance of doubt, this does not prohibit customer from displaying messages solely on behalf of customer such as public service messages. 6.5Termination (A)Effect of Termination. Except as provided for in Section 6.7 below, any termination of the Agreement by Customer, with or without cause, shall not relieve Customer of its obligations to make any and all payments due under this Agreement. (B)Post Termination Duties / Surrender of Equipment. Upon the expiration or earlier termination or cancellation of the Agreement, Bigbelly shall remove the Equipment as described in Section 4.1 (H) above. 6.6Indemnifications by the Parties (A)Indemnity by Bigbelly. To the fullest extent permitted by law, Bigbelly shall indemnify, defend (with counsel acceptable to the City), and hold harmless the City and its elected and appointed officers, officials, employees, agents, contractors and consultants (collectively, the “City Indemnitees”) from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorneys’ fees and costs of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Bigbelly’s performance of the Agreement or its failure to comply with this Agreement, except such Liability caused, in whole or in part, by the negligence or willful misconduct of the City Indemnitees. Notwithstanding the foregoing, in no event will Bigbelly be liable for or indemnify the City Indemnitees against (a) any damage, claim or injury arising out of Customer’s or any third party’s actions, including but not limited to accidental or intentional tampering with the Equipment (but excluding regular, non-negligent usage of the Equipment) or (b) consequential or indirect damages. Connect by Bigbelly Service Agreement CSA2019 Page 8 | 13 Bigbelly’s maximum liability hereunder shall be limited to three times the total amount of Service Fees payable by Customer to Bigbelly pursuant to this Agreement. (B)Indemnity by Customer. Customer shall indemnify and hold Bigbelly and each of their directors, officers and employees, harmless, and defend Bigbelly and its representatives if it requests, as to all claims, liabilities, losses, damages and expenses (including without limitation, reasonable attorneys’ fees and other legal expenses and amounts paid in settlements) brought against Bigbelly and/or its representatives because of (a) any breach or alleged breach by Customer of any of its representations, warranties, or agreements with Bigbelly, (b) any claim that any of the information provided by Customer to Bigbelly infringes any patent, trademark, copyright or other intellectual property right, anywhere in the world, or (c) any death, injury or damage to any person or property caused by or resulting from Customer’s negligence in operating or securing the Equipment, except if caused, in whole or in part by the negligence or willful misconduct of Bigbelly. (C)Survival of Indemnity. The rights and obligations of Customer and Bigbelly under this Section 6.6 survive the termination, cancellation or expiration of this Agreement. 6.7Default; Dispute Settlement; Governing Law (A)Definition of Default. The term "Default" means any of the following events: (i) Customer fails to make any payment required under this Agreement within fifteen (15) days after the same shall have become due; (ii) Customer or Bigbelly fails to perform any other obligation under this Agreement and such non-performance is not cured within thirty (30) days following notice or Customer fails to provide insurance as required under this Agreement; (iii) Customer or Bigbelly becomes insolvent or makes an assignment for the benefit of its creditors; i(v) a receiver, trustee, conservator or liquidator of Customer or Bigbelly of all or a substantial part of such party’s assets is appointed with or without the application or consent of such party; (v) a petition is filed by or against Customer or Bigbelly under any bankruptcy, insolvency or similar law; (vi) any warranty or representation made by either party herein proves to have been false or misleading when made; or, (vii) there is a material adverse change in Customer's financial condition. (B)Default by Customer. Upon the occurrence of a Default by Customer, Bigbelly may do one or more of the following as Bigbelly in its sole discretion shall elect: (i) initiate Dispute Settlement procedures pursuant to subsection (D) herein to enforce performance by Customer of the Agreement or to recover damages for the breach thereof; (ii) cause Customer, at its expense, to promptly return the Equipment to Bigbelly at such place as Bigbelly designates in writing; (iii) by notice in writing to Customer, cancel or terminate the Agreement, without prejudice to any other remedies hereunder; (iv) enter upon, or instruct its agents or assigns to enter upon, the premises of Customer or other premises where any Equipment may be located and take possession of and remove all or any portion of such Equipment without liability to Customer by reason of such entry or taking possession; (v) require Customer to pay to Bigbelly immediately upon demand, in addition to all amounts then due under this Agreement, liquidated damages in the amount of the greater of (A) eighty percent (80%) of the remaining Service fees to become due during the Initial Term or (B) one year of Service fees, which amount, owing to the acknowledged difficulty in establishing a value for the unexpired Initial Term, the parties agree represents an agreed upon reasonable measure of damages and is not to be deemed a forfeiture or penalty; (vi) charge Customer interest on all monies due Bigbelly at the rate of eighteen percent (18%) per year from the date of default until paid, but in no event more than the maximum rate permitted by law; (vii) collect from Customer all expenses incurred by Bigbelly in connection with the enforcement of any remedies, including all expenses of repossessing, storing, shipping, repairing and selling the Equipment and reasonable attorneys’ fees; and (viii) exercise any other right or remedy available to Bigbelly under applicable law. (C)Default by Bigbelly. Upon the occurrence of a Bigbelly Default, Customer may do one or more of the following as Customer in its sole discretion shall elect; (i) initiate Dispute Settlement procedures pursuant to subsection (D) herein to enforce performance of the Agreement or recover damages for the breach thereof; (ii) cause Bigbelly, at its expense, to promptly collect the Equipment; (iii) by notice in writing to Bigbelly, cancel or terminate the Agreement, without prejudice to any other remedies hereunder; (iv) collect from Bigbelly all expenses incurred by Customer in connection with the enforcement of any remedies, including all expenses of repossessing, storing, shipping, repairing and selling the Equipment and reasonable attorneys’ fees; and (v) exercise any other right or remedy available to Customer under applicable law. Connect by Bigbelly Service Agreement CSA2019 Page 9 | 13 (D)Dispute Settlement. In the event of any dispute arising due to a Default or with respect to the terms of the Agreement or obligations of the parties, the parties agree to discuss the dispute in an attempt to amicably resolve such dispute within 30 days of the date of a written notice of such dispute by one party to the other. Failing any such resolution, either party will be free to seek remedy through a court of competent jurisdiction. (E)Continuation of Obligations. The occurrence of a dispute under or relating to the Agreement shall not relieve Bigbelly of, or change in any way, Bigbelly’s obligation to provide the Service in accordance with the terms of the Agreement nor shall the occurrence of a dispute under or relating to the Agreement relieve Customer of its obligations to make any and all payments described in the Agreement, including the Attachments. (F)Governing Law. The Agreement including the Attachments shall be interpreted under the laws of the courts of the State of California, without regard to principles of conflicts of law or the United Nations Convention on the International Sale of Goods. Each party consents to the personal jurisdiction of federal and state courts located in the County of San Mateo, California. Customer agrees that service of process in any action or proceeding may be duly affected upon Customer by mailing such process via certified mail, return receipt requested or as otherwise provided under applicable law. 6.8Assignment. Neither party may assign this Agreement or any rights hereunder unless it receives the written consent of the other party, which consent shall not be unreasonably withheld. Customer may not sublease or leng any Equipment without the prior written consent of Bigbelly. Notwithstanding the foregoing, Bigbelly may at any time, without further approval of Customer, make an assignment of its financial interests in this Agreement, including the granting of a security interest in the Equipment, to any person (a “Financial Assignee”) . In such event, all the provisions of this Agreement for the benefit of Bigbelly shall inure to the benefit of and be exercised by or on behalf of such Assignee, which shall not relieve Bigbelly of its performance obligations to the Customer under this Agreement, but the Assignee shall not be liable for or be required to perform any of Bigbelly’s obligations to Customer. Subject to the foregoing, the Agreement shall inure to the benefit of, and be binding upon, the successors and permitted assigns of the parties hereto. 6.9Relationship of Parties. Bigbelly and Customer are each independent entities and the relationship between Bigbelly and Customer under the Agreement is not a joint venture, partnership, principal-agent, broker, sales representative or franchise relationship. Bigbelly has no authority to make any promise, commitment or agreement on Customer’s behalf, and Bigbelly will not represent to anyone that it does have such authority. It is understood and agree that this Agreement is not a contract of employment and does not create an employer-employee relationship between Customer and Bigbelly, its employees or agents. At all times Bigbelly shall be an independent contractor, and Customer shall not control the manner of Bigbelly accomplishing the Connect Services. Bigbelly is not authorized to bind Customer to any contracts or other obligations without the express written consent of Customer. 6.10Notices. Each notice provided for in the Agreement shall be given in writing and become effective when: (A)served by personal delivery to the recipient’s Legal Department or Contract Administrator; Customer: CITY OF SOUTH SAN FRANCISCO BIG BELLY SOLAR, LLC Name: ___________________________________ Jeff Wakely Title: Public Works Program Manager Chief Financial Officer Address: 550 North Canal Street 150 A Street, #103 South San Francisco, CA 94080 Needham, MA 0249 (B)deposited, postage prepaid in the United States registered or certified mails addressed to the recipient’s Legal Department or Contract Administrator, at the address specified in Section 6.10(A); (C)dispatched to the recipient’s Legal Department or Contract Administrator, at the address specified in Section 6.10(A), via overnight mail using UPS, Federal Express or similar carrier; or, (D)sent to recipient’s Legal Department or Contract Administrator: via facsimile or other electronic means if delivery does not require a signature or other confirmation of delivery. 6.11Force Majeure. Any delay or failure of either party to perform its obligations (other than payment obligations) shall be excused if it is caused by an extraordinary event or occurrence beyond the control of the nonperforming party and without the nonperforming party’s fault or negligence, such as acts of God, fires, floods, windstorms, explosions, natural disasters, wars and sabotage. Raw material or labor shortages are not force majeure events. Each party shall promptly notify the other of the reason for the delay and use its Louis Langi Connect by Bigbelly Service Agreement CSA2019 Page 10 | 13 best efforts in curing such cause and shall take all action practicable to minimize the adverse impact of the delay on the other party. 6.12No Warranties. Customer hereby acknowledges that it has not entered into the Agreement including the Attachments in reliance upon any warranty or representation by any person or entity except for the warranties or representations specifically set forth therein. 6.13Use of Trade Names and Trademarks. Neither party may use the trade name, service mark, logo or trademark of the other party for any purpose without previous permission in writing from the other party. 6.14Damages. Unless otherwise provided in the Agreement, in no event shall either party, or its affiliates, shareholders, officers, directors, employees, agents, or representatives, or assigns be liable for lost revenue, lost profits, incidental, indirect or consequential damages, resulting from any aspect of the Service provided in connection with this Agreement. Bigbelly’s maximum aggregate liability to Customer in relation to or in connection with the Agreement will be limited to three times (3x) the total amount of Service Fees paid or payable by Customer to Bigbelly under the Agreement. 6.15INTENTIONALLY DELETED 6.16INTENTIONALLY DELETED 6.17Fiscal Funding. Customer hereby represents and warrants to Bigbelly that: (a) Customer is a State, possession of the United States, the District of Columbia, or political subdivision thereof as defined in Section 103 of the Internal Revenue Code and Treasury Regulations and Rulings related thereto (the “Code”); (b) If Customer is incorporated, it is duly organized and existing under the Constitution and laws of its jurisdiction of incorporation and will do or cause to be done all things necessary to preserve and keep such organization and existence in full force and effect; (c) Customer has been duly authorized by the Constitution and laws of the applicable jurisdiction and by a resolution of its governing body (which resolution, if requested by Bigbelly, is attached hereto), to execute and deliver the Agreement and to carry out its obligations hereunder; (d) All legal requirements have been met, and procedures have been followed, including public bidding, in order to ensure the enforceability of the Agreement; (e) The Equipment will be used by Customer only for essential governmental or proprietary functions of Customer consistent with the scope of Customer's authority and will not be used in a trade or business of any person or entity, by the federal government or for any personal, family or household use. Customer’s need for the Equipment is not expected to diminish during the term of the Agreement; (f) Customer has funds available to pay contracted Payments until the end of its current appropriation period, and it intends to request funds to make contracted Payments in each appropriation period, from now until the end of the term of the Agreement; and (g) The Customer shall comply at all times with all applicable requirements of the Code. If sufficient funds are not appropriated to make contracted payments under the Agreement (“Payments”), the Agreement shall terminate and Customer shall not be obligated to make contracted Payments under the Agreement beyond the then-current fiscal year for which funds have been appropriated. Upon such an event, Customer shall, no later than the end of the fiscal year for which contracted Payments have been appropriated, deliver possession of the Equipment to Bigbelly. If Customer fails to deliver possession of the Equipment to Bigbelly, the termination shall nevertheless be effective but Customer shall be responsible for the payment of damages in an amount equal to the portion of contracted Payments thereafter coming due that is attributable to the number of days after the termination during which the Customer fails to deliver possession and for any other loss suffered by Bigbelly as a result of Customer's failure to deliver possession as required. Customer shall notify Bigbelly in writing within seven (7) days after the failure of the Customer to appropriate funds sufficient for the payment of the contracted Payments, but failure to provide such notice shall not operate to extend the Agreement term or result in any liability to Customer. 6.18Entire Agreement. The Agreement including the Service Schedule included at page 1 and the Attachments constitute the entire agreement between the parties regarding its subject matter and supersede all prior agreements, oral and written, negotiations, commitments and writings, and may not be released, discharged, abandoned, changed or modified in any manner, orally or otherwise, except by an instrument in writing signed by a duly authorized representative of each party. Any purchase order or other ordering document issued by Customer is for administrative purposes only and does not form part of this Agreement. If there is an inconsistency between or among the documents listed below, then the following order of precedence shall govern: (a) Attachment A (b) Attachment B (c) The Agreement Connect by Bigbelly Service Agreement CSA2019 Page 11 | 13 6.19Amendment; Modification; Waiver. No modification, amendment, waiver or release of any provision of the Agreement or any right, obligation, claim or cause of action arising under the Agreement shall be valid or binding unless in writing and duly executed by the party against whom enforcement is sought. No waiver by either party of any breach, or the failure of either party to enforce any of the terms and conditions of the Agreement, shall affect, limit or waive that party’s right to enforce and compel compliance with all terms and conditions of the Agreement or to terminate the Agreement as permitted by its terms. Any provision of this Agreement which for any reason may be held unenforceable in any one jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions of this Agreement, and any such unenforceability in any one jurisdiction shall not render such provision unenforceable in any other jurisdiction. This Agreement may be executed in any number of counterparts and by different parties hereto or thereto on separate counterparts, each of which, when so executed and delivered, shall be an original, but all such counterparts shall together consist of but one and the same instrument. End of Attachment A. Connect by Bigbelly Service Agreement CSA2019 Page 13 | 13 BILLING INFORMATION FORM PLEASE COMPLETE THIS FORM AND RETURN WITH DOCUMENTS In order for Big Belly Solar, LLC to properly bill and credit your account, it is necessary that you complete this form and return it with the signed documents. Billing Name: The City of South San Francisco If you would like your invoices emailed to you in place of regular mail, please provide an email address(es) below: Marissa.garren@ssf.net; louis.langi@ssf.net Billing Address: 550 North Canal Street South San Francisco, CA 94080 Attention: Louis Langi, PW Program Manager Telephone Number: (650) 877-8550 Federal ID#: 946000435 SPECIAL INSTRUCTIONS Do you require a Purchase Order Number on the invoice? Yes X No If yes, please provide the PO# _________________________________ and attach a copy of the purchase order (front & back) for our file. Is a new purchase order required for each new fiscal year period? Yes X No If yes, provide month/year PO expires ________________________________________________ Do you have multiple contracts, and would you like them all billed on one invoice (Summary Billing)? Yes X No Are you sales tax exempt? IIf yes, please attach a copy of exempt certificate or direct pay permit. Yes X No Do you require any special information to establish a vendor number for _____________________________? Yes X No If yes, please advise: __________________________________________________________________________________ Additional Comments: ________________________________________________________________________________________ ___________________________________________________________________________________________________________ SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY :RRGUXII6DZ\HU &R 2QH /LEHUW\ 6TXDUH 6XLWH %RVWRQ 0$ /LFHQVH )HGHUDO ,QVXUDQFH &RPSDQ\ %,*%(//< %LJ %HOO\ 6RODU //& $ 6WUHHW 6XLWH 1HHGKDP 0$ $; ; ; $ ; $; &LW\ RI 6RXWK 6DQ )UDQFLVFR $WWQ &LW\ &OHUN *UDQG $YHQXH 6RXWK 6DQ )UDQFLVFR &$ CERTIFICATE OF COVERAGE PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF EVIDENCE ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE MEMORANDUM(S) OF COVERAGE BELOW. THIS CERTIFICATE OF COVERAGE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING COVERAGE PROVIDER, AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: IF THE CERTIFICATE HOLDER IS AN ADDITIONAL COVERED PARTY, THE MEMORANDUM OF COVERAGE MUST BE ENDORSED. A STATEMENT ON THIS CERTIFICATE DOES NOT CONFER RIGHTS TO THE CERTIFICATE HOLDER IN LIEU OF SUCH ENDORSEMENT(S). IMPORTANT: IF SUBROGATION IS WAIVED, SUBJECT TO THE TERMS AND CONDITIONS OF THE MEMORANDUM(S) OF COVERAGE AN ENDORSEMENT MAY BE REQUIRED. A STATEMENT ON THE CERTIFICATE DOES NOT CONFER RIGHTS TO THE CERTIFICATE HOLDER IN LIEU OF SUCH ENDORSEMENT(S). NAMED COVERED PARTY PROGRAM AFFORDING COVERAGE A: B: C: COVERAGES THIS IS TO CERTIFY THAT THE COVERAGE IS AFFORDED TO THE ABOVE NAMED MEMBER, AS PROVIDED BY THE MEMORANDUM(S) OF COVERAGE, FOR THE PERIOD SHOWN BELOW, NOT WITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE COVERAGE AFFORDED BY THE PROGRAM DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDITIONS OF SUCH MEMORANDUM(S) OF COVERAGE. THE FOL/OWING COVERAGE IS IN EFFECT. JPA LTR TYPE OF COVERAGE MEMORANDUM NUMBER COVERAGE EFFECTIVE DATE (MM/DD/YY) COVERAGE EXPIRATION DATE (MM/DD/YY)LIMITS GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY FIRE DAMAGE (Any one fire)$ CLAIMS MADE OCCUR MED EXPENSE (Any one person)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEN’L AGGREGATE LIMIT APPLIES PER:PRODUCTS-COMP/OP AGG $ MEMOR-ANDUM PROJECT LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO $ ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS WORKERS’ COMPENSATION AND EMPLOYERS LIABILITY ANY PROPRIETOR/PARTNER/ EXECUTIVE/OFFICER/MEMBER EXCLUDED? IF YES, DESCRIBED UNDER SPECIAL PROVISION BELOW WC STATUTORY LIMITS OTHER E.L. EACH ACCIDENT $ E.L. DISEASE – EA EMPLOYEE $ E.L. DISEASE – POLICY LIMIT $ OTHER OTHER DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL/PROVISIONS CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED MEMORANDUM(S) OF COVERAGE BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE MEMORANDUM(S) OF COVERAGE PROVISIONS. AUTHORIZED REPRESENTATIVE DATE (MM/DD/YYYY) 6DQ )UDQFLVFR$OOLDQW ,QVXUDQFH 6HUYLFHV ,QF 3LQH 6W WK )O 6DQ )UDQFLVFR &$ &LW\ RI 6RXWK 6DQ )UDQFLVFR FR 3RROHG /LDELOLW\ $VVXUDQFH 1HWZRUN -3$ &UHHNVLGH 2DNV 'ULYH 6XLWH 6DFUDPHQWR &$ 3/$1 -3$ $ ; ; *$/ $ ; *$/ 3XUVXDQW WR WKH GHILQLWLRQ RI &RYHUHG 3DUW\ LQ WKH /LDELOLW\ 0HPRUDQGXP RI &RYHUDJH WKH FHUWLILFDWH KROGHU LV DQ DGGLWLRQDO FRYHUHG SDUW\ IRU FRYHUHG FODLPV DULVLQJ RXW RI WKH FRYHUHG DFWLYLW\ VWDWHG EHORZ DQG LV VXEMHFW WR WKH OLPLWV VWDWHG DERYH $V UHVSHFWV &RQQHFW 6HUYLFHV $JUHHPHQW DQG DQ\ DGGLWLRQDO 6HUYLFH 6FKHGXOHV EHWZHHQ WKH &LW\ RI 6RXWK 6DQ )UDQFLVFR DQG %LJ %HOO\ 6RODU //& %LJ %HOO\ 6RODU //& LV DQ DGGLWLRQDO FRYHUHG SDUW\ DQG ORVV SD\HH ZLWK UHJDUG WR DQ\ QHJOLJHQW DFWV RU RPLVVLRQV RI WKH &LW\ RI 6RXWK 6DQ )UDQFLVFR LWV RIILFHUV RIILFLDOV HPSOR\HHV DQG YROXQWHHUV %LJ %HOO\ 6RODU //& $WWQ .HYLQ 6FKRHQWKDOHU $ 6WUHHW 6XLWH 1HHGKDP 0$ SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. CANCELLATION © 1993-2015 ACORD CORPORATION. All rights reserved.ACORD 27 (2016/03) The ACORD name and logo are registered marks of ACORD THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. PROPERTY INFORMATION LOCATION/DESCRIPTION COVERAGE INFORMATION COVERAGE / PERILS / FORMS AMOUNT OF INSURANCE DEDUCTIBLE PHONE(A/C, No, Ext): (A/C, No):FAX E-MAILADDRESS: AGENCY THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. CUSTOMER ID #:AGENCY SUB CODE:CODE: INSURED LOAN NUMBER POLICY NUMBER TERMINATED IF CHECKED CONTINUED UNTILEXPIRATION DATEEFFECTIVE DATE THIS REPLACES PRIOR EVIDENCE DATED: COMPANY DATE (MM/DD/YYYY)EVIDENCE OF PROPERTY INSURANCE REMARKS (Including Special Conditions) MORTGAGEE ADDITIONAL INSURED LOSS PAYEE ADDITIONAL INTEREST NAME AND ADDRESS AUTHORIZED REPRESENTATIVE LOAN # PERILS INSURED BASIC BROAD SPECIAL LENDER'S LOSS PAYABLE $OOLDQW ,QVXUDQFH 6HUYLFHV ,QF 3LQH 6WUHHW WK )ORRU 6DQ )UDQFLVFR &$ /LFHQVH & VZHHNV#DOOLDQWFRP 9$5,286 3(5 $77$&+(' 6&+('8/( &LW\ RI 6RXWK 6DQ )UDQFLVFR FR 3RROHG /LDELOLW\ $VVXUDQFH 1HWZRUN -3$ &UHHNVLGH 2DNV 'ULYH 6XLWH 6DFUDPHQWR &$ $3,3 '(& ; $OO 5LVN RI 'LUHFW 3K\VLFDO /RVV RU 'DPDJH 5HDO 3URSHUW\ 3HUVRQDO 3URSHUW\ ([WUD ([SHQVH %XVLQHVV ,QWHUUXSWLRQ 5HQWDO ,QWHUUXSWLRQ 9HKLFOH &RYHUDJH $FWXDO &DVK 9DOXH 9DULRXV 6XEOLPLWV $SSO\ 6HH 3ROLF\ IRU 'HWDLOV $V UHVSHFWV &RQQHFW 6HUYLFHV $JUHHPHQW DQG DQ\ DGGLWLRQDO 6HUYLFH 6FKHGXOHV EHWZHHQ WKH &LW\ RI 6RXWK 6DQ )UDQFLVFR DQG %LJ %HOO\ 6RODU //& %LJ %HOO\ 6RODU //& LV DQ DGGLWLRQDO FRYHUHG SDUW\ DQG ORVV SD\HH ZLWK UHJDUG WR DQ\ QHJOLJHQW DFWV RU RPLVVLRQV RI WKH &LW\ RI 6RXWK 6DQ )UDQFLVFR LWV RIILFHUV RIILFLDOV HPSOR\HHV DQG YROXQWHHUV ; %LJ %HOO\ 6RODU //& $WWQ .HYLQ 6FKRHQWKDOHU $ 6WUHHW 6XLWH 1HHGKDP 0$ ALLIANT PROPERTY INSURANCE PROGRAM BOUND LIST OF CARRIERS JULY 1, 2020 TO JULY 1, 2021 Alliant Insurance Services, Inc. y 1301 Dove Street, Suite 200, Newport Beach, CA 92660 PHONE (949)756-0271 FAX (949) 756-2713 y www.alliantinsurance.com y License No. 0C36861 (as of June 26, 2020) Page 1 Arch Specialty Insurance Company Aspen Insurance UK Limited Ategrity Specialty Insurance Company Chubb European Group Limited Endurance Worldwide Insurance Limited Evanston Insurance Company Everest Indemnity Insurance Company Fidelis Underwriting Limited Hallmark Specialty Insurance Company Homeland Insurance Company of New York Interstate Fire and Casualty Ins. Co. Ironshore Specialty Insurance Company Lancashire Insurance Company (UK) Ltd. Landmark American Insurance Co. (RSUI) Lexington Insurance Company Liberty Mutual Fire Insurance Company Lloyd’s of London National Union Fire Insurance Company Partner Re Ireland Insurance Ltd Princeton Excess & Surplus Lines Ins. Co. RSUI Indemnity Company QBE Specialty Insurance Company Westport Insurance Corporation XL Insurance America, Inc. Public Entity Property Insurance Program (PEPIP) Form No.15 Page 42 of 68 AG. ADDITIONAL INSURED’S / LOSS PAYEES It is hereby understood and agreed that the interest of Additional Insured’s and/or Loss Payees is automatically included, as per schedule held on file with Alliant Insurance Services, Inc. Certificate Of Completion Envelope Id: D7F86E2B4C894D9C9DACE91DA389A982 Status: Completed Subject: Please DocuSign: Contract Routing Form Final - Bigbelly.pdf, 9.3.20_BBS_SSF_CSA_10187_FINAL_CLE... 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Certificate Of Completion Envelope Id: 3544AAB22C5B45CC8F84A4E3EF700347 Status: Completed Subject: Please DocuSign: DocuSigned CSA - Bigbelly 2020.pdf Source Envelope: Document Pages: 23 Signatures: 1 Envelope Originator: Certificate Pages: 1 Initials: 0 Marissa Garren AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 329 Miller Ave South San Francisco, CA 94080 marissa.garren@ssf.net IP Address: 209.234.100.130 Record Tracking Status: Original 9/18/2020 5:14:27 PM Holder: Marissa Garren marissa.garren@ssf.net Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: Carahsoft OBO City of South San Francisco Location: DocuSign Signer Events Signature Timestamp Rosa Govea Acosta Rosa.acosta@ssf.net City Clerk City of South San Francisco Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 67.161.78.110 Sent: 9/18/2020 5:16:11 PM Viewed: 9/18/2020 5:46:04 PM Signed: 9/18/2020 5:46:21 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/18/2020 5:16:11 PM Certified Delivered Security Checked 9/18/2020 5:46:04 PM Signing Complete Security Checked 9/18/2020 5:46:21 PM Completed Security Checked 9/18/2020 5:46:21 PM Payment Events Status Timestamps City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-130 Agenda Date:2/23/2022 Version:1 Item #:9. Report regarding a resolution to continue conducting City Council and advisory body meetings remotely due to health and safety concerns for the public and making related findings (Sky Woodruff, City Attorney) RECOMMENDATION Staff recommends that the City Council adopt a resolution to continue allowing the City Council and advisory bodies to conduct meetings remotely due to health and safety concerns for the public and making related findings in compliance with AB 361 (2021). BACKGROUND/DISCUSSION Adopted and signed into law on September 16,2021,Assembly Bill 361 (AB 361)permits local legislative bodies to meet remotely during a declared state of emergency by complying with certain statutory requirements and making certain findings relating to the ability to meet safely in person.After an initial remote meeting utilizing the provisions of AB 361,in order to continue teleconference meetings the City Council will be required to reconsider the circumstances of the emergency every 30 days that the City’s legislative bodies need to be able to continue to meet remotely in order to ensure the health and safety of the public. On September 21,2021,the City Council adopted an initial Resolution No.166-2021 making findings and declaring the need for the Council and advisory bodies to continue meeting remotely in order to ensure the health and safety of the public and authorizing remote teleconference meetings pursuant to Government Code section 54953(e).Since the adoption of those resolutions,the City Council has utilized a hybrid in- person/teleconference meeting model.During this time,the Delta and Omicron variants have surged to be a significant risk and causing case spikes throughout the state,and has also adopted subsequent resolutions to reconsider the public health emergency circumstances and making additional findings required by AB 361. State and local governments have continued to monitor and respond to the trends impacting public health circumstances.The San Mateo County Health Department and the State had previously mandated masks for everyone in indoor settings on December 15,2021 through February 15,2022.The County currently continues to require masks for everyone on public transportation,in schools and childcare settings,long term care and adult and senior care facilities,healthcare and correctional settings.The Centers for Disease Control and Prevention (“CDC”)continues to recommend physical distancing of at least six feet (6’)from others outside of the household. The Council is being asked to review the prior AB 361 findings to continue teleconference meetings under AB 361 for the City’s legislative bodies.Staff recommends that the City Council adopt a resolution to declare these findings remain true so that these bodies can continue to meet remotely. RELATIONSHIP TO THE STRATEGIC PLAN Continued use of teleconference meetings will promote community participation,contributing to the City’s Strategic Plan Priority No. 6 - Community Connections. FISCAL IMPACT City of South San Francisco Printed on 2/18/2022Page 1 of 2 powered by Legistar™ File #:22-130 Agenda Date:2/23/2022 Version:1 Item #:9. There is no fiscal impact. CONCLUSION Staff recommends that the City Council adopt a resolution to continue conducting the City’s legislative body meetings remotely due to health and safety concerns for the public and making related findings in compliance with AB 361 (2021). City of South San Francisco Printed on 2/18/2022Page 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 #:22-131 Agenda Date:2/23/2022 Version:1 Item #:9a. Resolution of the City Council of the City of South San Francisco declaring the continuing need for the City legislative bodies to meet remotely in order to ensure the health and safety of the public and making related findings. WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of COVID-19; WHEREAS, on March 11, 2020, the City Council adopted Resolution No. 35-2020 declaring a local emergency due to COVID-19; and WHEREAS, on May 13, 2020, the City Council adopted Resolution No. 57-2020 amending and updating a local emergency due to COVID-19; and WHEREAS, on March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means; and WHEREAS, as a result of Executive Order N-29-20, staff set up virtual meetings for all City Council and legislative body meetings; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21, which placed an end date of September 30, 2021, for agencies to meet remotely; and WHEREAS, since issuing Executive Order N-08-21, the Delta variant has emerged, causing a spike in COVID- 19 cases throughout the state; and WHEREAS, on August 3, 2021, in response to the Delta variant, the San Mateo County Health Department ordered all individuals to wear masks when inside public spaces and maintain social distancing; and WHEREAS, on September 16, 2021, the Governor signed Assembly Bill 361 (AB 361) (2021) which allows for local legislative bodies to continue to conduct meetings via teleconferencing under specified conditions, including that the City Council makes specified findings; and WHEREAS, since the passage of AB 361, the Omicron variant has spread across the Bay Area, the state and nationwide, causing an additional spike in COVID-19 cases and creating significantly higher risks of infection and hospitalization; City of South San Francisco Printed on 2/25/2022Page 1 of 3 powered by Legistar™ File #:22-131 Agenda Date:2/23/2022 Version:1 Item #:9a. WHEREAS, in response to the fast-spreading Omicron variant, the California Department of Public Health issued an order on December 15, 2021 requiring everyone in the state to wear masks in indoor public spaces and workplaces, which order and the County Health Department’s order are effective through February 15, 2022; and WHEREAS, the County Health Department continues to require masks for everyone on public transportation, in schools and childcare settings, long term care and adult and senior care facilities, healthcare and correctional settings; and WHEREAS, the City cannot maintain social distancing requirements for the public, staff, Councilmembers, and advisory body members in their respective meeting locations; and WHEREAS, because of the rise in cases due to the Delta and Omicron variants, the City is concerned about the health and safety of all individuals who intend to attend Council and advisory body meetings; and WHEREAS, on September 21, 2021, the City Council adopted an initial Resolution No. 166-2021 making findings and declaring the need for the Council and advisory bodies to continue meeting remotely in order to ensure the health and safety of the public and authorizing remote teleconference meetings pursuant to Government Code section 54953(e), and thereafter has both utilized a hybrid in-person/teleconference meeting model as well as adopted additional resolutions re-considering the circumstances of the public health emergency and making findings and declaring the need for the Council and advisory bodies to continue meeting remotely in order to ensure the health and safety of the public and authorizing remote teleconference meetings pursuant to Government Code section 54953(e); and WHEREAS, the City Council has again reconsidered the circumstances of the Governor’s state of emergency proclamation pursuant to Government Code section 8625, which remains active; and WHEREAS, the Centers for Disease Control and Prevention (“CDC”) continues to recommend physical distancing of at least six feet (6’) from others outside of the household; and WHEREAS, the circumstances described under Resolutions No. 166-2021 and subsequent resolutions continue to exist and the City continues to be concerned about the health and safety of all individuals who intend to attend Council and advisory body meetings; and WHEREAS, the City shall ensure that its meetings comply with the provisions required by AB 361 (2021) for holding teleconferenced meetings. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO RESOLVES AS FOLLOWS: 1.The above recitals are true and correct, and incorporated into this Resolution. 2.In compliance with AB 361 (2021), and in order to continue to conduct teleconference meetings without complying with the usual teleconference meeting requirements of the Brown Act, the City Council makes the following findings: a)The City Council has reconsidered the circumstances of the state of emergency; and City of South San Francisco Printed on 2/25/2022Page 2 of 3 powered by Legistar™ File #:22-131 Agenda Date:2/23/2022 Version:1 Item #:9a. b)The state of emergency, as declared by the Governor and City Council, continues to directly impact the ability of the City Council and the City’s advisory bodies, as well as staff and members of the public, from meeting safely in person; c)The CDC continues to recommend physical distancing of at least six feet (6’) from others outside of the household; however the City cannot maintain social distancing requirements for the Councilmembers, advisory bodies, staff and public in the meeting spaces; and d)The City Council and advisory bodies continue to need to be able to meet remotely due to present imminent risks to the health or safety of attendees. 3.City Council and City’s legislative body meetings may continue to be conducted remotely in compliance with AB 361, in order to better ensure the health and safety of the public. 4.The City Council will revisit the need to conduct meetings remotely within 30 days of the adoption of this resolution. ***** City of South San Francisco Printed on 2/25/2022Page 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 #:22-22 Agenda Date:2/23/2022 Version:1 Item #:10. Report regarding a resolution awarding a construction contract to Golden Bay Construction,Inc.of Hayward, California for the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (No. TR2001,Bid No.2655)in an amount not to exceed $167,756,authorizing a total construction contract authority budget of $201,307,and authorizing the City Manager to execute the agreement on behalf of the City. (Jeffrey Chou, Associate Civil Engineer) RECOMMENDATION Staff recommends that the City Council adopt a resolution awarding a construction contract to Golden Bay Construction,Inc.of Hayward,California for the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (No.TR2001,Bid No.2655)in an amount not to exceed $167,756,authorizing a total construction contract authority budget of $201,307,and authorizing the City Manager to execute the agreement on behalf of the City. BACKGROUND/DISCUSSION The West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (Project) improvements will consist of installing pedestrian safety improvements including advanced pedestrian striping, high visibility crosswalks, and ADA curb ramps at the following locations: ·West Orange Avenue & Canal Street ·West Orange Avenue & Myrtle Avenue ·Hillside Boulevard & Claremont Drive The Project was identified as part of the City of South San Francisco’s Systemic Safety Analysis Report (SSAR).The analysis provided a list of pedestrian crossings that would benefit from safety improvements.The factors that were reviewed include high pedestrian activity,vehicle volume and resulting potential for vehicle- pedestrian conflict,and potential for relevant safety improvements.All locations were reviewed with an in-field inspection for relevance and need.The inspection was performed to identify any issues with the existing pedestrian crossings,investigate the surrounding pedestrian generators,and confirm the need for improvements. The intersection of Hillside Blvd.&Franklin Ave.was previously identified as part of this project,but pedestrian safety improvements were completed by a different capital improvement project in 2021.With permission from Caltrans Local Assistance, Hillside Blvd. & Claremont Dr. intersection was included instead. Adding and enhancing pedestrian crossings at locations with high pedestrian activity can improve safety by alerting drivers about the presence of pedestrians.Consequently,frequency and severity of crashes would be reduced considerably.These three locations are either close to a recreational park (Orange Memorial Park)or residential areas and need to be enhanced to improve the safety and visibility of pedestrians. City of South San Francisco Printed on 2/18/2022Page 1 of 5 powered by Legistar™ File #:22-22 Agenda Date:2/23/2022 Version:1 Item #:10. Staff previously applied this project for the Cycle 9 Highway Safety Improvement Program (HSIP)and was awarded federal grant funding in the amount of $204,800 for the construction and construction engineering phases of the project. Overview of City’s Procurement Process The City’s procurement process is governed by both state and local law.State law requires contracts for construction to be competitively bid pursuant to a set of specific,established rules.In particular,the City is required to award construction contracts to the “lowest responsible bidder”after providing notice in accordance with law. (Pub. Contract Code §§ 20162, 20164.) However,in awarding contracts for the purchase of professional services,equipment and supplies,the City has some latitude.State law requires the City to adopt regulations and policies to govern such service and supplies procurement,but otherwise provides the City flexibility in determining relevant requirements as long as they are consistent with applicable state law.(Gov.Code §54202.)Chapter 4.04 of the Municipal Code and the City’s Purchasing Procedures (Administrative Instruction Section IV,No.1)govern the City’s purchasing policies and contract procurement processes. The City’s purchasing ordinance distinguishes between three primary types of procurement methods as follows: 1.Competitive Bidding for Construction Projects Public projects are specifically defined under the Public Contract Code,and generally involve any construction project that is paid with public funds or those projects involving improvements, demolition or other work on public property or facility.Public projects are required to be procured through competitive bidding and the City must award the contract to the lowest bidder whose bid complies with all of the City’s solicitation requirements and demonstrates that the bidder is able to perform the work.Under the City’s policy,different levels of competitive bidding are required depending on the dollar limit of the underlying project. For these contracts,cost is generally the sole determining factor,and the lowest responsible bidder is awarded the project even if another bidder appears to be more skilled but is more expensive. 2.Open Market Procedures for Vendors (Supplies and Equipment) Open Market Procedures is the City’s vendor selection process for purchase of goods,supplies,and professional services.These rules do not apply to,and may not be used for,public construction projects. Contracts for the purchase of goods and services that exceed $10,000 requires staff to utilize open market procedures.If the contract is $25,000 or less,staff must obtain at least three quotes,which are informal offers to perform work at a stated price.If the contract is greater than $25,000,staff will be required to solicit the project,such as issuing a Request for Proposals (“RFPs”)and obtain at least City of South San Francisco Printed on 2/18/2022Page 2 of 5 powered by Legistar™ File #:22-22 Agenda Date:2/23/2022 Version:1 Item #:10. required to solicit the project,such as issuing a Request for Proposals (“RFPs”)and obtain at least three written responses. Under this vendor selection process,cost can be only one factor in determining which vendor the City will ultimately select for services,equipment,or supplies.This requirement is similarly reflected under SSFMC § 4.04.080. Thus,when utilizing the open market vendor selection process,the City is focused on the skill, ability,and expertise of the entity or person to be able to provide the service,equipment,or goods to the City.The selection is based on competence,professional qualifications,and overall value to the City with cost being only one factor in the determination of an award. Federally Funded Procurements for Vendors (Supplies and Equipment) Contracts that receive federal funding are required to incorporate and comply with additional terms and conditions.The City’s Purchasing Procedures also provide guidance on procuring supplies and equipment contracts that are federally funded.Federally funded procurements also require a written procedure for conducting evaluations and for selecting recipients and awarding the contract to the responsible firm whose proposal is most advantageous to the City with price being only one factor.It is also important to note that federally funded procurements do not include state or local geographical preferences unless specifically authorized by federal law.Each evaluation is a non-discrimination and equal opportunity for all vendors. 3.Open Market Procedures for Architectural and Engineering (A&E) Professional Services For certain professional services such as architectural,engineering,environmental,land surveying,or construction project management,the Government Code also specifically requires that such services not be awarded solely based on price,but instead based on demonstrated competence.(Gov.Code § 4526.)Both the state law provision and the City’s policy reflect the legislative view that when acquiring such services,the City does not necessarily receive the best value when it pays the lowest price. (See e.g., California Attorney General Op. No. 94-819 (February 9, 1995)). Current Project: West Orange Ave and Hillside Blvd Pedestrian Crossing Enhancements Project, TR2001, Bid No. 2655 This project falls under Procurement Type 1: Competitive Bidding for Construction Projects. Staff advertised a notice inviting bids for the project on December 27th,2021,and January 3rd,2022.On January 26th,2022,staff received three (3)bid proposals in response to the notice inviting bids.Staff reviewed all bid proposals and identified that the lowest responsible bidder was Golden Bay Construction,Inc.of Hayward,California.Staff has verified the low bidder’s current contractor’s license with the California State Licensing Board and found it to be in good standing. The project was advertised with a “Base Bid”and “Alternative Bid”schedule.The selection of award of a City of South San Francisco Printed on 2/18/2022Page 3 of 5 powered by Legistar™ File #:22-22 Agenda Date:2/23/2022 Version:1 Item #:10. The project was advertised with a “Base Bid”and “Alternative Bid”schedule.The selection of award of a contract is based on the lowest responsive bid “for the Base Bid”schedule.The “Alternative Bid”schedule was used to separate the non-participating costs that will not be reimbursed with Federal funds,which was the bid item to adjust the water valve box cover to grade. The City also established a Disadvantaged Business Enterprise (DBE)goal of 20%since Federal funds are being utilized on the project. The following is a summary of all bids received: Contractor "Base Bid" Schedule Results “Alternative Bid" Schedule Results Total Bid Kerex Engineering, Inc. of Martinez, CA $149,848.00 $450.00 $150,298.00 Golden Bay Construction, Inc. of Hayward, CA $167,356.00 $400.00 $167,756.00 Interstate Grading & Paving, Inc. of So. San Francisco, CA $198,936.50 $1,000.00 $199,936.50 Engineer’s Estimate (by DKS Associates) $136,034.00 $700.00 $136,734.00 Although Kerex Engineering,Inc.(Kerex)submitted the lowest bid,Kerex failed to list the required Disadvantaged Business Enterprise (DBE)in the submitted “Exhibit 12B -Bidder’s List of Subcontractors (DBE and Non-DBE)”and failed to submit the required Exhibit 15-G and 15-H DBE forms within 5 days of bid opening. Based on the above, staff determined and notified Kerex that their bid is nonresponsive. Staff then reviewed the second lowest bidder (Golden Bay Construction,Inc.)and determined that its bid was responsive and responsible.Golden Bay Construction,Inc.’s bid total is about 22.7%higher than the Engineer’s Estimate.The higher cost can be attributed to the changing construction climate and rising cost in material and labor. Staff recommends awarding both the Base Bid and Alternative Bid schedules to Golden Bay Construction, Inc. The project construction budget is: Golden Bay Construction, Inc. Construction Contract $167,756 Construction Contingency (20%)$33,551 Total Project Construction Budget $201,307 City of South San Francisco Printed on 2/18/2022Page 4 of 5 powered by Legistar™ File #:22-22 Agenda Date:2/23/2022 Version:1 Item #:10. The construction contingency will be used for any additional costs related to design changes during the construction operations. FISCAL IMPACT This project (CIP No.TR2001)is included in the City of South San Francisco’s fiscal year 2021-2022 Capital Improvements Program.There are sufficient funds in FY 2021-2022 to cover the total construction contract costs, which includes $204,000 of Highway Safety Improvement Program (HSIP) Federal funds. 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. CONCLUSION Awarding the construction contract to Golden Bay Construction,Inc.of Hayward,California,for the West Orange Ave and Hillside Blvd Pedestrian Crossing Enhancements Project will improve the safety and visibility of pedestrians. Attachments: 1.Project Locations Map City of South San Francisco Printed on 2/18/2022Page 5 of 5 powered by Legistar™ PROJECT LOCATIONS MAP Attachment 1 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-23 Agenda Date:2/23/2022 Version:1 Item #:10a. Resolution awarding a construction contract to Golden Bay Construction,Inc.of Hayward,California for the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (No.TR2001,Bid No. 2655)in an amount not to exceed $167,756,authorizing a total construction contract authority budget of $201,307, and authorizing the City Manager to execute the agreement on behalf of the City. WHEREAS,the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project (“Project”)will improve the safety and visibility of pedestrians at the intersections of West Orange Avenue & Canal Street, West Orange Avenue & Myrtle Avenue, and Hillside Boulevard & Claremont Drive; and WHEREAS,the City issued a notice inviting bids for the project on December 27,2021,and January 3,2022, and on January 26, 2022, staff received three (3) bid proposals in response; and WHEREAS,Kerex Engineering,Inc.of Martinez,California submitted the lowest bid,but the bid was determined to be nonresponsive; and WHEREAS,Golden Bay Construction,Inc.of Hayward,California was the lowest responsible bidder and provided competitive unit prices; and WHEREAS,staff recommends awarding the construction contract to Golden Bay Construction,Inc.of Hayward,California in an amount not to exceed $167,756,which is the total for the base bid plus the bid alternate; and WHEREAS,staff also requests the City Council to authorize a construction contract authority budget of $167,756, with additional $33,551 contingency, totaling a construction budget of $201,307 for the Project; and WHEREAS,the Project is included in the City of South San Francisco’s fiscal year 2021-22 Capital Improvement Program (Project No.TR2001)with sufficient funds in FY 2021-2022 to cover the initial construction costs through the end of the current fiscal year; and NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of South San Francisco that the City Council hereby awards a construction contract,a draft of which is attached hereto and incorporated herein as City of South San Francisco Printed on 2/25/2022Page 1 of 2 powered by Legistar™ File #:22-23 Agenda Date:2/23/2022 Version:1 Item #:10a. Council hereby awards a construction contract,a draft of which is attached hereto and incorporated herein as Exhibit A,for the West Orange Avenue and Hillside Boulevard Pedestrian Crossing Enhancements Project to Golden Bay Construction,Inc.of Hayward,California,in an amount not to exceed $167,756 conditioned on Golden Bay Construction,Inc.’s timely execution of the Project contract and submission of all required documents,including but not limited to,certificates of insurance and endorsement,in accordance with the Project documents. BE IT FURTHER RESOLVED the City Council authorizes a total construction contract authority budget of $201,307 and authorizes the City Manager to utilize unspent amount of the total Project budget,if necessary, towards additional construction contingency budget. BE IT FURTHER RESOLVED that the City Engineer is hereby authorized to approve the plans and specifications for said project on behalf of the City. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the construction contract in substantially the same form as Exhibit A and any other related documents on behalf of the City upon timely submission by Golden Bay Construction,Inc.of the signed contract and all other documents,subject to approval by the City Attorney. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take any other related actions consistent with the intention of the resolution. ***** City of South San Francisco Printed on 2/25/2022Page 2 of 2 powered by Legistar™ Page A-1 of 9 EXHIBIT A DRAFT AGREEMENT FOR PUBLIC IMPROVEMENTS THIS AGREEMENT made and entered into this ____, day of ______, _____, between the CITY OF SOUTH SAN FRANCISCO, a municipal corporation and political subdivision of the State of California, hereinafter called “CITY”, and Golden Bay Construction, Inc., hereinafter called “CONTRACTOR”1. W I T N E S S E T H: WHEREAS, City has taken appropriate proceedings to authorize construction of the public work and improvements herein provided and execution of this contract. WHEREAS, a notice was duly published for bids for the contract for the improvements hereinafter described. WHEREAS, on ____________, notice duly given, the City Council (“Council”) of said City awarded the contract for the construction of the improvements hereinafter described to the Contractor, which Contractor said Council found to be the lowest responsible bidder for said improvements. WHEREAS, City and Contractor desire to enter into this agreement for the construction of said improvements pursuant to the terms, definitions, and conditions set forth in the General Provisions and other Contract Documents. IT IS AGREED as follows: 1. Scope of Work. Contractor shall perform the Work described briefly as follows: The Work consists of the furnishing of all labor, materials, tools, equipment, and services necessary for the construction of the WEST ORANGE AVENUE AND HILLSIDE BOULEVARD PEDESTRIAN CROSSING ENHANCEMENTS PROJECT; in accordance with the Contract Documents. Also included are any such other items or details not mentioned above that are required by the Contract Documents, which are to be constructed or furnished and installed as shown on the plans, as specified herein and as directed by the Engineer. The aforementioned improvements are further described in the "Contract Documents" hereinafter referred to. 2. The Contract Documents. The complete Contract consists of the following documents: (A) Notice Inviting Bids (B) Part I – Submitted Proposal (as accepted) 1.1The term "Contractor" as used herein is employed without distinction as to either number or gender and shall include whenever the context shall permit all agents, representatives, employees, servants, subcontractors and business or social invitees. Page A-2 of 9 (C) This Agreement, including Contractor’s Payment Bond, Faithful Performance Bond and Guaranty Bond. (D) Part II – General Conditions (E) Part III – Special Provisions: Special Conditions and Technical Specifications, including State Standard Specifications dated 2018, sections 10-99, as revised in Revised Standard Specifications (RSS) dated November 19, 2020. (F) Part IV – Project Plans, approved November 22, 2021 (G) Administrative subsections of the State Standard Specifications dated 2018, as specifically referenced in contract Parts I-IV and as revised in RSS dated November 19, 2020. All rights and obligations of City and Contractor are fully set forth and described in the contract documents. All of the above-named documents are intended to cooperate, so that any work called for in one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. The documents comprising the complete contract will hereinafter be referred to as “the Contract Documents.” 3. Equipment - Performance of Work. Contractor shall furnish all tools, equipment, apparatus, facilities, labor, and materials necessary to perform and complete in a good and workmanlike manner the Work of general construction as called for, and for the manner designated in, and in strict conformity with, the plans and specifications for said Work entitled: WEST ORANGE AVENUE AND HILLSIDE BOULEVARD PEDESTRIAN CROSSING ENHANCEMENTS PROJECT The equipment, apparatus, facilities, labor, and materials shall be furnished and said Work performed and completed as required in said plans and specifications under the direction and supervision and subject to the approval of the Engineer of said City or the Engineer’s designated assistant. 4. Contract Price. City shall pay, and Contractor shall accept, in full payment for the Work agreed to be done the sum of One Hundred Sixty Seven Thousand Seven Hundred Fifty-Six Dollars ($167,756.00) ($). Said price is determined by the lump sum price contained in Contractor's bid proposal (“Bid”). The lump sum price and unit prices are set forth in the completed Bid forms attached hereto and made a part hereof as if set forth herein verbatim. In the event work is performed or materials furnished in addition to those set forth in Contractor's bid and the specifications herein, such work and materials will be paid for at the unit prices therein contained. Said amount shall be paid in installments as hereinafter provided. 5. Rights of City to Increase Working Days. If such Work is not completed within the time specified, the Engineer shall have the right to increase the number of working days in the amount it may determine will best serve the interest of the City. If it desires to increase said number of working days, it shall have the further right to charge to Contractor and deduct from the final payment for the Work the actual cost of engineering, inspection, superintendence, and other overhead expenses which are directly chargeable to Contractor and which accrue during the period of such extension, except that the cost of the final service and preparation of the final estimates shall not be included in such charges, provided, however, that no extension of time for the completion of such Work shall be allowed unless at least Page A-3 of 9 twenty (20) calendar days prior to the time herein fixed for the completion thereof or the time fixed by the Engineer for such completion as extended, Contractor shall have filed application for extension thereof, in writing with the Engineer. 6. Option of City to Terminate Agreement in Event of Failure to Complete Work. If at any time in the opinion of the Engineer, the Contractor has refused or failed to prosecute the Work or any severable part thereof, with such diligence as will insure its work, or any completion within the time specified, or any extensions thereof, or shall have failed to complete said work within such time, or if Contractor should be adjudged a bankrupt, or if Contractor should make a general assignment for the benefit of Contractor's creditors, or if a receiver should be appointed in the event of Contractor's insolvency, or if Contractor, or any Subcontractor, should violate any of the provisions of this Agreement, the Engineer may give written notice to Contractor, and Contractor's sureties of its intention to terminate this Agreement, such notice to contain the reasons for such intention to terminate this Agreement, and unless within five calendar (5) days after the serving of such notice, such violation shall cease and satisfactory arrangements for the correction thereof be made, this Agreement may, at the option of City, upon expiration of said time, cease and terminate. Any excess of cost arising therefrom over and above the contract price will be charged against the Contractor and the Contractor’s sureties who will be liable therefore. In the event of such termination, all money due the Contractor or retained under the terms of this contract shall be forfeited to the City; but such forfeiture will not release the Contractor or the Contractor’s sureties from liability or failure to fulfill the contract. The Contractor and the Contractor’s sureties will be credited with the amount of money so forfeited toward any excess of cost over and above the contract price, arising from the suspension termination of the operations of the contract and the completion of the Work by the City as above provided, and the Contractor will be so credited with any surplus remaining after all just claims for such completion have been paid. In the determination of the question whether there has been any such noncompliance with the contract as to warrant the suspension termination or annulment thereof, the decision of the Engineer shall be binding on all parties to the contract. 7. Termination of Contract for Convenience. The City also reserves the right to terminate the contract at any time upon a determination by the Engineer in the Engineer's sole discretion that termination of the contract is in the best interest of the City. If the City elects to terminate the contract for convenience, the termination of the contract and the total compensation payable to the Contractor shall be governed by the following: (A) The City will issue the Contractor a written notice signed by the Engineer, specifying that the contract is terminated. Upon receipt of said written notice, the Contractor will be relieved of further responsibility for damage to the Work (excluding materials) as specified in Section VII-17, "Contractor's Responsibility for the Work," of the General Conditions and, except as otherwise directed in writing by the Engineer, the Contractor shall: (1) Stop all work under the contract except that specifically directed to be completed prior to acceptance. (2) Perform work the Engineer deems necessary to secure the project for termination. (3) Remove equipment and plant from the site of the Work. (4) Take such action as is necessary to protect materials from damage. Page A-4 of 9 (5) Notify all subcontractors and suppliers that the contract is being terminated and that their contracts or orders are not to be further performed unless otherwise authorized in writing by the Engineer. (6) Provide the Engineer with an inventory list of all materials previously produced, purchased or ordered from suppliers for use in the Work and not yet used in the Work, including its storage location, and such other information as the Engineer may request. (7) Dispose of materials not yet used in the Work as directed by the Engineer. It shall be the Contractor's responsibility to provide the City with good title to all materials purchased by the City hereunder, including materials for which partial payment has been made as provided in Section IX-2, “Progress Payments,” of the General Conditions and with bills of sale or other documents of title for such materials. (8) Subject to the prior written approval of the Engineer, settle all outstanding liabilities and all claims arising out of subcontracts or orders for materials terminated hereunder. To the extent directed by the Engineer, the Contractor shall assign to the City all the right, title, and interest of the Contractor under subcontracts or orders for materials terminated hereunder. (9) Furnish the Engineer with the documentation required to be furnished by the Contractor under the provisions of the contract, including, on projects as to which Federal and State funds are involved, all documentation required under the Federal and State requirements included in the contract. (10) Take such other actions as the Engineer may direct. (B) Acceptance of the contract as hereinafter specified shall not relieve the Contractor of responsibility for damage to materials. The Contractor shall continue to be responsible for damage to materials after issuance of the Notice of Termination, except as follows: (1) The Contractor’s responsibility for damage to materials for which partial payment has been made as provided in Section IX-2, “Progress Payments,” of the General Conditions and for materials furnished by the City for use in the Work and unused shall terminate when the Engineer certifies that such materials have been stored in the manner and at the locations the Engineer has directed. (2) The Contractor’s responsibility for damage to materials purchased by the City subsequent to the issuance of the notice that the contract is to be terminated shall terminate when title and delivery of such materials has been taken by the City. (3) When the Engineer determines that the Contractor has completed the Work under the contract directed to be completed prior to termination and such other work as may have been ordered to secure the project for termination, the Contractor will recommend that the Engineer formally accept the contract to the extent performed, and immediately upon and after such acceptance by the Engineer, the Contractor will not be required to perform any further Work thereon and shall be relieved of the Contractor's contractual responsibilities for injury to persons or property which occurs after the formal acceptance of the project by the Engineer. (C) Termination of the contract shall not relieve the surety of its obligation for any just claims arising out of the work performed. Page A-5 of 9 (D) The total compensation to be paid to the Contractor shall be determined by the Engineer on the basis of the following: (1) The reasonable cost to the Contractor, without profit, for all work performed under the contract, including mobilization, demobilization and work done to secure the project for termination. In determining the reasonable cost, deductions will be made for the cost of materials to be retained by the Contractor, amounts realized by the sale of materials, and for other appropriate credits against the cost of the work. When, in the opinion of the Engineer, the cost of a contract item of work is excessively high due to costs incurred to remedy or replace defective or rejected work, the reasonable cost to be allowed will be the estimated reasonable cost of performing such work in compliance with the requirements of the plans and specifications and the excessive actual cost shall be disallowed. (2) A reasonable allowance for profit on the cost of the work performed as determined under Subsection (1), provided the Contractor establishes to the satisfaction of the Engineer that it is reasonably probable that the Contractor would have made a profit had the contract been completed and provided further, that the profit allowed shall in no event exceed four (4) percent of said cost. (3) The reasonable cost to the Contractor of handling material returned to the vendor, delivered to the City, or otherwise disposed of as directed by the Engineer. (4) A reasonable allowance for the Contractor’s administrative costs in determining the amount payable due to termination of the contract. (5) A reasonable credit to the City for defective or incomplete work not corrected. All records of the Contractor and subcontractors necessary to determine compensation in accordance with the provisions of this Section 5 shall be open to inspection or audit by representatives of the City at all times after issuance of the Notice of Termination and for a period of three (3) years, thereafter, and such records shall be retained for that period. After acceptance of the Work by the Engineer, the Engineer may make payments on the basis of interim estimates pending issuance of the Final Estimate in accordance with Section IX-7, “Final Payment,” of the General Conditions when, in the Engineer's opinion, the amount thus paid, together with all amounts previously paid or allowed, will not result in total compensation in excess of that to which the Contractor will be entitled. All payments, including payment upon the Final Estimate shall be subject to deduction for prior payments and amounts, if any, to be kept or retained under the provisions of the contract. If this contract is terminated by the City for cause, and it is later determined that the proper basis for a termination for cause did not exist, the termination shall be deemed to have been a termination for convenience and governed by the terms of this contract dealing with such termination. If the contract is terminated by the City for cause or convenience, such termination shall neither act as a waiver by the City of its right to require the Contractor to correct defects in the Work performed by the Contractor nor void any warranties applicable to the Work performed under the contract. The provisions of this Section 5 shall be included in all subcontracts. Page A-6 of 9 In the event of conflict between the termination provisions of this Section 8 and any other provision or the contract, this Section 5 shall prevail. 8. Performance by Sureties. In the event of any termination as herein before provided, City shall immediately give written notice thereof to Contractor and Contractor's sureties and the sureties shall have the right to take over and perform the Agreement, provided, however, that if the sureties, within five (5) working days after giving them said notice of termination, do not give the City written notice of their intention to take over the performance of the Agreement and do not commence performance thereof within five (5) working days after notice to the City of such election, City may take over the Work and prosecute the same to completion by contract or by any other method it may deem advisable, for the account, and at the expense, of Contractor, and the sureties shall be liable to City for any excess cost or damages occasioned City thereby; and, in such event, City may, without liability for so doing, take possession of and utilize in completing the Work such materials, appliances, plant, and other property belonging to Contractor as may be on the site of the Work and necessary therefore. Should Contractor contract in an individual capacity, the surety bond shall contain the following provision: “Should Contractor contract in the Contractor’s individual capacity, the death of the Contractor shall not relieve the surety of its obligations.” 9. Hold-Harmless Agreement and Contractor's Insurance. Contractor agrees to, and shall, hold City, its elective and appointive boards, officers, agents, and employees harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims for property damage which may arise from Contractor's or any of Subcontractor's operations under this Agreement, whether such operations be by Contractor or by any Subcontractor or Subcontractors, or by any one or more persons directly or indirectly employed by, or acting as agent for, Contractor or any Subcontractor or Subcontractors. Contractor agrees to, and shall, defend City and its elective and appointive boards, officers, agents, and employees from any suits or actions at law or in equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid operations, provided as follows: (A) The City does not, and shall not, waive any rights against Contractor which it may have by reason of the aforesaid hold-harmless agreement, because of the acceptance by City, or the deposit with City by Contractor, of any of the insurance policies hereinafter described in Paragraph 15, “Insurance” hereof. (B) That the aforesaid hold-harmless agreement by Contractor shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations of Contractor or any Subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 10. Insurance. The Contractor shall take out and maintain during the life of this Agreement the following policies of insurance: (A) Workers' Compensation and Employers' Liability Insurance providing full statutory coverage. In signing this Agreement, the Contractor makes the following certification, required by Section 1861 of the California Labor Code: "I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and Page A-7 of 9 I will comply with such provisions before commencing the performance of the work of this contract". (B) Comprehensive General Liability Insurance. Public Liability Insurance (includes premises, elevator - if applicable, products, completed operations, personal injury and contractual): (1) Bodily Injury Liability: $ 500,000 each person $1,000,000 each occurrence (2) Property Damage Liability [includes XCU (explosion, collapse, and underground damage); water damage and broad form property damage or third party liability]: $ 500,000 per occurrence (C) Comprehensive Automobile Liability Insurance (includes owned, non-owned, and hired vehicles): (1) Bodily Injury Liability: $ 500,000 per person $1,000,000 each occurrence (2) Property Damage Liability: $ 500,000 each occurrence (D) It is agreed that the insurance required by Subsections B and C, in an aggregate amount of not less than ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000), shall be extended to include as additional insured the City of South San Francisco, its elective and appointive boards, commissions, officers, agents, employees, with respect to operations performed by the Contractor, as described herein. Evidence of this insurance described above shall be provided to City upon execution of this Agreement and shall be subject to approval of the City Attorney as to form, amount, and carrier. The policy of insurance shall also contain a provision indicating that such insurance shall not be reduced or cancelled except upon thirty (30) calendar days written notice to City. In addition, the following endorsement shall be made on said policy of insurance: "The following are named as additional insured on the above policies: The City of South San Francisco, its elective and appointive boards, officers, agents, and employees." "Notwithstanding any other provision in this policy, the insurance afforded hereunder to the City of South San Francisco shall be primary as to any other insurance or re-insurance covering or available to the City of South San Francisco, and such other insurance or reinsurance shall not be required to contribute to any liability or loss until and unless the approximate limit of liability afforded hereunder is exhausted." The above requirements that the City be named as additional insured, that the insurance shall be primary to any other, and that the insurance not be cancelled without notice, shall be provided in the form of an endorsement signed by an authorized representative of the insurance company providing coverage, who shall declare his or her authority to sign on behalf of the insurer. Page A-8 of 9 11. Proof of Carriage of Insurance. Contractor shall furnish City through the Engineer, concurrently with the execution hereof, with satisfactory proof of carriage of the insurance required and that each carrier shall give City at least thirty (30) calendar days prior notice of the cancellation or change of any policy during the effective period of this contract. Further, if the Contractor’s insurance policy includes a self-insured retention that must be paid by a named insured as a precondition of the insurer’s liability, or which has the effect of providing that payments of the self-insured retention by others, including additional insureds or insurers do not serve to satisfy the self-insured retention, such provisions must be modified by special endorsement so as to not apply to the additional insured coverage required by this agreement so as to not prevent any of the parties to this agreement from satisfying or paying the self- insured retention required to be paid as a precondition to the insurer’s liability. Additionally, the certificates of insurance must note whether the policy does or does not include any self-insured retention and also must disclose the deductible. 12. Provisions Cumulative. The provisions of this Agreement are cumulative, and in addition to and not in limitation of, any other rights or remedies available to City. 13. Form FHWA 1273. For a Federal-aid contract, form FHWA-1273 is included in this Agreement as Attachment B. Comply with its provisions. Interpret the training and promotion section as specified in section 7-1.11A of the State Standard Specifications. 14. Federal Minimum Wage Rates – For a Federal-aid contract, federal minimum wage rates apply and are included in the Agreement as Attachment C. 15. Appendix E of the Title VI Assurances. For a Federal-aid contract, federal nondiscrimination requirements (entitled appendix R of the Title VI Assurances) apply and are incorporated into this Agreement as Attachment D. 16. Notices. All notices shall be in writing and delivered in person or transmitted by certified mail, postage prepaid. Notices required to be given to City shall be addressed as follows: City Clerk City Hall, 400 Grand Avenue South San Francisco, California 94080 Notices required to be given to Contractor shall be addressed as follows: _________________________________________________________________________ _________________________________________________________________________ Notices required to be given sureties of Contractor shall be addressed as follows: _________________________________________________________________________ Notices required to be given to the Escrow Agent of Contractor, if any, shall be addressed as follows: _________________________________________________________________________ Page A-9 of 9 17. Interpretation. As used herein, any gender includes each other gender, the singular includes the plural, and vice versa. Page A-10 of 9 IN WITNESS WHEREOF, two (2) identical counterparts of this Agreement, consisting of twelve (12) pages (being pages A-1 through A-12), each of which counterparts shall for all purposes be deemed an original of said Agreement, have been duly executed by the parties hereinabove named, on the day and year first hereinabove written. CITY OF SOUTH SAN FRANCISCO,CONTRACTOR: A Municipal Corporation ____________________________________ ____________________________________ By:_______________________________ Mike Futrell, City Manager By:_________________________________ (If Contractor is an individual, so state. If Contractor is a Corporation, a corporate seal or signatures of the President or Vice President and the Secretary Treasurer are required). APPROVED AS TO FORM: ____________________________ City Attorney ATTEST: _______________________________ City Clerk ATTACHMENT A ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION THIS ESCROW AGREEMENT is made and entered into by and between the City of South San Francisco whose address is 400 Grand Ave., P.O. Box 711, South San Francisco, CA 94083, hereinafter referred to as "City," and ________________________________________,whose address is ___________________________________________________________, hereinafter called “Contractor” and ______________________________________________________________,whose address is ___________________________________________________________, hereinafter called “Escrow Agent.” For the consideration hereinafter set forth, the Owner, Contractor, and Escrow Agent agree as follows: 1. Pursuant to Section 22300 of the Public Contract Code of the State of California, Contractor has the option to deposit securities with Escrow Agent as a substitute for retention earnings required to be withheld by Owner pursuant to the Construction Contract entered into between the Owner and Contractor for __________________ in the amount of _______________dollars ($_____) dated ___________ (hereinafter referred to as the “Contract”). Alternately, on written request of the Contractor, the Owner shall make payments of the retention earnings directly to the Escrow Agent. When the Contractor deposits the securities as a substitute for Contract earnings, the Escrow Agent shall notify the Owner within 10 working days of the deposit. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention under the terms of the Contract between the Owner and Contractor. Securities shall be held in the name of _______________, and shall designate the Contractor as the beneficial owner. 2. The Owner shall make progress payments to the Contractor for those funds which otherwise would be withheld from progress payments pursuant to the Contract provisions, provided that the Escrow Agent holds securities in the form and amount specified above. 3. When the Owner makes payment of retentions earned directly to the Escrow Agent, the Escrow Agent shall hold them for the benefit of the Contractor until the time that the escrow created under this contract is terminated. The Contractor may direct the investment of the payments into securities. All terms and conditions of this agreement and the rights and responsibilities of the parties shall be equally applicable and binding when the Owner pays the Escrow Agent directly. 4. Contractor shall be responsible for paying all fees for the expenses incurred by Escrow Agent in administering the Escrow Account and all expenses of the Owner. These expenses and payment terms shall be determined by the Owner, Contractor, and Escrow Agent. 5. The interest earned on the securities or the money market accounts held in escrow and all interest earned on that interest shall be for the sole account of Contractor and shall be subject to withdrawal by Contractor at any time and from time to time without notice to the Owner. 6. Contractor shall have the right to withdraw all or any part of the principal in the Escrow Account only by written notice to Escrow Agent accompanied by written authorization from the Owner to the Escrow Agent that Owner consents to the withdrawal of the amount sought to be withdrawn by Contractor. 7. The Owner shall have a right to draw upon the securities in the event of default by the Contractor. Upon seven day’s written notice to the Escrow Agent from the Owner of the default, the Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the Owner. 8. Upon receipt of written notification from the Owner certifying that the Contract is final and complete, and that the Contractor has complied with all requirements and procedures applicable to the Contract, Escrow Agent shall release to Contractor all securities and interest on deposit less escrow fees and charges of the Escrow Account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payments of fees and charges. 9. Escrow Agent shall rely on the written notifications from the Owner and the Contractor pursuant to Sections (5) to (8), inclusive, of this Agreement, and the Owner and Contractor shall hold Escrow Agent harmless from Escrow Agent’s release and disbursement of the securities and interest as set forth above. 10. The names of the persons who are authorized to give written notice or to receive written notice on behalf of the Owner and on behalf of Contractor in connection with the foregoing, and exemplars of their respective signatures are as follows: On behalf of Owner: On behalf of Contractor: __________________________________ __________________________________ Title Title __________________________________ __________________________________ Name Name __________________________________ __________________________________ Signature Signature __________________________________ __________________________________ Address Address On behalf of Escrow Agent: __________________________________ Title __________________________________ Name __________________________________ Signature __________________________________ Address At the time the Escrow Account is opened, the Owner and Contractor shall deliver to the Escrow Agent a fully executed counterpart of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above. Owner: Contractor: __________________________________ __________________________________ Title Title __________________________________ __________________________________ Name Name __________________________________ __________________________________ Signature Signature Approved as to form: Attest: _____________________________________ __________________________________ City Attorney Date City Clerk ATTACHMENT B FORM 1273 Page 1 of 24 July 2016 FHWA-1273 -- Revised May 1, 2012 REQUIRED CONTRACT PROVISIONS FEDERAL-AID CONSTRUCTION CONTRACTS I. General II. Nondiscrimination III. Nonsegregated Facilities IV. Davis-Bacon and Related Act Provisions V. Contract Work Hours and Safety Standards Act Provisions VI. Subletting or Assigning the Contract VII. Safety: Accident Prevention VIII. False Statements Concerning Highway Projects IX. Implementation of Clean Air Act and Federal Water Pollution Control Act X. Compliance with Governmentwide Suspension and Debarment Requirements XI. Certification Regarding Use of Contract Funds for Lobbying ATTACHMENTS A. Employment and Materials Preference for Appalachian Development Highway System or Appalachian Local Access Road Contracts (included in Appalachian contracts only) I. GENERAL 1. Form FHWA-1273 must be physically incorporated in each construction contract funded under Title 23 (excluding emergency contracts solely intended for debris removal). The contractor (or subcontractor) must insert this form in each subcontract and further require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services). The applicable requirements of Form FHWA-1273 are incorporated by reference for work done under any purchase order, rental agreement or agreement for other services. The prime contractor shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider. Form FHWA-1273 must be included in all Federal-aid design-build contracts, in all subcontracts and in lower tier subcontracts (excluding subcontracts for design services, purchase orders, rental agreements and other agreements for supplies or services). The design-builder shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider. Contracting agencies may reference Form FHWA-1273 in bid proposal or request for proposal documents, however, the Form FHWA-1273 must be physically incorporated (not referenced) in all contracts, subcontracts and lower-tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services related to a construction contract). 2. Subject to the applicability criteria noted in the following sections, these contract provisions shall apply to all work performed on the contract by the contractor's own organization and with the assistance of workers under the contractor's immediate superintendence and to all work performed on the contract by piecework, station work, or by subcontract. 3. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final payment, termination of the contract, suspension / debarment or any other action determined to be appropriate by the contracting agency and FHWA. 4. Selection of Labor: During the performance of this contract, the contractor shall not use convict labor for any purpose within the limits of a construction project on a Federal-aid highway unless it is labor performed by convicts who are on parole, supervised release, or probation. The term Federal-aid highway does not include roadways functionally classified as local roads or rural minor collectors. II. NONDISCRIMINATION The provisions of this section related to 23 CFR Part 230 are applicable to all Federal-aid construction contracts and to all related construction subcontracts of $10,000 or more. The provisions of 23 CFR Part 230 are not applicable to material supply, engineering, or architectural service contracts. In addition, the contractor and all subcontractors must comply with the following policies: Executive Order 11246, 41 CFR 60, 29 CFR 1625- 1627, Title 23 USC Section 140, the Rehabilitation Act of 1973, as amended (29 USC 794), Title VI of the Civil Rights Act of 1964, as amended, and related regulations including 49 CFR Parts 21, 26 and 27; and 23 CFR Parts 200, 230, and 633. The contractor and all subcontractors must comply with: the requirements of the Equal Opportunity Clause in 41 CFR 60-1.4(b) and, for all construction contracts exceeding $10,000, the Standard Federal Equal Employment Opportunity Construction Contract Specifications in 41 CFR 60-4.3. Note: The U.S. Department of Labor has exclusive authority to determine compliance with Executive Order 11246 and the policies of the Secretary of Labor including 41 CFR 60, and 29 CFR 1625-1627. The contracting agency and the FHWA have the authority and the responsibility to ensure compliance with Title 23 USC Section 140, the Rehabilitation Act of 1973, as amended (29 USC 794), and Title VI of the Civil Rights Act of 1964, as amended, and related regulations including 49 CFR Parts 21, 26 and 27; and 23 CFR Parts 200, 230, and 633. The following provision is adopted from 23 CFR 230, Appendix A, with appropriate revisions to conform to the U.S. Department of Labor (US DOL) and FHWA requirements. 1. Equal Employment Opportunity: Equal employment opportunity (EEO) requirements not to discriminate and to take affirmative action to assure equal opportunity as set forth under laws, executive orders, rules, regulations (28 CFR 35, 29 CFR 1630, 29 CFR 1625-1627, 41 CFR 60 and 49 CFR 27) and orders of the Secretary of Labor as modified by the provisions prescribed herein, and imposed pursuant to 23 U.S.C. 140 shall constitute the EEO and specific affirmative action standards for the contractor's project activities under this contract. The provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) set forth under 28 CFR 35 and 29 CFR 1630 are incorporated by reference in this contract. In the execution of this contract, the contractor agrees to comply with the following minimum specific requirement activities of EEO: a. The contractor will work with the contracting agency and the Federal Government to ensure that it has made every good faith effort to provide equal opportunity with respect to all of its terms and conditions of employment and in their review of activities under the contract. b. The contractor will accept as its operating policy the following statement: "It is the policy of this Company to assure that applicants are employed, and that employees are treated during employment, without regard to their race, religion, sex, color, national origin, age or disability. Such action shall include: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship, pre-apprenticeship, and/or on- the-job training." 2. EEO Officer: The contractor will designate and make known to the contracting officers an EEO Officer who will have the responsibility for and must be capable of effectively administering and promoting an active EEO program and who must be assigned adequate authority and responsibility to do so Page 1 of 24 July 2016 3. Dissemination of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote, and discharge employees, or who recommend such action, or who are substantially involved in such action, will be made fully cognizant of, and will implement, the contractor's EEO policy and contractual responsibilities to provide EEO in each grade and classification of employment. To ensure that the above agreement will be met, the following actions will be taken as a minimum: a. Periodic meetings of supervisory and personnel office employees will be conducted before the start of work and then not less often than once every six months, at which time the contractor's EEO policy and its implementation will be reviewed and explained. The meetings will be conducted by the EEO Officer. b. All new supervisory or personnel office employees will be given a thorough indoctrination by the EEO Officer, covering all major aspects of the contractor's EEO obligations within thirty days following their reporting for duty with the contractor. c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minorities and women. d. Notices and posters setting forth the contractor's EEO policy will be placed in areas readily accessible to employees, applicants for employment and potential employees. e. The contractor's EEO policy and the procedures to implement such policy will be brought to the attention of employees by means of meetings, employee handbooks, or other appropriate means. 4. Recruitment: When advertising for employees, the contractor will include in all advertisements for employees the notation: "An Equal Opportunity Employer." All such advertisements will be placed in publications having a large circulation among minorities and women in the area from which the project work force would normally be derived. a. The contractor will, unless precluded by a valid bargaining agreement, conduct systematic and direct recruitment through public and private employee referral sources likely to yield qualified minorities and women. To meet this requirement, the contractor will identify sources of potential minority group employees, and establish with such identified sources procedures whereby minority and women applicants may be referred to the contractor for employment consideration. b. In the event the contractor has a valid bargaining agreement providing for exclusive hiring hall referrals, the contractor is expected to observe the provisions of that agreement to the extent that the system meets the contractor's compliance with EEO contract provisions. Where implementation of such an agreement has the effect of discriminating against minorities or women, or obligates the contractor to do the same, such implementation violates Federal nondiscrimination provisions. c. The contractor will encourage its present employees to refer minorities and women as applicants for employment. Information and procedures with regard to referring such applicants will be discussed with employees. 5. Personnel Actions: Wages, working conditions, and employee benefits shall be established and administered, and personnel actions of every type, including hiring, upgrading, promotion, transfer, demotion, layoff, and termination, shall be taken without regard to race, color, religion, sex, national origin, age or disability. The following procedures shall be followed: a. The contractor will conduct periodic inspections of project sites to insure that working conditions and employee facilities do not indicate discriminatory treatment of project site personnel. b. The contractor will periodically evaluate the spread of wages paid within each classification to determine any evidence of discriminatory wage practices. c. The contractor will periodically review selected personnel actions in depth to determine whether there is evidence of discrimination. Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may extend beyond the actions reviewed, such corrective action shall include all affected persons. d. The contractor will promptly investigate all complaints of alleged discrimination made to the contractor in connection with its obligations under this contract, will attempt to resolve such complaints, and will take appropriate corrective action within a reasonable time. If the investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other persons. Upon completion of each investigation, the contractor will inform every complainant of all of their avenues of appeal. 6. Training and Promotion: a. The contractor will assist in locating, qualifying, and increasing the skills of minorities and women who are applicants for employment or current employees. Such efforts should be aimed at developing full journey level status employees in the type of trade or job classification involved. b. Consistent with the contractor's work force requirements and as permissible under Federal and State regulations, the contractor shall make full use of training programs, i.e., apprenticeship, and on-the-job training programs for the geographical area of contract performance. In the event a special provision for training is provided under this contract, this subparagraph will be superseded as indicated in the special provision. The contracting agency may reserve training positions for persons who receive welfare assistance in accordance with 23 U.S.C. 140(a). c. The contractor will advise employees and applicants for employment of available training programs and entrance requirements for each. d. The contractor will periodically review the training and promotion potential of employees who are minorities and women and will encourage eligible employees to apply for such training and promotion. 7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will use good faith efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. Actions by the contractor, either directly or through a contractor's association acting as agent, will include the procedures set forth below: a. The contractor will use good faith efforts to develop, in cooperation with the unions, joint training programs aimed toward qualifying more minorities and women for membership in the unions and increasing the skills of minorities and women so that they may qualify for higher paying employment. b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, religion, sex, national origin, age or disability. Page 2 of 24 July 2016 c. The contractor is to obtain information as to the referral practices and policies of the labor union except that to the extent such information is within the exclusive possession of the labor union and such labor union refuses to furnish such information to the contractor, the contractor shall so certify to the contracting agency and shall set forth what efforts have been made to obtain such information. d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the time limit set forth in the collective bargaining agreement, the contractor will, through independent recruitment efforts, fill the employment vacancies without regard to race, color, religion, sex, national origin, age or disability; making full efforts to obtain qualified and/or qualifiable minorities and women. The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive referrals under the terms of a collective bargaining agreement) does not relieve the contractor from the requirements of this paragraph. In the event the union referral practice prevents the contractor from meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall immediately notify the contracting agency. 8. Reasonable Accommodation for Applicants / Employees with Disabilities: The contractor must be familiar with the requirements for and comply with the Americans with Disabilities Act and all rules and regulations established there under. Employers must provide reasonable accommodation in all employment activities unless to do so would cause an undue hardship. 9. Selection of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not discriminate on the grounds of race, color, religion, sex, national origin, age or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The contractor shall take all necessary and reasonable steps to ensure nondiscrimination in the administration of this contract. a. The contractor shall notify all potential subcontractors and suppliers and lessors of their EEO obligations under this contract. b. The contractor will use good faith efforts to ensure subcontractor compliance with their EEO obligations. 10. Assurance Required by 49 CFR 26.13(b): a. The requirements of 49 CFR Part 26 and the State DOT’s U.S. DOT-approved DBE program are incorporated by reference. b. The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the contracting agency deems appropriate. 11. Records and Reports: The contractor shall keep such records as necessary to document compliance with the EEO requirements. Such records shall be retained for a period of three years following the date of the final payment to the contractor for all contract work and shall be available at reasonable times and places for inspection by authorized representatives of the contracting agency and the FHWA. a. The records kept by the contractor shall document the following: (1) The number and work hours of minority and non-minority group members and women employed in each work classification on the project; (2) The progress and efforts being made in cooperation with unions, when applicable, to increase employment opportunities for minorities and women; and (3) The progress and efforts being made in locating, hiring, training, qualifying, and upgrading minorities and women; b. The contractors and subcontractors will submit an annual report to the contracting agency each July for the duration of the project, indicating the number of minority, women, and non- minority group employees currently engaged in each work classification required by the contract work. This information is to be reported on Form FHWA-1391. The staffing data should represent the project work force on board in all or any part of the last payroll period preceding the end of July. If on-the-job training is being required by special provision, the contractor will be required to collect and report training data. The employment data should reflect the work force on board during all or any part of the last payroll period preceding the end of July. III. NONSEGREGATED FACILITIES This provision is applicable to all Federal-aid construction contracts and to all related construction subcontracts of $10,000 or more. The contractor must ensure that facilities provided for employees are provided in such a manner that segregation on the basis of race, color, religion, sex, or national origin cannot result. The contractor may neither require such segregated use by written or oral policies nor tolerate such use by employee custom. The contractor's obligation extends further to ensure that its employees are not assigned to perform their services at any location, under the contractor's control, where the facilities are segregated. The term "facilities" includes waiting rooms, work areas, restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms, and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing provided for employees. The contractor shall provide separate or single-user restrooms and necessary dressing or sleeping areas to assure privacy between sexes. IV. DAVIS-BACON AND RELATED ACT PROVISIONS This section is applicable to all Federal-aid construction projects exceeding $2,000 and to all related subcontracts and lower-tier subcontracts (regardless of subcontract size). The requirements apply to all projects located within the right-of-way of a roadway that is functionally classified as Federal-aid highway. This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. Contracting agencies may elect to apply these requirements to other projects. The following provisions are from the U.S. Department of Labor regulations in 29 CFR 5.5 “Contract provisions and related matters” with minor revisions to conform to the FHWA-1273 format and FHWA program requirements. 1. Minimum wages a. All laborers and mechanics employed or working upon the site of the work, will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on Page 3 of 24 July 2016 any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph 1.d. of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph 1.b. of this section) and the Davis-Bacon poster (WH–1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. b. (1) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (i) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (ii) The classification is utilized in the area by the construction industry; and (iii) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (2) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (3) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Wage and Hour Administrator for determination. The Wage and Hour Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (4) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs 1.b.(2) or 1.b.(3) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. c. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. d. If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. 2. Withholding The contracting agency shall upon its own action or upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract, or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the contracting agency may, after written notice to the contractor, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. 3. Payrolls and basic records a. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or Page 4 of 24 July 2016 mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. b. (1) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the contracting agency. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee ( e.g. , the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the contracting agency for transmission to the State DOT, the FHWA or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the contracting agency.. (2) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (i) That the payroll for the payroll period contains the information required to be provided under §5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under §5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; (ii) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (iii) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (3) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH–347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph 3.b.(2) of this section. (4) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. c. The contractor or subcontractor shall make the records required under paragraph 3.a. of this section available for inspection, copying, or transcription by authorized representatives of the contracting agency, the State DOT, the FHWA, or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the FHWA may, after written notice to the contractor, the contracting agency or the State DOT, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. 4. Apprentices and trainees a. Apprentices (programs of the USDOL). Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice Page 5 of 24 July 2016 classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. b. Trainees (programs of the USDOL). Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. c. Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. d. Apprentices and Trainees (programs of the U.S. DOT). Apprentices and trainees working under apprenticeship and skill training programs which have been certified by the Secretary of Transportation as promoting EEO in connection with Federal-aid highway construction programs are not subject to the requirements of paragraph 4 of this Section IV. The straight time hourly wage rates for apprentices and trainees under such programs will be established by the particular programs. The ratio of apprentices and trainees to journeymen shall not be greater than permitted by the terms of the particular program. 5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. 6. Subcontracts. The contractor or subcontractor shall insert Form FHWA-1273 in any subcontracts and also require the subcontractors to include Form FHWA-1273 in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. 7. Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. 8. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. 9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives. 10. Certification of eligibility. a. By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). c. The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. V. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT The following clauses apply to any Federal-aid construction contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. 1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. Page 6 of 24 July 2016 2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (1.) of this section, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1.) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (1.) of this section. 3. Withholding for unpaid wages and liquidated damages. The FHWA or the contacting agency shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally- assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2.) of this section. 4. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (1.) through (4.) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (1.) through (4.) of this section. VI. SUBLETTING OR ASSIGNING THE CONTRACT This provision is applicable to all Federal-aid construction contracts on the National Highway System. 1. The contractor shall perform with its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere in the contract) of the total original contract price, excluding any specialty items designated by the contracting agency. Specialty items may be performed by subcontract and the amount of any such specialty items performed may be deducted from the total original contract price before computing the amount of work required to be performed by the contractor's own organization (23 CFR 635.116). a. The term “perform work with its own organization” refers to workers employed or leased by the prime contractor, and equipment owned or rented by the prime contractor, with or without operators. Such term does not include employees or equipment of a subcontractor or lower tier subcontractor, agents of the prime contractor, or any other assignees. The term may include payments for the costs of hiring leased employees from an employee leasing firm meeting all relevant Federal and State regulatory requirements. Leased employees may only be included in this term if the prime contractor meets all of the following conditions: (1) the prime contractor maintains control over the supervision of the day-to-day activities of the leased employees; (2) the prime contractor remains responsible for the quality of the work of the leased employees; (3) the prime contractor retains all power to accept or exclude individual employees from work on the project; and (4) the prime contractor remains ultimately responsible for the payment of predetermined minimum wages, the submission of payrolls, statements of compliance and all other Federal regulatory requirements. b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid or propose on the contract as a whole and in general are to be limited to minor components of the overall contract. 2. The contract amount upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured products which are to be purchased or produced by the contractor under the contract provisions. 3. The contractor shall furnish (a) a competent superintendent or supervisor who is employed by the firm, has full authority to direct performance of the work in accordance with the contract requirements, and is in charge of all construction operations (regardless of who performs the work) and (b) such other of its own organizational resources (supervision, management, and engineering services) as the contracting officer determines is necessary to assure the performance of the contract. 4. No portion of the contract shall be sublet, assigned or otherwise disposed of except with the written consent of the contracting officer, or authorized representative, and such consent when given shall not be construed to relieve the contractor of any responsibility for the fulfillment of the contract. Written consent will be given only after the contracting agency has assured that each subcontract is evidenced in writing and that it contains all pertinent provisions and requirements of the prime contract. 5. The 30% self-performance requirement of paragraph (1) is not applicable to design-build contracts; however, contracting agencies may establish their own self-performance requirements. VII. SAFETY: ACCIDENT PREVENTION This provision is applicable to all Federal-aid construction contracts and to all related subcontracts. 1. In the performance of this contract the contractor shall comply with all applicable Federal, State, and local laws governing safety, health, and sanitation (23 CFR 635). The contractor shall provide all safeguards, safety devices and protective equipment and take any other needed actions as it determines, or as the contracting officer may determine, to be reasonably necessary to protect the life and health of employees on the job and the safety of the public and to protect property in connection with the performance of the work covered by the contract. 2. It is a condition of this contract, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this contract, that the contractor and any subcontractor shall not permit any employee, in performance of the contract, to work in surroundings or under conditions which are unsanitary, hazardous or dangerous to his/her health or safety, as determined under construction safety and health standards (29 CFR 1926) promulgated by the Secretary of Labor, in accordance with Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704). 3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the Secretary of Labor or authorized representative thereof, shall have right of entry to any site of contract performance to inspect Page 7 of 24 July 2016 or investigate the matter of compliance with the construction safety and health standards and to carry out the duties of the Secretary under Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C.3704). VIII. FALSE STATEMENTS CONCERNING HIGHWAY PROJECTS This provision is applicable to all Federal-aid construction contracts and to all related subcontracts. In order to assure high quality and durable construction in conformity with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppliers, and workers on Federal-aid highway projects, it is essential that all persons concerned with the project perform their functions as carefully, thoroughly, and honestly as possible. Willful falsification, distortion, or misrepresentation with respect to any facts related to the project is a violation of Federal law. To prevent any misunderstanding regarding the seriousness of these and similar acts, Form FHWA- 1022 shall be posted on each Federal-aid highway project (23 CFR 635) in one or more places where it is readily available to all persons concerned with the project: 18 U.S.C. 1020 reads as follows: "Whoever, being an officer, agent, or employee of the United States, or of any State or Territory, or whoever, whether a person, association, firm, or corporation, knowingly makes any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the cost thereof in connection with the submission of plans, maps, specifications, contracts, or costs of construction on any highway or related project submitted for approval to the Secretary of Transportation; or Whoever knowingly makes any false statement, false representation, false report or false claim with respect to the character, quality, quantity, or cost of any work performed or to be performed, or materials furnished or to be furnished, in connection with the construction of any highway or related project approved by the Secretary of Transportation; or Whoever knowingly makes any false statement or false representation as to material fact in any statement, certificate, or report submitted pursuant to provisions of the Federal-aid Roads Act approved July 1, 1916, (39 Stat. 355), as amended and supplemented; Shall be fined under this title or imprisoned not more than 5 years or both." IX. IMPLEMENTATION OF CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT This provision is applicable to all Federal-aid construction contracts and to all related subcontracts. By submission of this bid/proposal or the execution of this contract, or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, or subcontractor, as appropriate, will be deemed to have stipulated as follows: 1. That any person who is or will be utilized in the performance of this contract is not prohibited from receiving an award due to a violation of Section 508 of the Clean Water Act or Section 306 of the Clean Air Act. 2. That the contractor agrees to include or cause to be included the requirements of paragraph (1) of this Section X in every subcontract, and further agrees to take such action as the contracting agency may direct as a means of enforcing such requirements. X. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, consultant contracts or any other covered transaction requiring FHWA approval or that is estimated to cost $25,000 or more – as defined in 2 CFR Parts 180 and 1200. 1. Instructions for Certification – First Tier Participants: a. By signing and submitting this proposal, the prospective first tier participant is providing the certification set out below. b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. c. The certification in this clause is a material representation of fact upon which reliance was placed when the contracting agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the contracting agency may terminate this transaction for cause of default. d. The prospective first tier participant shall provide immediate written notice to the contracting agency to whom this proposal is submitted if any time the prospective first tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. e. The terms "covered transaction," "debarred," "suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180 and 1200. “First Tier Covered Transactions” refers to any covered transaction between a grantee or subgrantee of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a grantee or subgrantee of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers). f. The prospective first tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. Page 8 of 24 July 2016 g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions," provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the Excluded Parties List System website (https://www.epls.gov/), which is compiled by the General Services Administration. i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. * * * * * 2. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – First Tier Participants: a. The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals: (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency; (2) Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this certification; and (4) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. 2. Instructions for Certification - Lower Tier Participants: (Applicable to all subcontracts, purchase orders and other lower tier transactions requiring prior FHWA approval or estimated to cost $25,000 or more - 2 CFR Parts 180 and 1200) a. By signing and submitting this proposal, the prospective lower tier is providing the certification set out below. b. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department, or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. c. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. d. The terms "covered transaction," "debarred," "suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180 and 1200. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. “First Tier Covered Transactions” refers to any covered transaction between a grantee or subgrantee of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a grantee or subgrantee of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers). e. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the Excluded Parties List System website (https://www.epls.gov/), which is compiled by the General Services Administration. Page 9 of 24 July 2016 h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. * * * * * Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower Tier Participants: 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency. 2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. * * * * * XI. CERTIFICATION REGARDING USE OF CONTRACT FUNDS FOR LOBBYING This provision is applicable to all Federal-aid construction contracts and to all related subcontracts which exceed $100,000 (49 CFR 20). 1. The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 2. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 3. The prospective participant also agrees by submitting its bid or proposal that the participant shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such recipients shall certify and disclose accordingly. Page 1 of 24 July 2016 ATTACHMENT C FEDERAL MINIMUM WAGE RATES (01/01/2021) Page 1 of 24 July 2016 "General Decision Number: CA20210018 01/01/2021 Superseded General Decision Number: CA20200018 State: California Construction Types: Building, Heavy (Heavy and Dredging) and Highway Counties: Alameda, Calaveras, Contra Costa, Fresno, Kings, Madera, Mariposa, Merced, Monterey, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Stanislaus and Tuolumne Counties in California. BUILDING CONSTRUCTION PROJECTS; DREDGING PROJECTS (does not include hopper dredge work); HEAVY CONSTRUCTION PROJECTS (does not include water well drilling); HIGHWAY CONSTRUCTION PROJECTS Note: Under Executive Order (EO) 13658, an hourly minimum wage of $10.95 for calendar year 2021 applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2015. If this contract is covered by the EO, the contractor must pay all workers in any classification listed on this wage determination at least $10.95 per hour (or the applicable wage rate listed on this wage determination, if it is higher) for all hours spent performing on the contract in calendar year 2021. If this contract is covered by the EO and a classification considered necessary for performance of work on the contract does not appear on this wage determination, the contractor must pay workers in that classification at least the wage rate determined through the conformance process set forth in 29 CFR 5.5(a)(1)(ii) (or the EO minimum wage rate, if it is higher than the conformed wage rate). The EO minimum wage rate will be adjusted annually. Please note that this EO applies to the above-mentioned types of contracts entered into by the federal government that are subject to the Davis-Bacon Act itself, but it does not apply to contracts subject only to the Davis-Bacon Related Acts, including those set forth at 29 CFR 5.1(a)(2)-(60). Additional information on contractor requirements and worker protections under the EO is available at www.dol.gov/whd/govcontracts. Modification Number Publication Date 0 01/01/2021 ASBE0016-004 01/01/2019 AREA 1: CALAVERAS, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, MONTEREY, SAN BENITO, SAN JOAQUIN, SANTA CRUZ, STANISLAUS & TOULMNE COUNTIES AREA 2: ALAMEDA, CONTRA COSTA, SAN FRANSICO, SAN MATEO & SANTA CLARA COUNTIES Rates Fringes Asbestos Removal worker/hazardous material handler (Includes preparation, wetting, stripping, removal, scrapping, vacuuming, bagging and disposing of all insulation materials from mechanical systems, whether they contain asbestos or not) Area 1......................$ 28.20 9.27 Page 2 of 24 July 2016 Area 2......................$ 36.53 9.27 ---------------------------------------------------------------- ASBE0016-008 01/01/2020 AREA 1: ALAMEDA, CONTRA COSTA, MONTEREY, SAN BENITO, SAN FRANSICO, SAN MATEO, SANTA CLARA, & SANTA CRUZ AREA 2: CALAVERAS, COLUSA, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAU, & TUOLUMNE Rates Fringes Asbestos Workers/Insulator (Includes the application of all insulating materials, Protective Coverings, Coatings, and Finishes to all types of mechanical systems) Area 1......................$ 71.16 23.39 Area 2......................$ 54.26 23.39 ---------------------------------------------------------------- BOIL0549-001 10/01/2016 AREA 1: ALAMEDA, CONTRA COSTA, SAN FRANCISCO, SAN MATEO & SANTA CLARA COUNTIES AREA 2: REMAINING COUNTIES Rates Fringes BOILERMAKER Area 1......................$ 43.28 37.91 Area 2......................$ 39.68 35.71 ---------------------------------------------------------------- BRCA0003-001 08/01/2020 Rates Fringes MARBLE FINISHER..................$ 36.53 17.08 ---------------------------------------------------------------- BRCA0003-003 08/01/2020 Rates Fringes MARBLE MASON.....................$ 51.30 28.47 ---------------------------------------------------------------- BRCA0003-005 05/01/2020 Rates Fringes BRICKLAYER ( 1) Fresno, Kings, Madera, Mariposa, Merced....$ 43.68 22.19 ( 7) San Francisco, San Mateo.......................$ 47.65 26.77 ( 8) Alameda, Contra Costa, San Benito, Santa Clara.......................$ 49.42 22.70 ( 9) Calaveras, San Joaquin, Stanislaus, Toulumne....................$ 45.12 21.55 (16) Monterey, Santa Cruz...$ 45.88 25.02 ---------------------------------------------------------------- BRCA0003-008 07/01/2019 Rates Fringes TERRAZZO FINISHER................$ 37.58 17.33 TERRAZZO WORKER/SETTER...........$ 48.53 26.84 ---------------------------------------------------------------- BRCA0003-011 04/01/2019 AREA 1: Alameda, Contra Costa, Monterey, San Benito, San Page 3 of 24 July 2016 Francisco, San Mateo, Santa Clara, Santa Cruz AREA 2: Calaveras, San Joaquin, Stanislaus, Tuolumne AREA 3: Fresno, Kings, Madera, Mariposa, Merced Rates Fringes TILE FINISHER Area 1......................$ 29.94 16.38 Area 2......................$ 25.60 14.30 Area 3......................$ 26.58 15.65 Tile Layer Area 1......................$ 49.90 19.16 Area 2......................$ 42.67 16.81 Area 3......................$ 40.27 18.58 ---------------------------------------------------------------- CARP0022-001 07/01/2020 San Francisco County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 52.80 30.82 Journeyman Carpenter........$ 52.65 30.82 Millwright..................$ 52.75 32.41 ---------------------------------------------------------------- CARP0034-001 07/01/2020 Rates Fringes Diver Assistant Tender, ROV Tender/Technician...........$ 51.90 34.02 Diver standby...............$ 58.09 34.02 Diver Tender................$ 57.09 34.02 Diver wet...................$ 101.42 34.02 Manifold Operator (mixed gas)........................$ 62.09 34.02 Manifold Operator (Standby).$ 57.09 34.02 DEPTH PAY (Surface Diving): 050 to 100 ft $2.00 per foot 101 to 150 ft $3.00 per foot 151 to 220 ft $4.00 per foot 221 ft.-deeper $5.00 per foot SATURATION DIVING: The standby rate shall apply until saturation starts. The saturation diving rate applies when divers are under pressure continuously until work task and decompression are complete. The diver rate shall be paid for all saturation hours. DIVING IN ENCLOSURES: Where it is necessary for Divers to enter pipes or tunnels, or other enclosures where there is no vertical ascent, the following premium shall be paid: Distance traveled from entrance 26 feet to 300 feet: $1.00 per foot. When it is necessary for a diver to enter any pipe, tunnel or other enclosure less than 48"" in height, the premium will be Page 4 of 24 July 2016 $1.00 per foot. WORK IN COMBINATION OF CLASSIFICATIONS: Employees working in any combination of classifications within the diving crew (except dive supervisor) in a shift are paid in the classification with the highest rate for that shift. ---------------------------------------------------------------- CARP0034-003 07/01/2020 Rates Fringes Piledriver.......................$ 51.90 34.02 ---------------------------------------------------------------- CARP0035-007 07/01/2019 AREA 1: Alameda, Contra Costa, San Francisco, San Mateo, Santa Clara counties AREA 2: Monterey, San Benito, Santa Cruz Counties AREA 3: Calaveras, Fresno, Kings, Madera, Mariposa, Merced, San Joaquin, Stanislaus, Tuolumne Counties Rates Fringes Modular Furniture Installer Area 1 Installer I................$ 27.46 22.14 Installer II...............$ 22.18 20.42 Lead Installer.............$ 30.91 22.64 Master Installer...........$ 35.13 22.64 Area 2 Installer I................$ 24.81 22.14 Installer II...............$ 20.01 20.42 Lead Installer.............$ 27.78 22.64 Master Installer...........$ 31.41 22.64 Area 3 Installer I................$ 23.86 22.14 Installer II...............$ 19.24 20.42 Lead Installer.............$ 26.66 22.64 Master Installer...........$ 30.08 22.64 ---------------------------------------------------------------- CARP0035-008 08/01/2019 AREA 1: Alameda, Contra Costa, San Francisco, San Mateo, Santa Clara counties AREA 2: Monterey, San Benito, Santa Cruz Counties AREA 3: San Joaquin AREA 4: Calaveras, Fresno, Kings, Madera, Mariposa, Merced, Stanislaus, Tuolumne Counties Rates Fringes Drywall Installers/Lathers: Area 1......................$ 50.50 30.64 Area 2......................$ 44.62 30.64 Area 3......................$ 41.02 29.15 Area 4......................$ 43.77 30.64 Drywall Stocker/Scrapper Area 1......................$ 25.25 17.86 Area 2......................$ 22.31 17.86 Area 3......................$ 20.51 16.88 Area 4......................$ 21.89 17.86 ---------------------------------------------------------------- CARP0152-001 07/01/2020 Contra Costa County Page 5 of 24 July 2016 Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 52.80 30.82 Journeyman Carpenter........$ 52.65 30.82 Millwright..................$ 52.75 32.41 ---------------------------------------------------------------- CARP0152-002 07/01/2020 San Joaquin County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 46.92 30.82 Journeyman Carpenter........$ 46.77 30.82 Millwright..................$ 49.27 32.41 ---------------------------------------------------------------- CARP0152-004 07/01/2020 Calaveras, Mariposa, Merced, Stanislaus and Tuolumne Counties Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 45.57 30.82 Journeyman Carpenter........$ 45.42 30.82 Millwright..................$ 47.92 32.41 ---------------------------------------------------------------- CARP0217-001 07/01/2020 San Mateo County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 52.80 30.82 Journeyman Carpenter........$ 52.65 30.82 Millwright..................$ 52.75 32.41 ---------------------------------------------------------------- CARP0405-001 07/01/2020 Santa Clara County Page 6 of 24 July 2016 Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 52.80 30.82 Journeyman Carpenter........$ 52.65 30.82 Millwright..................$ 52.75 32.41 ---------------------------------------------------------------- CARP0405-002 07/01/2020 San Benito County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 46.92 30.82 Journeyman Carpenter........$ 46.77 30.82 Millwright..................$ 49.27 32.41 ---------------------------------------------------------------- CARP0505-001 07/01/2020 Santa Cruz County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 46.92 30.82 Journeyman Carpenter........$ 46.77 30.82 Millwright..................$ 49.27 32.41 ---------------------------------------------------------------- CARP0605-001 07/01/2020 Monterey County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 46.92 30.82 Journeyman Carpenter........$ 46.77 30.82 Millwright..................$ 49.27 32.41 ---------------------------------------------------------------- CARP0701-001 07/01/2020 Fresno and Madera Counties Page 7 of 24 July 2016 Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 45.57 30.82 Journeyman Carpenter........$ 45.42 30.82 Millwright..................$ 47.92 32.41 ---------------------------------------------------------------- CARP0713-001 07/01/2020 Alameda County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 52.80 30.82 Journeyman Carpenter........$ 52.65 30.82 Millwright..................$ 52.75 32.41 ---------------------------------------------------------------- CARP1109-001 07/01/2020 Kings County Rates Fringes Carpenters Bridge Builder/Highway Carpenter...................$ 52.65 30.82 Hardwood Floorlayer, Shingler, Power Saw Operator, Steel Scaffold & Steel Shoring Erector, Saw Filer.......................$ 45.57 30.82 Journeyman Carpenter........$ 45.42 30.82 Millwright..................$ 47.92 32.41 ---------------------------------------------------------------- ELEC0006-004 12/01/2018 SAN FRANCISCO COUNTY Rates Fringes Sound & Communications Installer...................$ 40.52 3%+19.05 Technician..................$ 46.60 3%+19.05 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway Page 8 of 24 July 2016 systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0006-007 06/01/2020 SAN FRANCISCO COUNTY Rates Fringes ELECTRICIAN......................$ 78.00 3%+35.96 ---------------------------------------------------------------- ELEC0100-002 09/01/2020 FRESNO, KINGS, AND MADERA COUNTIES Rates Fringes ELECTRICIAN......................$ 40.00 24.85 ---------------------------------------------------------------- ELEC0100-005 12/01/2019 FRESNO, KINGS, MADERA Rates Fringes Communications System Installer...................$ 35.25 20.86 Technician..................$ 40.54 21.02 SCOPE OF WORK Includes the installation testing, service and maintenance, of the following systems which utilize the transmission and/or transference of voice, sound, vision and digital for commercial, education, security and entertainment purposes for the following: TV monitoring and surveillance, background-foreground music, intercom and telephone interconnect, inventory control systems, microwave transmission, multi-media, multiplex, nurse call system, radio page, school intercom and sound, burglar alarms, and low voltage master clock systems. A. SOUND AND VOICE TRANSMISSION/TRANSFERENCE SYSTEMS Background foreground music, Intercom and telephone interconnect systems, Telephone systems Nurse call systems, Radio page systems, School intercom and sound systems, Burglar alarm systems, Low voltage, master clock systems, Multi-media/multiplex systems, Sound and musical entertainment systems, RF systems, Antennas and Wave Guide, B. FIRE ALARM SYSTEMS Installation, wire pulling and testing C. TELEVISION AND VIDEO SYSTEMS Television monitoring and surveillance systems Video security systems, Video entertainment systems, Video educational systems, Microwave transmission systems, CATV and CCTV D. SECURITY SYSTEMS Perimeter security systems Vibration sensor systems Card access systems Access control systems, Sonar/infrared monitoring equipment E. COMMUNICATIONS SYSTEMS THAT TRANSMIT OR RECEIVE INFORMATION AND/OR CONTROL SYSTEMS THAT ARE INTRINSIC TO THE ABOVE LISTED SYSTEMS SCADA (Supervisory Control and Page 9 of 24 July 2016 Data Acquisition) PCM (Pulse Code Modulation) Inventory Control Systems, Digital Data Systems Broadband and Baseband and Carriers Point of Sale Systems, VSAT Data Systems Data Communication Systems RF and Remote Control Systems, Fiber Optic Data Systems WORK EXCLUDED Raceway systems are not covered (excluding Ladder-Rack for the purpose of the above listed systems). Chases and/or nipples (not to exceed 10 feet) may be installed on open wiring systems. Energy management systems. SCADA (Supervisory Control and Data Acquisition) when not intrinsic to the above listed systems (in the scope). Fire alarm systems when installed in raceways (including wire and cable pulling) shall be performed at the electrician wage rate, when either of the following two (2) conditions apply: 1. The project involves new or major remodel building trades construction. 2. The conductors for the fire alarm system are installed in conduit. ---------------------------------------------------------------- ELEC0234-001 12/23/2019 MONTEREY, SAN BENITO AND SANTA CRUZ COUNTIES Rates Fringes ELECTRICIAN Zone A......................$ 51.47 26.64 Zone B......................$ 56.62 26.80 Zone A: All of Santa Cruz, Monterey, and San Benito Counties within 25 air miles of Highway 1 and Dolan Road in Moss Landing, and an area extending 5 miles east and west of Highway 101 South to the San Luis Obispo County Line Zone B: Any area outside of Zone A ---------------------------------------------------------------- ELEC0234-003 12/01/2019 MONTEREY, SAN BENITO, AND SANTA CRUZ COUNTIES Rates Fringes Sound & Communications Installer...................$ 42.93 21.09 Technician..................$ 49.37 21.28 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are Page 10 of 24 July 2016 installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0302-001 02/25/2019 CONTRA COSTA COUNTY Rates Fringes CABLE SPLICER....................$ 60.48 26.06 ELECTRICIAN......................$ 53.76 25.86 ---------------------------------------------------------------- ELEC0302-003 12/01/2019 CONTRA COSTA COUNTY Rates Fringes Sound & Communications Installer...................$ 40.31 21.01 Technician..................$ 46.36 21.19 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0332-001 06/01/2020 SANTA CLARA COUNTY Rates Fringes CABLE SPLICER....................$ 82.25 40.66 ELECTRICIAN......................$ 71.52 40.34 FOOTNOTES: Work under compressed air or where gas masks are required, orwork on ladders, scaffolds, stacks, ""Bosun's chairs,"" or other structures and where the workers are not protected by permanent guard rails at a distance of 40 to 60 ft. from the ground or supporting structures: to be paid one and one-half times the straight-time rate of pay. Work on structures of 60 ft. or over (as described above): to be paid twice the straight-time rate of pay. ---------------------------------------------------------------- ELEC0332-003 12/01/2019 SANTA CLARA COUNTY Rates Fringes Sound & Communications Installer...................$ 42.93 21.08 Technician..................$ 49.37 21.28 Page 11 of 24 July 2016 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0595-001 06/01/2020 ALAMEDA COUNTY Rates Fringes CABLE SPLICER....................$ 69.00 3%+38.52 ELECTRICIAN......................$ 60.00 3%+38.52 ---------------------------------------------------------------- ELEC0595-002 06/01/2020 CALAVERAS AND SAN JOAQUIN COUNTIES Rates Fringes CABLE SPLICER....................$ 48.00 7.75%+25.33 ELECTRICIAN (1) Tunnel work.............$ 42.00 7.75%+25.33 (2) All other work.........$ 40.00 7.75%+25.33 ---------------------------------------------------------------- ELEC0595-006 12/01/2019 ALAMEDA COUNTY Rates Fringes Sound & Communications Installer...................$ 42.93 3%+20.22 Technician..................$ 53.66 3%+20.22 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways Page 12 of 24 July 2016 (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0595-008 12/01/2019 CALAVERAS AND SAN JOAQUIN COUNTIES Rates Fringes Communications System Installer...................$ 35.25 3%+20.22 Technician..................$ 44.06 3%+20.22 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0617-001 06/01/2020 SAN MATEO COUNTY Rates Fringes ELECTRICIAN......................$ 66.00 39.77 ---------------------------------------------------------------- * ELEC0617-003 12/01/2020 SAN MATEO COUNTY Rates Fringes Sound & Communications Installer...................$ 45.50 22.52 Technician..................$ 52.33 22.72 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' Page 13 of 24 July 2016 above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC0684-001 06/01/2020 MARIPOSA, MERCED, STANISLAUS AND TUOLUMNE COUNTIES Rates Fringes ELECTRICIAN......................$ 41.00 3%+24.58 CABLE SPLICER = 110% of Journeyman Electrician ---------------------------------------------------------------- ELEC0684-004 12/01/2019 MARIPOSA, MERCED, STANISLAUS AND TUOLUMNE COUNTIES Rates Fringes Communications System Installer...................$ 35.25 20.86 Technician..................$ 40.54 21.02 SCOPE OF WORK: Including any data system whose only function is to transmit or receive information; excluding all other data systems or multiple systems which include control function or power supply; inclusion or exclusion of terminations and testings of conductors determined by their function; excluding fire alarm work when installed in raceways (including wire and cable pulling) and when performed on new or major remodel building projects or jobs for which the conductors for the fire alarm system are installed in conduit; excluding installation of raceway systems, line voltage work, industrial work, life-safety systems (all buildings having floors located more than 75' above the lowest floor level having building access); excluding energy management systems. FOOTNOTE: Fire alarm work when installed in raceways (including wire and cable pulling), on projects which involve new or major remodel building construction, for which the conductors for the fire alarm system are installed in the conduit, shall be performed by the inside electrician. ---------------------------------------------------------------- ELEC1245-001 06/01/2020 Rates Fringes LINE CONSTRUCTION (1) Lineman; Cable splicer..$ 59.14 20.78 (2) Equipment specialist (operates crawler tractors, commercial motor vehicles, backhoes, trenchers, cranes (50 tons and below), overhead & underground distribution line equipment)...........$ 47.24 19.59 (3) Groundman...............$ 36.12 19.19 (4) Powderman...............$ 51.87 18.79 Page 14 of 24 July 2016 HOLIDAYS: New Year's Day, M.L. King Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day and day after Thanksgiving, Christmas Day ---------------------------------------------------------------- ELEV0008-001 01/01/2020 Rates Fringes ELEVATOR MECHANIC................$ 69.78 34.765+a+b FOOTNOTE: a. PAID VACATION: Employer contributes 8% of regular hourly rate as vacation pay credit for employees with more than 5 years of service, and 6% for 6 months to 5 years of service. b. PAID HOLIDAYS: New Years Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, Friday after Thanksgiving, and Christmas Day. ---------------------------------------------------------------- ENGI0003-001 06/29/2020 ""AREA 1"" WAGE RATES ARE LISTED BELOW ""AREA 2"" RECEIVES AN ADDITIONAL $2.00 PER HOUR ABOVE AREA 1 RATES. SEE AREA DEFINITIONS BELOW Rates Fringes OPERATOR: Power Equipment (AREA 1:) GROUP 1.....................$ 51.42 31.15 GROUP 2.....................$ 49.89 31.15 GROUP 3.....................$ 48.41 31.15 GROUP 4.....................$ 47.03 31.15 GROUP 5.....................$ 45.76 31.15 GROUP 6.....................$ 44.44 31.15 GROUP 7.....................$ 43.30 31.15 GROUP 8.....................$ 42.16 31.15 GROUP 8-A...................$ 39.95 31.15 OPERATOR: Power Equipment (Cranes and Attachments - AREA 1:) GROUP 1 Cranes.....................$ 52.30 31.15 Oiler......................$ 43.79 31.15 Truck crane oiler..........$ 46.08 31.15 GROUP 2 Cranes.....................$ 50.54 31.15 Oiler......................$ 42.83 31.15 Truck crane oiler..........$ 45.07 31.15 GROUP 3 Cranes.....................$ 48.80 31.15 Hydraulic..................$ 44.44 31.15 Oiler......................$ 42.55 31.15 Truck crane oiler..........$ 44.83 31.15 GROUP 4 Cranes.....................$ 45.76 31.15 OPERATOR: Power Equipment (Piledriving - AREA 1:) GROUP 1 Lifting devices............$ 52.64 31.15 Oiler......................$ 43.38 31.15 Truck Crane Oiler..........$ 45.66 31.15 Page 15 of 24 July 2016 GROUP 2 Lifting devices............$ 50.82 31.15 Oiler......................$ 43.11 31.15 Truck Crane Oiler..........$ 45.41 31.15 GROUP 3 Lifting devices............$ 49.14 31.15 Oiler......................$ 42.89 31.15 Truck Crane Oiler..........$ 45.12 31.15 GROUP 4 Lifting devices............$ 47.37 31.15 GROUP 5 Lifting devices............$ 44.73 31.15 GROUP 6 Lifting devices............$ 42.50 31.15 OPERATOR: Power Equipment (Steel Erection - AREA 1:) GROUP 1 Cranes.....................$ 53.27 31.15 Oiler......................$ 43.72 31.15 Truck Crane Oiler..........$ 45.95 31.15 GROUP 2 Cranes.....................$ 51.50 31.15 Oiler......................$ 43.45 31.15 Truck Crane Oiler..........$ 45.73 31.15 GROUP 3 Cranes.....................$ 50.02 31.15 Hydraulic..................$ 45.07 31.15 Oiler......................$ 43.23 31.15 Truck Crane Oiler..........$ 45.46 31.15 GROUP 4 Cranes.....................$ 48.00 31.15 GROUP 5 Cranes.....................$ 46.70 31.15 OPERATOR: Power Equipment (Tunnel and Underground Work - AREA 1:) SHAFTS, STOPES, RAISES: GROUP 1....................$ 47.52 31.15 GROUP 1-A..................$ 49.99 31.15 GROUP 2....................$ 46.26 31.15 GROUP 3....................$ 44.93 31.15 GROUP 4....................$ 43.79 31.15 GROUP 5....................$ 42.65 31.15 UNDERGROUND: GROUP 1....................$ 47.42 31.15 GROUP 1-A..................$ 49.89 31.15 GROUP 2....................$ 46.16 31.15 GROUP 3....................$ 44.83 31.15 GROUP 4....................$ 43.69 31.15 GROUP 5....................$ 42.55 31.15 FOOTNOTE: Work suspended by ropes or cables, or work on a Yo-Yo Cat: $.60 per hour additional. POWER EQUIPMENT OPERATOR CLASSIFICATIONS GROUP 1: Operator of helicopter (when used in erection work); Hydraulic excavator, 7 cu. yds. and over; Power shovels, over 7 cu. yds. Page 16 of 24 July 2016 GROUP 2: Highline cableway; Hydraulic excavator, 3-1/2 cu. yds. up to 7 cu. yds.; Licensed construction work boat operator, on site; Power blade operator (finish); Power shovels, over 1 cu. yd. up to and including 7 cu. yds. m.r.c. GROUP 3: Asphalt milling machine; Cable backhoe; Combination backhoe and loader over 3/4 cu. yds.; Continuous flight tie back machine assistant to engineer or mechanic; Crane mounted continuous flight tie back machine, tonnage to apply; Crane mounted drill attachment, tonnage to apply; Dozer, slope brd; Gradall; Hydraulic excavator, up to 3 1/2 cu. yds.; Loader 4 cu. yds. and over; Long reach excavator; Multiple engine scraper (when used as push pull); Power shovels, up to and including 1 cu. yd.; Pre-stress wire wrapping machine; Side boom cat, 572 or larger; Track loader 4 cu. yds. and over; Wheel excavator (up to and including 750 cu. yds. per hour) GROUP 4: Asphalt plant engineer/box person; Chicago boom; Combination backhoe and loader up to and including 3/4 cu. yd.; Concrete batch plant (wet or dry); Dozer and/or push cat; Pull- type elevating loader; Gradesetter, grade checker (GPS, mechanical or otherwise); Grooving and grinding machine; Heading shield operator; Heavy-duty drilling equipment, Hughes, LDH, Watson 3000 or similar; Heavy-duty repairperson and/or welder; Lime spreader; Loader under 4 cu. yds.; Lubrication and service engineer (mobile and grease rack); Mechanical finishers or spreader machine (asphalt, Barber-Greene and similar); Miller Formless M-9000 slope paver or similar; Portable crushing and screening plants; Power blade support; Roller operator, asphalt; Rubber-tired scraper, self-loading (paddle-wheels, etc.); Rubber- tired earthmoving equipment (scrapers); Slip form paver (concrete); Small tractor with drag; Soil stabilizer (P & H or equal); Spider plow and spider puller; Tubex pile rig; Unlicensed constuction work boat operator, on site; Timber skidder; Track loader up to 4 yds.; Tractor-drawn scraper; Tractor, compressor drill combination; Welder; Woods-Mixer (and other similar Pugmill equipment) GROUP 5: Cast-in-place pipe laying machine; Combination slusher and motor operator; Concrete conveyor or concrete pump, truck or equipment mounted; Concrete conveyor, building site; Concrete pump or pumpcrete gun; Drilling equipment, Watson 2000, Texoma 700 or similar; Drilling and boring machinery, horizontal (not to apply to waterliners, wagon drills or jackhammers); Concrete mixer/all; Person and/or material hoist; Mechanical finishers (concrete) (Clary, Johnson, Bidwell Bridge Deck or similar types); Mechanical burm, curb and/or curb and gutter machine, concrete or asphalt); Mine or shaft hoist; Portable crusher; Power jumbo operator (setting slip-forms, etc., in tunnels); Screed (automatic or manual); Self-propelled compactor with dozer; Tractor with boom D6 or smaller; Trenching machine, maximum digging capacity over 5 ft. depth; Vermeer T-600B rock cutter or similar GROUP 6: Armor-Coater (or similar); Ballast jack tamper; Page 17 of 24 July 2016 Boom- type backfilling machine; Assistant plant engineer; Bridge and/or gantry crane; Chemical grouting machine, truck-mounted; Chip spreading machine operator; Concrete saw (self-propelled unit on streets, highways, airports and canals); Deck engineer; Drilling equipment Texoma 600, Hughes 200 Series or similar up to and including 30 ft. m.r.c.; Drill doctor; Helicopter radio operator; Hydro-hammer or similar; Line master; Skidsteer loader, Bobcat larger than 743 series or similar (with attachments); Locomotive; Lull hi-lift or similar; Oiler, truck mounted equipment; Pavement breaker, truck-mounted, with compressor combination; Paving fabric installation and/or laying machine; Pipe bending machine (pipelines only); Pipe wrapping machine (tractor propelled and supported); Screed (except asphaltic concrete paving); Self- propelled pipeline wrapping machine; Tractor; Self-loading chipper; Concrete barrier moving machine GROUP 7: Ballast regulator; Boom truck or dual-purpose A-frame truck, non-rotating - under 15 tons; Cary lift or similar; Combination slurry mixer and/or cleaner; Drilling equipment, 20 ft. and under m.r.c.; Firetender (hot plant); Grouting machine operator; Highline cableway signalperson; Stationary belt loader (Kolman or similar); Lift slab machine (Vagtborg and similar types); Maginnes internal full slab vibrator; Material hoist (1 drum); Mechanical trench shield; Pavement breaker with or without compressor combination); Pipe cleaning machine (tractor propelled and supported); Post driver; Roller (except asphalt); Chip Seal; Self-propelled automatically applied concrete curing mahcine (on streets, highways, airports and canals); Self-propelled compactor (without dozer); Signalperson; Slip-form pumps (lifting device for concrete forms); Tie spacer; Tower mobile; Trenching machine, maximum digging capacity up to and including 5 ft. depth; Truck- type loader GROUP 8: Bit sharpener; Boiler tender; Box operator; Brakeperson; Combination mixer and compressor (shotcrete/gunite); Compressor operator; Deckhand; Fire tender; Forklift (under 20 ft.); Generator; Gunite/shotcrete equipment operator; Hydraulic monitor; Ken seal machine (or similar); Mixermobile; Oiler; Pump operator; Refrigeration plant; Reservoir-debris tug (self- propelled floating); Ross Carrier (construction site); Rotomist operator; Self-propelled tape machine; Shuttlecar; Self-propelled power sweeper operator (includes vacuum sweeper); Slusher operator; Surface heater; Switchperson; Tar pot firetender; Tugger hoist, single drum; Vacuum cooling plant; Welding machine (powered other than by electricity) GROUP 8-A: Elevator operator; Skidsteer loader-Bobcat 743 series or smaller, and similar (without attachments); Mini excavator under 25 H.P. (backhoe-trencher); Tub grinder wood chipper ---------------------------------------------------------- ALL CRANES AND ATTACHMENTS GROUP 1: Clamshell and dragline over 7 cu. yds.; Crane, over Page 18 of 24 July 2016 100 tons; Derrick, over 100 tons; Derrick barge pedestal-mounted, over 100 tons; Self-propelled boom-type lifting device, over 100 tons GROUP 2: Clamshell and dragline over 1 cu. yd. up to and including 7 cu. yds.; Crane, over 45 tons up to and including 100 tons; Derrick barge, 100 tons and under; Self-propelled boom-type lifting device, over 45 tons; Tower crane GROUP 3: Clamshell and dragline up to and including 1 cu. yd.; Cranes 45 tons and under; Self-propelled boom-type lifting device 45 tons and under; GROUP 4: Boom Truck or dual purpose A-frame truck, non-rotating over 15 tons; Truck-mounted rotating telescopic boom type lifting device, Manitex or similar (boom truck) over 15 tons; Truck-mounted rotating telescopic boom type lifting device, Manitex or similar (boom truck) - under 15 tons; ----------------------------------------------------------- PILEDRIVERS GROUP 1: Derrick barge pedestal mounted over 100 tons; Clamshell over 7 cu. yds.; Self-propelled boom-type lifting device over 100 tons; Truck crane or crawler, land or barge mounted over 100 tons GROUP 2: Derrick barge pedestal mounted 45 tons to and including 100 tons; Clamshell up to and including 7 cu. yds.; Self-propelled boom-type lifting device over 45 tons; Truck crane or crawler, land or barge mounted, over 45 tons up to and including 100 tons; Fundex F-12 hydraulic pile rig GROUP 3: Derrick barge pedestal mounted under 45 tons; Self- propelled boom-type lifting device 45 tons and under; Skid/scow piledriver, any tonnage; Truck crane or crawler, land or barge mounted 45 tons and under GROUP 4: Assistant operator in lieu of assistant to engineer; Forklift, 10 tons and over; Heavy-duty repairperson/welder GROUP 5: Deck engineer GROUP 6: Deckhand; Fire tender ------------------------------------------------------------- STEEL ERECTORS GROUP 1: Crane over 100 tons; Derrick over 100 tons; Self- propelled boom-type lifting device over 100 tons GROUP 2: Crane over 45 tons to 100 tons; Derrick under 100 tons; Self-propelled boom-type lifting device over 45 tons to 100 tons; Tower crane GROUP 3: Crane, 45 tons and under; Self-propelled boom-type lifting device, 45 tons and under GROUP 4: Chicago boom; Forklift, 10 tons and over; Heavy-duty repair person/welder GROUP 5: Boom cat -------------------------------------------------------------- -- TUNNEL AND UNDERGROUND WORK GROUP 1-A: Tunnel bore machine operator, 20' diameter or more GROUP 1: Heading shield operator; Heavy-duty repairperson; Mucking machine (rubber tired, rail or track type); Raised bore operator (tunnels); Tunnel mole bore operator Page 19 of 24 July 2016 GROUP 2: Combination slusher and motor operator; Concrete pump or pumpcrete gun; Power jumbo operator GROUP 3: Drill doctor; Mine or shaft hoist GROUP 4: Combination slurry mixer cleaner; Grouting Machine operator; Motorman GROUP 5: Bit Sharpener; Brakeman; Combination mixer and compressor (gunite); Compressor operator; Oiler; Pump operator; Slusher operator ----------------------------------------------------------- AREA DESCRIPTIONS: POWER EQUIPMENT OPERATORS, CRANES AND ATTACHMENTS,TUNNEL AND UNDERGROUND [These areas do not apply to Piledrivers and Steel Erectors] AREA 1: ALAMEDA, CALAVERAS, CONTRA COSTA, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, MONTEREY, SAN BENITO, SAN FRANCISCO, SAN JOAQUIN, SAN MATEO, SANTA CLARA, SANTA CRUZ, STANISLAUS, TUOLUMNE AREA 2 -NOTED BELOW THE REMAINING COUNTIES ARE SPLIT BETWEEN AREA 1 AND AREA 2 AS NOTED BELOW: CALAVERAS COUNTY: Area 1: Remainder Area 2: Eastern Part FRESNO COUNTY: Area 1: Remainder Area 2: Eastern Part MADERA COUNTY: Area 1: Remainder Area 2: Eastern Part MARIPOSA COUNTY: Area 1: Remainder Area 2: Eastern Part MONTEREY COUNTY: Area 1: Remainder Area 2: Southwestern part TUOLUMNE COUNTY: Area 1: Remainder Area 2: Eastern Part ---------------------------------------------------------------- ENGI0003-008 07/20/2020 Rates Fringes Dredging: (DREDGING: CLAMSHELL & DIPPER DREDGING; HYDRAULIC SUCTION DREDGING:) AREA 1: (1) Leverman...............$ 49.88 34.35 (2) Dredge Dozer; Heavy duty repairman.............$ 44.92 34.35 (3) Booster Pump Operator; Deck Engineer; Deck mate; Dredge Tender; Winch Operator...................$ 43.80 34.35 (4) Bargeman; Deckhand; Fireman; Leveehand; Oiler..$ 40.50 34.35 AREA 2: Page 20 of 24 July 2016 (1) Leverman...............$ 51.88 34.35 (2) Dredge Dozer; Heavy duty repairman.............$ 46.92 34.35 (3) Booster Pump Operator; Deck Engineer; Deck mate; Dredge Tender; Winch Operator...................$ 45.80 34.35 (4) Bargeman; Deckhand; Fireman; Leveehand; Oiler..$ 42.50 34.35 AREA DESCRIPTIONS AREA 1: ALAMEDA,BUTTE, CONTRA COSTA, KINGS, MARIN, MERCED, NAPA, SACRAMENTO, SAN BENITO, SAN FRANCISCO, SAN JOAQUIN, SAN MATEO, SANTA CLARA, SANTA CRUZ, SOLANO, STANISLAUS, SUTTER, YOLO, AND YUBA COUNTIES AREA 2: MODOC COUNTY THE REMAINGING COUNTIES ARE SPLIT BETWEEN AREA 1 AND AREA 2 AS NOTED BELOW: ALPINE COUNTY: Area 1: Northernmost part Area 2: Remainder CALAVERAS COUNTY: Area 1: Remainder Area 2: Eastern part COLUSA COUNTY: Area 1: Eastern part Area 2: Remainder ELDORADO COUNTY: Area 1: North Central part Area 2: Remainder FRESNO COUNTY: Area 1: Remainder Area 2: Eastern part GLENN COUNTY: Area 1: Eastern part Area 2: Remainder LASSEN COUNTY: Area 1: Western part along the Southern portion of border with Shasta County Area 2: Remainder MADERA COUNTY: Area 1: Except Eastern part Area 2: Eastern part MARIPOSA COUNTY Area 1: Except Eastern part Area 2: Eastern part MONTERREY COUNTY Area 1: Except Southwestern part Area 2: Southwestern part NEVADA COUNTY: Area 1: All but the Northern portion along the border of Sierra County Area 2: Remainder PLACER COUNTY: Area 1: Al but the Central portion Page 21 of 24 July 2016 Area 2: Remainder PLUMAS COUNTY: Area 1: Western portion Area 2: Remainder SHASTA COUNTY: Area 1: All but the Northeastern corner Area 2: Remainder SIERRA COUNTY: Area 1: Western part Area 2: Remainder SISKIYOU COUNTY: Area 1: Central part Area 2: Remainder SONOMA COUNTY: Area 1: All but the Northwestern corner Area 2: Remainder TEHAMA COUNTY: Area 1: All but the Western border with Mendocino & Trinity Counties Area 2: Remainder TRINITY COUNTY: Area 1: East Central part and the Northeastern border with Shasta County Area 2: Remainder TUOLUMNE COUNTY: Area 1: Except Eastern part Area 2: Eastern part ---------------------------------------------------------------- ENGI0003-019 06/29/2020 SEE AREA DESCRIPTIONS BELOW Rates Fringes OPERATOR: Power Equipment (LANDSCAPE WORK ONLY) GROUP 1 AREA 1.....................$ 39.95 30.28 AREA 2.....................$ 41.95 30.28 GROUP 2 AREA 1.....................$ 36.35 30.28 AREA 2.....................$ 38.35 30.28 GROUP 3 AREA 1.....................$ 31.74 30.28 AREA 2.....................$ 33.74 30.28 GROUP DESCRIPTIONS: GROUP 1: Landscape Finish Grade Operator: All finish grade work regardless of equipment used, and all equipment with a rating more than 65 HP. GROUP 2: Landscape Operator up to 65 HP: All equipment with a manufacturer's rating of 65 HP or less except equipment covered by Group 1 or Group 3. The following equipment shall be included except when used for finish work as long as manufacturer's rating is 65 HP or less: A-Frame and Winch Truck, Backhoe, Forklift, Hydragraphic Seeder Machine, Roller, Rubber-Tired and Track Earthmoving Equipment, Skiploader, Straw Blowers, and Trencher 31 HP up to 65 HP. GROUP 3: Landscae Utility Operator: Small Rubber-Tired Page 22 of 24 July 2016 Tractor, Trencher Under 31 HP. AREA DESCRIPTIONS: AREA 1: ALAMEDA, BUTTE, CONTRA COSTA, KINGS, MARIN, MERCED, NAPA, SACRAMENTO, SAN BENITO, SAN FRANCISCO, SAN JOAQUIN, SAN MATEO, SANTA CLARA, SANTA CRUZ, SOLANO, STANISLAUS, SUTTER, YOLO, AND YUBA COUNTIES AREA 2 - MODOC COUNTY THE REMAINING COUNTIES ARE SPLIT BETWEEN AREA 1 AND AREA 2 AS NOTED BELOW: ALPINE COUNTY: Area 1: Northernmost part Area 2: Remainder CALAVERAS COUNTY: Area 1: Except Eastern part Area 2: Eastern part COLUSA COUNTY: Area 1: Eastern part Area 2: Remainder DEL NORTE COUNTY: Area 1: Extreme Southwestern corner Area 2: Remainder ELDORADO COUNTY: Area 1: North Central part Area 2: Remainder FRESNO COUNTY Area 1: Except Eastern part Area 2: Eastern part GLENN COUNTY: Area 1: Eastern part Area 2: Remainder HUMBOLDT COUNTY: Area 1: Except Eastern and Southwestern parts Area 2: Remainder LAKE COUNTY: Area 1: Southern part Area 2: Remainder LASSEN COUNTY: Area 1: Western part along the Southern portion of border with Shasta County Area 2: Remainder MADERA COUNTY Area 1: Remainder Area 2: Eastern part MARIPOSA COUNTY Area 1: Remainder Area 2: Eastern part MENDOCINO COUNTY: Area 1: Central and Southeastern parts Area 2: Remainder MONTEREY COUNTY Area 1: Remainder Area 2: Southwestern part NEVADA COUNTY: Area 1: All but the Northern portion along the border of Sierra County Area 2: Remainder Page 23 of 24 July 2016 PLACER COUNTY: Area 1: All but the Central portion Area 2: Remainder PLUMAS COUNTY: Area 1: Western portion Area 2: Remainder SHASTA COUNTY: Area 1: All but the Northeastern corner Area 2: Remainder SIERRA COUNTY: Area 1: Western part Area 2: Remainder SISKIYOU COUNTY: Area 1: Central part Area 2: Remainder SONOMA COUNTY: Area 1: All but the Northwestern corner Area 2: Reaminder TEHAMA COUNTY: Area 1: All but the Western border with mendocino & Trinity Counties Area 2: Remainder TRINITY COUNTY: Area 1: East Central part and the Northeaster border with Shasta County Area 2: Remainder TULARE COUNTY; Area 1: Remainder Area 2: Eastern part TUOLUMNE COUNTY: Area 1: Remainder Area 2: Eastern Part ---------------------------------------------------------------- IRON0377-001 07/01/2020 ALAMEDA, CONTRA COSTA, SAN MATEO, SANTA CLARA & SAN FRANCISCO COUNTIES Rates Fringes Ironworkers: Fence Erector...............$ 34.58 24.81 Ornamental, Reinforcing and Structural..............$ 42.50 33.45 PREMIUM PAY: $6.00 additional per hour at the following locations: China Lake Naval Test Station, Chocolate Mountains Naval Reserve-Niland, Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB $4.00 additional per hour at the following locations: Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Logistics Center $2.00 additional per hour at the following locations: Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- Page 24 of 24 July 2016 IRON0433-005 07/01/2020 REMAINING COUNTIES Rates Fringes IRONWORKER Fence Erector...............$ 34.58 24.81 Ornamental, Reinforcing and Structural..............$ 41.00 33.45 PREMIUM PAY: $6.00 additional per hour at the following locations: China Lake Naval Test Station, Chocolate Mountains Naval Reserve-Niland, Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB $4.00 additional per hour at the following locations: Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Logistics Center $2.00 additional per hour at the following locations: Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- LABO0067-002 06/29/2020 AREA ""A"" - ALAMEDA, CONTRA COSTA, SAN FRANCISCO, SAN MATEO AND SANTA CLARA COUNTIES AREA ""B"" - CALAVERAS, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, MONTEREY, SAN BENITO, SAN JOAQUIN, STANISLAUS, AND TUOLUMNE COUNTIES Rates Fringes Asbestos Removal Laborer All Counties................$ 25.05 12.00 LABORER (Lead Removal) Area A......................$ 33.07 25.30 Area B......................$ 32.07 25.30 ASBESTOS REMOVAL-SCOPE OF WORK: Site mobilization; initial site clean-up; site preparation; removal of asbestos-containing materials from walls and ceilings; or from pipes, boilers and mechanical systems only if they are being scrapped; encapsulation, enclosure and disposal of asbestos-containing materials by hand or with equipment or machinery; scaffolding; fabrication of temporary wooden barriers; and assembly of decontamination stations. ---------------------------------------------------------------- LABO0073-002 06/25/2018 CALAVERAS AND SAN JOAQUIN COUNTIES Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person..$ 29.54 23.65 Traffic Control Person I....$ 29.84 23.65 Traffic Control Person II...$ 27.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. Page 25 of 24 July 2016 ---------------------------------------------------------------- LABO0073-003 07/01/2020 SAN JOAQUIN COUNTY Rates Fringes LABORER Mason Tender-Brick..........$ 32.84 23.71 ---------------------------------------------------------------- LABO0073-005 06/25/2018 Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 37.82 24.11 GROUP 2.....................$ 37.59 24.11 GROUP 3.....................$ 37.34 24.11 GROUP 4.....................$ 36.89 24.11 GROUP 5.....................$ 36.35 24.11 Shotcrete Specialist........$ 38.34 24.11 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO0073-007 06/25/2018 CALAVERAS AND SAN JOAQUIN COUNTIES Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS) Construction Specialist Group.......................$ 30.49 23.20 GROUP 1.....................$ 29.79 23.20 GROUP 1-a...................$ 30.01 23.20 GROUP 1-c...................$ 29.84 23.20 GROUP 1-e...................$ 30.34 23.20 GROUP 1-f...................$ 30.37 23.20 GROUP 2.....................$ 29.64 23.20 GROUP 3.....................$ 29.54 23.20 GROUP 4.....................$ 23.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS) Page 26 of 24 July 2016 (1) New Construction........$ 29.54 23.20 (2) Establishment Warranty Period......................$ 23.23 23.20 LABORER (GUNITE) GROUP 1.....................$ 29.75 22.31 GROUP 2.....................$ 29.25 22.31 GROUP 3.....................$ 28.66 22.31 GROUP 4.....................$ 28.54 22.31 LABORER (WRECKING) GROUP 1.....................$ 29.79 23.20 GROUP 2.....................$ 29.64 23.20 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and Page 27 of 24 July 2016 rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural Page 28 of 24 July 2016 and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO0073-009 07/01/2018 CALAVERAS AND SAN JOAQUIN COUNTIES Rates Fringes LABORER (Plaster Tender).........$ 32.02 23.00 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO0261-003 06/25/2018 SAN FRANCISCO AND SAN MATEO COUNTIES Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person..$ 20.54 23.65 Traffic Control Person I....$ 30.84 23.65 Traffic Control Person II...$ 28.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. ---------------------------------------------------------------- LABO0261-005 06/25/2018 SAN FRANCISCO AND SAN MATEO COUNTIES Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 37.82 24.11 Page 29 of 24 July 2016 GROUP 2.....................$ 37.59 24.11 GROUP 3.....................$ 37.34 24.11 GROUP 4.....................$ 36.89 24.11 GROUP 5.....................$ 36.35 24.11 Shotcrete Specialist........$ 38.34 24.11 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO0261-009 06/25/2018 SAN FRANCISCO, AND SAN MATEO COUNTIES Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA A:) Construction Specialist Group.......................$ 31.49 23.20 GROUP 1.....................$ 30.79 23.20 GROUP 1-a...................$ 31.01 23.20 GROUP 1-c...................$ 30.84 23.20 GROUP 1-e...................$ 31.34 23.20 GROUP 1-f...................$ 31.37 23.20 GROUP 2.....................$ 30.64 23.20 GROUP 3.....................$ 30.54 23.20 GROUP 4.....................$ 24.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS - AREA A:) (1) New Construction........$ 30.54 23.20 (2) Establishment Warranty Period......................$ 24.23 23.20 LABORER (WRECKING - AREA A:) GROUP 1.....................$ 30.79 23.20 GROUP 2.....................$ 30.64 23.20 Laborers: (GUNITE - AREA A:) GROUP 1.....................$ 30.75 22.31 GROUP 2.....................$ 30.25 22.31 GROUP 3.....................$ 29.66 22.31 GROUP 4.....................$ 29.54 22.31 Page 30 of 24 July 2016 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for Page 31 of 24 July 2016 such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. Page 32 of 24 July 2016 B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO0261-011 05/01/2018 SAN FRANCISCO AND SAN MATEO COUNTIES: Rates Fringes MASON TENDER, BRICK..............$ 35.37 20.70 FOOTNOTES: Underground work such as sewers, manholes, catch basins, sewer pipes, telephone conduits, tunnels and cut trenches: $5.00 per day additional. Work in live sewage: $2.50 per day additional. ---------------------------------------------------------------- LABO0261-014 07/01/2017 SAN FRANCISCO AND SAN MATEO COUNTIES: Rates Fringes PLASTER TENDER...................$ 34.70 23.11 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO0270-003 06/25/2018 AREA A: SANTA CLARA AREA B: MONTEREY, SAN BENITO AND SANTA CRUZ COUNTIES Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person Area A.....................$ 30.54 23.65 Area B.....................$ 29.54 23.65 Traffic Control Person I Area A.....................$ 30.84 23.65 Area B.....................$ 29.84 23.65 Traffic Control Person II Area A.....................$ 28.34 23.65 Area B.....................$ 27.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. ---------------------------------------------------------------- Page 33 of 24 July 2016 LABO0270-004 06/25/2018 MONTEREY, SAN BENITO, SANTA CLARA, AND SANTA CRUZ COUNTIES Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 37.82 24.11 GROUP 2.....................$ 37.59 24.11 GROUP 3.....................$ 37.34 24.11 GROUP 4.....................$ 36.89 24.11 GROUP 5.....................$ 36.35 24.11 Shotcrete Specialist........$ 38.34 24.11 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO0270-005 07/01/2020 MONTEREY AND SAN BENITO COUNTIES Rates Fringes LABORER Mason Tender-Brick..........$ 32.84 23.71 ---------------------------------------------------------------- LABO0270-007 06/25/2018 MONTEREY, SAN BENITO, AND SANTA CRUZ, COUNTIES Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA B) Construction Specialist Group.......................$ 30.40 23.20 GROUP 1.....................$ 29.79 23.20 GROUP 1-a...................$ 30.01 23.20 GROUP 1-c...................$ 29.84 23.20 GROUP 1-e...................$ 30.34 23.20 GROUP 1-f...................$ 30.37 23.20 GROUP 2.....................$ 29.64 23.20 GROUP 3.....................$ 29.54 23.20 GROUP 4.....................$ 23.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS - AREA B) Page 34 of 24 July 2016 (1) New Construction........$ 29.54 23.20 (2) Establishment Warranty Period......................$ 23.23 23.20 LABORER (GUNITE - AREA B) GROUP 1.....................$ 29.75 22.31 GROUP 2.....................$ 29.25 22.31 GROUP 3.....................$ 28.66 22.31 GROUP 4.....................$ 28.54 22.31 LABORER (WRECKING - AREA B) GROUP 1.....................$ 29.79 23.20 GROUP 2.....................$ 29.64 23.20 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and Page 35 of 24 July 2016 rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural Page 36 of 24 July 2016 and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO0270-010 06/25/2018 SANTA CLARA COUNTY Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA A:) Construction Specialist Group.......................$ 31.49 23.20 GROUP 1.....................$ 30.79 23.20 GROUP 1-a...................$ 31.01 23.20 GROUP 1-c...................$ 30.84 23.20 GROUP 1-e...................$ 31.34 23.20 GROUP 1-f...................$ 30.37 23.20 GROUP 2.....................$ 30.64 23.20 GROUP 3.....................$ 30.54 23.20 GROUP 4.....................$ 24.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS - AREA A:) (1) New Construction........$ 30.54 23.20 (2) Establishment Warranty Period......................$ 24.23 23.20 LABORER (GUNITE - AREA A:) GROUP 1.....................$ 30.75 22.31 GROUP 2.....................$ 30.25 22.31 Page 37 of 24 July 2016 GROUP 3.....................$ 29.66 22.31 GROUP 4.....................$ 29.54 22.31 LABORER (WRECKING - AREA A:) GROUP 1.....................$ 30.79 23.20 GROUP 2.....................$ 30.64 23.20 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Page 38 of 24 July 2016 Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building Page 39 of 24 July 2016 including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO0270-011 07/01/2017 MONTEREY, SAN BENITO, SANTA CRUZ, SANTA CLARA COUNTIES Rates Fringes LABORER (Plaster Tender).........$ 34.70 21.22 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO0294-001 07/01/2020 FRESNO, KINGS AND MADERA COUNTIES Rates Fringes LABORER (Brick) Mason Tender-Brick..........$ 32.84 23.71 ---------------------------------------------------------------- LABO0294-002 06/25/2018 FRESNO, KINGS, AND MADERA COUNTIES Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person..$ 29.54 23.65 Traffic Control Person I....$ 29.84 23.65 Traffic Control Person II...$ 27.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. ---------------------------------------------------------------- LABO0294-005 06/25/2018 FRESNO, KINGS, AND MADERA COUNTIES Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 37.82 24.11 Page 40 of 24 July 2016 GROUP 2.....................$ 37.59 24.11 GROUP 3.....................$ 37.34 24.11 GROUP 4.....................$ 36.89 24.11 GROUP 5.....................$ 36.35 24.11 Shotcrete Specialist........$ 38.34 24.11 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO0294-008 06/25/2018 FRESNO, KINGS, AND MADERA COUNTIES Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA B:) Construction Specialist Group.......................$ 30.49 23.20 GROUP 1.....................$ 29.79 23.20 GROUP 1-a...................$ 30.01 23.20 GROUP 1-c...................$ 29.84 23.20 GROUP 1-e...................$ 30.34 23.20 GROUP 1-f...................$ 30.37 23.20 GROUP 2.....................$ 29.64 23.20 GROUP 3.....................$ 29.54 23.20 GROUP 4.....................$ 23.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS - AREA B:) (1) New Construction........$ 29.54 23.20 (2) Establishment Warranty Period......................$ 23.23 23.20 LABORER (GUNITE - AREA B:) GROUP 1.....................$ 29.75 22.31 GROUP 2.....................$ 29.25 22.31 GROUP 3.....................$ 28.66 22.31 GROUP 4.....................$ 28.54 22.31 LABORER (WRECKING - AREA B:) GROUP 1.....................$ 29.79 23.20 GROUP 2.....................$ 29.64 23.20 Page 41 of 24 July 2016 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for Page 42 of 24 July 2016 such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. Page 43 of 24 July 2016 B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO0294-010 07/01/2018 CALAVERAS, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAUS & TUOLUMNE Rates Fringes Plasterer tender.................$ 32.02 23.00 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO0294-011 07/01/2017 FRESNO, KINGS, AND MADERA COUNTIES Rates Fringes LABORER (Plaster Tender).........$ 31.02 22.52 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO0304-002 06/25/2018 ALAMEDA COUNTY Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person..$ 30.54 23.65 Traffic Control Person I....$ 30.84 23.65 Traffic Control Person II...$ 28.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. ---------------------------------------------------------------- LABO0304-003 06/26/2017 ALAMEDA COUNTY Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 36.60 24.83 GROUP 2.....................$ 36.37 24.83 GROUP 3.....................$ 36.12 24.83 GROUP 4.....................$ 35.67 24.83 GROUP 5.....................$ 35.13 24.83 Page 44 of 24 July 2016 Shotcrete Specialist........$ 37.12 24.83 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO0304-004 06/25/2018 ALAMEDA COUNTY Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA A:) Construction Specialist Group.......................$ 31.49 23.20 GROUP 1.....................$ 30.79 23.20 GROUP 1-a...................$ 31.01 23.20 GROUP 1-c...................$ 30.84 23.20 GROUP 1-e...................$ 31.34 23.20 GROUP 1-f...................$ 30.37 23.20 GROUP 2.....................$ 30.64 23.20 GROUP 3.....................$ 30.54 23.20 GROUP 4.....................$ 24.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS - AREA A:) (1) New Construction........$ 30.54 23.20 (2) Establishment Warranty Period......................$ 24.23 23.20 LABORER (GUNITE - AREA A:) GROUP 1.....................$ 30.75 22.31 GROUP 2.....................$ 30.25 22.31 GROUP 3.....................$ 29.66 22.31 GROUP 4.....................$ 29.54 22.31 LABORER (WRECKING - AREA A:) GROUP 1.....................$ 30.79 23.20 GROUP 2.....................$ 30.64 23.20 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers Page 45 of 24 July 2016 entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who Page 46 of 24 July 2016 handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. Page 47 of 24 July 2016 The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO0304-005 05/01/2018 ALAMEDA COUNTY Rates Fringes Brick Tender.....................$ 35.37 20.70 FOOTNOTES: Work on jobs where heat-protective clothing is required: $2.00 per hour additional. Work at grinders: $.25 per hour additional. Manhole work: $2.00 per day additional. ---------------------------------------------------------------- LABO0304-008 07/01/2017 ALAMEDA AND CONTRA COSTA COUNTIES: Rates Fringes Plasterer tender.................$ 34.70 23.11 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO0324-002 06/25/2018 CONTRA COSTA COUNTY Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person..$ 30.54 23.65 Traffic Control Person I....$ 30.84 23.65 Traffic Control Person II...$ 28.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. ---------------------------------------------------------------- LABO0324-006 06/25/2018 CONTRA COSTA COUNTY Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 37.82 24.11 GROUP 2.....................$ 37.59 24.11 GROUP 3.....................$ 37.34 24.11 GROUP 4.....................$ 36.89 24.11 GROUP 5.....................$ 36.35 24.11 Shotcrete Specialist........$ 38.34 24.11 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete Page 48 of 24 July 2016 nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO0324-012 06/25/2018 CONTRA COSTA COUNTY Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA A:) Construction Specialist Group.......................$ 31.49 23.20 GROUP 1.....................$ 30.79 23.20 GROUP 1-a...................$ 31.01 23.20 GROUP 1-c...................$ 30.84 23.20 GROUP 1-e...................$ 31.34 23.20 GROUP 1-f...................$ 30.37 23.20 GROUP 1-g...................$ 30.99 23.20 GROUP 2.....................$ 30.64 23.20 GROUP 3.....................$ 30.54 23.20 GROUP 4.....................$ 24.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULURAL & LANDSCAPE LABORERS - AREA A:) (1) New Construction........$ 30.54 23.20 (2) Establishment Warranty Period......................$ 24.23 23.20 LABORER (GUNITE - AREA A:) GROUP 1.....................$ 30.75 22.31 GROUP 2.....................$ 30.25 22.31 GROUP 3.....................$ 29.66 22.31 GROUP 4.....................$ 29.54 22.31 LABORER (WRECKING - AREA A:) GROUP 1.....................$ 30.79 23.20 GROUP 2.....................$ 30.64 23.20 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. Page 49 of 24 July 2016 --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, Page 50 of 24 July 2016 large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 1-g, CONTRA COSTA COUNTY: Pipelayer (including grade checking in connection with pipelaying); Caulker; Bander; Pipewrapper; Conduit layer; Plastic pipe layer; Pressure pipe tester; No joint pipe and stripping of same, including repair of voids; Precast manhole setters, cast in place manhole form setters GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. Page 51 of 24 July 2016 B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) GROUP 1-g, CONTRA COSTA COUNTY: Pipelayer (including grade checking in connection with pipelaying); Caulker; Bander; Pipewrapper; Conduit layer; Plastic pipe layer; Pressure pipe tester; No joint pipe and stripping of same, including repair of voids; Precast manhole setters, cast in place manhole form setters ---------------------------------------------------------------- LABO0324-014 05/01/2018 CONTRA COSTA COUNTY: Rates Fringes Brick Tender.....................$ 35.37 20.70 FOOTNOTES: Work on jobs where heat-protective clothing is required: $2.00 per hour additional. Work at grinders: $.25 per hour additional. Manhole work: $2.00 per day additional. ---------------------------------------------------------------- LABO0324-018 07/01/2018 ALAMEDA AND CONTRA COSTA COUNTIES: Rates Fringes Plasterer tender.................$ 37.14 22.32 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO1130-002 06/25/2018 MARIPOSA, MERCED, STANISLAUS, AND TUOLUMNE COUNTIES Rates Fringes LABORER (TRAFFIC CONTROL/LANE CLOSURE) Escort Driver, Flag Person..$ 29.54 23.65 Traffic Control Person I....$ 29.84 23.65 Traffic Control Person II...$ 27.34 23.65 TRAFFIC CONTROL PERSON I: Layout of traffic control, crash cushions, construction area and roadside signage. TRAFFIC CONTROL PERSON II: Installation and removal of temporary/permanent signs, markers, delineators and crash cushions. ---------------------------------------------------------------- LABO1130-003 06/26/2017 MARIPOSA, MERCED, STANISLAUS, AND TUOLUMNE COUNTIES Page 52 of 24 July 2016 Rates Fringes Tunnel and Shaft Laborers: GROUP 1.....................$ 36.60 24.83 GROUP 2.....................$ 36.37 24.83 GROUP 3.....................$ 36.12 24.83 GROUP 4.....................$ 35.67 24.83 GROUP 5.....................$ 35.13 24.83 Shotcrete Specialist........$ 37.12 24.83 TUNNEL AND SHAFT CLASSIFICATIONS GROUP 1: Diamond driller; Groundmen; Gunite and shotcrete nozzlemen GROUP 2: Rodmen; Shaft work & raise (below actual or excavated ground level) GROUP 3: Bit grinder; Blaster, driller, powdermen, heading; Cherry pickermen - where car is lifted; Concrete finisher in tunnel; Concrete screedman; Grout pumpman and potman; Gunite & shotcrete gunman & potman; Headermen; High pressure nozzleman; Miner - tunnel, including top and bottom man on shaft and raise work; Nipper; Nozzleman on slick line; Sandblaster - potman, Robotic Shotcrete Placer, Segment Erector, Tunnel Muck Hauler, Steel Form raiser and setter; Timberman, retimberman (wood or steel or substitute materials therefore); Tugger (for tunnel laborer work); Cable tender; Chuck tender; Powderman - primer house GROUP 4: Vibrator operator, pavement breaker; Bull gang - muckers, trackmen; Concrete crew - includes rodding and spreading, Dumpmen (any method) GROUP 5: Grout crew; Reboundman; Swamper/ Brakeman ---------------------------------------------------------------- LABO1130-005 07/01/2018 MARIPOSA, MERCED, STANISLAUS AND TUOLUMNE COUNTIES Rates Fringes LABORER Mason Tender-Brick..........$ 31.20 22.20 ---------------------------------------------------------------- LABO1130-007 06/25/2018 MARIPOSA, MERCED, STANISLAUS, AND TUOLUMNE , COUNTIES Rates Fringes LABORER (CONSTRUCTION CRAFT LABORERS - AREA B:) Construction Specialist Group.......................$ 30.49 23.20 GROUP 1.....................$ 29.79 23.20 GROUP 1-a...................$ 30.01 23.20 GROUP 1-c...................$ 29.84 23.20 GROUP 1-e...................$ 30.34 23.20 GROUP 1-f...................$ 29.37 23.20 GROUP 2.....................$ 29.64 23.20 GROUP 3.....................$ 29.54 23.20 GROUP 4.....................$ 23.23 23.20 See groups 1-b and 1-d under laborer classifications. LABORER (GARDENERS, HORTICULTURAL & LANDSCAPE LABORERS - AREA B:) (1) New Construction........$ 29.54 23.20 (2) Establishment Warranty Page 53 of 24 July 2016 Period......................$ 23.23 23.20 LABORER (GUNITE - AREA B:) GROUP 1.....................$ 29.75 22.31 GROUP 2.....................$ 29.25 22.31 GROUP 3.....................$ 28.66 22.31 GROUP 4.....................$ 28.54 22.31 LABORER (WRECKING - AREA B:) GROUP 1.....................$ 29.79 23.20 GROUP 2.....................$ 29.64 23.20 FOOTNOTES: Laborers working off or with or from bos'n chairs, swinging scaffolds, belts shall receive $0.25 per hour above the applicable wage rate. This shall not apply to workers entitled to receive the wage rate set forth in Group 1-a below. --------------------------------------------------------- LABORER CLASSIFICATIONS CONSTRUCTION SPECIALIST GROUP: Asphalt ironer and raker; Chainsaw; Laser beam in connection with laborers' work; Cast-in- place manhole form setter; Pressure pipelayer; Davis trencher - 300 or similar type (and all small trenchers); Blaster; Diamond driller; Multiple unit drill; Hydraulic drill GROUP 1: Asphalt spreader boxes (all types); Barko, Wacker and similar type tampers; Buggymobile; Caulker, bander, pipewrapper, conduit layer, plastic pipelayer; Certified hazardous waste worker including Leade Abatement; Compactors of all types; Concrete and magnesite mixer, 1/2 yd. and under; Concrete pan work; Concrete sander; Concrete saw; Cribber and/or shoring; Cut granite curb setter; Dri-pak-it machine; Faller, logloader and bucker; Form raiser, slip forms; Green cutter; Headerboard, Hubsetter, aligner, by any method; High pressure blow pipe (1-1/2"" or over, 100 lbs. pressure/over); Hydro seeder and similar type; Jackhammer operator; Jacking of pipe over 12 inches; Jackson and similar type compactor; Kettle tender, pot and worker applying asphalt, lay-kold, creosote, lime, caustic and similar type materials (applying means applying, dipping or handling of such materials); Lagging, sheeting, whaling, bracing, trenchjacking, lagging hammer; Magnesite, epoxyresin, fiberglass, mastic worker (wet or dry); No joint pipe and stripping of same, including repair of voids; Pavement breaker and spader, including tool grinder; Perma curb; Pipelayer (including grade checking in connection with pipelaying); Precast-manhole setter; Pressure pipe tester; Post hole digger, air, gas and electric; Power broom sweeper; Power tampers of all types (except as shown in Group 2); Ram set gun and stud gun; Riprap stonepaver and rock-slinger, including placing of sacked concrete and/or sand (wet or dry) and gabions and similar type; Rotary scarifier or multiple head concrete chipping scarifier; Roto and Ditch Witch; Rototiller; Sandblaster, pot, gun, nozzle operators; Signalling and rigging; Tank cleaner; Tree climber; Turbo blaster; Vibrascreed, bull float in connection with laborers' work; Page 54 of 24 July 2016 Vibrator; Hazardous waste worker (lead removal); Asbestos and mold removal worker GROUP 1-a: Joy drill model TWM-2A; Gardner-Denver model DH143 and similar type drills; Track driller; Jack leg driller; Wagon driller; Mechanical drillers, all types regardless of type or method of power; Mechanical pipe layers, all types regardless of type or method of power; Blaster and powder; All work of loading, placing and blasting of all powder and explosives of whatever type regardless of method used for such loading and placing; High scalers (including drilling of same); Tree topper; Bit grinder GROUP 1-b: Sewer cleaners shall receive $4.00 per day above Group 1 wage rates. ""Sewer cleaner"" means any worker who handles or comes in contact with raw sewage in small diameter sewers. Those who work inside recently active, large diameter sewers, and all recently active sewer manholes shal receive $5.00 per day above Group 1 wage rates. GROUP 1-c: Burning and welding in connection with laborers' work; Synthetic thermoplastics and similar type welding GROUP 1-d: Maintenance and repair track and road beds. All employees performing work covered herein shall receive $ .25 per hour above their regular rate for all work performed on underground structures not specifically covered herein. This paragraph shall not be construed to apply to work below ground level in open cut. It shall apply to cut and cover work of subway construction after the temporary cover has been placed. GROUP 1-e: Work on and/or in bell hole footings and shafts thereof, and work on and in deep footings. (A deep footing is a hole 15 feet or more in depth.) In the event the depth of the footing is unknown at the commencement of excavation, and the final depth exceeds 15 feet, the deep footing wage rate would apply to all employees for each and every day worked on or in the excavation of the footing from the date of inception. GROUP 1-f: Wire winding machine in connection with guniting or shot crete GROUP 2: Asphalt shoveler; Cement dumper and handling dry cement or gypsum; Choke-setter and rigger (clearing work); Concrete bucket dumper and chute; Concrete chipping and grinding; Concrete laborer (wet or dry); Driller tender, chuck tender, nipper; Guinea chaser (stake), grout crew; High pressure nozzle, adductor; Hydraulic monitor (over 100 lbs. pressure); Loading and unloading, carrying and hauling of all rods and materials for use in reinforcing concrete construction; Pittsburgh chipper and similar type brush shredders; Sloper; Single foot, hand-held, pneumatic tamper; All pneumatic, air, gas and electric tools not listed in Groups 1 through 1-f; Jacking of pipe - under 12 inches GROUP 3: Construction laborers, including bridge and general laborer; Dump, load spotter; Flag person; Fire watcher; Fence erector; Guardrail erector; Gardener, horticultural and landscape laborer; Jetting; Limber, brush loader and piler; Pavement marker (button setter); Maintenance, repair Page 55 of 24 July 2016 track and road beds; Streetcar and railroad construction track laborer; Temporary air and water lines, Victaulic or similar; Tool room attendant (jobsite only) GROUP 4: Final clean-up work of debris, grounds and building including but not limited to: street cleaner; cleaning and washing windows; brick cleaner (jobsite only); material cleaner (jobsite only). The classification ""material cleaner"" is to be utilized under the following conditions: A: at demolition site for the salvage of the material. B: at the conclusion of a job where the material is to be salvaged and stocked to be reused on another job. C: for the cleaning of salvage material at the jobsite or temporary jobsite yard. The material cleaner classification should not be used in the performance of ""form stripping, cleaning and oiling and moving to the next point of erection"". -------------------------------------------------------- GUNITE LABORER CLASSIFICATIONS GROUP 1: Structural Nozzleman GROUP 2: Nozzleman, Gunman, Potman, Groundman GROUP 3: Reboundman GROUP 4: Gunite laborer ---------------------------------------------------------- WRECKING WORK LABORER CLASSIFICATIONS GROUP 1: Skilled wrecker (removing and salvaging of sash, windows and materials) GROUP 2: Semi-skilled wrecker (salvaging of other building materials) ---------------------------------------------------------------- LABO1130-008 07/01/2018 CALAVERAS, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAUS & TUOLUMNE Rates Fringes Plasterer tender.................$ 32.02 23.00 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- LABO1130-009 07/01/2018 MARIPOSA, MERCED, STANISLAUS, AND TUOLUMNE COUNTIES Rates Fringes LABORER (Plaster Tender).........$ 32.02 23.00 Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- PAIN0016-001 01/01/2019 ALAMEDA, CONTRA COSTA, MONTEREY, SAN BENITO, SAN MATEO, SANTA CLARA, AND SANTA CRUZ COUNTIES Rates Fringes Painters:........................$ 42.67 24.03 PREMIUMS: EXOTIC MATERIALS - $0.75 additional per hour. SPRAY WORK: - $0.50 additional per hour. INDUSTRIAL PAINTING - $0.25 additional per hour [Work on industrial buildings used for the manufacture and processing of goods for sale or service; steel construction (bridges), stacks, towers, tanks, and similar structures] HIGH WORK: over 50 feet - $2.00 per hour additional Page 56 of 24 July 2016 100 to 180 feet - $4.00 per hour additional Over 180 feet - $6.00 per houir additional ---------------------------------------------------------------- PAIN0016-003 06/01/2020 AREA 1: ALAMEDA, CONTRA COSTA, SAN FRANCISCO, SAN MATEO & SANTA CLARA COUNTIES AREA 2: CALAVERAS, MARIPOA, MERCED, MONTEREY, SAN BENITO, SAN JOAQUIN, SANTA CRUZ, STANISLAUS & TUOLUMNE COUNTIES Rates Fringes Drywall Finisher/Taper AREA 1......................$ 51.51 27.39 AREA 2......................$ 47.38 25.99 ---------------------------------------------------------------- PAIN0016-012 01/01/2019 ALAMEDA, CONTRA COSTA, MARIPOSA, MERCED, MONTEREY, SAN BENITO, SAN FRANCISCO, SAN MATEO, SANTA CLARA AND SANTA CRUZ COUNTIES Rates Fringes SOFT FLOOR LAYER.................$ 48.60 27.43 ---------------------------------------------------------------- PAIN0016-015 01/01/2019 CALAVERAS, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAUS & TUOLUMNE COUNTIES Rates Fringes PAINTER Brush.......................$ 33.68 20.24 FOOTNOTES: SPRAY/SANDBLAST: $0.50 additional per hour. EXOTIC MATERIALS: $1.00 additional per hour. HIGH TIME: Over 50 ft above ground or water level $2.00 additional per hour. 100 to 180 ft above ground or water level $4.00 additional per hour. Over 180 ft above ground or water level $6.00 additional per hour. ---------------------------------------------------------------- PAIN0016-022 01/01/2019 SAN FRANCISCO COUNTY Rates Fringes PAINTER..........................$ 46.29 24.03 ---------------------------------------------------------------- PAIN0169-001 06/01/2020 FRESNO, KINGS, MADERA, MARIPOSA AND MERCED COUNTIES: Rates Fringes GLAZIER..........................$ 40.00 26.76 ---------------------------------------------------------------- PAIN0169-005 07/01/2020 ALAMEDA CONTRA COSTA, MONTEREY, SAN BENITO, SAN FRANCISCO, SAN MATEO, SANTA CLARA & SANTA CRUZ COUNTIES Rates Fringes GLAZIER..........................$ 52.17 30.55 ---------------------------------------------------------------- PAIN0294-004 06/01/2020 FRESNO, KINGS AND MADERA COUNTIES Rates Fringes PAINTER Brush, Roller...............$ 30.18 20.21 Drywall Finisher/Taper......$ 40.10 25.00 FOOTNOTE: Page 57 of 24 July 2016 Spray Painters & Paperhangers recive $1.00 additional per hour. Painters doing Drywall Patching receive $1.25 additional per hour. Lead Abaters & Sandblasters receive $1.50 additional per hour. High Time - over 30 feet (does not include work from a lift) $0.75 per hour additional. ---------------------------------------------------------------- PAIN0294-005 06/01/2020 FRESNO, KINGS & MADERA Rates Fringes SOFT FLOOR LAYER.................$ 33.30 21.42 ---------------------------------------------------------------- PAIN0767-001 07/01/2020 CALAVERAS, SAN JOAQUIN, STANISLAUS AND TUOLUMNE COUNTIES: Rates Fringes GLAZIER..........................$ 40.61 30.76 PAID HOLIDAYS: New Year's Day, Martin Luther King, Jr. Day, President's Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, and Christmas Day. Employee rquired to wear a body harness shall receive $1.50 per hour above the basic hourly rate at any elevation. ---------------------------------------------------------------- PAIN1176-001 07/01/2020 HIGHWAY IMPR0VEMENT Rates Fringes Parking Lot Striping/Highway Marking: GROUP 1.....................$ 38.48 16.88 GROUP 2.....................$ 32.71 16.88 GROUP 3.....................$ 33.09 16.88 CLASSIFICATIONS GROUP 1: Striper: Layout and application of painted traffic stripes and marking; hot thermo plastic; tape, traffic stripes and markings GROUP 2: Gamecourt & Playground Installer GROUP 3: Protective Coating, Pavement Sealing ---------------------------------------------------------------- PAIN1237-003 06/01/2020 CALAVERAS; SAN JOAQUIN COUNTIES; STANISLAUS AND TUOLUMNE COUNTIES: Rates Fringes SOFT FLOOR LAYER.................$ 39.61 22.59 ---------------------------------------------------------------- PLAS0066-002 07/01/2019 ALAMEDA, CONTRA COSTA, SAN MATEO AND SAN FRANCISCO COUNTIES: Rates Fringes PLASTERER........................$ 42.41 30.73 ---------------------------------------------------------------- PLAS0300-001 07/01/2018 Rates Fringes PLASTERER AREA 188: Fresno...........$ 32.70 31.68 AREA 224: San Benito, Santa Clara, Santa Cruz.....$ 32.88 31.68 AREA 295: Calaveras & San Joaquin Couonties...........$ 32.70 31.68 AREA 337: Monterey County..$ 32.88 31.68 Page 58 of 24 July 2016 AREA 429: Mariposa, Merced, Stanislaus, Tuolumne Counties...........$ 32.70 31.68 ---------------------------------------------------------------- PLAS0300-005 07/01/2017 Rates Fringes CEMENT MASON/CONCRETE FINISHER...$ 33.49 23.67 ---------------------------------------------------------------- PLUM0038-001 07/01/2020 SAN FRANCISCO COUNTY Rates Fringes PLUMBER (Plumber, Steamfitter, Refrigeration Fitter)..........................$ 75.30 46.27 ---------------------------------------------------------------- PLUM0038-005 07/01/2019 SAN FRANCISCO COUNTY Rates Fringes Landscape/Irrigation Fitter (Underground/Utility Fitter).....$ 63.04 31.48 ---------------------------------------------------------------- PLUM0062-001 07/01/2020 MONTEREY AND SANTA CRUZ COUNTIES Rates Fringes PLUMBER & STEAMFITTER............$ 45.00 35.99 ---------------------------------------------------------------- PLUM0159-001 07/01/2019 CONTRA COSTA COUNTY Rates Fringes Plumber and steamfitter (1) Refrigeration...........$ 56.93 41.04 (2) All other work..........$ 57.82 41.04 ---------------------------------------------------------------- PLUM0246-001 07/01/2020 FRESNO, KINGS & MADERA COUNTIES Rates Fringes PLUMBER & STEAMFITTER............$ 42.65 34.64 ---------------------------------------------------------------- PLUM0246-004 01/01/2017 FRESNO, MERCED & SAN JOAQUIN COUNIES Rates Fringes PLUMBER (PIPE TRADESMAN).........$ 13.00 10.74 PIPE TRADESMAN SCOPE OF WORK: Installation of corrugated metal piping for drainage, as well as installation of corrugated metal piping for culverts in connection with storm sewers and drains; Grouting, dry packing and diapering of joints, holes or chases including paving over joints, in piping; Temporary piping for dirt work for building site preparation; Operating jack hammers, pavement breakers, chipping guns, concrete saws and spades to cut holes, chases and channels for piping systems; Digging, grading, backfilling and ground preparation for all types of pipe to all points of the jobsite; Ground preparation including ground leveling, layout and planting of shrubbery, trees and ground cover, including watering, mowing, edging, pruning and fertilizing, the breaking of Page 59 of 24 July 2016 concrete, digging, backfilling and tamping for the preparation and completion of all work in connection with lawn sprinkler and landscaping; Loading, unloading and distributing materials at jobsite; Putting away materials in storage bins in jobsite secure storage area; Demolition of piping and fixtures for remodeling and additions; Setting up and tearing down work benches, ladders and job shacks; Clean-up and sweeping of jobsite; Pipe wrapping and waterproofing where tar or similar material is applied for protection of buried piping; Flagman ---------------------------------------------------------------- PLUM0342-001 07/01/2020 ALAMEDA & CONTRA COSTA COUNTIES Rates Fringes PIPEFITTER CONTRA COSTA COUNTY.........$ 67.75 42.50 PLUMBER, PIPEFITTER, STEAMFITTER ALAMEDA COUNTY..............$ 67.75 42.50 ---------------------------------------------------------------- PLUM0355-004 07/01/2020 ALAMEDA, CALAVERAS, CONTRA COSTA, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, MONTEREY, SAN BENITO, SAN JOAQUIN, SAN MATEO, SANTA CLARA, SANTA CRUZ, STANISLAUS, AND TUOLUMNE COUNTIES: Rates Fringes Underground Utility Worker /Landscape Fitter...........$ 29.90 16.30 ---------------------------------------------------------------- PLUM0393-001 07/01/2020 SAN BENITO AND SANTA CLARA COUNTIES Rates Fringes PLUMBER/PIPEFITTER...............$ 66.66 44.83 ---------------------------------------------------------------- PLUM0442-001 07/01/2020 CALAVERAS, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAUS & TUOLUMNE COUNTIES Rates Fringes PLUMBER & STEAMFITTER............$ 45.50 31.89 ---------------------------------------------------------------- PLUM0467-001 07/01/2020 SAN MATEO COUNTY Rates Fringes Plumber/Pipefitter/Steamfitter...$ 70.00 37.86 ---------------------------------------------------------------- ROOF0027-002 01/01/2020 FRESNO, KINGS, AND MADERA COUNTIES Rates Fringes ROOFER...........................$ 31.11 14.41 FOOTNOTE: Work with pitch, pitch base of pitch impregnated products or any material containing coal tar pitch, on any building old or new, where both asphalt and pitchers are used in the application of a built-up roof or tear off: $2.00 per hour additional. ---------------------------------------------------------------- ROOF0040-002 08/01/2020 SAN FRANCISCO & SAN MATEO COUNTIES: Page 60 of 24 July 2016 Rates Fringes ROOFER...........................$ 44.38 19.69 ---------------------------------------------------------------- ROOF0081-001 08/01/2019 ALAMEDA AND CONTRA COSTA COUNTIES: Rates Fringes Roofer...........................$ 40.10 18.88 ---------------------------------------------------------------- ROOF0081-004 08/01/2020 CALAVERAS, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAUS AND TUOLUMNE COUNTIES: Rates Fringes ROOFER...........................$ 39.73 19.11 ---------------------------------------------------------------- ROOF0095-002 08/01/2020 MONTEREY, SAN BENITO, SANTA CLARA, AND SANTA CRUZ COUNTIES: Rates Fringes ROOFER Journeyman..................$ 46.54 20.69 Kettle person (2 kettles); Bitumastic, Enameler, Coal Tar, Pitch and Mastic worker......................$ 48.54 20.69 ---------------------------------------------------------------- SFCA0483-001 07/29/2019 ALAMEDA, CONTRA COSTA, SAN FRANCISCO, SAN MATEO AND SANTA CLARA COUNTIES: Rates Fringes SPRINKLER FITTER (FIRE)..........$ 65.52 32.67 ---------------------------------------------------------------- SFCA0669-011 04/01/2020 CALAVERAS, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, MONTEREY, SAN BENITO, SAN JOAQUIN, SANTA CRUZ, STANISLAUS AND TUOLUMNE COUNTIES: Rates Fringes SPRINKLER FITTER.................$ 38.95 25.63 ---------------------------------------------------------------- SHEE0104-001 07/01/2020 AREA 1: ALAMEDA, CONTRA COSTA, SAN FRANCISCO, SAN MATEO, SANTA CLARA AREA 2: MONTEREY & SAN BENITO AREA 3: SANTA CRUZ Rates Fringes SHEET METAL WORKER AREA 1: Mechanical Contracts under $200,000.............$ 55.92 45.29 All Other Work.............$ 64.06 46.83 AREA 2......................$ 52.90 36.44 AREA 3......................$ 55.16 34.18 ---------------------------------------------------------------- SHEE0104-003 07/01/2020 CALAVERAS AND SAN JOAQUIN COUNTIES: Rates Fringes SHEET METAL WORKER...............$ 43.50 37.42 ---------------------------------------------------------------- Page 61 of 24 July 2016 SHEE0104-005 07/01/2020 MARIPOSA, MERCED, STANISLAUS AND TUOLUMNE COUNTIES: Rates Fringes SHEET METAL WORKER (Excluding metal deck and siding)...........$ 40.38 43.47 ---------------------------------------------------------------- SHEE0104-007 07/01/2020 FRESNO, KINGS, AND MADERA COUNTIES: Rates Fringes SHEET METAL WORKER...............$ 42.53 39.64 ---------------------------------------------------------------- SHEE0104-015 07/01/2020 ALAMEDA, CONTRA COSTA, MONTEREY, SAN BENITO, SAN FRANCISCO, SAN MATEO, SANTA CLARA AND SANTA CRUZ COUNTIES: Rates Fringes SHEET METAL WORKER (Metal Decking and Siding only).........$ 44.45 35.55 ---------------------------------------------------------------- SHEE0104-018 07/01/2020 CALAVERAS, FRESNO, KINGS, MADERA, MARIPOSA, MERCED, SAN JOAQUIN, STANISLAUS AND TUOLUMNE COUNTIES: Rates Fringes Sheet metal worker (Metal decking and siding only).........$ 44.45 35.55 ---------------------------------------------------------------- TEAM0094-001 07/01/2018 Rates Fringes Truck drivers: GROUP 1.....................$ 31.68 27.86 GROUP 2.....................$ 31.98 27.86 GROUP 3.....................$ 32.28 27.86 GROUP 4.....................$ 32.63 27.86 GROUP 5.....................$ 32.98 27.86 FOOTNOTES: Articulated dump truck; Bulk cement spreader (with or without auger); Dumpcrete truck; Skid truck (debris box); Dry pre-batch concrete mix trucks; Dumpster or similar type; Slurry truck: Use dump truck yardage rate. Heater planer; Asphalt burner; Scarifier burner; Industrial lift truck (mechanical tailgate); Utility and clean-up truck: Use appropriate rate for the power unit or the equipment utilized. TRUCK DRIVER CLASSIFICATIONS GROUP 1: Dump trucks, under 6 yds.; Single unit flat rack (2- axle unit); Nipper truck (when flat rack truck is used appropriate flat rack shall apply); Concrete pump truck (when flat rack truck is used appropriate flat rack shall apply); Concrete pump machine; Fork lift and lift jitneys; Fuel and/or grease truck driver or fuel person; Snow buggy; Steam cleaning; Bus or personhaul driver; Escort or pilot car driver; Pickup truck; Teamster oiler/greaser and/or serviceperson; Hook tender (including loading and unloading); Team driver; Tool room attendant (refineries) GROUP 2: Dump trucks, 6 yds. and under 8 yds.; Transit mixers, through 10 yds.; Water trucks, under 7,000 gals.; Jetting trucks, under 7,000 gals.; Single-unit flat rack Page 62 of 24 July 2016 (3-axle unit); Highbed heavy duty transport; Scissor truck; Rubber-tired muck car (not self-loaded); Rubber-tired truck jumbo; Winch truck and ""A"" frame drivers; Combination winch truck with hoist; Road oil truck or bootperson; Buggymobile; Ross, Hyster and similar straddle carriers; Small rubber-tired tractor GROUP 3: Dump trucks, 8 yds. and including 24 yds.; Transit mixers, over 10 yds.; Water trucks, 7,000 gals. and over; Jetting trucks, 7,000 gals. and over; Vacuum trucks under 7500 gals. Trucks towing tilt bed or flat bed pull trailers; Lowbed heavy duty transport; Heavy duty transport tiller person; Self- propelled street sweeper with self-contained refuse bin; Boom truck - hydro-lift or Swedish type extension or retracting crane; P.B. or similar type self-loading truck; Tire repairperson; Combination bootperson and road oiler; Dry distribution truck (A bootperson when employed on such equipment, shall receive the rate specified for the classification of road oil trucks or bootperson); Ammonia nitrate distributor, driver and mixer; Snow Go and/or plow GROUP 4: Dump trucks, over 25 yds. and under 65 yds.; Water pulls - DW 10's, 20's, 21's and other similar equipment when pulling Aqua/pak or water tank trailers; Helicopter pilots (when transporting men and materials); Lowbedk Heavy Duty Transport up to including 7 axles; DW10's, 20's, 21's and other similar Cat type, Terra Cobra, LeTourneau Pulls, Tournorocker, Euclid and similar type equipment when pulling fuel and/or grease tank trailers or other miscellaneous trailers; Vacuum Trucks 7500 gals and over and truck repairman GROUP 5: Dump trucks, 65 yds. and over; Holland hauler; Low bed Heavy Duty Transport over 7 axles ---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing operation to which welding is incidental. ================================================================ Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year. Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at www.dol.gov/whd/govcontracts. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after Page 63 of 24 July 2016 award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii)). ---------------------------------------------------------------- The body of each wage determination lists the classification and wage rates that have been found to be prevailing for the cited type(s) of construction in the area covered by the wage determination. The classifications are listed in alphabetical order of ""identifiers"" that indicate whether the particular rate is a union rate (current union negotiated rate for local), a survey rate (weighted average rate) or a union average rate (weighted union average rate). Union Rate Identifiers A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than ""SU"" or ""UAVG"" denotes that the union classification and rate were prevailing for that classification in the survey. Example: PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of the union which prevailed in the survey for this classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. 07/01/2014 is the effective date of the most current negotiated rate, which in this example is July 1, 2014. Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA) governing this classification and rate. Survey Rate Identifiers Classifications listed under the ""SU"" identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As this weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the rates are survey rates based on a weighted average calculation of rates and are not majority rates. LA indicates the State of Louisiana. 2012 is the year of survey on which these classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination. 5/13/2014 indicates the survey completion date for the classifications and rates under that identifier. Survey wage rates are not updated and remain in effect until a new survey is conducted. Union Average Rate Identifiers Classification(s) listed under the UAVG identifier indicate that no single majority rate prevailed for those classifications; however, 100% of the data reported for the classifications was union data. EXAMPLE: UAVG-OH-0010 08/29/2014. UAVG indicates that the rate is a weighted union average rate. OH indicates the state. The next number, 0010 in the example, is an internal number used in producing the wage determination. 08/29/2014 indicates the survey completion date for the classifications and rates under that identifier. Page 64 of 24 July 2016 A UAVG rate will be updated once a year, usually in January of each year, to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based. ---------------------------------------------------------------- WAGE DETERMINATION APPEALS PROCESS 1.) Has there been an initial decision in the matter? This can be: * an existing published wage determination * a survey underlying a wage determination * a Wage and Hour Division letter setting forth a position on a wage determination matter * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed. With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to: Branch of Construction Wage Determinations Wage and Hour Division U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to: Wage and Hour Administrator U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue. 3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to: Administrative Review Board U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 4.) All decisions by the Administrative Review Board are final. ================================================================ END OF GENERAL DECISION " Page 1 of 24 July 2016 ATTACHMENT D APPENDIX OF TITLE VI ASSURANCES Page 2 of 24 July 2016 Appendix E of the Title VI Assurances (US DOT Order 1050.2A) During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to: Pertinent Nondiscrimination Authorities: • Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), (prohibits discrimination on the basis of sex); • Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982, (49 U.S.C. § 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; • The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. §47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq). City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-116 Agenda Date:2/23/2022 Version:1 Item #:11. Report regarding an ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Commission on Equity and Public Safety (Sky Woodruff,City Attorney,and Amy Ferguson, Management Fellow) RECOMMENDATION It is recommended that the City Council waive reading and adopt an ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Commission on Equity and Public Safety. BACKGROUND/DISCUSSION On February 9,2022,the City Council introduced an ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Commission on Equity and Public Safety.The Council introduced the ordinance with certain amendments, which are reflected in the accompanying updated ordinance. The City Council voted to introduce this ordinance, which now requires adoption. (Introduced 2/9/22, Vote 5-0) The ordinance is now ready for adoption. CONCLUSION Staff recommends that the City Council waive reading and adopt the ordinance,effective 30 days from adoption. City of South San Francisco Printed on 2/18/2022Page 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 #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. Ordinance adding Chapter 2.85 to Title 2 of the South San Francisco Municipal Code to create a Commission on Equity and Public Safety WHEREAS, the City of South San Francisco is striving to be a more inclusive and equitable city through advancing racial equity and social change; and WHEREAS, the City of South San Francisco is entrusted and expected to protect the civil and human rights of all individuals; and WHEREAS, the City of South San Francisco recognizes that establishing organizational accountability and transparency is the highest priority to effectively promote public trust; and WHEREAS, the City of South San Francisco has focused on cultivating and empowering a Commission on Racial and Social Equity (“Commission”), which concluded a yearlong effort with a Racial Equity Action Plan that recommends a community equity and safety advisory board, to be called the Commission on Equity and Public Safety; and WHEREAS, consistent with applicable state law governing general law cities, a Commission on Equity and Public Safety would be designed to make recommendations to the City Manager and City Council that relate to some or all City departments to further community equity and safety, bolster community participation and decision making, increase transparency and accountability, and foster trust between the community and City departments; and WHEREAS, such a Commission may also be designed to have a role in receiving, referring, and at times reviewing complaints about City personnel, providing a safe space for community feedback; and WHEREAS, a Commission on Equity and Public Safety will focus on a holistic approach to community safety which includes housing, education, social services, policing and other areas; and WHEREAS, Commission members shall perform their duty in a professional and impartial manner free from bias against public safety officials and City personnel; and WHEREAS, a Commission on Equity and Public Safety aims to achieve not only transparency and accountability but also increase trust in public safety and law enforcement, while offering enhanced safety nets that support communities previously harmed by isolation and systemic injustice; and WHEREAS, it is crucial that the assignments of the Commission are centered in achieving racial and social equity for all South San Francisco residents and recognizing that discrimination is deemed unacceptable and City of South San Francisco Printed on 2/25/2022Page 1 of 7 powered by Legistar™ File #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. not tolerated; and WHEREAS, the Commission on Equity and Public Safety is not a policy making body and will not participate in City departmental disciplinary actions, legal issues, criminal or internal investigations, or critical incidents, except where it would have the ability to review certain investigations that are disclosable to the public under applicable state law; and WHEREAS, the City Council hereby declares the following in furtherance of the intent of this ordinance: 1 The City Council recognizes, values, and will proactively work to promote diversity, equity, inclusion, and a sense of belonging within South San Francisco by establishing a Commission on Equity and Public Safety committed to promoting racial and social equity; 2 The City Council recognizes the necessity to apply an equity lens to reduce disparities and advance equitable practices, which involves enhancing safety nets that support communities previously harmed by isolation and systemic injustice and investing in areas that promote and create safe, healthy, and thriving communities; 3 The City Council openly supports and commits to joining endeavors around the State and nationwide to implement and produce greater accountability amongst public safety agencies, including but not limited to law enforcement; 4 The City Council commits to dismantling systemic and institutional racism and has accepted the Final Report and Racial Equity Action Plan by the South San Francisco Commission on Racial and Social Equity, describing the Commission’s effort to examine City’s policies and practices with respect to policing, mental health, and other community services to make recommendations to further equity and social justice; 5 The City Council continues to support the strategic initiatives of Quality of Life and Community Connections, ensuring public safety; 6 The City Council recognizes the Commission’s work to address racial and social inequity within the South San Francisco community, and therefore desires to establish a Commission on Equity and Public Safety to continue the City’s racial and social equity work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council finds that all recitals above are true and correct and are incorporated herein by this reference. SECTION 2. A new Chapter 2.85 is added to Title 2 of the City of South San Francisco Municipal Code to read as follows: Chapter 2.85 Commission on Equity and Public Safety City of South San Francisco Printed on 2/25/2022Page 2 of 7 powered by Legistar™ File #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. 2.85.010 Establishment; Composition; Appointment; Qualifications 2.85.020 Terms 2.85.030 Limitation of Terms; Vacancies 2.85.040 Chairperson; Vice chairperson; Secretary 2.85.050 Training 2.85.060 Meetings 2.85.070 Compensation 2.85.080 Attendance at meetings 2.85.090 Commission roles and responsibilities 2.85.010 Establishment; Composition; Appointment; Qualifications. (a) A Commission on Equity and Public Safety for the City is hereby established. The Commission shall operate pursuant to the requirements established herein. (b) The Commission shall consist of a maximum of 7 members, plus one alternate. (c) The City Council shall appoint the members of the Commission. Each Councilmember shall appoint one member and is not limited to selecting candidates from their District. The remaining two members and one alternate shall be appointed by a majority of the City Council. Members of the Commission appointed by an individual Councilmember may be removed by the Councilmember who appointed them. Members of the Commission appointed by a majority of the City Council may be removed by a majority of the City Council. (d) Members of the Commission shall be residents of South San Francisco. In making appointments, the City Council shall consider diverse and active community members of integrity and commitment to racial and social equity representing the diversity of South San Francisco; 2.85.020 Terms. Except as provided in Section 2.85.030 below, the term of each member of the Commission shall be four years and until a successor is appointed and qualified; however, terms shall be staggered and members shall be appointed to either an initial four-year or -two year term to allow for staggered terms. Terms shall expire in even-numbered years. Terms of members of the Commission appointed by an individual Councilmember shall coincide with the term of the Councilmember who appointed them. 2.85.030 Limitation of Terms; Vacancies. Commission members shall be limited to three consecutive terms. For purposes of calculating consecutive terms, service of at least two years plus one day during a term shall be counted as a complete term; all prior continuous service of existing Commission member shall be counted. Upon serving the maximum number of consecutive terms, a Commission member shall not be eligible for re-appointment to the Commission for a period of two years. If a vacancy occurs on the Commission, the alternate shall serve the remaining unexpired term of the former incumbent. If an additional vacancy occurs, the City Council shall appoint an individual to serve the remaining unexpired term. 2.85.040 Chairperson; Vice chairperson; Secretary. City of South San Francisco Printed on 2/25/2022Page 3 of 7 powered by Legistar™ File #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. (a) At the first meeting of the Commission and the first meeting of each calendar year, the Commission shall elect a Chairperson and a Vice Chairperson. The term of said offices shall be one year. The Vice Chairperson shall serve as chair in the absence of the Chairperson. (b)The City’s Chief Equity and Inclusion Officer or designee shall serve as Commission Secretary. 2.85.050 Training. (a) Each member of the Commission shall receive training on topics relevant to the Commission’s roles and responsibilities as set forth in this chapter, and as may be deemed necessary by the Commission from time to time. The City Manager’s Office shall be responsible for arranging training of the Commission. 2.85.060 Meetings. (a) The Commission shall hold regular meetings on the third Monday of every month. It is expected that each member will contribute and provide meaningful input on the topics on the meeting agenda. The Chairperson will collaborate with the Secretary to establish meeting agendas. Individual Commission members may suggest topics to be placed on a meeting agenda during a public meeting. (b) The Commission may meet more frequently than prescribed in subsection (a) to address identified issues related to racial or social equity or special circumstances. (c) The Commission may create committees and/or subcommittees to review data, develop a plan to assess the areas of concern with respect to systemic racism within South San Francisco, and provide input or recommendations to the entire Commission and/or the City Manager and City Council. (d) A majority of the then-serving members of the Commission shall constitute a quorum. (e) All meetings of the Commission shall be open to the public and comply with the Ralph M. Brown Act (California Government Code section 54950 et seq.). (f) If the day designated as a regular, adjourned regular, special or study meeting falls upon a legal holiday, the Commission shall meet upon the next succeeding day which is not a holiday unless otherwise ordered by the Commission. (g) The Commission may create, amend, and repeal its own bylaws or otherwise establish rules of procedure and other rules for the conduct of its business by resolution. (h) The Secretary of the Commission shall ensure the preparation and maintenance of minutes of the business conducted and actions taken by the Commission. 2.85.070 Compensation. Members of the Commission shall be eligible for a stipend as provided for in Chapter 2.84. 2.85.080 Attendance at meetings. City of South San Francisco Printed on 2/25/2022Page 4 of 7 powered by Legistar™ File #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. Commission members are expected to attend all regular and special Commission meetings. Commission members may be removed by a majority vote of the City Council following three excused or two unexcused absences for such meetings during the course of one fiscal year. An absence is considered excused when a Commission member notifies the Secretary of the intended absence at least twenty-four hours prior to the scheduled meeting time. All other absences are considered unexcused. 2.85.090 Commission roles and responsibilities. The Commission shall be an advisory body to the City Manager and City Council on matters relating to community equity and safety, applying an equity lens to community issues and fostering a sense of safety. The Commission’s role includes, but is not limited to, carrying out and, as applicable, making recommendations to the City Manager with respect to the following tasks: (a) The Commission will identify areas to improve equity, diversity, inclusion, and belonging in all areas of City processes and public safety and make appropriate recommendations to the City Manager. Any policy or procedure that is not simply administrative and is under City Council’s purview will be brought to City Council for discussion and approval. (b) The Commission will recommend appropriate changes of public safety and equity policies and procedures toward the goals of safeguarding the rights of persons and promoting higher standards of competency, efficiency and justice in the provision of equitable community public safety services. (c) The Commission may recommend policies and practices and advocate for early intervention strategies that minimize involvement of youth in the criminal justice system. (d) The Commission will act as a liaison between the community and City staff, offering strategies to develop and implement sound community public safety concepts, increase public awareness, and further efforts of transparency and accountability. (e) The Commission will utilize community voice not only to address concerns regarding policing but also other equity and public safety arenas that impact quality of life and safeguard against disaster, crime, and other threats or danger to civilian protections. (f) The Commission will connect with community networks and community-based organizations as necessary in pursuit of its goals. (g) The Commission will periodically share its efforts externally through updates on the City website and social media, through community meetings or other outreach efforts as necessary, and through an annual written report to the City Manager and City Council concerning its priorities and progress. The report will include an annual work plan with progress on initiatives. (h) The Commission will promote positive police-community relations in an effort to provide better services and expectations from the community and police. (i) The Commission will provide an alternative channel for members of the public to file a complaint regarding compliance with City policies and applicable laws by City personnel, as follows: City of South San Francisco Printed on 2/25/2022Page 5 of 7 powered by Legistar™ File #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. 1)The Commission will receive complaints regarding South San Francisco personnel alleging failure to comply with City policies and applicable laws. The Commission shall refer such complaints to the City’s Human Resources Department. 2)The Commission will not investigate complaints received. In consultation with the City Attorney’s Office, the Human Resources Department will determine the appropriate form of investigation and assign an investigator. 3)The complaint and investigation process shall be designed to respect the rights of both complainants and the City personnel who is the subject of the complaint, and shall comply with applicable federal and state law, including California laws governing general law cities and Government Code section 3300 et seq., and bargaining agreements. The complaint and investigation process shall also maintain the confidentiality of the complainant to the extent possible. 4)For complaints made directly to the Commission, the Commission may receive updates only on the assignment of a complaint to an investigator and the identity of the investigator, investigation completion date, whether the complaint was substantiated, and any remedial actions taken. “Remedial actions” do not include discipline or other personnel info, but may include certain remedy to the complainant such as, for example only, whether a citation is dismissed. The foregoing process shall not alter existing procedures relating to filing complaints with the City. Complaints made by City personnel related to matters within the course of employment shall be made in accordance with the City’s existing policies and procedures. The City Council may adopt additional policies and procedures governing the Commission’s receipt, referral, and review of complaints. (j) In instances where investigatory files and related material are considered public records under California Penal Code sections 832.5 and 832.7, the Commission shall have the ability to review records and files relating to the investigation and the outcome of the investigation when the records, files or outcome are considered public records. Such records and files shall only be provided to the Commission upon conclusion of the investigation or after all administrative and judicial appeals have been exhausted, if required by applicable state law. The Commission may ask questions and make policy recommendations for future investigations, but in no event shall the Commission make independent decisions, or determine or make recommendations regarding specific disciplinary actions or related outcomes. (k) The Commission will review data related to equity and public safety. (l) The Commission will submit a yearly work plan to the City Manager and City Council in order to ensure a manageable scope of work. The Commission will also submit an annual report including the work plan and progress made on initiatives. SECTION 3.Severability City of South San Francisco Printed on 2/25/2022Page 6 of 7 powered by Legistar™ File #:22-117 Agenda Date:2/23/2022 Version:1 Item #:11a. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 4.Publication and Effective Date Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. ***** Introduced at a regular meeting of the City Council of the City of South San Francisco held the 09th day of February 2022. City of South San Francisco Printed on 2/25/2022Page 7 of 7 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-127 Agenda Date:2/23/2022 Version:1 Item #:12. Report regarding a fourth public hearing to receive a report from the city’s demographer,National Demographic Corporation (NDC)regarding the redrawing of district maps for the City of South San Francisco. (Rosa Govea Acosta, City Clerk and Kristen Parks, National Demographics Corporation) RECOMMENDATION It is recommended that the City Council:(1)receive a report from the City’s demographer,NDC,who has prepared a district map from public input and Council feedback;and (2)conduct a fourth public hearing to receive public input on district boundaries and provide direction regarding the proposed map revision. BACKGROUND/DISCUSSION Every ten years,cities with by-district election systems must use new census data to review and,if needed, redraw district lines to reflect how local populations have changed.This process,called redistricting,ensures all districts have nearly equal population.The redistricting process for the City of South San Francisco must be completed by April 17, 2022. The city adopted its current district boundaries on July 11,2018,based on 2010 census data as required by law. Once the data is evaluated,and if found to be imbalanced,the city must redraw districts in compliance with the FAIR MAPS Act adopted by the California legislature as AB 849 and took effect January 1, 2020. Under the Act,the council must draw and adopt boundaries using the following criteria in the listed order of priority (Elec. Code §21601) for general law cities: 1. Comply with federal requirements of equal population and the Voting Rights Act. 2. Geographically contiguous. 3. Undivided neighborhoods and “communities of interest”. 4. Easily identifiable boundaries. 5. Compact (do not bypass one group of people to get to a more distant group of people). 6. Shall not favor or discriminate against a political party. By law,the city must hold at least four public hearings,at an affixed time,to inform the public about the process and solicit community member input before adopting a final map: ·At least one public hearing before Council draws a map; ·At least two public hearings must happen after Council draws a map; ·At least one hearing, or workshop/community meeting, must be held on a Saturday or Sunday. The public is requested to provide input regarding communities of interest and other local factors that should be considered while drafting district maps.A community of interest under the relevant Elections Code for cities (Section 21601(c),21621(c))is a “population that shares common social or economic interests that should be included within a single district for purposes of its effective and fair representation.”Possible features defining City of South San Francisco Printed on 2/23/2022Page 1 of 3 powered by Legistar™ File #:22-127 Agenda Date:2/23/2022 Version:1 Item #:12. community of interest might include, but are not limited to: · School attendance areas; · Natural dividing lines such as major roads, hills, or highways; · Areas around parks and other neighborhood landmarks; · Common issues, neighborhood activities, or legislative/election concerns; and · Shared demographic characteristics, such as: -Similar levels of income, education, or linguistic isolation; -Languages spoken at home; and -Single-family and multi-family housing unit areas. On April 22,2021,the city entered into an agreement with National Demographics Corporation (NDC)to guide and support the City Council through the redistricting process.NDC presented the information to Council on June 9,2021,and on June 23,2021,the City Council chose to continue the redistricting process without a commission.On October 13,2021,NDC presented the 2020 final Census Data for the City of South San Francisco. The City Council held the first public hearing on July 14,2021,the second public hearings on December 1, 2021,and the third public hearing on January 26,2022,to receive community input regarding district boundaries and solicit draft maps. PROPOSED REDISTRICTING SCHEDULE Date Details February 23, 2022 4th Public Hearing to discuss and revise draft maps March 9, 2022 Adopt final map as ordinance November 8, 2022 District election with new districts Community members that require translation services,including American Sign Language,may solicit these services in advance (72-hours) to the City Clerk's office. MAPPING TOOLS Draft maps were due on Tuesday,January 18,2022.A total of four maps were submitted for Council’s consideration and posted to the city’s Redistricting website for public viewing. NEXT STEPS The City Council will adopt the final map on March 9, 2022. RELATIONSHIP TO THE STRATEGIC PLAN The City’s Redistricting efforts will promote community participation and strengthen collaboration with County partners by contributing to the City’s Strategic Plan Priority No. 6 - Community Connections. FISCAL IMPACT There is no fiscal impact associated with holding this public hearing. CONCLUSION It is recommended that the City Council:(1)receive a report from the City’s demographer,National City of South San Francisco Printed on 2/23/2022Page 2 of 3 powered by Legistar™ File #:22-127 Agenda Date:2/23/2022 Version:1 Item #:12. It is recommended that the City Council:(1)receive a report from the City’s demographer,National Demographic Corporation,who has prepared a district map from public input and Council feedback;and (2) conduct a fourth public hearing to receive public input on district boundaries and provide direction regarding the proposed map revision. City of South San Francisco Printed on 2/23/2022Page 3 of 3 powered by Legistar™ February 23, 2022 1 Redistricting Public Hearing #4 Kristen Parks, National Demographics Corp. City of South San Francisco February 23, 2022 2 Date Event April 11, 2018 Council passed resolution to change to district elections July 11, 2018 Council passed ordinance approving new district boundaries 2020 First by-district elections in two districts 2021 -2022 Districts must be reviewed following 2020 Census Nov. 2022 First by-district elections in remaining three districts South San Francisco’s Transition to Districts 3 Current District Map (2018) February 23, 2022 4 Redistricting Timeline Date Event July 14, 2021 1st Public Hearing August 12,2021 Census Bureau released 2020 population counts September 27, 2021 California released official adjusted population data December 1, 2021 2nd Public Hearing/Community Workshop January 18, 2022 Deadline for public map submissions January 26, 2022 3rd Public Hearing February 23, 2022 4th Public Hearing April 17, 2022 Legal deadline to adopt new map February 23, 2022 5 Legal Requirements & Other Goals 1.Ensure geographic contiguity 2.Minimize division of neighborhoods & “communities of interest” 3.Create easily identifiable boundaries 4.Maintain compactness Do not “favor or discriminate against a political party” Ensure equal population Comply with federal Voting Rights Act Prevent racial gerrymandering 3. Other Goals2. California Law May include… •Minimize changes to election cycles •Preserve core of existing districts 1. Federal Law Do not bypass a nearby population to take in a more distant population * Total population deviation < 10% 6 Current Districts Are “Population Balanced” District 1 2 3 4 5 Total 2020 Census Total Population 13,097 13,486 12,933 13,088 13,580 66,184 Deviation from ideal*-140 249 -304 -149 343 647 % Deviation -1.06%1.88%-2.30%-1.12%2.59%4.89% 2020 Total Pop. % Hisp 30%11%40%26%56%33% % NH White 20%12%19%29%11%18% % NH Black 2%3%2%1%2%2% % Asian-American 44%71%34%39%25%43% Citizen Voting Age Pop Total 9,540 9,733 9,934 11,050 6,823 47,081 % Hisp 25%10%38%23%48%28% % NH White 30%13%23%38%14%25% % NH Black 1%5%1%2%5%3% % Asian/Pac.Isl.42%70%35%37%32%44% Language spoken at home english 53%37%39%56%30%43% spanish 17%8%34%12%48%23% asian-lang 25%48%21%23%17%27% other lang 4%7%5%9%6%6% Child in Household child-under18 26%31%34%28%41%32% Housing Stats single family 63%72%70%81%58%69% multi-family 37%28%30%19%42%31% rented 41%21%46%32%58%39% owned 59%79%54%68%42%61% *Ideal District Size: Each district must contain about 13,326 people 7 Population Balance Math Ideal district size = 13,326 Calculated by dividing City’s the total population by the number of districts 66,184/5 = 13,326.8 Total deviation = 647 Calculated by subtracting the smallest district’s population from the largest district’s population D5 (13,580) -D3 (12,933) = 647 Total deviation %= 4.89% Calculated by the subtracting the smallest deviation from the largest deviation (2.59%) -(-2.3%) = 4.89% February 23, 2022 8 Defining “Communities of Interest” Under California Elections Code, “community of interest” has a very specific definition in the context of redistricting: Definitions of “communities of interest” do not include relationships with political parties, incumbents, or political candidates. A “community of interest”is a population that shares common social or economic interests that should be included within a single district for purposes of its effective and fair representation. February 23, 2022 Draft Maps (5) MAP POP. DEVIATION BALANCED? Public Map 101 5.19% Public Map 102 3.25% Public Map 103 3.88% Public Map 104 1.44% NDC Map 102a 3.71% Current Map 4.89% 9 Public Map Submissions Draft maps available online at ssf.net 10 Public Map 101 Public Map 102 Public Map 103 Public Map 104 NDC Map 103a 11 District 1 2 3 4 5 Total Census 2020 Adjusted Total Pop 13,129 13,486 13,502 13,056 13,011 66,184 Deviation from ideal -108 249 265 -181 -226 491 % Deviation -0.82%1.88%2.00%-1.37%-1.71%3.71% Citizen Voting Age Pop Total 9,568 9,733 9,837 11,023 6,920 47,081 % Hisp 24%10%38%24%48%28% % NH White 31%13%22%37%16%25% % NH Black 1%5%2%2%5%3% % Asian/Pac.Isl.43%70%37%36%29%44% Public Map 103: “Hillside Map” District 1 2 3 4 5 Total 2020 2020 Census (Adjusted)13,281 13,486 13,220 12,972 13,225 66,184 Deviation from ideal 44 249 -17 -265 -12 514 % Deviation 0.33%1.88%-0.13%-2.00%-0.09%3.88% Citizen Voting Age Pop Total 10,440 9,733 10,018 10,330 6,560 47,081 % Hisp 22%10%31%32%50%28% % NH White 35%13%19%35%19%25% % NH Black 1%5%1%2%5%3% % Asian/Pac.Isl.41%70%47%30%24%44% 12 13 For Comparison: Current Districts District 1 2 3 4 5 Total 2020 2020 Census (Adjusted)13,097 13,486 12,933 13,088 13,580 66,184 Deviation from ideal -140 249 -304 -149 343 647 % Deviation -1.06%1.88%-2.30%-1.12%2.59%4.89% Citizen Voting Age Pop Total 9,540 9,733 9,934 11,050 6,823 47,081 % Hisp 25%10%38%23%48%28% % NH White 30%13%23%38%14%25% % NH Black 1%5%1%2%5%3% % Asian/Pac.Isl.42%70%35%37%32%44% February 23, 2022 14 For More Information Email: redistricting@ssf.net NDC 102a District 1 Total Pop 13,129 Deviation from ideal -108 % Deviation -0.82% % Hisp 29.1% % NH White 20% % NH Black 2% % Asian-American 44% Total 9,568 % Hisp 24% % NH White 31% % NH Black 1% % Asian/Pac.Isl.43% Total 7,876 % Latino est.33% % Spanish-Surnamed 30% % Asian-Surnamed 16% % Filipino-Surnamed 9% % NH White est.43% % NH Black 1% Total 6,525 % Latino est.33% % Spanish-Surnamed 30% % Asian-Surnamed 16% % Filipino-Surnamed 9% % NH White est.43% % NH Black 1% Total 4,402 % Latino est.31% % Spanish-Surnamed 29% % Asian-Surnamed 13% % Filipino-Surnamed 8% % NH White est.48% % NH Black est.1% ACS Pop. Est.Total 13,160 age0-19 20% age20-60 57% age60plus 23% immigrants 35% naturalized 72% english 53% spanish 18% asian-lang 25% other lang 5% Language Fluency Speaks Eng. "Less than Very Well"18% hs-grad 40% bachelor 30% graduatedegree 11% Child in Household child-under18 26% Pct of Pop. Age 16+employed 72% income 0-25k 8% income 25-50k 11% income 50-75k 10% income 75-200k 51% income 200k-plus 20% single family 64% multi-family 36% rented 40% owned 60% Total population data from the 2020 Decennial Census. Surname-based Voter Registration and Turnout data from the California Statewide Database. Latino voter registration and turnout data are Spanish-surname counts adjusted using Census Population Department undercount estimates. NH White and NH Black registration and turnout counts estimated by NDC. Citizen Voting Age Pop., Age, Immigration, and other demographics from the 2015-2019 American Community Survey and Special Tabulation 5-year data. 2 13,486 249 1.88% 11% 12% 3% 71% 9,733 10% 13% 5% 70% 8,183 27% 25% 26% 14% 27% 8% 6,683 27% 24% 27% 14% 26% 8% 4,206 26% 24% 25% 14% 28% 9% 13,504 17% 54% 28% 52% 77% 37% 8% 48% 7% 24% 33% 34% 12% 31% 67% 4% 13% 12% 48% 24% 72% 28% 21% 79% 3 13,502 265 2.00% 45% 16% 2% 32% 9,837 38% 22% 2% 37% 7,195 38% 35% 16% 6% 39% 3% 5,800 38% 35% 16% 6% 39% 2% 3,868 37% 34% 14% 6% 42% 2% 14,823 23% 57% 20% 39% 68% 38% 36% 20% 6% 26% 43% 23% 9% 36% 69% 10% 12% 15% 45% 19% 79% 21% 40% 60% 4 13,056 -181 -1.37% 27% 29% 1% 38% 11,023 24% 37% 2% 36% 8,659 29% 26% 12% 8% 51% 2% 7,332 28% 26% 12% 8% 52% 2% 5,203 27% 25% 10% 6% 56% 2% 14,173 18% 56% 26% 31% 79% 56% 12% 23% 9% 14% 46% 26% 9% 28% 70% 11% 10% 10% 48% 21% 81% 19% 33% 67% 5 13,011 -226 -1.71% 53% 13% 2% 27% 6,920 48% 16% 5% 29% 5,879 48% 44% 11% 6% 28% 9% 4,639 47% 43% 12% 6% 28% 9% 2,802 48% 44% 9% 5% 32% 7% 11,920 25% 55% 19% 44% 56% 31% 46% 18% 5% 30% 48% 18% 5% 39% 70% 14% 13% 17% 47% 8% 48% 52% 64% 36% Total 66,184 491 3.71% 33% 18% 2% 43% 47,081 28% 25% 3% 44% 37,792 34% 31% 17% 9% 38% 4% 30,979 34% 31% 17% 9% 39% 4% 20,481 32% 30% 14% 8% 43% 4% 67,579 21% 56% 23% 40% 71% 43% 23% 27% 6% 22% 42% 26% 9% 32% 69% 9% 12% 13% 48% 19% 69% 31% 39% 61% 02/18/2022 11:17 Page 1 of 1 Total Pop Citizen Voting Age Pop Voter Registration (Nov 2020) Voter Turnout (Nov 2020) Voter Turnout (Nov 2018) Age Immigration Language spoken at home Education (among those age 25+) Household Income Housing Stats February 23, 2022 1 Redistricting Public Hearing #4 Kristen Parks, National Demographics Corp. City of South San Francisco February 23, 2022 2 Date Event April 11, 2018 Council passed resolution to change to district elections July 11, 2018 Council passed ordinance approving new district boundaries 2020 First by-district elections in two districts 2021 -2022 Districts must be reviewed following 2020 Census Nov. 2022 First by-district elections in remaining three districts South San Francisco’s Transition to Districts 3 Current District Map (2018) February 23, 2022 4 Redistricting Timeline Date Event July 14, 2021 1st Public Hearing August 12,2021 Census Bureau released 2020 population counts September 27, 2021 California released official adjusted population data December 1, 2021 2nd Public Hearing/Community Workshop January 18, 2022 Deadline for public map submissions January 26, 2022 3rd Public Hearing February 23, 2022 4th Public Hearing April 17, 2022 Legal deadline to adopt new map February 23, 2022 5 Legal Requirements & Other Goals 1.Ensure geographic contiguity 2.Minimize division of neighborhoods & “communities of interest” 3.Create easily identifiable boundaries 4.Maintain compactness Do not “favor or discriminate against a political party” Ensure equal population Comply with federal Voting Rights Act Prevent racial gerrymandering 3. Other Goals2. California Law May include… •Minimize changes to election cycles •Preserve core of existing districts 1. Federal Law Do not bypass a nearby population to take in a more distant population * Total population deviation < 10% 6 Current Districts Are “Population Balanced” District 1 2 3 4 5 Total 2020 Census Total Population 13,097 13,486 12,933 13,088 13,580 66,184 Deviation from ideal*-140 249 -304 -149 343 647 % Deviation -1.06%1.88%-2.30%-1.12%2.59%4.89% 2020 Total Pop. % Hisp 30%11%40%26%56%33% % NH White 20%12%19%29%11%18% % NH Black 2%3%2%1%2%2% % Asian-American 44%71%34%39%25%43% Citizen Voting Age Pop Total 9,540 9,733 9,934 11,050 6,823 47,081 % Hisp 25%10%38%23%48%28% % NH White 30%13%23%38%14%25% % NH Black 1%5%1%2%5%3% % Asian/Pac.Isl.42%70%35%37%32%44% Language spoken at home english 53%37%39%56%30%43% spanish 17%8%34%12%48%23% asian-lang 25%48%21%23%17%27% other lang 4%7%5%9%6%6% Child in Household child-under18 26%31%34%28%41%32% Housing Stats single family 63%72%70%81%58%69% multi-family 37%28%30%19%42%31% rented 41%21%46%32%58%39% owned 59%79%54%68%42%61% *Ideal District Size: Each district must contain about 13,326 people 7 Population Balance Math Ideal district size = 13,326 Calculated by dividing City’s the total population by the number of districts 66,184/5 = 13,326.8 Total deviation = 647 Calculated by subtracting the smallest district’s population from the largest district’s population D5 (13,580) -D3 (12,933) = 647 Total deviation %= 4.89% Calculated by the subtracting the smallest deviation from the largest deviation (2.59%) -(-2.3%) = 4.89% February 23, 2022 8 Defining “Communities of Interest” Under California Elections Code, “community of interest” has a very specific definition in the context of redistricting: Definitions of “communities of interest” do not include relationships with political parties, incumbents, or political candidates. A “community of interest”is a population that shares common social or economic interests that should be included within a single district for purposes of its effective and fair representation. February 23, 2022 Draft Maps (5) MAP POP. DEVIATION BALANCED? Public Map 101 5.19% Public Map 102 3.25% Public Map 103 3.88% Public Map 104 1.44% NDC Map 102a 3.71% Current Map 4.89% 9 Public Map Submissions Draft maps available online at ssf.net 10 Public Map 101 Public Map 102 Public Map 103 Public Map 104 NDC Map 102a 11 District 1 2 3 4 5 Total Census 2020 Adjusted Total Pop 13,129 13,486 13,502 13,056 13,011 66,184 Deviation from ideal -108 249 265 -181 -226 491 % Deviation -0.82%1.88%2.00%-1.37%-1.71%3.71% Citizen Voting Age Pop Total 9,568 9,733 9,837 11,023 6,920 47,081 % Hisp 24%10%38%24%48%28% % NH White 31%13%22%37%16%25% % NH Black 1%5%2%2%5%3% % Asian/Pac.Isl.43%70%37%36%29%44% 12 For Comparison: Current Districts District 1 2 3 4 5 Total 2020 2020 Census (Adjusted)13,097 13,486 12,933 13,088 13,580 66,184 Deviation from ideal -140 249 -304 -149 343 647 % Deviation -1.06%1.88%-2.30%-1.12%2.59%4.89% Citizen Voting Age Pop Total 9,540 9,733 9,934 11,050 6,823 47,081 % Hisp 25%10%38%23%48%28% % NH White 30%13%23%38%14%25% % NH Black 1%5%1%2%5%3% % Asian/Pac.Isl.42%70%35%37%32%44% February 23, 2022 13 For More Information Email: redistricting@ssf.net City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-898 Agenda Date:2/23/2022 Version:1 Item #:13. Report regarding the Annual Comprehensive Financial Report for fiscal year ended June 30,2021,mid-year update for fiscal year ending June 30,2022,and additional appropriation considerations.(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 the adoption of a resolution accepting the Annual Comprehensive Financial Report (“ACFR”)for Fiscal Year (“FY”)2020-21,acknowledging the mid-year financial update for FY 2020-21, and approving the additional appropriation requests for FY 2021-22. BACKGROUND/DISCUSSION Due to the formatting limitations of the City’s Agenda Management platform,the full staff report accompanying this agenda item can be found as Attachment 1 of this report. Attachments: 1.Staff Report 2.FY 2020-21 General Fund Operating Summary 3.Presentation to Council City of South San Francisco Printed on 2/18/2022Page 1 of 1 powered by Legistar™ City of South San Francisco Page 1 of 19 File#: 21-898 Agenda Date: 02/23/2022 Version: 1 Item #: Report regarding the Annual Comprehensive Financial Report for fiscal year ended June 30, 2021, mid-year update for fiscal year ending June 30, 2022, and additional appropriation considerations. (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 the adoption of a resolution accepting the Annual Comprehensive Financial Report (“ACFR”) for Fiscal Year (“FY”) 2020-21, acknowledging the mid-year financial update for FY 2020-21, and approving the additional appropriation requests for FY 2021-22. BACKGROUND/DISCUSSION The information contained herein was presented to the Budget Standing Committee of the City Council on February 8, 2022 via a teleconference meeting that was available to the public. The fiscal year ending June 30, 2021 is notable in that it marks the first full year impacted by the COVID-19 pandemic. Having enjoyed a decade of marked economic growth, the City’s businesses and residents were forced to adapt as necessary virus containment measures slowed much of the global economy to a sluggish pace. 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 previous fiscal year. As a result, the FY 2020-21 Budget was approved by Council in June 2020 under extraordinary circumstances, with tremendous uncertainty surrounding how the pandemic would impact the City’s budget. As new information and circumstances emerged, the FY 2020-21 budget was modified several times to adapt to the ever-changing economic conditions. In October 2020 and again in February 2021, Council approved certain budget adjustments in anticipation of a healthy General Fund surplus for FY 2019-20. These actions allowed the City, for example, to move forward with key programs such as the establishment of the Commission on Racial and Social Equity and the art installation in the Karyl Matsumoto (Caltrain) Plaza. In addition, in March 2021, the federal government passed the American Rescue Plan Act (ARPA) emergency stimulus package which included $350 billion in aid for states, counties and cities to combat the negative economic impacts 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 19 of the COVID-19 pandemic. South San Francisco’s award was $12.28 million – $6.14 million of which was received in June 2021. The first tranche in ARPA funded critical community programs such as the Guaranteed Income Program, Jobs for Youth, and seed funding for the City’s Economic Mobility Hub. The ARPA appropriations are discussed in further detail in Section V.E of this report. With the FY 2020-21 now closed and the year-end results (ACFR) available, it shows the City continues to have a strong liquidity position with high reserve levels, allowing the City to fund mission-critical projects into the future. This report will review: I. FY 2020-21 ACFR & General Fund Summary II. FY 2020-21 General Fund Variance Analysis (Budget vs. Actuals) A. Revenue Variance Rationale (includes Measure W) B. Expenditure Variance Rational III. FY 2020-21 Summary Results for Other Funds IV. Developer Impact Fees V. Current Fiscal Year (FY 2021-22) Update A. General Fund Revenues – 2nd Quarter B. General Fund Expenditures – 2nd Quarter C. Additional General Fund Appropriations Request D. Additional Non-General Fund Appropriations Request E. ARPA VI. Reserves Overview & Considerations I. FY2020-21 ACFR & GENERAL FUND SUMMARY The ACFR is an audited summary report of the City’s financial transactions over the course of the fiscal year. The final FY 2020-21 ACFR is attached to the resolution associated with this report (see Exhibit A). The financial statements enclosed were prepared in conformity with Generally Accepted Accounting Principles (GAAP) and comply with reporting requirements of the national Governmental Accounting Standards Board (GASB). As the Committee is aware, 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 FY 2020-21, the City received $110.1 million in General Fund operating revenues, which was $5.8 million, or 5.6 percent, above the amended budget of $104.3 million. Including carryover purchase orders ($5.6 million), General Fund expenditures were $114.2 million, a favorable variance of $1.6 million, or 1.4 percent, when compared to the amended budget of $115.7 million. Including transfers in and out and other accounting adjustments and excluding encumbrances, the City of South San Francisco Page 3 of 19 net reduction in fund balance (General Fund deficit) is $2.3 million. It is important to note that these numbers do not include any Measure W activities. Table 1 below provides a summary of the General Fund position at the end of FY2020-21, which ties to the ACFR. Table 1: FY 2020-21 General Fund Operating Summary Total Revenues $ 110,109,662 - Total Expenditures $ 108,609,697 Net Operating Surplus $ 1,499,965 - Net Transfers & Adjustments $ 3,809,429 TOTAL General Fund Deficit $ 2,309,464 A General Fund deficit for FY 2020-21 was anticipated and budgeted from the sizable $16.3 million General Fund surplus realized in FY 2019-20. While the cashflow deficit for FY 2020-21 was $2.3 million as shown above, this is over $1.1 million lower than the $3.4 million projected shortfall for the year when the FY 2020-21 was adopted back in June 2021. The available unappropriated fund balance as of June 30, 2021 in the General Fund is discussed further in Section VI. II. FY2020-21 GENERAL FUND VARIANCE ANALYSIS (BUDGET vs. ACTUALS) The following details notable variances only between the FY2020-21 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 FY2020-21. 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 +$1,187,908 Property tax revenue, one of the City’s primary recurring General Fund revenue sources, continues to reflect the strong real estate prices in the area – totaling $44.2 million in FY 2020-21. Compared to the amended budget which included a $1.5 million upward adjustment during the mid-year review, revenues came in $1.2 million, or 2.8 percent, higher than budget. This was primarily due to the former RDA property tax allocation, which was $0.6 million over budget, and secured property tax which was $0.6 million higher than anticipated. 2. Sales & Use Tax +$870,155 Sales and Use Tax revenue totaled $19.4 million in FY 2020-21, which was $0.9 million, or 4.7 percent, above the amended budget which included a $1.6 million upward revision during the mid-year review. Early in the fiscal year, shelter-in-place orders related to the COVID-19 pandemic had a negative impact on sales tax but as the year progressed and vaccines were rolled out, restrictions eased and the local and wider economy began to rebound and spending levels increased, driving a recovery in sales tax revenue. City of South San Francisco Page 4 of 19 3. Measure W +$671,292 Measure W brought in $13.4 million which was $0.7 million, or 5.3 percent, above budget expectations. While Measure W revenue is applied and remitted to the City differently than the general sales tax revenue category, it generally follows similar collection patterns and came in higher than budget due to the relaxing of COVID-19 related restrictions as the year progressed. 4. Transient Occupancy Tax +$805,942 Transient Occupancy Tax (TOT) collection was the most dramatically impacted by the COVID-19 pandemic and associated restrictions on travel. TOT revenue for FY 2020-21 was $6.7 million which was $0.8 million, or 13.7 percent, higher than amended budget which included a $2 million downward revision to this category from original budget during the mid-year review. The revision was made due to the unanticipated extended impacts of the pandemic on hotel occupancy. The full extent of the revision did not manifest, however, as travel restrictions eased as the second half of the year progressed and occupancy rates started to increase. By way of comparison, pre-pandemic TOT revenue (FY 2018-19) was $17.1 million. 5. Other Taxes +$1,411,558 This category includes Real Property Transfer tax, Business License tax and Commercial Parking Tax. In FY 2020-21, total other tax revenue was $4.5 million which was $1.4 million, or 45.3 percent, above the amended budget. The main reason for this variance were Real Property Transfer tax coming in $1 million above the amended budget. 6. Building & Fire Permits +$593,505 In FY 2020-21, permit revenue reflected the numerous residential and commercial developments currently under construction in South San Francisco. As such, the City’s permit revenue reached a total of $15.6 million which was $0.6 million, or 4.0 percent, greater than amended budget and close to the prior year’s record of $15.9 million. 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 -$253,499 Fines and Forfeitures revenue totaled $0.5 million in FY2020-21 which was $0.3 million, or 32.1 percent, lower than the amended budget. This was due to reduced traffic levels which continued well into the year and enforcements (i.e., parking/street cleaning fines) remaining less of a priority during the period of COVID-19 related restrictions on residents. 8. Intergovernmental +$1,062,519 The City received a total of $4.3 million in revenue from other government agencies which City of South San Francisco Page 5 of 19 was $1.1 million, or 32.6 percent, higher than the amended budget. The increase largely reflects the timing difference 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. 9. Charges for Services -$545,501 Charges for Services revenue for FY2020-21 was $6.5 million, which was $0.5 million, or 7.7 percent, below the amended budget. Service charges revenue was still soft even despite the downward revision of $950,000 during last year’s mid-year review to account for the continuing impact on programs due to the pandemic-induced restrictions. The Parks and Recreation (P&R) Department, in particular, continued to be impacted during the year as many of the normal programs, like aquatics, special classes, events and picnic facility rental fees remained infeasible. Beyond P&R, the service charges also include fees for services from various City departments, including Economic & Community Development, Fire, Police, Public Works, and Library. 10. Use of Money and Property +$236,194 Revenue from Use of Money and Property came in $0.2 million, or 8.4 percent, above the amended FY 2020-21 budget for a total of $3.1 million. This positive result is primarily driven by higher interest rates on investments than were originally projected. The Finance Department conservatively projects interest income. 11. Other Revenues +$558,482 Other Revenue in FY2020-21 was $0.7 million which was $0.6 million above budget. This was solely due to the receipt of $0.6 million from Verizon in relation to a Public-Private- Partnership for the deployment of wireline and wireless infrastructure within the City. B. Expenditure Variance Rationale After taking proactive measures to curb expenditures in the prior year when the COVID-19 pandemic began, the City continued with these into FY2020-21 as it became evident that some revenue streams would remain strained. Austerity measures like hiring freezes and curbing all non- essential spending aided in achieving savings in many departments. 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 Council -$60,305 (-21.2%) City Council expenditures in FY2020-21 were $224,000, which was $60,000, or 21.2 City of South San Francisco Page 6 of 19 percent, below amended budget. Savings were seen in health-related benefits, office supplies and meeting-related expenses. 2. City Attorney +$76,995 (+8.5%) The City Attorney’s office spent $987,000 in FY2020-21 which was $77,000, or 8.5 percent above amended the budget. This overspend was wholly related to a greater request for legal services than originally anticipated. 3. City Manager +$801,530 (+15.6%) The City Manager’s Office spent/encumbered $5.9 million in FY 2020-21 which was $802,000, or 15.6 percent, above amended budget. The unfavorable budget results were primarily due to increased spending on professional and specialized services throughout the fiscal year which included additional expenses for the General Plan update, a Special Tax consulting agreement and a CEQA consulting services agreement. 4. Non-Departmental -$371,101 (-21.4%) Expenditures for the Non-Departmental program (including encumbrances) were $1.3 million which was $371,000, or 21.4 percent, 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 mainly due to lower than budgeted special program expenditures within the disaster response program. 5. Economic & Community Development -$1,191,602 (-12.4%) In FY 2020-21, the Economic & Community Development Department had a favorable budget variance of $1.2 million, or 12.4 percent, with total expenditures (including encumbrances) of $8.4 million. This variance is primarily due to reduced expenditure in professional and specialized services. 6. Fire Department +$1,013,151 (+3.3%) The Fire Department ended FY2020-21 with expenditures (including encumbrances) of $32 million which was $1 million, or 3.3 percent, above amended budget. This was solely due to increased spending on payroll-related expenses, particularly overtime – this was offset partially by lower-than-expected spending in professional and specialized services. 7. Public Works +$116,713 (+2.0%) Public Works Department expenditures for FY 2020-21 (including encumbrances) were $6 million which was $117,000, or 2.0 percent, higher than amended budget. The unfavorable budget results from higher than budgeted personnel costs. III. FY2020-21 SUMMARY RESULTS FOR OTHER FUNDS Separate from the General Fund, the ACFR reports the financial results for the various other funds City of South San Francisco Page 7 of 19 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 this area. FY 2020-21 revenues were $2.2 million, $411,000 above expectations of $1.8 million. On the expenditure side, the Common Greens expenditures were $1.6 million of the $2.2 million budget. FY 2020-21 expenditures were $556,000 less than anticipated. Overall, the fund balance for the Common Greens Fund as of June 30, 2021 was $4,816,000. 2. Capital Improvement Programs The Capital Improvement Program (CIP) Fund accounts for expenditures associated with the acquisition, construction, or improvement of City owned facilit ies and infrastructure. Funding comes from various sources like the General Fund, special revenue funds, grants, and fees. The CIP fund accounts for capital expenses on a pass-through basis. Therefore, unexpended capital budget appropriations are carried over to the subsequent fiscal year until the projects are either finished or closed out. Of the $84.7 million in amended appropriated budget in prior years, $62.5 million was carried over into FY 2021-22. 3. Programs Special Revenue Fund The City Programs Special Revenue Fund accounts for donations and other accounts that is dedicated for particular programs. Due to the restrictions related to all monies received into this fund, this fund is not budgeted. As such, all revenues and expenses are recognized at the end of each fiscal year. The FY 2020-21 net revenues were $4.8 million. 4. Sewer Enterprise Fund The City accounts for all sewer operation transactions in a dedicated enterprise fund. The Sewer Enterprise Fund independently supports all aspects of the City's sewer operations, including capital improvements, collection, conveyance, and the complete secondary treatment of residential and commercial wastewater. Revenues were $53 million (including loan proceeds), falling short of projections by $49 million. Much of the budget variance was timing related. Of the expected $25 million loan from the State Revolving Fund (SRF) in FY 2020-21, the Sewer Enterprise only received a partial $15 million loan, driving much of the variance to budget. However, this is purely a timing issue. SRF loans are received on a reimbursement basis, meaning that the Sewer Enterprise pays for those capital projects first, and received the reimbursement via the SRF loan. As a result, t he remaining $10 million is expected in the current or future fiscal year(s) depending upon the pace of the project completion. Another factor affecting the variance was that services charges were City of South San Francisco Page 8 of 19 lower than projected by $5 million. The COVID-19 pandemic and resulting economic shutdown (worldwide) negatively impacted revenues from service charges, particularly from large industrial users and restaurants. On the expenditure side of the enterprise, expenditures were below expectations as the capital project expenditures related to the SRF loans were delayed. The enterprise spent a total of $52 million (includes $22 million spent on capital projects) out of the $89 million amended budgeted. Any unspent appropriations for capital projects was carried over to the current fiscal year. Overall, the net position for the enterprise as of June 30, 2021 was $105,748,210. 5. Parking District Fund In FY 2020-21, Parking District revenues totaled $771,000, which was $133,000 lower than the adopted budget. Much of the variance stemmed from reduced collections in parking meter fees in the first half of the fiscal year due to the pandemic. Parking permit fees and Miller Avenue Parking Garage was able to meet revenue expectations for the year. On the expenditure side, the Parking District realized actual expenditures of only $1.3 million; this is approximately $200,000 below the budgeted $1.5 million for the year. The variance is mainly due to the underspending of the $813,000 capital project appropriations; only $297,000 was spent in FY 2020-21. As with prior years, any unspent appropriations for capital projects will be carried forward to the following year(s) until completed and/or closed. The net position for the Parking District fund was of June 30, 2021 is $13,610,245. 6. Storm Water Fund In FY 2020-21, Storm Water revenues totaled $7 million, which is $8.6 million below the projected $15.6 million revenues. The majority of the budget variance was related to the timing of a $13.9 million Caltrans funding. The Storm Water Fund only received a partial $5.6 million driving much of the budget shortfall of $8.3 million. It is expected that the remaining Caltrans funding will be realized in the current (FY 2021-22) or subsequent fiscal year. On the expenditure side, the Storm Water Fund was below expectations with a total expenditure (including capital projects expenditures) of $6.6 million out of the budgeted $15.5 million. The variance is mainly due to the fact that only $5.6 million was spent out of the $14.3 million capital projects appropriation in FY 2020-21. Any unspent appropriations for capital projects were carried forward to the current fiscal year. The net position for the Storm Water fund was of June 30, 2021 was $11,479,239. City of South San Francisco Page 9 of 19 7. Self-Insurance Fund The Self Insurance Fund ended FY 2020-21 in the nominally positive territory, as total expenditures were $5.9 million against revenues of $6.5 million. Cost of workers compensation claims were higher compared to the prior year. 8. Measure A Fund Measure A revenues were $1.6 million, $61,000 above the projected budget of $1.5 million in FY 2020-21. On the expenditure side, the Measure A expenditures were $1.9 million, which was $2.3 million below the $4.2 million amended 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, 2021 was $2,524,000. This includes the $2.1 million designation for capital projects. IV. DEVELOPER IMPACT FEES The City has several developer impact and in lieu 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 $14.5 million in revenue during FY 2020-21. The table below is a summary of each fund’s ending balances as of June 30, 2021. Staff presented this information to Council on January 12, 2022 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, 2021 Fees and Charges Service Area Ending Balance Bicycle and Pedestrian Impact Fee Citywide $ 116,813 Childcare Impact Fee Citywide 6,788,327 Commercial Linkage Impact Fee (Affordable Housing) Citywide 10,211,626 Park Construction Fee Citywide 5,344,782 Park Land Acquisition Fee Citywide 1,603,773 Public Safety Impact Fee Citywide 1,499,387 Citywide Transportation Impact Fee Citywide 1,962,343 Oyster Point Interchange Impact Fee Oyster Point 38,709 Park In-Lieu Fee Plan Area 3,850,903 Sewer Impact Fee East of 101 4,144,279 Traffic Impact Fee East of 101 22,527,967 Sewer Capacity Charges Plan Area 7,726,129 Total $ 65,815,038 At the February 8th meeting, the Budget Standing Committee requested a projection of Childcare Impact Fees. The following are preliminary and based upon information available as of December 2021. Actual collections will be contingent upon the pace and completion of the expected development projects in the pipeline. City of South San Francisco Page 10 of 19 Table 3: Childcare Impact Fee Projection* Fiscal Year Amount 2022-23 $ 6,940,028 2023-24 1,549,800 2024-25 3,407,618 2025-26 3,538,336 2026-27 2,426,621 2027-28 1,777,772 2028-29 1,871,697 TOTAL $ 21,511,872 * Assumptions as of December 2021; actuals will vary. V. CURRENT FISCAL YEAR (FY2021-22) UPDATE The FY 2021-22 budget that was approved by Council on June 23, 2021 anticipated that the pandemic would have a sustained negative impact on the City’s revenues for the full fiscal year. The following section will show the revenue and expenditure results as of December 31, 2021. A. General Fund Revenues – 2nd Quarter The following table shows actual revenues as of December 31, 2021 with a comparative view of where the City’s revenues were at the same time last year (December 31, 2020): Table 4: FY 2020-21 vs. FY 2021-22 Revenues as of December 31 Revenue Types FY2020-21 FY2021-22 Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Taxes Property Tax 43,051,499 21,407,880 49.7% 41,074,710 18,960,305 46.2% Sales Tax 18,500,000 6,493,797 35.1% 19,531,177 6,751,685 34.6% Transient Occupancy Tax 5,904,328 2,476,118 41.9% 7,085,194 4,503,390 63.6% Other tax 3,118,206 1,996,897 63.1% 3,614,753 1,276,424 35.3% Franchise Fees 4,600,000 1,064,940 23.2% 4,600,000 1,152,788 25.1% Licenses and Permits 14,995,496 7,403,837 49.4% 16,453,166 6,358,504 38.6% Fines & Forfeitures 789,249 234,236 29.7% 676,975 278,189 41.1% Intergovernmental 3,260,630 1,171,755 35.9% 4,436,411 1,572,853 35.5% Charges for Services Planning 209,562 72,822 34.7% 209,562 117,222 55.9% Fire 2,076,314 1,448,756 69.8% 2,626,314 1,216,279 46.3% Parks & Recreation 1,966,522 370,425 18.8% 2,973,722 849,034 28.6% Police 727,811 418,982 57.6% 938,811 530,612 56.5% City Admin & Other 2,081,448 1,078,537 51.8% 2,546,262 916,637 36.0% Money & Property 3,827,794 1,680,319 43.9% 4,194,976 1,493,658 35.6% Other Revenues 175,341 62,576 35.7% 259,383 555,538 214.2% Transfers In 2,323,872 765,014 32.9% 2,207,080 510,302 23.1% TOTAL REVENUES $107,608,069 $ 48,116,893 44.7% $ 113,428,495 $ 47,043,421 42.0% As shown in the above table, projected revenue for FY 2021-22 is $113.4 million – approximately $5.8 million more than the FY2020-21 budget. Actual revenue collections are lower on a percentage of budget basis than where the City was at the same time last year (42.0% vs. 44.7%). City of South San Francisco Page 11 of 19 The following highlights the recommended revenue adjustments to the FY2021-22 budgets. 1. Property Tax. The real estate market remains strong as homeowners continue to make improvements on their existing homes and new construction are added to the tax roll. Property tax comprises almost 40% of the General Fund’s total revenue. Property tax is allocated to the City in two large installments (December and April). Our records show property tax collections have reached 46% of our projection as of December 31, 2021. The $18.9 million collected does not include the $2.3 million of Excess ERAF that is expected in the first half of FY 2021-22. Staff recommends no change to the projections. 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. Collections during the first half of the year mirrors prior year’s figure in dollar amount and in percentage to budget. The most recent report by the City’s sales tax consultant shows sales tax receipts for the 3rd quarter of 2021 had a modest increase of 2.8% when compared to the same quarter in 2020. With COVID restrictions easing, along with the general inflation in the region, staff is recommending an increase in the sales tax revenue forecast of an additional $0.75 million—increasing projections to $20.28 million. 3. TOT. This revenue stream, most impacted by the pandemic-imposed travel restrictions, continues to demonstrate a slow (but relatively steady) recovery. Collections as of December 31st are almost double the prior year’s amount ($4.5 million vs $2.4 million). However, $4.5 million constitutes only half of what was collected in the first two quarters of FY 2019-20 before the pandemic. Staff recommends increasing the current revenue projection by $1.5 million to $8.5 million for the current fiscal year. 4. Other Tax. Commercial parking tax demonstrates signs of a moderate recovery for the first half of the year. Actual collections are almost double the budget and is three times the collection from the prior year’s first half. Revenues from business license are in line with our expectations. Staff recommends no change to the forecast. 5. Licenses & Permits. Fire permits are in line with our expectations. However, electric, plumbing and mechanical permits have been issued at a slower pace for the first half of the year. While revenue collections are $1.3 million less than prior year, staff recommends no forecast changes in anticipation of a stronger development climate in the second half of the year. 6. Service Charges. Service charges are another revenue category that has been unduly affected by the pandemic. Revenues from P&R services charges experienced an all-time low in the prior fiscal year as programs were shuttered due to COVID restrictions. For the City of South San Francisco Page 12 of 19 first half of FY 2021-22, revenues from facility rentals, day care programs, aquatic programs and various classes are showing signs of gradual recovery. However, current collection is far from reaching the pre-pandemic level in terms of dollars ($850,000 vs. $2 million) and percentage of budget (29% vs 43%). Given the prolonged effects of the pandemic, exacerbated by recent rise of the Omicron variant, staff recommends that revenue expectations be decreased by $1.5 million to $7.8 million. If approved by Council, the above changes would result in increasing the overall revenue budget for FY 2021-22 by $0.75 million to $114.18 million. B. General Fund Expenditures – 2nd Quarter The following table shows the actual expenditures by Department that have been processed through December 31, 2021: Table 5: FY 2020-21 vs. FY 2021-22 Expenditures as of December 31 Expenditures FY2020-21 FY2021-22 Budget Actuals as of 12/31 % of Budget Budget Actuals as of 12/31 % of Budget City Council Payroll 205,970 82,182 40.9% 213,836 62,876 29.4% Supplies & Services 34,819 3,206 9.2% 34,819 15,528 44.6% Interdepartmental Charges 43,772 21,674 49.5% 43,772 21,674 49.5% Total 284,561 107,062 37.6% 292,426 100,078 34.2% City Clerk Payroll 849,578 447,030 52.6% 904,828 379,489 41.9% Supplies & Services 198,503 33,115 16.7% 258,503 31,393 12.1% Interdepartmental Charges 48,513 23,892 49.2% 48,513 23,892 49.2% Total 1,096,594 504,037 46.0% 1,211,844 434,774 35.9% City Treasurer Payroll 60,435 19,334 32.0% 60,156 16,236 27.0% Supplies & Services 82,200 41,697 50.7% 97,200 53,795 55.3% Interdepartmental Charges 2,889 1,445 50.0% 2,889 1,445 50.0% Total 145,524 62,476 42.9% 160,245 71,475 44.6% City Attorney Supplies & Services 893,150 318,849 35.7% 893,150 292,105 32.7% Interdepartmental Charges 16,899 8,400 49.7% 16,899 8,400 49.7% Total 910,049 327,249 36.0% 910,049 300,505 33.0% City Manager - Payroll 2,025,976 1,175,458 58.0% 2,437,586 1,330,951 54.6% Supplies & Services 3,061,886 510,031 16.7% 2,940,283 749,402 25.5% Interdepartmental Charges 44,144 21,465 48.6% 44,144 21,465 48.6% Total 5,132,005 1,706,954 33.3% 5,422,012 2,101,818 38.8% Finance Payroll 2,224,949 1,204,381 54.1% 2,993,438 1,381,975 46.2% Supplies & Services 1,068,058 135,830 12.7% 992,899 100,401 10.1% Interdepartmental Charges 346,545 171,655 49.5% 346,545 171,655 49.5% City of South San Francisco Page 13 of 19 Expenditures FY2020-21 FY2021-22 Budget Actuals as of 12/31 % of Budget Budget Actuals as of 12/31 % of Budget Total 3,639,552 1,511,865 41.5% 4,332,882 1,654,031 38.2% Non-Expense/Dept. Payroll 146,785 39,130 26.7% 6,760 5,873 86.9% Supplies & Services 1,590,638 861,774 54.2% 1,287,492 307,090 23.9% Transfers 500,000 250,000 50.0% 500,000 250,000 50.0% Total 2,237,423 1,150,904 51.4% 1,794,252 562,963 31.4% Human Resources Payroll 1,474,719 788,221 53.4% 1,547,671 844,050 54.5% Supplies & Services 448,320 34,667 7.7% 622,068 98,544 15.8% Interdepartmental Charges 108,465 53,667 49.5% 108,465 53,667 49.5% Total 2,031,503 876,555 43.1% 2,278,204 996,261 43.7% Economic & Comm Development Payroll 4,577,900 2,943,426 64.3% 5,264,926 2,941,084 55.9% Supplies & Services 4,641,331 633,937 13.7% 6,534,753 1,821,038 27.9% Capital Outlay 60,000 - 0.0% 60,000 - 0.0% Interdepartmental Charges 327,516 160,063 48.9% 327,516 160,063 48.9% Total 9,606,747 3,737,426 38.9% 12,187,196 4,922,184 40.4% Fire Payroll 26,567,330 15,854,934 59.7% 25,703,062 16,128,428 62.7% Supplies & Services 2,577,151 547,095 21.2% 2,214,078 685,887 31.0% Interdepartmental Charges 1,865,577 814,544 43.7% 1,797,246 814,544 45.3% Total 31,010,490 17,216,573 55.5% 29,714,386 17,628,859 59.3% Police Payroll 28,575,330 15,682,757 54.9% 28,847,289 16,609,864 57.6% Supplies & Services 1,474,257 564,893 38.3% 1,718,831 546,176 31.8% Interdepartmental Charges 1,970,653 972,255 49.3% 1,970,653 972,255 49.3% Total 32,020,240 17,219,905 53.8% 32,536,774 18,128,296 55.7% Public Works Payroll 2,825,654 1,626,023 57.5% 3,353,119 1,739,058 51.9% Supplies & Services 1,971,065 637,900 32.4% 1,827,878 508,931 27.8% Interdepartmental Charges 1,059,984 526,742 49.7% 1,059,987 526,742 49.7% Total 5,856,703 2,790,665 47.6% 6,240,981 2,774,732 44.5% Library Payroll 4,750,472 2,603,852 54.8% 5,148,174 2,492,631 48.4% Supplies & Services 857,109 339,343 39.6% 816,734 478,180 58.5% Interdepartmental Charges 638,314 305,471 47.9% 638,314 305,471 47.9% Total 6,245,744 3,248,565 52.0% 6,603,222 3,276,282 49.6% Parks and Recreation - - Payroll 11,735,452 6,647,583 56.6% 12,980,119 6,972,204 53.7% Supplies & Services 3,306,407 1,101,632 33.3% 3,391,843 1,458,097 43.0% Interdepartmental Charges 982,306 488,598 49.7% 982,306 488,598 49.7% Total 16,024,164 8,237,812 51.4% 17,354,268 8,918,899 51.4% CIP Transfers 7,429,073 830,759 11.2% 3,896,254 61,627 1.6% Total 7,429,073 830,759 11.2% 3,893,254 61,627 1.6% City of South San Francisco Page 14 of 19 Expenditures FY2020-21 FY2021-22 Budget Actuals as of 12/31 % of Budget Budget Actuals as of 12/31 % of Budget Total General Fund Expenditures 123,770,523 59,528,807 48.1% 124,934,996 61,932,783 49.6% Information Technology* - Payroll 1,631,965 866,105 53.1% 1,675,719 865,265 51.6% Supplies & Services 2,573,355 680,945 26.5% 2,532,189 638,991 25.2% Interdepartmental Charges 10,469 5,234 50.0% 10,469 5,235 50.0% Total 4,215,789 1,552,284 36.8% 4,218,377 1,509,491 35.8% * Non-General Fund; budgeted as internal service fund in Fund 785. The expenditures outpacing revenues are fairly typical for the City this time of year. In the first half of the fiscal year, actual expenditures were greater than revenues by $14.9 million (revenues of $47.0 million less expenditures of $61.9 million). 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 $13.5 million. The City’s total UAL payment across all funds for the current fiscal year was $15.625 million. C. ADDITIONAL GENERAL FUND APPROPRIATIONS REQUEST The following are additional General Fund expenditure appropriations request totaling $332,000. 1. Non-Departmental $25,000 Earlier this fiscal year, the City entered into a Memorandum of Understanding (MOU) with San Mateo County to fund a Mental Health Clinician who would assist the Police Department with mental-health related calls by providing appropriate, compassionate care involving non-violent individuals. Additional appropriation is necessary to fund the City’s financial obligation under the MOU for the remainder of the current fiscal year. While accounted for as non-departmental for the current fiscal year, the budget for the Mental Health Clinician under the MOU will be included in the budget for the Police Department for future years. 2. Public Works $55,000 Additional appropriations are being requested to fund part-time staff for graffiti remediation along with right of way maintenance for the remainder of the fiscal year. 3. Parks and Recreation Department Concert in the Park $150,000 An enhanced “Concert in the Park” at Orange Memorial Park will require the above additional appropriations. While some of the funding may be offset through future City of South San Francisco Page 15 of 19 fundraising, the appropriations are necessary to secure the contracts for performers and vendor tents, for example, along with other costs associated with executing an event of this scale. Irrigation Designer for Centennial Dr. → Chestnut Ave. Line $30,000 Additional funds are sought to cover costs to hire an irrigation designer to understand the costs related to upsizing the main irrigation line to get it across from Centennial Dr. to Chestnut Ave. This would be seed funding for the study and future additional funding necessary would be included as part of the FY 2022-23 CIP. 4. CIP (Parks and Recreation) $72,000 Additional funding will be used for the necessary breezeway improvements next to Starbucks on Grand Ave. In addition to the above, given the continuing economic recovery, all frozen positions citywide are being unfrozen. As vacancies take time to recruit, additional appropriations are not being requested at this time. Departments, with the aid of the Human Resources Department, will recruit for those vacancies, but the commensurate budget necessary will be absorbed via current appropriations. Any necessary additional appropriations will be accounted for with the FY 2022-23 Budget process. D. ADDITIONAL NON-GENERAL FUND APPROPRIATIONS REQUEST The following are the additional non-General Fund expenditure appropriations requests totaling $1.52 million from Infrastructure Reserves: 1. Employee Down Payment Assistance Program $650,000 Funding Source: Infrastructure Reserves An additional $650,000 is being requested from Infrastructure Reserve to further fund City’s Down Payment Assistance Program. Council had approved an appropriation of $1 million for this effort in prior years. The additional appropriation would allow an expansion of the number of employees who would be able to receive down payment assistance in the future. 2. Employee Rental Assistance Program $50,000 Funding Source: Infrastructure Reserves Seed funding of $50,000 is requested to establish a pilot employee rental assistance program. The program would make funding available to assist employee households that are unable to make the initial security deposit required to secure rental housing within the local area. 3. Parks and Recreation Vehicle Replacement $820,000 Funding Source: Infrastructure Reserves The above funding is being requested in order to purchase of 5 new vehicles, 6 replacement vehicles, plus a trencher and mower to support the department’s efforts. City of South San Francisco Page 16 of 19 E. AMERICAN RESCUE PLAN ACT (ARPA) In June 2021, the City received $6.14 million (50 percent) of its $12.3 million American Rescue Plan Act (ARPA) financial award. The remaining half will be received around June 2022. The following table shows the planned allocation of these funds to various projects: Table 6: ARPA Funded Project Summary Description Total Project Cost Tranche 1 (2021) Tranche 2 (2022) Amount Appropriated Economic Advancement Center $ 2,000,000 $ 1,000,000 $1,000,000 $1,000,000 Guaranteed Income Program 1,000,000 1,000,000 - 1,000,000 Food Voucher Program 100,000 100,000 - 100,000 Spit Sea Level Rise 30,000,000 1,000,000 3,000,000 1,000,000 City Operations – COVID Recovery 3,400,000 1,560,000 370,000 - Youth Summer Internship Program 300,000 100,000 200,000 - City Broadband Expansion TBD 1,000,000 1,000,000 1,000,000 Community Navigator Program 500,000 - - - Community Promotores Program 70,000 - 70,000 - Francisco Terrace Flood Prevention 620,000 120,000 500,000 120,000 Restaurant Grants 260,000 260,000 - - TOTAL -- $6,140,000 $6,140,000 $4,220,000 The table above shows that, to date, $4.22 million has been appropriated directly from ARPA funds. The above cells highlighted in green are the current appropriations request – either as a “clean-up” appropriation or due to current program needs. The details are as follows: 1. Economic Advancement Center (Tranche 2) $1,000,000 The establishment of the Economic Advancement Center is currently actively underway. Staff is requesting that Council recognize the Tranche 2 of ARPA ($6.14 million in revenues) that are expected to be received before the end of the current fiscal year and appropriate the additional $1,000,000 earmarked for the Economic Advancement Center. 2. City Operations – COVID Recovery (Tranche 1) $1,560,000 An allowable use for ARPA is to support the operational costs related to COVID. When Council adopted the FY 2021-22 Adopted Budget, a portion of the General Fund budget was to be balanced through the transfer of ARPA funding. Council is being asked to appropriate the $1.56 million to reimburse the City’s General Fund for COVID-related costs such as public safety and public health efforts that have already been undertaken by various City departments. 3. Youth Summer Internship Program (Tranche 1 & 2) $300,000 The City’s Youth Summer Internship Program was approved in concept by City Council in October 2020 with General Fund funds appropriated at that time. An update to Council was provided in March 2021 whereupon, given the direct negative impacts of COVID -19 on South San Francisco’s youth population and job opportunities for them, ARPA funds were identified as a suitable source of funding. The program ran for seven weeks in Summer 2021, providing fifteen South San Francisco youth with valuable paid short-term intern positions in City departments. The $100,000 appropriation is a “clean-up” item to City of South San Francisco Page 17 of 19 reimburse the General Fund for the Summer 2021 program. The $200,000 appropriation is necessary in order to begin establishing the program for Summer 2022 and beyond. 4. Community Promotores Program (Tranche 2) $70,000 The COVID-19 pandemic highlighted the critical role that governments have in providing health and human services to its residents. However, the fact remains that in the more vulnerable communities, linguistic and/or cultural barriers often inhibit access to these critical services and/or civic engagement. Appropriations are being requested to kick start the Community Promotores Program, which aims to have a focused outreach to the underserved communities within South San Francisco to assist in connecting those residents with critical health and social services resources. 5. Restaurant Grants – SAMCEDA (Tranche 1) $260,000 The City moved quickly to provide aide to South San Francisco businesses negatively impacted by the COVID-19 pandemic through the “San Mateo County Strong” initiative coordinated by the San Mateo County Economic Development Association (SAMCEDA). Prior to receipt of the ARPA funds, twenty-six qualifying businesses were awarded $10,000 grants to assist with operational and other costs incurred as a result of COVID-19 impacts with funds coming from already appropriated General Fund budget. This is a “clean-up” appropriation to reimburse the General Fund following the receipt of ARPA funding. VI. RESERVES OVERVIEW & CONSIDERATIONS In FY 2020-21, General Fund revenues, excluding Measure W, were $110.1 million. In keeping with the City’s Reserve Policy of maintaining 20 percent of operating revenues which follows the Government Finance Officers Association’s (GFOA) best practice, the City’s General Fund reserves levels were reduced by approximately $2.2 million, from $24.1 million to $21.9 million. After meeting the reserves requirement noted above, Table 7 below shows a summary of the City’s current official Reserve Levels: Table 7: Current City Reserves Summary General Reserves $ 21,900,000 Pension Stabilization Reserves + Infrastructure Reserves $ 5,546,000 $ 13,700,000 Total Reserve Levels $ 41,146,000 The Infrastructure Reserve figure in Table 7 above is net of $5.5 million for the purchase of the land at 71 Camaritas Circle for the new Fire station and $4 million appropriated for the FY2021- 22 Capital Improvement Plan, but does not include the current $1.52 million additional City of South San Francisco Page 18 of 19 appropriations request as detailed in Section V.D. Other standalone appropriation requests to Council that may be in process are also not included in these reserve figures. In addition to the above, the City also has available an additional $15 million of unappropriated General Fund balance. These are funds available that have built up from General Fund surpluses in prior years, a release of General Reserves due to the lower operating budget as a result of COVID, along with active fund clean-up conducted by the Finance Department to ensure all General Fund reimbursements are accounted properly. When considering use of the General Fund unassigned fund balance, it is important to bear in mind that adoption of the mid-year appropriation requests in Section V.C. of this report will use up part of this “surplus” as will any potential deficit (revenues less expenditures) that may be experienced by the General Fund during the current year, so sufficient room should remain to absorb these movements. The unassigned fund balance also acts as a buffer allowing for the natural ebb and flow within the General Fund that occurs during the year as a result of the mismatch between when revenues are received and expenditures are incurred. Please see Table 8 which shows the unassigned fund balance including the General Fund mid-year appropriations requests herein: Table 8: FY 2020-21 General Fund Surplus Summary FY2020-21 General Fund Surplus $ 15,000,000 Adjustments - Budgeted Shortfall for FY2021-22 ($ 2,800,000) + Add’l Proj. Revenue Adjustments $ 750,000 - Mid-Year Appropriations Request ($ 332,000) Total Adjustments ($ 2,382,000) General Fund Surplus less Adjustments equals: Net GF Unappropriated Surplus $ 12,618,000 It is recommended that $8.5 million of the $12.6 million in General Fund surplus be transferred to the Infrastructure Reserve Fund, with the remaining $4.1 million to serve as a buffer for any cashflow deficits in the future fiscal year(s) as the City faces rising payroll and other costs. 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.” The increase in CPI for the Bay Area for calendar year 2021 was 4.3%; nationally, it was 7.0%. Given those facts, the City will need to bolster its liquidity position in order to absorb rising levels of inflation. Combined with rising costs anticipated across all categories – payroll, benefits, services, and materials – staff cautions the against rapid depletion of fund balance in order to maintain the current service levels. 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 City of South San Francisco Page 19 of 19 a financial best practice, one-time revenues should be used for one-time expenditures. Possible future one-time needs include: Table 9: Unfunded Capital Projects Description Estimated Cost* 1 Oyster Point Sea Level Rise Protection $30M 2 Colma Creek/Oak Ave Bridge Replacement $7M 3 Building Repairs/Upgrades $3M 4 Replace Fire Station 63 (MSB) $25M 5 New Finance Computer System $5M 6 Grand Avenue Improvements $4M 7 Grand Boulevard Initiative Mediates $3M 8 Park Renovation / Expansion $7.5M 9 Oak Avenue Extension $15M 10 Annex Reconstruction $30M * Very preliminary and expected to change when requirements are better understood. Additionally, medium-sized maintenance obligations related to city buildings, parks and other public spaces continue to require funding. The City’s CalPERS (California Public Employees’ Retirement System) obligations are another category where available surplus could be spent. CONCLUSION The results of the FY2020-21 ACFR reflects the robust development and strength of the larger Bay Area economy. While from a cashflow perspective the City did have a nominal deficit, the high fund balance, attained by the City’s early actions at the beginning of the pandemic to be fiscally conservative, allowed the City to operate while maintaining and even enhancing services for the residents. Limiting non-essential spending, enacting hiring freezes, and eliminating non- mission critical encumbrances allowed the City’s to maintain its solid financial standing. An analysis of the actuals for the first half of the current fiscal year shows that the City is currently on pace to meet budget targets. The question remains for Council in terms of which community needs and projects will be addressed with the funds available in the General Fund and Infrastructure Reserves as discussed herein. The pandemic continues to affect the City. The travel industry still remains shackled by slower than expected recovery in business travel, affecting TOT, and service charges are still low, reflective of the sustained negative impacts of COVID on City programs. However, the negative effects of the pandemic are tempered by the City’s diverse revenue streams, combined with prudent policy decisions, all of which is reflected in the City’s enviable AAA-rating from S&P. Staff recommends that the City Council approve the resolution accepting the ACFR and financial results for the first half of FY2021-22 and appropriating additional funds as described herein. Favorable/ (Unfavorable)% Variance Property Taxes 42,847,441$ 43,051,498$ 44,239,406$ 1,187,908$ 2.8% Sales Tax 19,859,057 18,500,000 19,370,155 870,155 4.7% Transient Occupancy Tax 13,829,025 5,904,328 6,710,270 805,942 13.7% Other Taxes 4,515,376 3,118,206 4,529,764 1,411,558 45.3% Franchise Fees 4,594,577 4,600,000 4,498,202 (101,798) ‐2.2% Building and Fire Permits 15,900,501 14,995,496 15,589,001 593,505 4.0% Fines and Forfeitures 814,355 789,249 535,750 (253,499) ‐32.1% Intergovernmental 1,626,529 3,260,630 4,323,148 1,062,519 32.6% Charges for Services 9,978,676 7,061,656 6,516,155 (545,501) ‐7.7% Use of Money & Property 4,845,965 2,827,794 3,063,988 236,194 8.4% Other Revenues 390,686 175,341 733,823 558,482 318.5% Total Revenues 119,202,189$ 104,284,197$ 110,109,662$ 5,825,464$ 5.6% Add Prior Year Committed reserves ‐ 8,464,745 ‐ ‐ Total Available Resources 119,202,189$ 112,748,942$ 110,109,662$ 5,825,464$ (Favorable)/ Unfavorable % Variance City Council 258,413$ 284,561$ 224,256$ ‐$ (60,305)$ ‐21.2% City Clerk 978,451$ 1,096,594$ 956,697$ 60,000 (79,897)$ ‐7.3% City Treasurer 151,725$ 145,524$ 38,706$ ‐ (106,818)$ ‐73.4% City Attorney 1,009,371$ 910,049$ 987,045$ ‐ 76,995$ 8.5% City Manager 4,139,610$ 5,132,005$ 3,725,990$ 2,207,546 801,531$ 15.6% Finance 3,222,657$ 3,639,552$ 2,917,391$ 525,102 (197,059)$ ‐5.4% Non‐Departmental 1,014,839$ 1,737,423$ 1,336,200$ 30,122 (371,101)$ ‐21.4% Human Resources 1,672,700$ 2,031,503$ 1,654,368$ 235,607 (141,528)$ ‐7.0% Economic & Community Development 7,669,328$ 9,606,747$ 6,560,599$ 1,854,545 (1,191,602)$ ‐12.4% Fire 28,138,052$ 31,010,490$ 31,817,321$ 206,321 1,013,152$ 3.3% Police 30,190,064$ 32,020,240$ 30,959,959$ 25,000 (1,035,281)$ ‐3.2% Public Works 6,156,204$ 5,856,703$ 5,731,644$ 241,772 116,712$ 2.0% Library 5,940,870$ 6,245,894$ 5,903,883$ ‐ (342,011)$ ‐5.5% Parks & Recreation 17,130,307$ 16,024,164$ 15,795,639$ 182,490 (46,036)$ ‐0.3% Total Expenditures 107,672,592$ 115,741,450$ 108,609,697$ 5,568,505$ (1,563,248)$ ‐1.4% Net Operating Surplus/ (Deficit)11,529,597$ (2,992,508)$ 1,499,964$ Other Financing Sources / (Uses) Transfers in 1,302,436$ 2,323,872$ 2,272,022$ ‐$ (51,849)$ ‐2.2% Transfers out 2,951,629 8,029,073 3,884,196 ‐ (4,144,877) ‐51.6% Other Accounting Adjustments 276,939 1,000,000 (2,197,225) Total Other Financing Sources/ (Uses)(1,372,254)$ (4,705,201)$ (3,809,399)$ ‐$ 4,093,027$ 49.4% Net Change in Fund Balance 10,157,342$ (7,697,710)$ (2,309,435)$ Opening GF Fund Balance 70,062,783$ Closing GF Fund Balance 67,753,348$ Variance from 2020‐21 Amended Expenditures Actual 2019‐20 Amended 2020‐21 Actual 2020‐21 Carryover Purchase Orders Variance from 2020‐21 Amended Revenues Actual 2019‐20 Amended 2020‐21 Actual 2020‐21 ATTACHMENT 2 FY2020‐21 YEAR END SUMMARY GENERAL FUND OPERATING SUMMARY FY 2020-21 Financial Results Presentation to City Council JANET SALISBURY, Director of Finance 23 FEBRUARY 2022 AGENDA 1 FY 20-21 Financial Highlights 2 FY 20-21 Financial Results 3 FY 21-22 Financial Update (2nd Quarter) 4 Reserve & Other Considerations 5 Q&A 22 Citywide Financial Highlights for FY2020-21 1FY20-21 Financial Highlights ▪Revenues* (excluding transfers) = $110.1 million ▪Expenditures (excluding transfers) = $108.6 million ▪General Fund* Operating Deficit = -$2.3 million ➢Revenues = $110.1 million ➢Expenditures = $108.6 million ➢Transfers = -$3.8 million ▪Operating Deficit was Anticipated and Lower than Budgeted ➢Projected Deficit at FY 2020-21 Budget Adoption = -$3.4 million * Excludes Measure W Sales Tax 3 General Fund Revenues Revenue Comparison (FY19-20 Results, FY20-21 Budget, FY20-21 Actuals) 44.2 19.5 6.7 4.5 4.5 15.6 0.5 4.3 6.5 2.2 0.7 0 5 10 15 20 25 30 35 40 45 50 $ millionFY2019-20 Results FY2020-21 Budget FY2020-21 Actuals 4 2FY 20-21 Financial Results TOTAL FY2020-21 Revenues (excluding transfers): $110.1M General Fund Expenditures Expenditure Comparison (FY19-20 Results, FY20-21 Budget, FY20-21 Actuals) 0.2 1.0 0.0 1.0 5.3 3.4 1.1 1.8 8.4 32.0 31.0 6.0 5.9 16.0 0 5 10 15 20 25 30 35 $ millionFY2019-20 Results FY2020-21 Budget FY2020-21 Actuals 5 2FY 20-21 Financial Results TOTAL FY2020-21 Expenditures (excluding transfers): $108.6M Other Funds 6 2FY 20-21 Financial Results ▪Almost 60 Funds outside of General Fund ▪Notable Funds ➢Measure W = $13.4 million ➢CIP = $62.5 million forwarded to FY 21-22 ➢Enterprise Funds –Sewer, Parking, Stormwater ▪Total Impact Fee Fund Balance as of June 30, 2021 = $65.8 Million Fees and Charges Service Area Ending Balance Childcare Impact Fee Citywide 6,788,327 Commercial Linkage Impact Fee (Affordable Housing) Citywide 10,211,626 Park Construction / Acquisition Fee Citywide 6,948,555 Public Safety Impact Fee Citywide 1,499,387 Citywide Transportation Impact Fee Citywide 1,962,343 Park In-Lieu Fee Plan Area 3,850,903 Sewer Impact Fee East of 101 4,144,279 Traffic Impact Fee East of 101 22,527,967 Sewer Capacity Charges Plan Area 7,726,129 FY 2021-22 General Fund Budget -Revenues ▪FY2021-22 Budgeted Revenues = $113.4 million ▪Total Receipts through December 31 = $47.0 million (41.5%) 7 REVENUES FY 2020-21 FY2021-22 (in millions)Budget Actuals as of 12/31 %age of Budget Budget Actuals as of 12/31 %age of Budget Property Tax $43.1 $21.4 49.7%$41.1 $19.0 46.2% Sales Tax $18.5 $6.5 35.1%$19.5 $6.8 34.6% TOT $5.9 $2.5 41.9%$7.1 $4.5 63.6% Licenses & Permits $15.0 $7.4 49.4%$16.5 $6.4 38.6% Intergovernmental $3.3 $1.2 35.9%$4.4 $1.6 35.5% Service Charges $7.1 $3.4 48.0%$9.3 $3.6 39.1% All Other Revenues $12.4 $4.9 39.5%$13.3 $4.6 34.6% Transfers In $2.3 $0.8 32.9%$2.2 $0.5 22.7% TOTAL $107.6 $48.1 44.7%$113.4 $47.0 41.5% 3FY 21-22 Financial Update $0.8M →$20.3M $1.5M →$7.8M Recommended Projection Adjustments $1.5M →$8.5M $0.8M →114.2M FY 2021-22 General Fund Expenditure Budget ➢Non-Departmental –Mental Health Clinician $ 25,000 ➢Public Works –P-T Staff Graffiti Remediation $ 55,000 ➢Parks & Rec –Concert in the Park $ 150,000 –Irrigation Designer $ 30,000 ➢CIP (Parks & Rec) –Breezeway Improvements $ 72,000 8 ▪FY2021-22 Budgeted Expenditures = $124.9 million ▪Total Expenses through December 31 = $61.9 million (49.6%) Additional Appropriations Request: Total Request $332,000 3FY 21-22 Financial Update Non-General Fund Budget Adjustments ▪Employee Down Payment Assistance Program $650,000 ▪Employee Rental Assistance Program $50,000 ▪Parks and Recreation Vehicle Replacement $820,000 Total Non-GF Expenditure Budget Adjustments $1,520,000 (From Infrastructure Reserves) 3FY 21-22 Financial Update 9 American Rescue Plan Act (ARPA) 3FY 21-22 Financial Update 1 0 ▪Tranche 1 (June 2021) = $6.14 million ▪Tranche 2 (expected June 2022) = $6.14 million Description Total Project Cost Tranche 1 (2021) Tranche 2 (2022) Amount Appropriated Economic Advancement Center $ 2,000,000 $ 1,000,000 $1,000,000 $1,000,000 Guaranteed Income Program 1,000,000 1,000,000 - 1,000,000 Food Voucher Program 100,000 100,000 - 100,000 Spit Sea Level Rise 30,000,000 1,000,000 3,000,000 1,000,000 City Operations – COVID Recovery 3,400,000 1,560,000 370,000 - Youth Summer Internship Program 300,000 100,000 200,000 - City Broadband Expansion TBD 1,000,000 1,000,000 1,000,000 Community Navigator Program 500,000 - - - Community Promotores Program 70,000 - 70,000 - Francisco Terrace Flood Prevention 620,000 120,000 500,000 120,000 Restaurant Grants 260,000 260,000 - - TOTAL -- $6,140,000 $6,140,000 $4,220,000 American Rescue Plan Act (ARPA) ▪Economic Advancement Center (Tranche 2)$ 1,000,000 ▪City Operations –COVID Recovery (Tranche 1)$ 1,560,000 ▪Youth Summer Internship Program (Tranche 1 & 2)$ 300,000 ▪Community Promotores Program (Tranche 2)$ 70,000 ▪Restaurant Grants –SAMCEDA (Tranche 1)$ 260,000 Total ARPA Appropriations $ 3,190,000 3FY 21-22 Financial Update 11 FY2020-21 GF Surplus & Reserves 4Reserve & Other Considerations City Reserves ▪General Reserves $ 21,900,000 ▪Pension Reserves 5,546,000 ▪Infrastructure Reserves 13,700,000 TOTAL Reserve Levels $ 41,146,000 FY20-21 General Fund Surplus Combined: $53,764,000 12 FY2020-21 General Fund Surplus $15,000,000 Adjustments -Budgeted Shortfall for FY2021-22 ($2,800,000) +Add’l Proj.Revenue Adjustments $750,000 -Mid-Year Appropriations Request ($332,000) Total Adjustments ($2,382,000) General Fund Surplus less Adjustments equals: Net GF Unappropriated Surplus $12,618,000 Unfunded Capital Projects & Reserve Considerations 4Reserve & Other Considerations 13 Description Estimated Cost* 1 Oyster Point Sea Level Rise Protection $30M 2 Colma Creek/Oak Ave Bridge Replacement $7M 3 Building Repairs/Upgrades $3M 4 Replace Fire Station 63 (MSB)$25M 5 New Finance Computer System $5M 6 Grand Avenue Improvements $4M 7 Grand Boulevard Initiative Mediates $3M 8 Park Renovation / Expansion $7.5M 9 Oak Avenue Extension $15M 10 Annex Reconstruction $30M *Very preliminary and expected to change when requirements are better understood. City Reserves ▪General Reserves $ 21,900,000 ▪Pension Reserves 5,546,000 ▪Infrastructure Reserves 13,700,000 ▪Future Capital Needs 12,618,000 TOTAL $ 53,764,000 QUESTIONS? 5Q&A 14 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-118 Agenda Date:2/23/2022 Version:1 Item #:13a. Resolution approving the Annual Comprehensive Financial Report for fiscal year ended June 30,2021,mid- year update for fiscal year ending June 30, 2022, and additional appropriation considerations. 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 an Annual Comprehensive Financial Report (ACFR), 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, 2021; 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 23,2021,a resolution adopting the Fiscal Year (“FY”)2021-22 budget was approved by the City Council; and WHERAS, preliminary (unaudited) financial results for the first half of FY 2021-22 are available; and WHEREAS,additional appropriations are necessary to fund certain projects and/or programs for FY2021-22; 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, 2021; and WHEREAS,on February 8,2022,the information related to the above was 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 ACFR. BE IT FURTHER RESOLVED that the City Council approves the revenue adjustments to the FY2021-22 budget based upon the preliminary unaudited financial data available through December 31, 2021. City of South San Francisco Printed on 2/25/2022Page 1 of 2 powered by Legistar™ File #:22-118 Agenda Date:2/23/2022 Version:1 Item #:13a. BE IT FURTHER RESOLVED that the City Council approves the additional expenditure requests for FY2021-22 described in the report associated with this resolution and approves the appropriation of additional funds, thereby amending the FY2022-22 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 informational 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, if necessary. ***** City of South San Francisco Printed on 2/25/2022Page 2 of 2 powered by Legistar™ ANNUAL COMPREHENSIVE FINANCIAL REPORT CITY OF SOUTH SAN FRANCISCO CALIFORNIA YEAR ENDED JUNE 30, 2021 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2021 Prepared by: Department of Finance This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents Page i 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 .................................................................................................................. 29 Statement of Activities ...................................................................................................................... 30 Fund Financial Statements: Major Governmental Funds: Balance Sheet ................................................................................................................................ 36 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 38 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 40 Reconciliation of the Net Change in Fund Balances Total Governmental Funds with the Statement of Activities ........................................................................................................ 42 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Budgetary Basis: General Fund ....................................................................................................................... 43 Low and Moderate Income Housing Assets ....................................................................... 44 Major Proprietary Funds: Statement of Net Position .............................................................................................................. 46 Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47 Statement of Cash Flows ............................................................................................................... 48 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents Page ii FINANCIAL SECTION (Continued) Fiduciary Funds: Statement of Fiduciary Net Position ............................................................................................. 50 Statement of Changes in Fiduciary Net Position .......................................................................... 51 Notes to Basic Financial Statements ...................................................................................................... 53 Required Supplementary Information: Schedule of Changes in Net Pension Liability and Related Ratios- Miscellaneous Plan ............................................................................................................ 100 Schedule of Contributions – Miscellaneous Plan ........................................................................ 101 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 102 Schedule of Contributions – Safety Plan ..................................................................................... 103 Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 104 Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 105 Notes to Schedule of Employer Contributions ............................................................................ 105 Supplementary Information: General Fund: Combining Balance Sheets ............................................................................................................. 110 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 111 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 112 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) ................ 116 Traffic Impact Fees Capital Projects Fund (Non GAAP Legal Basis) .................................. 117 Child Care Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............................ 118 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents Page iii FINANCIAL SECTION (Continued) Developer Deposit Capital Projects Fund (Non GAAP Legal Basis) .................................... 119 Capital Infrastructure Reserve Fund (Non GAAP Legal Basis) ............................................ 120 Capital Improvements Police Stations Capital Projects Fund (Non GAAP Legal Basis) ..... 121 Capital Improvements Civic Campus Capital Projects Fund (Non GAAP Legal Basis) ...... 122 Non-major Governmental Funds: Combining Balance Sheet ............................................................................................................... 126 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ..................................................................................................................... 132 Budgeted Non-major Government Funds: Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ................................................................................... 138 Internal Service Funds: Combining Statement of Net Position ............................................................................................ 146 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 147 Combining Statement of Cash Flows ............................................................................................. 148 STATISTICAL SECTION Net Position by Component – Last Ten Fiscal Years .................................................................... 151 Changes in Net Position – Last Ten Fiscal Years .......................................................................... 152 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 156 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 158 Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 160 Direct and Overlapping Governments – Property Tax Rates Last Ten Fiscal Years ................................................................................................................ 161 Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 163 Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 164 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Annual Comprehensive Financial Report For the Year Ended June 30, 2021 Table of Contents Page iv STATISTICAL SECTION (Continued) Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 165 Computation of Direct and Overlapping Debt ............................................................................... 166 Computation of Legal Bonded Debt Margin ................................................................................. 167 Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 168 Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Six Fiscal Years ................ 169 Redevelopment Pledged Revenue Coverage – Last Eight Fiscal Years ........................................ 170 Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 171 Principal Employers – Current Year and Nine Years Ago ............................................................ 172 Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 173 Operating Indicators by Function/Program – Last Seven Fiscal Years ......................................... 174 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 175 Miscellaneous Information – Last Three Fiscal Years .................................................................. 176 January 4, 2022 Honorable Mayor and Members of the City Council City of South San Francisco South San Francisco, California The Annual Comprehensive Financial Report (ACFR) of the City of South San Francisco (the City) for the fiscal year ended June 30, 2021, is hereby submitted. Responsibility for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. This report includes all financial activities of the City of South San Francisco, including financial information for the City, as the primary government, and for its component unit, for which the City is considered financially accountable. The South San Francisco Conference Center is the component unit and is included because of the significance of its governing, operational, and/or financial relationships with the City. The Successor Agency that was created due to the Redevelopment Agency dissolution is also included in this report. Management’s Discussion & Analysis (MD&A) provides a narrative introduction overview and analysis to accompany the Basic Financial Statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A is found immediately following the report of the independent auditor in the financial section. CITY COUNCIL 2021 MARK NAGALES, MAYOR BUENAFLOR NICOLAS, VICE MAYOR MARK ADDIEGO, (AT LARGE), MEMBER JAMES COLEMAN (DISTRICT 4), MEMBER EDDIE FLORES, (AT LARGE), MEMBER MIKE FUTRELL, CITY MANAGER v BACKGROUND OF THE CITY The City of South San Francisco encompasses approximately 9.5 square miles and has a population of 67,408. The City employs approximately 500 full-time regular employees and is a full-service city which includes public safety (police, fire and paramedics), libraries, parks, cultural and recreational activities, senior citizen services, public works, public improvements, engineering, planning, building regulation, economic development, drainage, street lighting, and general administrative services. Sewer service, downtown parking operations, and storm water management are accounted for in the City’s enterprise funds. The Conference Center Authority is included in the financial statements by discrete presentation – that is, the Authority’s financial data is reported in a column separate from the financial data of the City. Water and solid waste services are provided by private entities. South San Francisco was incorporated and became a general law city of the State of California on September 19, 1908. The form of government is the Council- Manager plan. Each Councilmember serves a term of four years, with a rotating Mayor chosen by majority vote of the Council, for a term of one year. The City Manager is the administrative head of the government of the City, under the direction of the City Council. On July 11, 2018, the City Council adopted Ordinance No. 1558-2018 to change from at-large to district elections, establishing boundaries and sequencing of elections within the districts. The Councilmembers in office will continue to represent the City at-large until the expiration of their full term to which they were elected and until their successor is qualified. Under this new structure, three district Council seats are up for election in 2022. On November 3, 2020, residents of the City of South San Francisco elected Mark Nagales as councilmember for District 2 and James Coleman as councilmember for District 4. Both councilmembers will serve a term of four years. The remaining three at-large City Council seats are up for election in 2022. The offices of City Clerk and City Treasurer are elected and will remain at-large. The City Attorney is appointed by the City Council. All department heads are appointed and serve under the administrative direction of the City Manager. All other officers and employees of the City are appointed by department heads. vi FINANCIAL INFORMATION In developing and appraising the City’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable but not absolute assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets; and (3) transactions being properly executed in accordance with management’s authorization. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. Basic characteristics of sound internal accounting control include segregation of accounting duties, approvals of accounting transactions, and regular reconciliation of detail and control records. All internal control evaluations occur within this framework. We believe that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurances of proper recording of financial transactions. The City adopts fiscal year budgets for its general, special revenue, debt service, enterprise, and capital project funds. The government also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. However, encumbrances generally are re-appropriated as a part of the following year’s budget. In November 2015, voters in the City passed Measure W, which increased the sales tax rate within the City by 0.50%. The tax is deposited into the City's General Fund and will be used to pay for City services. This tax revenue is partially used to pay the debt on bonds or other financings to accelerate projects. In February 2020, the City issued $43.9 million of lease revenue bonds to finance the design and construction of a new Police facility which is due to be fully operational in early January 2022. Furthermore, in June 2021, the City issued $86.4 million in lease revenue bonds for the construction of a new Civic Center Campus, installation of a solar roof at the City’s Corporation Yard and funding of the City’s Road Rehabilitation program. The Civic Center Campus will include a new building to house a community library, the City’s department of Parks and Recreation, the City Council chambers, and an approximately 1.3 acre community park. vii In February 2020, S&P Global Ratings assigned an issuer credit rating of triple A (“AAA”) to the City. AAA is the highest rating possible and is important as higher ratings generally results in lower borrowing costs and the City was able to benefit from this in its FY 2020-21 bond issuance. The AAA rating is a good indicator of the City's strong financial position, solid executive management, fiscally sound policies and practices, and responsible budgetary performance. The City’s Reserve Policy is aligned with the Government Finance Officers Association (GFOA) best practices recommendation for reserves, setting aside 15- 20 percent of operating revenues. OTHER INFORMATION Independent Audit The City engaged an independent accounting firm to audit the books of accounts, financial records, transactions, and financial statements. Their report covering Fiscal Year 2020-21 is in the Financial Section of this report. Award The City’s ACFR for the fiscal year ended June 30, 2020, received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. The award signified the report’s attainment of easily readable and efficiently organized content and satisfaction of generally accepted accounting principles and legal requirements. The award is valid for a period of one year only. However, the City believes that this current report continues to conform to program eligibility requirements. Acknowledgments The preparation of the ACFR was made possible by the dedicated services of the entire staff of the Finance Department and our auditors. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. Respectfully submitted, ____________________________ __________________________ Janet Salisbury Mike Futrell Director of Finance City Manager viii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of South San Francisco California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2020 Executive Director/CEO ix 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 Eddie Flores (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 Nell Selander Deputy 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 November 30, 2021 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, 2021, 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 0.61%, 1.20%, and 0.77%, respectively, of the assets, net position, and revenue of the primary government. Those 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 the Authority, 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, 2021, 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. Change in Accounting Principles Management adopted the provisions of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities, which became effective during the year ended June 30, 2021 and required the restatement of net position as discussed in Note 1T to the financial statements. Management also early-adopted the provisions of Governmental Accounting Standards Board Statement No. 98 -The Annual Comprehensive Financial Report for the year ended June 30, 2021, which establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The emphasis of these matters does not constitute a modification to our opinions. 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. 2 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 4, 2022 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 the effectiveness of the City’s 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 4, 2022 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) 2020-21 FINANCIAL HIGHLIGHTS Summary: Fiscal Year (FY) 2020-21 proved to be a challenging and unusual year for the City of South San Francisco, both financially and operationally, due to the continuing COVID-19 pandemic which began in early 2020. The various pandemic-related restrictions continued in one form or another well into FY 2020-21, impacting all aspects of society and leading to widespread negative economic impacts for individual citizens, businesses (hospitality, restaurant and retail industries in particular) and government agencies alike. For the City, this meant large declines in some revenue streams such as Transient Occupancy Tax (TOT). In response, the City sought to reduce expenditures, all the while trying to enhance services for the most vulnerable in the community through food drives, testing events, vaccine clinics and rental assistance programs, to name a few. Just prior to the beginning of the COVID-19 pandemic, S&P Global Ratings (“S&P”) assigned an issuer rating of triple A (“AAA”) to the City which is the highest rating possible and generally results 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 seen prior to the pandemic largely fueled by development growth from the biotechnology and housing sectors. It was this sound financial footing, along with solid executive management, fiscally sound policies and practices, and sound budgetary performance that allowed the City to weather the impacts from the COVID-19 pandemic through FY 2020-21. Part of the federal response to the COVID-19 pandemic was to pass the American Rescue Plan Act (ARPA) in March 2021 which included $350 billion in stimulus funds for eligible state, local, territorial and Tribal governments. The City of South San Francisco was allocated a total of $12.3 million in ARPA funds, half of which was received in June 2021 and recorded in its own fund ready to be deployed on City Council approved projects related to the negative economic impacts caused by the pandemic. The second half of the funding is due to be received in June 2022. The General Fund is the main fund of the City, accounting for principal revenues including taxes, licenses and permits, charges for services, grants and interest income, as well as expenditures related to delivery of public services by City departments such as Police, Fire, Public Works, Parks and Recreation, Library and Administrative Services. Performance of this fund is viewed as the main barometer of the financial health of the City. Compared to the prior year, FY 2020-21 General Funds revenues (excluding transfers in from other funds and special items) decreased by $7.4 million, or 5.7%. 5 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information The negative economic impact caused by the global COVID-19 pandemic is the main driver for this reduction, primarily realized in Transient Occupancy Tax (TOT) and charges for services. This was offset partially by continuing upward trends in property tax, 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 Fiscal Year (FY) 2020-21 increased by $27.4 million, or 9.0%, from $304.7 million to $332.1 million in comparison to the prior year. The increase is primarily due to further investment in City assets through bond issuance backed by the underlying strength in the local economy generating Measure W tax revenue which is used to make bond repayments as well as for direct funding of public facility projects such as the new Police Station. The growth in assets of $149.4 million is partially offset by a $125.4 million increase in liabilities, mainly bond debt - $100.8 million. Total Net Position for Business-Type activities in FY 2020-21 increased by $16.8 million, or 14.7%, from $114.0 million to $130.8 million in comparison to the prior year. The growth in Net Position is due to a $7.5 million increase in cash and receivable balances at year end as well as a $21.7 million increase in capital assets due to construction work underway at the City’s Water Quality Control Plant (WQCP). This is partially offset by a $12.7 million increase in liabilities which is mainly due to the loans required to undertake the work at the WQCP. City-wide Net Pension Liability to CalPERS for FY ending June 30, 2021 increased by $12.2 million, or 6.3%, to $205.3 million from $193.1 million in the prior year. The liability increase was driven by revised actuarial valuations from CalPERS taking into account member contributions and investment earnings. Cash and investments at year end increased $12.4 million, or 5.0%, compared to the prior year, despite the challenges from the COVID-19 pandemic, from $246.9 million to $259.3 million. This reflects the underlying strength in the local economy as the City began to emerge from the impacts of the pandemic during the fiscal year and the prudent policies put in place to control expenditures. Expenses from Governmental Activities (excluding transfers) decreased by $7.9 million, or 5.7%, to $132.4 million in FY2020-21 from $140.3 million in the prior year due to savings in the Police department, Public Works, and Parks and Recreation. Expenses from Business-Type Activities increased slightly by $0.4 million, or 1.3%, to $28.9 million compared to $28.5 million in the prior year. 6 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Revenues from Governmental Activities (excluding transfers and special items) decreased by $10.3 million, or 5.9%, to $166.2 million in FY 2020-21 from $176.5 million in the prior year. From a city-wide perspective, revenues from Business-Type Activities (excluding transfers and special items) partially offset this with an increase of $6.7 million, or 20%, to $40.7 million in FY2020-21 from $34.0 million in the prior year. Property tax revenues categorized under Governmental Activities continued to increase in FY 2020-21 by $4.2 million, or 11.0%, to $41.6 million from $37.4 million in the prior year. This was primarily due to a property market that remained buoyant and strengthened somewhat during the pandemic as homeowners looked to make improvements or upsize for more space while working from home. Sales tax increased by $1.2 million, or 3.7% to $33 million in FY 2020-21 from $31.8 million in the prior year. Early in the fiscal year, shelter-in-place orders related to the COVID-19 pandemic had a negative impact on this category but as the year progressed and vaccines were rolled out, restrictions eased and the local and wider economy began to rebound and spending levels increased, driving a recovery in sales tax revenue. This increase is wholly attributable to growth in local Measure W sales tax revenues. Transient Occupancy Tax (“TOT”) has been the most dramatically impacted revenue category as a result of the shelter-in-place orders and travel restrictions put in place in response to the COVID-19 pandemic. Local hotels experienced very high vacancy rates which led to a large reduction in TOT collections. TOT revenue decreased by $7.1 million, or 51.5%, to $6.7 million in FY 2020-21 from $13.8 million in the prior year. As vaccination levels in the population increased and restrictions began to ease during the year, hotel occupancy started to rebound and collections increased accordingly. This trend is expected to continue. Licenses and permits revenue for Governmental Funds decreased by a small amount in FY 2020-21 - $0.3 million, or 2.0%, from $15.9 million to $15.6 million. Despite the slight reduction, revenues remain high in this category which is indicative of the continued growth and development throughout the City despite the pandemic. South San Francisco continues to see high 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. Total revenues from the City’s Sewer Enterprise increased $2.0 million, or 6.3% to $33.8 million from $31.8 million in the prior year due mainly to greater contributions from other cities to which the City of South San Francisco’s WQCP provides services. The City’s Parking Enterprise experienced a $0.3 million, or 32.0%, decrease in revenues to $0.8 million in FY2020-21 compared to $1.1 million in the prior year due to reduced parking activity caused by mandated restrictions put in place in response to the COVID-19 pandemic. 7 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT This Annual Comprehensive Financial Report (ACFR) 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 of 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 distinct activities of the City. The Fund Financial Statements report the City’s operations in more detail than the government- wide statements. The Governmental Fund Financial Statements focus primarily on the short-term activities of the City’s General Fund and other Major Funds and measure only current revenues, expenditures, and fund balances; they exclude capital assets, long-term debt and other long-term amounts. The Proprietary Fund Financial Statements focus on the Business-Type “enterprises” of the City, i.e. activities that are accounted for in a similar way to private sector organizations using the full accrual basis, thereby including both short-term and long-term elements. 8 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 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. The Fiduciary Fund Financial 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 (or Sewer), 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. City-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole and account for revenues when due and expenses when incurred. 9 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Fund Financial Statements The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called Major Funds. 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 activities. Fund Financial Statements include governmental, enterprise and internal service funds as discussed below. Governmental Fund Financial Statements are prepared on the modified accrual basis, which mean they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements. Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis 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 city-wide 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 Fund Financial 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 2020-21 are presented versus FY 2019-20. 10 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 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 and deferred outflows of resources exceed the total liabilities and deferred inflows of resources as of June 30, 2021 for Governmental Activities: Governmental Net Position Table 1 Governmental Net Position at June 30 (In Millions) The total net position for Governmental Activities increased by $27.4 million in FY 2020-21 compared to the prior year, reflecting significant increases in assets as shown in table 1. Cash and investments increased by $9.5 million. Other assets, which includes receivables, properties held for redevelopment and restricted cash and investments, increased by $58.2 million due to additional proceeds received from issuance of a new bond for construction of the new Civic Center Campus. Capital assets increased by $81.6 million due to a large increase in Construction-In- Progress related to the new Police Station and other Capital Improvement Plan projects. Pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB liability of $57.9 million and Net Pension Liability of $184.8 million attributable to Governmental Activities. Increase / (Decrease) 2021 2020 Amount % Cash and investments 229.1$ 219.6$ 9.5$ 4.3% Other assets 148.7 90.5 58.2 64.3% Capital assets 383.1 301.5 81.6 27.1% Total assets 760.9 611.6 149.3 24.4% Total outflows of resources 31.2 29.4 1.8 6.1% Total outflow of resources 31.2 29.4 1.8 6.1% Long‐term debt outstanding 157.5 56.8 100.7 177.3% Other liabilities 301.0 276.3 24.7 8.9% Total liabilities 458.5 333.1 125.4 37.6% Deferred inflows of resources 1.6 3.2 (1.6) (50.0%) Total deferred inflow of resources 1.6 3.2 (1.6) (50.0%) Net position: Net investment in capital assets 316.1 296.2 19.9 6.7% Restricted 160.2 138.7 21.5 15.5% Unrestricted (144.2) (130.2) (14.0) 10.8% Total net position 332.1$ 304.7$ 27.4$ 9.0% 11 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) 2021 2020 Amount % Revenues Program revenues: Charges for services 44.9$ 48.8$ (3.9)$ (8.0%) Operating grants and contributions 8.0 8.8 (0.8) (9.1%) Capital grants and contributions 5.5 4.9 0.6 12.2% Total program revenues 58.4$ 62.5$ (4.1)$ (6.6%) General revenues: Taxes: Property taxes 41.6$ 37.4$ 4.2$ 11.2% Sales taxes 33.0 31.8 1.2 3.8% Transient occupancy taxes 6.7 13.8 (7.1) (51.4%) Other taxes 9.1 9.1 0.0 0.0% Property taxes in l ieu 4.9 7.5 (2.6) (34.7%) Investment earnings 0.9 6.4 (5.5) (85.9%) Miscellaneous 11.6 9.2 2.4 26.1% Total general revenues 107.8$ 115.2$ (7.4)$ (6.4%) Total revenues 166.2$ 177.7$ (11.5)$ (6.5%) Expenses General government 19.6$ 15.4$ 4.2$ 27.3% Fire department 34.5 34.5 0.0 0.0% Police department 33.4 36.1 (2.7) (7.5%) Public Works 7.6 17.7 (10.1) (57.1%) Parks and Recreation 17.1 19.6 (2.5) (12.8%) Library 6.3 6.7 (0.4) (6.0%) Economic and Community Development 11.7 9.8 1.9 19.4% Interest on long‐term debt 2.2 0.5 1.7 340.0% Total expenses 132.4$ 140.3$ (7.9)$ (5.6%) Excess / (deficiency) before transfers 33.8$ 37.4$ (3.6)$ (9.6%) Special Item (1.4) 0.3 (1.7) (618.5%) Transfers (5.0) (8.1) 3.1 (38.3%) Change in net position 27.4 29.6 (2.2) (7.3%) Net position ‐ beginning 304.7 275.1 29.6 10.8% Net position ‐ ending 332.1$ 304.7$ 27.4$ 9.0% 12 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information As shown in table 2, total Governmental revenues (excluding transfers and special items) decreased by $11.5 million compared to the prior year, primarily due to COVID-19-related impacts on TOT which accounts for more than half ($7.1 million) of the total reduction in revenue. A decrease was also seen in Property taxes in lieu ($2.6 million), otherwise known as the California Vehicle Licensing Fee (VLF) – all cities across San Mateo County experienced a shortfall in this category in FY 2020-21 due to a change in the ratio of basic aid to non-basic aid school districts in the county which affects the availability of VLF. Investment earnings also reduced by $5.5 million to $0.9 million due to the mark-to-market adjustment required by Governmental Accounting Standards Board (GASB) accounting standard #31. These reductions were partially offset by $4.2 million and $1.2 million respective increases in property tax and sales tax. These increases were due to a continued upward trend in property prices despite the pandemic and recovering activity in the local economy. Chart 1 shows the distribution of revenues from Governmental Activities by category. Governmental program expenses decreased by $8.0 million in comparison to the prior year. This is primarily due to a significantly greater adjustment for capital assets during FY 2020-21 particularly with respect to construction in progress of the new Police Station and Civic Center Campus. There were also savings in some General Fund departments including Public Works, Parks and Recreation, and Economic and Community Development which contributed to the reduction in overall Government program expenses. Chart 1 Revenues by Source - Governmental Activities FY 2020-21 13 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Table 3 illustrates the difference between program revenues and program 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 2020-21, the net expense for governmental activities decreased by $3.9 million from $77.9 million to $74.0 million, due to $8.0 million in reductions in Governmental program expenses, as previously discussed, and a $4.1 million reduction in program revenues primarily in capital grants and contributions. Increase / (Decrease) 2021 2020 Amount % General government (9.8)$ (9.2)$ (0.6)$ 6.5% Fire department (28.3) (28.4) 0.1 (0.4%) Police department (31.0) (33.3) 2.3 (6.9%) Public works department 21.4 15.7 5.7 36.3% Recreation and community services (15.3) (16.0) 0.7 (4.4%) Library (2.0) (5.9) 3.9 (66.1%) Economic and community development (6.8) (0.3) (6.5) 2166.7% Interest on long‐term debt (2.2) (0.5) (1.7) 340.0% Total (74.0)$ (77.9)$ 3.9$ (5.0%) 14 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Business-Type Activities Table 4 shows that total assets and deferred outflows of resources exceed the total liabilities and deferred inflows of resources as of June 30, 2021 for Business-Type Activities: Table 4 Business-type Net Position at June 30 (in Millions) The total net position for Business-Type Activities increased by $16.8 million compared to the prior year. Total assets increased by $29.2 million, or 14.9%, reflecting increases of capital assets related to construction in the WQCP Wet Weather and Digester Improvements Project and other sewer-related projects. However, total liabilities increased by $12.7 million due to drawdowns of $15.0 million on the 2018 Clean Water State Revolving Fund and partially offset by debt service payments on the other outstanding loans. Similar to Governmental Activities and pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB liability of $6.4 million and Net Pension Liability of $20.5 million attributable to Business- Type Activities. Increase / (Decrease) 2021 2020 Amount % Cash and Investments 30.2$ 27.3$ 2.9$ 10.6% Other assets 8.3 3.6 4.7 130.6% Capital assets 186.4 164.8 21.6 13.1% Total assets 224.9 195.7 29.2 14.9% Deferred outflows related to pension/OPEB 3.4 3.3 0.1 3.0% Total Deferred outflow of resources 3.4 3.3 0.1 3.0% Long‐term liabilities outstanding 57.6 47.8 9.8 20.5% Other liabilities 39.7 36.8 2.9 7.9% Total liabilities 97.3 84.6 12.7 15.0% Deferred inflows related to pension/OPEB 0.2 0.4 (0.2) (50.0%) Total deferred inflow of resources 0.2 0.4 (0.2) (50.0%) Net position: Net investment in capital assets 123.6 112.0 11.6 10.4% Restricted 0.0 0.0 0.0 0.0% Unrestricted 7.2 2.0 5.2 100.0% Total net position 130.8$ 114.0$ 16.8$ 14.7% 15 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 Activities Net Position (In Millions) Expenses from Business-Type Activities in FY2020-21 increased marginally by $0.4 million to $28.9 million while total revenues increased by $6.7 million to $40.7 million giving rise to a change in net position of $16.8 million after transfers compared to the $13.5 million change in net position in the prior year. This $16.8 million change was primarily attributable to increases in operating grants and contributions which more than offset the reduction in transfers in from other funds. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable resources. Such information can be helpful in determining the City’s financial condition. Unrestricted fund balance is a major indicator of designated and uncommitted resources available for spending in future fiscal years. Increase / (Decrease) 2021 2020 Amount % Expenses Sewer Enterprise 26.7$ 26.2$ 0.5$ 1.9% Parking District 1.3 1.1 0.2 18.2% Storm Water 0.9 1.2 (0.3) (25.0%) Total expenses 28.9 28.5 0.4 1.4% Revenues Program Revenues Charges for Services 25.8 25.7 0.1 0.4% Operating grants and contributions 14.8 7.4 7.4 100.0% Total program revenues 40.6 33.1 7.5 22.7% General revenues Investment earnings 0.1 0.8 (0.8) (93.8%) Total general revenues 0.1 0.8 (0.8) (93.8%) Excess (deficiency) before transfers 11.8 5.4 6.4 117.6% Transfers 5.0 8.1 (3.1) (38.3%) Change in net position 16.8 13.5 3.3 24.1% Net position ‐ beginning (as adjusted) 114.0 100.5 13.5 13.4% Net position ‐ ending 130.8$ 114.0$ 16.8$ 14.7% 16 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information At June 30, 2021, the City’s Governmental Funds reported combined fund balances of $310.1 million, an increase of $55.2 million, or 21.7%, compared to the prior year. The General Fund ending fund balance, which includes Measure W, was $75.7 million, reflecting a decrease of $9.4 million, or 11.0% primarily due to allocation of Measure W funds towards construction of the new Police Station. Total Governmental Fund revenues (excluding transfers and special items) decreased by $10.3 million, or 5.9%, from $176.5 million to $166.2 million, with significant decreases in TOT, interest and rentals, and charges for services, all as a direct result of the negative economic impacts of the COVID-19 pandemic. Total Governmental Fund expenditures (excluding transfers and special items) increased by $53.4 million or 35.0%, from $152.7 million to $206.1 million, primarily stemming from increased project expenditures for the new Police station and new community Civic Center Campus, the latter paid for by issuance of a new bond in FY2020-21. In addition, the City’s personnel costs for salaries and benefits increased in accordance with negotiated Memorandums of Understanding and general increases in healthcare costs. These were somewhat offset by departmental savings in other areas. Comparison of General Fund 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 expenditures 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 (including Measure W). Changes between the adopted and final budgets are shown and explained in table 6: 17 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Table 6 Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted Budget (in Thousands) Original Final Pct Discussion: Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance) Property taxes 41,596$ 43,052$ 1,456$ 3.5% Sales taxes 29,608 31,208 1,600 5.4% Sales tax collections proved to be stronger than originally expected - City's sales tax consultant projections indicated higher revenue for the year leading to upward revision Transient occupancy taxes 7,873 5,904 (1,969) -25.0% Travel industry continued to be severely impacted by COVID-19 pandemic further into the year than originally expected leading to downward budget revision Other taxes 3,118 3,118 - Franchise Fee 4,600 4,600 - Intergovernmental 2,223 3,261 1,038 46.7% Reflects $838k COVID-19 pandemic-related CARES Act federal award to the City, fire and COVID-19-related FEMA reimbursements and various other federal, state and local grants applied for during the year Interest and rentals 3,828 3,828 - Licenses and permits 14,995 14,995 - Charges for services 8,012 7,062 (950) -11.9% COVID-19 pandemic proved more impactful on various Parks & Recreation services including child care, picnic rentals, and classes and events Fines and forfeitures 789 789 - Other 175 175 - Total 116,817$ 117,992$ 1,175$ 1.0% Original Final Pct Discussion: Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance) City Council 285$ 285$ -$ City Clerk 1,097 1,097 - City Treasurer 145 145 - C ity Attorney 910 910 - City Manager 2,163 5,460 3,297 152.4% General Plan update work, Commission on Racial & Social Equity, East of 101 Community Facilitites District work and increased part-time support staff Finance 3,239 3,640 401 12.4% Accounts for various purchase orders carried over from the previous FY, funds for Financial Analyst II position and revenue consultant Non-Departmental 1,044 1,737 693 66.4% Various programs funded by CARES Act federal award Human Resources 1,780 2,031 251 14.1% Accounts for carryover purchase orders, Summer Jobs for Youth (internship) program, and personnel and payroll system (PDS) automation Economic and Community Development 7,206 9,607 2,401 33.3% Accounts for various purchase orders carried over from the previous year for plan review and building inspection services, and General Plan work Fire 29,978 31,010 1,032 3.4% Police 31,882 32,020 138 0.4% Public Works 5,774 5,857 83 1.4% Library 6,048 6,246 198 3.3% Parks and Recreation 15,655 16,024 369 2.4% Total 107,206$ 116,069$ 8,863$ 8.3% 18 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Analysis of Major Governmental Funds General Fund In FY 2020-21, total General Fund revenues, excluding transfers in, were $123.5 million which was $5.5 million, or 4.7% higher than the final amended budget. Total General Fund expenditures, excluding transfers out, ended FY 2020-21 at $108.9 million which was $7.2 million, or 6.2%, lower than final budget due to savings realized in multiple departments. As of June 30, 2021, the General Fund total fund balance was $75.7 million, $7.9 million of which was attributable to Measure W. Of the remaining fund balance, $21.8 million was held in reserve in accordance with city policy which is aligned with the Governmental Finance Officers Association (GFOA) recommended reserve practice of between 15-20 percent of General Fund operating revenue. The remaining $46.0 million was held in designation/reserve accounts for various purposes including unassigned fund balance (available for operational use), encumbrances (committed expenditure items), capital projects and land held for development. The unassigned reserves are designated by the City Council based on the City’s Reserves Policy and include funds for economic contingencies, potential catastrophe and budget contingencies. Revenues. Property tax collections in FY 2020-21 were $44.2 million, which was $1.2 million or 2.8% over final budget. This was mainly due to higher than expected increases in assessed values and new properties added to the tax roll despite the COVID-19 pandemic. Sales tax revenue, including Measure W, was $32.7 million, which was $1.5 million or 4.9% over final budget, proving much more resilient through the pandemic than originally expected, and reflecting a rebound in the local economy as restrictions eased as the fiscal year progressed. Transient occupancy taxes came in at $6.7 million, which was $0.8 million or 13.7% over final budget. This category was budgeted very conservatively due to the severe impact of the pandemic on the hospitality industry seen in Q4 of FY2019-20. As vaccination rates increased during FY2020-21 and restrictions eased, TOT collections began to improve giving rise to final collections higher than budget. By way of contrast, pre-pandemic TOT levels were approximately $17 million (FY2018-19). Intergovernmental revenues were $4.3 million, $1.1 million, or 32.6%, higher than final budget mainly due to greater than expected reimbursements from the California Office of Emergency Services for fire-related activities. Licenses and permits revenues were $15.6 million, which was $0.6 million or 4.0% over final budget. The continued strong demand for licenses and permits was primarily attributable to non- residential and bio-tech development in the East of 101 area and high density residential development in the downtown area. 19 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Charges for services was $6.5 million, which was $0.5 million or 7.7% below budget, due to the continued negative impacts of the pandemic with respect to classes and events, child care services and rentals. Measure W revenue increased by $1.7 million, or 14.5%, from $11.7 million in FY2019-20 to $13.4 million in FY 2020-21 largely due to the improving local economy as COVID-19 restrictions eased during the course of the year enabling spending patterns of city residents to return to more normal levels. Expenditures. 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 Fire Department as a result of additional overtime costs related to wildfire and COVID-19 emergency response activities. Much of this was offset by savings in other departments. Compared to the prior year, General Fund expenditures, excluding transfers, increased slightly from $113.4 million to $114.5 million (including encumbrances), driven by a return to a more normal level of services during the year as the city opened up following easing of COVID-19-related restrictions, but yielded a $1.6 million positive variance versus final budget. 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, 2021, the fund balance was $3.2 million, a reduction from $6 million at the end of the prior year. In FY 2020-21, the City Housing Fund received $0.2 million in revenues. The fund had $3.0 million in expenditures, $2.5 million of which was for a developer loan for the development of below market rate housing units at 201-219 Grand Avenue, $0.2 million for rental assistance to households severely impacted by the COVID-19 pandemic, and the remainder for administrative staff costs to support the City’s Housing Division. Capital Improvement Funds The City consolidates and reports its governmental fund-type capital project expenditures in these funds. 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. 20 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Resources also come from federal, state, and local grants, contributions from other cities, utilities and private developers. From time to time and when financially feasible and prudent to do so, the City issues bonds which generate proceeds for large-scale public facility projects. In addition to the bond issuance in FY2019-20 for the new Police station, the City issued $86.4 million in bonds to fund the construction of the new Civic Center Campus, installation of a solar roof at the City’s Corporation Yard and for the City’s Road Rehabilitation Program. Entire capital projects are appropriated in one-year, but expended over multiple years, with unspent appropriations carried forward year-to-year until completion. In FY 2020-21, combined ending fund balance for Capital Improvement Funds (excluding Impact Fee Funds) was $136.9 million which increased $60.7 million from the combined ending fund balance of $76.2 million in the prior year. The increase was due to the issuance of the Civic Center Campus Phase II bonds which generated $104 million in proceeds. This increase to fund balance was partially offset by approximately $40 million of construction-related expenditures for the new police station during the year and $3 million in transfers out to fund street-related capital projects from the Capital Infrastructure Reserve Fund. Developer Impact Fees To ensure developers pay their fair share of the impact of new developments on the City’s capital and infrastructure, the City imposes impact fees. Despite the COVID-19 pandemic, in FY2020- 21, South San Francisco continued to experience a robust development environment that accounted for significant collection of developer impact fees and interest earned including $0.5 million in East of 101 Sewer Impact Fees to be used to maintain the sewer collection and treatment facilities serving the east of 101 area. This fund experienced an overall $1.3 million decrease in fund balance from $5.4 million to $4.1 million due to the transfers out to fund those capital projects. Park Construction Impact Fees received amounted to $3.1 million which is to be used for the improvements and construction of City park facilities. After transfers out to fund these capital projects, fund balance ended at $5.3 million, an increase from $2.3 million in the prior year. Commercial Linkage Impact Fees received were $5.4 million which is to be used to provide affordable housing and to support the City’s adopted 2015-2023 Housing Element. After transfers out to fund these projects, fund balance rose to $10.2 million in FY 2020-21 from $8.0 million in the prior year. In FY 2020-21, the City also received $2 million in Traffic Impact Fees to be used for expanded roadway and intersection improvements serving the east of 101 area, $0.6 million in Child Care Impact Fees to be used for new and expanded childcare facilities in the City, $0.2 million in Public Safety Impact Fees to be used for new and expanded public safety capital facility projects and equipment, $0.8 million in Park Land Acquisition Fees to be used to acquire land for parks within the City, and $8.9 million in Oyster Point Development Impact Fees to be used for interchange projects in the Oyster Point area. 21 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information Other Governmental Funds Presented as a group in the Basic Financial Statements, these funds are individually presented as Supplementary Information. Enterprise Funds Sewer Enterprise Fund The Sewer Enterprise fund reported operating revenue (before non-operating revenues and operating transfers) of $33.8 million in FY2020-21, an increase of $2.7 million, or 8.6%, from $31.2 million in the prior year, reflecting an increase in the amount contributed by other cities receiving wastewater treatment services from the City of South San Francisco’s Wastewater Quality Control Plant (WQCP). Operating expenses increased $0.6 million, or 2.0%, from $ 25.5 million to $26.1 million, reflecting the impact of increases in employee compensation along with slight increases in normal expenses like professional services and supplies. Parking District Fund In FY 2020-21, the Parking District fund reported an operating loss (before non-operating revenues and operating transfers) of $0.6 million which was an increase on the loss seen in the prior year of $0.2 million. Operating revenues decreased by $0.2 million, or 20.0%, from $1.0 million to $0.8 million, primarily due to reduced usage of parking meters during the first half of the year when COVID-19-related restrictions remained in force. Operating expenses increased by $0.2 million, or 19.6% from $1.1 million to $1.3 million due to higher personnel costs and professional services expenses. 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, which is flat compared to the prior year, primarily from a levy on property owners. Transfers in from other funds totaled $0.9 million - $0.2 million from the General Fund and $0.7 million from non-Major Governmental Funds. A one-off grant receivable for $5.7 million was recorded in the year related to the Orange Memorial Park storm water capture CIP project. Operating expenses in this fund totaled $0.9 million, down $0.3 million, or 24.0%, from $1.2 million in the prior year. Net position increased $6.1 million from $5.4 million to $11.5 million, largely due to the grant received. 22 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 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 of its capital assets, except land and construction in progress. At June 30, 2021, the City had $569.5 million in capital assets, net of depreciation, representing a substantial increase of $103.2 million from the prior year, driven primarily by in progress construction projects such as the new Police station. The City’s various capital asset types used in Governmental and Business-Type Activities, are illustrated in Table 7: Table 7 Capital Assets (in Millions) at June 30 2021 2020 Amount % Governmental Activities: Land 66.7$ 66.7$ ‐$ 0.0% Buildings and improvements 97.4 96.3 1.1 1.1% Equipment and vehicles 24.5 24.4 0.1 0.4% Furniture and fixtures 2.6 2.6 0.0 0.0% Infrastructure ‐ streets 200.9 200.1 0.8 0.4% Infrastructure ‐ traffic control devices 12.6 12.6 0.0 0.0% Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0% Construction in progress 160.4 71.4 89.0 124.6% Less accumulated depreciation (190.9) (181.5) (9.4) 5.2% Totals 383.1$ 301.5$ 81.6$ 27.1% Business‐Type Activities Land 0.8$ 0.8$ ‐$ 0.0% Buildings and improvements 80.1 67.1 13.0 19.4% Clean water facilities and transmission line 79.9 79.9 0.0 0.0% Infrastructure ‐ storm drains 6.2 6.2 0.0 0.0% Infrastructure ‐ streets 7.4 7.3 0.1 1.4% Equipment and vehicles 18.5 18.5 0.0 0.0% Construction in progress 68.9 55.4 13.5 24.4% Less accumulated depreciation (75.4) (70.4) (5.0) 7.1% Totals 186.4$ 164.8$ 21.6$ 13.1% Total City 569.5$ 466.3$ 103.2$ 22.1% 23 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 shown in table 8 (excluding unamortized bond premiums): Table 8 Outstanding Debt (In Millions) at June 30 In June 2021, the City of South San Francisco Public Facilities Financing Authority issued $86.4 million in lease revenue bonds, Series 2021A, for the construction of the new Civic Center Campus, installation of a solar roof at the City’s Corporation Yard, and expansion and implementation of the City’s Road Rehabilitation Program. The City received a total of $104 million in proceeds from this issuance, of which $78 million, $2 million and $24 million was allocated to the three projects respectively. The increase of $10.0 million in Business-Type Activities outstanding debt stems from the drawdown of an additional $15.0 million State Water Resources Board loan and the retirement of $5.0 million during FY 2020-21. The largest remaining debt obligations are the following: -1999, 2004, 2008 State Water Resources Control Board Loans – Original debt: $78.144.286; 2.4% to 2.6% interest rate; due 8/1/22, 4/30/26, 7/15/28. These loans were used to improve and expand the City’s Water Quality Control Plant (WQCP). Loan proceeds were issued as projects progressed. Debt service payment commenced one year after project completion. WQCP user fees support the debt service payments. Because of the regional benefits and equity interest in these projects, the City of San Bruno shares in the loan repayments for the first two of the four current loans. Increase / (Decrease) Governmental Activities 2021 2020 Amount % Lease Revenue Bonds 129.4$ 43.9$ 85.5$ 100.0% Plus: Unamortized Bond Premium 27.6 9.9 17.7 100.0% Loan payable to Successor Agency 3.6 3.6 0.0 0.0% Capital leases 0.3 0.5 (0.2) (40.0%) Total Governmental Activities Outstanding Debt 160.9$ 57.9$ 103.0$ 177.9% Business‐type Activities State Water Resources Board loans 60.5$ 50.1$ 10.4$ 20.8% 2005 Sewer Bonds 2.3 2.7 (0.4) (14.8%) Total Business‐type Activities Outstanding Debt 62.8$ 52.8$ 10.0$ 18.9% 24 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information -2018 State Water Resources Control Board Loan - Original debt: $53,403,000; 1.8% interest rate; due October 3, 2042. The loan proceeds are being used for the WQCP Wet Weather and Digester project. Loan proceeds have been issued over time as projects progressed. Debt service payments are due to commence on October 3, 2023, one year after project completion. WQCP user fees support the debt service payments. -2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received: $10,242,530; 4 - 5% interest rate; due June 1, 2046. The bonds were used for Phase I of the Civic Center Campus project consisting of the planning and construction of a new Police Station and Dispatch Center for the City of South San Francisco. Measure W sales tax revenue will fund the repayments. -2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received: $18,116,565; 4% interest rate; due June 1, 2046. $78,000,000 of the bond proceeds are to be used for Phase II of the Civic Center Campus project consisting of the design and construction of the new library, parks and recreation center, council chambers and landscaping of the immediate surrounding area. $24,000,000 will be used for road pavement rehabilitation throughout the City, and $2,000,000 will be used for solar roof installation at the City's Corporation Yard. Measure W sales tax revenue will fund the repayments. 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 Annual Comprehensive 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. 25 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. 27 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)$229,061,652 $30,244,358 $259,306,010 $3,322,418 Receivables: Accounts 13,502,034 7,777,434 21,279,468 211,818 Accrued interest 606,062 71,491 677,553 Loans 1,419,000 1,419,000 Due from Conference Center 62,516 62,516 Deposits 309,790 309,790 20,805 Inventory 4,099 4,099 Restricted cash and investments (Note 2)116,473,585 339,031 116,812,616 Properties held for redevelopment (Note 1N)16,354,141 16,354,141 Capital assets (Note 3): Nondepreciable 227,105,870 69,727,000 296,832,870 Depreciable, net accumulated depreciation 156,018,402 116,707,401 272,725,803 2,537,986 Total Assets 760,917,151 224,866,715 985,783,866 6,093,027 DEFERRED OUTFLOWS OF RESOURCES Related to pension (Note 7)25,259,482 2,806,609 28,066,091 Related to OPEB (Note 9)5,948,833 660,981 6,609,814 Total Deferred Outflows of Resources 31,208,315 3,467,590 34,675,905 LIABILITIES Accounts payable 10,634,035 4,468,179 15,102,214 174,980 Accrued salaries and benefits 2,835,241 2,835,241 57,771 Accrued interest payable 424,820 304,993 729,813 Other payables 6,415,191 1,860,397 8,275,588 Deposits 3,541,257 7,500 3,548,757 258,386 Unearned revenue 6,260,975 33,027 6,294,002 Accrued insurance losses (Note 11): Due within one year 2,878,797 2,878,797 Due in more than one year 12,871,000 12,871,000 Compensated absences obligation (Note 1L): Due within one year 4,612,735 522,162 5,134,897 Due in more than one year 4,422,038 354,833 4,776,871 Debt and capital lease obligations (Note 5): Due within one year 3,330,892 5,173,954 8,504,846 Due in more than one year 157,530,178 57,631,505 215,161,683 Net OPEB Liability - due in more than one year (Note 9)57,935,336 6,437,260 64,372,596 Net pension liability - due in more than one year (Note 7)184,769,905 20,529,990 205,299,895 Total Liabilities 458,462,400 97,323,800 555,786,200 491,137 DEFERRED INFLOWS OF RESOURCES Related to pension (Note 7)136,968 15,219 152,187 Related to OPEB (Note 9)1,418,330 157,592 1,575,922 Total Deferred Inflows of Resources 1,555,298 172,811 1,728,109 NET POSITION (Note 6) Net investment in capital assets 316,169,957 123,628,942 439,798,899 2,537,986 Restricted for: Debt service Special revenue projects 35,439,592 35,439,592 Capital projects 108,325,323 108,325,323 Redevelopment and community development activities 16,354,141 16,354,141 Total Restricted Net Position 160,119,056 160,119,056 Unrestricted (144,181,245)7,208,752 (136,972,493)3,063,904 Total Net Position $332,107,768 $130,837,694 $462,945,462 $5,601,890 See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO STATEMENT OF NET POSITION JUNE 30, 2021 29 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government Governmental Activities: General Government $19,611,586 $6,968,307 $2,853,630 Fire 34,492,838 5,952,872 243,934 Police 33,376,962 1,642,726 739,919 Public Works 7,567,745 24,859,635 2,398,574 $1,704,698 Parks and Recreation 17,159,696 1,165,630 733,120 Library 6,274,811 19,037 398,910 3,794,000 Economic and Community Development 11,728,168 4,275,808 653,871 Interest on long term debt 2,200,344 Total Governmental Activities 132,412,150 44,884,015 8,021,958 5,498,698 Business-type Activities Sewer 26,644,459 24,705,044 9,138,461 Parking District 1,338,092 764,514 Storm Water 922,057 410,745 5,676,999 Total Business-type Activities 28,904,608 25,880,303 14,815,460 Total Primary Government $161,316,758 $70,764,318 $22,837,418 $5,498,698 Component Unit Conference Center $2,880,898 $195,667 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 Miscellaneous Special Item: 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, 2021 Program Revenues 30 Component Unit South San Francisco Governmental Business-Type Conference Activities Activities Total Center ($9,789,649)($9,789,649) (28,296,032)(28,296,032) (30,994,317)(30,994,317) 21,395,162 21,395,162 (15,260,946)(15,260,946) (2,062,864)(2,062,864) (6,798,489)(6,798,489) (2,200,344)(2,200,344) (74,007,479)(74,007,479) $7,199,046 7,199,046 (573,578)(573,578) 5,165,687 5,165,687 11,791,155 11,791,155 (74,007,479)11,791,155 (62,216,324) ($2,685,231) 41,561,039 41,561,039 33,039,229 33,039,229 6,710,271 6,710,271 1,385,545 4,498,202 4,498,202 4,529,764 4,529,764 49,785 49,785 4,888,696 4,888,696 941,856 52,623 994,479 458 11,602,214 11,602,214 3,800 (1,378,533)(1,378,533) (4,984,746)4,984,746 101,457,777 5,037,369 106,495,146 1,389,803 27,450,298 16,828,524 44,278,822 (1,295,428) 304,657,470 114,009,170 418,666,640 6,897,318 $332,107,768 $130,837,694 $462,945,462 $5,601,890 Primary Government Net (Expenses) Revenues and Changes in Net Position 31 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 2021. 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. 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 and other areas of the City. 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 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. 33 FUND FINANCIAL STATEMENTS (Continued) CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND To account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting 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 2021A Bonds. 34 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2021 Capital Projects Funds Low and Moderate East of 101 General Income Capital Sewer Traffic Fund Housing Assets Improvement Impact Fees Impact Fees ASSETS Cash and investments (Note 2)$56,463,292 $2,493,621 $1,207,091 $4,130,668 $24,422,340 Receivables: Accounts 10,529,164 5,732 2,265,306 Accrued interest 164,535 11,907 13,611 67,970 Due from Conference Center 62,516 Loans 714,034 Inventory 4,099 Restricted cash and investments (Note 2)152,797 26,000,000 Properties held for redevelopment (Note 1N)16,354,141 Total Assets $83,730,544 $3,225,294 $29,472,397 $4,144,279 $24,490,310 LIABILITIES Liabilities: Accounts payable $3,200,919 $100 $1,057,542 Accrued salaries and benefits 2,835,241 Other payable 797,807 1,992,909 Deposits 927,576 Unearned revenue 210,000 171,504 Total Liabilities 7,971,543 100 3,221,955 FUND BALANCE Fund Balances (Note 6): Nonspendable 4,099 Restricted 16,354,141 3,225,194 26,000,000 $4,144,279 $24,490,310 Committed 12,372,202 Assigned 5,431,178 250,442 Unassigned 41,597,381 Total Fund Balances (Deficits)75,759,001 3,225,194 26,250,442 4,144,279 24,490,310 Total Liabilities and Fund Balances (Deficits) $83,730,544 $3,225,294 $29,472,397 $4,144,279 $24,490,310 See accompanying notes to basic financial statements 36 Capital Projects Funds Capital Capital Capital Other Total Child Care Developer Infrastructure Improvement Improvement Governmental Governmental Impact Fees Deposit Reserve Police Station Civic Campus Funds Funds $6,770,214 $25,813,755 $2,941,651 $66,875,936 $191,118,568 670,805 13,471,007 18,112 80,865 146,082 503,082 62,516 704,966 1,419,000 4,099 $11,651,459 78,660,144 9,185 116,473,585 16,354,141 $6,788,326 $25,894,620 $11,651,459 $81,601,795 $68,406,974 $339,405,998 $2,602,531 $2,941,651 $443,737 $10,246,480 2,835,241 2,260,280 685,011 661,368 6,397,375 2,613,681 3,541,257 5,879,471 6,260,975 4,862,811 3,626,662 9,598,257 29,281,328 4,099 $6,788,326 6,788,648 77,975,133 58,808,717 224,574,748 12,372,202 $25,894,620 31,576,240 41,597,381 6,788,326 25,894,620 6,788,648 77,975,133 58,808,717 310,124,670 $6,788,326 $25,894,620 $11,651,459 $81,601,795 $68,406,974 $339,405,998 37 CITY OF SOUTH SAN FRANCISCO GOVERNMENTAL FUNDS BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES JUNE 30, 2021 Total fund balances reported on the governmental funds balance sheet $310,124,670 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. 378,171,535 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. 24,842,774 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 (160,575,541) Interest payable (424,820) Deferred outflows related pension 25,259,482 Deferred outflows related to OPEB 5,948,833 Net OPEB liability (57,935,336) Net pension liability (184,769,905) Deferred inflows related to OPEB (1,418,330) Deferred inflows related to pension (136,968) Non-current portion of compensated absences (6,978,626) Net position of governmental activities $332,107,768 See accompanying notes to financial statements 38 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, 2021 Capital Projects Funds Low and Moderate East of 101 General Income Capital Sewer Traffic Fund Housing Assets Improvement Impact Fees Impact Fees REVENUES Property taxes $44,239,406 Sales taxes 32,749,447 Transient occupancy taxes 6,710,271 Franchise Fees 4,498,202 Other taxes 4,529,764 Intergovernmental 4,323,151 $1,406,253 Interest and rentals 3,063,987 $178,385 $8,886 $44,479 Licenses and permits 15,589,002 Charges for services 6,518,254 144,241 443,483 1,962,094 Fines and forfeitures 535,750 Other 731,752 Total Revenues 123,488,986 178,385 1,550,494 452,369 2,006,573 EXPENDITURES Current: City Council 224,257 City Clerk 956,698 City Treasurer 38,705 City Attorney 987,044 City Manager 3,993,952 Finance 2,917,393 Non-departmental 1,336,201 1,850 Human Resources 1,654,369 Fire 31,817,325 Police 30,959,959 Public Works 5,731,652 22,098,648 1,850 Parks and Recreation 15,795,645 Library 5,903,883 Economic and Community Development 6,560,605 2,963,255 Other Debt service: Principal repayments Interest and fiscal charges Total Expenditures 108,877,688 2,963,255 22,098,648 1,850 1,850 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 14,611,298 (2,784,870)(20,548,154)450,519 2,004,723 OTHER FINANCING SOURCES (USES) Loss on sale of property (818,692) Issuance of debt 21,470,859 Bond premium 4,529,141 Transfers in (Note 4B)2,272,021 20,562,947 Transfers out (Note 4B)(24,041,188)(1,714,080)(2,530,159) Total Other Financing Sources (Uses)(22,587,859)46,562,947 (1,714,080)(2,530,159) Net Change in Fund Balances before special items (7,976,561)(2,784,870) 26,014,793 (1,263,561)(525,436) SPECIAL ITEMS Remittance of land sale proceeds (1,378,533) Net Change in Fund Balances (9,355,094)(2,784,870) 26,014,793 (1,263,561)(525,436) Fund balances (deficits) - July 1 85,114,095 6,010,064 235,649 5,407,840 25,015,746 Fund balances (deficits) - June 30 $75,759,001 $3,225,194 $26,250,442 $4,144,279 $24,490,310 See accompanying notes to financial statements 40 Capital Projects Funds Capital Capital Capital Other Total Child Care Developer Infrastructure Improvements Improvements Governmental Governmental Impact Fees Deposit Reserve Police Station Civic Campus Funds Funds $2,210,329 $46,449,735 751,698 33,501,145 6,710,271 4,498,202 1,769,050 6,298,814 12,137,869 17,867,273 $12,236 $890 $54,022 $117,606 139,900 3,620,391 15,589,002 629,882 250,000 13,243,459 23,191,413 535,750 7,161,396 7,893,148 642,118 890 304,022 117,606 37,413,701 166,155,144 224,257 956,698 38,705 987,044 3,993,952 2,917,393 1,850 1,339,901 1,654,369 31,817,325 39,933,467 60,897 70,954,323 672,521 $12,444,256 10,552,327 51,501,254 15,795,645 5,903,883 1,703,643 11,227,503 3,490,091 3,490,091 975,000 975,000 475,260 1,832,200 2,307,460 1,850 672,521 39,933,467 12,919,516 18,614,158 206,084,803 640,268 890 (368,499) (39,815,861) (12,919,516)18,799,543 (39,929,659) (1,899,999)(2,718,691) 64,939,141 86,410,000 13,587,424 18,116,565 12,368,084 2,767,200 37,970,252 (37,150) (17,678)(3,100,805)(11,761,021) (43,202,081) (37,150) (17,678)(3,100,805)90,894,649 (10,893,820)96,576,045 603,118 (16,788)(3,469,304) (39,815,861) 77,975,133 7,905,723 56,646,386 (1,378,533) 603,118 (16,788)(3,469,304) (39,815,861) 77,975,133 7,905,723 55,267,853 6,185,208 16,788 29,363,924 46,604,509 50,902,994 254,856,817 $6,788,326 $25,894,620 $6,788,648 $77,975,133 $58,808,717 $310,124,670 41 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, 2021 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $55,267,853 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 90,966,379 Current year depreciation (8,581,603) 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. Proceeds from issuance of bonds (86,410,000) Bond premium (18,116,565) Repayment of principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities. Repayment of principal is added back to fund balance 975,000 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 (272,237) Compensated absences (559,402) Net pension liability, deferred outflows and inflows of resources (6,449,922) Net OPEB liability, deferred outflows and inflows of resources (1,073,433) 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.1,324,875 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $27,450,298 See accompanying notes to financial statements The amount below included in the Statement of Activities does not require the use 42 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, 2021 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes $41,595,650 $43,051,499 $44,239,406 $1,187,907 Sales taxes 29,608,000 31,208,000 32,749,447 1,541,447 Transient occupancy taxes 7,872,437 5,904,328 6,710,271 805,943 Franchise fees 4,600,000 4,600,000 4,498,202 (101,798) Other taxes 3,118,206 3,118,206 4,529,764 1,411,558 Intergovernmental 2,222,769 3,260,631 4,323,151 1,062,520 Interest and rentals 3,827,794 3,827,794 3,063,987 (763,807) Licenses and permits 14,995,496 14,995,498 15,589,002 593,504 Charges for services 8,011,656 7,061,654 6,518,254 (543,400) Fines and forfeitures 789,249 789,249 535,750 (253,499) Other 175,341 175,341 731,752 556,411 Amounts available for appropriation 116,816,598 117,992,200 123,488,986 5,496,786 Charges to appropriations (outflows): City Council 284,561 284,561 224,257 60,304 City Clerk 1,096,594 1,096,593 1,016,698 79,895 City Treasurer 145,524 145,525 38,705 106,820 City Attorney 910,049 910,049 987,044 (76,995) City Manager 2,163,106 5,459,829 6,214,173 (754,344) Finance 3,239,292 3,639,551 3,442,495 197,056 Non-departmental 1,044,277 1,737,423 1,366,323 371,100 Human Resources 1,779,644 2,031,504 1,889,976 141,528 Fire 29,978,036 31,010,490 32,023,646 (1,013,156) Police 31,882,490 32,020,244 30,984,959 1,035,285 Public Works 5,774,064 5,856,707 5,973,424 (116,717) Parks and Recreation 15,654,905 16,024,167 15,978,135 46,032 Library 6,048,132 6,245,898 5,903,883 342,015 Economic and Community Development 7,205,824 9,606,747 8,415,150 1,191,597 Total charges to appropriations 107,206,498 116,069,288 114,458,868 1,610,420 OTHER FINANCING SOURCES (USES) Loss from sale of capital assets (818,692) (818,692) Transfers in (Note 4B) 1,314,915 2,323,871 2,272,021 (51,850) Transfers out (Note 4B) (8,443,371) (41,616,511) (24,041,188) 17,575,323 Total Other Financing Sources (Uses) (7,128,456) (39,292,640) (22,587,859) 16,704,781 2,481,644 (37,369,728) (13,557,741) 23,811,987 SPECIAL ITEM Remittance of land sale proceeds (1,378,533) (1,378,533) NET CHANGE IN FUND BALANCE $2,481,644 ($37,369,728) (14,936,274) $22,433,454 Fund Balance - July 1 85,114,095 Adjustment to budgetary basis: Encumbrance adjustments 5,581,180 Fund Balance - June 30 $75,759,001 See accompanying notes to financial statements Budgeted Amounts NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM 43 Variance with Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest and rental $167,000 $167,000 $178,385 $11,385 Other 140,000 140,000 (140,000) Total Revenues 307,000 307,000 178,385 (128,615) EXPENDITURES: Current: Economic and Community Development 543,400 3,482,860 2,974,405 508,455 Total Expenditures 543,400 3,482,860 2,974,405 508,455 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (236,400) (3,175,860) (2,796,020) 379,840 NET CHANGE IN FUND BALANCE ($236,400) ($3,175,860) (2,796,020) $379,840 Fund balance - July 1 6,010,064 Adjustment to budgetary basis: Encumbrance adjustments 11,150 Fund balance - June 30 $3,225,194 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, 2021 Budgeted Amounts 44 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. 45 CITY OF SOUTH SAN FRANCISCO PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2021 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)$25,660,505 $3,593,736 $990,117 $30,244,358 $37,943,084 Receivables: Accounts 2,902,339 4,875,095 7,777,434 31,027 Accrued interest 55,441 10,517 5,533 71,491 102,980 Deposits 309,790 Restricted cash and investments (Note 2)339,031 339,031 Total current assets 28,957,316 3,604,253 5,870,745 38,432,314 38,386,881 Noncurrent assets: Capital assets (Note 3): Nondepreciable 61,706,481 421,149 7,599,370 69,727,000 Depreciable, net accumulated depreciation 105,329,860 9,764,615 1,612,926 116,707,401 4,952,737 Total non-current assets 167,036,341 10,185,764 9,212,296 186,434,401 4,952,737 Total Assets 195,993,657 13,790,017 15,083,041 224,866,715 43,339,618 DEFERRED OUTFLOWS OF RESOURCES Related to pension (Note 7)2,806,609 2,806,609 Related to OPEB (Note 9)660,981 660,981 Total Deferred Outflows of Resources 3,467,590 3,467,590 LIABILITIES Current liabilities: Accounts payable 1,738,466 158,018 2,571,695 4,468,179 387,555 Other payable 837,388 1,023,009 1,860,397 17,816 Accrued interest payable 304,993 304,993 Deposits payable 7,500 7,500 Unearned revenue 33,027 33,027 Accrued insurance loss (Note 11)2,878,797 Compensated absences obligation (Note 1L)506,487 6,577 9,098 522,162 834,623 Current portion of long-term debt (Note 5)5,173,954 5,173,954 140,892 Total current liabilities 8,601,815 164,595 3,603,802 12,370,212 4,259,683 Noncurrent liabilities: Accrued insurance losses (Note 11)12,871,000 Compensated absences obligation (Note 1L)339,656 15,177 354,833 1,221,524 Noncurrent portion of long-term debt (Note 5)57,631,505 57,631,505 144,637 Net OPEB liability (Note 9)6,437,260 6,437,260 Net pension liability (Note 7)20,529,990 20,529,990 Total noncurrent liabilities 84,938,411 15,177 84,953,588 14,237,161 Total Liabilities 93,540,226 179,772 3,603,802 97,323,800 18,496,844 DEFERRED INFLOWS OF RESOURCES Related to pension (Note 7)15,219 15,219 Related to OPEB (Note 9)157,592 157,592 Total Deferred Inflows of resources 172,811 172,811 NET POSITION: Net investment in capital assets 104,230,882 10,185,764 9,212,296 123,628,942 4,667,208 Unrestricted (deficit)1,517,328 3,424,481 2,266,943 7,208,752 20,175,566 Total Net Position $105,748,210 $13,610,245 $11,479,239 $130,837,694 $24,842,774 See accompanying notes to financial statements 46 CITY OF SOUTH SAN FRANCISCO PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2021 Governmental Business-type Activities - Enterprise Funds Activities Sewer Parking Storm Internal Enterprise District Water Total Service Funds OPERATING REVENUES Charges for services $24,526,952 $410,145 $24,937,097 $28,237,878 Other cities' participation 9,138,461 9,138,461 Permit fees 178,092 178,092 Parking fees $764,514 764,514 Total Operating Revenues 33,843,505 764,514 410,145 35,018,164 28,237,878 OPERATING EXPENSES Personnel expenses 10,800,247 344,617 767,141 11,912,005 17,994,279 Professional services 2,681,904 515,795 37,055 3,234,754 756,217 OPEB Expenses 535,039 97 535,136 Program supplies 1,541,503 62,940 1,604,443 1,589,359 Insurance 210,870 3,698 214,568 2,223,844 Self-insurance and claims 2,772,644 Repair and maintenance 1,399,356 24,433 1,423,789 574,598 Rents and leases 1,689,059 1,689,059 Utilities 1,459,453 86,732 11,533 1,557,718 126,172 Administration 1,034,931 74,679 27,669 1,137,279 Depreciation 4,667,580 253,232 46,028 4,966,840 922,865 Other 48,970 4,500 53,470 483,302 Total Operating Expenses 26,068,912 1,338,092 922,057 28,329,061 27,443,280 Operating Income (Loss)7,774,593 (573,578) (511,912) 6,689,103 794,598 NONOPERATING REVENUES (EXPENSES) Interest income 41,888 6,994 3,741 52,623 70,583 Gain on dispositions of capital assets 1,389 Loss from dispositions of capital assets (20,006) Interest expense (575,547)(575,547)(11,585) Subventions and grants 5,676,999 5,676,999 Other 600 600 242,813 Total Nonoperating Revenues (Expenses)(533,659)6,994 5,681,340 5,154,675 283,194 Income (loss) before transfers 7,240,934 (566,584) 5,169,428 11,843,778 1,077,792 TRANSFERS Transfers in (Note 4C)4,052,198 934,632 4,986,830 250,000 Transfers (out) (Note 4C)(2,084)(2,084)(2,917) Change in Net Position 11,293,132 (568,668) 6,104,060 16,828,524 1,324,875 Net Position (Deficits) - July 1 94,455,078 14,178,913 5,375,179 114,009,170 23,517,899 Net Position (Deficits) - June 30 $105,748,210 $13,610,245 $11,479,239 $130,837,694 $24,842,774 See accompanying notes to financial statements 47 CITY OF SOUTH SAN FRANCISCO PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2021 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 $32,873,383 $764,514 ($4,656,028) $28,981,869 Cash payments to suppliers for goods and services (12,540,984) (598,271) (224,444) (13,363,699) ($5,396,149) Cash payments to employees for services (9,829,507) (344,401) (774,378) (10,948,286) (18,134,977) Cash received from interfund service provided 28,447,341 Cash payments for judgments and claims (1,988,071) Net Cash Provided by (Used in) Operating Activities 10,502,892 (178,158) (5,654,850) 4,669,884 2,928,144 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Subventions and grants 5,676,999 5,676,999 Transfers in 4,052,198 934,632 4,986,830 250,000 Transfers in (2,084)(2,084)(2,917) Net Cash Provided by Noncapital Financing Activities 4,052,198 (2,084) 6,611,631 10,661,745 247,083 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from issuance of debt 15,038,527 15,038,527 Principal paid on long-term debt (5,038,675)(5,038,675)(204,252) Interest paid on long-term debt (667,827)(667,827)(11,585) Acquisition of capital assets, net (20,941,033)(2,096,893) (23,037,926)(574,701) Proceeds from the sale of capital assets 16,509 Net Cash Used in Capital and Related Financing Activities (11,609,008)(2,096,893) (13,705,901)(774,029) CASH FLOWS FROM INVESTING ACTIVITIES Interest received (143,588)(25,955)(13,681) (183,224)(262,602) Changes in fair value of investments 209,996 39,836 20,958 270,790 390,064 Net Cash Provided by Investing Activities 66,408 13,881 7,277 87,566 127,462 Net Increase (Decrease) in cash and cash equivalents 3,012,490 (166,361) (1,132,835) 1,713,294 2,528,660 Cash and cash equivalents, beginning 22,987,046 3,760,097 2,122,952 28,870,095 35,414,424 Cash and cash equivalents, ending $25,999,536 $3,593,736 $990,117 $30,583,389 $37,943,084 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss)$7,774,593 ($573,578) ($511,912) $6,689,103 $794,598 Adjustments to reconcile operating income (loss) to cash flows from operating activities: Depreciation 4,667,580 253,232 46,028 4,966,840 922,865 Other non-operating revenue (expenses)600 600 242,813 Net change in assets and liabilities: Accounts and lease receivables (970,122)(4,861,470) (5,831,592)(13,350) Deposit (20,000) Prepaid items 1,074,537 Accounts payable (1,046,642) 142,038 (115,557) (1,020,161)(838,200) Other payable (893,257)(66)1 (893,322)(156,843) Unearned revenue (205,303) (205,303) Accrued insurance losses 784,573 (Decrease) increase due to OPEB 119,271 119,271 Compensated absence obligations 134,810 216 (7,237) 127,789 137,151 (Decrease) increase due to retirement system 716,659 716,659 Net Cash Provided by (Used in) Operating Activities $10,502,892 ($178,158) ($5,654,850) $4,669,884 $2,928,144 NONCASH TRANSACTIONS Retirement of capital assets ($35,126) See accompanying notes to basic financial statements 48 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 CUSTODIAL FUND This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on behalf of City employees. 49 Custodial Fund Successor SSF Employee Agency Deferred Comp Private Purpose Trust Trust Fund Oversight ASSETS Cash and investments (Note 2) $4,347,412 $129,827 Accounts receivable 3,071 Interest receivable 17,033 342 Prepaid items 25,601 Advances to the City (Note 5) 3,595,152 Loans receivable (Note 13B) 96,796 Restricted cash and investments (Note 2) 25,420,934 Capital assets (Note 13C): Nondepreciable 111,219 Depreciable, net accumulated depreciation 244,718 Total Assets 33,861,936 130,169 NET POSITION Held in trust for other purposes $33,861,936 Restricted for others $130,169 See accompanying notes to financial statements CITY OF SOUTH SAN FRANCISCO STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2021 50 CITY OF SOUTH SAN FRANCISCO FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2020 Custodial Fund Successor SSF Employee Agency Deferred Comp Private Purpose Trust Trust Fund Oversight ADDITIONS Intergovernmental $1,816,900 Plan contributions $32,081 Interest and rentals 56,662 238 Total Additions 1,873,562 32,319 DEDUCTIONS Economic and Community Development 13,701,211 Professional services 7,900 Depreciation 6,593 Total Deductions 13,707,804 7,900 Change in net position (11,834,242)24,419 NET POSITION HELD IN TRUST OR RESTRICTED FOR OTHER PURPOSES Beginning of the year, as restated (Note 1T)45,696,178 105,750 End of the year $33,861,936 $130,169 See accompanying notes to financial statements 51 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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. 53 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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. 54 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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. 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 and other areas within the City. 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, and pay the costs incurred in connection with the issuance of the Series 2020A Bonds. 55 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Improvement Civic Campus – Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting 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 2021A Bonds. 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 – A custodial fund is used to account for assets held by the City for the SSF Employee Deferred Comp Trust Oversight Fund, which is outside of the City’s reporting entity. 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, fiduciary, 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. 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. 56 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue. Other receipts and taxes are recognized as revenue when the cash is received. Non-exchange transactions, in which the City gives or receives value without directly, receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenue. Thus, both restricted and unrestricted net position may be made available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. The City considers restricted shared state revenues such as gasoline taxes and public safety sales taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits, charges for services, and program grants as program revenues. 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, except the American Recovery Plan Act Special Revenue Fund, Developer Contributions Special Revenue Fund, Supplemental Law Enforcement Services Special Revenue Fund, City Programs Special Revenue Fund, and Affordable Housing Trust Special Revenue; 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 and Commercial Linkage Impact Fee Capital Projects Fund; and Enterprise funds. The budget is adopted by the City Council and controlled at the department level for the General Fund and at the fund level or lower for all other funds with adopted budgets. From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The department heads may authorize transfers within one object category within the same department within a fund. The City Manager may authorize transfers between object categories and departments within a fund. 57 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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, 2021. Encumbrance accounting, under which, purchase orders, contracts and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Encumbrances are reappropriated in the following year. The budgetary comparison statements present comparisons of the legally adopted budget with actual charges to appropriations on a budgetary basis. In order to provide a meaningful comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that differs significantly from those used to present financial statements in conformity with generally accepted accounting principles. Certain indirect costs are included in program expenses reported for individual functions and activities. 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, 2021: Expenditures in Excess of Budget (Non GAAP Legal Basis) General Fund: City Attorney $76,995 City Manager 754,344 Fire 1,013,156 Public Works 116,717 Capital Improvements Civic Campus Capital Projects Fund 161,364 Solid Waste Reduction Special Revenue Fund 27,301 Sufficient resources were available within each fund to finance these excesses. 58 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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. 59 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The changes of the compensated absences were as follows: Governmental Business-Type Activities Activities Total Beginning Balance $8,338,220 $749,206 $9,087,426 Additions 5,860,424 720,793 6,581,217 Payments (5,163,871) (593,004) (5,756,875) Ending Balance $9,034,773 $876,995 $9,911,768 Current Portion $4,612,735 $522,162 $5,134,897 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. 60 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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, Closed and Renamed Funds In fiscal year 2020-2021, the City established the following funds: The Capital Improvements Civic Campus Capital Projects Fund is used to account for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting 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 2021A Bonds. The American Rescue Plan Act Special Revenue Fund is used to account for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal government’s response to the impacts of the COVID-19 pandemic. 61 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Federal Aviation Grants Special Revenue Fund, Developer Deposit Capital Projects Fund, Non-obligated Capital Projects Fund were closed as of June 30, 2021. The East of 101 Traffic Impact Fees Capital Projects Fund was renamed to the Traffic Impact Fees Capital Projects Fund. T. New Accounting Pronouncement In January 2017, GASB issued GASB Statement No. 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The provisions of this Statement were implemented during fiscal year 2021. As part of the implementation of this Statement, it was determined that the SSF Employee Deferred Comp Trust Oversight Fund, formerly reported as an Agency Fund, be accounted for and reported as a Custodial Fund, which required the restatement of beginning net position of the fund in the amount of $105,750. 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, 2021 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. 62 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 2 - CASH AND INVESTMENTS (Continued) Financial Statement Presentation: Statement of Net Position: City of South San Francisco: Cash and investments available for operations $259,306,010 Restricted cash and investments 116,812,616 Total Primary Government cash and investments 376,118,626 Statement of Fiduciary Assets: Cash and investments available for operations 4,477,239 Restricted cash and investments 25,420,934 Total Fiduciary cash and investments 29,898,173 Conference Center: Cash and investments available for operations 3,322,418 Total South San Francisco Conference Center cash and investments 3,322,418 Total cash and investments $409,339,217 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 63 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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 Federal Agency or U.S. Government Sponsored Enterprise Obligations N/A N/A No Limit Federal Housing Administration Debentures N/A N/A No Limit Bankers Acceptances 30 days A-1 or A-2 No Limit Commercial Paper 270 days A1,P1 No Limit Negotiable Certificates of Deposit 5 years A-1 or A No Limit Guaranteed Investment Agreements N/A A1,P1 No Limit Municipal Obligations N/A Aaa No Limit State Obligations N/A A2 No Limit Money Market Mutual Funds N/A AAAm No Limit Repurchase Agreements 90 days AA No Limit Local Agency Investment Fund (LAIF) Upon Demand N/A No Limit 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. 64 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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 $11,782,745 $45,345,470 $57,128,215 Federal Agency Securities 4,478,162 52,542,612 57,020,774 Local Agency Investment Fund 78,574,384 78,574,384 Money Market Funds 23,227,570 23,227,570 Corporate Medium Term Notes 5,846,426 29,679,785 35,526,211 Negotiable Certificates of Deposit 4,499,904 4,499,904 Asset-Backed Securities 1,661,088 20,931,654 22,592,742 Supranational Obligations 3,057,219 7,206,371 10,263,590 South San Francisco Conference Center: Local Agency Investment Fund 2,904,202 2,904,202 Total Investments $136,031,700 $155,705,892 291,737,592 Cash in Banks and on Hand - City of South San Francisco 117,183,409 Cash in Banks and on Hand - South San Francisco Conference Center 418,216 Total Cash and Investments $409,339,217 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, 2021, these investments have an average maturity of 291 days. Money market funds are available for withdrawal on demand and as of June 30, 2021 have an average maturity of 25 days. 65 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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, 2021, 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 P-1 Total City and Fiduciary: Federal Agency Securities $57,020,774 $57,020,774 Money Market Funds $23,227,570 23,227,570 Corporate Medium Term Notes 715,168 $2,820,760 $31,990,283 35,526,211 Negotiable Certificates of Deposit $4,499,904 4,499,904 Asset-Backed Securities 13,869,001 13,869,001 Supranational Obligations 10,263,590 10,263,590 Totals $81,868,533 23,227,570$ 2,820,760$ 31,990,283$ 4,499,904$ 144,407,050 City and Fiduciary: Not rated: Federal Agency Securities Asset-Backed Securities 8,723,741 Local Agency Investment Fund 78,574,384 Exempt from credit rating disclosure: U.S. Treasury Notes 57,128,215 Not rated: Local Agency Investment Fund 2,904,202 Total Investments $291,737,592 South San Francisco Conference Center: H.Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. As of June 30, 2021, the book value of the City’s cash with banks and petty cash was $117,183,409 and the associated bank balances were $119,581,015. Of the City’s bank balance, $103,801,305 was exposed to custodial credit risk, because it was not FDIC insured or collateralized by securities as noted in Note 2A above. I.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, 2021: Issuer Investment Type Amount Federal National Mortgage Association Federal Agency Securities $23,979,080 Federal Home Loan Mortgage Corporation Federal Agency Securities 25,131,510 66 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 2 - CASH AND INVESTMENTS (Continued) J. 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, 2021: Level 2 Total Investments by Fair Value Level: City and Fiduciary: U.S. Treasury Notes $57,128,215 $57,128,215 Federal Agency Securities 57,020,774 57,020,774 Corporate Medium Term Notes 35,526,211 35,526,211 Negotiable Certificates of Deposit 4,499,904 4,499,904 Asset Backed Securities 22,592,742 22,592,742 Supranational Obligations 10,263,590 10,263,590 Totals $187,031,436 187,031,436 Investments Measured at Amortized Cost: City and Fiduciary: Money Market Mutual Funds 23,227,570 Investments Exempt from Fair Value Hierarchy: City and Fiduciary: Local Agency Investment Fund 78,574,384 South San Francisco Conference Center: Local Agency Investment Fund 2,904,202 Total Investments $291,737,592 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. 67 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 3 - CAPITAL ASSETS A.Capital Asset Changes – Changes in capital assets during the fiscal year consist of: Balance 6/30/2020 Additions and Adjustments Retirements and Adjustments Transfers Balance 6/30/2021 Governmental activities Capital assets not being depreciated: Land $66,729,001 $66,729,001 Construction in Progress 71,235,808 $90,966,379 ($1,825,318) 160,376,869 Total capital assets not being depreciated 137,964,809 90,966,379 (1,825,318) 227,105,870 Capital assets being depreciated: Buildings and Improvements 96,271,652 1,098,986 97,370,638 Infrastructure - Streets 200,138,942 726,332 200,865,274 Infrastructure - Storm Drains 8,927,492 8,927,492 Infrastructure - Traffic Control Devices 12,591,370 12,591,370 Equipment and Vehicle 7,407,729 ($17,130) 7,390,599 Furniture and Fixtures 2,614,215 2,614,215 Total capital assets being depreciated 327,951,400 (17,130) 1,825,318 329,759,588 Less accumulated depreciation for: Buildings and Improvements (42,320,722) (2,557,003)(44,877,725) Infrastructure - Streets (111,465,285) (5,066,113)(116,531,398) Infrastructure - Storm Drains (3,775,561) (204,500)(3,980,061) Infrastructure - Traffic Control Devices (4,216,790) (512,448)(4,729,238) Equipment and Vehicle (6,554,620) (146,503)17,130 (6,683,993) Furniture and Fixtures (1,796,472) (95,036)(1,891,508) Total accumulated depreciation (170,129,450) (8,581,603)17,130 (178,693,923) Net Governmental Fund Capital Assets Being Depreciated 157,821,950 (8,581,603)1,825,318 151,065,665 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 17,004,543 214,019 (160,654) 80,951 17,138,859 Accumulated depreciation (11,388,785) (922,865) 125,528 (12,186,122) Net Internal Service Fund Capital Assets Being Depreciated 5,615,758 (708,846) (35,126) 80,951 4,952,737 Governmental activities capital assets, net $301,483,468 $81,675,930 ($35,126)$383,124,272 Total capital assets not being depreciated $138,045,760 $90,966,379 ($1,906,269) $227,105,870 Net capital assets being depreciated 163,437,708 (9,290,449) ($35,126)1,906,269 156,018,402 Governmental activities capital assets, net $301,483,468 $81,675,930 ($35,126)$383,124,272 68 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 3 - CAPITAL ASSETS (Continued) Balance Balance June 30, 2020 Additions Retirements Transfers June 30, 2021 Business-type activities Capital assets, not being depreciated: Land $794,587 $794,587 Construction in Progress 55,402,308 $26,627,306 ($13,097,201) 68,932,413 Total capital assets not being depreciated 56,196,895 26,627,306 (13,097,201) 69,727,000 Capital assets being depreciated: Buildings and Improvements 67,075,858 13,097,201 80,173,059 Clean Water Facilities and Lines 79,862,094 79,862,094 Infrastructure - Storm Drains 6,216,365 6,216,365 Infrastructure - Streets 7,377,546 7,377,546 Equipment and Vehicle 18,470,728 ($15,182)18,455,546 Furniture and Fixtures 31,154 31,154 Total capital assets being depreciat ed 179,033,745 (15,182)13,097,201 192,115,764 Less accumulated depreciation for: Buildings and Improvements (20,981,917) (1,834,131)(22,816,048) Clean Water Facilities and Lines (33,091,933) (1,962,279)(35,054,212) Infrastructure - Storm Drains (1,382,750) (187,982)(1,570,732) Infrastructure - Streets (2,259,831) (209,570)(2,469,401) Equipment and Vehicle (12,709,120) (772,878) 15,182 (13,466,816) Furniture and Fixtures (31,154)(31,154) Total accumulated depreciation (70,456,705) (4,966,840) 15,182 (75,408,363) Net capital assets being depreciated 108,577,040 (4,966,840)13,097,201 116,707,401 Business-type activities capital assets, net $164,773,935 $21,660,466 $186,434,401 Balance Balance June 30, 2020 Additions Retirements June 30, 2021 Component Unit: South San Francisco Conference Center Construction in Progress $77,670 ($77,670) Buildings and Improvements 10,909,288 $10,909,288 Furniture and Fixtures 950,814 950,814 Machinery and Equipment 479,698 $103,024 582,722 Total 12,417,470 103,024 (77,670) 12,442,824 Less accumulated depreciation (9,306,201) (598,637)(9,904,838) Component Unit Capital Assets, Net $3,111,269 ($495,613) ($77,670) $2,537,986 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. 69 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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 $742,137 Fire 333,069 Police 101,676 Public works 6,730,394 Parks and recreation 546,691 Library 76,027 Economic and community development 51,609 Total Governmental Functions 8,581,603 Internal Service Funds 922,865 Total Governmental Activities $9,504,468 Business-Type Activities Sewer Enterprise $4,667,580 Parking District 253,232 Storm Water 46,028 Total Business-Type Activities $4,966,840 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. 70 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 4 - INTER-FUND TRANSACTIONS (Continued) B.Transfers Transfers between funds during the fiscal year ended June 30, 2021 were as follows: FROM FUND (OUT) TO FUND (IN)AMOUNT General Fund Capital Improvements Capital Projects Fund $8,405,904 Capital Improvements Civic Campus Capital Projects Fund 12,368,084 Storm Water Enterprise Fund 250,000 Non-Major Governmental Funds 2,767,200 Internal Service Fund 250,000 East of 101 Sewer Impact Fees Capital Project Fund Sewer Enterprise Fund 1,714,080 Traffic Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 2,530,159 Child Care Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 37,150 Developer Deposit Capital Projects Fund General Fund 17,678 Capital Infrastructure Reserve Capital Projects Fund Capital Improvement Capital Projects Fund 3,100,805 Non-Major Governmental Funds General Fund 2,254,343 Capital Improvement Capital Projects Fund 6,483,928 Sewer Enterprise Fund 2,338,118 Storm Water Enterprise Fund 684,632 Parking District Enterprise Fund Capital Improvement Capital Projects Fund 2,084 Internal Service Fund Capital Improvement Capital Projects Fund 2,917 Total $43,207,082 71 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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, 2021 follows: Authorized and Balance at Balance at Current Issued June 30, 2020 Additions Retirement June 30, 2021 Portion Governmental Activities Lease Revenue Bonds: 2020A Police Station Project, 4.00 to 5.00% (1)$43,905,000 $43,905,000 $935,000 $42,970,000 $980,000 Plus: Unamortized bond premium 9,863,177 379,353 9,483,824 2021A Community Civic Campus Project, 4.00% (2)86,410,000 $86,410,000 86,410,000 2,210,000 Plus: Unamortized bond premium 18,116,565 18,116,565 Total Lease Revenue Bonds 130,315,000 53,768,177 104,526,565 1,314,353 156,980,389 3,190,000 Direct Borrowing: 2007 Loans Payable to the Successor Agency (3) 3,635,152 40,000 3,595,152 Capital Leases (4): 2010 Two Fire Trucks 67,006 67,006 2013 Fire Truck 422,775 137,246 285,529 140,892 Total Capital Leases 489,781 204,252 285,529 140,892 Total Direct Borrowing 4,124,933 244,252 3,880,681 140,892 Net Governmental Long-Term Debt $130,315,000 $57,893,110 $104,526,565 $1,558,605 $160,861,070 $3,330,892 Business-Type Activities Revenue Bonds: 2005 Water and Wastewater Revenue Bonds, 2.75 to 4.75%, $6,000,000 $2,655,000 $330,000 $2,325,000 $345,000 due 04/30/26 (5) Direct Borrowing: 1999 State Water Resources Loan, 2.6%, due 8/1/22 (6)47,721,252 9,330,903 3,030,817 6,300,086 3,109,618 2004 State Water Resources Loan, 2.5%, due 1/1/27 (6)21,258,529 7,722,677 1,208,985 6,513,692 1,239,209 2008 State Water Resources Loan, 2.4%, (7)9,164,505 4,648,492 468,873 4,179,619 480,127 2018 State Water Resources Loan, 1.8% (8)53,403,000 28,448,535 $15,038,527 43,487,062 Total Direct Borrowing 131,547,286 50,150,607 15,038,527 4,708,675 60,480,459 4,828,954 Net Business-Type Long-Term Debt $137,547,286 $52,805,607 $15,038,527 $5,038,675 $62,805,459 $5,173,954 (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. 72 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 5 - LONG-TERM DEBT (Continued) (2)2021A Lease Revenue Bonds – In May 2021, the City of South San Francisco Public Facilities Financing Authority entered into a $86.4 million lease agreement to finance costs of the acquisition, construction, and installation of certain capital improvements constituting a new City library, council chamber, parks and recreation facilities, and a community theater to be located within the City’s new Civic Center Campus, street and roadway improvements located within the City, solar equipment to be located on City property, and related improvements, facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds. The Series 2021A 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 the same City-owned parking garage and City-owned park pledged under the 2020A Bonds and six additional properties, including the property on which the first two phases of the Community Civic Campus project is being constructed. 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. (3) As of June 30, 2021, 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 $3,595,152 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. 73 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 5 - LONG-TERM DEBT (Continued) (4) 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. (5) On October 25, 2005, the California Statewide Communities Development Authority issued 2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale and the City’s portion of 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 $13.3 million which represented coverage of 2.6 over the $5,124,491 in total debt service. (6) 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. (7)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. 74 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 5 - LONG-TERM DEBT (Continued) (8)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. As of June 30,2021, the City has drawn down $43.5 million from SWRCB, with the remaining balance of $9.9 million expected to be drawn down in fiscal year 2022. There was no debt service payment required in fiscal year 2021, 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 $24.5 million which represented coverage of 45.9 over the $533,952 in debt service. 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 Lease Revenue Bonds 2005 Water and Wastewater Revenue Bonds Ended June 30 Principal Interest Principal Interest 2022 $3,190,000 $5,097,833 $345,000 $106,331 2023 3,185,000 5,104,450 360,000 90,000 2024 3,320,000 4,966,750 375,000 71,625 2025 3,465,000 4,823,150 395,000 52,375 2026 3,615,000 4,673,200 415,000 32,125 2027-2031 20,475,000 20,960,700 435,000 10,875 2032-2036 24,920,000 16,510,800 2037-2041 30,320,000 11,111,400 2042-2046 36,890,000 4,542,600 129,380,000 $77,790,883 $2,325,000 $363,331 Plus: Unamortized bond premium 27,600,389 $156,980,389 75 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 5 - LONG-TERM DEBT (Continued) 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, 2021, were as follows: For the Year Governmental Activities Business-Type Activities Ended June 30 Principal Interest Principal Interest 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 1,895,761 64,842 2027-2031 1,660,955 46,874 Totals 285,529 $9,484 16,993,397 $1,013,920 2007 Loans Payable 3,595,152 2018 State Water Resources Loan 43,487,062 $3,880,681 $60,480,459 Direct Borrowings 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, 2021, that amount was $870,065,495. As of June 30, 2021, the City did not have any outstanding debt applicable to the limit. 76 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 6 - NET POSITION AND FUND BALANCES A. Net Position Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position are divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below: Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. Unrestricted describes the portion of Net Position which is not restricted to use. B. Fund Balance The City’s fund balances are classified in accordance with 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. 77 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 6 - NET POSITION AND FUND BALANCE (Continued) Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. The City Council had delegated authority to the Finance Director to assign fund balances which are not otherwise restricted or committed. This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. Minimum Fund Balance Policies - The City’s Reserve Policy is to have the General Fund Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the general fund operating expenditures budget as well as an economic contingency which is 7% of general fund revenues. Funds in excess of these requirements will continue to be earmarked for paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits (OPEB) or for Infrastructure and Facilities Replacement needs. Detailed classifications of the City’s Fund Balances, as of June 30, 2021, are below: Low and Moderate 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 $4,099 Total Nonspendable Fund Balances 4,099 Restricted for: Sewer Impact Fees $4,144,279 Traffic impact fees projects $24,490,310 Civic campus projects $26,000,000 Low and moderate housing projects $3,225,194 Redevelopment and community development activities 16,354,141 Total Restricted Fund Balances 16,354,141 3,225,194 26,000,000 4,144,279 24,490,310 Committed for: Capital projects 4,451,157 Local services 7,921,045 Total Committed Fund Balances 12,372,202 Assigned to: Capital projects 5,431,178 250,442 Total Assigned Fund Balances 5,431,178 250,442 Unassigned: General fund 41,597,381 Total Unassigned Fund Balances 41,597,381 Total Fund Balances $75,759,001 $3,225,194 $26,250,442 $4,144,279 $24,490,310 Capital Project Funds 78 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 6 - NET POSITION AND FUND BALANCE (Continued) Capital Capital Capital Other Child Care Developer Infrastructure Improvements Improvements Governmental Fund Balance Classifications (continued) Impact Fees Deposit Reserve Fund Police Station Civic Campus Funds Restricted for: Child Care impact fees projects $6,788,326 Developer deposit fees projects Police station projects $6,788,648 Civic campus projects $77,975,133 Gas Tax projects $330,272 Developer contributions projects 6,444,901 Community Development Block Grant projects 108,386 Maintenance districts projects 4,816,402 Transportation sales tax projects 2,524,599 City programs projects 11,401,167 Other Special Revenues projects 6,588,671 Capital projects activities 26,594,319 Total Restricted Fund Balances 6,788,326 6,788,648 77,975,133 58,808,717 Assigned to: Capital infrastructure projects $25,894,620 Total Assigned Fund Balances 25,894,620 Total Fund Balances $6,788,326 $25,894,620 $6,788,648 $77,975,133 $58,808,717 Capital Project Funds 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, 2021, were as listed below: Governmental funds:Amount General Fund $5,581,180 Capital Improvement Capital Projects Fund 11,563,114 Capital Infrastructure Reserve Capital Projects Fund 963,000 Capital Improvements Police Station Capital Projects Fund 6,029,988 Capital Improvements Civic Campus Capital Projects Fund 2,241,848 Other Governmental Funds 1,769,105 Total $28,148,235 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. 79 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 7 - PENSION PLAN (Continued) A. General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2021, 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 10.277%10.277%10.277% Required Unfunded Actuarial Liability Contribution $5,845,814 *Effective July 2020, Classic Plan members in the Executive Management Unit were required to pay an additional 1% for their share of pension costs. 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 21.214%21.214%21.214% Required Unfunded Actuarial Liability Contribution $7,829,383 80 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 7 - PENSION PLAN (Continued) 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, 2021 were $5,845,814 and $7,829,383, respectively, which were made under the lump sum payment option. Employees Covered – As of the June 30, 2019 actuarial valuation date and the June 30, 2020 measurement date, the following employees were covered by the benefit terms for the Plans: Miscellaneous Safety Inactive employees or beneficiaries currently receiving benefits 473 291 Inactive employees entitled to but not yet receiving benefits 381 106 Active employees 290 163 Total 1,144 560 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, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 81 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 7 - PENSION PLAN (Continued) Actuarial Assumptions – The total pension liabilities as of the June 30, 2020 measurement date were based on the following actuarial 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) Actuarial assumptions are the same for all benefi tiers (Classic Tier 1, Classic Tier II, and PEPRA) (2) Depending on age, service and type of employment. (3) Net of pension plan investment expenses, including inflation. (4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017CalPERS Experience Study forthe period from1997to 2015. Pre-retirement and post-retirement mortality rates include 15years ofprojected mortality improvement using 90% ofScale MP-2016published by the Society of Actuaries. For more details on this table, please refer to the CalPERSExperience Study and Reviewof Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. 2.50% (2) 7.15% (3) 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 (4) 2.75% Miscellaneous and Safety (1) 6/30/2019 6/30/2020 Entry-Age Normal Cost Method 7.15% The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2019 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. 82 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 7 - PENSION PLAN (Continued) 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 rates 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 CalPERS's Comprehensive Annual Financial Reports, 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. 83 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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, 2019 (Measurement Date)$244,816,128 $163,510,764 $81,305,364 Changes in the year: Service cost 4,267,487 4,267,487 Interest on the total pension liability 17,306,781 17,306,781 Changes of benefit terms Chases of assumptions Differences between actual and expected experience 1,771,483 1,771,483 Plan to plan resource movement (32) 32 Contribution - employer 7,823,463 (7,823,463) Contribution - employees 1,883,698 (1,883,698) Net investment income 8,084,207 (8,084,207) Benefit payments, including refunds of employee contributions (13,336,957) (13,336,957) Administrative expenses (230,510) 230,510 Other Miscellaneous Income/(Expense) Net changes 10,008,794 4,223,869 5,784,925 Balance at June 30, 2020 (Measurement Date)$254,824,922 $167,734,633 $87,090,289 Safety Plan: Increase (Decrease) Total Pension Liability Plan Fiduciary Net Position Net Pension Liability/(Asset) Balance at June 30, 2019 (Measurement Date)$343,645,905 $231,869,470 $111,776,435 Changes in the year: Service cost 6,880,000 6,880,000 Interest on the total pension liability 24,284,010 24,284,010 Changes of benefit terms Chases of assumptions Differences between actual and expected experience 742,624 742,624 Plan to plan resource movement 32 (32) Contribution - employer 11,402,434 (11,402,434) Contribution - employees 2,890,991 (2,890,991) Net investment income 11,506,885 (11,506,885) Benefit payments, including refunds of employee contributions (16,384,059) (16,384,059) Administrative expenses (326,879) 326,879 Other Miscellaneous Income/(Expense) Net changes 15,522,575 9,089,404 6,433,171 Balance at June 30, 2020 (Measurement Date)$359,168,480 $240,958,874 $118,209,606 Grand Total - Both Plans $613,993,402 $408,693,507 $205,299,895 84 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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 $119,735,409 $166,899,641 Current Discount Rate 7.15% 7.15% Net Pension Liability $87,090,289 $118,209,606 1% Increase 8.15% 8.15% Net Pension Liability $60,053,403 $78,199,917 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, 2021, the City recognized pension expense of $11,032,435 and $17,164,451 for the Miscellaneous and Safety Plans, respectively, for total pension expense of $28,196,886. At June 30, 2021, 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 $8,616,536 Changes of assumptions Differences between actual and expected experience 1,930,792 Net differences between projected and actual earnings on plan investments 1,303,366 Total $11,850,694 $0 Safety Plan: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to measurement date $12,413,770 Changes of assumptions ($152,187) Differences between actual and expected experience 1,742,850 Net differences between projected and actual earnings on plan investments 2,058,777 Total $16,215,397 ($152,187) Grand Total $28,066,091 ($152,187) 85 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 7 - PENSION PLAN (Continued) $21,030,306 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, 2022. 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 2022 $762,512 2023 926,075 2024 856,702 2025 688,869 Safety Plan: Year Ended Annual June 30 Amortization 2022 $228,393 2023 1,116,594 2024 1,310,769 2025 993,684 E.Subsequent Event – Reduction of CalPERS Discount Rates In July 2021, CalPERS reported a preliminary 21.3% net return on investments for the 12-month period that ended June 30, 2021. Under the Funding Risk Mitigation Policy, approved by the CalPERS Board of Administration in 2015, the 21.3% net return will trigger a reduction in the discount rate used to calculate employer and Public Employees' Pension Reform Act (PEPRA) member contributions. The Funding Risk Mitigation Policy seeks to reduce CalPERS funding risk over time, in which CalPERS investment performance that significantly outperforms the discount rate will trigger adjustments to the discount rate, expected investment return, and strategic asset allocation targets. This is the first time it has been triggered. The discount rate, or assumed rate of return, will drop to 6.8%, from its current level of 7%. Based on these preliminary fiscal year returns, the CalPERS has announced the funded status of the overall Public Employees Retirement Fund (PERF) is an estimated 82%. This estimate is based on a 7% discount rate. Under the new 6.8% discount rate, however, CalPERS indicated the funded status of the overall PERF drops to 80%. This is because existing assets are assumed to grow at a slightly slower rate annually into the future. As intended under the Funding Risk Mitigation Policy, the lower discount rate increases the likelihood that CalPERS can reach its target over the longer term. The CalPERS Board of Administration will continue to review the discount rate through its Asset Liability Management process during the rest of the calendar year. CalPERS' final fiscal year 2021 investment performance will be calculated based on audited figures and will be reflected in contribution levels for contracting cities, counties, and special districts in fiscal year 2024. 86 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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. 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. 87 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) 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: • A ge 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, 2021, the City’s contributions to the Plan were $4,810,361. Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the measurement date of June 30, 2020: Active employees 196 Inactive employees or beneficiaries currently receiving benefit payments 360 Total 556 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. 88 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) D. Net OPEB Liability Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, rolled forward to June 30, 2020 using standard updated procedures, based on the following actuarial methods and assumptions: Valuation Date • June 30, 2019 Measurement Date • June 30, 2020 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 22 years remaining for 2020/21 • 6.75% at June 30, 2020 • 6.75% at June 30, 2019 • 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% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later years • Medicare - 6.1%% for 2022, 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 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% 89 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) 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 $88,596,000 $24,240,000 $64,356,000 Changes Recognized for the Measurement Period: Service Cost 1,604,244 1,604,244 Interest on the total OPEB liability 5,951,761 5,951,761 Changes in benefit terms Differences between expected and actual experience Changes of assumptions (1,858,796) (1,858,796) Contributions from the employer 4,854,000 (4,854,000) Net investment income 838,481 (838,481) Benefit payments (4,052,000) (4,052,000) Administrative expenses (11,868) 11,868 Net changes 1,645,209 1,628,613 16,596 Balance at June 20, 2019 Measurement Date $90,241,209 $25,868,613 $64,372,596 Increase (Decrease) 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%) $76,569,553 $64,372,596 $54,326,961 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 $52,802,929 $64,372,596 $78,567,339 90 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued) G.OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 201, the City recognized OPEB expense of $6,003,065. At June 30, 2021, 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 $4,810,361 Differences between actual and expected experience 1,309,000 Changes of assumptions ($1,575,922) Net differences between projected and actual earnings on plan investments 490,453 Total $6,609,814 ($1,575,922) $4,810,361 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, 2022. 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 2022 $72,239 2023 (72,761) 2024 63,939 2025 160,114 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 $478,173. Employer contributions of $425,683 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. 91 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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. 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. 92 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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, 2021, the City paid PLAN JPA $1,752,289 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 Public Risk, Innovation, Solutions and Management (PRISM) (formerly CSAC Excess Insurance Authority (CSAC-EIA)). PRISM 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. 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, 2021 Fiscal Year Workers' General 2019-2020 Compensation Liability Total Total Balance, beginning of year $14,884,000 $81,224 $14,965,224 $14,451,253 Current year claims and changes in estimates of prior years claims 3,612,071 25,534 3,637,605 2,969,958 Claims Paid (2,800,071) (52,961) (2,853,032) (2,455,987) Balance, end of year $15,696,000 $53,797 $15,749,797 $14,965,224 Current portion $2,825,000 $53,797 $2,878,797 $643,224 93 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 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. 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, 2021 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 2022 $420,000 2023 420,000 2024 420,000 2025 420,000 2026 420,000 2027-2029 1,085,000 T otal $3,185,000 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 2021, 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 2021, lease payments were $51,800. 94 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued) Future minimum lease revenues for the Costco and Magnolia Plaza leases are as follows: Year ending June 30: Costco Magnolia Plaza Total 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 400,000 51,800 451,800 2027-2031 2,000,000 259,000 2,259,000 2032-2036 1,200,000 259,000 1,459,000 2037-2041 259,000 259,000 2042-2046 259,000 259,000 2047-2051 259,000 259,000 2052-2056 259,000 259,000 2057-2061 259,000 259,000 2062 51,800 51,800 $5,200,000 $2,123,800 $7,323,800 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. 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. 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. 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. Information presented in the following footnotes represents assets and liabilities of the Successor Agency. 95 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued) A. Cash and Investments Cash and investments of the Successor Agency as of June 30, 2021 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, 2021. 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. 96 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued) Capital assets recorded at June 30 are comprised of: Balance Balance June 30, 2020 Retirement June 30, 2021 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 (78,360) ($6,593) (84,953) Equipment and Vehicle (242,190)(242,190) Furniture and Fixtures (21,506)(21,506) Total accumulated depreciation (342,056) (6,593) (348,649) Net capital assets being depreciated 251,311 (6,593) 244,718 Fiduciary activity capital assets, net $362,530 ($6,593) $355,937 D. POLLUTION REMEDIATION In fiscal year 2009-10, the former Redevelopment Agency purchased an unimproved parcel adjacent to the Caltrain Commuter Rail station from the State of California. The Successor Agency’s purchase includes use of the 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 from the 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 with respect to the previous existence of underground petroleum storage tanks. This amount was recorded in the Successor Agency accounts in fiscal year 2011-12 as a liability for future remediation efforts. In fiscal year 2013-14, it was determined by the San Mateo County Health System, in response to investigative reports provided and corrective action by the City of South San Francisco, that no further remediation action with respect to the petroleum tanks was required. In fiscal year 2020-21, the City released the liability from the Successor Agency accounts. 97 CITY OF SOUTH SAN FRANCISCO NOTES TO BASIC FINANCIALS STATEMENTS For the Fiscal Year Ended June 30, 2021 NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued) E. DEFEASED BONDS As of June 30, 2021, the outstanding balance of defeased debt was $4,445,000 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. 98 REQUIRED SUPPLEMENTARY INFORMATION CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487 Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781 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 1,771,483 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) (13,336,957) Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794 Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 Total pension liability - ending (a)$196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819 $244,816,128 $254,824,922 Plan fiduciary net position Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463 Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698 Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207 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) (13,336,957) Plan to plan resource movement (50,555) 229 (365) (20) (32) Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) (230,510) 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 4,223,869 Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 Plan fiduciary net position - ending (b)$143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642 $163,510,764 167,734,633 Net pension liability - ending (a)-(b) $53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289 Plan fiduciary net position as a percentage of the total pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% 65.82% Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 Net pension liability as percentage of covered payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 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: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, and 2020, there were no changes. 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. Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 100 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 $8,616,536 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 8,616,536 Contribution deficiency (excess)$0 $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 $27,681,286 Contributions as a percentage of covered payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13% Notes to Schedule Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 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, an d 2.625% for 2020, and 2.50% for 2021 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% fo r 2019, 7.25% for 2020, and 7.00% for 2021, 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, 2020 and 2021, 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. Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CONTRIBUTIONS 101 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000 Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010 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 2,853,684 742,624 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) (16,384,059) Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575 Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 Total pension liability - ending (a)$266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740 $343,645,905 $359,168,480 Plan fiduciary net position Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434 Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991 Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885 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) (16,384,059) Plan to plan resource movement (229) (512) 20 32 Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) (326,879) 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 9,089,404 Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 Plan fiduciary net position - ending (b)$195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754 $231,869,470 $240,958,874 Net pension liability - ending (a)-(b)$71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606 Plan fiduciary net position as a percentage of the total pension liability 73.37% 72.65% 68.90% 66.44% 67.53% 67.47% 67.09% Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 499.47% 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 fromplan changes which occurred afterthe June 30valuation date.This applies forvoluntary benefit changes as well as any offers of Two Years AdditionalService Credit (a.k.a. Golden Handshakes). Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019 and 2020, there were no changes.In 2015,amounts reported reflect an adjustment ofthe discount rate form7.5% (net ofadministrative expense)to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate. Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS 102 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 $12,413,770 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 12,413,770 Contribution deficiency (excess)$0 $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 $24,378,494 Contributions as a percentage of covered payroll 43.12% 44.97% 41.26% 42.51% 44.24% 46.99% 50.92% Notes to Schedule Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 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 2.625% for 2020, and 2.50% for 2021 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, 7.25% for 2020, and 7.00% for 2021, 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, 2020, and 2021, 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. Safety Agent Multiple-Employer Defined Benefit Pension Plans Last 10 Years* SCHEDULE OF CONTRIBUTIONS 103 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 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 6/30/2020 Total OPEB Liability Service Cost $1,574 $1,535 $1,558 $1,604 Interest 5,087 5,325 5,568 5,952 Changes in benefit terms Differences between expected and actual experience 91 2,895 Changes of assumptions (672) (1,859) Benefit payments (2,901) (3,326) (3,378) (4,052) Net change in total OPEB liability 3,760 3,625 5,971 1,645 Total OPEB liability - beginning 75,240 79,000 82,625 88,596 Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241 Plan fiduciary net position Contributions - employer $3,703 $4,128 $4,180 $4,854 Contributions - employee Net investment income 1,803 1,566 1,402 838 Administrative expense (9) (37) (5) (12) Benefit payments (2,901) (3,326) (3,378) (4,052) Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868 Net OPEB liability - ending (a)-(b) $59,290 $60,584 $64,356 $64,373 Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67% Covered-employee payroll $26,539 $26,986 $27,662 $28,215 Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15% * Fiscal year 2018 was the first year of implementation. 104 CITY OF SOUTH SAN FRANCISCO REQUIRED SUPPLEMENTARY INFORMATION For the Fiscal Year Ended June 30, 2021 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 2021 Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 Contributions in relation to the actuarially determined contribution 4,128 4,180 4,854 4,810 Contribution deficiency (excess)$2,151 $2,659 $2,141 $2,443 Covered-employee payroll $26,986 $27,662 $28,215 $26,824 Contributions as a percentage of covered-employee payroll 7.97%9.61%7.59%9.11% * 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 22 years remaining for 2020/21 •6.75% at June 30, 2020 •6.75% at June 30, 2019 •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 - 7.00% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later years •Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and later yearsMortality, 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 105 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. 109 General Purpose Measure W Total ASSETS Cash and investments $51,412,156 $5,051,136 $56,463,292 Receivables: Accounts 7,646,580 2,882,584 10,529,164 Accrued interest 164,535 164,535 Due from other funds Due from Conference Center 62,516 62,516 Advances to other funds Inventory 4,099 4,099 Restricted cash and investments 152,797 152,797 Properties held for redevelopment 16,354,141 16,354,141 Total Assets $75,796,824 $7,933,720 $83,730,544 LIABILITIES Accounts payable $3,200,919 $3,200,919 Accrued salaries and benefits 2,835,241 2,835,241 Other payable 797,807 797,807 Deposits 927,576 927,576 Unearned revenue 210,000 210,000 Total Liabilities 7,971,543 7,971,543 FUND BALANCES Nonspendable 4,099 4,099 Restricted 16,354,141 16,354,141 Committed 4,451,157 $7,921,045 12,372,202 Assigned 5,418,503 12,675 5,431,178 Unassigned 41,597,381 41,597,381 Total Fund Balances 67,825,281 7,933,720 75,759,001 Total Liabilities and Fund Balances $75,796,824 $7,933,720 $83,730,544 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING BALANCE SHEETS JUNE 30, 2021 110 General Purpose Measure W Total REVENUES Property taxes $44,239,406 $44,239,406 Sales taxes 19,370,155 $13,379,292 32,749,447 Transient occupancy taxes 6,710,271 6,710,271 Franchise Fees 4,498,202 4,498,202 Other taxes 4,529,764 4,529,764 Intergovernmental 4,323,151 4,323,151 Interest and rentals 3,063,987 3,063,987 Licenses and permits 15,589,002 15,589,002 Charges for services 6,518,254 6,518,254 Fines and forfeitures 535,750 535,750 Other 731,752 731,752 Total Revenues 110,109,694 13,379,292 123,488,986 EXPENDITURES Current: City Council 224,257 224,257 City Clerk 956,698 956,698 City Treasurer 38,705 38,705 City Attorney 987,044 987,044 City Manager 3,725,991 267,961 3,993,952 Finance 2,917,393 2,917,393 Non-departmental 1,336,201 1,336,201 Human Resources 1,654,369 1,654,369 Fire 31,817,325 31,817,325 Police 30,959,959 30,959,959 Public Works 5,731,652 5,731,652 Parks and Recreation 15,795,645 15,795,645 Library 5,903,883 5,903,883 Economic and Community Development 6,560,605 6,560,605 Total Expenditures 108,609,727 267,961 108,877,688 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,499,967 13,111,331 14,611,298 OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets (818,692)(818,692) Transfers in 2,272,021 2,272,021 Transfers out (3,884,196) (20,156,992) (24,041,188) Total Other Financing Sources (Uses)(2,430,867) (20,156,992) (22,587,859) Net Change in Fund Balances before special items (930,900) (7,045,661) (7,976,561) SPECIAL ITEMS Proceeds from sale of common interest Remittance of land sale proceeds (1,378,533)(1,378,533) Net Change in Fund Balances (2,309,433)(9,355,094) Fund balance - July 1 70,134,714 14,979,381 85,114,095 Fund balance - June 30 $67,825,281 $7,933,720 $75,759,001 CITY OF SOUTH SAN FRANCISCO GENERAL FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021 111 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, 2021 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes $41,595,650 $43,051,499 $44,239,406 $1,187,907 Sales taxes 16,900,000 18,500,000 19,370,155 870,155 Transient occupancy taxes 7,872,437 5,904,328 6,710,271 805,943 Franchise fees 4,600,000 4,600,000 4,498,202 (101,798) Other taxes 3,118,206 3,118,206 4,529,764 1,411,558 Intergovernmental 2,222,769 3,260,631 4,323,151 1,062,520 Interest and rentals 3,827,794 3,827,794 3,063,987 (763,807) Licenses and permits 14,995,496 14,995,498 15,589,002 593,504 Charges for services 8,011,656 7,061,654 6,518,254 (543,400) Fines and forfeitures 789,249 789,249 535,750 (253,499) Other 175,341 175,341 731,752 556,411 Amounts available for appropriation 104,108,598 105,284,200 110,109,694 4,825,494 Charges to appropriations (outflows) City Council 284,561 284,561 224,257 60,304 City Clerk 1,096,594 1,096,593 1,016,698 79,895 City Treasurer 145,524 145,525 38,705 106,820 City Attorney 910,049 910,049 987,044 (76,995) City Manager 2,163,106 5,132,003 5,933,537 (801,534) Finance 3,239,292 3,639,551 3,442,495 197,056 Non-departmental 1,044,277 1,737,423 1,366,323 371,100 Human Resources 1,779,644 2,031,504 1,889,976 141,528 Fire 29,978,036 31,010,490 32,023,646 (1,013,156) Police 31,882,490 32,020,244 30,984,959 1,035,285 Public Works 5,774,064 5,856,707 5,973,424 (116,717) Parks and Recreation 15,654,905 16,024,167 15,978,135 46,032 Library 6,048,132 6,245,898 5,903,883 342,015 Economic and Community Development 7,205,824 9,606,747 8,415,150 1,191,597 Total charges to appropriations 107,206,498 115,741,462 114,178,232 1,563,230 OTHER FINANCING SOURCES (USES) Proceeds (Loss) from sale of capital assets (818,692) (818,692) Transfers in 1,314,915 2,323,871 2,272,021 (51,850) Transfers out (5,009,171) (8,029,073) (3,884,196) 4,144,877 Total Other Financing Sources (Uses) (3,694,256) (5,705,202) (2,430,867) 3,274,335 NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS (6,792,156) (16,162,464) (6,499,405) 9,663,059 SPECIAL ITEMS Remittance of land sale proceeds (1,378,533) (1,378,533) Net Change in Fund Balances ($6,792,156) ($16,162,464)(7,877,938) $8,284,526 Fund Balance - July 1 70,134,714 Adjustment to budgetary basis: Encumbrance adjustments 5,568,505 Fund Balance - June 30 $67,825,281 (Continued) Budgeted Amounts General Purpose 112 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, 2021 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes Sales taxes $12,708,000 $12,708,000 $13,379,292 $671,292 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 12,708,000 12,708,000 13,379,292 671,292 Charges to appropriations (outflows) City Council City Clerk City Treasurer City Attorney City Manager 327,826 280,636 47,190 Finance Non-departmental Human Resources Fire Police Public Works Parks and Recreation Library Economic and Community Development Total charges to appropriations 327,826 280,636 47,190 OTHER FINANCING SOURCES (USES) Proceeds (Loss) from sale of capital assets Transfers in Transfers out (3,434,200) (33,587,438) (20,156,992) 13,430,446 Total Other Financing Sources (Uses) (3,434,200) (33,587,438) (20,156,992) 13,430,446 NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS 9,273,800 (21,207,264) (7,058,336) 14,148,928 SPECIAL ITEMS Remittance of land sale proceeds Net Change in Fund Balances $9,273,800 ($21,207,264) (7,058,336) $14,148,928 Fund Balance - July 1 14,979,381 Adjustment to budgetary basis: Encumbrance adjustments 12,675 Fund Balance - June 30 $7,933,720 (Continued) Budgeted Amounts Measure W 113 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, 2021 Variance with Final Budget Actual Positive Original Final Amount (Negative) Resources (inflows): Property taxes $41,595,650 $43,051,499 $44,239,406 $1,187,907 Sales taxes 29,608,000 31,208,000 32,749,447 1,541,447 Transient occupancy taxes 7,872,437 5,904,328 6,710,271 805,943 Franchise fees 4,600,000 4,600,000 4,498,202 (101,798) Other taxes 3,118,206 3,118,206 4,529,764 1,411,558 Intergovernmental 2,222,769 3,260,631 4,323,151 1,062,520 Interest and rentals 3,827,794 3,827,794 3,063,987 (763,807) Licenses and permits 14,995,496 14,995,498 15,589,002 593,504 Charges for services 8,011,656 7,061,654 6,518,254 (543,400) Fines and forfeitures 789,249 789,249 535,750 (253,499) Other 175,341 175,341 731,752 556,411 Amounts available for appropriation 116,816,598 117,992,200 123,488,986 5,496,786 Charges to appropriations (outflows) City Council 284,561 284,561 224,257 60,304 City Clerk 1,096,594 1,096,593 1,016,698 79,895 City Treasurer 145,524 145,525 38,705 106,820 City Attorney 910,049 910,049 987,044 (76,995) City Manager 2,163,106 5,459,829 6,214,173 (754,344) Finance 3,239,292 3,639,551 3,442,495 197,056 Non-departmental 1,044,277 1,737,423 1,366,323 371,100 Human Resources 1,779,644 2,031,504 1,889,976 141,528 Fire 29,978,036 31,010,490 32,023,646 (1,013,156) Police 31,882,490 32,020,244 30,984,959 1,035,285 Public Works 5,774,064 5,856,707 5,973,424 (116,717) Parks and Recreation 15,654,905 16,024,167 15,978,135 46,032 Library 6,048,132 6,245,898 5,903,883 342,015 Economic and Community Development 7,205,824 9,606,747 8,415,150 1,191,597 Total charges to appropriations 107,206,498 116,069,288 114,458,868 1,610,420 OTHER FINANCING SOURCES (USES) Proceeds (Loss) from sale of capital assets (818,692)(818,692) Transfers in 1,314,915 2,323,871 2,272,021 (51,850) Transfers out (8,443,371) (41,616,511) (24,041,188) 17,575,323 Total Other Financing Sources (Uses)(7,128,456) (39,292,640) (22,587,859) 16,704,781 NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS 2,481,644 (37,369,728) (13,557,741) 23,811,987 SPECIAL ITEMS Remittance of land sale proceeds (1,378,533) (1,378,533) Net Change in Fund Balances $2,481,644 ($37,369,728) (14,936,274) $22,433,454 Fund Balance - July 1 85,114,095 Adjustment to budgetary basis: Encumbrance adjustments 5,581,180 Fund Balance - June 30 $75,759,001 Budgeted Amounts Total 114 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. 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 and other areas within the City. 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. CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND Accounts for expenditures associated with the acquisition, construction, and installation of certain capital improvements constituting 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 2021A Bonds. 115 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, 2021 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $8,886 $8,886 Charges for services 443,483 443,483 Total Revenues 452,369 452,369 EXPENDITURES: Current: Non-departmental $1,850 1,850 Total Expenditures 1,850 1,850 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,850) 450,519 452,369 OTHER FINANCING SOURCES (USES) Transfers out (6,686,470) (1,714,080) 4,972,390 Total other financing sources (uses) (6,686,470) (1,714,080) 4,972,390 NET CHANGE IN FUND BALANCE ($6,688,320) (1,263,561) $5,424,759 Fund balance (deficit) - July 1 5,407,840 Fund balance (deficit) - June 30 $4,144,279 116 CITY OF SOUTH SAN FRANCISCO 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, 2021 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $44,479 $44,479 Charges for services 1,962,094 1,962,094 Total Revenues 2,006,573 2,006,573 EXPENDITURES: Current: Public works $1,850 1,850 Total Expenditures 1,850 1,850 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,850) 2,004,723 2,006,573 OTHER FINANCING SOURCES (USES) Transfers (out) (22,949,612) (2,530,159) 20,419,453 Total other financing sources (uses) (22,949,612) (2,530,159) 20,419,453 NET CHANGE IN FUND BALANCE ($22,951,462) (525,436) $22,426,026 Fund balance - July 1 25,015,746 Fund balance - June 30 $24,490,310 117 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, 2021 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $12,236 $12,236 Charges for services 629,882 629,882 Total Revenues 642,118 642,118 EXPENDITURES: Current: Non-departmental $1,850 1,850 Total Expenditures 1,850 1,850 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,850) 640,268 642,118 OTHER FINANCING SOURCES (USES) Transfers (out) (5,500,000) (37,150) 5,462,850 Total other financing sources (uses) (5,500,000) (37,150) 5,462,850 NET CHANGE IN FUND BALANCE ($5,501,850) 603,118 $6,104,968 Fund balance - July 1 6,185,208 Fund balance - June 30 $6,788,326 118 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, 2021 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $890 $890 Total Revenues 890 890 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 890 890 OTHER FINANCING SOURCES (USES) Transfers (out) (17,678) (17,678) Total other financing sources (uses) (17,678) (17,678) NET CHANGE IN FUND BALANCE (16,788) ($16,788) Fund balance - July 1 16,788 Fund balance - June 30 119 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Charges for services $250,000 $250,000 Interest and rental 54,022 54,022 Total Revenues 304,022 304,022 EXPENDITURES Current: Public Works $1,638,521 1,635,521 3,000 Total Expenditures 1,638,521 1,635,521 3,000 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,638,521) (1,331,499) 307,022 OTHER FINANCING SOURCES (USES) Transfers in Transfers out (5,630,817) (3,100,805) 2,530,012 Total other financing sources (uses) (5,630,817) (3,100,805) 2,530,012 NET CHANGE IN FUND BALANCE ($7,269,338) (4,432,304) $2,837,034 Fund balance - July 1 29,363,924 Adjustment to budgetary basis: Encumbrance adjustments 963,000 Fund balance - June 30 $25,894,620 CITY OF SOUTH SAN FRANCISCO CAPITAL INFRASTRUCTURE RESERVE 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, 2021 120 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) REVENUES: Interest and rental $57,615 $117,606 $59,991 Total Revenues 57,615 117,606 59,991 EXPENDITURES Current: Police 46,639,582 45,963,455 676,127 Total Expenditures 46,639,582 45,963,455 676,127 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (46,581,967) (45,845,849) 736,118 NET CHANGE IN FUND BALANCE ($46,581,967) (45,845,849) $736,118 Fund balance - July 1 46,604,509 Adjustment to budgetary basis: Encumbrance adjustments 6,029,988 Fund balance - June 30 $6,788,648 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, 2021 121 Variance with Final Budget Final Positive Budget Actual Amounts (Negative) EXPENDITURES Current: Public Works $15,000,000 $14,686,104 $313,896 Debt service: Interest and fiscal charges 475,260 (475,260) Total Expenditures 15,000,000 15,161,364 (161,364) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (15,000,000) (15,161,364) (161,364) OTHER FINANCING SOURCES (USES) Issuance of debt 64,939,141 64,939,141 Bond premium 13,587,424 13,587,424 Transfers in 15,000,000 12,368,084 (2,631,916) Total other financing sources (uses) 15,000,000 90,894,649 75,894,649 NET CHANGE IN FUND BALANCE 75,733,285 $75,733,285 Fund balance - July 1 Adjustment to budgetary basis: Encumbrance adjustments 2,241,848 Fund balance - June 30 $77,975,133 CITY OF SOUTH SAN FRANCISCO CAPITAL IMPROVEMENTS CIVIC CAMPUS 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, 2021 122 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. American Rescue Plan Act – Accounts for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal government’s response to the impacts of the COVID-19 pandemic. 123 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. 124 This Page Left Intentionally Blank Federal Community Developer Aviation Development Maintenance Gas Tax Contributions Grant Block Grant Districts ASSETS Cash and investments $329,254 $8,972,389 $4,787,169 Receivables: Accounts 214,001 $2,750 67,746 Accrued interest 1,018 28,837 Loans 688,888 Restricted cash and investments 9,185 Total Assets $330,272 $9,215,227 $700,823 $4,854,915 LIABILITIES Liabilities: Accounts payable $119,158 $43,457 $38,513 Other payable 37,487 548,980 Deposits 2,613,681 Unearned revenue Total Liabilities 2,770,326 592,437 38,513 Fund Balances: Restricted $330,272 6,444,901 108,386 4,816,402 Total Fund Balances 330,272 6,444,901 108,386 4,816,402 Total Liabilities and Fund Balances $330,272 $9,215,227 $700,823 $4,854,915 SPECIAL REVENUE FUNDS CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2021 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 $2,516,047 $759,499 $981 $11,521,916 $815,747 $1,593,114 $1,770,815 17,191 331 38,874 8,552 118 30,647 4,669 4,363 6,150 16,078 $2,524,599 $776,690 $1,099 $11,552,563 $836,825 $1,636,351 $1,776,965 $80 $151,344 $7,800 74,849 52 74,929 151,396 7,800 $2,524,599 701,761 $1,099 11,401,167 829,025 $1,636,351 $1,776,965 2,524,599 701,761 1,099 11,401,167 829,025 1,636,351 1,776,965 $2,524,599 $776,690 $1,099 $11,552,563 $836,825 $1,636,351 $1,776,965 (Continued) 127 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2021 CAPITAL PROJECTS SPECIAL REVENUE FUNDS FUNDS Road Maintenance SMC Measure W American Non-obligated Public and 1/2 Cent Rescue Capital Safety Rehabilitation Sales Tax Plan Act Projects Impact Fee ASSETS Cash and investments $901,622 $459,438 $5,879,471 $1,495,466 Receivables: Accounts 122,667 153,148 Accrued interest 4,920 1,675 3,920 Loans Restricted cash and investments Total Assets $1,029,209 $614,261 $5,879,471 $1,499,386 LIABILITIES Liabilities: Accounts payable Other payable Deposits Unearned revenue $5,879,471 Total Liabilities 5,879,471 Fund Balances: Restricted $1,029,209 $614,261 $1,499,386 Total Fund Balances 1,029,209 614,261 1,499,386 Total Liabilities and Fund Balances $1,029,209 $614,261 $5,879,471 $1,499,386 128 CAPITAL PROJECTS FUNDS Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial Improvement Capacity Development Acquisition Construction Pedestrian Linkage Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee $38,596 $7,703,134 $62,061 $1,600,996 $5,336,002 $116,578 $10,215,641 54,097 113 22,994 2,777 8,780 235 16,314 $38,709 $7,726,128 $116,158 $1,603,773 $5,344,782 $116,813 $10,231,955 $63,055 $20,330 63,055 20,330 $38,709 $7,726,128 53,103 $1,603,773 $5,344,782 $116,813 10,211,625 38,709 7,726,128 53,103 1,603,773 5,344,782 116,813 10,211,625 $38,709 $7,726,128 $116,158 $1,603,773 $5,344,782 $116,813 $10,231,955 (Continued) 129 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2021 DEBT SERVICE FUND Total Nonmajor 2020A Governmental Bonds Funds ASSETS Cash and investments $66,875,936 Receivables: Accounts 670,805 Accrued interest 146,082 Loans 704,966 Restricted cash and investments 9,185 Total Assets $68,406,974 LIABILITIES Liabilities: Accounts payable $443,737 Other payable 661,368 Deposits 2,613,681 Unearned revenue 5,879,471 Total Liabilities 9,598,257 Fund Balances: Restricted 58,808,717 Total Fund Balances 58,808,717 Total Liabilities and Fund Balances $68,406,974 130 This Page Left Intentionally Blank CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021 SPECIAL REVENUE FUNDS Federal Community Developer Aviation Development Maintenance Gas Tax Contributions Grants Block Grant Districts REVENUES Property taxes $2,210,329 Sales taxes Other taxes Intergovernmental $1,806,304 $653,871 Interest and rentals 642 $16,274 $1,252 18,826 Charges for services 1,134,536 30,000 Other 11,109 Total Revenues 1,806,946 1,161,919 1,252 702,697 2,210,329 EXPENDITURES Current: Economic and community development 616,973 903,801 Public works 1,667,899 Police Other 500,000 Debt service: Principal repayments Interest and fiscal charges Total Expenditures 1,116,973 903,801 1,667,899 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,806,946 44,946 1,252 (201,104) 542,430 OTHER FINANCING SOURCES (USES) Loss on sale of property Transfers in Transfers out (1,916,433) (1,538,895) (1,252) (43,096) Total Other Financing Sources (Uses)(1,916,433) (1,538,895) (1,252) (43,096) Net Change in Fund Balances (109,487) (1,493,949)(244,200) 542,430 Fund balance - July 1 439,759 7,938,850 352,586 4,273,972 Fund balance - June 30 $330,272 $6,444,901 $108,386 $4,816,402 132 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 $1,608,269 $160,781 5,729 116 $44,186 $4,132 $2,974 $4,099 $206,295 6,747,552 4,500 154,348 1,613,998 206,295 160,897 6,791,738 8,632 157,322 4,099 182,869 60,897 1,370,081 1,238,299 182,869 60,897 1,370,081 1,238,299 1,613,998 23,426 100,000 5,421,657 (1,229,667) 157,322 4,099 (1,899,999) (1,889,208) (14,632) (100,000) (567,270)(475,659) (1,889,208) (14,632) (100,000) (567,270) (1,899,999)(475,659) (275,210) 8,794 4,854,387 (3,129,666) 157,322 (471,560) 2,799,809 692,967 1,099 6,546,780 3,958,691 1,479,029 2,248,525 $2,524,599 $701,761 $1,099 $11,401,167 $829,025 $1,636,351 $1,776,965 (Continued) 133 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021 CAPITAL PROJECTS SPECIAL REVENUE FUNDS FUNDS Road Maintenance SMC Measure W American Non-obligated Public and 1/2 Cent Rescue Capital Safety Rehabilitation Sales Tax Plan Act Projects Impact Fee REVENUES Property taxes Sales taxes $751,698 Other taxes Intergovernmental $1,245,493 $260,000 Interest and rentals 3,263 1,022 $2,580 Charges for services Other 243,887 Total Revenues 1,248,756 752,720 260,000 246,467 EXPENDITURES Current: Economic and community development Public works Police Other 260,000 Debt service: Principal repayments Interest and fiscal charges Total Expenditures 260,000 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,248,756 752,720 246,467 OTHER FINANCING SOURCES (USES) Loss on sale of property Transfers in Transfers out (1,921,293) (733,382)($41,857) (143,753) Total Other Financing Sources (Uses)(1,921,293) (733,382)(41,857) (143,753) Net Change in Fund Balances (672,537)19,338 (41,857) 102,714 Fund balance - July 1 1,701,746 594,923 41,857 1,396,672 Fund balance - June 30 $1,029,209 $614,261 $1,499,386 134 CAPITAL PROJECTS FUNDS Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial Improvement Capacity Development Acquisition Construction Pedestrian Linkage Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee $8,172,201 $75 15,652 92 $1,918 $6,469 $174 $10,425 1,900,697 723,211 769,296 3,063,248 50,727 5,365,449 75 1,916,349 8,895,504 771,214 3,069,717 50,901 5,375,874 1,850 8,882,578 121,711 40,000 40,000 1,850 8,882,578 121,711 (39,925) 1,914,499 12,926 771,214 3,069,717 50,901 5,254,163 (2,338,118) (36,173) (2,338,118) (36,173) (39,925) (423,619) 12,926 735,041 3,069,717 50,901 5,254,163 78,634 8,149,747 40,177 868,732 2,275,065 65,912 4,957,462 $38,709 $7,726,128 $53,103 $1,603,773 $5,344,782 $116,813 $10,211,625 (Continued) 135 CITY OF SOUTH SAN FRANCISCO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021 DEBT SERVICE FUND Total Nonmajor 2020A Governmental Bonds Funds REVENUES Property taxes $2,210,329 Sales taxes 751,698 Other taxes 1,769,050 Intergovernmental 12,137,869 Interest and rentals 139,900 Charges for services 13,243,459 Other 7,161,396 Total Revenues 37,413,701 EXPENDITURES Current: Economic and community development 1,703,643 Public works 10,552,327 Police 60,897 Other 3,490,091 Debt service: Principal repayments $935,000 975,000 Interest and fiscal charges 1,832,200 1,832,200 Total Expenditures 2,767,200 18,614,158 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,767,200) 18,799,543 OTHER FINANCING SOURCES (USES) Loss on sale of property (1,899,999) Transfers in 2,767,200 2,767,200 Transfers out (11,761,021) Total Other Financing Sources (Uses)2,767,200 (10,893,820) Net Change in Fund Balances 7,905,723 Fund balance - July 1 50,902,994 Fund balance - June 30 $58,808,717 136 This Page Left Intentionally Blank Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Property taxes Sales taxes Other taxes Intergovernmental $1,989,358 $1,806,304 ($183,054) Interest and rentals 15,000 642 (14,358) $4,000 $1,252 ($2,748) Charges for services Other Total Revenues 2,004,358 1,806,946 (197,412) 4,000 1,252 (2,748) EXPENDITURES Current: City Council Economic and community development Public works Fire Police Other Debt service: Principal repayments Interest and fiscal charges Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2,004,358 1,806,946 (197,412) 4,000 1,252 (2,748) OTHER FINANCING SOURCES (USES) Loss on sale of property Transfers in Transfers out (2,486,329) (1,916,433) 569,896 (1,252) (1,252) Total Other Financing Sources (Uses) (2,486,329) (1,916,433) 569,896 (1,252) (1,252) NET CHANGE IN FUND BALANCES ($481,971) (109,487) $372,484 $4,000 ($4,000) Adjustment to budgetary basis: Encumbrance adjustments Fund balance - July 1 439,759 Fund balance - June 30 $330,272 GRANT FEDERAL AVIATION GAS TAX 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, 2021 138 MAINTENANCE DISTRICTS Variance Variance Variance Final Positive Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,798,633 $2,210,329 $411,696 $1,527,755 $1,608,269 $80,514 $700,000 $653,871 ($46,129) 120,000 18,826 (101,174)25,000 5,729 (19,271) 574,525 30,000 (544,525) 1,394,525 702,697 (691,828) 1,798,633 2,210,329 411,696 1,552,755 1,613,998 61,243 1,815,292 1,282,890 532,402 2,224,835 1,706,402 518,433 1,815,292 1,282,890 532,402 2,224,835 1,706,402 518,433 (420,767) (580,193) (159,426) (426,202) 503,927 930,129 1,552,755 1,613,998 61,243 (43,096) (43,096)(4,202,484) (1,889,208) 2,313,276 (43,096) (43,096)(4,202,484) (1,889,208) 2,313,276 ($463,863) (623,289) ($159,426) ($426,202) 503,927 $930,129 ($2,649,729) (275,210) $2,374,519 379,089 38,503 352,586 4,273,972 2,799,809 $108,386 $4,816,402 $2,524,599 (Continued) BLOCK GRANT COMMUNITY DEVELOPMENT TRANSPORTATION SALES TAX 139 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 $2,974 ($2,026) Charges for services $180,000 $206,295 $26,295 Other 125,000 154,348 29,348 Total Revenues 180,000 206,295 26,295 130,000 157,322 27,322 EXPENDITURES Current: City Council Economic and community development 238,309 265,610 (27,301) Public works Fire Police Other Debt service: Principal repayments Interest and fiscal charges Total Expenditures 238,309 265,610 (27,301) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (58,309) (59,315) (1,006) 130,000 157,322 27,322 OTHER FINANCING SOURCES (USES) Loss on sale of property Transfers in Transfers out (121,258) (14,632) 106,626 Total Other Financing Sources (Uses) (121,258) (14,632) 106,626 NET CHANGE IN FUND BALANCES ($179,567) (73,947) $105,620 $130,000 157,322 $27,322 Adjustment to budgetary basis: Encumbrance adjustments 82,741 Fund balance - July 1 692,967 1,479,029 Fund balance - June 30 $701,761 $1,636,351 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, 2021 SOLID WASTE REDUCTION PEG EQUIPMENT AND ACCESS 140 Variance Variance Variance Final Positive Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $600,000 $751,698 $151,698 $1,209,685 $1,245,493 $35,808 $4,099 $4,099 3,263 3,263 1,022 1,022 4,099 4,099 1,209,685 1,248,756 39,071 600,000 752,720 152,720 4,099 4,099 1,209,685 1,248,756 39,071 600,000 752,720 152,720 ($939,895) (475,659) 464,236 (3,315,253) (1,921,293) 1,393,960 (775,136) (733,382) 41,754 (939,895) (475,659) 464,236 (3,315,253) (1,921,293) 1,393,960 (775,136) (733,382) 41,754 ($939,895) (471,560) $468,335 ($2,105,568) (672,537) $1,433,031 ($175,136) 19,338 $194,474 2,248,525 1,701,746 594,923 $1,776,965 $1,029,209 $614,261 (Continued) SMC MEASURE W 1/2 CENT SALES TAX TRANSIT ENHANCEMENT IN-LIEU FEE ROAD MAINTENANCE AND REHABILITATION 141 SEWER CAPACITY CHARGES Variance Variance Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) REVENUES Property taxes Sales taxes Other taxes Intergovernmental Interest and rentals $2,580 $2,580 $15,652 $15,652 Charges for services $200,000 1,900,697 1,700,697 Other 243,887 243,887 Total Revenues 246,467 246,467 200,000 1,916,349 1,716,349 EXPENDITURES Current: City Council Economic and community development Public works 1,850 1,850 Fire $9,446 9,446 Police Other Debt service: Principal repayments Interest and fiscal charges Total Expenditures 9,446 9,446 1,850 1,850 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (9,446) 237,021 246,467 198,150 1,914,499 1,716,349 OTHER FINANCING SOURCES (USES) Loss on sale of property Transfers in Transfers out (276,150) (143,753) 132,397 (3,794,783) (2,338,118) 1,456,665 Total Other Financing Sources (Uses) (276,150) (143,753) 132,397 (3,794,783) (2,338,118) 1,456,665 NET CHANGE IN FUND BALANCES ($285,596) 93,268 $378,864 ($3,596,633) (423,619) $3,173,014 Adjustment to budgetary basis: Encumbrance adjustments 9,446 Fund balance - July 1 1,396,672 8,149,747 Fund balance - June 30 $1,499,386 $7,726,128 PUBLIC SAFETY IMPACT FEE FOR THE YEAR ENDED JUNE 30, 2021 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) 142 Variance Variance Variance Final Positive Final Positive Final Positive Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1,918 $1,918 $6,469 $6,469 769,296 769,296 3,063,248 3,063,248 771,214 771,214 3,069,717 3,069,717 $935,000 $935,000 1,832,200 1,832,200 2,767,200 2,767,200 771,214 771,214 3,069,717 3,069,717 (2,767,200) (2,767,200) 2,767,200 2,767,200 ($60,000) (36,173) 23,827 ($98,177)98,177 (60,000) (36,173) 23,827 (98,177)98,177 2,767,200 2,767,200 ($60,000) 735,041 $795,041 ($98,177) 3,069,717 $3,167,894 868,732 2,275,065 $1,603,773 $5,344,782 2020A BONDS PARK LAND ACQUISITION FEE PARK CONSTRUCTION FEE 143 This Page Left Intentionally Blank 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. 145 CITY OF SOUTH SAN FRANCISCO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION JUNE 30, 2021 Health and Self Retirement Equipment City Service Insurance Benefits Replacement Total ASSETS Current assets: Cash and investments $2,764,616 $17,440,935 $11,927,701 $5,809,832 $37,943,084 Receivables: Accounts 31,027 31,027 Accrued interest 7,253 45,720 34,738 15,269 102,980 Deposit 216,000 93,790 309,790 Prepaid items Total current assets 2,802,896 17,702,655 12,056,229 5,825,101 38,386,881 Noncurrent assets: Capital assets: Depreciable, net of accumulated depreciation 4,952,737 4,952,737 Total non-current assets 4,952,737 4,952,737 Total Assets 2,802,896 17,702,655 12,056,229 10,777,838 43,339,618 LIABILITIES Current liabilities: Accounts payable 107,508 107,707 122,253 50,087 387,555 Other payable 17,813 3 17,816 Current portion of accrued insurance loss 2,878,797 2,878,797 Current portion of compensated absences 72,148 762,475 834,623 Current portion of long-term debt 140,892 140,892 Total current liabilities 197,469 2,986,504 884,728 190,982 4,259,683 Noncurrent liabilities: Accrued insurance loss 12,871,000 12,871,000 Compensated absences obligation 137,454 1,084,070 1,221,524 Noncurrent portion of long-term debt 144,637 144,637 Total noncurrent liabilities 137,454 12,871,000 1,084,070 144,637 14,237,161 Total Liabilities 334,923 15,857,504 1,968,798 335,619 18,496,844 NET POSITION: Net investment in capital assets 4,667,208 4,667,208 Unrestricted 2,467,973 1,845,151 10,087,431 5,775,011 20,175,566 Total Net Position $2,467,973 $1,845,151 $10,087,431 $10,442,219 $24,842,774 146 Health and Self Retirement Equipment City Service Insurance Benefits Replacement Total OPERATING REVENUES Charges for services $5,537,007 $6,323,537 $14,938,761 $1,438,573 $28,237,878 Total Operating Revenues 5,537,007 6,323,537 14,938,761 1,438,573 28,237,878 OPERATING EXPENSES Personnel expenses 2,201,877 887,450 14,904,952 17,994,279 Professional services 701,191 52,961 2,065 756,217 Program supplies 1,556,093 500 32,766 1,589,359 Insurance 12,988 2,210,856 2,223,844 Self-insurance and claims 2,772,644 2,772,644 Repair and maintenance 455,308 119,290 574,598 Utilities 126,172 126,172 Depreciation 922,865 922,865 Other 14,901 468,401 483,302 Total Operating Expenses 5,068,530 5,923,911 15,375,918 1,074,921 27,443,280 Operating Income (Loss)468,477 399,626 (437,157)363,652 794,598 NONOPERATING REVENUES (EXPENSES) Interest income 5,214 31,801 23,089 10,479 70,583 Interest expense (11,585) (11,585) Gain from disposal of capital assets 1,389 1,389 Loss on disposal of capital assets (20,006) (20,006) Other 40,414 202,399 242,813 Total Nonoperating Revenues (Expenses)47,017 234,200 23,089 (21,112) 283,194 Net income (loss) before transfers 515,494 633,826 (414,068)342,540 1,077,792 TRANSFERS Transfers in 250,000 250,000 Transfers (out)(2,917)(2,917) Change in Net Position 515,494 633,826 (164,068)339,623 1,324,875 Net Position - July 1 1,952,479 1,211,325 10,251,499 10,102,596 23,517,899 Net Position - June 30 $2,467,973 $1,845,151 $10,087,431 $10,442,219 $24,842,774 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2021 CITY OF SOUTH SAN FRANCISCO 147 CITY OF SOUTH SAN FRANCISCO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2021 Health and Self Retirement Equipment City Service Insurance Benefits Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Cash received from interfund service provided $5,564,071 $6,525,936 $14,918,761 $1,438,573 $28,447,341 Cash payments to suppliers for goods and services (2,866,653) (2,296,492)(233,004) (5,396,149) Cash payments to employees for services (2,263,830) (929,727) (14,941,420)(18,134,977) Cash payments for judgments and claims (1,988,071)(1,988,071) Net Cash Provided by Operating Activities 433,588 1,311,646 (22,659) 1,205,569 2,928,144 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 250,000 250,000 Transfers (out)(2,917)(2,917) Net Cash Provided by Noncapital Financing Activities 250,000 (2,917) 247,083 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on capital lease (204,252) (204,252) Interest payments (11,585) (11,585) Acquisition of capital assets, net (574,701) (574,701) Proceeds from the sale of capital assets 1,389 15,120 16,509 Net Cash Used in Capital and Related Financing Activities 1,389 (775,418) (774,029) CASH FLOWS FROM INVESTING ACTIVITIES Interest received (20,141) (115,602) (88,286) (38,573) (262,602) Changes in fair values of investments 27,472 173,176 131,580 57,836 390,064 Net Cash Provided by Investing Activities 7,331 57,574 43,294 19,263 127,462 Net Increase (Decrease) in cash and cash equivalents 442,308 1,369,220 270,635 446,497 2,528,660 Cash and cash equivalents, beginning 2,322,308 16,071,715 11,657,066 5,363,335 35,414,424 Cash and cash equivalents, ending $2,764,616 $17,440,935 $11,927,701 $5,809,832 $37,943,084 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss)$468,477 $399,626 ($437,157) $363,652 $794,598 Adjustments to reconcile operating income (loss) to cash flows from operating activities: Depreciation 922,865 922,865 Other non-operating revenue (expenses)40,414 202,399 242,813 Net change in assets and liabilities: Accounts and lease receivables (13,350)(13,350) Deposit (20,000)(20,000) Prepaid items 1,074,537 1,074,537 Accounts payable (51,087) (42,277) (744,836)(838,200) Other payable (32,675) (43,220) (80,948) (156,843) Accrued insurance losses 784,573 784,573 Compensated absence obligations (10,866)148,017 137,151 Net Cash Provided by (Used in) Operating Activities $433,588 $1,311,646 ($22,659) $1,205,569 $2,928,144 NONCASH TRANSACTIONS Retirement of capital assets ($35,126) ($35,126) 148 STATISTICAL SECTION This part of the City’s Annual Comprehensive 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 149 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 Annual Comprehensive Financial Reports for the relevant year. 150 2012 2013 2014 2015 2016 Governmental activities Net investment in capital assets $218,218,696 $216,508,668 $230,440,390 $230,517,037 $231,142,079 Restricted 43,321,286 30,514,986 42,367,623 49,311,828 52,406,602 Unrestricted (3,837,201) 8,021,490 (12,317,511) (134,389,522) (120,119,617) Total governmental activities net position $257,702,781 $255,045,144 $260,490,502 $145,439,343 $163,429,064 Business-type activities Net investment in capital assets $70,653,841 $72,217,660 $78,045,318 $78,598,277 $83,930,073 Restricted Unrestricted 10,877,105 13,353,988 15,367,085 4,196,654 6,243,225 Total business-type activities net position $81,530,946 $85,571,648 $93,412,403 $82,794,931 $90,173,298 Primary government Net investment in capital assets $288,872,537 $288,726,328 $308,485,708 $309,115,314 $315,072,152 Restricted 43,321,286 30,514,986 42,367,623 49,311,828 52,406,602 Unrestricted 7,039,904 21,375,478 3,049,574 (130,192,868) (113,876,392) Total primary government net position $339,233,727 $340,616,792 $353,902,905 $228,234,274 $253,602,362 2017 2018 2019 2020 2021 Governmental activities Net investment in capital assets $254,344,554 $254,570,044 $271,349,364 $296,243,640 $316,169,957 Restricted 54,478,093 96,316,988 117,752,590 138,701,991 160,119,056 Unrestricted (86,808,434) (129,833,581) (114,028,420) (130,288,161) (144,181,245) Total governmental activities net position $222,014,213 $221,053,451 $275,073,534 $304,657,470 $332,107,768 Business-type activities Net investment in capital assets $86,167,704 $90,097,907 $100,463,280 $111,968,328 $123,628,942 Restricted Unrestricted 7,199,925 3,227,395 44,966 2,040,842 7,208,752 Total business-type activities net position $93,367,629 $93,325,302 $100,508,246 $114,009,170 $130,837,694 Primary government Net investment in capital assets $340,512,258 $344,667,951 $371,812,644 $408,211,968 $439,798,899 Restricted 54,478,093 96,316,988 117,752,590 138,701,991 160,119,056 Unrestricted (79,608,509) (126,606,186) (113,983,454) (128,247,319) (136,972,493) Total primary government net position $315,381,842 $314,378,753 $375,581,780 $418,666,640 $462,945,462 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 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Millions Unrestricted Restricted Invested in Capital Assets Net of Related Debt 151 CITY OF SOUTH SAN FRANCISCO Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Expenses Governmental Activities: General Government $7,801,328 $8,360,945 $7,155,035 $8,421,857 Fire Department 20,749,323 22,746,291 21,200,903 22,005,883 Police Department 23,330,208 24,756,958 24,376,379 23,910,436 Public Works 21,269,281 15,773,710 14,980,417 14,493,039 Park, Recreation and Maintenance Services 11,641,892 12,570,236 12,658,309 12,383,880 Library 4,754,760 4,615,967 4,310,550 4,300,885 Economic and Community Development 8,702,949 16,126,427 5,525,541 5,928,316 Interest on Long -Term Debt 3,328,244 52,139 Total Governmental Activities Expenses 101,577,985 105,002,673 90,207,134 91,444,296 Business-Type Activities: Sewer Rental 19,446,739 20,870,522 19,301,103 23,969,579 Parking District 769,117 792,609 943,859 503,014 Storm Water 1,010,093 1,655,950 1,078,868 1,234,616 Total Business-Type Activities Expenses 21,225,949 23,319,081 21,323,830 25,707,209 Total Primary Government Expenses $122,803,934 $128,321,754 $111,530,964 $117,151,505 Program Revenues Governmental Activities: Charges for Services: General Government $2,032,292 $1,951,016 $5,785,598 $3,946,302 Fire Department 3,697,665 2,987,956 3,304,952 3,520,275 Police Department 2,599,149 2,640,146 2,805,640 2,370,736 Public Works 3,607,224 2,926,227 4,734,813 5,071,729 Park, Recreation and Maintenance Services 3,178,276 3,433,567 3,571,947 3,708,272 Library 143,971 125,416 138,827 120,850 Economic and Community Development 4,968,383 3,457,020 5,800,849 5,337,177 Operating Grants and Contributions 5,650,685 5,455,010 5,601,916 5,753,845 Capital Grants and Contributions 1,471,416 4,036,786 1,538,225 632,735 Total Government Activities Program Revenues 27,349,061 27,013,144 33,282,767 30,461,921 Business-Type Activities: Charges for Services: Sewer Rental 19,310,286 19,338,107 19,155,467 19,798,033 Parking District 760,248 732,932 785,586 819,051 Storm Water 409,498 427,291 409,458 407,640 Operating Grants and Contributions 5,936,527 6,137,401 7,619,601 6,242,687 Capital Grants and Contributions Total Business-Type Activities Program Revenue 26,416,559 26,635,731 27,970,112 27,267,411 Total Primary Government Program Revenues $53,765,620 $53,648,875 $61,252,879 $57,729,332 Net (Expense)/Revenue Governmental Activities ($74,228,924) ($77,989,529) ($56,924,367) ($60,982,375) Business-Type Activities 5,190,610 3,316,650 6,646,282 1,560,202 Total Primary Government Net Expense ($69,038,314) ($74,672,879) ($50,278,085) ($59,422,173) 152 2016 2017 2018 2019 2020 2021 $9,044,518 $10,253,403 $12,506,188 $12,139,671 $15,378,452 $19,611,586 22,488,964 25,750,126 30,352,387 31,986,738 34,442,874 34,492,838 23,158,168 25,838,242 30,732,288 32,994,122 36,095,698 33,376,962 11,916,572 12,396,998 18,379,278 20,425,958 17,737,243 7,567,745 12,901,657 15,217,677 17,162,377 17,962,298 19,620,848 17,159,696 4,442,577 5,184,282 5,910,406 6,241,093 6,728,102 6,274,811 7,603,275 8,927,162 10,094,626 10,557,116 9,837,938 11,728,168 512,376 2,200,344 91,555,731 103,567,890 125,137,550 132,306,996 139,841,155 132,412,150 18,273,580 22,661,768 24,397,607 25,719,049 26,213,885 26,644,459 894,769 940,181 1,202,319 896,994 1,116,840 1,338,092 1,289,465 1,333,409 1,026,948 1,188,182 1,206,694 922,057 20,457,814 24,935,358 26,626,874 27,804,225 28,537,419 28,904,608 $112,013,545 $128,503,248 $151,764,424 $160,111,221 $168,378,574 $161,316,758 $4,194,563 $2,225,049 $1,966,755 $7,930,983 $5,217,199 $6,968,307 3,450,524 4,242,940 6,327,921 6,052,804 6,073,247 5,952,872 2,076,837 2,146,909 2,230,824 2,351,491 2,092,791 1,642,726 10,361,525 10,869,608 24,727,897 27,811,701 23,355,636 24,859,635 3,744,137 3,756,369 4,489,665 4,293,474 2,872,786 1,165,630 164,271 96,987 102,124 105,466 97,603 19,037 6,131,463 3,911,597 13,052,441 14,214,991 9,067,781 4,275,808 5,581,492 4,533,539 5,827,149 12,091,079 8,757,554 8,021,958 1,147,337 577,995 2,515,868 1,629,730 4,930,640 5,498,698 36,852,149 32,360,993 61,240,644 76,481,719 62,465,237 58,404,671 19,569,341 19,897,769 22,417,156 24,078,076 24,296,811 24,705,044 843,199 916,687 1,084,472 1,180,538 1,003,222 764,514 412,105 418,840 656,315 540,679 412,707 410,745 5,802,788 5,763,645 5,834,455 6,452,950 7,440,041 14,815,460 26,627,433 26,996,941 29,992,398 32,252,243 33,152,781 40,695,763 $63,479,582 $59,357,934 $91,233,042 $108,733,962 $95,618,018 $99,100,434 ($54,703,582) ($71,206,897) ($63,896,906) ($55,825,277) ($77,375,918) ($74,007,479) 6,169,619 2,061,583 3,365,524 4,448,018 4,615,362 11,791,155 ($48,533,963) ($69,145,314) ($60,531,382) ($51,377,259) ($72,760,556) ($62,216,324) 153 CITY OF SOUTH SAN FRANCISCO Changes in Net Position (continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes $37,379,175 $26,420,861 $22,890,828 $24,650,648 Sales Taxes 11,691,564 12,931,805 12,725,141 13,932,125 Transient Occupancy Tax 8,619,170 9,659,281 11,174,017 12,947,473 Franchise fees Other Taxes 7,089,687 7,588,471 8,141,010 8,650,056 Motor Vehicle In-Lieu 168,214 33,767 40,074 26,995 Property taxes in lieu of vehicle license fees 5,153,384 4,955,873 5,319,154 5,551,651 Interest Earnings 2,384,207 809,721 1,108,177 629,036 Gain from sale of property Other 9,300,137 1,965,744 2,012,444 4,577,239 Extraordinary Item (107,717,428) Transfers (785,309) (906,857) (1,041,120) (1,429,308) Special items 11,873,226 Total Government Activities (26,717,199) 75,331,892 62,369,725 69,535,915 Business-Type Activities: Interest Earnings 149,242 95,177 153,353 126,874 Transfers 785,309 906,857 1,041,120 1,429,308 Total Business-Type Activities 934,551 1,002,034 1,194,473 1,556,182 Total Primary Government ($25,782,648) $76,333,926 $63,564,198 $71,092,097 Change in Net Position Governmental Activities ($100,946,123) ($2,657,637) $5,445,358 $8,553,540 Business-Type Activities 6,125,161 4,318,684 7,840,755 3,116,384 Total Primary Government ($94,820,962) $1,661,047 $13,286,113 $11,669,924 154 2016 2017 2018 2019 2020 2021 $26,438,620 $29,023,618 $29,551,445 $33,446,750 $37,415,367 $41,561,039 15,188,686 24,087,776 28,340,393 31,843,568 31,855,027 33,039,229 13,393,437 13,631,507 13,978,533 17,091,222 13,829,025 6,710,271 3,982,092 4,090,073 4,403,493 4,469,808 4,594,577 4,498,202 5,124,574 5,708,187 5,871,096 4,995,404 4,515,376 4,529,764 26,708 28,933 34,452 32,200 53,089 49,785 5,770,060 6,133,230 6,438,199 7,150,867 7,457,005 4,888,696 1,354,266 622,518 1,097,916 4,808,664 6,384,253 941,856 840,298 2,334,407 2,365,820 5,180,288 7,799,392 9,152,218 11,602,214 (919,547) (1,105,038) (1,997,377) (2,101,222) (8,060,646) (4,984,746) 45,205,422 (7,154,626) (531,591) 276,939 (1,378,533) 72,693,303 129,792,046 85,743,812 109,845,360 107,472,230 101,457,777 289,201 27,710 37,072 633,704 824,916 52,623 919,547 1,105,038 1,997,377 2,101,222 8,060,646 4,984,746 1,208,748 1,132,748 2,034,449 2,734,926 8,885,562 5,037,369 $73,902,051 $130,924,794 $87,778,261 $112,580,286 $116,357,792 $106,495,146 $17,989,721 $58,585,149 $21,846,906 $54,020,083 $30,096,312 $27,450,298 7,378,367 3,194,331 5,399,973 7,182,944 13,500,924 16,828,524 $25,368,088 $61,779,480 $27,246,879 $61,203,027 $43,597,236 $44,278,822 155 CITY OF SOUTH SAN FRANCISCO Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Fund Nonspendable $90,167 $805,677 $14,163 $1,134 $33,580 $474 $106 $372 $574 $4,099 Restricted 20,582,335 19,201,948 18,372,633 16,354,141 Committed 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 12,372,202 Assigned 840,365 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,431,178 Unassigned 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 41,597,381 Total General Fund $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 $75,759,001 (a) All Other Governmental Funds Nonspendable $39,205 Restricted $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 $208,220,607 Assigned 2,076,065 1,105,320 6,188,554 367,023 29,363,924 26,145,062 Unassigned (1,388,956) (1,379,895) (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649 Total all other governmental funds $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 $234,365,669 #REF!#REF!62,537,680 56,541,226 62,399,893 62,399,893 70,866,831 139,879,185 310,124,670 (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 $350,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thousands Total Committed Total Unassigned Total Assigned Total Restricted Total Nonspendable 156 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) 2012 2013 2014 2015 Revenues Property Taxes $38,174,655 $27,077,697 $23,010,136 $24,650,648 Other Taxes 28,866,546 31,894,811 33,931,446 38,275,478 Intergovernmental revenues 11,580,530 13,054,594 10,757,440 10,453,071 Interest and Rents 4,955,223 3,238,089 3,632,693 3,531,966 Licenses and permits 3,056,507 3,054,451 4,366,271 4,795,158 Charges for services 10,088,070 9,275,724 16,864,409 13,387,712 Fines and forfeitures 2,184,234 1,753,682 1,528,319 1,221,413 Other 3,000,563 1,837,675 2,249,728 4,660,668 Total Revenues 101,906,328 91,186,723 96,340,442 100,976,114 Expenditures Current: General government 6,485,219 6,658,532 5,970,429 7,167,969 Fire Department 18,812,861 20,877,917 20,163,759 21,247,989 Police Department 21,217,818 22,542,135 23,309,568 23,611,743 Public works 14,253,609 9,186,493 16,791,894 15,923,071 Recreation and Community Services 10,101,408 10,927,433 11,552,502 11,826,407 Library 4,272,701 4,112,570 3,987,928 4,247,650 Economic and Community Development 8,184,334 20,512,545 5,972,966 5,917,508 Other 480,290 Capital outlay 8,894,514 Debt service: Principal repayment 1,752,000 453,381 352,674 Interest and fiscal charges 1,817,764 52,139 Total Expenditures 95,792,228 94,869,764 88,202,427 90,775,301 Excess (deficiency) of revenues over (under) expenditures 6,114,100 (3,683,041)8,138,015 10,200,813 Other Financing Sources (Uses) Transfers in 108,413,018 4,467,530 21,870,234 17,983,227 Transfers (out)(109,646,766)(6,780,943) (24,149,582)(19,717,102) Lease revenue bonds issued Premium on bonds Sale of capital assets Total other financing sources (uses)(1,233,748)(2,313,413)(2,279,348)(1,733,875) Net Change in fund balances before extraordinary and special items 4,880,352 (5,996,454)5,858,667 8,466,938 Extraordinary item (110,397,363) Special item Net change in fund balances ($105,517,011) ($5,996,454)$5,858,667 $8,466,938 Debt service as a percentage of noncapital expenditures 4.1%0.1%0.6%0.4% For The Fiscal Year Ended June 30, 158 2016 2017 2018 2019 2020 2021 $26,438,620 $35,156,848 $35,989,644 $40,597,617 $44,872,372 $46,449,735 41,811,097 49,608,385 54,597,272 60,721,378 57,214,783 51,008,432 12,360,354 4,019,771 8,433,240 13,179,593 18,317,060 17,867,273 4,207,453 3,100,692 3,524,727 7,231,303 8,864,998 3,620,391 6,896,897 7,823,403 14,674,809 15,381,416 15,900,500 15,589,002 15,386,358 14,485,367 31,961,419 41,055,659 27,442,005 23,191,413 791,756 899,118 423,604 926,729 814,354 535,750 2,439,579 2,906,625 6,454,460 7,994,701 3,067,691 7,893,148 110,332,114 118,000,209 156,059,175 187,088,396 176,493,763 166,155,144 8,469,924 9,399,930 10,403,449 10,166,977 12,453,262 12,112,319 24,175,340 25,632,366 26,059,072 27,576,879 28,161,459 31,817,325 25,458,986 25,998,097 26,970,854 28,533,292 37,468,430 70,954,323 14,846,346 12,143,965 23,859,399 38,459,963 40,070,330 51,501,254 13,234,028 14,897,157 15,468,370 16,530,603 17,130,302 15,795,645 4,681,188 5,157,355 5,379,836 5,628,693 5,940,870 5,903,883 7,907,655 8,943,111 9,338,793 9,085,390 8,780,903 11,227,503 395,749 274,183 256,298 333,024 723,901 3,490,091 656,000 23,000 2,382,000 3,464,000 1,210,000 975,000 739,146 2,307,460 99,825,216 102,469,164 120,118,071 139,778,821 152,678,603 206,084,803 10,506,898 15,531,045 35,941,104 47,309,575 23,815,160 (39,929,659) 8,143,075 14,327,130 26,486,651 22,230,499 38,117,966 37,970,252 (13,193,699)(16,368,499)(30,795,941)(24,581,721)(46,647,023)(43,202,081) 43,905,000 86,410,000 10,242,530 18,116,565 1,016,276 3,990,605 840,298 (2,718,691) (5,050,624)(1,025,093)(318,685)(1,510,924)45,618,473 96,576,045 5,456,274 14,505,952 35,622,419 45,798,651 69,433,633 56,646,386 20,582,335 (7,154,626)(531,591)276,939 (1,378,533) $5,456,274 $35,088,287 $28,467,793 $45,267,060 $69,710,572 $55,267,853 0.7%0.0%2.2%3.0%1.7%2.9% For The Fiscal Year Ended June 30, 159 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) 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 0.13638% 2021 9,020,710,463 2,872,601,136 8,744,250,213 507,383,957 21,144,945,769 2,056,800,753 23,201,746,522 23,201,746,522 0.13622% Source: HdL Coren & Cone, San Mateo County Assessor 2011/12-2020/21 Tax Property Values. (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 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Millions Series1 Series2 160 Fiscal Basic School Total Direct/Overlapping Year Levy Districts Tax Rates 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) 2021 1.000 0.1893 1.1893 (1,27) Notes: Source: HDL, Coren & Cone (San mateo County Assessor 2010/11- 2020/21 Tax Rate Table). (27) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0563, which includes SSFUSD & San Mateo Jr College bond. 4 has a rate of 1.1543 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a rate of 1.1112, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. Coll bonds. (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. Coll 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 Coll 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 Coll 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. Coll 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. (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 Coll 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 Coll bond. (21) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson 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 Coll 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 Coll bond. 161 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.$2,953,030,213 1 12.73% $1,918,102,967 1 13.87% HCP Oyster Point III LLC 795,928,157 2 3.43% -- ---- ARE San Francisco LLC 738,355,548 3 3.18% -- ---- Slough SSF LLC 685,393,965 4 2.95% -- ---- GNS South Tower LP 633,313,121 5 2.73% -- ---- United Airlines Inc 426,814,705 6 1.84% 157,685,825 6 1.14% Britannia Pointe Grand LP 322,530,116 7 1.39% 274,970,686 5 1.99% ARE East Grand Avenue Owner LLC 240,428,480 8 1.04% -- ---- KP Oyster Point LLC 224,702,833 9 0.97% -- ---- BMR 1000 Gateway LP 217,352,597 10 0.94% -- ---- Slough BTC LLC -- ---- 549,058,893 2 3.97% Slough SSF LLC De -- ---- 467,741,887 3 3.38% ARE San Francisco -- ---- 355,928,252 4 2.57% ASN Solaire LLC -- ---- 144,242,296 7 1.04% Gateway Center LLC De -- ---- 132,623,657 8 0.96% Britannia Biotech Gateway LP -- ---- 129,898,536 9 0.94% Myers Peninsula Venture LLC -- ---- 121,804,011 10 0.88% Subtotal $7,237,849,735 31.20% $4,252,057,010 30.75% Total Net Assessed Valuation: Fiscal Year 2020-21 $23,201,746,522 Fiscal Year 2011-12 $13,827,036,118 HdL Coren & Cone, 2011/12 & 2020/21 Top Ten Property Taxpayers (Net Values). San Mateo County Assessor 2011/12 & 2020/21 Combined Tax Rolls and the SBE Non Unitary Tax Roll Source: 2020-21 2011-12 CITY OF SOUTH SAN FRANCISCO Principal Property Tax Payers Current Year and Nine Years Ago 163 Fiscal Percent of Year Allocations (5) Collections Delinquencies Delinquent taxes 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% 2021 22,660,544 (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 $23 $24 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Millions 164 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 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 2021 3,595,152 156,980,389 285,529 160,861,070 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) 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 3.48% 1,501.98 2021 2,325,000 60,480,459 62,805,459 223,666,529 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 $20 $40 $60 $80 $100 $120 $140 $160 $180 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MillionsTotal Governmental Total Business 165 CITY OF SOUTH SAN FRANCISCO COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2021 2019-20 Assessed Valuation:$23,201,746,522 Redevelopment Incremental Valuation:- Adjusted Assessed Valuation:$23,201,746,522 Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2021 % Applicable (1) Debt 6/30/21 San Mateo Community College District $761,305,961 9.062% $68,989,546 Jefferson Union High School District 265,554,630 3.416 9,071,346 South San Francisco Unified School District 163,485,887 90.949 148,688,779 Brisbane School District 15,356,439 20.302 3,117,664 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $229,867,335 OVERLAPPING FUND DEBT: San Mateo County General Fund Obligations $640,119,345 9.062% $58,007,615 San Mateo County Board of Education Certificates of Participation 6,840,000 9.062 619,841 San Mateo County Flood Control and Sea LRR District General Fund Obligations 15,425,000 61.030 9,413,878 South San Francisco Unified School District General Fund Obligations 3,185,000 90.949 2,896,726 Jefferson Union High School District Certificates of Participation 47,490,000 3.416 $1,622,258 City of South San Francisco Lease Revenue Bonds 156,980,389 100.000 129,380,000 City of South San Francisco Loans Payable 3,595,152 100.000 $3,595,152 City of South San Francisco Capital Leases 285,529 100.000 285,529 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$205,820,999 TOTAL DIRECT DEBT 133,260,681 Total Overlapping Debt $302,427,653 COMBINED TOTAL DEBT $435,688,334 (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 0.99% Total Direct Debt 0.57% Combined Total Debt 1.88% 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. 166 ASSESSED VALUATION:$23,201,746,522 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$870,065,495 LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0 LEGAL BONDED DEBT MARGIN $870,065,495 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 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% 2021 870,065,495 0 870,065,495 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, 2021 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. 167 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 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 2021 33,885,393 21,401,332 12,484,061 330,000 120,593 450,593 27.71 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 $40 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MillionsRevenue (1) Expenses (2) 168 Fiscal Year 2016 2017 2018 2019 2020 2021 Revenues Service Charges $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 $24,526,952 Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 Developer Fees Other Cities' Participation (1)5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 9,138,461 Total Revenues $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 $33,885,393 Operating Expenses (2)$18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,332 Wastewater System Net Revenues $6,850,880 $12,170,248 $9,208,729 $9,995,846 $10,742,943 $12,484,061 Parity Debt Service (3) State Water Resources Control Board Loans $5,449,692 $5,454,747 $5,469,175 $5,477,075 $5,485,587 $5,497,048 CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 Total Parity Debt $5,627,728 $5,622,031 $5,624,881 $5,620,683 $5,616,402 $5,614,223 Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 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. CITY OF SOUTH SAN FRANCISCO SEWER DEBT SERVICE COVERAGE SEWER RENTAL ENTERPRISE FUND LAST SIX FISCAL YEARS 169 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 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 2021 2021 Bond was paid off in fiscal year 2017 Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage 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 2021 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) 170 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 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% 2020 67,135 2,895,980 43,136 8.9% 765,245 8.77% 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% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 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 $45,000 City Per Capita Personal Income 171 Percentage Percentage Number of of Total City Number of of Total City Employer Employees Rank Employment Employees Rank Employment Genentech Inc.8,632 1 12.9% 8,451 1 13.2% ABBVIE 1,000 2 1.5% 0.0% Costco Wholesale (4 stores) 834 3 1.2% 485 2 Amazon.com Services, Inc 706 4 1.1% 0.0% Life Technologies Corporation 622 5 0.9% Verily Life Sciences LLC 555 6 0.8% Goodwill Industries of SF 375 7 0.6% Sutro Biopharma, Inc 321 8 0.5% MRL San Francisco, LLC 317 9 0.5% ZS Associates, Inc 317 9 0.5% Frank & Grossman Landscape Contractors 265 10 0.4% 0.0% Amgen San Francisco LLC 451 3 0.7% Guardsmark LLC 347 4 0.5% American Etc Inc/ Royal Laundry 321 5 0.5% Bay Bread LLC (2 stores) 288 6 0.4% Elan Pharmaceuticals (3 locations) 283 7 0.4% DBI Beverage 232 8 0.4% SBM Site Services, LLC 232 8 0.4% Oroweat/ Entenmann's 233 9 0.4% Monogram Biosciences Inc 210 10 0.3% Subtotal 13,944 20.8% 11,533 18.0% Total City Population 67,135 64,067 Data Sources: (1) SSF Business License Database- Business licenses expiring 12/31/21. (2) City of South San Francisco CAFR 2011-12 (3) Population: HDL/California State Dept of Finance 2020. 2011-122020-21 CITY OF SOUTH SAN FRANCISCO Principal Employers Current Year and Nine Years Ago 172 Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government (1) 36.60 36.60 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60 Fire Department (2)82.48 82.48 82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68 Police Department 110.65 115.65 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92 Park, Rec. & Maintenance Services 107.86 111.66 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84 Library 35.34 35.35 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56 Economic and Comm. Development 24.45 23.45 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00 Public Works (2) 43.03 45.02 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00 Water Quality Control Plant 38.82 38.82 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50 Total 479.23 489.03 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10 Notes: 1. City Council, City Treasurer, City Clerk, City Manager, 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 FY2012-FY2021 Adopted 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 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government (1)Fire Department (2)Police Department Park, Rec. & Maintenance Services Library Economic and Comm. Development Public Works (2)Water Quality Control Plant 173 2015 2016 2017 2018 2019 2020 2021 Function/Program Public safety: Fire: Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 Police: Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 Law violations: Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 Physical arrests (adult and juvenile) 1,933 2,071 1,870 1,891 1,943 1,871 1,635 Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 Public works Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 Potholes repaired (square miles prior)/(square feet) 0.11 2 0 (2) 3221 410 190 165 Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 Culture and recreation: Recreation class participants (5) 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282 Library: Total items borrowed 643,630 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869 Items in collection 130,106 (1) 208,400 209,895 219,114 228,224 247,393 260,205 Wastewater Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 Other connections 128 131 140 140 140 140 140 Average daily sewage treatment (millions of gallons) 8.89 7.92 8.41 8.62 8.62 7.12 6.76 Note: N/A denotes information not available. (1) New items added for Grand Library and electronic books are also included. (2) Beginning 2018, pothole repairs will be measured by square feet instead of square miles. (3) Fewer items borrowed in FY2020 and FY2021 due to COVID-19 closures. (4) Summer camp and traditional sports programs included. Lower participant counts due to COVID-19 limitations and closures. (5) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2015 did not. CITY OF SOUTH SAN FRANCISCO Operating Indicators by Function/Program Last Seven Fiscal Years 174 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Function/Program Public safety: Fire stations 5555555555 Police stations (2)1111111111 Police Fleet 51 51 50 53 53 52 59 63 60 63 Public works Miles of streets 127 127 127 127 127 127 127 127 127 127 Street lights (5) 4,160 4,505 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581 Parking District lights (6) 20 20 20 20 20 16 16 16 16 16 Traffic Signals 74 74 74 74 76 76 76 76 76 80 Culture and recreation: Community services: City parks 28 28 28 28 28 28 28 28 28 28 City parks acreage 190 190 190 190 190 190 190 210 210 210 Playgrounds (7) 24 24 24 24 24 24 24 24 34 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 175 2019 2020 2021 Transient Occupancy Tax Detail 13% TOT collected $15,535,213 $12,591,459 $6,215,172 1% Measure I Special Tax 1,556,009 1,114,911 495,099 Total TOT Collection $17,091,222 $13,706,371 $6,710,270 1% Measure I Special Tax Use Police 311,202 222,982 99,020 Fire 311,202 222,982 99,020 Library 311,202 222,982 99,020 Parks 311,202 222,982 99,020 Recreation 311,202 222,982 99,020 Total 1% Measure I Special Tax $1,556,009 $1,114,911 $495,099 * 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 Three Fiscal Years 176 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. Report regarding awarding a construction contract to MCK Services,Inc.for the 2022 West Pavement Rehabilitation Project (No.st2204,Bid No.2664)in an amount not to exceed $9,479,132.30,authorizing a total construction contract authority budget of $10,479,132.30. (Angel Torres, Senior Civil Engineer) RECOMMENDATION Staff recommends that the City Council adopt a resolution awarding a construction contract to MCK Services,Inc.of Martinez,California for the 2022 West Pavement Rehabilitation Project (No.st2204,Bid No.2664)in an amount not to exceed $9,479,132.30,authorizing a total construction contract authority budget of $10,479,132.30,and authorizing the City Manager to execute the agreement on behalf of the City. BACKGROUND/DISCUSSION With over 140 centerline miles of roadway,the City of South San Francisco pavement network represents a significant asset that is highly visible and important to the community and local businesses. Every two years,the City participates in the Metropolitan Transportation Commission (MTC)sponsored Pavement Management Technical Assistance Program (P-TAP).The program includes a visual inspection and condition rating of each street segment in the City.City participation is required to qualify for grant funding from various local,state,and federal resources.The inspection results and historical data are entered into “StreetSaver,”the MTC’s pavement management software.The program calculates an overall pavement condition index (PCI)and recommends preventive maintenance and rehabilitation projects based upon the City’s budget.The program recommends expenditures to maintain or improve the current PCI.The City participated in this process this past year as part of P-TAP Round 20.South San Francisco’s current PCI of 71 is “Good” by MTC standards. Utilizing data received from MTC’s StreetSaver program,the City implements a Pavement Management Program (PMP), which is included as part of the Capital Improvement Program (CIP). At the March 10,2021 Regular City Council Meeting,Council approved a consulting services agreement with Nichols Consulting Engineers (NCE)of Richmond,California for the design of the 2022 West of 101 Pavement Rehabilitation Project. By performing the majority of required maintenance in one large project,as opposed to smaller annual projects, the City is able to maximize economies of scale;realizing significant savings in design,construction mobilization,and future street maintenance costs.This project will also bring meaningful and long-lasting improvements to the community,extend ADA accessibility on local streets,and enhance street aesthetics and overall function.It also provides more immediate improvement in the network pavement condition index (PCI)City of South San Francisco Printed on 2/18/2022Page 1 of 7 powered by Legistar™ File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. overall function.It also provides more immediate improvement in the network pavement condition index (PCI) and a positive message of significant roadway improvements to the public.The rehabilitation work plan including recent rehabilitation projects will address over 25 centerline miles of streets (19%of entire network) with approximately $24 million total project costs.The overall network PCI will improve from 71 to 85 (good to excellent condition) upon completion of construction in 2022. Completing repairs on all recommended rehabilitation streets candidates west of 101 will reduce outyear maintenance costs from $4.5 Million dollars to an estimated $2.0 Million dollars annually.It’s estimated that the City will save approximately $15.5 Million dollars in rehabilitation costs over the next 15 years when these annual savings are combined with the upfront savings from the project’s economy of scale. Given the scale of this project,staff separated the paving portion of the project into two sections,divided roughly along Junipero Serra Boulevard (JSB).Two smaller sections allow for better project management and encourages more contractors to submit bids.Staff research revealed very few firms capable of the project in its entirety. The two sections will be concurrent and completed by November 2022. The 2022 West of Junipero Serra Boulevard Section of the Pavement Rehabilitation Project (Project)will rehabilitate approximately 217,057 square yards (or 6.9 centerline miles) of city streets. City streets included in this project include segments of: ·Avalon Drive ·Bourbon Court ·Callan Boulevard ·Carter Drive ·Duhallow Way ·Erin Place ·Galway Place ·Gellert Boulevard ·Greendale Drive ·Junipero Serra Boulevard ·Longford Drive ·Radburn Drive ·Westborough Boulevard The scope of the pavement rehabilitation work consists of asphalt pavement milling (grinding),base failure repairs,and crack sealing that is capped with hot mix asphalt (HMA)overlay;removal of existing surfacing and base and replacement with hot mix or rubberized hot mix asphalt (RHMA);and cold in-place recycling that is capped with either HMA or RHMA.Some of the elemental work included consists of replacement of existing City utility covers in the roadway,replacement of concrete curb ramps with ADA compliant curb ramps, replacement of sections of fractured or settled concrete curb and gutter,valley gutter and concrete median striping,adjustment to existing drain inlets and underground storm drain lines,protection of existing survey monuments in roadway,replacement of speed humps,and reinstallation of traffic striping and pavement City of South San Francisco Printed on 2/18/2022Page 2 of 7 powered by Legistar™ File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. monuments in roadway,replacement of speed humps,and reinstallation of traffic striping and pavement markings as identified in the attached vicinity map (Attachment 1). The Project will install ADA compliant concrete curb ramps at approximately 104 locations ahead of the pavement rehabilitation work. The work on the Project will be coordinated so that residents and the public have alternate routes (Detours)to access the area during construction. Provisions in the contract specifications have been established so that the Contractor is responsible for delivering advance notification to residents in the neighborhoods directly impacted by the proposed improvements.This work will result in temporary street parking impacts and limited access as work is underway.Temporary “No Parking”signs will be placed on the streets by the Contractor noticing impacted sections during construction. Overview of City’s Procurement Process The City’s procurement process is governed by both state and local law.State law requires contracts for construction to be competitively bid pursuant to a set of specific,established rules.In particular,the City is required to award construction contracts to the “lowest responsible bidder”after providing notice in accordance with law. (Pub. Contract Code §§ 20162, 20164.) However,in awarding contracts for the purchase of professional services,equipment and supplies,the City has some latitude.State law requires the City to adopt regulations and policies to govern such service and supplies procurement,but otherwise provides the City flexibility in determining relevant requirements as long as they are consistent with applicable state law.(Gov.Code §54202.)Chapter 4.04 of the Municipal Code and the City’s Purchasing Procedures (Administrative Instruction Section IV,No.1)govern the City’s purchasing policies and contract procurement processes. The City’s purchasing ordinance distinguishes between three primary types of procurement methods as follows: 1.Competitive Bidding for Construction Projects Public projects are specifically defined under the Public Contract Code,and generally involve any construction project that is paid with public funds or those projects involving improvements, demolition or other work on public property or facility.Public projects are required to be procured through competitive bidding and the City must award the contract to the lowest bidder whose bid complies with all of the City’s solicitation requirements and demonstrates that the bidder is able to perform the work.Under the City’s policy,different levels of competitive bidding are required depending on the dollar limit of the underlying project. For these contracts,cost is generally the sole determining factor,and the lowest responsible bidder is City of South San Francisco Printed on 2/18/2022Page 3 of 7 powered by Legistar™ File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. awarded the project even if another bidder appears to be more skilled but is more expensive. 2.Open Market Procedures for Vendors (Supplies and Equipment) Open Market Procedures is the City’s vendor selection process for purchase of goods,supplies,and professional services.These rules do not apply to,and may not be used for,public construction projects. Contracts for the purchase of goods and services that exceed $10,000 requires staff to utilize open market procedures.If the contract is $25,000 or less,staff must obtain at least three quotes,which are informal offers to perform work at a stated price.If the contract is greater than $25,000,staff will be required to solicit the project,such as issuing a Request for Proposals (“RFPs”)and obtain at least three written responses. Under this vendor selection process,cost can be only one factor in determining which vendor the City will ultimately select for services,equipment,or supplies.This requirement is similarly reflected under SSFMC § 4.04.080. Thus,when utilizing the open market vendor selection process,the City is focused on the skill, ability,and expertise of the entity or person to be able to provide the service,equipment,or goods to the City.The selection is based on competence,professional qualifications,and overall value to the City with cost being only one factor in the determination of an award. Federally Funded Procurements for Vendors (Supplies and Equipment) Contracts that receive federal funding are required to incorporate and comply with additional terms and conditions.The City’s Purchasing Procedures also provide guidance on procuring supplies and equipment contracts that are federally funded.Federally funded procurements also require a written procedure for conducting evaluations and for selecting recipients and awarding the contract to the responsible firm whose proposal is most advantageous to the City with price being only one factor.It is also important to note that federally funded procurements do not include state or local geographical preferences unless specifically authorized by federal law.Each evaluation is a non-discrimination and equal opportunity for all vendors. 3.Open Market Procedures for Architectural and Engineering (A&E) Professional Services For certain professional services such as architectural,engineering,environmental,land surveying,or construction project management,the Government Code also specifically requires that such services not be awarded solely based on price,but instead based on demonstrated competence.(Gov.Code § 4526.)Both the state law provision and the City’s policy reflect the legislative view that when acquiring such services,the City does not necessarily receive the best value when it pays the lowest price. (See e.g., California Attorney General Op. No. 94-819 (February 9, 1995). City of South San Francisco Printed on 2/18/2022Page 4 of 7 powered by Legistar™ File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. General Request for Proposals (RFP) Review Process RFPs are the City’s primary method to procure equipment,materials,supplies,and professional services. Typically,this process consists of the City issuing the RFP for proposals from vendor candidates to demonstrate their qualifications and abilities to provide the City with desired services, equipment/supplies, or other goods. The City’s RFP will contain evaluation and scoring criteria used to rank vendor candidates based on the strength of their proposals. Typical factors include demonstrated knowledge,qualifications,industry reputation,implementation schedule, ease of implementation and cost.Factors not typically considered include the size of the firm and geographic location of the firm (i.e.,whether the firm is local,in-or out-of-state),race,sex or gender.However,the City does have the discretion to include geography as one evaluation factor and to select local vendors where the quality and price are equal between local and non-local vendors and federal funds are not used. The City assembles an evaluation panel comprised primarily of City staff and third-party consultants and personnel as necessary,to review and score the proposals,negotiate with the top-ranked candidate,and recommend the selection for City Council approval.Staff will also maintain records of the method of evaluation, final vendor selection and negotiations for a final contract. Once candidates are ranked and a top-ranked candidate is identified,staff will negotiate terms of the contract with that candidate.The final award of the contract is subject to consideration and approval by the City Council.Staff will present the selection recommendation to the Council and prepare a resolution awarding the contract to the recommended candidate.If the Council does not support staff’s recommendation,then it could elect not to take any action on the resolution or contract award and may instead direct staff to either reconsider the other proposals selected or to re-issue the RFP which may include additional or different selection criteria and qualification requirements. Current Project: 2022 West Pavement Rehabilitation Project, st2204, Bid No. 2664. The current Project falls under Procurement Type 1: Competitive Bidding for Construction Projects. Staff advertised a notice inviting bids for the Project on December 27,2021,and January 03,2022.On February 10,2022,staff received eight (8)bid proposals in response to the notice inviting bids.Staff reviewed all bid proposals and identified that the lowest responsible bidder was MCK Services,Inc.of Martinez, California.Staff has verified the low bidder’s current contractor’s license with the California State Licensing Board and found it to be in good standing. The following is a summary of all bids received: Contractor "Base Bid" Schedule (Contract Award Based on "Base Bid" Total)Results 1 MCK Services, Inc.$9,479,132.30 2 Bay Cities Paving & Grading, Inc.$10,154,359.93 3 Interstate Grading & Paving, Inc.$10,318,744.74 4 Granite Rock Company $10,400,952.30 5 Ghilotti Bros., Inc.$10,686,602.73 6 Teichert Construction $10,715,225.00 7 O’Grady Paving, Inc.$10,905,789.20 8 DeSilva Gates Construction, Inc.$10,905,811.70 Engineers Estimate $10,885,872.25 City of South San Francisco Printed on 2/18/2022Page 5 of 7 powered by Legistar™ File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. Contractor "Base Bid" Schedule (Contract Award Based on "Base Bid" Total)Results 1 MCK Services, Inc.$9,479,132.30 2 Bay Cities Paving & Grading, Inc.$10,154,359.93 3 Interstate Grading & Paving, Inc.$10,318,744.74 4 Granite Rock Company $10,400,952.30 5 Ghilotti Bros., Inc.$10,686,602.73 6 Teichert Construction $10,715,225.00 7 O’Grady Paving, Inc.$10,905,789.20 8 DeSilva Gates Construction, Inc.$10,905,811.70 Engineers Estimate $10,885,872.25 The Project was advertised with a “Base Bid”schedule only.The selection of award of a contract is based on the lowest responsive bid for the Base Bid schedule. The Project budget is: MCK Services, Inc. Construction Contract $9,479,132.30 Construction Contingency (~10%)$1,000,000.00 Total Project Budget $10,479,132.30 The construction contingency will be used for any additional costs related to design changes during the construction operations.There are no Disadvantaged Business Enterprise (DBE)requirements since no federal funds are being utilized on the Project. FUNDING This Project (No.st2204)is included in the City of South San Francisco’s fiscal year 2021-2022 Capital Improvements Program.There are sufficient funds in FY 2021-2022 to cover the total construction contract costs. 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. CONCLUSION Awarding the construction contract to MCK Services,Inc.of Martinez,California,for the Project will reestablish the useful life of the curb ramps and pavement to support the City of South San Francisco ADA Self Evaluation and Transition Plan and the Pavement Maintenance. City of South San Francisco Printed on 2/18/2022Page 6 of 7 powered by Legistar™ File #:22-33 Agenda Date:2/23/2022 Version:1 Item #:14. Attachments: 1.Vicinity Map 2.Presentation City of South San Francisco Printed on 2/18/2022Page 7 of 7 powered by Legistar™ City of South San Francisco 2022 West Pavement Rehabilitation Project Department of Public Works CIP ST2204 (West) Engineering Division Attachment 1 – Vicinity Map - 2022 West Pavement Rehabilitation N Pavement Management Program 2022 West Pavement Rehabilitation Project ST2204 February 23, 2022