HomeMy WebLinkAbout08.03.2022 @630 Regular Measure W COCWednesday, August 3, 2022
6:30 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
TELECONFERENCE MEETING
Measure W Citizens' Oversight Committee
Regular Meeting Agenda
1
August 3, 2022Measure W Citizens' Oversight
Committee
Regular Meeting Agenda
TELECONFERENCE MEETING NOTICE
This meeting is being held in accordance with the Brown Act as currently in effect under the
provisions of Assembly Bill 361 which allows attendance by members of the Measure W Citizen’s
Oversight Committee, City staff and the public to participate and conduct the meeting by
teleconference. Teleconference locations are not open to the public.
ZOOM LINK BELOW -NO REGISTRATION REQUIRED
MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY:
Via Zoom:
Join Zoom meeting
https://ssf-net.zoom.us/j/86706807491
(Enter your email and name)
Join by One Tap Mobile:
+16699006833,,86706807491# US (San Jose)
+16694449171,,86706807491# US
Join by Telephone:
Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 669 444 9171 or +1 346 248 7799 or +1 253 215 8782 or +1 312 626
6799 or +1 386 347 5053 or +1 564 217 2000 or +1 646 931 3860 or +1 929 205 6099 or +1 301 715
8592 or 833 548 0282 (Toll Free) or 877 853 5257 (Toll Free) or 888 475 4499 (Toll Free) or 833 548
0276 (Toll Free)
Webinar ID: 867 0680 7491
Page 2 City of South San Francisco Printed on 1/5/2024
2
August 3, 2022Measure W Citizens' Oversight
Committee
Regular Meeting Agenda
Call To Order.
Roll Call.
Agenda Review.
Remote Public Comments
Speakers are allowed to speak on items on the agenda for up to three minutes. If there appears to be a
large number of speakers, speaking time may be reduced subject to the Committee's discretion to limit
the total amount of time for public comments (Gov. Code sec. 54954.3.(b)(1).). Comments that are not
in compliance with the Committee's rules of decorum may be summarized for the record if they are in
writing or muted if they are made live.
How to submit written Public Comment before the Meeting:
Members of the public wishing to participate are encouraged to submit public comments in writing in
advance of the meeting to email:[email protected] by 1:00 p.m. on the meeting date.
Emails received by the deadline will be forwarded to the Committee and read into the record by the
Committee Secretary. Emails received after 1:00 p.m. will not be read during the meeting but will be
entered into the record for the meeting. Approximately 300 words total can be read in three minutes.
How to provide Public Comment during the Meeting:
1) By Phone +1(669)900-6833 Webinar ID 867 0680 7491
Click *9 to raise a hand to speak.
Click *6 to unmute when called.
By One tap mobile: +16699006833,,86706807491 # US (San Jose) or +16694449171,,86706807491#
US
2) Online at https://ssf-net.zoom.us/j/86706807491
(Enter your email and name)
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 Committee Secretary 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.
Page 3 City of South San Francisco Printed on 1/5/2024
3
August 3, 2022Measure W Citizens' Oversight
Committee
Regular Meeting Agenda
MATTERS FOR CONSIDERATION
Welcome and Introductions.1.
Motion to approve the Minutes from the meeting of April 21, 2022.2.
Annual Reorganization of the Measure W Citizens’ Oversight Committee.3.
Informational report on Measure W fund balance and expenditures for FY 2021-22.
(Karen Chang, Finance Director)
4.
Adjournment
Page 4 City of South San Francisco Printed on 1/5/2024
4
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:22-640 Agenda Date:8/3/2022
Version:1 Item #:1.
Welcome and Introductions.
City of South San Francisco Printed on 1/5/2024Page 1 of 1
powered by Legistar™5
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:22-638 Agenda Date:8/3/2022
Version:1 Item #:2.
Motion to approve the Minutes from the meeting of April 21, 2022.
City of South San Francisco Printed on 1/5/2024Page 1 of 1
powered by Legistar™6
CALL TO ORDER Chair Zemke called the meeting to order at 6:00 p.m.
ROLL CALL Committee member DeGuzman, present
Committee member Del Rosario, present
Committee member Rey, absent
Committee member Romero (alternate), present
Vice Chair Brosnan, present
Chair Zemke, present
AGENDA REVIEW
No changes.
PUBLIC COMMENTS - Comments are limited to items on the Special Meeting Agenda.
• Mina Richardson
MATTERS FOR CONSIDERATION
1. Welcome and Introductions
Chair Zemke conducted introductions of members and staff introduced themselves to the members
and public.
2. Presentation to the Committee Regarding an Overview of Committee Roles and
Responsibilities. (Alexandra Wolf, Assistant City Attorney)
Measure W is a half-cent sales tax (0.5%) approved by voters on November 3, 2015, with the
taxation in effect on April 1, 2016. A general tax for any valid governmental purpose contributes to
the maintenance and enhancement of local services. Measure W tax revenue and expenditures are
reviewed and reported on by members of the Citizen's Oversight Committee. Assistant City
Attorney Wolf presented the report and provided an overview of the scope of responsibilities. The
Brown Act/open meeting laws and state conflict of interest rules apply to members.
MINUTES
SPECIAL MEETING
MEASURE W CITIZENS’ OVERSIGHT COMMITTEE
CITY OF SOUTH SAN FRANCISCO
THURSDAY, APRIL 21, 2022
6:00 p.m.
TELECONFERENCE MEETING
This meeting is being held in accordance with the Brown Act as currently in effect under the
provisions of Assembly Bill 361 which allows attendance by members of the Measure W
Citizens’ Oversight Committee, City staff and the public to participate and conduct the
meeting by teleconference. Teleconference locations are not open to the public.
7
SPECIAL MEASURE W COC MINUTES APRIL 21, 2022
MINUTES PAGE 2
The committee's authority is restricted to that delegated to it by the City's citizens and City Council.
Members are required to examine the City's annual financial audit and the Measure W tax findings.
The City's financial accounts are audited every year, and the collection and expenditure of Measure
W tax income are examined. Members must meet with the independent auditor to receive the audit
plan and audit findings for Measure W tax collection and expenditures. The COC examines whether
Measure W monies are being spent according to the terms of the measure.
The COC is not responsible for contracting, project management, or any other part of the Measure
W tax revenue to protect the oversight process's integrity and independence. The COC has no
authority over whether Measure W funds are spent appropriately at the project level.
Chair Zemke requested that a link to the presentation be emailed to members. City Clerk Govea
Acosta indicated that the presentation was uploaded to the website and emailed to members.
The following individual provided public comment:
• Mina Richardson
In response to the public comment received by Mina Richardson, City Clerk Govea Acosta
indicated that members of the Measure W COC do no have term limits.
3. Informational report on Measure W fund balance and expenditures for FY 2021-22 and
construction update. (Jason Wong, Acting Director of Finance, Jake Gilchrist Director of
Capital Projects, Philip Vitale, Deputy Director of Capital Projects and Matt Ruble,
Principal Engineer)
Acting Director of Finance Jason Wong presented the report and provided an overview of the
Measure W revenues and expenditures outside the city's General Fund. Committee Member Del
Rosario requested clarification on the projects and funding. Director of Capital Projects Jake
Gilchrist provided an overview of funding and project timelines. Vice-Chair Brosnan expressed his
concern about the lack of parking in the new Police Station and noted the importance of planning
accordingly for future projects.
Principle Engineer Matt Ruble presented the Pavement Rehabilitation Program and an overview of
expenditures and estimated project completion dates. Vice-Chair Brosnan thanked staff for their
commitment to improving road conditions throughout the city. Committee Member Del Rosario
requested clarification on the total rehabilitation cost of $24 million and completion dates.
Director of Capital Projects Philip Vitale presented the proposed Orange Memorial Aquatic Center
project, including funding and project timeline. Vice-Chair Brosnan inquired about the proposed
building size and pool use. Director Vitale indicated that the project continues to be evaluated, but
staff will ensure that the soccer field continues to be a usable space for the community.
Committee Member De Guzman requested clarification on the bond process, fund balance
carryover, and fiscal audit year. Acting Director of Finance Wong provided an overview of the
proposed bond and 2046 maturity date (25-year bond) and fund balance carryovers. He indicated
that the city's fiscal year ends June 30th, and audit reports are available online. Vice-Chair Brosnan
expressed his concern with current committee reports showing gross revenues and expenditures
only, noting that members received detailed reports of expenditures in the past. City Manager
Futrell provided an overview of the expenditures process and indicated that staff would form a
subcommittee of two members, as appointed by the Chair, to determine future accounting reports.
8
SPECIAL MEASURE W COC MINUTES APRIL 21, 2022
MINUTES PAGE 3
Chair Zemke appointed Vice-Chair Brosnan and Committee Member Del Rosario to serve as
members of the subcommittee.
The following individual provided public comment:
• Mina Richardson
ADJOURNMENT
Being no further business Chair Zemke adjourned the meeting at 7:35 p.m.
Submitted by: Approved by:
Rosa Govea Acosta, MMC, CPMC William Zemke
City Clerk Chair
Approved by the Measure W Citizens’ Oversight Committee: / /
9
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:22-639 Agenda Date:8/3/2022
Version:1 Item #:3.
Annual Reorganization of the Measure W Citizens’ Oversight Committee.
City of South San Francisco Printed on 1/5/2024Page 1 of 1
powered by Legistar™10
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:22-637 Agenda Date:8/3/2022
Version:1 Item #:4.
Informational report on Measure W fund balance and expenditures for FY 2021-22.(Karen Chang,Finance
Director)
RECOMMENDATION
This report is informational and requires no formal action from the Committee.
BACKGROUND/DISCUSSION
On November 3,2015,South San Francisco residents approved a half-cent sales tax by an overwhelming
majority.The adoption of Measure W ensures that the City of South San Francisco will be able to maintain and
enhance locally controlled City services that the community cares about and has come to expect -including
neighborhood police patrols,911 response times,crime and gang suppression programs,street maintenance and
pothole repair,maintaining youth/teen educational/recreational programs,providing a police operations center
that meets earthquake safety codes, and other essential services.
The voter-approved half-cent sales tax (Measure W)went into effect on April 1,2016.Since that time,the sales
tax proceeds have been accounted for separately from the City’s General Fund to track the commensurate
revenues and expenditures.
Major projects currently funded by Measure W are:
1.Community Civic Campus Program
a.Police Operations & 911 Dispatch Center (pf1707)
b.Library, Parks and Recreation and Community Theater/Council Chamber (pf2103)
2.Orange Memorial Park Project
a.Multi-Use Sports Fields
b.Aquatic Center
c.Park Playground
d.Park Bridges
3.Paving Program
Use to augment City efforts towards street maintenance and pothole repairs
City of South San Francisco Printed on 8/11/2022Page 1 of 4
powered by Legistar™11
File #:22-637 Agenda Date:8/3/2022
Version:1 Item #:4.
A.MEASURE W FUND BALANCE THROUGH JUNE 30, 2022 (PRELIMINARY)
The following is a summary of Measure W revenues and expenditures since its inception through June 30,
2022:
Table 1: Measure W Fund Balance Summary
Fiscal Year (FY)
Ended
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 06/30/2021 06/30/2022
(Preliminary)
Total
TOTAL REVENUES $ 1,493,425 $ 8,886,653 $ 11,162,238 $ 12,644,947 $ 11,704,090 $ 13,379,292 $ 12,321,378 $ 71,592,023
Expenditures
Civic Campus 211,992 382,776 4,925,872 8,793,377 10,255,536 16,693,441 2,702,732 43,965,726
Paving Program -495,162 4,122,370 1,189,851 127,882 964,312 34,845 6,934,422
Debt Service ----407,155 2,767,200 2,476,908 5,651,263
TOTAL
EXPENDITURES
$ 211,992 $ 877,938 $ 9,048,242 $ 9,983,228 $ 10,790,573 $ 20,424,953 $ 5,214,485 $ 56,551,411
Revenues Less
Expenditures
$ 1,281,433 $ 8,008,715 $ 2,113,996 $ 2,661,719 $ 913,517 $ (7,045,661)$ 7,106,893 $ 15,040,613
FUND BALANCE $ 1,281,433 $ 9,290,149 $ 11,404,145 $ 14,065,864 $ 14,979,381 $ 7,933,720 $ 15,040,613
As shown above,the fund balance for Measure W as of June 30,2021,was $7,933,720 which is reflected in
pages 111 and 113 of the City’s Comprehensive Annual Financial Report for year ended June 30, 2021.
The complete financial report can be found on the City’s website:
<https://www.ssf.net/departments/finance/financial-reports/comprehensive-annual-financial-reports-cafr>
B.FISCAL YEAR (FY) 2021-22 REVENUES
The City receives its sales tax revenues approximately two months after the actual collection date.The $12.3
million revenue shown in Table 1 represents collections for July 2021 through April 2022 (10 months).Total
revenue for FY 2021-22 is projected to be approximately $14.3 million.That reflects a peak year for Measure
W collections -surpassing the pre-pandemic year of FY 2018-19 ($12.6 million)and the pandemic year of FY
2020-21 ($13.3 million).
Despite the looming uncertainty in the economy,sales tax revenue collections in South San Francisco appears
to be relatively resilient. Staff will continue to monitor the revenue in the upcoming FY 2022-23.
City of South San Francisco Printed on 8/11/2022Page 2 of 4
powered by Legistar™12
File #:22-637 Agenda Date:8/3/2022
Version:1 Item #:4.
C.FY2021-22 EXPENDITURES
The following numbers are preliminary and subject to change based on the completion of FY 2021-22 entries.
Civic Campus Construction $ 2,702,732
Paving Program $ 34,845
Debt Service $ 2,476,908
TOTAL FY 2021-22 Expenditures $ 5,214,485
Payroll expenditures related to the administration of Measure W funds will be allocated to the projects during
year end.
Funds appropriated in prior years by Council but unspent will be carried over as appropriated funds to be spent
in FY 2022-23 or future years as part of the ongoing capital projects.
D.LEASE REVENUE BONDS ISSUANCE IN 2022
On October 26,2021,City Council approved moving forward with capital projects at Orange Memorial Park
(the “Projects”),including the Multi-Use Sports Fields,Aquatic Center,Colma Creek Bridge Replacement and
Playground Replacement.On May 11,2022,City Council approved a comprehensive funding plan for the
projects which is estimated to cost $72 million:
As some of the Committee members are already aware,the City issued the first tranche of Lease Revenue
Bonds of $43.9 million in March 2020 to finance the Police Station.The City issued the second tranche of
Lease Revenue Bonds of $86.4 million in June 2021 to finance the (a)Library,Parks and Recreation (LPR)
Building;(b)Streets Program,and (c)solar roofs for LPR and the Corp Yard.With Council approval of the
funding strategy for the Orange Memorial Park projects,the third tranche of Lease Revenue Bonds (the “2022A
Bonds”) of $65 million was issued on May 25, 2022, to finance the projects.
Sale of Series 2022 Lease Revenue Bonds
Due to rising interest rates in the beginning of the year,the City decided to expedite the Series 2022 bond sale
from October 2022 to May 2022.On May 25,2022,the City successfully priced $65 million of bonds.The
City received over $657 million in orders from 35 institutional investors and several retail investors.There was
significant investor interest for every maturity,which resulted in the bonds being 10x oversubscribed (i.e.,on
average,there were 10 orders for every bond).This strong investor interest allowed for yields to be adjusted 6
to 14 basis points lower which represents approximately $700,000 in interest savings for the City.The annual
debt service was $4.95 million and had an overall borrowing cost of 4.07%.The deal was structured with an 8-
year par call (6/1/2030),which aligns with the call date on the City’s 2020A Lease Revenue Bonds,allowing
City of South San Francisco Printed on 8/11/2022Page 3 of 4
powered by Legistar™13
File #:22-637 Agenda Date:8/3/2022
Version:1 Item #:4.
for efficiency and maximizing savings for refunding both transactions at the same time in the future.
The chart below shows a projection of Measure W revenues against all known existing expenditure
obligations. We assumed a conservative annual growth rate of 3.00% from FY 2022-2046.
Chart 1: Measure W Revenues vs. Current Debt Service
As shown above,Measure W revenues are expected to exceed the total debt service obligations for all three
tranches of lease revenue bonds, with sufficient debt services coverage ratio. (See Table 2 below)
Table 2: Measure W Revenues vs Total Debt Service through FY 2030-31
CONCLUSION
Despite the effects of COVID-19, Measure W remains healthy. Staff is cautiously optimistic that the Measure
W revenue will meet our FY 22-23 projections.
City of South San Francisco Printed on 8/11/2022Page 4 of 4
powered by Legistar™14
Karen Chang, Director of Finance
Jason Wong, Deputy Finance Director
August 3, 2022
Presentation to
Measure W Citizens’ Oversight Committee
15
Agenda
1.Introductions
2.Elections (Committee Chair and Vice Chair)
3.Review Minutes
4.Financial Update FY 2021-22 (preliminary)
5.Questions
216
Overview of Measure W
Voters approved Measure W ½ cent Sales Tax in 2015
Measure W revenues and expenditures outside of General Fund
3
Fiscal Year Ended 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/22
Preliminary Total
REVENUES $1,493,425 $8,886,653 $11,162,238 $12,644,947 $11,704,090 $13,379,292 $12,321,378 $71,592,023
EXPENDITURES
Civic Campus 211,992 382,776 4,925,872 8,793,377 10,255,536 16,693,441 2,702,732 43,965,726
Paving Program -495,162 4,122,270 1,189,851 127,882 964,312 34,845 6,934,422
Debt Service ----407,156 2,767,200 2,476,908 5,651,263
TOTAL EXPENDITURES $211,992 $877,938 $9,048,242 $9,983,228 $10,790,573 $20,424,953 $5,214,485 $56,551,411
Revenues Less Expenditures $1,281,433 $8,008,715 $2,113,996 $2,661,719 $913,517 -$7,045,661 $7,106,893 $15,040,613
FUND BALANCE $1,281,433 $9,290,149 $11,404,145 $14,065,864 $14,979,381 $7,933,720 $15,040,613
17
Series 2022A Bonds –Projects and Funding Source
Projects Series 2022A Bonds Caltrain Grant Impact Fees Total
Multi-Use Sports Fields $12,300,000 $1,700,000 $14,000,000
Aquatic Center 49,000,000 $49,000,000
Park Bridges 1,500,000 $1,500,000 $3,000,000
Park Playground 2,200,000 $3,800,000 $6,000,000
Total $65,000,000 $1,700,000 $5,300,000 $72,000,000
418
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
$27,500,000
$30,000,000
2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
FY19 Measure W Receipts = $12.6 million
FY20 Measure W Receipts = $11.7 million
FY21 Measure W Receipts = $13.4 million
Civic Campus Cash
Expenditures SERIES 2022A –Aquatic Center and Sports Field Debt Service
SERIES 2020A –Police Station Debt Service
SERIES 2021A –Library, Parks and Recreation Debt Service
Measure W Cashflow (Revenue less Expenditure)
Measure W Projected
Revenues
519
Projected Cashflow Detail
Date Estimated
Sales Tax
Receipts
(Measure W)1
Series 2020A:
Debt Service
(Police
Station)
Series 2021A:
Debt Service
(LPR, Street
Paving, Solar
Roofs)
Series 2022A:
Debt Service
(Aquatic Center
and Sports
Field)2
Capital
Projects
Director
Salary and
Benefits
Remaining
Measure W
Funds
Debt Service
Coverage
Ratio
6/30/22 $13,780,671 $2,765,450 $5,522,383 $360,500 $5,132,338 1.59x
6/30/23 14,194,091 2,766,450 5,523,000 371,315 5,533,326 1.64x
6/30/24 14,619,914 2,764,950 5,521,800 382,454 5,950,710 1.69x
6/30/25 15,058,511 2,765,950 5,522,200 $4,682,701 393,928 1,693,732 1.13x
6/30/26 15,510,266 2,764,200 5,524,000 4,948,338 405,745 1,867,983 1.14x
6/30/27 15,975,574 2,764,700 5,522,000 4,943,588 417,918 2,327,369 1.17x
6/30/28 16,454,842 2,762,200 5,526,200 4,944,588 430,455 2,791,399 1.20x
6/30/29 16,948,487 2,764,800 5,521,200 4,945,838 443,369 3,273,280 1.24x
6/30/30 17,456,941 2,765,200 5,519,200 4,947,088 456,670 3,768,784 1.28x
6/30/31 17,980,650 2,763,400 5,523,800 4,948,088 470,370 4,274,992 1.31x
1 Assumes 3.00% growth in sales tax receipts from FY 2022 –2046
2 All-in true interest cost of 4.07%.
620
Bond Sale Statistics
Description Tranche I
(Police Station)
Tranche II
(LPR + Streets)
Tranche III
(Pool + Sports Field)
Delivery Date 3/11/2020 6/16/2021 6/8/2022
Bond Proceeds $ 53,800,000 $ 104,000,000 $ 65,000,000
Total Interest Cost 2.27%2.29%4.03%
Average Annual Debt Service $ 2,756,755 $ 5,531,499 $ 4,804,623
Total Debt Service $ 72,288,256 $ 138,056,983 $ 115,217,540
LPR Project $76 M
Streets Project $24 M
Solar Project $ 4 M
Sports Field $12.3 M
Aquatic Center $49.0 M
Bridges $1.5 M
Playground $2.2 M
721
QUESTIONS
822