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Home My WebLink About11.03.2021 @630 Special Measure W COCWednesday, November 3, 2021 6:30 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA TELECONFERENCE Special Measure W Citizens' Oversight Committee Special Meeting Agenda 1 November 3, 2021Special Measure W Citizens' Oversight Committee Special 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 Join Zoom Meeting https://ssf-net.zoom.us/j/85450770078?pwd=NE91SE5vQVdhRVZaWHh3SXRsVlNmUT09 Meeting ID: 854 5077 0078 Passcode: 428211 One tap mobile +16699006833,,85450770078# US (San Jose) 12532158782,,85450770078# US +(Tacoma) Dial by your location +1 669 900 6833 US (San Jose) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 301 715 8592 US (Washington DC) +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) 877 853 5257 US Toll-free 888 475 4499 US Toll-free 833 548 0276 US Toll-free 833 548 0282 US Toll-free Meeting ID: 854 5077 0078 Find your local number: https://ssf-net.zoom.us/u/k8fhrDQlR Page 2 City of South San Francisco Printed on 1/8/2024 2 November 3, 2021Special Measure W Citizens' Oversight Committee Special Meeting Agenda Call To Order. Roll Call. Agenda Review. Remote Public Comments - comments are limited to items on the Special Meeting Agenda. 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 e-mail: [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: (669) 900-6833. Webinar ID is 854 5077 0078. Click *9 to raise a hand to speak. Click *6 to unmute when called. By One tap mobile: US: +16699006833,,85450770078# US (San Jose) 12532158782,,85450770078# 2) Online at: https://ssf-net.zoom.us/j/85450770078?pwd=NE91SE5vQVdhRVZaWHh3SXRsVlNmUT09 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 1/8/2024 3 November 3, 2021Special Measure W Citizens' Oversight Committee Special Meeting Agenda MATTERS FOR CONSIDERATION Welcome and Introductions.1. Motion to approve the Minutes from the meetings of August 5, 2020, February 3, 2021 and September 1, 2021. 2. Informational report on Measure W fund balance and expenditures for FY 2020-21. (Janet Salisbury, Finance Director) 3. Community Civic Campus Construction Update (Jacob Gilchrist, Director of Capital Projects) 4. Adjournment Page 4 City of South San Francisco Printed on 1/8/2024 4 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-827 Agenda Date:11/3/2021 Version:1 Item #:1. Welcome and Introductions. City of South San Francisco Printed on 1/8/2024Page 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 #:21-823 Agenda Date:11/3/2021 Version:1 Item #:2. Motion to approve the Minutes from the meetings of August 5, 2020, February 3, 2021 and September 1, 2021. City of South San Francisco Printed on 1/8/2024Page 1 of 1 powered by Legistar™6 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 1 MINUTES SPECIAL MEETING MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held: Via TELECONFERENCE PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION WEDNESDAY, August 5, 2020 3:30 PM Call to Order. Time: 3:33 p.m. Roll Call. PRESENT: Chair Wong, Committee Member Alcalde and Committee Member Zemke ABSENT: Committee Member Brosnan STAFF: Senior Civil Engineer Torres, Principal Engineer Ruble, Director of Capital Project Gilchrist, Finance Director Salisbury, and Assistant City Attorney Lai. Chair Wong questioned the seat of Vice Chair De Paz to which the Committee Secretary reminded the committee that Vice Chair De Paz was appointed as a Commissioner to the Housing Authority. Chair Wong then asked if there would be another member to which Committee Secretary responded with information provided by the City Clerk’s Office that there would be applicant interviews, but that they were delayed due 7 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 2 to COVID. Chair Wong confirmed with the Committee Secretary that there is a quorum with three members present. Committee Member Alcalde announced that he would be resigning in the end of December when his term expires. Chair Wong also stated that her term expires in October and questioned if she would be allowed to serve or if she would need to reapply. Committee Secretary confirmed that she would need to reapply. Agenda Review. No changes to agenda. PUBLIC COMMENTS Members of the Public were encouraged to submit remote public comments in writing by 1:30PM prior to the meeting and the Committee Members confirmed they received the two Public Comments that were emailed out prior to the meeting. Committee Secretary also confirmed that she would keep an eye on email and voice mails and should any come up they would be read into the minutes. Two public comments received prior the deadline related to items on the agenda. No general public comments. MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes from the meeting of February 5, 2020 Committee Member Alcalde moved to approve the minutes. Committee Member Zemke seconded the motion. Action: Approved by roll call vote (3-0) Public Comment on Item 2-Mina Richardson, member of the public. My question for the Paving Plan Update is where is Cherry Ave at this time on the schedule? There are pot- holes and the street is uneven, with a manhole protruding causing a bump effect. It has alligator markings also. It appears other streets in Mayfair village are nicely paved with slurry seal, but mine is in need and keeps getting passed up. Please advise. Sr. Civil Engineer Torres responded, starting in 2022 we will be going into the zone of treatment. Cherry Ave is located in Zone 3 with preliminary work to begin in 2024 and is scheduled for 2024 Surface Seal at 8 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 3 this time. This is the preliminary plan and the designers and staff will be reviewing these lists in more detail. They have gone through a round of rough review, but once we get to the actual project and look at the actual costs and what is required for each street then the list will be finalized and presented. 2. Report regarding the Public Works Department’s Paving Plan update. (Angel Torres, Senior Civil Engineer) Sr. Civil Engineer Torres shared about the Pavement Management Program at the City of South San Francisco. He stated the City will be implementing a zone map for the pavement management program which mimics a system that is being utilized by other local agencies, such as Daly City who has a seven year/seven zone mapping system. He stated our City is broken up into six zones which constitute six neighborhoods which for this year, 2020, have two projects that are going out to constructions; one is a surface seal project like in the Sunshine Garden’s area, provides a treatment to the surface and gives about a 5 year extension to the road. Going forward in 2021, the project will concentrate in the Old Town Area. Sr. Civil Engineer Torres shared a 2021-2027 Preliminary Work Plan and explained that in 2028 the plan would be to return to Zone 1 and repeat the cycle. He stated that this will give full coverage to the City and the pricing of the project will be more cost effective and provide better future bids. He said that focusing on one area at a time makes in more cost effective because the contractor doesn’t need to m obilize equipment to different parts of the City and will allow for more streets to be surface sealed. Committee Member Alcalde asked where the funding comes from. Sr. Civil Engineer Torres replied that there is a combination of different sources of funding. A portion of the funding for these projects is from Measure W. Principal Engineer Ruble stated that City Council has elected to fund the Pavement Management Program at $4.5 M made up of General Fund, Measure A, SSF Measure W, San Mateo County Measure W and Road Maintenance Rehab (SB1) to combine that. Measure W is providing funding of $667,000/year for the indefinite future and was included in the City’s Capital Improvement Program. Chair Wong stated that sometime last year the work plan was presented and asked if there were any major changes to the timeline for each zone compared to the first presentation. 9 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 4 Sr. Civil Engineer Torres responded that when he came on board and changed the pavement program, one thing that changed is that the budget was increased for the pavement management program and what that allowed for was to work with a designer to bundle projects combining two single-year projects into one project. For example the current budget makes it possible to complete the previous 5 year plan from 2017/18. From there, starting in 2022 they will be moving into the new 6 year plan. Sr. Civil Engineer Torres continued by scrolling through and showing the remaining sections in more detail. Chair Wong requested information on a specific street and Sr. Civil Engineer Torres responded with the requested information Chair Wong asked if the list was available to the public. Principal Engineer Ruble stated that the work plan is posted to their website and is readily available to the public and anyone is able to look in and see when their neighborhood will receive treatment. Public Comment -Police Dispatch Update. What is the completion date for the first phase of the Civic Campus? On schedule to begin the next phase? Director of Capital Projects Gilchrist responded that Omar Galvan Construction Manager from Kitchell CEM will run through a more detailed update on construction of Phase 1, which is the police operations and 911 dispatch. He stated that generally speaking construction is going well, they broke ground about three weeks before shelter in place began. He stated that the project is about 30% of the way through construction. He mentioned that the project has only lost a couple of weeks of schedule, unrelated to COVID, due to unforeseen site conditions. He said the project is still on schedule for a September 2021 completion for Phase 1 of the Community Civic Campus. He invited the committee to join next week for the Council meeting on August 12 where there will be an in-depth presentation on the sustainability of the project with the green infrastructure element and an update on the park and playground design, as well as a series of detailed 3D visualization for the interior of the building. He stated that Phase 2, which is the Library and Parks and Recreation facility is still on schedule to bid in early September with the idea being that it would open in spring of 2023. He stated that he is impressed with SmithGroup’s design and leadership of Kitchell, Omar’s team. 10 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 5 3. Report regarding construction of Police Operations and 9-1-1 Dispatch Center. (Jacob Gilchrist, Director of Capital Projects) Omar Galvan with Kitchell, the Program Construction Manager for the Campus Project both Phase 1 and Phase 2, went through a series of slides to overview the project which included information regarding the 18 month construction duration contract award to Swinerton Builders, demolition of the existing Pet Club and prepping the site, groundbreaking, and current efforts . Committee Member Alcalde asked if equipping the building is included. He asked if it is another phase or if it is all included in the contract. Program Construction Manager Galvan responded that the coordination of FFEs (fixtures, furniture and equipment) is on the tail end of the project, typically in the last 60 -90 days and that there will be some cut over after the project is complete to get the police station online including the emergency equipment which is currently in the approved budget. Committee Member Zemke mentioned that he thought it looks great and that contractors are making really good progress every time he looks at it. Chair Wong asked if we foresee anything will cause the project to go over budget because of pandemic issues. Director of Capital Project Gilchrist responded that there is a 10% contingency that is being used for unforeseen expenses but is still within the budget. He said that in terms of the pandemic it is a big unknown but there is a healthy contingency left. He stated that the City’s cost estimators are suggesting holding back a few million. He said that the pandemic may slow construction, but that at this point there is no need for additional funding. Committee Member Alcalde stated there is not so much concern of the outgoing but of the incoming as the City’s sales tax has probably been affected by the pandemic and is eager to hear from Finance. Director of Capital Project Gilchrist mentioned that Finance may cover that in their presentation but that the team will be going over that it more detail at the Council presentation. 11 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 6 4. Informational report on Measure W fund balance and expendi ture projections for FY 2020- 21 (Janet Salisbury, Finance Director) Finance Director Salisbury shared the Measure W Fund Balance Summary which showed the revenues and expenditures. Director Salisbury stated that the current fund (cash) balance for Measure W as of August 1, 2020 is $13,391,541. Current year to date through April the City has collected $9,862,295, does not include May and June 2020. Projection right now is to end the year around $11.5M and that is substantiated by speaking with our sales tax consultant. In this year our expenditures are $407,000 which includes our first debt service payment on the Police Station and a transfer to CIP of $10M. Committee Member Alcalde asked what the transfer to CIP reflects. Director of Finance Salisbury mentioned that is a combination of the campus and the streets project and will go more in depth in the presentation. Director Salisbury continued with a Monthly Revenue Comparison (FY 2019-20 vs. FY2018-19) which showed a decrease in pre-COVID months July through February, explained by a slight softening. She also explained that an error in the 2017-18 tax years resulted in additional funds in the 2018-19 year and could affect those reportings. The comparison also showed an increase in March which could be contributed to early COVID spending at Costco but overall there is an average monthly decrease of approximately $60,000 due primarily to the acute effect of the pandemic. Director Salisbury provided preliminary FY2019-20 expenditures which included a pre-construction expenditure of $10,011,942 for a total amount of $10.5M including the streets program and debt service. Chair Wong asked if there is an estimate of the unspent fund balance which will be carried over to next year. Director Salisbury explained that Measure W is its own fund and that there is no carry over in terms of funds and it is a to be determined. Director Salisbury continued with the FY2020-21 budget and explained that the economic impact of COVID-19 is expected to stress revenue, but that the expectation is still to bring in $11.17M. Expenditures are expected to be around $3.8M. 12 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 7 Director Salisbury stated that she would email Chair Wong the actual number but that there were $17M budgeted expenditures for 19-20 so we are under budget. Chair Wong asked what the significance of Council adopting a budget is if there is always a large unspent balance that continues to roll over. She asked if with the bond issuance if the City will go back to Council to budget. Director Salisbury clarified that what she is showing is cash; that these funds are committed through contracts. Chair Wong asked if there was a snapshot of the committed amount and asked if that could be presented at the next meeting so that she can see the budget and actual comparison. Director Salisbury stated that there is no way to do that at this time as the funds have not actually been encumbered can only really see cash out the door. She stated that what finance tracks is appropriated dollars. Committee Member Alcalde asked what the reduction is hotel tax is because he is concerned that Council may look to Measure W to fund CalPERS obligation. Director Salisbury stated that there is a downfall in TOT but will not be used for holstering the pension cost and stated that the City is unbelievably financially healthy and pointed to the City’s AAA rating. Chair Wong asked to see the final auditing numbers at the next meeting. Director Salisbury stated that it would not be ready. Chair Wong requested to see the final revenue number. Director Salisbury confirmed that number will be presented at the next meeting. Chair Wong mentioned the revised meeting time is a problem. Director Salisbury stated that because of budgetary restrictions the City is moving to hold committee 13 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES AUGUST 5, 2020 PAGE 8 meetings during the business day during COVID. ADJOURNMENT At 5:11 p.m., Chair Wong adjourned the meeting. Submitted by: Approved by: Amanda Parker, Administrative Assistant II City of South San Francisco Christine Wong, Chair City of South San Francisco 14 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES February 3, 2021 PAGE 1 MINUTES MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: Via TELECONFERENCE PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION Wednesday, February 3, 2021 6:30 p.m. Call to Order. Time: 6:31 p.m. Roll Call. PRESENT: Chair Wong, Committee Member Brosnan, Committee Member Zemke STAFF: City Manager Futrell, Director of Capital Projects Gilchrist, Assistant City Attorney Lai, Principal Engineer Ruble, Finance Director Salisbury Agenda Review. No changes to agenda. PUBLIC COMMENTS No public comments. 15 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES February 3, 2021 PAGE 2 MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes from the meeting of August 5, 2020. Committee Member Brosnan stated that he was unable to view the minutes. Chair Wong moved to continue this item to the next meeting. Committee Member Brosnan seconded the motion. Action: Approved by roll call vote (3-0-0) 2. Presentation on Financing the Civic Campus and Street-Paving Program (Janet Salisbury, Director of Finance) Finance Director Salisbury presented to the Committee regarding Financing the Civic Campus & Street Paving Program, which consisted of an overview of Measure W Funds, review of Civic Campus Financing, and a presentation of an Option for Streets Paving Program. Director Salisbury went over total revenues and expenditures in terms of Measure W Funds. She restated for the record that Measure W Funds are kept separate from the General Fund and accounted for specifically and intentionally so that every dollar is tracked. Director Salisbury shared the Measure W Fund Balance Summary, which showed all of the dollars that have been received by the City since the inception of Measure W, which goes back five years and ends at June 2020 as this is the current finalized CAFR. Director Salisbury stated that the finalized CAFR is going to Council on February 10, 2021. The Director of Finance stated that through December 2020, for fiscal year 2021, the City has received $4M in total revenues and that there have been no expenditures in terms of cash. Director Salisbury presented a Monthly Revenue Comparison and shared that the City accounts for funds on an accrual basis. Director Salisbury attributed a $1M decrease from FY 2019-2020 compared to FY 2018-2019 to COVID citing that Shelter-in-Place began in March. Director Salisbury stated that the current interest rates are near historic lows and presented the pricing of Phase I, Series 2020A Bonds in February 2020. She mentioned that the expectation is for the interest rates to remain low as the City evaluates the Phase II bonds. Committee Member Brosnan questioned when the City would start paying on the Phase I Bond. Finance Director Salisbury shared that the City has started paying bond interest. She stated that the bond interest is paid on a semi-annual basis. She referred to a $407,156 transfer to Gen’l Fund (9100) as debt service payment for the interest costs. She mentioned that the bonds closed in March and that the first interest payment was made in June, on a June to December basis; every six months. 16 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES February 3, 2021 PAGE 3 Finance Director Salisbury stated that she would send out the Official Statement for the Phase I Bonds to the Committee Members as part of the next meeting. Finance Director Salisbury stated that the Official Statement contains the debt service; what we are going to pay back and the schedule on a semi-annual basis. Committee Member Brosnan asked when the City would begin paying on principal. Director Salisbury stated that the City will being paying towards principal in December. She stated that the bonds are structured to be level debt service, meaning the debt service annually is level. She mentioned that the average annual debt service is $2.7M and that will be paid for the life of the bond. Director Salisbury stated that the bonds sunset in 2046 that will go back to pay a par amount of about $47M and change. Committee Member Brosnan requested clarification in regards to Phase II payments and asked if there would be other phases beyond Phase II. Finance Director stated that this will be discussed. Director Salisbury shared funding sources related to estimated cost in regards to Pre-Construction, Phase I:Police Station and Phase II: Library, P&R, Council (LPR). Chair Wong asked if the fundraising $4.7M target is realistic. Director Salisbury responded that it is a realistic target based on discussions with the Library Foundation who is leading the fundraising efforts on behalf of the City. Committee Member Brosnan brought up a point regarding a fundraising consultant that was hired in the end of 2019 and mentioned that the fundraising number was much higher then and seemed very unrealistic. Committee Member Brosnan asked if that consultant was still around and asked if the consultant had viable ideas. City Manager Futrell said that the initial number was $10M and that it would have been achievable before COVID. City Manager Futrell mentioned that there will be a press release soon to announce a couple of large donations and hoping that will cause a little momentum and maybe raise a little more. Committee Member Brosnan stated that earlier in the last year Council did a proclamation to transfer funds from infrastructure and asked where on the presentation that is documented. City Manager Futrell stated that in June Council changed their decision. Due to COVID and the shutdown and the economic recession, Council decided to hold that money in reserves. Finance Director Salisbury went on to present a conservative estimate of Measure W Cashflow through to 2046. Committee Member Brosnan pointed out a discrepancy on the Cashflow slide related to Monies Already Spent and Total Expenditures on the Fund Balance Summary slide. 17 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES February 3, 2021 PAGE 4 Finance Director Salisbury explained that the Fund Balance Summary contains monies that have been budgeted and unspent, where the Cashflow accounts for monies that have left the door. She explained that budgeted is different from actuals. She stated that monies that have been approved by Council and are tied up in encumbrances, makes up the difference. The Committee discussed how to present for clarification and consistency in the future. Finance Director Salisbury presented a plan to issue additional $24M for Street Paving Program to accelerate the street improvements and noted a significant savings component. Principal Engineer Ruble presented a representation of the current six-year rehabilitation program against a two year catch up project and a 5-year future maintenance surface seal by zone rehabilitation Bond Measure Project which would cover 7% more roads in 2 years and will cost approximately $2.5M less each year. Director Salisbury discussed the option to add $24M for streets program and its affordability. She went on to present the Bond Sale Assumptions with both options (LPR Only and LPR + Streets) and impact with 1% Interest Rate Move. Director Salisbury concluded the presentation with a slide regarding Projected Cash Flow Detail through 2030. Committee Member Brosnan asked for clarification regarding a statement made earlier in the presentation regarding Phase 1 $2.7M interest-only payments. Director Salisbury clarified that the $2.7M payment is not interest only. She stated that the $2.7M is the whole principal and interest. However, the first payment was interest. Chair Wong asked for clarification on the Projected Cash Flow slide regarding the streets paving program. Director Salisbury stated that the Phase II as presented is potential debt service that has not been issued for the Library, Park & Rec building. The streets paving program is presented as an “if Council approves” that is the potential debt service based on $24M. Committee Member Brosnan asked for clarification regarding the total debt issuance, he asked for clarification if it rose from $115M to $127M. Director Salisbury confirmed that the $127M is the total issuance, but reminded that that is not the par amount rather what we actually receive in cash. Committee Member Brosnan asked if there were fees related to closing costs that would be added to $127M. Director Salisbury responded that the numbers presented are all-in and have all been accounted for. She went over cost of issuance and the underwriters discount related to how much bonds are issued. 18 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES February 3, 2021 PAGE 5 Committee Member Brosnan asked if it was like a mortgage, where the bottom line is how much you are borrowing and how much your mortgage payment is going to be every month. Director Salisbury stated that it is like a home loan where you will see annual average debt service. She stated that she could share the Official Statement at a future meeting. Committee Member Brosnan stated that the Principal and Interest Payments seem very small in terms of the amount. Director Salisbury pointed to the interest rate as the reason for this. She reiterated that the bonds have been structured at a historically low interest rate and that the bond is structured as a lease revenue bond. There were some assumptions made early on, one being that there would be one bond not broken up as it is currently structured. The debt service was initially based on $115M upfront, but that is not what happened. The City broke up the Police Campus and LPR Building. On the down side you are paying costs twice and cited the closing cost of $300,000 that becomes $600,000, but noted that in the relative scheme of things it actually saves the City millions. She also went over the structure of the bonds, which includes pledged assets. She stated that by doing this we do not have to borrow more than we need and have further dropped that debt service number. Committee Member Brosnan confirmed that they would be two separate notes. Director Salisbury stated that they would be two separate notes, Phase I which was issued last year and will go to 2046/2047 and Phase II which will be issued in May and will sunset in the same timeframe. Committee Member Zemke stated that the discussion was very informative and said that his only question was, “when do you expect to issue the second bond” which was just answered. Director Salisbury mentioned that the presentation will go to Council on February 10th where they will decide whether to go ahead on the street paving program for the $24M. Director Salisbury stated that she would present more information when the committee meets again. A discussion related to the timing of the next meeting ensued because of staffing time and budget. Chair Wong asked when the Committee could expect the Annual Audited Financial Statement for year 2020. Director Salisbury mentioned that the Comprehensive Annual Financial Report (CAFR) has been finalized and is going to Council on Feb 10 and can be presented by the next meeting. City Manager Futrell asked what the Committee expected to see out of the CAFR. Chair Wong stated that the responsibility to review the Annual Financial Statement is listed in the job responsibilities of the position. City Manager Futrell stated that he would pull out the portions relative to Measure W. 19 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE MEETING MINUTES February 3, 2021 PAGE 6 Committee Member Brosnan questioned the expectation of the group. City Manager Futrell reiterated the importance of the group and its purpose of holding Council accountable for Measure W funds. Committee Member Brosnan asked if there would be new members added. Director Salisbury stated that the City Clerk’s Office will be holding interviews. City Manager Futrell stated that we would check in with the Clerk. Director Salisbury shared that the Committee would do a reorg when new members are added and asked that the City Attorney present a refresh on authority of the Measure W COC. ADJOURNMENT At 8:01 p.m., Chair Wong adjourned the meeting. Submitted by: Approved by: Amanda Parker, Administrative Assistant II City of South San Francisco Christine Wong, Chair City of South San Francisco 20 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES September 1, 2021 PAGE 1 MINUTES SPECIAL MEASURE W CITIZENS’ OVERSIGHT COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: Via TELECONFERENCE PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION Wednesday, September 1, 2021 6:30 p.m. Call to Order. Time: 6:31 p.m. Roll Call. PRESENT: Acting Chair Zemke, Committee Member Brosnan, Committee Member Del Rosario STAFF: City Manager Futrell, Director of Capital Projects Gilchrist, Assistant City Attorney Lai, Principal Engineer Ruble, Finance Director Salisbury, Senior Civil Engineer Torres. Agenda Review. No changes to agenda. PUBLIC COMMENTS No public comments. 21 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES September 1, 2021 PAGE 2 MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes from the meeting of August 5, 2020 and February 3, 2021. Committee Member Brosnan stated that he was unable to view the minutes. Acting Chair Zemke suggested we move to continue this item to the next meeting. Committee Member Brosnan made a motion to defer the minutes to the next meeting. The motion was seconded by Committee Member Del Rosario. Action: Approved by roll call vote (3-0-0) Committee Member Brosnan requested that going forward the committee be notified of any changes to the platform as the hyperlinks do not seem to be available. 2. Report regarding the Public Works Department’s Paving Plan update (Matthew Ruble, Principal Engineer and Angel Torres, Senior Civil Engineer) Principal Engineer Ruble presented on the Pavement Management Program which included an overview of the current pavement condition and Pay-As-You-Go Program (2020-2026), as well as the Bond Measure Project (2021-2023 and Future Maintenance-Surface Seal By Zone. Principal Engineer Ruble also provided a project summary of the Street Bond Program. There were no questions from the committee. Member of the Public Mina Richardson requested information related to the timeline. She asked when the proposed project would be completed and if the presentation is available online. Principal Engineer Ruble responded that the road projects are currently under construction right now and the majority of construction for the large pavement program will take place in the Summer of 2022 and the cycle and rotation will resume in 2023. 3. Informational report on Measure W fund balance and expenditures for FY 2020-21. (Janet Salisbury, Finance Director) Director Salisbury went over the Measure W Fund Balance, FY 2020-21 Revenues and FY 2020-21 Expenditures, and Lease Revenue Bonds, Series 2021A. She provided an overview of Measure W, a monthly revenue comparison over FY 2019-2020 and FY 2020-2021. Director Salisbury also provided an overview of appropriated funds in prior years. Director Salisbury presented on the Bond Sale Statistics for Phase I (Police Station) and Phase II (LPR + streets). Additionally, she presented a Measure W Cashflow as previous requested by the Committee. Committee Member Zemke requested information related to whether the interest revenue is comingled with other General Fund Investments. 22 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES September 1, 2021 PAGE 3 The Director of Finance explained that bond proceeds sit with a trustee and do not come into the City, thus is not comingled with other City cash so that the interest earning is held within those funds. Committee Member Del Rosario asked if the money is currently invested or if it is just sitting in the bank. Director Salisbury mentioned that the money is invested in either LAIF or with Chandler so that we will see a growth rate on that fund. Committee Member Del Rosario requested to know who makes the investments decisions. Director Salisbury responded that there is an elected City Treasurer, but that we do have an outside investment management company which was chosen by the city to handle all short and long-term investments and that for liquidity the City puts money in LAIF which is a program managed by the State’s Treasurer’s Office. Committee Member Brosnan stated that there was a presentation that included a line item of income from the start and a line item which included expenses from the start. Director Salisbury responded that she did go over that in her presentation in the staff report and the presentation that she attached. Member of the Public Richardson asked if the lease revenue bonds were variable interest rate. Director Salisbury responded that the lease revenue bonds are fixed rate and that the total cost was presented. 4. Report regarding update on the Community Civic Campus projects currently under construction. (Jake Gilchrist/Director of Capital Projects) Director of Capital Project Gilchrist presented on the construction of Phase One, Police Operations 9- 1-1 Dispatch Center and stated that construction is on schedule to be completed November 2021 and reported on Phase Two of the Civic Campus, the Library, Parks & Recreation and Community Theater/Council Chamber which began in January 2021. Committee Member Brosnan aske what the observation structure is for. Director of Capital Projects Gilchrist stated that it is a stair case for transporting materials and that there will be a temporary elevator shaft. Acting Chair asked if the Civic Campus project is on track. Director of Capital Projects Gilchrist stated that a little time was lost due to BART but that both projects are on budget, but that there are some concerns due to COVID regarding supply chain. Acting Chair Zemke stated that he was impressed with the progress. 23 MEASURE W CITIZENS’ OVERSIGHT COMMITTEE SPECIAL MEETING MINUTES September 1, 2021 PAGE 4 ADJOURNMENT At 7:25 p.m., Chair Zemke adjourned the meeting. Submitted by: Approved by: Amanda Parker, Administrative Assistant II City of South San Francisco Bill Zemke, Acting Chair City of South San Francisco 24 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-825 Agenda Date:11/3/2021 Version:1 Item #:3. Informational report on Measure W fund balance and expenditures for FY 2020-21.(Janet Salisbury,Finance Director) RECOMMENDATION This report is informational and requires no formal action from the Committee. BACKGROUND/DISCUSSION 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. A.MEASURE W FUND BALANCE THROUGH JUNE 30, 2020 The following is a summary of audited Measure W revenues and expenditures since its inception through June 30, 2020: Table 1: Measure W Fund Balance Summary As shown above,the fund (cash)balance for Measure W as of June 30,2020 was $14,979,381,which is reflected in pages 105-107 of the City’s Comprehensive Annual Financial Report for year ended June 30, 2020. 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) 2020-21 REVENUES The City receives its sales tax revenues approximately two months after the actual collection date.While unaudited,the City received $13.4 million in Measure W revenues in FY 2020-21.That reflects a peak year for City of South San Francisco Printed on 1/8/2024Page 1 of 4 powered by Legistar™25 File #:21-825 Agenda Date:11/3/2021 Version:1 Item #:3. Measure W collections - surpassing the $12.6 million in FY 2018-19, which was a pre-COVID year. The following table shows a comparison by month the Measure W sales tax collection for FY 2020-21 versus the prior year: Table 2: Monthly Revenue Comparison (FY2019-20 vs. FY2020-21) *Unaudited; subject to change. As shown above,sales tax revenue collections in South San Francisco continue to be strong and relatively resilient to the impacts of the worldwide pandemic. C.FY2020-21 EXPENDITURES The following numbers are preliminary and subject to change based on the FY 2020-21 audit.With that said, Measure W expenditures for FY2020-21 are as follows: Payroll:$ 267,867 Debt Service:$ 2,767,200 Civic Campus Construction:$ 16,440,209 Streets Program:$ 949,678 TOTAL FY2020-21 Expenditures $ 20,424,954 Funds appropriated in prior years by Council but unspent have been carried over as appropriated funds to be spent in FY2020-21 as part of the ongoing capital projects. D.CONTEMPLATED LEASE REVENUE BONDS ISSUANCE IN 2022 On October 26,2021,City Council approved moving forward with two Capital Improvement Program (CIP) projects at Orange Memorial Park -namely,(1)an estimated $14 million Sports Field project and (2)an estimated $34 million project to replace the Orange Pool. The above direction follows an April 2021 Council study session on the projects as well as consideration by the Budget Subcommittee in September 2021. City of South San Francisco Printed on 1/8/2024Page 2 of 4 powered by Legistar™26 File #:21-825 Agenda Date:11/3/2021 Version:1 Item #:3. The expected total cost for both the Aquatic Center and Field Projects (“Projects”) is $48 million: Sports Field Project:$ 14,000,000 Orange Pool Project:$ 34,000,000 Total Capital Need:$ 48,000,000 Given the $48 million cost for both Projects,the following is the current funding recommendation that was accepted by Council: Lease Revenue Bond Proceeds (Series 2022A - 3rd Tranche) $ 41,000,000 Parks Impact Fee $ 5,300,000 Caltrans Grant $ 1,700,000 Total Capital Need for Projects:$ 48,000,000 As some of the Committee members are already aware,the City issued the first tranche of Lease Revenue Bonds in March 2020 to finance the Police Station.The City issued the second tranche of Lease Revenue Bonds 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 Sports Field and Pool Projects,staff will be moving forward with a third tranche of Lease Revenue Bonds to be issued in Summer 2022. The chart below shows a projection of Measure W revenues against all known existing expenditure obligations. Chart 1: Measure W Revenues vs. Current Debt Service Through FY 2023-24,the difference between Measure W revenues and expenditures (represented by the striped green bar)is reserved and will be used towards the Civic Campus project.However,after FY 2023-24,the City City of South San Francisco Printed on 1/8/2024Page 3 of 4 powered by Legistar™27 File #:21-825 Agenda Date:11/3/2021 Version:1 Item #:3. does have the financial capacity to absorb the debt service of a third bond financing. CONCLUSION Despite the effects of COVID-19, Measure W remains healthy, with expenditures remaining well below revenue projections. Attachment: 1.Presentation to Committee City of South San Francisco Printed on 1/8/2024Page 4 of 4 powered by Legistar™28 Presentation to Measure W COC Janet Salisbury 03 NOVEMBER 2021 29 Overview of Measure W ▪Voters approved Measure W ½ cent Sales Tax in 2015 ▪Measure W revenues and expenditures outside of General Fund 2 Fiscal Year Ended 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 REVENUES $1,493,425 $8,886,653 $11,162,238 $12,644,947 $11,704,090 $13,379,292 EXPENDITURES Civic Campus 211,992 382,776 4,925,872 8,793,377 10,255,536 16,440,209 Street Paving Program -495,162 4,122,270 1,189,851 127,882 949,678 Debt Service ----407,156 2,767,200 Payroll -----267,867 TOTAL EXPENDITURES $211,992 $877,938 $9,048,241 $9,983,229 $10,790,573 $20,424,954 Revenues Less Expenditures $1,281,433 $8,008,716 $2,113,996 $2,661,719 $913,518 -$7,045,662 FUND BALANCE $1,281,433 $9,290,149 $11,404,145 $14,065,864 $14,979,381 $7,933,719 30 Measure W Fund Monthly Revenue Comparison Month FY 2019-2020 FY 2020-2021 Difference July $ 930,148 $ 1,025,771 $ 95,623 August 1,450,260 1,527,732 77,472 September 821,445 498,476 (322,969) October 958,425 1,017,094 58,669 November 1,056,673 1,389,937 333,264 December 1,239,905 932,921 (306,984) January 790,642 885,528 94,886 February 1,186,204 1,424,181 237,977 March 713,987 870,466 156,479 April 714,606 924,602 209,996 May 1,397,081 1,507,996 110,915 June 444,714 1,374,588 929,874 TOTAL $ 11,704,090 $ 13,379,292 $ 1,675,202 3 31 Council Approved Capital Projects ▪Sports Field Project ➢Considerations –Projected Cost = $14 million –Timing = Project Completion by Summer/Fall 2023 ▪Orange Memorial Aquatic Center ➢Considerations –Projected Cost = $34 million –Timing = Project Completion by Fall/Winter 2024 ▪Sports Field + Aquatic Center ➢Total Cost = $48 Million ➢Current Funding Plan –Measure W Lease Revenue Bonds ($41 million) –Parks Impact Fee ($5.3 million) –Caltrans Grant ($1.7 million) 4 32 $- $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 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 Estimated FY21 Measure W Receipts = $13.3 million Civic Campus Cash Expenditures 5 SERIES 2020A –Police Station Debt Service SERIES 2021A Bonds Principal Measure W Cashflow (Revenue less Expenditure) Measure W Projected Revenues SERIES 2021A Bonds Interest 33 $- $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 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 Estimated FY21 Measure W Receipts = $13.4 million Civic Campus Cash Expenditures PROPOSED SERIES 2022A Bonds –Estimated Debt Service 6 SERIES 2020A –Police Station Debt Service SERIES 2021A Bonds Principal Measure W Cashflow (Revenue less Expenditure) Measure W Projected Revenues SERIES 2021A Bonds Interest 34 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) PROPOSED Series 2022A: Debt Service (Ballfield and Pool)2 Remaining Measure W Funds Debt Service Coverage Ratio 6/30/22 $ 13,513,085 $ 2,765,450 $ 5,522,383 -$ 5,225,252 1.63x 6/30/23 13,648,216 2,766,450 5,523,000 -5,358,766 1.65x 6/30/24 13,784,698 2,764,950 5,521,800 -5,497,948 1.66x 6/30/25 14,198,239 2,765,950 5,522,200 2,544,700 3,365,389 1.31x 6/30/26 14,624,187 2,764,200 5,524,000 2,543,100 3,792,887 1.35x 6/30/27 15,062,912 2,764,700 5,522,000 2,543,500 4,232,712 1.39x 6/30/28 15,514,799 2,762,200 5,526,200 2,541,200 4,685,199 1.43x 6/30/29 15,980,243 2,764,800 5,521,200 2,543,600 5,150,643 1.48x 6/30/30 16,459,651 2,765,200 5,519,200 2,544,000 5,631,251 1.52x 6/30/31 16,953,440 2,763,400 5,523,800 2,542,300 6,123,940 1.56x 1 Assumes no growth in sales tax receipts from FY 2021 –2024 and 3.00% CAGR thereafter 2 Assumes all-in true interest cost of 3.00%. 7 35 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:21-833 Agenda Date:11/3/2021 Version:1 Item #:4. Community Civic Campus Construction Update.(Jacob Gilchrist, Director of Capital Projects) Starting in 2017, the City of South San Francisco assembled a team to plan, design and build a new Community Civic Campus, home to new facilities for Police, Library, and Parks and Recreation. The team includes SmithGroup (Architect), Kitchell CEM (Construction Management) and Swinerton Builders (General Contractor). Phase One, the new Police Operations and 9-1-1 Dispatch Center, will increase emergency response speed and enhance public safety by providing a state-of-the-art 9-1-1 Emergency Response Center. The station provides space for 125 police employees for administration, operations, investigation, property storage, evidence storage, support services, emergency dispatch, and training. Phase One construction began in February 2020, with six months of underground utilities and foundation work. 113 piles were drilled to a depth of 60 - 70 feet. Construction of the concrete masonry support building began in July 2020. This Support Building houses a firing range, K-9 units and motorcycle and bicycle squad parking. The Main Building will house offices, 911 Dispatch Center and detention cells. Construction of the main building began in October 2020 and continued throughout 2021. As of late October 2021, the project is nearly complete. The exterior of the building is essentially finished, while the final work to the electrical, information technology, and communication systems is completed in the building interior. Construction will be completed in December 2021, providing the citizens with a safe and efficient facility for decades to come. The Station will be fully operational in January 2022. Phase Two of the Civic Campus, the Library, Parks & Recreation and Community Theater/Council Chamber, includes 84,250 sq-ft building, 12,400 sq-ft parking garage, surface parking and 1.35-acre park. The building includes an automated library book return, event spaces, teaching and catering kitchens, dance and exercise studios, classrooms for all ages, children, youth, and adult libraries, a discovery center including a maker space, community room and digital studio, administrative offices and the new SSF City Council Chamber. The park includes a playground, synthetic turf field and a garden. Underground utilities and foundation work are coming to an end in September with the delivery and erection of steel. Phase Two began in January 2021. Swinerton Builders completed site preparation, mobilization, and underground utilities. Since March 2021, Swinerton Builders has worked on the foundation which included installing the El Camino Real temporary shoring wall with tiebacks, drilling 309 25’-34’ deep piles, installing rebar, placing concrete footings and shooting shotcrete for retaining wall along El Camino Real. Contractor has also completed all the site’s underground utilities and presently is working on the underground plumbing and electrical under the building slab. In September and October 2021 Swinerton erected the steel for the building structure. The next phase of construction includes the installation of the concrete floor slabs for each story of the building. Construction is expected to be complete in mid-2023. City of South San Francisco Printed on 1/8/2024Page 1 of 1 powered by Legistar™36 Community Civic Campus Construction Updates November 3, 2021 37 CITY COUNCIL CHAMBERS 38 PARK-SIDE ENTRANCE 39 EXTERIOR WINDOW SAMPLE 40 POLICE STATION 41 42