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Home My WebLink About04.21.2022 @600 Special Measure W COCThursday, April 21, 2022 6:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA TELECONFERENCE MEETING Zoom Link: https://ssf-net.zoom.us/j/87172159822 Special Measure W Citizens' Oversight Committee Special Meeting Agenda 1 April 21, 2022Special 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 MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY: Via Zoom: Join Zoom meeting https://ssf-net.zoom.us/j/87172159822 (Enter your email and name) Join by One Tap Mobile : US: +16699006833,,87172159822# or +12532158782,,87172159822# 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: 871 7215 9822 Page 2 City of South San Francisco Printed on 1/8/2024 2 April 21, 2022Special 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 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 Committee Members and staff. Comments received by the deadline will be included as part of the meeting record but will not be read aloud during the meeting. How to provide Public Comment during the Meeting: 1) By Phone: (669) 900-6833. Webinar ID is 871 7215 9822. Click *9 to raise a hand to speak. Click *6 to unmute when called. By One tap mobile: US: +16699006833,,87172159822# or +12532158782,,87172159822# 2) Online at: https://ssf-net.zoom.us/j/87172159822 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 April 21, 2022Special Measure W Citizens' Oversight Committee Special Meeting Agenda MATTERS FOR CONSIDERATION Welcome and Introductions.1. Presentation to the Committee Regarding an Overview of Committee Roles and Responsibilities. (Alexandra Wolf, Assistant City Attorney) 2. 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) 3. 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 #:22-276 Agenda Date:4/21/2022 Version:1 Item #:1. Welcome and Introductions. City of South San Francisco Printed on 4/15/2022Page 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 #:22-277 Agenda Date:4/21/2022 Version:1 Item #:2. Presentation to the Committee Regarding an Overview of Committee Roles and Responsibilities. (Alexandra Wolf, Assistant City Attorney) City of South San Francisco Printed on 4/15/2022Page 1 of 1 powered by Legistar™6 Measure W Oversight Committee Scope of Responsibilities Alexandra Wolf, Assistant City Attorney April 6, 2022 7 City of South San Francisco Background Measure W “To maintain South San Francisco services, including maintaining neighborhood police patrols/9-1-1 response, programs for seniors/disabled residents, crime/gang suppression programs, repairing potholes/streets, maintaining youth/teen educational/recreational programs, providing a police operations center that meets earthquake safety codes, and other city services; shall South San Francisco levy a 1/2 cent sales tax for 30 years, with authority to incur debt to accelerate projects, annual audits, citizens' oversight, no funds for Sacramento and all funds for South San Francisco?” 8 City of South San Francisco Background Measure W •Half-cent sales tax (0.5%) approved by voters on November 3, 2015 Tax went into effect April 1, 2016 •A General Tax for any legitimate governmental purpose Help maintain and enhance local services Voter Priorities: Neighborhood police patrols/911 response Repairing potholes/streets Police operations center that is earthquake safe Programs for seniors, disabled residents, and crime suppression Maintaining youth/teen educational/recreational programs 9 City of South San Francisco Background Requires the City Council to appoint a Citizen’s Oversight Committee 10 City of South San Francisco Citizen’s Oversight Committee (“COC”) •SSFMC section 4.36.140 –Appointment and bylaws set by City Council –Five-person committee of SSF residents or business representatives –Intent: Review and report on the revenue received and expenditure of funds from the Measure W tax. •Making sure that Measure W funds are used in alignment with the services and projects stated in the ballot measure language. •Not project-specific Appointment of the COC 11 City of South San Francisco Citizen’s Oversight Committee (“COC”) •Standing Advisory Committee –Subject to the Brown Act/open meeting laws –Subject to state conflict of interest laws •Bylaws adopted in 2016 –Member appointment/selection –Meeting schedule, attendance, operations –Scope of Committee actions and responsibilities Appointment of the COC 12 City of South San Francisco Scope of COC Responsibilities The jurisdiction of the COC is limited to what has been assigned to it by the City’s voters and the City Council. 13 City of South San Francisco Scope of COC Responsibilities 1. Review the City’s annual financial audit and findings on Measure W Tax –City undergoes an annual audit of its financial statements and review, among other things, collection and expenditure of Measure W tax revenue. –COC shall “meet with the independent auditor to receive the plan for the audit and the audit findings” related to Measure W tax collection and expenditure. (SSFMC 4.36.140; Bylaws section (C)(2)) The COC’s responsibilities are: 14 City of South San Francisco Scope of COC Responsibilities 2. Report to the City Council regarding auditors’ findings on Measure W Tax –The COC reports on whether Measure W funds are being spent in accordance with the terms of Measure W. The voters asked the COC to make sure that Measure W funds are spent as contemplated by the ballot measure. (SSFMC 4.36.140; Bylaws section (C)(2)) The COC’s responsibilities are: 15 City of South San Francisco Scope of COC Responsibilities •Measure W is a general tax –The funds generated from the measure may be used for any legitimate governmental purpose –Not restricted by the language of the ballot measure or another form of financing (i.e. bonds) –Ballot lists examples of voter priorities •Improper use = spending the money for a non-public purpose Improper Use of Measure W funds? 16 City of South San Francisco Scope of COC Responsibilities •Having a formal role in contracting, project management, or any other aspect related to the use of Measure W tax revenue. –This is to preserve the integrity and independence of the oversight process. (Bylaws section (C)(4)) •Reviewing or auditing case-by-case the projects funded by Measure W –The COC does not determine whether Measure W funds are properly spent at the project level. The COC is not tasked with: 17 City of South San Francisco Scope of COC Responsibilities Questions? 18 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-278 Agenda Date:4/21/2022 Version:1 Item #: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) City of South San Francisco Printed on 4/15/2022Page 1 of 1 powered by Legistar™19 Jason Wong, Acting Director of Finance Jake Gilchrist, Director of Capital Projects Philip Vitale, Deputy Director of Capital Projects Matt Ruble, Principal Engineer April 21, 2022 Presentation to Measure W Citizens’ Oversight Committee 20 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 3/1/2022 REVENUES $1,493,425 $8,886,653 $11,162,238 $12,644,947 $11,704,090 $13,379,292 7,435,054 EXPENDITURES Civic Campus 211,992 382,776 4,925,872 8,793,377 10,255,536 16,440,209 1,819,341 EV Charging Stations 31,284 Street Paving Program ‐ 495,162 4,122,270 1,189,851 127,882 949,678 Debt Service ‐ ‐ ‐ ‐ 407,156 2,767,200 2,476,908 Payroll ‐ ‐ ‐ ‐ ‐ 267,867 173,107 TOTAL EXPENDITURES $211,992 $877,938 $9,048,241 $9,983,229 $10,790,573 $20,424,954 $4,500,640 Revenues Less Expenditures $1,281,433 $8,008,716 $2,113,996 $2,661,719 $913,518 ‐$7,045,662 $2,934,414 FUND BALANCE $1,281,433 $9,290,149 $11,404,145 $14,065,864 $14,979,381 $7,933,719 $10,868,133 21 Community Civic Campus – Financing Plan Two phased program – $193.8 million estimated cost includes design and construction of Phases I and II Phase I: Police Operations & 911 Dispatcher Center Phase II: Library, Parks & Rec and Community Theater/Council Chamber 3 Sources 2020A Bond Proceeds $53,800,000 2021A Bond Proceeds 78,000,000* Measure W Funds and Other Sources 62,000,000 $193,800,000 Uses Pre‐construction/Design $34,000,000 Police Station 56,800,000 Library/Recreation Building 103,000,000 $193,800,000 * Includes $2 million for solar panels Community Civic Campus Financing Plan 22 Community Civic Campus 4 PHASEI PHASEIII PHASE II 23 Police Operations and Dispatch Center 5 Project Cost: Building Size: Parking: Number of Stories: Use: $56.8 million 45,000 sq ft 71 Secured Spaces 2 Levels Essential Services Building Program Elements: Administrative Services Communications Property and Evidence Physical Training Firing Range 911 Emergency Center Records Investigations Patrol Classroom Construction Start:First Quarter 2020 POLICESTATION 24 Police Operations and Dispatch Center 6 25 Library, Parks & Recreation and Council Chambers 7 Cost: $103 million Building Size: Library / Parks & Rec 80,000 sq ft 75,000 sq ft (existing 57,120 sf) Council Chambers 5,000 sq ft (existing 3,700 sf) Parking: 220 Spaces (existing 200 spaces) Number of Stories: 3 levels Program Elements: Library Parks & Recreation Community Theater / Council Chambers Park Parking COMMUNITY THEATER/ CITY COUNCIL CHAMBERS LIBRARY AND PARKS &RECREATION 26 Library, Parks & Recreation and Council Chambers 8LIBRARYANDPARKS&RECREATION COMMUNITY THEATER/ CITY COUNCIL CHAMBERS 27 Library, Parks & Recreation and Council Chambers 9 28 Library, Parks & Recreation and Council Chambers 10 29 Pavement Rehabilitation Program Extending the life of the pavement with pavement preservation, as opposed to the replacement is the goal of a pavement management program. 11 GOALS Inspection Preservation Replacement 30 12 SSF Street Network SSF street network consists of 139.60 centerline miles in length and covers 25.3 million square feet of asphalt concrete pavement. SSF street network is an essential asset and is among the most valuable assets maintained by the City valued at over $338 million to replace 31 Status of SSF Street Network With the most recent inspection information and treatments, the City’s overall pavement condition index (PCI) is 75, which is classified as “Good” The PCI is a rating from 0 – 100, with 0 being a failed street, and 100 being a new pavement. Approximately 69.0% of the City’s roads have a PCI of 70 and above. 13 SSF Pavement Condition Index (PCI) 32 Bond Measure Project (2020-2022) 14 Total Rehabilitation Costs $24.0 M Treated 25.2 CL miles (19% of entire network) 2022 Pavement Condition Index, PCI =87* (Zone 1 to Zone 5 only) Deferred Maintenance Streets 33 Project Summary Items Year by Year Project Bond Measure Project Rehabilitation Cost $2.5 M/yr $24 M Single Project Zone Surface Seal Cost $2.0 M/yr $2.0 M/yr 15-year Total Cost $4.5 M*15 = $67.5 M $24 M + $2.0 M*15 = $54 M (-20%) Upfront Cost Savings 0 $2.0 M Total Cost Savings 0 ($67.5 M – $54 M) + $2 M = $15.5 Treated CL Miles (rehab. only) 17.2 25.2 (+46%) Pavement Condition Index (PCI) Maintain Current Level (70s) Current Level + 10 points (80s) General Network Condition Good condition with low severity cracking and pavement distress, still poor condition streets Excellent – Significantly less pavement distress, no poor condition streets 15 34 Future Maintenance – Surface Seal by Zone 16 Average $2 M/year To Surface Seal by Zone 35 $- $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 FY21 Measure W Receipts = $13.4 million Civic Campus Cash Expenditures SERIES 2020A – Police Station Debt Service SERIES 2021A – Library, Parks and Recreation Debt Service Measure W Cashflow (Revenue less Expenditure) Measure W Projected Revenues 17 36 Council Approved Capital Projects (Series 2022A Bonds) Sports Field Project – Projected Cost = $14 million – Timing = Project Completion by Summer/Fall 2023 Orange Memorial Aquatic Center – 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) 18 37 Sports Field Project 19 38 Orange Memorial Aquatic Center 20 Construct a new 28,500 sf facility Two indoor pools Rentable Multi-use/Party room Swimmer's Lounge Maintain operation of existing pool throughout construction of the new pool facility 39 $- $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 FY21 Measure W Receipts = $13.4 million Civic Campus Cash Expenditures PROPOSED SERIES 2022A Bonds – Estimated 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 21 40 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 (Pool and Sports Field)2 Remaining Measure W Funds Debt Service Coverage Ratio 6/30/22 $13,379,292 $2,765,450 $5,522,383 $5,091,459 1.61x 6/30/23 13,379,292 2,766,450 5,523,000 5,089,842 1.61x 6/30/24 13,379,292 2,764,950 5,521,800 5,092,542 1.61x 6/30/25 13,780,671 2,765,950 5,522,200 2,994,650 2,497,871 1.22x 6/30/26 14,194,091 2,764,200 5,524,000 2,994,400 2,911,491 1.26x 6/30/27 14,619,914 2,764,700 5,522,000 2,996,400 3,336,814 1.30x 6/30/28 15,058,512 2,762,200 5,526,200 2,995,400 3,774,712 1.33x 6/30/29 15,510,267 2,764,800 5,521,200 2,996,400 4,227,867 1.37x 6/30/30 15,975,575 2,765,200 5,519,200 2,994,150 4,697,025 1.42x 6/30/31 16,454,842 2,763,400 5,523,800 2,993,650 5,173,992 1.46x 1 Assumes no growth in sales tax receipts from FY 2022 – 2024 and 3.00% CAGR thereafter 2 Assumes all-in true interest cost of 3.72%. 22 41 Bond Sale Statistics Description Phase I (Police Station) Phase II (LPR + Streets) (PROPOSED) Phase III (Pool + Sports Field) Delivery Date 3/11/2020 6/16/2021 6/2/2022 Bond Proceeds $ 53,800,000 $ 104,000,000 $ 41,000,000 Total Interest Cost 2.27%2.29% 3.66% Average Annual Debt Service $ 2,756,755 $ 5,531,499 $ 2,902,826 Total Debt Service $ 72,288,256 $ 138,056,983 $ 69,659,751 23 LPR Project $76 M Streets Project $24 M Solar Project $ 4 M Aquatic Center $28.7 M Sports Field $12.3 M 42 QUESTIONS 24 43 Measure W Citizens’ Oversight Committee Thursday, April 21, 2022 On Sunday, April 17, 2022, staff received five questions from the public. A) Are there enough members to form an oversight cmte ? Who are they, what are their names? https://www.ssf.net/government/boards-commissions - Information can be found under Membership B) How often are the Measure W Oversight meetings going to be held? https://www.ssf.net/government/boards-commissions - Information can be found under Meetings & Locations, currently held via teleconference only C) Who will conduct the meetings? The committee is staffed by the Finance Department and generally conducted by the Finance Director D) Will the cmte report on the revenues/expenditures of the .5ct tax for the period of 2020 to present ? Yes E) Please describe /explain the types of bonds purchased and backed by the sales tax. The amount of bonds left to purchase ? What is the maturity date of bonds and the total amount owed? What is the full name of the Authority formed by the City Council in order to purchase bonds? Explain how the City is using new infrastructure (police bldg dispatch) built to further purchase bonds for other capital projects the City is planning. In December 2019, the City of South San Francisco and the Parking Authority of the City of South San Francisco entered into a Joint Powers Agreement to form the City of South San Francisco Public Facilities Financing Authority (the “Authority”). The Authority will assist in financing public capital improvements undertaken by either member. The City Council will serve as Board of Directors of the Authority. The Authority issued two lease revenue bonds totaling $130,315,000 to finance the police station, community civic campus, streets and other capital projects. Currently, there are $129,380,000 of bonds outstanding. The final maturity of the bonds is June 1, 2046. The Authority is considering a third bond financing later this year for the aquatic center, multi-purpose sports field and other capital improvements at Orange Memorial Park. The City pledges various capital assets as collateral to bondholders during the construction period of new projects. After a project is completed, the underlying asset will be used as security for the lease revenue bonds. 44