HomeMy WebLinkAbout01.24.2024@630 Regular CCWednesday, January 24, 2024
6:30 PM
City of South San Francisco
P.O. Box 711
South San Francisco, CA
Library Parks & Recreation Building, Council Chambers
901 Civic Campus Way, South San Francisco, CA
City Council
JAMES COLEMAN, Mayor (District 4)
EDDIE FLORES, Vice Mayor (District 5)
MARK ADDIEGO, Councilmember (District 1)
MARK NAGALES, Councilmember (District 2)
BUENAFLOR NICOLAS, Councilmember (District 3)
ROSA GOVEA ACOSTA, City Clerk
FRANK RISSO, City Treasurer
SHARON RANALS, City Manager
SKY WOODRUFF, City Attorney
Regular Meeting Agenda
1
January 24, 2024City Council Regular Meeting Agenda
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January 24, 2024City Council Regular Meeting Agenda
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
ANNOUNCEMENTS FROM STAFF
PRESENTATIONS
Proclamation Recognizing National Gun Violence Survivors Week January 22-26,
2024. (James Coleman, Mayor)
1.
COUNCIL COMMENTS/REQUESTS
PUBLIC COMMENTS
Under the Public Comment section of the agenda, members of the public may speak on any item not listed
on the Agenda and on items listed under the Consent Calendar. Individuals may not share or offer time to
another speaker. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is
listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may
direct staff to investigate and/or schedule certain matters for consideration at a future Council meeting .
Written comments on agenda items received prior to 4:00 p.m. on the day of the meeting will be included as
part of the meeting record but will not be read aloud.
If there appears to be a large number of speakers, the Mayor may reduce speaking time to limit the total
amount of time for public comments (Gov. Code sec. 54954.3(b)(1).). Speakers that are not in compliance
with the City Council's rules of decorum will be muted.
CONSENT CALENDAR
Matters under the Consent Calendar are considered to be routine and noncontroversial. These items will
be enacted by one motion and without discussion. If, however, any Council member (s) wishes to comment
on an item, they may do so before action is taken on the Consent Calendar. Following comments, if a
Council member wishes to discuss an item, it will be removed from the Consent Calendar and taken up in
order after adoption of the Consent Calendar.
Motion to approve the Minutes for January 10, 2024.2.
Report regarding the second reading and adoption of an Ordinance approving a
Development Agreement (DA22-0005) between the City of South San Francisco and
HCP Forbes, LLC for the Vantage Life Science Campus Development Project at
420-490 Forbes Boulevard. (Christy Usher, Senior Planner)
3.
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January 24, 2024City Council Regular Meeting Agenda
Ordinance approving a Development Agreement (DA22-0005) between the City of
South San Francisco and HCP Forbes, LLC for the Vantage Campus Development
Project in South San Francisco, California.
3a.
Report regarding a resolution authorizing the acceptance of $4,069.14 in funding from
San Mateo County Registration and Elections Division to support a 30-Day Vote
Center at the Main Library, Library I Parks and Recreation Center, for the March 5,
2024 Presidential Primary Election and amending the Library Department’s Fiscal
Year 2023-24 Operating Budget via Budget Amendment Number 24.029. (Valerie
Sommer, Library Director)
4.
Resolution authorizing the acceptance of $4,069.14 in funding from San Mateo
County Registration and Elections Division to support a 30-Day Vote Center at the
Main Library, Library I Parks and Recreation Center, for the March 5, 2024
Presidential Primary Election and approving Budget Amendment Number 24.029
4a.
Report regarding a resolution approving the South San Francisco Fire Department’s
annual inspections performance pursuant to the California Health and Safety Code
Section 13146.4. (Ian Hardage, Fire Marshal)
5.
A Resolution approving the South San Francisco Fire Department’s annual inspections
performance pursuant to the California Health and Safety Code Section 13146.4.
5a.
Report regarding a resolution authorizing submittal of an application for the
Department of Resources Recycling and Recovery funds allocated through the State
of California in their fiscal year 2023-24 budget in the amount of $16,427 to support
beverage container recycling programs in South San Francisco and authorizing the
City’s fiscal year 2023-24 revenue budget adjustment upon receipt of funds pursuant
to Budget Amendment Number 24.031. (Marissa Garren, Management Analyst II)
6.
Resolution authorizing submittal of an application for Department of Resources
Recycling and Recovery funds allocated through the State of California in their fiscal
year 2023-24 budget in the amount of $16,427 to support beverage container recycling
programs in South San Francisco and authorizing the finance director to adjust the
City’s fiscal year 2023-24 revenue budget upon receipt of funds pursuant to Budget
Amendment Number 24.031.
6a.
Report regarding a resolution approving the Annual Impact Fee and Sewer Capacity
Charge Report for Fiscal Year 2022-23. (Karen Chang, Director of Finance)
7.
Resolution approving the Annual Impact Fee and Sewer Capacity Charge Report for
Fiscal Year 2022-23.
7a.
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January 24, 2024City Council Regular Meeting Agenda
ADMINISTRATIVE BUSINESS
Report regarding a resolution to approve a three-year professional services agreement
with Maze and Associates, Certified Public Accountants, for independent audit
services beginning with the fiscal year ending June 30, 2024, in an amount not to
exceed $290,818, which includes a 10% contingency, with an option to extend for two
additional fiscal years and to authorize the City Manager to execute the agreement.
(Karen Chang, Director of Finance)
8.
A resolution approving a three-year Professional Services Agreement with Maze and
Associates, Certified Public Accountants, for independent audit services beginning
with the fiscal year ending June 30, 2024, in an amount not to exceed $290,818,
which includes a 10% contingency, with an option to extend for two additional fiscal
years and to authorize the City Manager to execute the agreement.
8a.
Report regarding a resolution accepting the Annual Comprehensive Financial Report
(ACFR) and other related miscellaneous reports for Fiscal Year 2022-23 (Karen
Chang, Finance Director)
9.
Resolution approving the Annual Comprehensive Financial Report and other related
miscellaneous reports for Fiscal Year 2022-23
9a.
Report regarding a resolution appropriating $200,000 of state grant funds for the
Every Kid Deserves a Bike Program and approving Budget Amendment Number
24.024. (Devin Stenhouse, Diversity, Equity, and Inclusion Officer)
10.
Resolution appropriating $200,000 of state grant funds for the Every Kid Deserves a
Bike Program and approving Budget Amendment Number 24.024.
10a.
Report Regarding a Resolution Approving a Professional Services Agreement with
Boucher Law, PC in the Amount of $100,000 for Labor Relations Consulting
Services. (Leah Lockhart, Human Resources Director)
11.
Resolution Approving a Professional Services Agreement with Boucher Law, PC in
the Amount of $100,000 for Labor Relations Consulting Services
11a.
ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS
2024 City Council Committee Assignments. (James Coleman, Mayor)12.
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January 24, 2024City Council Regular Meeting Agenda
CLOSED SESSION
Conference with Legal Counsel - Existing Litigation
(Pursuant to Government Code Section 54956.9(d)(1))
Name of case: Keahi, Devin vs. City of South San Francisco (Worker’s
Compensation Appeals Board Case No. ADJ14518543)
(Sky Woodruff, City Attorney, Kyle Royer, RTGR Law, and Leah Lockhart, Human
Resources Director)
13.
Conference with Real Property Negotiators
(Pursuant to Government Code Section 54956.8)
Properties: Parcels on Sign Hill, South San Francisco (APNs 012-351-020,
012-351-030, 012-024-060, 012-024-070, 012-024-080, 012-024-090, 012-024-100,
012-024-110, and 012-024-120)
Agency Negotiators: Nell Selander, Economic & Community Development Director;
Greg Mediati, Parks and Recreation Director; and Sky Woodruff, City Attorney
Negotiating parties: Syme Venture Partners LP
Under negotiation: Price and terms
14.
ADJOURNMENT
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-88 Agenda Date:1/24/2024
Version:1 Item #:1.
Proclamation Recognizing National Gun Violence Survivors Week January 22-26, 2024.(James Coleman,
Mayor)
City of South San Francisco Printed on 1/19/2024Page 1 of 1
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Dated: January 24, 2024
RECOGNITION OF NATIONAL GUN VIOLENCE SURVIVORS WEEK
WHEREAS, National Gun Violence Survivors Week is January 22 through
January 26, 2024, and is a time to lift up the stories of gun violence survivors who
live with the trauma of gun violence every single day; and
WHEREAS, gun violence in any form leaves an enduring mark on the lives
of those who are impacted with nearly 1 in 2 survivors indicating that they need
support, services, or assistance to cope with the impact of gun violence ; and
WHEREAS, we are a nation of survivors – whether someone has witnessed
an act of gun violence, been threatened or wounded with a gun, or had someone they
cared for wounded or killed with a gun; and
WHEREAS, inequities in our justice, health, housing, and educational
institutions, along with generations of discrimination and disinvestments, have
fueled gun violence in black and brown communities; and
WHEREAS, in 2024 we recognize the 6th annual National Gun Violence
Survivors Week and every day in America at least 120 people are shot and killed,
more than 200 are shot and wounded, and countless others experience the collective
trauma of gun violence; and
NOW, THEREFORE, BE IT RESOLVED that Mayor James Coleman and
the City Council of South San Francisco do hereby proclaim January 22 – January
26, 2024, as National Gun Violence Survivors Week in South San Francisco and
uplift gun violence survivors, hearing their stories and allowing them to lead the
way to a brighter and safer future.
________________________________
James Coleman, Mayor
________________________________
Eddie Flores, Vice Mayor
________________________________
Mark Addiego, Councilmember
________________________________
Mark Nagales, Councilmember
________________________________
Buenaflor Nicolas, Councilmember
8
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-73 Agenda Date:1/24/2024
Version:1 Item #:2.
Motion to approve the Minutes for January 10, 2024.
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CALL TO ORDER
Mayor Coleman called the meeting to order at 6:30 p.m.
ROLL CALL
Councilmember Addiego, present
Councilmember Nagales, present
Councilmember Nicolas, present
Vice Mayor Flores, present
Mayor Coleman, present
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
City Manager Ranals requested Item No. 12 be added to the Consent Calendar and that Item No. 14
be first under Administrative Business.
ANNOUNCEMENTS FROM STAFF
• Devin Stenhouse, Diversity, Equity, and Inclusion Officer
COUNCIL COMMENTS/REQUESTS
Councilmember Nicolas wished everyone a Happy New Year and recognized National Law
Enforcement Day. She recognized Sergeant Schwartz and Captain Wall for their years of service and
congratulated them on their retirement. She thanked all those who assisted in the Holiday Toy and
Food Drive. She shared she attended the Joint Advisory Committee on the Childcare Master Plan and
will be participating in the one-day homeless count. She requested staff provide the utilization report
of the South City shuttle. She requested the meeting be adjourned in memory of Mario Gonzalez,
Simone “Sam” Bonanno, Gerald “Gerry” Evans, Reynaldo Cantero, Debbie Canfield, Rosalinda De
Castro Natanauan, Santurino De Los Reyes, Olimio Cubacub, Adoracion Pelayo, Purita Bulos
Quema, William “Marty” Romero, and Luzviminda Amores Toledo.
Councilmember Nagales requested a follow up regarding the use of the shuttle during Santa Comes
to Town Event. He also requested that staff explore the traffic flow at El Camino Real. Public Works
Director Kim provided an update to state that synchronization is being continuously monitored to
ensure efficiency.
MINUTES
REGULAR MEETING
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
WEDNESDAY, JANUARY 10, 2024
6:30 p.m.
Library Parks and Recreation Building
901 Civic Campus Way, South San Francisco, CA
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REGULAR CITY COUNCIL MEETING JANUARY 10, 2024
MINUTES PAGE 2
Councilmember Addiego noted a luncheon was hosted by Phil’s Gourmet Hot Dogs for Law
Enforcement Day. He shared there was discussion surrounding the increase in violence and
requested that we revisit the topic of retail cannabis along with discussing parklets at the Council
Retreat. He shared memories of Mario Gonzalez and recognized him for his efforts in building the
relationship between our Sister City Atotonilco El Alto. He also shared longtime resident Joan
Francesconi will be missed.
Vice Mayor Flores recognized our law enforcement and fire department and thanked them for
keeping us safe during the holidays and applauded them for their professionalism. He also
highlighted and thanked staff for their efforts in holiday events to include the Toy Drive and Posada
Event. He also shared the City/County Associations of Government (CCAG) would be opening a
virtual feedback form in partnership with the Silicon Valley Bicycle Coalition and encouraged the
community to participate. He also noted participants would receive $40 gift cards for their
feedback.
Mayor Coleman wished everyone a Happy New Year. He congratulated Captain Wall on his
retirement and recognized him for his years of service with the Police Department. He also
announced that the City was invited by America Supporting Americas to adopt a unit in the 101st
Airborne Division and send care packages to those stationed abroad. He also shared the events he
would be attending to include the MLK Day of service at Alta Lome Middle School, and Luna New
Year Celebration at the LPR. He requested staff review the status of potholes at 280 ramps from
Avalon and Westborough.
PUBLIC COMMENTS – NON-AGENDA ITEMS
The following individual(s) addressed the City Council:
• Wendy Sinclair-Smith
• Charlene Rouspil
• Cynthia Marcopulos
• Peggy Deras
• Nanette Cole
CONSENT CALENDAR
The Assistant City Clerk duly read the Consent Calendar, after which the Council voted and engaged
in discussion of specific items as follows. Item No. 5 was pulled by Councilmember Nagales, Item No.
7 was pulled by Councilmember Addiego and Item No. 12 was pulled by Councilmember Nicolas for
further discussion.
1. Motion to approve the Minutes for December 13, 2023. (Rosa Govea Acosta, City Clerk)
2. Motion to approve re-appointments to the Parking Place Commission and Traffic Safety
Commission. (Rosa Govea Acosta, City Clerk)
3. Motion to accept the construction improvements of the FY 2022-23 CDBG Curb Ramp
Replacement Project (st2304) in accordance with the project’s plans and specifications.
(Angel Torres, Senior Civil Engineer).
4. Report regarding Resolution No. 01-2024 approving a professional services agreement with
Dell Marketing LP for the procurement and installation of server hardware in an amount not
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REGULAR CITY COUNCIL MEETING JANUARY 10, 2024
MINUTES PAGE 3
to exceed $253,394 and authorizing the City Manager to execute the agreement. (Tony
Barrera, Director of Information Technology Department)
5. Report regarding Resolution No. 02-2024 authorizing the City Manager or designee to
purchase several remnant parcels (Assessor Parcel Numbers 091022010, 091022020,
091022030, 091025010, 091034080, and 015031090) with outstanding delinquent taxes in
South San Francisco subject to an upcoming County of San Mateo Chapter 8 tax sale. (Nell
Selander, Economic & Community Development Director; Greg Mediati, Parks & Recreation
Director; and Adena Friedman, Chief Planner)
6. Report regarding Resolution No. 03-2024 authorizing the use of $61,719.33 of Police Asset
Forfeiture Funds to purchase less-lethal launchers and optics. (Scott Campbell, Chief of
Police)
7. Report regarding Resolution No. 04-2024 authorizing the filing of an application for the
Caltrans Climate Adaptation Planning Grant for $600,000 (not to exceed $1,000,000) for the
South San Francisco (SSF) Shoreline Protection and Connectivity Project. (Audriana
Hossfeld, Senior Civil Engineer)
8. Report regarding Resolution No. 05-2024 authorizing the filing of a grant contract renewal
for Community Development Block Grant funds allocated through the City of Daly City to
support Project Read and authorizing the Finance Director to adjust the Fiscal Year 2024-25
Revenue Budget upon receipt of grant award. (Valerie Sommer, Library Director)
9. Report regarding Resolution No. 06-2024 authorizing the acceptance of $6,000 in grant
funding from the San Bruno Community Foundation to support Project Read’s literacy
services through the Learning Wheels Family Literacy Program and amending the Library
Department’s Fiscal Year 2023-24 per Budget Amendment Number 24.026 (Valerie Sommer,
Library Director)
10. Report regarding second reading and adoption of Ordinance No. 1652-2024 repealing and
replacing Chapter 9.04 Animal Licensing and Control of the South San Francisco Municipal
Code. (Rich Lee, Assistant City Manager)
12. Report regarding Resolution No. 07-2024 approving the Agreement for Construction and
Reimbursement for Sewer Improvements with Southline Building 1 Owner, LLC for the
public sanitary sewer main improvements on Tanforan Avenue, as Part of the Southline
Development Project. (Matthew Ruble, Principal Engineer)
Item No. 5: Councilmember Nagales thanked staff and the Council for their efforts and shared that
he was glad this would assist in maintaining these properties.
Item No. 7: Councilmember Addiego asked for clarification regarding the interstate 380 connection
to Oyster Point. Senior Civil Engineer Hossfeld provided clarification and discussed the benefits of
connectivity and protecting infrastructure.
Item No. 12: Councilmember Nicolas asked for clarification regarding potential amendments and
spending authority. Principal Engineer Ruble and City Attorney Woodruff provided clarification.
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REGULAR CITY COUNCIL MEETING JANUARY 10, 2024
MINUTES PAGE 4
Motion – Councilmember Addiego /Second – Councilmember Nagales: To approve Consent
Calendar 1-10 and 12, by roll call vote: AYES: Councilmembers Addiego, Nagales, Nicolas, and
Vice Mayor Flores, and Mayor Coleman; NAYS: None; ABSENT: None; ABSTAIN: None
ADMINISTRATIVE BUSINESS
14. Report regarding Resolution No. 08-2024 approving Budget Amendment Number 24.027
appropriating $147,500 in the Low- and Moderate-Income Housing Fund (Fund 241) in Fiscal
Year 2023-24 for the City’s Emergency Rental Assistance Program. (Nguyen Pham,
Management Analyst II)
Management Analyst Pham presented the report. Housing Manager Thoe and Director of Economic
and Community Development Selander described the circumstances and scope in which funds would
be available to applicants. Director of YMCA Community Resource Center Elida Sobalvarro
provided an overview of the application process.
The Council thanked Director Sobalvarro for her work and expressed their desire to obtain follow-up
data on the success of applicants to remain housed. The Council also provided feedback and direction
to staff to explore additional options.
Motion – Councilmember Nagales /Second – Councilmember Nicolas: To approve Resolution No.
08-2024 approving Budget Amendment Number 24.027 appropriating $147,500 in the Low- and
Moderate-Income Housing Fund (Fund 241) in Fiscal Year 2023-24 for the City’s Emergency Rental
Assistance Program, by roll call vote: AYES: Councilmembers Nagales, Nicolas, and Vice Mayor
Flores, and Mayor Coleman; NAYS: None; ABSENT: None; ABSTAIN: Councilmember Addiego
11. Report regarding the draft Broadband Master Plan. (Tony Barrera, Director of Information
Technology)
Director Barrera provided an overview of the project and introduced Entrust Solutions Group Project
Director Dave Brevitz. Project Director Brevitz presented the draft plan.
The Council engaged in questions and discussions and provided direction to staff to include
promoting the affordability connectivity program, follow up regarding free public Wi-Fi, and
exploring adding additional fiber around Hickey Blvd and Junipero Serra Blvd.
13. Report regarding Resolution No. 09-2024 authorizing the City Manager to execute a
professional services agreement with HR&A Advisors, Inc. to prepare an anti-displacement
roadmap in an amount not to exceed $387,600. (Nori Dubon, Housing Fellow)
Housing Fellow Dubon presented the report. HR&A Senior Analyst Myles Orr provided an overview
of the way data will be collected. Kearns & West Principal Joey Goldman shared the importance of
facilitation and management of discussions.
The Council engaged in questions and discussions and emphasized the need to collaborate and engage
with the community, residents, and organizations. Additionally, the Council requested the ability to
review the charter for them to participate.
Motion – Councilmember Nicolas /Second – Councilmember Nagales: To approve Resolution No.
09-2024 authorizing the City Manager to execute a professional services agreement with HR&A
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REGULAR CITY COUNCIL MEETING JANUARY 10, 2024
MINUTES PAGE 5
Advisors, Inc. to prepare an anti-displacement roadmap in an amount not to exceed $387,600, by roll
call vote: AYES: Councilmembers Nagales, Nicolas, and Vice Mayor Flores, and Mayor Coleman;
NAYS: None; ABSENT: None; ABSTAIN: Councilmember Addiego
15. Report regarding Resolution No. 10-2024 approving Budget Amendment Number 24.028 and
authorizing the City’s acquisition of the Below Market Rate (BMR) unit at 2230 Gellert
Boulevard, Unit 3105 (APN 104540050). (Elia Moreno, Management Analyst I and Danielle
Thoe, Housing Manager)
Management Analyst Moreno presented the report. The Council requested clarification regarding the
calculations for resale. Housing Manger Thoe provided an explanation of the calculations and sale
options.
Motion – Councilmember Addiego /Second – Councilmember Nicolas: To approve Resolution No.
10-2024 approving Budget Amendment Number 24.028 and authorizing the City’s acquisition of the
Below Market Rate (BMR) unit at 2230 Gellert Boulevard, Unit 3105 (APN 104540050), by roll call
vote: AYES: Councilmembers Addiego, Nagales, Nicolas, and Vice Mayor Flores, and Mayor
Coleman; NAYS: None; ABSENT: None; ABSTAIN: None
ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS
Councilmember Nagales shared the Governor’s budget was released.
Mayor Coleman reported the Childcare Subcomittee meeting is working to present recommendations
at the City Council meeting of March 27, 2024.
CLOSED SESSION
Entered into Closed Session: 9:14 p.m.
16. Conference with real property negotiators
Property: 226-230 Grand Ave., 232-238 Grand Ave., and 240-246 Grand Ave
Agency negotiator: Nell Selander, ECD Director; Danielle Thoe, Housing Manager; Sky
Woodruff, City Attorney
Negotiating parties: Giffra Enterprises
Under negotiation: Price and terms
Resumed from Closed Session: 9:44 p.m.
ADJOURNMENT
Being no further business Mayor Coleman adjourned the City Council meeting at 9:45 p.m.
***
Adjourned in Memory of
Mario Gonzalez, Simone “Sam” Bonanno, Gerald “Gerry” Evans, Reynaldo Cantero, Debbie
Canfield, Rosalinda De Castro Natanauan, Santurino De Los Reyes, Olimio Cubacub, Adoracion
Pelayo, Purita Bulos Quema, William “Marty” Romero, and Luzviminda Amores Toledo
***
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REGULAR CITY COUNCIL MEETING JANUARY 10, 2024
MINUTES PAGE 6
Submitted by: Approved by:
Jazmine Miranda James Coleman
Assistant City Clerk Mayor
Approved by the City Council: / /
15
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-04 Agenda Date:1/24/2024
Version:1 Item #:3.
Report regarding the second reading and adoption of an Ordinance approving a Development Agreement
(DA22-0005)between the City of South San Francisco and HCP Forbes,LLC for the Vantage Life Science
Campus Development Project at 420-490 Forbes Boulevard.(Christy Usher, Senior Planner)
RECOMMENDATION
Staff recommends that the City Council waive reading and adopt an Ordinance approving the
Development Agreement between the City and HCP Forbes, LLC, and waive further reading.
BACKGROUND/DISCUSSION
The City Council previously waived reading and introduced the following ordinance.The ordinance is ready
for adoption.
Ordinance adopting a Development Agreement (DA22-0005)between the City of South San Francisco
and HCP Forbes,LLC for a Life Science Research and Development Project at 420-490 Forbes
Boulevard.
(Introduced on 12/13/23; Vote 4-1)
ASSOCIATIONS
1.Final Ordinance (24-03)
A.Exhibit A- Development Agreement
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-03 Agenda Date:1/24/2024
Version:1 Item #:3a.
Ordinance approving a Development Agreement (DA22-0005)between the City of South San Francisco and
HCP Forbes, LLC for the Vantage Campus Development Project in South San Francisco, California.
WHEREAS,HCP Forbes,LLC (“Applicant”)has proposed to construct an approximately 1.65 million square
foot life sciences campus by way of a Master Plan for the Vantage Life Science Campus and the execution of a
total of three (3)precise plans or building phases at 420,440,460,480 and 490 Forbes Boulevard (“Project
Site”) and,
WHEREAS, the proposed Project is located within the East of 101 planning sub-area; and,
WHEREAS,the Applicant seeks entitlement approval for the Vantage Life Science Campus Master Plan and
Precise Plan (Phase 2)including the following:Master Plan,Precise Plan,Design Review,Use Permit,
Transportation Demand Management Plan,Vesting Tentative Map and Development Agreement (“Project”);
and,
WHEREAS,approval of the applicant’s proposal is considered a “project”for purposes of the California
Environmental Quality Act, Pub. Resources Code §21000, et seq. (“CEQA”); and,
WHEREAS,City Council certified an Environmental Impact Report (“EIR”)on October 12,2022,(State
Clearinghouse number 2021020064)in accordance with the provisions of CEQA and the CEQA Guidelines,
which analyzed the potential environmental impacts of the development of the 2040 General Plan Update,
Zoning Code Amendments and Climate Action Plan (“2040 General Plan EIR”); and
WHEREAS,City Council also adopted a Statement of Overriding Considerations (“SOC”)on October 12,
2022,in accordance with the provisions of CEQA and the CEQA Guidelines,which carefully considered each
significant and unavoidable impact identified in the 2040 General Plan EIR and found that the significant
environmental impacts are acceptable in light of the project’s social, economic, and environmental benefits; and
WHEREAS,environmental analysis for the proposed Project was conducted in accordance with Guidelines
Section 15183,which concluded that the environmental effects associated with implementation of the Project
are fully within the scope of the environmental analysis conducted in the 2040 General Plan EIR,such that the
Project does not meet the criteria under California Environmental Quality Act (“CEQA”)Guidelines Sections
15164 or 15162 justifying preparation of additional CEQA documentation; and
WHEREAS,the Design Review Board reviewed the Project at its meetings of January 17,2023,and February
21, 2023, and recommended approval of the Project; and,
WHEREAS,on October 19,2023,the Planning Commission for the City of South San Francisco held a
lawfully noticed public hearing to solicit public comment and consider the proposed Development Agreement,
and recommended that the City Council approve the proposed Development Agreement; and
WHEREAS,the Planning Commission reviewed and carefully considered the information in the 2040 GeneralCity of South San Francisco Printed on 1/25/2024Page 1 of 4
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File #:24-03 Agenda Date:1/24/2024
Version:1 Item #:3a.
WHEREAS,the Planning Commission reviewed and carefully considered the information in the 2040 General
Plan EIR and Vantage CEQA Analysis pursuant to California Environmental Quality Act (CEQA)Guidelines
Section 15183 and by resolution, found that no additional CEQA analysis is required; and
WHEREAS,the Planning Commission exercised its independent judgment and analysis,and considered all
reports, recommendations, and testimony before making a determination on the Project; and
WHEREAS, the City and Applicant have drafted a proposed Development Agreement, attached
hereto as Exhibit A (“Development Agreement”)to outline the expectations and obligations of the parties for a
fifteen (15) year term and potential five (5)-year extension term; and
WHEREAS, the City and the Applicant now wish to enter into the Development Agreement in
Exhibit A; and
WHEREAS,City Council held a duly noticed public hearing on December 13,2023,to consider the proposed
Development Agreement, take public testimony, and introduce this Ordinance for adoption; and
WHEREAS,City Council has considered approval of the entitlements and the environmental impacts of the
proposed Project by separate resolutions.
NOW, THEREFORE, BE IT RESOLVED Council of the City of South San Francisco
does hereby ordain as follows:
SECTION 1. Findings.
Based on the entirety of the record before it,which includes without limitation,the California Environmental
Quality Act,Public Resources Code §21000,et seq.(“CEQA”)and the CEQA Guidelines,14 California Code
of Regulations §15000,et seq.;the South San Francisco General Plan;the South San Francisco Municipal
Code;the 2040 General Plan EIR and Statement of Overriding Considerations;Vantage Project CEQA Analysis
including all appendices thereto;the Project applications;the Vantage Project Plan set,prepared by Flad
Architects,dated July 14,2023,the Transportation Impact Analysis including Transportation Demand
Management Plan,as prepared by Fehr &Peers,dated August 2023,Community Benefits Analysis,dated
August 18,2023,Design Review Board recommendations dated January 30,2023 and February 21,2023,
Development Agreement,and all reports,minutes,and public testimony submitted as part of the Planning
Commission’s duly noticed October 19,2023 meeting,the City Council’s duly noticed December 13,2023
meeting;and any other evidence (within the meaning of Public Resources Code Sections 21080(e)and
21082.2), the City Council of the City of South San Francisco hereby finds as follows:
A. The foregoing recitals are true and correct and made a part of this Ordinance.
B. The Exhibit attached to this Ordinance, the proposed Development Agreement
(Exhibit A), is incorporated by reference and made a part of this Ordinance, as if set forth fully
herein.
C. The documents and other material constituting the record for these proceedings are
located at the Planning Division for the City of South San Francisco, 315 Maple Avenue, South
San Francisco, CA 94080, and in the custody of Chief Planner.
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D.The Development Agreement,attached hereto as Exhibit A,sets for the duration of the Agreement,the
property,project criteria,and other required information identified in Government Code section 65865.2.Based
on the findings in support of the Project,the City Council finds that the Development Agreement,vesting a
Project to create a vibrant,transit supported,state of the art research and office campus for the life sciences,is
consistent with the objectives, policies, general land uses and programs specified in the General Plan.
E. The Development Agreement is compatible with the uses authorized in, and the
regulations prescribed in the Zoning District in which the real property is located as it does not grant special
provisions for Applicant and is primarily intended to ensure compliance and community benefits for the City.
F. The Development Agreement is in conformity with public convenience, general
welfare and good land use practice as it will strengthen the future development of the Project and fulfill
community benefits for the City, including open space, and conveyance of the Fire Station Parcel.
G.The Development Agreement will not be detrimental to the health,safety and general welfare of the City as
implementation of the Development Agreement will permit the construction of a well-designed,well-planned
Project that will locate appropriate uses as contemplated by the General Plan and Zoning Ordinance and
provide a location for a potential future fire station.
H. The Development Agreement will not adversely affect the orderly development of
property or the preservation of property values because implementation of the Development Agreement will
permit the construction of the Project on underutilized commercial sites and will provide community serving
benefits.
SECTION 2. Approval of Development Agreement
A.City Council of the City of South San Francisco hereby approves the Development Agreement with HCP
Forbes, LLC attached hereto as Exhibit A and incorporated herein by reference.
B. City Council further authorizes the City Manager to execute the Development
Agreement, on behalf of the City, in substantially the form attached as Exhibit A, and to make
revisions,corrections,and minor modifications to such Agreement,subject to the approval of the City Attorney,
which do not materially alter or substantially increase the City’s obligations thereunder.
SECTION 3. Severability
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or
unconstitutional,the remainder of this Ordinance,including the application of such part or provision to other
persons or circumstances shall not be affected thereby and shall continue in full force and effect.To this end,
provisions of this Ordinance are severable.Council of the City of South San Francisco hereby declares that it
would have passed each section,subsection,subdivision,paragraph,sentence,clause,or phrase hereof
irrespective of the fact that any one or more sections,subsections,subdivisions,paragraphs,sentences,clauses,
or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 4. Publication and Effective Date.
Pursuant to the provisions of Government Code Section 36933,a summary of this Ordinance shall be prepared
by the City Attorney.At least five (5)days prior to the City Council meeting at which this Ordinance is
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by the City Attorney.At least five (5)days prior to the City Council meeting at which this Ordinance is
scheduled to be adopted,the City Clerk shall (1)publish the Summary,and (2)post in the City Clerk’s Office a
certified copy of this Ordinance.Within fifteen (15)days after the adoption of this Ordinance,the City Clerk
shall (1)publish the summary,and (2)post in the City Clerk’s Office a certified copy of the full text of this
Ordinance along with the names of those City Council members voting for and against this Ordinance or
otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption.
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City Clerk
City of South San Francisco
P.O. Box 711
South San Francisco, CA 94083
______________________________________________________________________________
(Space Above This Line Reserved For Recorder’s Use)
This instrument is exempt from recording fees pursuant to Government Code section 27383.
Documentary Transfer Tax is $0.00 (exempt per Revenue & Taxation Code section 11922, Transfer to
Municipality).
DEVELOPMENT AGREEMENT
BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO
AND
HCP FORBES, LLC
SOUTH SAN FRANCISCO, CALIFORNIA
ADOPTED BY ORDINANCE NO. ______________
OF THE CITY OF SOUTH SAN FRANCISCO CITY COUNCIL
Effective Date: __________________, 2024
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TABLE OF CONTENTS
Page
ARTICLE 1 DEFINITIONS .........................................................................................................3
ARTICLE 2 EFFECTIVE DATE AND TERM ...........................................................................6
2.1 Effective Date ..........................................................................................................6
2.2 Term .........................................................................................................................6
2.3 Administrative Extension.........................................................................................7
ARTICLE 3 OBLIGATIONS OF DEVELOPER ........................................................................7
3.1 Obligations of Developer Generally ........................................................................7
3.2 City Development Fees ............................................................................................7
3.3 Community Benefit Payments .................................................................................8
3.4 Other Developer Commitments ...............................................................................8
ARTICLE 4 OBLIGATIONS OF CITY ....................................................................................10
4.1 Obligations of City Generally ................................................................................10
4.2 Protection of Vested Rights ...................................................................................10
4.3 Availability of Public Services ..............................................................................10
4.4 Developer’s Right to Rebuild ................................................................................10
4.5 Expedited Plan Check Process ...............................................................................10
4.6 Project Coordination ..............................................................................................10
4.7 Estoppel Certificates ..............................................................................................11
ARTICLE 5 COOPERATION – IMPLEMENTATION............................................................11
5.1 Processing Application for Subsequent Approvals................................................11
5.2 Timely Submittals By Developer...........................................................................11
5.3 Timely Processing By City ....................................................................................11
5.4 Denial of Subsequent Approval Application .........................................................11
5.5 Other Government Permits ....................................................................................12
5.6 Assessment Districts or Other Funding Mechanisms ............................................12
ARTICLE 6 STANDARDS, LAWS AND PROCEDURES GOVERNING THE
PROJECT ...............................................................................................................13
6.1 Vested Right to Develop ........................................................................................13
6.2 Permitted Uses Vested by This Agreement ...........................................................13
6.3 Applicable Law ......................................................................................................13
6.4 Uniform Codes .......................................................................................................14
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6.5 No Conflicting Enactments ....................................................................................14
6.6 Initiatives and Referenda; Other City Actions Related to Project .........................15
6.7 Environmental Review and Mitigation ..................................................................15
6.8 Future Legislative Actions .....................................................................................16
6.9 Life of Subdivision Maps, Development Approvals, and Permits ........................17
6.10 State and Federal Law ............................................................................................18
6.11 Timing and Review of Project Construction and Completion ...............................18
ARTICLE 7 AMENDMENT......................................................................................................18
7.1 Project Amendments ..............................................................................................18
7.2 Amendment of this Agreement ..............................................................................19
ARTICLE 8 ASSIGNMENT AND TRANSFER .......................................................................20
8.1 Assignment and Transfer .......................................................................................20
ARTICLE 9 COOPERATION IN THE EVENT OF LEGAL CHALLENGE ..........................21
9.1 Cooperation ............................................................................................................21
9.2 Reapproval .............................................................................................................21
9.3 Extension Due to Legal Challenge ........................................................................22
ARTICLE 10 DEFAULT; REMEDIES; TERMINATION .........................................................22
10.1 Defaults ..................................................................................................................22
10.2 Termination ............................................................................................................22
10.3 Enforced Delay; Extension of Time of Performance .............................................22
10.4 Legal Action...........................................................................................................23
10.5 Periodic Review .....................................................................................................23
10.6 California Law .......................................................................................................24
10.7 Resolution of Disputes ...........................................................................................25
10.8 Attorneys’ Fees ......................................................................................................25
10.9 Hold Harmless .......................................................................................................25
ARTICLE 11 MISCELLANEOUS ..............................................................................................25
11.1 Incorporation of Recitals and Introductory Paragraph ...........................................25
11.2 No Agency .............................................................................................................25
11.3 Enforceability .........................................................................................................25
11.4 Severability ............................................................................................................26
11.5 Other Necessary Acts and City Approvals ............................................................26
11.6 Construction ...........................................................................................................26
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11.7 Other Miscellaneous Terms ...................................................................................26
11.8 Covenants Running with the Land .........................................................................26
11.9 Notices ...................................................................................................................27
11.10 Mortgagee Protection .............................................................................................28
11.11 Entire Agreement, Counterparts And Exhibits ......................................................28
11.12 No Third Party Beneficiaries .................................................................................29
11.13 Recordation Of Development Agreement .............................................................29
Exhibit A – Description and Diagram of Project Site
Exhibit A1 – Legal Description of Project Site
Exhibit A2 – Diagram of Project Site – Existing Parcels
Exhibit A3 – Diagram of Project Site – Proposed Parcels
Exhibit B – List of Project Approvals as of Effective Date
Exhibit C – City Fees, Exactions, and Payments
Exhibit D – Sustainability Features
Exhibit E – Applicable Laws
Exhibit F – Form of Assignment and Assumption Agreement
Exhibit G – Fire Station Agreement
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DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (“Agreement”) is entered into as of
________________, 2024 (“Effective Date”) by and between HCP Forbes, LLC (“Developer”),
and the City of South San Francisco, a municipal corporation (“City”), pursuant to California
Government Code (“Government Code”) sections 65864 et seq. Developer and City are
sometimes collectively referred to herein as “Parties.”
RECITALS
A. To strengthen the public planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the Legislature of the State
of California enacted California Government Code sections 65864 et seq., which authorizes City
to enter into an agreement with any person having a legal or equitable interest in real property for
the development of such property.
B. Pursuant to Government Code section 65865, City has adopted procedures and
requirements for the consideration of development agreements (South San Francisco Municipal
Code (“SSFMC”) Chapter 19.60). This Agreement has been processed, considered, and executed
in accordance with such procedures and requirements.
C. Developer has a legal and/or equitable interest in certain real property located in
the City on the approximately 18.99 acre site consisting of 420 Forbes Boulevard (APN 015-050-
710, 015-050-720, 015-050-730), 440 Forbes Boulevard (APN 015-050-230), 460 Forbes
Boulevard (APN 015-050-900), and 480 and 490 Forbes Boulevard (APN 015-050-890) as more
particularly described and depicted in Exhibit A (“Project Site”). Developer has requested City
to enter into a development agreement and proceedings have been taken in accordance with the
rules and regulations of the City with regard to Developer’s proposed Project (as defined below).
D. The terms and conditions of this Agreement have undergone extensive review by
Developer, City, and the City of South San Francisco City Council (“City Council”) members and
have been found to be fair, just, and reasonable.
E. The City Council believes that the best interests of the citizens of the City of South
San Francisco and the public health, safety, and welfare will be served by entering into this
Agreement.
F. This Agreement and the Project (as defined in Section 1.1 of this Agreement) will
be consistent with the Shape SSF 2040 General Plan Update (“General Plan”), and the South San
Francisco Municipal Code (“SSFMC”).
G. Development (as defined in Section 1.15 of this Agreement) of the Project Site with
the Project in accordance with the terms of this Agreement will provide substantial benefits to and
will further important policies and goals of City. This Agreement will, among other things, benefit
the City by (1) advancing the City’s economic development goals of enhancing the
competitiveness of the local economy and maintaining a strong and diverse revenue and job base,
(2) creating a state-of-the art commercial campus development to advance General Plan objectives
for the area, (3) supporting the City’s achievement of its adopted Climate Action Plan goals
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through incorporation of environmentally sensitive design and equipment, energy conservation
features, water conservation measures, and other sustainability features, (5) generating
construction-related benefits, including employment, economic and fiscal benefits related to new
construction, (6) providing substantial community benefits, including conveyance of a site for a
planned new fire station, and (7) generating fiscal benefits to the City and San Mateo County due
to community benefits, taxes and other revenue sources from operations.
H. In exchange for the benefits to City described in the preceding Recital, together
with the other public benefits that will result from the Development of the Project, Developer will
receive by this Agreement assurance that it may proceed with the Project in accordance with
Applicable Law (as defined in Section 1.6 of this Agreement), and therefore desires to enter into
this Agreement.
I. This Agreement will eliminate uncertainty in planning and provide for the orderly
Development of the Project on the Project Site, facilitate progressive installation of necessary
improvements, provide for public services appropriate to the Development of the Project on the
Project Site, and generally serve the purposes for which development agreements under section
65864, et seq. of the California Government Code are intended.
J. On October 12, 2022, after a duly noticed public hearing, by Resolution No. 22 -
393, the City Council certified the Program Environmental Impact Report (SCH# 2021020064)
(“Program EIR”) for the General Plan in accordance with the California Environmental Quality
Act (Public Resources Code §§ 2100 et seq. (“CEQA”) and the CEQA Guidelines (California
Code of Regulations, Title 14, §§ 15000 et seq.). The Program EIR analyzed the potential
environmental impacts of development of the General Plan. Concurrent with its certification of the
Program EIR, and by the same resolution, the City Council duly adopted CEQA findings of fact,
a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program
(“MMRP”) for the General Plan. The Statement of Overriding Considerations carefully
considered each of the General Plan’s significant and unavoidable impacts identified in the EIR
and determined that each such impact is acceptable in light of the General Plan’s economic, legal,
social, technological and other benefits. The MMRP identifies all mitigation measures identified
in the Program EIR that are applicable to the General Plan and sets forth a program for monitoring
or reporting on the implementation of such mitigation measures.
K. On October 19, 2023, following a duly noticed public hearing, the City of South
San Francisco Planning Commission (“Planning Commission”) recommended that the City
Council approve this Agreement and adopt the Resolutions and Ordinances described in Recitals
L through M.
L. On December 13, 2023 after a duly noticed public hearing, by Resolution No.
[XXXX], the City Council approved the environmental document for the Project finding that in
accordance with CEQA Guidelines section 15183, the Project is consistent with the development
density established by the General Plan for which the Program EIR was certified and thus, the
Project does not require additional environmental review, except the analysis contained in the
Project’s environmental document, which examined all potential project-specific environmental
effects which are peculiar to the Project and the Project Site.
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M. On December 13, 2023, after a duly noticed public hearing, the City Council duly
adopted the following resolution and introduced the following ordinances granting certain land use
entitlements for Development of the Project on the Project Site:
1. Resolution No. [XXXX] for Project P22-0117 (Master Plan) and Project
P22-0138 (Precise Plan) adopting the: Master Plan MP23-0002, Precise Plan PP23-0001, Design
Review DR22-0036, Use Permit UP22-0011, Transportation Demand Management TDM22-0009,
Vesting Tentative Map PM22-0002, Development Agreement DA22-0005 & Environmental
Determination ND22-0002
2. Ordinance No. [XXXX] introducing, approving and authorizing the
execution of this Agreement.
The entitlements described in Recitals M, and listed on Exhibit B, are collectively referred to
herein as the “Project Approvals.”
N. The Project has been designed to fulfill the Development vision of the Project
Approvals consistent with the City’s land use policies and regulations, and to secure Developer’s
ability to achieve the Development potential of the Project Site at an appropriate level of growth.
O. In adopting Ordinance No. [_], the City Council found that this Agreement is
consistent with the General Plan and Title 20 of the SSFMC and has followed all necessary
proceedings in accordance with the City’s rules and regulations for the approval of this Agreement.
AGREEMENT
NOW, THEREFORE, the Parties, pursuant to the authority contained in Government Code
sections 65864 through 65869.5 and Chapter 19.60 of the South San Francisco Municipal Code in
effect on the Effective Date and in consideration of the mutual covenants and agreements contained
herein, agree as follows:
ARTICLE 1
DEFINITIONS
Project Description. As used herein, “Project” shall mean the Development on the Project Site
as contemplated by the Project Approvals and, as, when, and if they are issued, the Subsequent
Approvals, including, without limitation, the permitted uses, density and intensity of uses, and
maximum size and height of buildings specified in the project plans prepared by Flad Architects
on July 14, 2023 and as such Project Approvals and Subsequent Approvals may be further
defined or modified pursuant to the provisions of this Agreement. Without limitation, the Project
shall consist of buildings that may be used for office/R&D and amenities of one million six
hundred and fifty five thousand two hundred and two (1,655,202) total gross square feet at a 2.01
FAR, including approximately three hundred and sixty-six thousand six hundred twenty
(366,620) gross square feet of previously entitled buildings currently under construction (“Phase
1 Project”), and one million two hundred and eighty-eight thousand five hundred eighty two
(1,288,582) gross square feet of proposed new construction; vehicle parking at a ratio of 2.24
striped stalls per 1,000 square feet of development; and an approximately nine thousand six
hundred (9,600) gross square foot municipal fire station with fifteen (15) parking spaces and a
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minimum of two ( 2) fire truck bays on an approximately one acre site that would be constructed
by the City, all as set forth in the Project Approvals.
1.1 “Administrative Agreement Amendment” shall have that meaning set forth in
Section 7.2 of this Agreement.
1.2 “Administrative Project Amendment” shall have that meaning set forth in
Section 7.1 of this Agreement.
1.3 “Affiliate” shall have that meaning set forth in Section 8.1 of this Agreement.
1.4 “Agreement” shall mean this Development Agreement.
1.5 “Applicable Law” shall have that meaning set forth in Section 6.3 of this
Agreement.
1.6 “CEQA” shall have that meaning set forth in Recital J of this Agreement.
1.7 “City” shall mean the City of South San Francisco.
1.8 “City Council” shall mean the City of South San Francisco City Council.
1.9 “City Law” shall have that meaning set forth in Section 6.5 of this Agreement.
1.10 “CFD” shall have that meaning set forth in Section 5.6 of this Agreement.
1.11 “Community Benefits” shall have that meaning set forth in Section 3.3 of this
Agreement.
1.12 “Control,” “controlled,” and “controlling” shall have that meaning set forth in
Section 8.1 of this Agreement.
1.13 “Deficiencies” shall have that meaning set forth in Section 9.2 of this Agreement.
1.14 “Developer” shall mean HCP Forbes, LLC and any Affiliate, successors or
assignees pursuant to Article 8 of this Agreement.
1.15 “Development” or “Develop” shall mean the division or subdivision of land into
one or more parcels; the construction, reconstruction, conversion, structural alteration, relocation,
improvement, maintenance, or enlargement of any structure; any excavation, fill, grading, landfill,
or land disturbance; the construction of specified road, path, trail, transportation, water, sewer,
electric, communications, and wastewater infrastructure directly related to the Project whether
located within or outside the Project Site; the installation of landscaping and other facilities and
improvements necessary or appropriate for the Project; and any use or extension of the use of land.
1.16 “Development Fees” shall have that meaning set forth in Section 3.2 of this
Agreement.
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1.17 “Effective Date” shall have that meaning set forth in the introductory paragraph to
this Agreement.
1.18 “EIR” shall have that meaning set forth in Recital J of this Agreement.
1.19 “Fire Station” shall have the meaning set forth in Section 3.3 of this Agreement.
1.20 “Fire Station Agreement” shall have the meaning set forth in Section 3.3(a) of
this Agreement.
1.21 “Fire Station Parcel” shall have the meaning set forth in Section 3.3 of this
Agreement.
1.22 “Force Majeure Delay” shall have that meaning set forth in Section 10.3 of this
Agreement.
1.23 “GDP” shall have that meaning set forth in Section 10.3 of this Agreement.
1.24 “General Plan” shall have that meaning set forth in Recital F of this Agreement.
1.25 “Judgment” shall have that meaning set forth in Section 9.2 of this Agreement.
1.26 “Legal Challenge” shall have that meaning set forth in Section 9.1 of this
Agreement.
1.27 “Mortgage” shall have that meaning set forth in Section 11.10 of this Agreement.
1.28 “Mortgagee” shall mean the beneficiary of any Mortgage.
1.29 “MMRP” shall have that meaning set forth in Recital L of this Agreement.
1.30 “Parties” shall mean the Developer and City, collectively.
1.31 “Periodic Review” shall have that meaning set forth in Section 10.5 of this
Agreement.
1.32 “Planning Commission” shall have that meaning set forth in Recital J of this
Agreement.
1.33 “Project Approvals” shall have that meaning set forth in Recital M of this
Agreement.
1.34 “Project Site” shall have that meaning set forth in Recital C of this Agreement.
1.35 “Severe Economic Recession” shall have that meaning set forth in Section 10.3 of
this Agreement.
1.36 “SOV” shall have that meaning set forth in Section 3.4 of this Agreement.
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1.37 “SSFMC” shall have the meaning set forth in Recital B of this Agreement.
1.38 “Subsequent Approvals” shall mean those certain other land use approvals,
entitlements, and permits other than the Project Approvals that are necessary or desirable for the
Project. In particular, for example and without limitation, the parties contemplate that Developer
may, at its election, seek approvals for the following: amendments of the Project Approvals;
Precise Plans; improvement agreements; grading permits; demolition permits; building permits;
lot line adjustments; sewer, water, and utility connection permits; certificates of occupancy;
subdivision map approvals; parcel map approvals; resubdivisions; zoning and rezoning approvals;
conditional use permits; minor use permits; sign permits; any subsequent approvals required by
other state or federal entities for Development and implementation of the project that are sought
or agreed to in writing by Developer; and any amendments to, or repealing of, any of the foregoing.
1.39 “TDM Plan” shall have that meaning set forth in Recital M of this Agreement.
1.40 “Term” shall have that meaning set forth in Section 2.2 of this Agreement.
1.41 “VTM” shall have that meaning set forth in Recital M of this Agreement.
To the extent that any defined terms contained in this Agreement are not defined above, then such
terms shall have the meaning otherwise ascribed to them elsewhere in this Agreement, or if not in
this Agreement, then by controlling law, including the SSFMC.
ARTICLE 2
EFFECTIVE DATE AND TERM
2.1 Effective Date. This Agreement is effective as of the Effective Date first set forth
above.
2.2 Term. The term of this Agreement shall commence upon the Effective Date and
continue (unless this Agreement is otherwise terminated or extended as provided in this
Agreement) until fifteen (15) years plus one (1) day after the Effective Date (“Term”). The Term
shall be automatically extended for an additional (5) five years provided that, the Developer
obtains a building permit for one Project building prior to the expiration of the Term.
ARTICLE 3
OBLIGATIONS OF DEVELOPER
3.1 Obligations of Developer Generally. The Parties acknowledge and agree that
City’s agreement to perform and abide by the covenants and obligations of City set forth in this
Agreement is a material consideration for Developer’s agreement to perform and abide by its long
term covenants and obligations, as set forth herein. The Parties acknowledge that many of
Developer’s long term obligations set forth in this Agreement are in addition to Developer’s
agreement to perform all the applicable mitigation measures identified in the MMRP. Failure by
Developer to provide the community benefits or make any of the payments called for in this Article
3 at the times and in the amounts specified shall constitute a default by Developer subject to the
provisions of Article 10 of this Agreement.
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3.2 City Development Fees.
(a) Developer shall pay those processing, building permit, inspection and plan
checking fees and charges required by City for processing applications and requests for Subsequent
Approvals under the applicable regulations in effect at the time such applications and requests are
submitted to City.
(b) Consistent with the terms of the Agreement, City shall have the right to
impose only such development fees (“Development Fees”) as had been adopted by City as of the
date the Project’s development application was determined to be complete (i.e. February 9, 2023),
as set forth in Exhibit C, only at those rates of such Development Fees in effect at the time of
payment of the Development Fees. The Development Fees shall be paid at the time set forth in
Exhibit C except as otherwise provided in Article 3 of this Agreement. This Section 3.2(b) shall
not prohibit City from imposing on Developer any fee or obligation that is imposed by a regional
agency or the State of California in accordance with state or federal obligations and required to be
implemented by City.
3.3 Community Benefits. As consideration for the Project Approvals, Developer
agrees to convey to the City an approximately one acre parcel on the northwestern corner of the
Project Site accessible from Forbes Boulevard (the “Fire Station Parcel”) pursuant to the terms
set forth in this Section 3.3 and that certain Fire Station Agreement attached as Exhibit G to be
executed concurrently herewith (the “Fire Station Agreement”). The obligations contained in
Article 3 and the Fire Station Agreement memorializing Developer’s Community Benefits
commitments satisfy Developer’s Community Benefits obligations pursuant to SSFMC Section
20.395.003.A.2(c) requiring that developers enter into Community Benefits Agreements.
(a) Fire Station Parcel Use Restriction. City shall use reasonable, efforts to
commence construction of a fire station on the Fire Station Parcel within a period of seven (7)
years from the Effective Date of this Agreement. City may not sell or develop an alternative use
on the Fire Station Parcel for a period of seven (7) years from the Effective Date of this Agreement.
For purposes of this Agreement, the seven (7) year period during which the City will make efforts
to commence construction of a Fire Station and/or will not sell or develop an alternative use on
the Fire Station Parcel as discussed in the foregoing sentences of this Section 3.3(a) shall be known
as the “Restriction Period”.
(b) Right of First Offer/Right of First Refusal. Subject to the City’s compliance
with the provisions of the California Surplus Land Act, if the City elects to sell the Fire Station
Parcel after the expiration of the Restriction Period, then Developer shall have a right of first offer
to repurchase the Fire Station Parcel, and if the City thereafter elects to sell to a subsequent party
and Developer has not exercised its right of first offer, Developer shall have a right of first refusal
(“ROFO/ROFR”) in accordance with the procedures outlined in the Fire Station Agreement.
Notwithstanding the foregoing, Developer shall not have a ROFO/ROFR if City elects to develop
another public use consistent with Table 20.100.002: Use Regulations for BTP-H zoning district
in effect on the Fire Station Parcel after the Restriction Period.
(c) Satisfaction of Community Benefits Fee Obligation. The Parties
acknowledge and agree that Developer’s conveyance of the Fire Station Parcel to the City satisfies
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Developer’s entire Community Benefits Program Fee obligation (“Community Benefit
Obligation”) as set forth on Exhibit C for the development of the Property. The City agrees that
any future development of the Property shall not be subject to any new or increased Community
Benefit Obligation that may be imposed, except to the extent applicable to any increased gross
square footage that is built in excess of the gross square footage allowed on the Property by the
Project Approvals as such gross square footage is articulated in Project Approvals at the time of
the Effective Date of this Agreement . The provisions of this Section 3.3(c) shall remain in full
force and effect and survive the expiration or earlier termination of this Agreement.
3.4 Other Developer Commitments
(a) Amenity Building/Support for Local Businesses. Consistent with the
Project Approvals, Developer intends to provide an amenity building that will provide, subject
to commercial tenant needs, some publicly-accessible amenities, as well as support for local
businesses.
(b) Transportation Demand Management Plan. Developer shall implement the
TDM Plan approved by the City as described in Recital M to reduce the Project-related single
occupancy vehicle (“SOV”) trips and to encourage the use of public transit and alternate modes of
transportation. The TDM Plan is designed to ensure that a minimum of fifty percent (50%) of
alternative mode use will be achieved and maintained. If Developer constructs the third parking
structure pursuant to the Project Approvals, then the Project shall implement performance
measures to ensure that an increased target of fifty-five percent (55%) alternative mode use will
be achieved and maintained. The TDM Plan shall be implemented through one or more individual
TDM plans. Developer shall comply with all annual reporting obligations associated with the TDM
Plan as outlined in SSFMC § 20.400.006.
(c) Public Open Space. Developer shall provide publicly accessible open space
on the Project Site, substantially in the size and in the locations provided in the Phase 1 Project
and Project Approvals, and improved with active and passive recreation amenities, as provided in
the Phase 1 Project and Project Approvals. Nothing in this Agreement shall prohibit Developer
from enacting reasonable rules and regulations for the usage of such open space, including
regulations related to hours of operation, security, and conduct within such open space.
(d) Sustainability Commitments. Developer shall implement the sustainability
features identified in the Project Approvals. For ease of reference only, a list of these sustainability
features is attached as Exhibit D.
(e) Mitigation Measures. Developer shall comply with the Mitigation Measures
identified and approved in environmental document for the Project that comports with the Program
EIR for the General Plan, in accordance with CEQA or other law as identified and as set forth in
the MMRP.
(f) Utility Relocation and Replacement. Developer, at is sole cost, shall be
responsible for all on-site work to relocate and upgrade required utilities and infrastructure on the
Project Site. As each phase of utilities infrastructure is built, it is anticipated that the constructed
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public infrastructure will be dedicated to and accepted by the City, as set forth in the Project
Approvals.
(g) Community Facilities District Support. Developer agrees to participate, to
the extent Developer remains a stakeholder, in the City’s anticipated future process to establish a
community facilities district (“CFD”) serving land within the East of 101 Area Plan boundary;
provided, however, that such participation shall not be considered by City to be a commitment by
Developer to pay any future CFD assessments. In the event that a CFD is not formed during the
term of this Agreement, Developer shall not be subject to any additional development fee,
assessment or tax, except as otherwise provided for or contemplated in this Development
Agreement.
ARTICLE 4
OBLIGATIONS OF CITY
4.1 Obligations of City Generally. The Parties acknowledge and agree that
Developer’s agreement to perform and abide by its covenants and obligations set forth in this
Agreement, including Developer’s decision to site the Project in the City and Developer’s
conveyance of the Fire Station Parcel, is a material consideration for City’s agreement to perform
and abide by the long term covenants and obligations of City, as set forth herein.
4.2 Protection of Vested Rights. City acknowledges that the vested rights provided
to Developer by this Agreement might prevent some City Law from applying to the Project Site
or prevailing over all or any part of this Agreement. City further acknowledges that Developer’s
vested rights to Develop the Project Site include the rights provided by the Project Approvals or
the Subsequent Approvals, which may not be diminished by the enactment or adoption of City
Law, except as provided in this Agreement. City shall cooperate with Developer and shall
undertake actions mutually agreed by the Parties as necessary to ensure that this Agreement
remains in full force and effect.
4.3 Limitation on Fire Station Parcel. During the Restriction Period, City agrees that
the Fire Station Parcel shall only be used for fire station and associated public uses, and shall not
be developed with land uses that are incompatible or compete with the Project.
4.4 Availability of Public Services. To the maximum extent permitted by law and
consistent with its authority, City shall assist Developer in reserving such capacity for sewer and
water services as may be necessary to serve the Project.
4.5 Developer’s Right to Rebuild. City agrees that, during the Term of this
Agreement, Developer may renovate or rebuild all or any part of the Project should it become
necessary due to damage or destruction within Developer’s sole discretion. Any such renovation
or rebuilding shall be subject to the square footage and height limitations vested by this Agreement,
and shall comply with the Project Approvals, the building codes existing at the time of such
rebuilding or reconstruction, and the requirements of CEQA.
4.6 Expedited Plan Check Process. City agrees to provide an expedited plan check
process for the approval of Project drawings consistent with its existing practices for expedited
plan checks. Developer agrees to pay City’s established fees for expedited plan check services.
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City shall use reasonable efforts to provide such plan checks within three (3) weeks of a submittal
that meets the requirements of Section 5.2. City acknowledges that City’s timely processing of
Subsequent Approvals and plan checks is essential to the successful and complete Development
of the Project.
4.7 Project Coordination. City shall perform those obligations of City set forth in this
Agreement, which the City acknowledges are essential for the Developer to perform its obligations
in Article 3. City and Developer shall use good faith and diligent efforts to communicate,
cooperate and coordinate with each other during Development of the Project.
4.8 Estoppel Certificates. Developer may at any time, and from time to time, deliver
to City notice requesting that City certify to Developer, a potential transferee pursuant to Article
8, a potential lender to Developer, or a Mortgagee in writing: (i) that this Agreement is in full force
and effect and creates binding obligations on the Parties; (ii) that this Agreement has not been
amended or modified, or if so amended or modified, identifying such amendments or
modifications; (iii) that Developer is not in Default in the performance of its obligations under this
Agreement, or if in Default, identifying the nature, extent and status of any such De fault; and
(iv) the findings of the City with respect to the most recent Periodic Review performed pursuant
to Section 10.5 of this Agreement. The City Manager or his or her designee, acting on behalf of
City, shall execute and return such certificate within thirty (30) calendar days after receipt of the
request.
4.9 Timing for Approval of Subsequent Project Approvals. Except in situations
where delay is outside the reasonable control of City or in situations of Force Majeure Delay, City
will use reasonable efforts to ensure that Subsequent Project Approvals will be timely granted.
ARTICLE 5
COOPERATION – IMPLEMENTATION
5.1 Processing Applications for Subsequent Approvals. By approving the Project
Approvals, City has made a final policy decision that the Project is in the best interests of the
public health, safety and general welfare of the City. Accordingly, in considering any application
for a Subsequent Approval, to the maximum extent permitted by law, City shall not use its
discretionary authority to revisit, frustrate, or change the policy decisions or material terms
reflected by the Project Approvals, or otherwise to prevent or delay Development of the Project.
Instead, the Subsequent Approvals shall be deemed to be tools to implement those final policy
decisions.
5.2 Timely Submittals By Developer. Developer acknowledges that City cannot
expedite processing Subsequent Approvals until Developer submits complete applications on a
timely basis. Developer shall use its reasonable efforts to (i) provide to City in a timely manner
any and all documents, applications, plans, and other information necessary for City to carry out
its obligations hereunder; and (ii) cause Developer’s planners, engineers, and all other consultants
to provide to City in a timely manner all such documents, applications, plans and other necessary
required materials as set forth in the Applicable Law. It is the express intent of Developer and City
to cooperate and diligently work to obtain any and all Subsequent Approvals.
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5.3 Timely Processing By City. Upon submission by Developer of all appropriate
applications and processing fees for any Subsequent Approval, City shall, to the maximum extent
permitted by law, promptly and diligently commence and complete all steps necessary to act on
the Subsequent Approval application including, without limitation: (i) providing at Developer’s
expense and subject to Developer’s request and prior approval, reasonable overtime staff
assistance and/or staff consultants for planning and processing of each Subsequent Approval
application; (ii) if legally required, providing notice and holding public hearings; and (iii) acting
on any such Subsequent Approval application. City shall ensure that adequate staff is available,
and shall authorize overtime staff assistance as may be necessary, to timely process any such
Subsequent Approval application.
5.4 Denial of Subsequent Approval Application. City may deny an application for
a Subsequent Approval only if such application does not comply with this Agreement or
Applicable Law or with any state or federal law, regulations, plans, or policies as set forth in
Section 6.10.
5.5 Other Government Permits. At Developer’s sole discretion and in accordance
with Developer’s construction schedule, Developer shall apply for such other permits and
approvals as may be required by other governmental or quasi-governmental entities in connection
with the Development of, or the provision of services to, the Project. City, at Developer’s expense,
shall cooperate with Developer in its efforts to obtain such permits and approvals and shall, from
time to time, at the request of Developer, use its reasonable efforts to assist Developer to ensure
the timely availability of such permits and approvals.
5.6 Assessment Districts or Other Funding Mechanisms.
(a) Existing Fees. As set forth in Section 3.2, above, the Parties understand and
agree that as of the Effective Date the fees, exactions, and payments listed in Exhibit C are the
only City fees and exactions that apply to the Project. Except as otherwise listed in Exhibit C, City
is unaware of any pending efforts to initiate, or consider applications for new or increased fees,
exactions, or assessments covering the Project Site, or any portion thereof that would apply to the
Project prior to the Effective Date.
(b) Application of Fees Imposed by Outside Agencies. City agrees to exempt
Developer from any and all fees, including but not limited to, development impact fees, which
other public agencies request City to impose at City’s discretion on the Project or Project Site after
the Effective Date through the expiration of the Term. This Section 5.6(d) shall not prohibit City
from imposing on Developer any fee or obligation that is imposed by a public agency in accordance
with state or federal obligations implemented by City in cooperation with such regional agency,
or that is imposed by the State of California.
ARTICLE 6
STANDARDS, LAWS AND PROCEDURES GOVERNING THE PROJECT
6.1 Vested Right to Develop. Developer shall have a vested right to Develop the
Project on the Project Site in accordance with the terms and conditions of this Agreement, the
Project Approvals, the Subsequent Approvals (as, when, and if they are issued), and Applicable
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Law, provided, however, that this Agreement shall not supersede, diminish, or impinge upon
vested rights secured pursuant to other Applicable Laws, including without limitation, vested
rights secured in connection with a vesting tentative subdivision map pursuant to the California
Subdivision Map Act (Gov’t. Code §§ 66410 et seq.) and vested rights secured pursuant to
common law vested rights protections. Nothing in this section shall be deemed to eliminate or
diminish the requirement of Developer to obtain any required Subsequent Approvals, or to
eliminate or diminish Developer’s right to have its applications for any Subsequent Approval
timely processed by City in accordance with this Agreement and Applicable Law.
6.2 Permitted Uses Vested by This Agreement. The vested permitted uses of the
Project Site; the vested density and intensity of use of the Project Site; the vested maximum height,
bulk, and size of proposed buildings; vested provisions for reservation or dedication of land for
public purposes and the location of public improvements; the general location of public utilities;
and other vested terms and conditions of Development applicable to the Project, shall be as set
forth in the vested Project Approvals and, as and when they are issued (but not in limitation of any
right to Development as set forth in the Project Approvals) the vested Subsequent Approvals. The
vested permitted uses for the Project shall include those uses listed as “permitted” in the Project
Approvals, as they may be amended from time to time in accordance with this Agreement.
6.3 Applicable Law. The rules, regulations, official policies, standards and
specifications applicable to the Project (the “Applicable Law”) shall be those set forth in this
Agreement and the Project Approvals, and, with respect to matters not addressed by this
Agreement or the Project Approvals, those rules, regulations, official policies, standards and
specifications (including City ordinances and resolutions) governing permitted uses, building
locations, timing of construction, densities, design, heights, and fees in force and effect on the
Effective Date of this Agreement. A list of Applicable Law is provided in Exhibit E.
6.4 Uniform Codes. City may apply to the Project Site, at any time during the Term,
then current Uniform Building Code and other uniform construction codes, and City’s then current
design and construction standards for road and storm drain facilities, provided any such uniform
code or standard has been adopted and uniformly applied by City on a citywide basis and provided
that no such code or standard is adopted for the purpose of preventing or otherwise limiting
Development of all or any part of the Project. Notwithstanding the foregoing, with respect to any
local “reach codes” adopted by City after the Effective Date (including, without limitation, any
local measures to restrict use of natural gas or require on-site renewable energy generation, or to
require energy efficiency measures beyond Title 24 requirements), (i) Developer shall be excused
from compliance with such reach codes for the first two buildings of the Project as set forth in the
Phase 2 Precise Plan, and (ii) regardless of whether Developer has submitted a complete Precise
Plan application for a phase of the Project prior to the effective date of any reach codes, City may,
at any time, excuse Developer from compliance with such reach codes on the basis of a written
good faith assessment by Developer that compliance will not be feasible, including for
technological or financial reasons, or that compliance would frustrate the goals of the Project
Approvals or this Agreement. Prior to submitting a written good faith assessment of reach code
feasibility to City, Developer shall confer in good faith with Peninsula Clean Energy, or a qualified
third-party consultant with subject matter expertise as reasonably identified by City, regarding
feasibility of both full and partial compliance with the reach code, including technological and
financial feasibility, and shall include the feasibility assessment of Peninsula Clean Energy or the
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other consultant identified by City. Notwithstanding the foregoing, Developer shall be excused
from compliance with such reach codes if the Project is otherwise exempt under the terms of the
reach codes.
6.5 No Conflicting Enactments. Developer’s vested right to Develop the Project shall
not be diminished by City approval (whether by action of the City Council or by initiative,
referendum or other means) of any ordinance, resolution, rule, regulation, standard, directive,
condition or other measure (each individually, a “City Law”) that is in conflict with Applicable
Law or this Agreement or that reduces the rights or assurances provided by this Agreement.
Without limiting the generality of the foregoing, any City Law shall be deemed to conflict with
Applicable Law or this Agreement or reduce the Development rights provided hereby if it would
accomplish any of the following results, either by specific reference to the Project or as part of a
general enactment which applies to or affects the Project:
(a) Change any land use designation or permitted use of the Project Site;
(b) Limit or control the availability of public utilities, services, or facilities, or
any privileges or rights to public utilities, services, or facilities (for example, water rights, water
connections or sewage capacity rights, sewer connections, etc.) for the Project, provided that
Developer has complied with all applicable requirements for receiving or using public utilities,
services, or facilities;
(c) Limit or control the location of buildings, structures, grading, or other
improvements of the Project in a manner that is inconsistent with or more restrictive than the
limitations included in the Project Approvals or the Subsequent Approvals (as and when they are
issued);
(d) Limit or control the rate, timing, phasing, or sequencing of the Development
of all or any part of the Project in any manner;
(e) Result in Developer having to substantially delay Development of the
Project or require the issuance of additional permits or approvals by City other than those required
by Applicable Law;
(f) Establish, enact, increase, or impose against the Project or Project Site any
fees, liens or other similar monetary obligations (including generating demolition permit fees,
encroachment permit and grading permit fees) other than those specifically permit ted by this
Agreement or other connection fees imposed by third party utilities;
(g) Impose against the Project any condition, dedication or other exaction not
specifically authorized by Applicable Law; or
(h) Limit the processing or procuring of applications and approvals of
Subsequent Approvals.
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6.6 Initiatives and Referenda; Other City Actions Related to Project.
(a) If any City Law is enacted or imposed by initiative or referendum, or by the
City Council directly or indirectly in connection with any proposed initiative or referendum, which
City Law would conflict with Applicable Law or this Agreement or reduce the Development rights
provided by this Agreement, such Law shall only apply to the Project to the extent it would not
diminish Developer’s vested rights to Develop the Project.
(b) Except as authorized in Section 6.10, without limiting the generality of any
of the foregoing, no moratorium or other limitation (whether relating to the rate, timing, phasing
or sequencing of Development) affecting subdivision maps, building permits or other entitlements
to use that are approved or to be approved, issued or granted within the City, or portions of the
City, shall diminish Developer’s vested rights to Develop the Project.
(c) To the maximum extent permitted by law, City shall cooperate with
Developer and shall undertake such actions as may be necessary to ensure this Agreement remains
in full force and effect.
(d) Developer reserves the right to challenge in court any City Law that would
reduce the Development rights provided by this Agreement.
6.7 New Taxes. Any subsequently enacted City-wide taxes shall apply to the Project
provided that: (1) the application of such taxes to the Property is prospective; and (2) the
application of such taxes would not prevent development in accordance with this
Agreement. Other than agreeing that Developer has no vested right against such new taxes,
Developer does not waive its right to challenge the legality of any such taxes under the controlling
law then in place.
6.8 Assessments. Nothing herein shall be construed to relieve the Property from
assessments levied against it by City pursuant to any statutory procedure for the assessment of
property to pay for infrastructure and/or services which benefit the Property.
6.9 Vote on Future Taxes, Assessments, and Fees. In the event that any assessment,
fee or charge which is applicable to the Project Site is subject to Article XIIIC or XIIID of the
California Constitution and Developer does not return its ballot, Developer agrees, on behalf of
itself and its successors, that City may count Developer’s ballot as an abstention on such tax,
assessment, fee or charge.
6.10 Environmental Review and Mitigation. The Parties understand that the Project’s
environmental document, the Program EIR and MMRP were intended to be used in connection
with each of the Project Approvals and Subsequent Approvals needed for the Project. Consistent
with the CEQA policies and requirements applicable to the Project’s environmental document and
the Program EIR, City agrees to use the Project’s environmental document, Program EIR, and
MMRP in connection with the processing of any Subsequent Approval to the maximum extent
allowed by law and not to impose on the Project any mitigation measures other than those
specifically imposed by the Project’s environmental document, Project Approvals, Program EIR,
and MMRP, or specifically required by CEQA or other Applicable Law, except as provided for in
this Section 6.7. Without limitation of the foregoing, the Parties acknowledge that Subsequent
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Approvals may be eligible for one or more statutory or categorical exemptions under CEQA. The
Parties agree that this Agreement shall not limit or expand the operation or scope of CEQA,
including Public Resources Code section 21166 and California Code of Regulations, titl e 14,
section 15162, with respect to City’s consideration of any Subsequent Approval. Consistent with
CEQA, a future, additional CEQA document may be prepared for any Subsequent Approval only
to the extent required by Public Resources Code section 21166 and California Code of Regulations,
title 14, section 15162, unless otherwise requested in writing by Developer. Developer specifically
acknowledges and agrees that, under Public Resources Code section 21166 and California Code
of Regulations, title 14, section 15162, City as lead agency is responsible and retains sole discretion
to determine whether an additional CEQA document must be prepared, which discretion City
agrees it shall not exercise unreasonably or delay.
6.11 Future Legislative Actions.
(a) In the event that, following the Effective Date, City amends or otherwise
updates the General Plan in a manner that would increase or expand the permitted uses, the
maximum floor area ratio (or any other land use density or intensity metric), or the maximum
height, bulk, and size of proposed buildings applicable to any land area that the land use element
or land use map of the General Plan designates as “Office” or “R&D,” City shall also consider
making conforming General Plan amendments and updates applicable to that land area that
comprises the Project Site and which is designated as “Office” or “R&D” under the General Plan.
(b) In the event that, following the Effective Date, City revises, modifies,
updates, or amends the land use designation(s) of the General Plan, that are applicable to the
Project Site, or the zoning designation(s) applicable to the Project Site and in effect on the Effective
Date, such updates or amendments shall not diminish Developer’s vested rights to Develop the
Project or the Project Site, but no provision of this Agreement shall limit Developer’s right to apply
for any land use entitlement(s) for the Project Site that are consistent with, or authorized by, such
update(s) or amendment(s). Developer acknowledges, however, that the amended or updated
policies identified in the immediately preceding sentence might include requirements for permitted
development that would be in addition to any obligations of Developer under this Agreement, and
that those additional requirements would apply to Developer if Developer applies for any land use
entitlement(s) for the Project Site that are consistent with, or authorized by, any revision,
modification, update, or amendment contemplated by this subsection (b) of Section 6.8 of this
Agreement. No provision of this Agreement shall limit or restrain in any way Developer’s full
participation in any and all public processes undertaken by City that are in any way related to
revisions, modifications, amendments, or updates to the General Plan or the City of South San
Francisco Municipal Code. Notwithstanding the foregoing, in the event that future legislative
actions increase the allowable density or development capacities on the Project Site, any future
development application seeking to utilize such increased densit y or capacity shall not be allowed
to utilize any increased parking ratio authorized by this Agreement by-right.
(c) Developer acknowledges that, if it applies for any land use entitlement(s)
for the Project Site that are consistent with, or authorized by, any revision, modification, update,
or amendment contemplated by subsection (c) of this Section 6.8 of this Agreement, and that would
allow development of the subject parcel(s) in a manner that is inconsistent with, or not authorized
by, the Project Approvals, then City may be required to conduct additional CEQA review with
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respect to such application in accordance with Section 6.7 of this Agreement, and, if such
application is finally approved by City and becomes effective, such approval shall automatically
be vested under this Agreement only to the extent such approval is consistent with, or authorized
by, the Project Approvals. By way of example, if (following any required CEQA compliance) such
effective approval were to authorize Development of a structure with a floor area ratio of 2.0, but
the Project Approvals would only authorize Development of a structure with a floor area ratio of
1.0, then Developer would automatically have the vested right to Develop said structure with a
floor area ratio of 1.0, and would automatically have the non-vested right to Develop that same
structure with a floor area ratio of 2.0 (unless, following such approval, this Agreement is amended
to vest Developer’s right to Develop such structure with a floor area ratio of 2.0).
(d) City agrees that, if Developer applies for any land use entitlement(s) for the
Project Site that are inconsistent with, or not authorized by, the Project Approvals, then:
(i) such event shall not be a basis for amending or revisiting the terms
of the Agreement, unless Developer also applies for an amendment of this Agreement pursuant to
subsection (b) of Section 7.2 of this Agreement (i.e., a non-Administrative Agreement
Amendment), and shall not be a basis for imposing new exactions, mitigation requirements,
conditions of approval, or any other requirement of, or precondition to, Developer’s exercise of its
Development rights vested under this Agreement; and
(ii) the only exactions, mitigation requirements, or conditions of
approval City may impose on such land use entitlement shall be limited to those exactions,
mitigation requirements, or conditions of approval authorized under federal, state, or local laws in
effect at the time such application is deemed complete, and shall only be imposed with respect to
those uses, densities, intensities, and other Development standards applicable to the subject
parcel(s) that are inconsistent with, or not authorized by, the Project Approvals.
6.12 Life of Subdivision Maps, Development Approvals, and Permits. The term of
any subdivision map or any other map, permit, rezoning, or other land use entitlement approved
as a Project Approval or Subsequent Approval shall automatically be extended for the longer of
the Term (including any extensions) or the term otherwise applicable to such Project Approval or
Subsequent Approval if this Agreement is no longer in effect. The Term of this Agreement and
the term of any subdivision map or other Project Approval or Subsequent Approval shall not
include any period of time during which a Development moratorium (including, but not limited to,
a water or sewer moratorium or water and sewer moratorium) or the actions of other public
agencies that regulate land use, Development or the provision of services to the land, prevents,
prohibits or delays the construction of the Project or a lawsuit involving any such Development
approvals or permits is pending.
6.13 State and Federal Law. As provided in Government Code section 65869.5, this
Agreement shall not preclude the application to the Project of changes in laws, regulations, plans
or policies, to the extent that such changes are specifically mandated and required by changes in
state or federal laws or regulations. Not in limitation of the foregoing, nothing in this Agreement
shall preclude City from imposing on Developer any fee specifically mandated and required by
state or federal laws and regulations. In the event of any changes required by state or federal laws
or regulations, the Developer and City shall meet and confer in good faith to determine what, if
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any, modifications to this Agreement and/or the Project Approvals would allow the Project and
City to comply with such state or federal law or regulation while preserving to the maximum extent
feasible the spirit and intent of the Parties in this Agreement and the Project Approvals.
6.14 Timing and Review of Project Construction and Completion . Except as
expressly provided in the Project Approvals, Developer shall have the vested right to Develop the
Project in such order, at such rate and at such times as the Developer deems appropriate in the
exercise of its sole business judgment. In particular, and not in any limitation of any of the
foregoing, since the California Supreme Court held in Pardee Construction Co. v. City of
Camarillo, 37 Cal.3d 465 (1984), that the failure of the parties therein to consider, and expressly
provide for, the timing of Development resulted in a later-adopted initiative restricting the timing
of Development to prevail over such Parties’ agreement, it is the desire of the Parties hereto to
avoid that result. The Parties acknowledge that, except as otherwise provided for in the Project
Approvals, Developer shall have the vested right to Develop the Project on the Project Site in such
order and at such rate and at such times as the Developer deems appropriate in the exercise of its
business judgment. Nothing in this Agreement shall create any obligation for Developer to
complete development of the Project, or any portion thereof, except and to the extent set forth in
the Project Approvals.
ARTICLE 7
AMENDMENT
7.1 Project Amendments. To the extent permitted by state and federal law, any
Project Approval or Subsequent Approval may, from time to time, be amended or modified in the
following manner:
(a) Administrative Project Amendments. Upon the written request of
Developer for an amendment or modification to a Project Approval or Subsequent Approval,
City’s Chief Planner or his/her designee shall determine: (i) whether the requested amendment or
modification is minor when considered in light of the Project as a whole; and (ii) whether the
requested amendment or modification is consistent with this Agreement and Applicable Law. If
the Chief Planner or his/her designee finds that the proposed amendment or modification is minor,
consistent with this Agreement and Applicable Law, and will result in no new significant impacts
not addressed and mitigated in the EIR, the amendment shall be determined to be an
“Administrative Project Amendment” and the Chief Planner or his/her designee may, except to
the extent otherwise required by law, approve the Administrative Project Amendment without
notice and public hearing. Without limiting the generality of the foregoing, lot line adjustments,
minor alterations in vehicle circulation patterns or vehicle access points, location of parking stalls
on the site, number of required parking stalls if City development standards allow, substitutions of
comparable landscaping for any landscaping shown on any final development plan or landscape
plan, variations in the location of structures that do not substantially alter the design concepts of
the Project, location or installation of utilities and other infrastructure connections or facilities that
do not substantially alter the design concepts of the Project, and minor adjustments to the Project
Site diagram or Project Site legal description shall be treated as Administrative Project
Amendments. Any requested amendment seeking modification of or deviation from the
performance or development standards contained in the Municipal Code and which would
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otherwise require a discretionary approval by the City Council, Planning Commission, or other
formal approval body shall not be treated as an Administrative Project Amendment.
(b) Non-Administrative Project Amendments. Any request by Developer for
an amendment or modification to a Project Approval or Subsequent Approval which is determined
not to be an Administrative Project Amendment as set forth above shall be subject to review,
consideration and action pursuant to the Applicable Law and this Agreement.
7.2 Amendment of this Agreement. This Agreement may be amended from time to
time, in whole or in part, by mutual written consent of the Parties hereto or their successors in
interest, as follows:
(a) Administrative Project Amendments. Upon the written request of
Developer for an amendment or modification to a Project Approval or Subsequent Approval, the
City's Chief Planner or his/her designee shall determine: (i) whether the requested amendment or
modification is minor when considered in light of the Project as a whole; and (ii) whether the
requested amendment or modification is consistent with this Agreement and Applicable Law. If
the Chief Planner or his/her designee finds that the proposed amendment or modification is minor,
consistent with this Agreement and Applicable Law, and will result in no new significant impacts
not addressed and mitigated in the Project’s environmental document or Program EIR, the
amendment shall be determined to be an “Administrative Project Amendment” and the Chief
Planner or his/her designee may, except to the extent otherwise required by law, approve the
Administrative Project Amendment without notice and public hearing. Without limiting the
generality of the foregoing, lot line adjustments, minor alterations in vehicle circulation patterns
or vehicle access points, location of parking stalls on the site, number of required parking stalls if
City development standards allow, substitutions of comparable landscaping for any landscaping
shown on any final development plan or landscape plan, substitutions of comparable building
design/façade materials for any building design/façade material shown on any final development
plan or Precise Plan, variations in the location of structures that do not substantially alter the design
concepts of the Project, location or installation of utilities and other infrastructure connections or
facilities that do not substantially alter the design concepts of the Project, and minor adjustments
to the Property diagram or Property legal description shall be treated as Administrative Project
Amendments. Any requested amendment seeking modification of or deviation from the
performance or development standards contained in the Municipal Code and which would
otherwise require a discretionary approval by the City Council, Planning Commission, or other
formal approval body shall not be treated as an Administrative Project Amendment.
(b) Other Agreement Amendments. Any amendment to this Agreement other
than an Administrative Agreement Amendment shall be subject to recommendation by the
Planning Commission (by advisory resolution) and approval by the City Council (by ordinance)
following a duly noticed public hearing before the Planning Commission and City Council,
consistent with Government Code sections 65867 and 65867.5.
(c) Amendment Exemptions. No amendment of a Project Approval or
Subsequent Approval, or a Subsequent Approval shall require an amendment to this Agreement.
Instead, any such matter automatically shall be deemed to be incorporated into the Project and
vested under this Agreement.
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ARTICLE 8
ASSIGNMENT AND TRANSFER
8.1 Assignment and Transfer.
(a) Developer may transfer or assign all or any portion of its interests, rights,
or obligations under the Agreement and the Project Approvals to third parties acquiring an interest
or estate in the Project or the Project Site or any portions thereof including, without limitation,
purchasers or lessees of lots, parcels, or facilities. Prior to any such transfer or assignment,
Developer will seek City’s prior written consent thereof, which consent will not be unreasonably
withheld or delayed. City shall respond within fifteen (15) business days to any Developer notice
of transfer. City failure to respond within thirty (30) days shall be deemed consent to the transfer.
City may refuse to give consent only if, in light of the proposed transferee’s reputation and
financial resources, such transferee would not, in City’s reasonable opinion (which shall be
appealable by Developer to the City Council), be able to perform the obligations proposed to be
assumed by such transferee. To assist the City Manager in determining whether to provide consent
to a transfer or assignment, the City Manager may request from the transferee (directly or through
Developer) reasonable documentation of transferee’s understanding of and ability and plan to
perform the obligations proposed to be assumed by transferee, including without limitation
obligations specifically identified in this Agreement, the Project Approvals, the Project’s
environmental document, the Program EIR and MMRP, the General Plan, and the TDM Plan. To
assist the City Manager in determining whether to consent to a transfer or assignment, the City
Manager may also require one or more representatives of the transferee to meet in person to
demonstrate to the City Manager’s reasonable satisfaction that the transferee understands, intends,
and has the ability to perform the obligations intended to be assumed, including without limitation
the obligations identified in the immediately preceding sentence. Such determination will be made
by the City Manager and will be appealable by Developer to the City Council. For any transfer of
all or any portion of the Property, the Developer and assignee shall enter into an assignment and
assumption agreement in substantially the form set forth in Exhibit G.
(b) Notwithstanding any other provision of this Agreement to the contrary, each
of following Transfers are permitted and shall not require City consent under this Section 8.1:
(i) Any transfer for financing purposes to secure the funds necessary
for construction and/or permanent financing of the Project or any use of the Property;
(ii) An assignment of this Agreement to an Affiliate;
(iii) Transfers of common area to a property owners association;
(iv) Dedications and grants of easements and rights of way required in
accordance with the Project Approvals; or
(v) Any leasing activity.
(c) For the purposes of this Section 8.1, “Affiliate” means an entity or person
that is directly or indirectly controlling, controlled by, or under common control or management
of or with Developer. For the purposes of this definition, “control” means the possession, direct
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or indirect, of the power to direct or cause the direction of the management and policies of an entity
or a person, whether through the ownership of voting securities, by contract, or otherwise, and the
terms “controlling” and “controlled” have the meanings correlative to the foregoing.
ARTICLE 9
COOPERATION IN THE EVENT OF LEGAL CHALLENGE
9.1 Cooperation. In the event of any administrative, legal, or equitable action or other
proceeding instituted by any person not a party to the Agreement challenging the validity of any
provision of the Agreement, or any Project Approval or Subsequent Approval (“Legal
Challenge”), the Parties will cooperate in defending such action or proceeding. City shall promptly
(within five business days) notify Developer of any such Legal Challenge against City. If City fails
promptly to notify Developer of any Legal Challenge again st City or if City fails to cooperate in
the defense, Developer will not thereafter be responsible for City’s defense. The Parties will use
best efforts to select mutually agreeable legal counsel to defend such Legal Challenge, and
Developer will pay compensation for such legal counsel (including City Attorney time and
overhead for the defense of such action), but will exclude other City staff overhead costs and
normal day-to-day business expenses incurred by City. Developer’s obligation to pay for legal
counsel will extend to attorneys’ fees incurred on appeal. In the event City and Developer are
unable to select mutually agreeable legal counsel to defend such Legal Challenge, each party may
select its own legal counsel and Developer will pay its and City’s attorneys’ fees and costs.
Developer shall reimburse City for all reasonable court costs and attorneys’ fees expended by City
in defense of any such Legal Challenge or payable to any prevailing plaintiff/petitioner.
9.2 Reapproval.
(a) If, as a result of any Legal Challenge, all or any portion of the Agreement
or the Project Approvals are set aside or otherwise made ineffective by any judgment in such action
or proceeding (“Judgment”), based on procedural, substantive or other deficiencies
(“Deficiencies”), the Parties will use their respective best efforts to sustain and reenact or readopt
the Agreement, and/or the Project approvals, that the Deficiencies related to, as follows, unless the
Parties mutually agree in writing to act otherwise:
(i) If any Judgment requires reconsideration or consideration by City
of the Agreement or any Project approval, then City will consider or reconsider that matter in a
manner consistent with the intent of the Agreement and with Applicable Law. If any such
Judgment invalidates or otherwise makes ineffective all or any portion of the Agreement or Project
approval, then the Parties will cooperate and will cure any Deficiencies identified in the Judgment
or upon which the Judgment is based in a manner consistent with the intent of the Agreement and
with Applicable Law. City will then consider readopting or reenacting the Agreement, or the
Project approval, or any portion thereof, to which the Deficiencies related.
(ii) Acting in a manner consistent with the intent of the Agreement
includes, but is not limited to, recognizing that the Parties intend that Developer may undertake
and complete Development of the Project as described in the Agreement, and adopting such
ordinances, resolutions, and other enactments as are necessary to readopt or reenact all or any
portion of the Agreement or Project approvals without contravening the Judgment.
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(b) The Parties agree that this Section 9.2 shall constitute a separate agreement
entered into concurrently, and that if any other provision of this Agreement, or the Agreement as
a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the Parties
agree to be bound by the terms of this Section 9.2, which shall survive invalidation, nullification,
or setting aside.
9.3 Extension Due to Legal Challenge. In the event that any Legal Challenge has the
direct or indirect effect of setting aside or modifying the Project Approvals, or preventing or
delaying development of the Project as set forth herein, the Term of this Agreement shall be
automatically extended for a period equal to the number of days from the commencement of
litigation to its conclusion (“Litigation Tolling Period”); provided, however, that the total
Litigation Tolling Period shall not exceed five (5) years.
ARTICLE 10
DEFAULT; REMEDIES; TERMINATION
10.1 Defaults. Any failure by either Party to perform any term or provision of the
Agreement, which failure continues uncured for a period of thirty (30) days following written
notice of such failure from the other Party (unless such period is extended by mutual written
consent), will constitute a default under the Agreement. Any notice given will specify the nature
of the alleged failure and, where appropriate, the manner in which said failure satisfactorily may
be cured. If the nature of the alleged failure is such that it cannot reasonably be cured within such
30-day period, then the commencement of the cure within such time period, and the diligent
prosecution to completion of the cure thereafter, will be deemed to be a cure within such 30 -day
period. Upon the occurrence of a default under the Agreement, and the failure to cure the default,
the non-defaulting party may institute legal proceedings to enforce the terms of the Agreement or,
in the event of a material default, terminate the Agreement. If the default is cured, then no default
will exist and the noticing party shall take no further action.
10.2 Termination. If City elects to consider terminating the Agreement due to a
material default of Developer, then City will give a notice of intent to terminate the Agreement
and the matter will be scheduled for consideration and review by the City Council at a duly noticed
and conducted public hearing. Developer will have the right to offer written and oral evidence
prior to or at the time of said public hearings. If the City Council determines that a material default
has occurred and is continuing, and elects to terminate the Agreement, City will give written notice
of termination of the Agreement to Developer by certified mail and the Agreement will thereby be
terminated sixty (60) days thereafter, provided, however, that if Developer files an action to
challenge City’s termination of the Agreement within such 60 day period, then the Agreement
shall remain in full force and effect until a trial court has affirmed City’s termination of the
Agreement and all appeals have been exhausted (or the time for requesting any and all appellate
review has expired); provided however that the time period during which the Agreement shall
remain in effect shall not exceed three (3) years.
10.3 Enforced Delay; Extension of Time of Performance. Subject to the limitations
set forth below, performance by either party hereunder shall not be deemed to be in default, and
all performance and other dates specified in this Agreement shall be extended, where delays are
due to: war; insurrection; strikes and labor disputes; lockouts; riots; floods; earthquakes; fires;
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casualties; acts of God; acts of the public enemy; terrorism; epidemics or pandemics; quarantine
or shelter-in-place restrictions; freight embargoes; governmental restrictions or priority; litigation
and arbitration, including court delays; legal challenges to this Agreement, the Project Approvals,
Subsequent Approvals, or any other approval required for the Project, or any initiatives or
referenda regarding the same; environmental conditions that have not been previously disclosed
or discovered or that could not have been discovered with reasonable diligence that delays the
construction or Development of the Property or any portion thereof; unusually severe weather but
only to the extent that such weather or its effects (including, without limitation, dry out time) result
in delays that cumulatively exceed thirty (30) days for every winter season occurring after
commencement of construction of the Project; acts or omissions of the other party; or acts or
failures to act of any public or governmental agency or entity (except that acts or failures to act of
City shall not excuse performance by City); moratorium; or a Severe Economic Recession (each a
“Force Majeure Delay”). An extension of time for any such cause shall be for the period of the
enforced delay and shall commence to run from the time of the commencement of the cause, if
Notice by the party claiming such extension is sent to the other party within sixty (60) days of the
commencement of the cause. If Notice is sent after such sixty (60) day period, then the extension
shall commence to run no sooner than sixty (60) days prior to the giving of such Notice. Times of
performance under this Agreement may also be extended in writing by the mutual agreement of
City and Developer Developer’s inability or failure to obtain financing or otherwise timely satisfy
shall not be deemed to be a cause outside the reasonable control of the Developer and shall not be
the basis for an excused delay unless such inability, failure or delay is a direct result of a Severe
Economic Recession. “Severe Economic Recession” means a decline in the monetary value of all
finished goods and services produced in the United States, as measured by initial quarterly
estimates of United States Gross Domestic Product (“GDP”) published by the United States
Department of Commerce Bureau of Economic Analysis (and not subsequent monthly revisions),
lasting more than four (4) consecutive calendar quarters. Any quarter of flat or positive GDP
growth shall end the period of such Severe Economic Recession.
10.4 Legal Action. Either Party may institute legal action to cure, correct, or remedy
any default, enforce any covenant or agreement in the Agreement, enjoin any threatened or
attempted violation thereof, and enforce by specific performance or declaratory relief the
obligations and rights of the Parties thereto. Except as provided in Section 10.1, the sole and
exclusive remedies for any default or violation of the Agreement will be specific performance or
declaratory relief. In any proceeding brought to enforce the Agreement, the prevailing Party will
be entitled to recover from the unsuccessful Party all costs, expenses and reasonable attorneys’
fees incurred by the prevailing party in the enforcement proceeding.
10.5 Periodic Review.
(a) Conducting the Periodic Review. Throughout the Term, at least once every
twelve (12) months following the Effective Date of this Agreement, City shall review the extent
of good-faith compliance by Developer with the terms of this Agreement. This review (“Periodic
Review”) shall be conducted by the Chief Planner or his/her designee and shall be limited in scope
to compliance with the terms of this Agreement pursuant to Government Code section 65865.1.
At least ten (10) days prior to the Periodic Review, and in the manner prescribed in Section 11.9
of this Agreement, City shall deposit in the mail or transmit electronically to Developer a copy of
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any staff report and documents to be relied upon in conducting the Periodic Review and, to the
extent practical, related exhibits concerning Developer’s performance hereunder.
(b) Developer Submission of Periodic Review Report. Annually commencing
one year from the Effective Date and continuing through termination of this Agreement, Developer
shall submit a report to the Chief Planner stating the Developer’s good faith compliance with terms
of the Agreement.
(c) Good Faith Compliance Review. During the Periodic Review, the Chief
Planner shall set a meeting to consider the Developer’s good-faith compliance with the terms of
this Agreement. Developer shall be permitted an opportunity to respond to City’s evaluation of
Developer’s performance, either orally at the meeting or in a supplemental written statement, at
Developer’s election. Such response shall be made to the Chief Planner. At the conclusion of the
Periodic Review, the Chief Planner shall make written findings and determinations, on the basis
of substantial evidence, as to whether or not Developer has complied in good faith with the terms
and conditions of this Agreement. The decision of the Chief Planner shall be appealable to the City
Council. If the Chief Planner finds and determines that Developer has not complied with such
terms and conditions, the Chief Planner may recommend to the City Council that it terminate or
modify this Agreement by giving notice of its intention to do so, in the manner set forth in
Government Code sections 65867 and 65868. The costs incurred by City in connection with the
Periodic Review process described herein shall be borne by Developer.
(d) Failure to Properly Conduct Periodic Review. If City fails, during any
calendar year, to either: (i) conduct the Periodic Review or (ii) notify Developer in writing of
City’s determination, pursuant to a Periodic Review, as to Developer’s compliance with the terms
of this Agreement and such failure remains uncured as of December 31 of any year during the
Term, such failure shall be conclusively deemed an approval by City of Developer’s compliance
with the terms of this Agreement for the period of time since the last Periodic Review.
(e) Written Notice of Compliance. With respect to any year for which
Developer has been determined or deemed to have complied with this Agreement, City shall,
within thirty (30) days following request by Developer, execute and deliver to Developer (or to
any party requested by Developer) a written “Notice of Compliance,” in recordable form, duly
executed and acknowledged by City, that certifies:
(i) The Agreement is unmodified and in full force and effect, or if there
have been modifications hereto, that this Agreement is in full force and effect as modified and
stating the date and nature of such modifications;
(ii) That there are no current uncured defaults under this Agreement or
specifying the dates and nature of any such default;
(iii) Any other information reasonably requested by Developer. City’s
failure to deliver to Developer such a Notice of Compliance within such time shall constitute a
conclusive presumption against City that this Agreement is in full force and effect without
modification, except as may be represented by Developer, and that there are no uncured defaults
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in the performance of Developer, except as may be represented by Developer. Developer shall
have the right, in Developer’s sole discretion, to record such Notice of Compliance.
10.6 California Law. This Agreement shall be construed and enforced in accordance
with the laws of the State of California. Any action to enforce or interpret this Agreement shall be
filed and heard in the Superior Court of San Mateo County, California.
10.7 Resolution of Disputes. With regard to any dispute involving Development of the
Project, the resolution of which is not provided for by this Agreement or Applicable Law,
Developer shall, at City’s request, meet with City. The parties to any such meetings shall attempt
in good faith to resolve any such disputes within a reasonable time period. Nothing in this Section
10.7 shall in any way be interpreted as requiring that Developer and City and/or City’s designee
reach agreement with regard to those matters being addressed, nor shall the outcome of these
meetings be binding in any way on City or Developer unless expressly agreed to by the parties to
such meetings.
10.8 Attorneys’ Fees. In any legal action or other proceeding brought by either Party
to enforce or interpret a provision of this Agreement, the prevailing party is entitled to reasonable
attorneys’ fees and any other costs incurred in that proceeding in addition to any other relief to
which it is entitled.
10.9 Hold Harmless. Developer shall hold City and its elected and appointed officers,
agents, employees, and representatives harmless from claims, costs, and liabilities for any personal
injury, death, or property damage which is a result of, or alleged to be the result of, the construction
of the Project, or of operations performed under this Agreement by Developer or by Developer’s
contractors, subcontractors, agents or employees, whether such operations were performed by
Developer or any of Developer’s contractors, subcontractors, agents or employees. Nothing in this
Section 10.9 shall be construed to mean that Developer shall hold City harmless from any claims
of personal injury, death or property damage arising from, City’s breach of this Agreement, or
alleged to arise from, (i) any gross negligence or willful misconduct on the part of City, its elected
and appointed representatives, officers, agents and employees, or (ii) to the extent arising out of or
in connection with the maintenance, use or condition of any public improvement after the time it
has been dedicated to and accepted by the City or another public entity.
ARTICLE 11
MISCELLANEOUS
11.1 Incorporation of Recitals and Introductory Paragraph. The Recitals contained
in this Agreement, and the introductory paragraph preceding the Recitals, are hereby incorporated
into this Agreement as if fully set forth herein.
11.2 No Agency. It is specifically understood and agreed to by and between the Parties
hereto that: (i) the subject Project is a private development; (ii) City has no interest or
responsibilities for, or duty to, third parties concerning any improvements until such time, and only
until such time, that City accepts the same pursuant to the provisions of this Agreement or in
connection with the various Project Approvals or Subsequent Approvals; (iii) Developer shall have
full power over and exclusive control of the Project herein described, subject only to the limitations
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and obligations of Developer under this Agreement, the Project Approvals, Subsequent Approvals,
and Applicable Law; and (iv) City and Developer hereby renounce the existence of any form of
agency relationship, joint venture or partnership between City and Developer and agree that
nothing contained herein or in any document executed in connection herewith shall be construed
as creating any such relationship between City and Developer.
11.3 Enforceability. City and Developer agree that unless this Agreement is amended
or terminated pursuant to the provisions of this Agreement, this Agreement shall be enforceable
by any party hereto notwithstanding any change hereafter enacted or adopted (whether by
ordinance, resolution, initiative, or any other means) in any applicable general plan, specific plan,
zoning ordinance, subdivision ordinance, or any other land use ordinance or building ordinance,
resolution or other rule, regulation or policy adopted by City that changes, alters or amends the
rules, regulations, and policies applicable to the Development of the Project Site at the time of the
approval of this Agreement as provided by Government Code section 65866.
11.4 Severability. If any term or provision of this Agreement, or the application of any
term or provision of this Agreement to a particular situation, is held by a court of competent
jurisdiction to be invalid, void, or unenforceable, the remaining terms and provisions of this
Agreement, or the application of this Agreement to other situations, shall continue in full force and
effect unless amended or modified by mutual consent of the parties. Notwithstanding the
foregoing, if any material provision of this Agreement, or the application of such provision to a
particular situation, is held to be invalid, void or unenforceable, either City or Developer may (in
their sole and absolute discretion) terminate this Agreement by providing written notice of such
termination to the other party.
11.5 Other Necessary Acts and City Approvals. Each Party shall execute and deliver
to the other all such other further instruments and documents as may be reasonably necessary to
carry out the Project Approvals, Subsequent Approvals and this Agreement and to provide and
secure to the other party the full and complete enjoyment of its rights and privileges hereunder.
Whenever a reference is made herein to an action or approval to be undertaken by City, the City
Manager or his or her designee is authorized to act on behalf of City, unless specifically provided
otherwise by this Agreement or Applicable Law.
11.6 Construction. Each reference in this Agreement or any of the Project Approvals
or Subsequent Approvals shall be deemed to refer to the Agreement, Project Approval, or
Subsequent Approval as it may be amended from time to time, whether or not the particular
reference refers to such possible amendment. This Agreement has been reviewed and revised by
legal counsel for both City and Developer, and no presumption or rule that ambiguities shall be
construed against the drafting party shall apply to the interpretation or enforcement of this
Agreement.
11.7 Other Miscellaneous Terms. The singular shall include the plural; the masculine
gender shall include the feminine; “shall” is mandatory; “may” is permissive. If there is more than
one signer of this Agreement, the signer obligations are joint and several.
11.8 Covenants Running with the Land. All of the provisions contained in this
Agreement shall be binding upon the Parties and their respective heirs, successors and assigns,
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representatives, lessees, and all other persons acquiring all or a portion of the Project, or any
interest therein, whether by operation of law or in any manner whatsoever. All of the provisions
contained in this Agreement shall be enforceable as equitable servitudes and shall constitute
covenants running with the land pursuant to California law including, without limitation, Civil
Code section 1468. Each covenant herein to act or refrain from acting is for the benefit of or a
burden upon the Project, as appropriate, runs with the Project Site, and is binding upon the owner
of all or a portion of the Project Site and each successive owner during its ownership of such
property.
11.9 Notices. Any notice or communication required hereunder between City or
Developer must be in writing, and may be given either personally, by email (with original
forwarded by regular U.S. Mail), by registered or certified mail (return receipt requested), or by
Federal Express or other similar courier promising overnight delivery. If personally delivered, a
notice shall be deemed to have been given when delivered to the party to whom it is addressed. If
delivered by email, a notice shall be deemed given upon verification of receipt if received before
5:00 p.m. on a regular business day, or else on the next business day. If given by registered or
certified mail, such notice or communication shall be deemed to have been given and received on
the first to occur of: (i) actual receipt by any of the addressees designated below as the party to
whom notices are to be sent, or (ii) five (5) days after a registered or certified letter containing
such notice, properly addressed, with postage prepaid, is deposited in the United States mail. If
given by Federal Express or similar courier, a notice or communication shall be deemed to have
been given and received on the date delivered as shown on a receipt issued by the courier. Such
notices or communications shall be given to the parties at their addresses set forth below:
If to City, to: City of South San Francisco
Attn: City Manager
400 Grand Avenue
South San Francisco, CA 94080
Phone: (650) 877-8500
Email: Sharon.Ranals@ssf.net
With a Copy to: Meyers Nave
Attn: Sky Woodruff
1999 Harrison Street, 9th Floor
Oakland, CA 94612
Phone: (510) 808-2000
Email: sky@meyersnave.com
If to Developer, to: [INSERT]
With a Copy to: [INSERT]
Any party hereto may at any time, by giving ten (10) days written notice to the other party
hereto, designate any other address in substitution of the address to which such notice or
communication shall be given.
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11.10 Mortgagee Protection. The Parties agree that this Agreement shall not prevent or
limit Developer, in any manner, at Developer’s sole discretion, from encumbering the Project Site
or any portion thereof or any improvement thereon by any lien of mortgage, deed of trust, or other
security device securing financing with respect to the Project or the Project Site (“Mortgage”).
City acknowledges that the lenders providing such financing may require, in addition to estoppel
certificates as set forth in Section 4.7, certain Agreement interpretations and modifications and
agrees upon request, from time to time, to meet with Developer and representatives of such lenders
to negotiate in good faith any such request for interpretation or modification provided such
interpretation or modification is consistent with the intent and purpose of this Agreement. Any
Mortgagee of the Project Site shall be entitled to the following rights and privileges:
(a) Neither entering into this Agreement nor a breach of this Agreement shall
defeat, render invalid, diminish, or impair the lien of any Mortgage on the Project Site made in
good faith and for value, unless otherwise required by law.
(b) If City timely receives a request from a Mortgagee requesting a copy of any
notice of default given to Developer under this Agreement, City shall provide a copy of that notice
to the Mortgagee within ten (10) days of sending the notice of default to Developer or within ten
(10) days of receiving a request, if a Mortgagee has not provided a request prior to the City sending
a notice of default to Developer. The Mortgagee shall have the right, but not the obligation, to cure
the default during the remaining cure period allowed such Party under this Agreement.
(c) Any Mortgagee who comes into possession of the Project Site, or any
portion thereof, pursuant to foreclosure of the Mortgage or deed in lieu of such foreclosure, shall
take the Project Site, or portion thereof, subject to the terms of this Agreement. Notwithstanding
any provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty
under this Agreement to perform any of Developer’s obligations or other affirmative covenants of
Developer hereunder, or to guarantee such performance; provided, however, that to the extent that
any covenant to be performed by Developer is a condition precedent to the performance of a
covenant by City, the performance thereof shall continue to be condition precedent to City’s
performance hereunder, and further provided that any sales, transfer, or assignment by any
Mortgagee in possession shall be subject to the provisions of Section 8.1 of this Agreement.
11.11 Entire Agreement, Counterparts And Exhibits. This Agreement is executed in
two (2) duplicate counterparts, each of which is deemed to be an original. This Agreement consists
of twenty-nine (29) pages, exclusive of signature pages, and seven (7) exhibits which constitute in
full, the final and exclusive understanding and agreement of the parties and supersedes all
negotiations or previous agreements of the parties with respect to all or any part of the subject
matter hereof. All waivers of the provisions of this Agreement shall be in writing and sign ed by
the appropriate authorities of City and the Developer. The following exhibits are attached to this
Agreement and incorporated herein for all purposes:
Exhibit A: Description and Diagram of Project Site
Exhibit A1: Legal Description of Project Site
Exhibit A2: Diagram of Project Site – Existing Parcels
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Exhibit A3: Diagram of Project Site – Proposed Parcels
Exhibit B: List of Project Approvals as of Effective Date
Exhibit C: City Fees, Exactions and Payments
Exhibit D: Sustainability Features
Exhibit E: Applicable Laws
Exhibit F: Form of Assignment and Assumption Agreement
Exhibit G: Fire Station Agreement
11.12 No Third Party Beneficiaries. This Agreement is intended for the benefit of the
Parties hereto and their respective permitted successors and assigns, and is not for the benefit of,
nor may any express or implied provision hereof be enforced by, any other person, except as
otherwise set forth in Section 11.10.
11.13 Recordation Of Development Agreement. Pursuant to Government Code
section 65868.5, no later than ten (10) days after City enters into this Agreement, the City Clerk
shall record an executed copy of this Agreement in the Official Records of the County of San
Mateo.
IN WITNESS WHEREOF, this Agreement has been entered into by and between
Developer and City as of the day and year first above written.
[Signatures to follow on subsequent pages.]
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SIGNATURE PAGE FOR DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND HCP FORBES, LLC
CITY:
CITY OF SOUTH SAN FRANCISCO,
a California municipal corporation
By:
Date:
Name: Sharon Ranals
Its: City Manager
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
City Attorney
[Insert Notary Acknowledgment]
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SIGNATURE PAGE FOR DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND HCP FORBES, LLC
DEVELOPER:
By:
Date:
Name:
Its:
By:
Date:
Name:
Its:
[Insert Notary Acknowledgment]
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DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND
HCP FORBES, LLC
Exhibit A
Description and Diagram of Project Site
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EXHIBIT A1 – LEGAL DESCRIPTION OF PROJECT SITE
Real property in the City of South San Francisco, County of San Mateo, State of California,
described as follows:
PARCEL ONE:
PARCEL 49, IN BLOCK 2, AS SHOWN AND DELINEATED UPON THAT CERTAIN MAP
ENTITLED, "PARCEL MAP, GALLO TRACT", BEING A RESUBDIVISION OF LOT 12, IN
BLOCK 2, CABOT, CABOT AND FORBES INDUSTRIAL PARK UNIT NO. 1, FILED IN THE
OFFICE OF THE COUNTY RECORDER ON DECEMBER 23, 1976, IN BOOK 34 OF PARCEL
MAPS, PAGE 35, SAN MATEO COUNTY RECORDS.
PARCEL TWO:
PARCEL 50, IN BLOCK 2, AS SHOWN AND DELINEATED UPON THAT CERTAIN MAP
ENTITLED, "PARCEL MAP, GALLO TRACT", BEING A RESUBDIVISION OF LOT 12, IN
BLOCK 2, CABOT, CABOT AND FORBES INDUSTRIAL PARK UNIT NO. 1, FILED IN THE
OFFICE OF THE COUNTY RECORDER ON DECEMBER 23, 1976, IN BOOK 34 OF PARCEL
MAPS, PAGE 35, SAN MATEO COUNTY RECORDS.
PARCEL THREE:
PARCEL 13 IN BLOCK 2 AS SHOWN ON THAT CERTAIN MAP ENTITLED, "PARCEL
MAP BEING A RESUBDIVISION OF LOT 8, IN BLOCK 2, CABOT, CABOT & FORBES
INDUSTRIAL PARK UNIT NO. 1, SOUTH SAN FRANCISCO, SAN MATEO COUNTY,
CALIFORNIA", FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN MATEO
COUNTY, STATE OF CALIFORNIA ON FEBRUARY 25, 1966 IN BOOK 1 OF PARCEL
MAPS, PAGE 11.
PARCEL FOUR:
ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF SOUTH SAN
FRANCISCO, COUNTY OF SAN MATEO, STATE OF CALIFORNIA, BEING A PORTION
OF PARCEL 38 AND A PORTION OF PARCEL 39 AS SAID PARCELS ARE SHOWN ON
THAT CERTAIN MAP ENTITLED "PARCEL MAP BEING A SUBDIVISION OF LOT 9,
BLOCK 2, CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 1, RECORDED IN
VOLUME 61 OF MAPS AT PAGES 45 THROUGH 49 AND PARCEL 14, BLOCK 2, AS
SHOWN ON THE PARCEL MAP RECORDED IN VOLUME 1 OF PARCEL MAPS AT PAGE
11 ", WHICH MAP WAS FILED IN THE OFFICE OF THE RECORDER OF THE COUNTY
OF SAN MATEO, STATE OF CALIFORNIA ON JULY 7, 1966 IN BOOK 1 OF PARCEL
MAPS AT PAGE 37, SAID REAL PROPERTY BEING MORE PARTICULARLY DESCRIBED
AS FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID PARCEL 38 AS SHOWN ON SAID
PARCEL MAP IN BOOK 1 OF PARCEL MAPS AT PAGE 37 SAID POINT ALSO BEING ON
THE RIGHT OF WAY OF FORBES BOULEVARD (80 FOOT WIDE);
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THENCE EASTERLY ALONG SAID RIGHT OF WAY OF FORBES BOULEVARD ON A
NON-TANGENTIAL CURVE CONCAVE TO THE NORTH HAVING A RADIUS OF 3600.00
FEET AND TO WHICH RADIUS POINT A RADIAL LINE BEARS NOR TH 00° 54' 50" WEST,
THROUGH A CENTRAL ANGLE OF 05° 05' 34", WITH A CURVE LENGTH OF 319.99
FEET;
THENCE LEAVING SAID RIGHT OF WAY SOUTH 00° 22' 10” WEST 160.71 FEET;
THENCE SOUTH 15° 28' 01” WEST 341.06 FEET TO THE SOUTHWESTERLY BOUNDARY
LINE OF SAID PARCEL 39;
THENCE WESTERLY ALONG SAID SOUTHWESTERLY BOUNDARY LINE ON A NON -
TANGENTIAL CURVE CONCAVE TO THE SOUTH HAVING A RADIUS OF 1156.06 FEET
AND TO WHICH RADIUS POINT A RADIAL LINE BEARS SOUTH 16° 32' 31" WEST,
THROUGH A CENTRAL ANGLE OF 11° 37' 30", WITH A CURVE LENGTH OF 234.56 FEET
TO THE SOUTHWEST CORNER OF SAID PARCEL 38;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 38 NORTH 00° 22' 10” EAST
426.53 FEET (CALLED 426.52 FEET ON SAID PARCEL 38), TO THE POINT OF
BEGINNING, SAID PARCEL IS SHOWN AS RESULTANT PARCEL A ON THAT
CERTIFICATE OF COMPLIANCE OF LOT LINE ADJUSTMENT RECORDED DECEMBER
2, 2022 AS INSTRUMENT NO. 2022-083501, SAN MATEO COUNTY RECORDS.
PARCEL FIVE:
ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE CITY OF SOUTH SAN
FRANCISCO, COUNTY OF SAN MATEO, STATE OF CALIFORNIA, BEING A PORTION
OF PARCEL 38 AND A PORTION OF PARCEL 39 AS SAID PARCELS ARE SHOWN ON
THAT CERTAIN MAP ENTITLED "PARCEL MAP BEING A RESUBDIVISION OF LOT 9,
BLOCK 2, CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 1, RECORDED IN
VOLUME 61 OF MAPS AT PAGES 45 THROUGH 49 AND PARCEL 14, BLOCK 2, AS
SHOWN ON THE PARCEL MAP RECORDED IN VOLUME 1 OF PARCEL MAPS AT PAGE
11", WHICH MAP WAS FILED IN THE OFFICE OF THE RECORDER OF THE COUNTY OF
SAN MATEO, STATE OF CALIFORNIA ON JULY 7, 1966 IN BOOK 1 OF PARCEL MAPS
AT PAGE 37, SAID REAL PROPERTY BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL 39 ALSO BEING THE
NORTHEAST CORNER OF LOT 7 AND THE WEST RIGHT OF WAY OF ALLERTON
AVENUE AS SHOWN ON SAID PARCEL MAP BOOK 1 OF MAPS AT PAGE 37;
THENCE LEAVING SAID RIGHT OF WAY NORTH 56° 37' 50” WEST 41.45 FEET TO THE
BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWEST HAVING A RADIUS OF
1156.06 FEET, THROUGH A CENTRAL ANGLE OF 16° 49' 39”, WITH A CURVE LENGTH
OF 339.53 FEET;
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THENCE NORTH 15° 28' 01" EAST 341.06 FEET;
THENCE N 0° 22' 10" EAST A DISTANCE OF 160.71 FEET TO A POINT ON THE
SOUTHERLY RIGHT OF WAY OF FORBES BOULEVARD (80 FOOT WIDE);
THENCE EASTERLY ON A NON-TANGENTIAL CURVE CONCAVE TO THE NORTH
HAVING A RADIUS OF 3600.00 FEET AND TO WHICH RADIUS POINT A RADIAL LINE
BEARS NORTH 06° 00' 24" WEST, THROUGH A CENTRAL ANGLE OF 9° 07’ 30,” WITH
A CURVE LENGTH OF 573.35 TO THE BEGINNING OF A REVERSE CURVE;
THENCE ALONG LAST SAID CURVE CONCAVE TO THE SOUTHWEST THROUGH A
CENTRAL ANGLE 98° 08' 24”, HAVING A RADIUS OF 30.00 FEET, FOR A DISTANCE OF
51.39 FEET TO THE BEGINNING OF A COMPOUND CURVE;
THENCE ALONG ON THE WEST RIGHT OF WAY OF ALLERTON AVENUE AND ALONG
LAST SAID CURVE HAVING A RADIUS OF 465.29 FEET THROUGH A CENTRAL ANGLE
OF 40° 21' 40", WITH A CURVE LENGTH OF 327.77 FEET;
THENCE CONTINUING ALONG SAID RIGHT OF WAY OF ALLERTON AVENUE SOUTH
33° 22' 10" WEST FOR A DISTANCE OF 505.47 FEET (CALLED 505.48 FEET ON SAID
PARCEL 39), TO THE POINT OF BEGINNING, SAID PARCEL IS SHOWN AS RESULTANT
PARCEL B ON THAT CERTIFICATE OF COMPLIANCE OF LOT LINE ADJUSTMENT
RECORDED DECEMBER 2, 2022 AS INSTRUMENT NO. 2022-083501, SAN MATEO
COUNTY RECORDS.
APNs: 015-050-710, 015-050-720, and 015-050-730 (Parcels One and Two; 420 Forbes Blvd.)
APN: 015-050-230 (Parcel Three; 440 Forbes Blvd.)
APN: 015-050-900 (Parcel Four; 460 Forbes Blvd.)
APN: 015-050-890 (Parcel Five; 480-490 Forbes Blvd.)
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EXHIBIT A2 – DIAGRAM OF PROJECT SITE – EXISTING PARCELS
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EXHIBIT A3 – DIAGRAM OF PROJECT SITE – PROPOSED PARCELS
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DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND
HCP FORBES, LLC
Exhibit B
List of Project Approvals as of Effective Date
Project P22-0117 (Master Plan) and Project P22-0138 (Precise Plan) adopting the:
Master Plan MP23-0002
Precise Plan PP23-0001
Design Review DR22-0036
Use Permit UP22-0011
Transportation Demand Management TDM22-0009
Vesting Tentative Map PM22-0002
Development Agreement DA22-0005
Environmental Determination ND22-0002
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DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND
HCP FORBES, LLC
Exhibit C
City Fees, Exactions, and Payments
The following fees are estimates, are subject to change, based on final plans submitted for building
permits. Credits for existing uses will be calculated and applied to applicable fees. **
1. ADMINISTRATIVE/PROCESSING FEES. The Developer shall pay the applicable
application, processing, administrative, legal and inspection fees and charges, as then
currently adopted pursuant to City’s Master Fee Schedule and required by City for
processing of land use entitlements, including without limitation, General Plan
amendments, zoning changes, Precise Plans, development agreements, conditional use
permits, variances, transportation demand management plans, tentative subdivision maps,
parcel maps, lot line adjustments, general plan maintenance fee, demolition permits, and
building permits.
2. CHILDCARE FEE: Prior to issuance of the first building permit non-residential, the
applicant shall pay any applicable childcare fees in accordance with South San Francisco
Municipal Code Chapter 20.310. This fee is subject to annual adjustment. The childcare
impact fee estimate for the project is:
Office/R&D: $1.51/SF x 1,288,582 SF = $1,945,758.82
3. PARK FEES: Prior to issuance of the first building permit the applicant shall pay the
Parkland Acquisition Fee and Parkland Construction Fee in accordance with South San
Francisco Municipal Code Chapter 8.67. The fee is subject to annual adjustment. The park
fee estimate for the project is:
Office/R&D: $3.54/SF x 1,288,582 SF = $4,561,580.28
4. CITYWIDE TRANSPORTATION FEE: Prior to issuance of the first building permit, the
applicant shall pay applicable transportation impact fees in accordance with South San
Francisco Municipal Code Chapter 8.73. The fee is subject to annual adjustment. The
citywide transportation fee estimate for the project is:
Office/R&D: $34.85/SF x 1,288,582 SF = $44,907,082.70
5. COMMERCIAL LINKAGE FEE: Prior to issuance of the first building permit, the
applicant shall pay the applicable commercial linkage fee in accordance with South San
Francisco Municipal Code Chapter 8.69, based on the current fee for each applicable land
use category. The fee shall be calculated based on the fee schedule in effect at the time the
building permit is issued. The commercial linkage fee estimate for the project is:
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Office/R&D: $17.38/SF x 1,288,582 SF = $22,395,555.20
6. PUBLIC SAFETY IMPACT FEE: Prior to issuance of the first building permit for the
development, the applicant shall pay applicable Public Safety Impact Fees in accordance
with South San Francisco Municipal Code Chapter 8.75. The Public Safety Impact Fee for
the project is:
Office/R&D: $1.31/SF x 1,288,582 SF = $1,688,042.42
7. LIBRARY IMPACT FEE: Prior to issuance of the certificate of occupancy for the
development, whichever is earlier, the applicant shall pay applicable Library Impact Fee
in accordance with South San Francisco Municipal Code Chapter 8.74. The Library Impact
Fee for the project is:
Office/R&D: $.14/SF x 1,288,582 SF = $180,401.48
8. PUBLIC ART REQUIREMENT: All non-residential development is subject to the Public
Art Requirement, per South San Francisco Municipal Code Chapter 8.76. The public art
requirement for this project shall be satisfied by providing qualifying public art, as
defined in South San Francisco Municipal Code Chapter 8.76 and reviewed and approved
by the Cultural Arts Commission or designee, with a value equal to not less than 1% of
construction costs for acquisition and installation of public art on the project site; or
electing to make a public art contribution payment in an amount not less than 0.5% of
construction costs into the public art fund. The in-lieu contribution payment shall be
made prior to the issuance of a building permit.
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DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND
HCP FORBES, LLC
Exhibit D
Sustainability Features
The Vantage Project incorporates the following sustainability features into the campus design.
The following features assume a full campus build out:
Transportation
o The site is within walking distance of a select number of basic services and is
bikeable to several basic services such as restaurants, shops, and parks accessible
from Allerton Road or the bike trail. The campus amenity building also offers a
restaurant, fitness center, meeting space, and a conferencing center to reduce
vehicular use to and from the site during the work day.
o The parking garage includes bicycle parking for 168 long-term bicycles at full build
out and short-term bicycle parking spaces near building entrances in accordance with
CALGreen. Showers are provided in the amenity building to accommodate
commuters who bicycle to work.
o Parking areas include CLEAN AIR/VANPOOL/EV striping in accordance with
CALGreen requirements.
o Parking areas provide infrastructure for future Electric Vehicle Charging Stations.
o A Transportation Demand Management Plan (TDM) has been developed to promote
alternative forms of transportation and improve air quality.
Energy / Greenhouse Gas Emissions
o Energy strategies will be evaluated holistically to reduce energy demand and
operational carbon. Systems will be tested and monitored to aid in operational
efficiencies.
A commissioning agent has been retained in order to meet the requirements of
the LEED Fundamental & Enhanced Commissioning prerequisite, CALGreen,
and Title 24 requirements.
Project will comply with all applicable provisions of Title 24 2022 Energy
Efficiency Standards.
Project will meet LEED energy savings requirements through compliance
with Title 24. This energy optimization may be achieved using strategies such
as: building envelope features, building orientation or shape, efficient
mechanical, plumbing, or electrical systems.
o Electrical service to be provided by Peninsula Clean Energy or other clean energy
source.
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Waste Reduction
o Recycling and composting collection areas include mixed paper, corrugated
cardboard, glass, plastics, and metals. The project will take appropriate measures for
the safe collection, storage, and disposal of electronic waste.
o A Construction Waste Management Plan will be prepared and implemented.
Water Conservation
o Water conservation strategies will be prioritized to first conserve water by reducing
potable water demand. Water use monitoring and measurement offers operational
efficiencies for water conservation.
Outdoor Water Use
o Landscape will comply with the Model Water Efficient Landscape
Ordinance (MWELO).
o Irrigation systems should be separately metered.
o Native and drought tolerant species will be specified and planted.
Indoor Water Use
o Indoor plumbing fixtures will target an aggregate water consumption
reduction by 30% from the LEED v4.0 baseline. Additional reductions
will be targeted pending final selection of fixtures.
o Urinals, water closets, and any showerheads will be WaterSense
labeled.
o Building will have a dedicated water meter for whole building water
use.
o Project will install permanent meters for two water subsystems. One of
these meters should be tied to landscape irrigation and the cooling
towers will be equipped with make up water meters.
o Cooling towers shall be designed to maximize cycles of concentration b y assessing
the water quality on the site and through filtration and treatment.
Designing for Employee and Community Wellness
o Prioritize wellness as part of the design and operations through mechanical
ventilation and high efficiency filters.
o Provide on-site health and fitness facilities for building tenants.
o Provide open space that offers opportunities for tenant recreation and social
interaction.
o Provide vegetated area and diversity of plant species to promote connections to
nature.
o Provide access to natural daylight and views.
Other
o LEED v4.0 Certification.
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o On-site stormwater pollution prevention plans (including bio-filtration areas, flow-
through planters, and pervious pavers and pavements) and erosion and sediment
control plans.
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DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND
HCP FORBES, LLC
Exhibit E
Applicable Laws
Developer shall comply with the following City regulations and provisions applicable to
the Property as of the Effective Date of this Agreement (except as modified by this Agreement and
the Project Approvals).
1. South San Francisco General Plan, as adopted on October 12, 2022 and as amended from
time to time prior to the Effective Date.
2. City of South San Francisco Municipal Code, as amended from time to time prior to the
Effective Date, including Chapter 20.020 Zoning Districts, Zoning Map, and Boundaries.
3. South San Francisco Zoning Map, as amended from time to time prior to the Effective
Date.
4. City Fees as set forth in Exhibit C
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DEVELOPMENT AGREEMENT BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO AND
HCP FORBES, LLC
Exhibit F
Form of Assignment and Assumption Agreement
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WHEN RECORDED MAIL TO:
City of South San Francisco
Attn: City Clerk
400 Grand Avenue
South San Francisco, CA 94080
______________________________________________________________________________
Space Above for Recorder’s Use
Exempt from Recording Fees per Cal. Gov. Code § 6103
ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement (“Assignment Agreement”) is entered into to be
effective on ______, 202_, by and between HCP Forbes, LLC (“Assignor”), and
___________________, a _______________ (“Assignee”), and the City of South San Francisco,
a municipal corporation (“City”). Assignor and Assignee are sometimes referred to herein as a
“Party” and collectively as the “Parties.”
RECITALS
A. Assignor and City have previously entered into that certain Development
Agreement between City and Assignor dated ________, 2024, approved by the City of South San
Francisco City Council by Ordinance No. ________ on _________,2024 and recorded on
______________, 2024 as Document No. ______________, San Mateo County Official Records
(“Development Agreement”) to facilitate the development and redevelopment of that certain real
property within the City of South San Francisco, California, which is legally described in Exhibit
A of the Development Agreement (“Property”). A true and complete copy of the Development
Agreement is attached hereto as Exhibit 1.
B. Assignor is the fee owner of the Property, and Assignor desires to convey its interest
in the developable, approximately [_] acre portion of the Property and more particularly described
on Exhibit 2 attached hereto (“Assigned Property”) to Assignee concurrently with execution of
this Assignment Agreement; and Assignee desires to so acquire such interest in the Assigned
Property from the Assignor.
C. Section 8.1 of the Development Agreement (“Agreement and Transfer” therein)
refers to Assignor as “Developer” and provides in part that:
Developer may transfer or assign all or any portion of its interests, rights, or
obligations under the Agreement and the Project approvals to third parties acquiring
an interest or estate in the Project or any portion thereof including, without
limitation, purchasers or lessees of lots, parcels, or facilities. Prior to the issuance
of the first certificate of occupancy for the Project Site, Developer will seek City’s
prior written consent to any transfer, which consent will not be unreasonably
withheld or delayed. City may refuse to give consent only if, in light of the proposed
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transferee’s reputation and financial resources, such transferee would not, in City’s
reasonable opinion, be able to perform the obligations proposed to be assumed by
such transferee. Such determination will be made by the City Manager and will be
appealable by Developer to the City Council. For any transfer of all or any portion
of the Property, the Developer and assignee shall enter into an assignment and
assumption agreement in substantially the form set forth in Exhibit F.
D. The Parties desire to enter into this Assignment Agreement in order to satisfy and
fulfill their respective obligations under Section 8.1 of the Development Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants
hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties agree as follows:
1. Assignment by Assignor. Assignor hereby assigns, transfers and grants to
Assignee, and its successors and assigns, all of Assignor’s rights, title and interest and obligations,
duties, responsibilities, conditions and restrictions under the Development Agreement with respect
to the Assigned Property and only to the extent accruing or arising on and after the Effective Date
(collectively, the “Assigned Rights and Obligations”).
2. Acknowledgement and Assumption of Obligations by Assignee. Assignee, for
itself and its successor and assigns, hereby acknowledges that it has reviewed, is aware of and
intends to honor its Assigned Rights and Obligations with respect to its Development of the
Assigned Property pursuant to the terms of the Development Agreement, and additionally
expressly and unconditionally assumes all of the Assigned Rights and Obligations. Assignee
agrees, expressly for the benefit of Assignor and City, to comply with, perform, and execute all of
the Assigned Rights and Obligations.
3. Release of Assignor. Assignee and City hereby fully release Assignor from all
Assigned Rights and Obligations. Both Assignor and Assignee acknowledge that this Assignment
Agreement is intended to partially or fully assign all of the Assigned Rights and Obligations to
Assignee, and it is expressly understood that Assignor shall continue to be obligated under the
Development Agreement only with respect to those portions of the Project Site retained by
Assignor. .
4. Substitution of Assignor. Assignee hereinafter shall be substituted for and replace
Assignor in the Development Agreement with respect to the Assigned Property. Whenever the
term “Developer” appears in the Development Agreement, it shall hereinafter include Assignee
with respect to the Assigned Property.
5. Development Agreement in Full Force and Effect. Except as specifically
provided herein with respect to the assignment and assumption, all the terms, covenants,
conditions and provisions of the Development Agreement are hereby ratified and shall remain
in full force and effect.
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6. Recording. Assignor shall cause this Assignment Agreement to be recorded in
the Official Records of San Mateo County, California, and shall promptly provide conformed
copies of the recorded Assignment Agreement to Assignee and City.
7. Successors and Assigns. All of the terms, covenants, conditions and provisions
of this Assignment Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, successors and assigns.
8. Applicable Law/Venue. This Assignment Agreement shall be construed and
enforced in accordance with the laws of the State of California, without reference to choice of
law provisions. Any legal actions under this Assignment Agreement shall be brought only in the
Superior Court of the County of San Mateo, State of California.
9. Applicable Law/Venue. This Assignment Agreement shall be construed and
enforced in accordance with the laws of the State of California, without reference to choice of
law provisions. Any legal actions under this Assignment Agreement shall be brought only in the
Superior Court of the County of San Mateo, State of California.
10. Interpretation. All parties have been represented by counsel in the preparation
and negotiation of this Assignment Agreement, and this Assignment Agreement shall be
construed according to the fair meaning of its language. The rule of construction to the effect
that ambiguities are to be resolved against the drafting party shall not be employed in
interpreting this Assignment Agreement. Unless the context clearly requires otherwise: (a) the
plural and singular numbers shall each be deemed to include the other; (b) the masculine,
feminine, and neuter genders shall each be deemed to include the others; (c) “shall,” “will,”
or “agrees” are mandatory, and “may” is permissive; (d) “or” is not exclusive; and (e) “includes”
and “including” are not limiting.
11. Severability. Except as otherwise provided herein, if any provision(s) of this
Assignment Agreement is (are) held invalid, the remainder of this Assignment Agreement shall
not be affected, except as necessarily required by the invalid provisions, and shall remain in
full force and effect unless amended or modified by mutual consent of the parties.
12. Counterparts. This Assignment Agreement may be executed in one or more
counterparts, each of which shall be deemed to constitute an original, but all of which, when
taken together, shall constitute one and the same instrument, with the same effect as if all
of the parties to this Assignment Agreement had executed the same counterpart.
13. City Consent. City is executing this Assignment Agreement for the limited
purpose of consenting to the assignment and assumption and clarifying that there is privity
of contract between City and Assignee with respect to the Development Agreement.
14. Effective Date. The Effective Date of this Assignment Agreement shall be the
date upon which Assignee obtains fee title to the Assigned Property by duly recorded deed
(“Effective Date”).
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IN WITNESS WHEREOF, Assignor, Assignee and City have entered into this Assignment
Agreement as of the date first written above.
ASSIGNOR:
HCP FORBES, LLC
By:
Signature of Person executing the Agreement on
behalf of Assignor
Name:
Title:
ASSIGNEE:
[INSERT NAME OF ASSIGNEE]
By:
Signature of Person executing the Agreement on
behalf of Assignee
Name:
Title:
CITY:
CITY OF SOUTH SAN FRANCISCO,
a Municipal Corporation
By:
Signature of Person executing the Agreement on
behalf of City
Name:
Title: City Manager
Approved as to form by:
By:
Signature of Person approving form of the
Agreement on behalf of City
Name:
Title: City Attorney
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Exhibit G
Fire Station Agreement
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City Clerk
City of South San Francisco
P.O. Box 711
South San Francisco, CA 94083
______________________________________________________________________________
(Space Above This Line Reserved For Recorder’s Use)
This instrument is exempt from recording fees pursuant to Government Code section 27383.
Documentary Transfer Tax is $0.00 (exempt per Revenue & Taxation Code section 11922, Transfer
to Municipality).
VANTAGE PROJECT
FIRE STATION AGREEMENT
BY AND BETWEEN
CITY OF SOUTH SAN FRANCISCO
AND
HCP FORBES, LLC
This Fire Station Agreement (“Agreement”) is entered into as of _________, 2024
(“Effective Date”), by and between the City of South San Francisco, a municipal corporation
organized and existing under the State of California (the “City”) and HCP Forbes, LLC, a
Delaware limited liability company (“Developer”). The City and Developer are sometimes
hereinafter referred to as a “Party” and collectively as the “Parties.”
R E C I T A L S
WHEREAS, Developer has a legal and/or equitable interest in certain real property located
on the approximately 18.99 acre site consisting of 420, 440, 460, 480, and 490 Forbes Boulevard
in the City of South San Francisco, County of San Mateo, State of California (the “Property”),
and intends to develop the Property into a One Million Six Hundred Fifty Five Thousand Two
Hundred Two (1,655,202) square foot office/research and development and life science campus
and amenities, parking, and infrastructure (the “Campus Development”) with a fire station that
will be developed by the City (the “Fire Station”). Collectively, the Campus Development and
the Fire Station are referred to as, the “Development Project”; and
WHEREAS, on [DATE], after a duly noticed public hearing, the City Council approved
various entitlements for the Development Project by adopting Resolution No. ____ for Project
P22-0117 and Project P22-0138, including a Master Plan, Precise Plan, Design Review,
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Transportation Management Plan, Conditional Use Permit, Development Agreement
(“Development Agreement”), and Vesting Tentative Map (collectively, the “Entitlements”),
which authorize development of the Development Project; and
WHEREAS, on [DATE], pursuant to Ordinance No. ____, the Parties entered into the
Development Agreement to vest Developer’ rights to develop the Development Project in
exchange for certain community benefits provided to the City; and
WHEREAS, the Development Project’s 2.0 FAR is proposed in accordance with the BTP-
High General Plan designation and zoning that allow a maximum 2.0 FAR with community
benefits on the Property; and
WHEREAS, South San Francisco Municipal Code (the “S.S.F.M.C.”) section
20.100.003(B) allows for certain projects to realize increased FAR by complying with the City’s
Community Benefit Program; and
WHEREAS, Developer intends to satisfy the City’s Community Benefit Program by
conveying to the City an approximately one-acre parcel on the northwestern corner of the Property,
accessible from Forbes Boulevard, more specifically described in the attached Exhibit A (the
“Fire Station Parcel”), upon which the City will develop the Fire Station; and
WHEREAS, the Parties agree that the Development Project and the densification of the
East of 101 Area, as envisioned by the City’s Shape SSF 2040 General Plan (the “General Plan”),
will increase the demand for fire services in the neighborhood and will strain existing fire service
facilities; and
WHEREAS, the City is responsible for providing fire protection services within the City;
and
WHEREAS, conveyance of the Fire Station Parcel will provide the City with significant
community benefits, by allowing the City to develop the Fire Station onsite, increasing fire service
coverage in the East of 101 Area, consistent with the City Shape SSF 2040 General Plan policies
and the S.S.F.M.C.; and
WHEREAS, Developer and the City agree that the conveyance of the Fire Station Parcel
and the City’s development of the Fire Station on the Fire Station Parcel will mutually benefit the
Parties; and
WHEREAS, the conveyance of the Fire Station Parcel for the City’s development of the
Fire Station is consideration for the City’s issuance of the Entitlements to Developer, and
Developer’ development rights under the Development Agreement granted by the City; and
WHEREAS, Developer has agreed to convey the Fire Station Parcel to the City, subject to
the terms and conditions set forth herein, in order to mitigate the Development Project’s impacts
to fire protection services and to provide significant community benefits to the City, in exchange
for the City’s approval of the Development Project and Entitlements at the proposed density; and
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WHEREAS, the Parties desire to enter into this Agreement to set forth (i) Developer’s
commitment to convey the Fire Station Parcel to the City, in exchange for increased density for
the Development Project, and (ii) the City’s obligations with respect to acceptance of the Fire
Station Parcel and efforts towards development of the Fire Station.
NOW THEREFORE, in consideration of the covenants and agreements hereinafter set
forth, the Parties agree as follows:
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AGREEMENT
ARTICLE 1
FIRE STATION PARCEL
Section 1.1 Fire Station Parcel
1.1.1 Fire Station Parcel Transfer. Pursuant and subject to the terms of this
Agreement, Developer shall convey fee title to the Fire Station Parcel to the City in exchange for
the benefits afforded Developer detailed in the Development Agreement.
ARTICLE 2
Obligations OF THE PARTIES
Section 2.1 Developer’ Rights and Obligations
2.1.1 Fire Station Parcel Conveyance. Within ninety (90) days of the execution
of this Agreement, Developer shall execute a grant deed for the Fire Station Parcel to the City in
accordance with this Section 2.1.1 (the “Grant Deed”) substantially in the form attached as
Exhibit B hereto and deliver such Grant Deed to the City.
2.1.2 Conveyance of Fire Station Parcel. Developer shall convey the Fire
Station Parcel on an “as is” basis without warranties, representations or guarantees, express or
implied, but in a fenced condition. Upon conveyance, Developer shall be released from liability
with respect to the Fire Station Parcel.
Section 2.2 City’s Rights and Obligations
2.2.1 As-Is Property. City agrees and acknowledges that it is taking title to the
Fire Station Parcel in its “as-is” condition and that Developer makes no representations or
warranties regarding the condition of the Fire Station Parcel.
ARTICLE 3
Fire Station Development and Interim Use
Section 3.1 License for Use of Fire Station Parcel
During the term of the Development Agreement, Developer may, pursuant to a mutually
acceptable license agreement (the “Fire Station Parcel License Agreement”), operate and utilize
the Fire Station Parcel in accordance with applicable laws and regulations, including using the Fire
Station Parcel for ingress, egress, parking, staging, and other construction related activities until
the City (i) commences construction of the Fire Station, (ii) conveys the Fire Station Parcel to a
third-party after the Restriction Period or (iii) otherwise commences an alternative public use
(consistent with the Alternative Use Restriction set forth in Section 3.5 (b) below) on the Fire
Station Parcel after the Restriction Period. For purposes of this Agreement, the Restriction Period
shall have the same meaning as outlined in the Development Agreement.
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If Developer elects not to pursue a Fire Station License Agreement with the City for use of
the Fire Station Parcel as contemplated in this Section 3.1, then City may elect to license the Fire
Station Parcel to other users for similar temporary uses pursuant to a license agreement. For
purposes of this Section 3.1, Developer shall have elected not to pursue the Fire Station License
Agreement with the City only if Developer has not requested to enter into the Fire Station License
Agreement with the City in writing within one (1) year of the Effective Date of the Development
Agreement or has failed to respond to City’s offer to enter into the Fire Station License Agreement
within thirty (30) days after receipt of same.
Section 3.2 License for Use of Campus Development Property
During the term of the Development Agreement, the City may, pursuant to a mutually
acceptable license agreement in a form substantially similar to the Fire Station Pracel License
Agreement (the “Vantage Campus License Agreement”), use certain Campus Development
property (as determined by Developer, in its sole discretion) for vehicle parking, staging and other
construction related activities for the Fire Station Parcel in accordance with applicable laws and
regulations, until such time as Developer determines, in its sole discretion, that it can no longer
allow such use by the City.
If the City has not requested to enter into a Vantage Campus License Agreement with
Developer in writing within one (1) year of the Effective Date of the Development Agreement or
has failed to respond to Developer’s offer to enter into a license agreement within thirty (30) days
after receipt of same, the City shall be deemed to have elected not to pursue the Vantage Campus
Licese Agreement with Developer.
Section 3.3 City Responsibility for Fire Station Development
The City shall be solely responsible for design, construction and development of the Fire
Station on the Fire Station Parcel and shall design and construct the Fire Station to be aesthetically
cohesive with the Development Project. The City shall cooperate with Developer in designing the
Fire Station to ensure that it conforms to the foregoing requirements; provided, however, that the
City may decline to incorporate any changes that Developer requests to the final plans and
specifications that would unreasonably increase the cost of the Fire Station or would otherwise be
inconsistent with the City’s approved use of the Fire Station Parcel.
Section 3.4 Timing for Fire Station Development
The City shall use reasonable efforts to commence construction of the Fire Station within
seven (7) years following Development Agreement Effective Date (“Fire Station Development
Period”). For purposes of this Section 3.4, “commence construction” shall mean receipt of any
written certification or authorization required to obtain building permits or other development
approvals for the construction of the fire station.
Section 3.5 Limitation on Sale/Use of Fire Station Parcel
a) Limitation on Sale of Fire Station Parcel. Consistent with the terms outlined in the
Development Agreement, the City agrees that it will not sell the Fire Station Parcel during the
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Fire Station Development Period. Any proposed sale after the Fire Station Development Period
shall be subject to the provisions of Article 7 herein.
b) Limitation on Use of Fire Station Parcel. After the Fire Station Development Period, City may
develop an alternative public use on the Fire Station Parcel consistent with Table 20.100.002:
Use Regulations for BTP-H zoning district in effect on the Fire Station Parcel (“Alternative
Use Restriction”). After the expiration of the term of the Development Agreement, City may
elect to develop any use consistent with the then applicable zoning on the Fire Station Parcel.
Section 3.6 Prorations
Real property taxes, bonds, assessments and any other similar charges imposed on the Fire
Station Parcel shall be segregated or such segregation shall be estimated by First American Title
Insurance Company (the “Title Company”), and prorated as of the Closing Date on the basis of a
thirty (30)-day month. With respect to any proration based on an estimated segregation by the Title
Company, if and when the charges relating thereto are segregated by the appropriate agency, within
thirty (30) days after such date but in no event later than ninety (90) days after the year in which
the Closing occurs, the Parties shall adjust said proration as necessary, and pay such adjustment to
the appropriate Party.
Section 3.7 Closing Costs
Developer shall pay all applicable charges and expenses associated with the Closing,
including, without limitation: transfer stamps and any other transfer taxes, all escrow fees and
charges, all recording fees, the cost of the Title Policy, and any miscellaneous costs as determined
by the Title Company (collectively, “Closing Costs”).
Section 3.8 Closing Conditions
The Closing is subject to satisfaction of the following closing conditions (“Closing
Conditions”):
(a) Each Party shall have performed all of its obligations under this
Agreement; and
(b) Each Party shall have deposited with the Title Company all
documents, monies and written escrow instructions as may be necessary for conveyance and
acceptance of the Fire Station Parcel.
Section 3.9 Developer’ Deliveries
On or before the Closing Date (as defined below), Developer shall deliver (or cause to be
delivered) to the Title Company the following:
(a) An executed and notarized Grant Deed;
(b) Funds to pay Closing Costs; and
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(c) Such other documents and instruments as may be required by this
Agreement or reasonably requested by the Title Company in order to consummate this transaction.
Section 3.10 City’s Deliveries
On or before Closing Date, the City shall deliver to the Title Company the following:
(a) Such other documents and instruments as may be required by this
Agreement or as may be reasonably requested by the Title Company in order to consummate this
transaction; and
(b) The amount of one dollar ($1) as a sale price.
Section 3.11 Concurrent Conditions
On the Closing Date, the following shall occur, all of which shall be deemed concurrent
conditions:
(a) The Title Company shall record the Grant Deed in the Official
Records of the County of San Mateo; and
(b) Subject to the license rights described herein, Developer shall
deliver (or cause to be delivered) possession of the Fire Station Parcel to the City free and clear of
any tenancies and parties in possession.
ARTICLE 4
Full satisfaction of community benefit commitments
Developer’ performance of this Agreement shall constitute full and complete satisfaction
of its community benefit commitments in exchange for obtaining increased density for the
Development Project, pursuant to S.S.F.M.C. section 20.395.003(A)(2). In furtherance of the
foregoing understandings, in the event Developer has not yet constructed all of the Development
Project buildings within the term of the Development Agreement, the Parties agree that any
Community Benefit Commitments Developer has made prior to the expiration of the Development
Agreement shall nonetheless satisfy any of the Community Benefits Payment allocated to the
Development Project buildings constructed after the Development Agreement expires and the
Project shall not be subject to any additional Community Benefits Payment obligations provided
however, that the Development Project buildings are constructed in accordance with the Project
Approvals as memorialized in the Development Agreement at execution.
Section 4.1 Full and Complete Mitigation.
4.1.1 No Waiver of Right to Protest. The Parties acknowledge that Government
Code section 66020(d)(1) provides that local agencies shall provide a project applicant notice, in
writing, at the time of imposition of fees, dedications, reservations, or other exactions, a statement
of the amount of fees, or a description of the dedications, reservations, or exactions and a
notification that the ninety (90)-day approval period in which the applicant may protest such fees
has begun. Developer agrees that it has voluntarily entered this Agreement and knowingly and
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willingly waives all rights of protest under Government Code sections 66020, 66021 or 66022, or
any other provision of law with respect to the dedication or transfer of the Fire Station Parcel, and
other payments, responsibilities, obligations or consideration as set forth herein; provided,
however, that Developer and its successors-in-interest do not hereby waive the right to protest
future adjustments of the City’s fees, if applicable, as and when such adjustments may be adopted
by the City from time to time, in accordance with Government Code sections 66000, et seq.
4.1.2 Tax/Bond.
Notwithstanding any provision herein to the contrary, nothing contained in this Agreement shall
preclude the City from levying a voter-approved special tax or general obligation bond (ad
valorem) tax or similar bond and/or tax measure against the property subject to the Development
Agreement, provided such measure is uniformly and/or proportionately imposed, to the extent
legally permitted and in accordance with applicable legal requirements, on the properties located
within the boundaries of the City of South San Francisco.
Section 4.2 Certificates of Compliance
The City shall provide any written certification required to obtain building permits or other
development approvals for the construction in the Campus Development (“Certificates of
Compliance”). The City shall not be obligated to refund or otherwise reimburse Developer for
any payments made by Developer in the event Developer fails in any manner to construct any
portion of the Campus Development.
ARTICLE 5
Default Provisions
Section 5.1 Default or Breach
In the event of default, breach or failure to perform any material obligation under this
Agreement or of any of its terms or conditions (“Default”), the Party alleging such Default shall
give the defaulting Party not less than thirty (30) days’ notice of the Default in writing, unless the
Parties extend such time by mutual consent in writing. The notice of Default shall specify the
nature of the alleged Default, and, where appropriate, the manner and period of time in which said
Default may be satisfactorily cured. If the nature of the alleged Default is such that it cannot
reasonably be cured within such thirty (30)-day period, the commencement of the cure within such
time period and the diligent prosecution to completion of the cure shall be deemed a cure within
such period. During any period of curing, the Party charged shall not be considered in Default for
the purposes of termination or institution of legal proceedings. If the Default is cured, then no
Default shall be considered to exist and the noticing Party shall take no further action. Any Default
of a material provision of this Agreement not cured by the expiration of the cure period shall entitle
the Party injured thereby to any and all remedies available by law.
Section 5.2 Claims or Disputes
Claims or disputes between the City and Developer (including, without limitation,
demands for monetary compensation or time extensions) arising from or relating to this Agreement
shall be handled in accordance with this Section 6.2. Promptly after identification of a claim or
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dispute, authorized representatives of the Parties involved shall meet face-to-face to review and
consider the claims (“Settlement Meeting”). The Settlement Meeting shall occur at the earliest
practicable date and shall be for the express purpose of: (1) exchanging and reviewing pertinent
documents and information relating to the matters and issues in dispute; (2) freely and candidly
discussing each Party’s position; and (3) reaching agreement upon a reasonable, compromise
resolution of the claim or dispute.
Section 5.3 Mediation
If any claim or dispute remains unresolved after the Settlement Meeting, the Parties shall
promptly submit the matter to mediation by an experienced, mutually acceptable mediator in San
Mateo County. If the Parties are unable to agree upon a mediator, they shall meet and confer to
establish a mutually acceptable process for the selection of a mediator and coordinate the
mediation. Unless the Parties both agree upon a longer period of time, the mediation shall be held
no later than forty-five (45) days after the Settlement Meeting. No later than ten (10) days prior
to mediation, the Parties shall exchange in a cooperative and forthright manner all documents, data
and information relating to the claim or dispute, excepting only those items protected by the
attorney-client or other applicable privilege. The Parties shall share equally the mediator’s fee for
the mediation. All offers, promises, conduct and statements, whether oral or written, made in the
course of the mediation by any of the Parties, their agents, employees, experts and attorneys, are
confidential, privileged and inadmissible for any purpose, including impeachment, in any litigation
or other proceeding involving the Parties, provided that evidence that is otherwise admissible or
discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the
mediation. If parties are unable to settle the matter after mediation, then either Party may file suit
in the court of competent jurisdiction in San Mateo County.
ARTICLE 6
Transfers and Disclosures
Section 6.1 Transfer Rights
The assignment and transfer provisions contained in Article 8 of the Development
Agreement are hereby incorporated herein by this reference and shall apply with respect to any
transfers or assignment by the parties hereto with respect to this Agreement mutatis mutandis.
Section 6.2 Conveyed Portions of the Property
As set forth herein, the City’s rights with respect to the Property are limited to the Fire
Station Parcel. The remaining portion of the Property shall be deemed released from any
obligation set forth in this Agreement (the “Released Property”). The City and Developer hereby
authorize and direct that any and all policies of title insurance with respect to the Released Property
shall not include or describe the Agreement in matters affecting the condition of title to the
Released Property, or applicable portions thereof, following the recordation of the Grant Deed.
ARTICLE 7
ROFO and rofr rights
Section 7.1 Developer’ Right of First Offer
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7.1.1 Right of First Offer Trigger. Subject to the City’s compliance with the
provisions of the California Surplus Land Act, if, at any time after the expiration of the Fire Station
Development Period, the City desires to sell the Fire Station Parcel to an unaffiliated third party in
a bona fide transaction, the City shall notify Developer in writing (the “ROFO Trigger Notice”)
that it intends to offer the Fire Station Parcel for sale. Developer shall thereafter have a right of
first offer to purchase the Fire Station Parcel upon the terms and conditions of this Section 7.1
(“ROFO”). The ROFO Trigger Notice shall include the City’s proposed purchase price for the
Fire Station Parcel (the “ROFO Offer Price”).
7.1.2 ROFO Exercise Notice. Within sixty (60) days of Developer’ receipt of the
ROFO Trigger Notice (the “ROFO Exercise Period”), Developer may notify the City in writing
(the “ROFO Exercise Notice”) that it desires to exercise its ROFO to purchase the Fire Station
Parcel: (i) at the ROFO Offer Purchase Price; or (ii) if Developer disagrees with the ROFO Offer
Price, Developer shall propose in such notice the terms and conditions of its offer to purchase the
Fire Station Parcel including but not limited to the proposed purchase price for the Fire Station
Parcel (“ROFO Counter-Offer Price”). If the City agrees with the ROFO Counter-Offer Price,
the City shall notify Developer in writing within fifteen (15) days following receipt of the ROFO
Exercise Notice (the “City Acceptance Notice”). If the City disagrees with the ROFO Counter-
Offer Price and/or fails to timely deliver the City Acceptance Notice, the City and Developer shall
within thirty (30) days thereafter use commercially reasonable efforts to determine the purchase
price of the Fire Station Parcel (the “ROFO Purchase Price”). During such 30-day period, the
City shall provide Developer with customary information necessary to determine the ROFO
Purchase Price. If the parties are unable to agree upon the ROFO Purchase Price within such 30-day
period, each party will select an appraiser and the two appraisers will select a third appraiser. All
appraisers selected to determine the ROFO Purchase Price shall come from JLL, Newmark, Eastdil
or CBRE. Upon receipt of the appraisals, the outlier appraisal will be removed from consideration
and the ROFO Purchase Price will equal the average of the two remaining appraisals. Upon
determination of the ROFO Purchase Price, Developer shall have fifteen (15) days to provide the
City with written notice of Developer’s intent to proceed with the purchase of the Fire Station
Parcel at the ROFO Purchase Price (the “ROFO Proceed Notice”). Nothwithstanding anything to
the contrary contained herein, all rights and obligations of Developer related to the ROFO pursuant
to this Section 7.1 are subject to and contingent upon City’s obligations under and compliance with
the California State Surplus Land Act.
7.1.3 Escrow Agreement. Within five (5) business days of the later of (i) the
delivery of the ROFO Exercise Notice if Developer has accepted the ROFO Offer Price, (ii) the
delivery of the City Acceptance Notice if the City has accepted the ROFO Counter-Offer Price, or
(iii) the delivery of the ROFO Proceed Notice if a determination of the ROFO Purchase Price was
required, Developer and the City shall enter into a commercially reasonable escrow agreement
with the Title Company (“Escrow Agent”) which shall authorize Escrow Agent to hold and
disburse the purchase price for the Fire Station Parcel and record the Deed (as defined herein),
each in accordance with the terms thereof, and shall include terms and conditions similar to those
related to the original conveyance of the Fire Station Parcel to the City pursuant to this Agreement
(the “Escrow Agreement”).
7.1.4 Purchase Contract. Upon the acceptance of the terms and conditions within
the ROFO Exercise Notice, City Acceptance Notice, or the ROFO Proceed Notice, as applicable, in
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accordance with the provisions of Section 7.1.2 hereof, this Agreement shall automatically become
a binding and enforceable Purchase and Sale Agreement between the City and Developer. City
and Developer agree that any and all escrow fees, taxes, and transfer costs associated with the
transaction described herein shall be handled in accordance with the terms of the customs located
in the City of South San Francisco for the transfer of commercial property.
7.1.5 No ROFO for Alternative Public Use. Notwithstanding the foregoing,
Developer shall not have a ROFO right if City elects to develop another public use on the Fire
Station Parcel after the expiration of the Fire Station Development Period only if such alternative
public use satisfies the Alternative Use Restriction.
Section 7.2 Developer’ Right of First Refusal
7.2.1 Third Party Sale. Upon compliance with the terms of Section 7.1 above, the
City shall have the option, in its sole discretion, to market the Fire Station Parcel for a sale with a
third party (“Third Party Closing”); provided, however, that Developer shall maintain a right of
first refusal (“ROFR”) on a Third Party Closing subject to the terms of this Section 7.2.
7.2.2 Right of First Refusal.
(a) Notice of Third Party Closing. Subject to the City’s compliance with
the provisions of the California Surplus Land Act, within five (5) business days following receipt
of a term sheet or other expression or letter of intent by a third party to purchase the Fire Station
Parcel (“Third Party LOI”) that is satisfactory to the City in its sole discretion, the City shall
notify and send Developer such Third Party LOI which shall disclose to Developer the
contemplated purchase price for the Fire Station Parcel (the “ROFR Trigger Notice”).
(b) ROFR Exercise Notice. Within thirty (30) days after Developer’
receipt of the ROFR Trigger Notice (the “ROFR Exercise Period”), Developer may notify the
City in writing (the “ROFR Exercise Notice”) that Developer exercises its option to purchase the
Fire Station Parcel at the purchase price set forth in the ROFR Trigger Notice (the “ROFR
Purchase Price”). Within five (5) business days following the ROFR Exercise Notice, Developer
and the City shall enter into an Escrow Agreement with the Escrow Agent which shall authorize
Escrow Agent to hold and disburse the ROFR Purchase Price for the Fire Station Parcel and record
the Deed, each in accordance with the terms thereof. Nothwithstanding anything to the contrary
contained herein, all rights and obligations of Developer related to the ROFR pursuant to this Section
7.2 are subject to and contingent upon City’s obligations under and compliance with the California
State Surplus Land Act.
(c) Purchase Contract. Upon receipt of the ROFR Exercise Notice
pursuant to Section 7.2.2(b) of this Agreement, this Agreement shall automatically become a
binding and enforceable Purchase and Sale Agreement between the City and Developer. For the
avoidance of doubt, the terms of this Agreement shall supersede all provisions of the Third Party
LOI except for the ROFR Purchase Price.
7.2.3 ROFR Conditional Waiver and Re-Offer. In the event that Developer either
(a) fails to give the ROFR Exercise Notice within the ROFR Exercise Period, or (b) fails to
consummate the transaction contemplated in this Section 7.2 for any reason, the City shall be free
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to offer the Fire Station Parcel for sale in the market in accordance with, and subject to, this Section
7.2. Notwithstanding the foregoing, if the City does not sell the Fire Station Parcel to such third
party at purchase price of 95% or more of the ROFR Purchase Price or does not close the sale of
the Fire Station Parcel to such third party within nine (9) months from the expiration of the ROFR
Exercise Period, then if the City still desires to market the Fire Station Parcel for sale, then the City shall be
required to re-offer the Fire Station Parcel to Developer.
7.2.4 ROFR Rights Remain. For the avoidance of doubt, if at any time after
complying with the provisions of Section 7.2, a sale to a third party by the City fails to close,
Developer’ rights under this Section 7.2 shall remain in full force and effect for the remainder of
the ROFO/ROFR Period.
7.2.5 No ROFR for Alternative Public Use. Notwithstanding the foregoing,
Developer shall not have a ROFR right if City elects to develop another public use on the Fire
Station Parcel after the expiration of the Fire Station Development Period only if such alternative
public use satisfies the Alternative Use Restriction.
Section 7.3 ROFO/ROFR Period
7.3.1 The City and Developer agree that Developer shall retain its ROFO and
ROFR rights, as described in Sections 7.1 and 7.2 above, respectively, during the term of the
Development Agreement, as may be extended (“ROFO/ROFR Period”).
7.3.2 The Escrow Agreement will provide the for at least a sixty (60) day due
diligence period and allow Developer to access, inspect and perform its due diligence with respect
to the Fire Station Parcel, and at any time prior to the expiration of the 60-day due diligence period,
Developer can elect, in its sole discretion, to rescind its ROFO Exercise Notice, ROFO Proceed
Notice, or ROFO Exercise Notice, as applicable, or proceed to closing on a closing date reasonably
and mutually agreeable to the parties (“Closing Date”). The ROFO Offer Price, ROFO Counter-
Offer Price, ROFO Purchase Price, or ROFR Purchase Price, as applicable (collectively, the
“Purchase Price”), shall be payable to the Escrow Agent by wire transfer of immediately available
funds as directed by the City on the Closing Date. The Purchase Price shall be adjusted as of the
Closing Date for customary and ordinary prorations with respect to real estate taxes, assessments,
and any other governmental taxes and charges levied or assessed against the Fire Station Parcel.
ARTICLE 8
General
Section 8.1 Governing Law
This Agreement shall be construed in accordance with, and governed by, the laws of the
State of California applicable to contracts to be performed wholly within the State.
Section 8.2 Construction
The Parties acknowledge and agree that each of the Parties and each of the Parties’
attorneys have participated fully in the negotiation and drafting of this Agreement. In cases of
uncertainty as to the meaning, intent or interpretation of any provision of this Agreement, the
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Agreement shall be construed without regard to which of the Parties caused, or may have caused,
the uncertainty to exist. No presumption shall arise from the fact that particular provisions were
or may have been drafted by a specific Party.
“Business Days” means days other than Saturdays, Sundays, and federal and State legal
holidays, and “days” means calendar days. If the time for performance of an obligation under this
Agreement falls other than on a Business Day, the time for performance shall be extended to the
next Business Day. The words “include” or “including” shall be read as if followed by the phrase
“without limitation.” “Shall” is mandatory and “may” is permissive. All references to this
Agreement shall include the Agreement as amended or supplemented in compliance with its terms.
Any reference to a statute or regulation shall include any amendments thereto. The words “Party”
or “Parties” refer only to named Parties to this Agreement. The definitions in this Agreement apply
equally to both singular and plural of the defined term.
Section 8.3 Force Majeure
No Party shall be held responsible or liable for an inability to fulfill any obligation under
this Agreement by reason of an act of God, natural disaster, accident, breakage or failure of
equipment, strikes, lockouts, or other labor disturbances or labor disputes of any character,
interruption of services by suppliers thereof, unavailability of materials or labor, rationing or
restriction on the use of utilities or public transportation whether due to energy shortages or other
causes, war, acts of terrorism, civil disturbance, riot, litigation or other legal action by a third party
arising out of or relating to this Agreement, the Fire Station Parcel or the Fire Station, or by any
other occurrence that is beyond the control of that Party (“Force Majeure”) or its authorized
agents, contractors or assigns. Any Party relying on a Force Majeure shall give the other Part y
reasonable notice thereof and the Parties shall use their best efforts to minimize potential adverse
effects from such Force Majeure, including without limitation, subcontracting the obligations of
the Party claiming such Force Majeure to a third party and extending the time periods for
performance.
Section 8.4 Notices
Any notice to be given hereunder to either Party shall be in writing and shall be given either
by personal delivery (including express or courier service), by nationally recognized overnight
courier, or by registered or certified mail, with return receipt requested, postage prepaid and
addressed as follows:
To the City:
______________________
______________________
______________________
______________________
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With a copy to:
______________________
______________________
______________________
______________________
To Developer:
______________________
______________________
______________________
______________________
With copies to:
______________________
______________________
______________________
______________________
Section 8.5 Relationship of Parties
The relationship of the Parties to this Agreement is determined solely by the provisions of
this Agreement. This Agreement does not create and shall not be construed to create any agency,
partnership, joint venture, trust or other relationship with duties or incidents different from those
of parties to an arm’s length contract. Each Party is an independent entity and shall be solely
responsible for the employment, acts, omissions, control and direction of its employees. Except
as expressly set forth herein, nothing in this Agreement shall authorize or empower any Party to
assume or create any obligation or responsibility whatsoever, express or implied, on behalf of or
in the name of the other Party or to bind any other Party in a manner or make any representation,
warranty or commitment on behalf of any other Party.
Section 8.6 No Third Party Beneficiaries
Nothing in this Agreement, whether express or implied, is intended to or shall do any of
the following: (a) confer any benefits, rights or remedies under or by reason of this Agreement on
any persons other than the express parties to it; (b) relieve or discharge the obligation or liability
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of any person not an express party to this Agreement; or (c) give any person not an express party
to this Agreement any right of subrogation or action against any Party to this Agreement.
Section 8.7 Time is of the Essence
Time is of the essence in the performance of each Party’s respective obligations under this
Agreement.
Section 8.8 Amendments/Waivers
No amendment of, supplement to or waiver of any obligations under this Agreement will
be enforceable or admissible unless set forth in writing signed by the Party against which
enforcement or admission is sought. No delay or failure to require performance of any provision
of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any
waiver granted shall apply solely to the specific instance expressly stated.
Section 8.9 Entire Agreement
This Agreement, along with the Development Agreement and the Grant Deed, sets forth
the entire understanding of the Parties relating to the transactions it contemplates, and supersedes
all prior understandings relating to them, whether written or oral. There are no obligations,
commitments, representations or warranties relating to them except those expressly set forth in
this Agreement, the Development Agreement and the Grant Deed.
Section 8.10 Severability
If any provision of this Agreement is held invalid, void or unenforceable but the remainder
of this Agreement can be enforced without failure of material consideration to any Party, then this
Agreement shall not be affected and it shall remain in full force and effect, unless amended or
modified by mutual consent of the Parties; provided, however, that if the invalidity or
unenforceability of any provision of this Agreement results in a material failure of consideration,
then the Party adversely affected thereby shall have the right in its sole discretion to terminate this
Agreement upon providing written notice of such termination to the other Party. In the event any
provision in this Agreement is revised or eliminated pursuant to this Section which prevents the
City from obtaining the Fire Station Parcel, the City shall be entitled to collect the Community
Benefit Fees contemplated in SSFMC section 20.100.003(B) described above.
Section 8.11 Signatures
By signing below, each of the signatories represents and warrants that he or she has been
duly authorized to execute this Agreement on behalf of the Party for whom he or she is signing.
The Mayor or delegated representative further represents and warrants by their signature, that this
Agreement has been duly ratified and approved by the City Council.
Section 8.12 Successors and Assigns
This Agreement shall bind and inure to the benefit of successors and assigns of the Parties,
including successors in ownership of the Property and any portions thereof.
89
G-17
Section 8.13 Further Assurances
Each Party to this Agreement shall at its own expense perform all acts and execute all
documents and instruments that may be necessary or convenient to carry out its obligations under
this Agreement.
[Signatures on Following Page]
90
4867-9363-4824.12 G-18
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BN 78690258v5
IN WITNESS WHEREOF, this Agreement has been entered into among the Parties as of the
date first set forth above.
CITY:
CITY OF SOUTH SAN FRANCISCO
By:
Name:
Title:
Developer:
HCP FORBES, LLC,
a Delaware limited liability company
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name: ________________
City Attorney
By:
Name:
Title: ___________________________
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G-19
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EXHIBIT A
LEGAL DESCRIPTION AND MAP DEPICTION OF FIRE STATION PARCEL
92
G-20
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93
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EXHIBIT B
FORM OF GRANT DEED
[Attached below]
Recording Requested by
and when Recorded, return
to:
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103, 27383 &
27388.1(a)(2)
SUBJECT TO DOCUMENTARY
PER REVENUE AND TAXATION
CODE § 11911
APN: XXX-XXX-XXX (SPACE ABOVE THIS LINE RESERVED
FOR RECORDER’S USE)
GRANT DEED
RECITALS
A. HCP Forbes, LLC (“Grantor”) is the owner of the Property (as defined below).
B. The City of South San Francisco (“Grantee”) agrees to purchase the Property, and
Grantor agrees to sell the Property to Grantee, subject to the terms and conditions of the Fire
Station Agreement approved by the City Council on ______ _____, _______ by Ordinance No.
________________________; and
F. Grantor and Grantee agree that the purpose of this Grant Deed is to convey the
Property to the Grantee pursuant to the terms set forth in the Fire Station Agreement.
NOW THEREFORE, FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged, Grantor hereby grants to Grantee all that real property located in the City of South
San Francisco, County of San Mateo, State of California and more particularly described in Exhibit
A (“Property”), attached hereto and incorporated into this grant deed (“Grant Deed”) by this
reference.
This Grant Deed may be executed in counterparts, each of which shall be an original and
all of which taken together shall constitute one and the same instrument.
SIGNATURES ON FOLLOWING PAGES
94
BN 76588575v1 G-21
IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of
____________________, 2024.
GRANTOR:
HCP FORBES, LLC
By:
SIGNATURES MUST BE NOTARIZED
5531630.1
95
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-18 Agenda Date:1/24/2024
Version:1 Item #:4.
Report regarding a resolution authorizing the acceptance of $4,069.14 in funding from San Mateo County
Registration and Elections Division to support a 30-Day Vote Center at the Main Library,Library I Parks and
Recreation Center,for the March 5,2024 Presidential Primary Election and amending the Library Department’s
Fiscal Year 2023-24 Operating Budget via Budget Amendment Number 24.029.(Valerie Sommer,Library
Director)
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the acceptance of $4,069.14 in
funding from San Mateo County Registration and Elections Division (SMCo Elections)to support a 30-
Day Vote Center at the Main Library,Library I Parks and Recreation Center,for the March 5,2024
Presidential Primary Election and amending the Library Department’s Fiscal Year (FY)2023-24
Operating Budget via Budget Amendment Number 24.029.
BACKGROUND/DISCUSSION
From February 5,2024 through March 5,2024,South San Francisco Main Library,Library I Parks and
Recreation Center,second floor Community Room,will serve as a Vote Center for the upcoming March 5,2024
Presidential Primary Election.Although San Mateo County has gone to an all-mailed ballot election,Vote
Centers are still needed to assist those residents with ballot issues or to complete the voting process.Traditional
polling places have been replaced by Vote Centers.Voting Centers are open for voting for an extended period
and offer expanded voter services such as voter registration,multilingual assistance,and disabled access voting
options.This will be the tenth election for which the Library,partnering with the City Clerk,provides Vote
Center services.Establishment of accessible Vote Centers is an important factor in securing successful voter
turnout.Funding will support library staff scheduled on site around regular library hours and Peninsula Library
System Network setup costs.
FISCAL IMPACT
Funds received from SMCo Elections will be used to amend the Library Department’s FY 2023-24 Operating
Budget. Receipt of these funds does not commit the City to ongoing funding.
RELATIONSHIP TO STRATEGIC PLAN
Acceptance of this funding will contribute to the City’s Strategic Plan under Priority #6:Community
Connections, by providing a local vote site as a convenient option for local voters.
CONCLUSION
Receipt of these funds will support the 30-Day Early Vote Center at the Main Library for the March 5,2024
Presidential Primary Election.It is recommended that the City Council accept $4,069.14 in funding from SMCo
Elections and amend the Library Department’s FY 23-24 Operating Budget via Budget Amendment 24.029.
City of South San Francisco Printed on 1/19/2024Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-19 Agenda Date:1/24/2024
Version:1 Item #:4a.
Resolution authorizing the acceptance of $4,069.14 in funding from San Mateo County Registration and
Elections Division to support a 30-Day Vote Center at the Main Library,Library I Parks and Recreation Center,
for the March 5, 2024 Presidential Primary Election and approving Budget Amendment Number 24.029
WHEREAS,the City of South San Francisco (“City”)Strategic Plan includes a goal of creating community
connections under Priority #6; and
WHEREAS,the South San Francisco Main Library will serve as a 30-Day Vote Center for the upcoming March
5, 2024 Presidential Primary Election; and
WHEREAS,the San Mateo County Registration and Elections Division has awarded the City $4,069.14 in
funding to support the 30-Day Vote Center at the South San Francisco Main Library; and
WHEREAS,the Vote Center will be available to assist residents with ballot issues and will provide expanded
voter services, including voter registration, multilingual assistance, and disabled access to voting options; and
WHEREAS,this will be the tenth election for which the Library,partnering with the City Clerk,provides voter
services to help encourage a successful voter turnout; and
WHEREAS,Library staff recommends to accept funding in the amount of $4,069.14 from the San Mateo
County Registration and Elections Division to support a 30-Day Vote Center; and
WHEREAS,funds will be used to amend Fiscal Year (FY)2023-24 Operating Budget of the Library
Department via Budget Amendment Number 24.029.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby
accept $4,069.14 in funding from the San Mateo County Registration and Elections Division and approve
Budget Amendment Number 24.029 to amend the Library Department’s FY 2023-24 Operating Budget to
reflect an increase in both the revenue and appropriation.
*****
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File #:24-19 Agenda Date:1/24/2024
Version:1 Item #:4a.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1088 Agenda Date:1/24/2024
Version:1 Item #:5.
Report regarding a resolution approving the South San Francisco Fire Department’s annual inspections
performance pursuant to the California Health and Safety Code Section 13146.4. (Ian Hardage, Fire Marshal)
RECOMMENDATION
It is recommended that City Council adopt a resolution approving the South San Francisco Fire Department’s
annual inspections performance pursuant to the California Health and Safety Code Section 13146.4.
BACKGROUND/DISCUSSION
The California Health and Safety Code Section 13146.4 requires fire departments or districts that are providing
fire protection services to annually inspect buildings that are being used as public or private schools,hotels,
motels,lodging houses,and apartment houses.Additionally,fire departments are required to report to their City
Council annually,demonstrating their compliance with the mandatory annual inspections and that they
acknowledge receipt of the information by resolution.
The South San Francisco Fire Department maintains a comprehensive inspection program,working to ensure
that all occupancies within the City be inspected for fire and life safety code compliance on an annual or
biennial basis.The frequency of inspections is dependent upon the risks within a building.This allows staff to
provide enhanced fire safety behaviors throughout the community through interactive,risk-based inspections
and fire safety education to every business within the City.
While California state law requires only the reporting of public or private schools,hotels,motels,lodging
houses,and apartment houses,the South San Francisco Fire Department has elected to include data on
additional occupancies within the City that pose a risk.These occupancies include the following:places of
assembly,gas stations,auto repair facilities,laboratories,care facilities,hospitals and fire protection systems.
The report details occupancy types, number of occupancies, inspections conducted, and percentage completed.
Our City continues to develop at a rapid pace,placing an increased demand on the Fire Prevention Division to
conduct development and construction based services (i.e.plan reviews,meetings,inspections,etc.)impacting
the number of non-mandated businesses and facilities the division was able to inspect during this reporting
period.However,we are happy to report we again were able to complete all State mandated (SB 1205)Group E
and R Occupancy inspections.During the past year,the Fire Department was able to fill the previously vacant
Deputy Fire Marshal Position.This internal promotion along with attrition has resulted in multiple vacancies at
the Inspector rank level.The Fire Department is actively recruiting in hopes of being able to fill all current
vacancies in the division.We continue to monitor community demands and prioritize risks to provide the best
quality of service.
FISCAL IMPACT
There is no additional fiscal impact associated with adoption of this resolution.The resolution seeks to
communicate and acknowledge compliance with inspections mandated by state law.
RELATIONSHIP TO STRATEGIC PLAN
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File #:23-1088 Agenda Date:1/24/2024
Version:1 Item #:5.
This action supports priority area four regarding Public Safety.
CONCLUSION
California state law requires fire departments to review and report on annual state mandated occupancy
inspections within their jurisdictions.This allows the City Council an opportunity to evaluate Fire Prevention
performance.Adoption of the resolution ensures compliance with California Health and Safety Code Section
13146.4 and demonstrates the City’s commitment to improving public safety.
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EXHIBIT A
DATE: December 2023
SUBJECT: Annual Inspection Compliance Report to Fulfill California Health and Safety Code Section 13146.4.
Occupancy Type Total # of Occupancies Completed in FY 2022-2023 % Complete
Group E (Schools, public & private) 23 23 100%
Group R-1 (Hotels & Motels) 37 37 100%
Group R-2 (Apartment & Condominiums) 517 517 100%
Total E & R Occ. (Reportable) 577 577 100%
Group A (Restaurants, Places of Warship) 108 71 66%
Group B (Office, Professional Services) 543 129 24%
Group F (Industrial, Factory) 237 59 25%
Group H (Hazardous material) 1 1 100%
Group I (Hospitals, Day Care Facilities) 12 12 100%
Group L ( Labs, Bio-Tech, R&D) 165 15 9%
Group M (Stores, Markets) 79 13 16%
Group R-3.1 (Residential Care Facilities) 94 15 16%
Group S ( Auto Repair, Warehouses) 337 80 24%
Total Occupancy Inspections 1576 395 25%
Re-inspection Varies 346
Fire Protection Systems Inspections Varies 917
Misc Varies 1
Total Inspections
SOUTH SAN FRANCISCO FIRE DEPARTMENT
Inspection Compliance Report
South San Francisco Fire Department Annual Inspection Compliance Report
2236
101
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1089 Agenda Date:1/24/2024
Version:1 Item #:5a.
A Resolution approving the South San Francisco Fire Department’s annual inspections performance
pursuant to the California Health and Safety Code Section 13146.4.
Whereas,the California Health and Safety Code Section 13146.4 requires fire departments providing fire
protection services to annually inspect and report to City Council inspection status of buildings that are being
used as public or private schools, hotels, motels, lodging houses, and apartment houses; and
Whereas,the South San Francisco Fire Department maintains a comprehensive inspection program,working to
ensure that all occupancies within the City are inspected for fire and life safety on an annual or biennial basis;
and
Whereas,while California Health and Safety Code Section 13146.4 requires only the reporting of public or
private schools,hotels,motels,lodging houses,and apartment houses,the South San Francisco Fire Department
has elected to include data on additional occupancies within the City that pose a risk,including places of
assembly,gas stations,auto repair facilities,laboratories,care facilities,hospitals,and fire protection systems;
and
Whereas,the purpose of state law requires fire departments to review and report on annual state mandated
occupancy inspections within their jurisdictions,which allows the City Council an opportunity to evaluate Fire
Prevention performance; and
Whereas,the Fire Department Inspection Compliance Report,hereto attached as Exhibit A,ensures compliance
with California Health and Safety Code Section 13146.4 and demonstrates the City’s commitment to improving
public safety.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does
hereby approve the South San Francisco Fire Department’s annual inspections performance pursuant to the
California Health and Safety Code Section 13146.4.
*****
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-76 Agenda Date:1/24/2024
Version:1 Item #:6.
Report regarding a resolution authorizing submittal of an application for the Department of Resources
Recycling and Recovery funds allocated through the State of California in their fiscal year 2023-24 budget in
the amount of $16,427 to support beverage container recycling programs in South San Francisco and
authorizing the City’s fiscal year 2023-24 revenue budget adjustment upon receipt of funds pursuant to Budget
Amendment Number 24.031.(Marissa Garren, Management Analyst II)
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the submittal of an application
for the Department of Resources Recycling and Recovery (CalRecycle)funds allocated through the State
of California in their fiscal year 2023-24 budget in the amount of $16,427 to support beverage container
recycling programs in South San Francisco and authorizing the City’s fiscal year 2023-24 revenue budget
adjustment upon receipt of funds, pursuant to Budget Amendment Number 24.031.
BACKGROUND/DISCUSSION
The Department of Resources Recycling and Recovery (CalRecycle)offers the Beverage Container Recycling
City County Payment Program pursuant to Public Resources Code (PRC)Section 14581(a)(3)(A)of the
California Beverage Container Recycling and Litter Reduction Act.CalRecycle is distributing $10.5 million in
fiscal year (FY)2023-24 to eligible cities and counties specifically for beverage container recycling and litter
cleanup activities.The purpose of the beverage container recycling program is to reach and maintain an 80
percent recycling rate for all California Refund Value beverage containers -aluminum,glass,plastic,and bi-
metal.Projects implemented by cities and counties will assist in reaching and maintaining this goal.The
allocation amount per jurisdiction is based upon the population in the incorporated areas of a city as of January
1,2023 (Department of Finance E-1 Population Estimates for Cities,Counties and the State with Annual
Percent Change -January 1,2022 and 2023.Sacramento,California,May 2023).A requirement of the
application is a resolution adopted by City Council authorizing the project funding application.
Since 2005-06,the City of South San Francisco has taken advantage of this funding source to enhance its
support of recycling programs,such as the purchase of multi-stream waste receptacles for various areas of the
City,including the downtown area,Brentwood Shopping Center,city parks,and facilities.The City of South
San Francisco’s allocation for 2023-24 is $16,427,and the proposed application is to fund the installation of
additional Bigbelly dual-stream waste and recycling units and recycling education.The Bigbelly units include
solar-powered compaction,are sensor-equipped,and communicate real-time status to collection crews to enable
efficiencies.Cleanliness issues and safety issues,such as overflowing bins,litter,and pests will also be reduced
while improving the quality of life in public spaces.These units also include display windows on both sides,
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File #:24-76 Agenda Date:1/24/2024
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available to promote city programs, events, and messages.
FISCAL IMPACT
Funding received from CalRecycle’s Beverage Container Recycling City/County Payment Program will be
applied towards the installation of additional Bigbelly units and printed and digital outreach materials on proper
sorting of trash and recycling.No match funding or increase to the Public Works operating budget is required.
Adoption of this resolution will authorize the City’s Finance Department to amend the City’s revenue budget
for fiscal year 2023-24 upon receipt of funds, which will be distributed in June/July 2024.
RELATIONSHIP TO STRATEGIC PLAN
The CalRecycle funds support Strategic Plan Priority #2:Quality of Life to build and maintain a sustainable
city. This effort also contributes toward the City’s robust environmental and sustainability programs.
CONCLUSION
It is recommended that the City Council adopt a resolution authorizing the submittal of an application for the
Department of Resources Recycling and Recovery funds allocated through the State of California in their fiscal
year 2023-24 budget in the amount of $16,427 to support beverage container recycling programs in South San
Francisco and authorizing the City’s fiscal year 2023-24 revenue budget adjustment upon receipt of funds
pursuant to budget amendment 24.031.
**** *
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-77 Agenda Date:1/24/2024
Version:1 Item #:6a.
Resolution authorizing submittal of an application for Department of Resources Recycling and Recovery funds allocated
through the State of California in their fiscal year 2023-24 budget in the amount of $16,427 to support beverage container
recycling programs in South San Francisco and authorizing the finance director to adjust the City’s fiscal year 2023-24
revenue budget upon receipt of funds pursuant to Budget Amendment Number 24.031.
WHEREAS,pursuant to Public Resources Code sections 48000 et seq.,14581,and 42023.1(g),the Department of
Resources Recycling and Recovery (CalRecycle)has established various payment programs to make payments to
qualifying jurisdictions; and
WHEREAS,pursuant to Public Resources Code section 14581(a)(3)(A)of the California Beverage Container Recycling
and Litter Reduction Act,CalRecycle is distributing $10,500,000 in fiscal year (FY)2023-2024 to eligible cities and
counties for beverage container recycling and litter cleanup activities; and
WHEREAS,the purpose of the beverage container recycling program is to reach and maintain an 80 percent recycling
rate for all California Refund Value beverage containers -aluminum,glass,plastic,and bi-metal.Projects implemented by
cities and counties will assist in reaching and maintaining this goal; and
WHEREAS,in furtherance of this authority,CalRecycle is required to establish procedures governing the administration
of the payment programs; and
WHEREAS,CalRecycle’s procedures for administering payment programs require,among other things,an applicant’s
governing body to declare by resolution certain authorizations related to the administration of the payment program; and
WHEREAS,since 2005-06,the City of South San Francisco has utilized the CalRecycle funding source to enhance its
support of recycling programs,such as the purchase of multi-stream waste receptacles for various areas of the City,
including the downtown area, city parks, and green spaces; and
WHEREAS,funding received from CalRecycle’s Beverage Container Recycling City/County Payment Program is
expected to be applied towards printing of educational materials on proper sorting of trash and recycling,plus the
installation of additional dual-stream Bigbelly waste and recycling units that would enhance collection efficiency and
capacity for the City’s waste collection program and improve the quality of life in South San Francisco.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council
hereby authorizes the submission of an application to CalRecycle for any and all payment programs offered to support
beverage container recycling programs in South San Francisco.
BE IT FURTHER RESOLVED that the City Manager,or her designee,is hereby authorized as Signature Authority to
execute all documents necessary to implement and secure payment.
BE IT FURTHER RESOLVED that the City Council authorizes the Finance Director,or his/her designee,to adjust the
City’s fiscal year 2023-2024 revenue budget upon receipt of funds pursuant to Budget Amendment Number 24.031.
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BE IT FURTHER RESOLVED that this authorization is effective upon adoption unless and until rescinded by the City
Council.
*****
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1081 Agenda Date:1/24/2024
Version:1 Item #:7.
Report regarding a resolution approving the Annual Impact Fee and Sewer Capacity Charge Report for Fiscal
Year 2022-23.(Karen Chang, Director of Finance)
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving the Annual Impact Fee and Sewer
Capacity Charge Report for Fiscal Year 2022-23 and making findings regarding the continuing need for
unexpended balances of impact fees as of June 30, 2023 as required by the Mitigation Fee Act.
BACKGROUND/DISCUSSION
Under state law (Government Code Section 66000 et seq.),the City is authorized to collect fees from new
development to fund necessary improvements to public facilities to mitigate the impacts of that new
development.In Fiscal Year (FY)2022-23,the City administered 13 distinct impact fee and in-lieu fee programs
along with one (1)sewer capacity charge.These programs support new development’s share of certain capital
infrastructure projects.The impact fees charged are based upon a pro-rata share of estimated costs for
necessary public improvements.The sewer capacity charge is a cost recovery charge based on the
proportional benefit to the person or property being charged.It is associated with providing collection and
treatment capacity through the existing infrastructure available and future capital projects.
Government Code Section 66000 et seq.requires the City to review the status of collected impact fees and
sewer capacity charges annually.The impact fee and sewer capacity charge report for fiscal year ending June
30,2023 (“AB 1600 Report”)is provided as Exhibit A to the resolution associated with this staff report.The
table below is a summary of each fund’s ending balances as of June 30, 2023:
Fees and Charges Area Ending Balance
Bicycle and Pedestrian Impact Fee (1)Citywide $226,954
Childcare Impact Fee Citywide 14,107,544
Commercial Linkage Impact Fee (Affordable Housing)Citywide 15,028,387
Library Impact Fee Citywide 4,309
Park Construction Fee Citywide 10,048,248
Park Land Acquisition Fee Citywide 3,295,863
Public Arts In-Lieu Fee Citywide 142,886
Public Safety Impact Fee Citywide 2,083,802
Citywide Transportation Impact Fee Citywide 3,887,577
Oyster Point Interchange Impact Fee (2)Oyster Point 36,771
Park In-Lieu Fee Plan Area 2,442,361
Sewer Impact Fee Plan Area 5,275,564
Traffic Impact Fee (1)East of 101 17,525,894
Sewer Capacity Charges Plan Area 11,635,207
Total $85,741,367
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File #:23-1081 Agenda Date:1/24/2024
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Fees and Charges Area Ending BalanceBicycle and Pedestrian Impact Fee (1)Citywide $226,954Childcare Impact Fee Citywide 14,107,544Commercial Linkage Impact Fee (Affordable Housing)Citywide 15,028,387Library Impact Fee Citywide 4,309Park Construction Fee Citywide 10,048,248Park Land Acquisition Fee Citywide 3,295,863Public Arts In-Lieu Fee Citywide 142,886Public Safety Impact Fee Citywide 2,083,802
Citywide Transportation Impact Fee Citywide 3,887,577
Oyster Point Interchange Impact Fee (2)Oyster Point 36,771
Park In-Lieu Fee Plan Area 2,442,361
Sewer Impact Fee Plan Area 5,275,564
Traffic Impact Fee (1)East of 101 17,525,894
Sewer Capacity Charges Plan Area 11,635,207
Total $85,741,367
(1)The fees have been superseded by the Citywide Transportation Impact Fee through Resolution 120-2020 adopted in
October 2020. The fees are still in use for projects that received entitlements and are vested prior to November 22, 2020.
(2)The ending balance does not include a loan balance of $2,050,152 from the former Redevelopment Agency,which is now
the Successor Agency,for dollars advanced by the former RDA to complete the interchange before all impact fees had been
collected.
Aside from fund balances,under the requirements of AB 1600,the Report also needs to show the planned
projects for the upcoming fiscal year (FY 2023-24)using the various impact and in-lieu fees or sewer capacity
charges.This information can also be found in Exhibit A.The Report was also published on the City’s website
on December 28, 2023.
Report’s URL:
<https://www.ssf.net/departments/finance/financial-reports/development-impact-fee-reports/-fsiteid-1>
UNEXPENDED FUND(S) REMAINING FOR MORE THAN FIVE YEARS
One of the provisions in the State law regulating development fees is to regularly review funds collected and
held for more than five years and to make certain findings to continue to hold those funds. Given the multi-
year nature of the capital projects to be financed, it is expected that funds will be accumulated and used
based on the timing of construction. Below are the funds with unexpended collections remaining for more
than five years.
Bicycle & Pedestrian
Impact Fee Fund
Childcare Impact
Fee Fund
East of 101 Sewer
Impact Fee Fund
Beginning Fund Balance 7/1/2018 $ 926 $ 4,692,411 $ 2,838,901
Total Expenditures - 727,228 2,633,567
Unexpended Fees Subject to 5-year
limitation at 6/30/23
$ 926 $ 3,965,183 $ 205,334
Bicycle and Pedestrian Impact Fee Fund (Fund 822)
The unexpended funds are committed to Oyster Point & East Grand Corridor Improvement (tr1602).
Childcare Impact Fee Fund (Fund 830)
The unexpended funds are committed to two projects:
>West Orange Library Preschool Conversion Project (total cost ~$12-$15 mil)
The City has set a goal to create 100 new preschool spaces in the former main library building. Thousands of
young scholars would benefit from this project over the course of the building’s lifespan. Remodeling and
seismic retrofitting of the existing main library facility into a licensed preschool center is estimated to cost $15
million dollars. Conceptual design and cost estimates were completed in 2019 and escalated for cost increases
in 2022. The West Orange library has been relocated to the Civic Campus in Fall 2023.
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>Westborough Preschool (budgeted at $9 mil)
The City is constructing a new licensed preschool facility to serve the growing need in the Westborough
neighborhood.Childcare Impact Fees would fund the design and construction of a new facility,which the
Parks and Recreation Department would operate.Staff is projecting the site would serve 40 children;however,
design will confirm the size and scope of the building.
East of 101 Sewer Impact Fee Fund (Fund 810)
The unexpended funds of $205k are committed to the Water Quality Control Plant Pump Station #14 Upgrade
(budgeted at $4.3 mil).This project is identified in the East of 101 Sewer Master Plan to implement necessary
upgrades to the pump station to accommodate the new growth in “The Cove” area.
FISCAL IMPACT
This informational report is used to satisfy the annual reporting requirements.There is no financial impact
related to this report,as impact fee revenues and expenditures have already been approved as part of the
City’s budget.Reporting of this information satisfies the regulatory requirements for the City to continue to
impose impact fees on new development.
RELATIONSHIP TO STRATEGIC PLAN
Adoption of the resolution supports the City’s strategy on financial stability.
CONCLUSION
The City’s impact fee program has helped fund important City infrastructure to accommodate growth from
new development,which ultimately supports the City Council’s efforts to build better neighborhoods that can
integrate new development while preserving the City’s existing character.The information contained in this
report demonstrates the City’s current use of impact fee funds and the continued need for impact fee funding
per the requirements of Government Code Section 66000 et seq.
City of South San Francisco Printed on 1/19/2024Page 3 of 3
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Annual Impact Fee Report
For the City of South San Francisco
For Fiscal Year 2022-23
This report contains information on the City of South San Francisco’s development impact fees for the
Fiscal Year 2022-23. The annual reporting requirements are in Government Code section 66000 et seq.
Please note that this annual report is not a budget document but rather meets reporting requirements.
The report is not intended to provide a full picture of currently planned projects. It only reports project
information, revenues, and expenditures for the Fiscal Year 2022-23.
Government Code Section 66006 requires agencies to outline the status of development impact fees.
Government Code Section 66001 requires local agencies to submit five-year financial reports. The
annual report is available to the public within 180 days after the last day of the fiscal year. The report
is presented to the public agency (the City Council) at least 15 days after it is made available to the
public.
This report summarizes each of the development impact fee programs. Requirements under
Government Code Section 66006 are:
1. A brief description of the fee program.
2. The amount of the fee.
3. Beginning and ending balances of the fee program.
4. Amount of fees collected, interest earned, and transfers/loans.
5. An identification of each public improvement. The expenditures on each project. The total
percentage of the cost of the public improvement is funded with development impact fees.
6. A description of each interfund transfer or loan. The date the loan will be repaid, the rate of
interest, and a description of the public improvement.
7. The estimated date when projects will begin if enough revenues are available to construct the
project.
8. The number of refunds made to property owners.
This report also summarizes five-year reporting information for the Impact Fee programs as required
under Government Code Section 66001:
1. The purpose of the fee expenditure.
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2. The reasonable relationship between the fee and the purpose used.
3. All sources and amounts of funding anticipated to complete financing in incomplete
improvements.
4. The approximate dates on which the funding referred to in subparagraph (3) above are
deposited into the appropriate account or fund.
This report also contains information on the City of South San Francisco’s sewer capacity charges.
Government Code Section 66013 requires agencies to submit annual reports on the status of sewer
capacity charges. The public must have access to the report within 180 days after the last day of each
fiscal year. This report summarizes the following information for the sewer capacity charges:
1. A description of the charges deposited in the fund.
2. The beginning and ending balance of the fund and the interest earned from investment in
the fund.
3. The amount collected in that fiscal year.
4. An identification of all the following:
a. Each public improvement on which charges were expended and the amount of the
expenditure for each improvement, including the percentage of the total cost of the
public improvement that was funded with those charges if more than one source of
funding was used.
b. Each public improvement on which charges were expended was completed during
that fiscal year.
c. Each public improvement that is anticipated to be undertaken in the following fiscal
year.
5. A description of each interfund transfer or loan from the capital facilities fund, the date
the loan will be repaid, and the rate of interest. In the case of an interfund transfer, the report
identifies the public improvements on which the money is or will be expended.
More detailed information on the various fee programs is available. Nexus studies, master plans, capital
improvement programs, and budgets are all made public on the City's website.
The City does not earmark impact fees for any specific project as revenues come in. Nexus studies
outline capital improvement projects. Nexus studies examples may include future sewer infrastructure,
transportation infrastructure, and other capital facilities. This report is accurate as of the time of
publication. Any proposed plans are subject to change based on City Council action.
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TABLE OF CONTENTS
Citywide Impact Fee Program
Bicycle and Pedestrian Impact Fee Fund (Fund 822)
Overview and Required Findings ............................................................................ 5
Financial Reporting ................................................................................................. 6
Childcare Impact Fee Fund (Fund 830)
Overview and Required Findings ............................................................................ 7
Financial Reporting ................................................................................................. 8
Commercial Linkage Impact Fee (Fund 823)
Overview and Required Findings ............................................................................ 9
Financial Reporting ............................................................................................... 10
Library Impact Fee (Fund 824)
Overview and Required Findings .......................................................................... 11
Financial Reporting ............................................................................................... 12
Park Construction Fee (Fund 806)
Overview and Required Findings .......................................................................... 13
Financial Reporting ............................................................................................... 14
Park Land Acquisition Fee (Fund 805)
Overview and Required Findings .......................................................................... 15
Financial Reporting ............................................................................................... 16
Public Arts (Fund 827)
Overview and Required Findings .......................................................................... 17
Financial Reporting ............................................................................................... 18
Public Safety Impact Fee Fund (Fund 821)
Overview and Required Findings .......................................................................... 19
Financial Reporting ............................................................................................... 20
Transportation Impact Fee (Fund 825)
Overview and Required Findings .......................................................................... 21
Financial Reporting ............................................................................................... 22
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Plan Area Impact Fee Programs
Oyster Point Interchange Impact Fee Fund (Fund 840)
Overview and Required Findings .......................................................................... 24
Financial Reporting ............................................................................................... 26
Park In-Lieu Fee (Funds 206 – 209)
Overview and Required Findings .......................................................................... 27
Financial Reporting ............................................................................................... 28
East of 101 Sewer Impact Fee Fund (Fund 810)
Overview and Required Findings .......................................................................... 29
Financial Reporting ............................................................................................... 30
East of 101 Traffic Impact Fee Fund (Fund 820)
Overview and Required Findings .......................................................................... 31
Financial Reporting ............................................................................................... 32
Other Reportable Citywide Charges
Sewer Capacity Charge Fund (Fund 730)
Overview and Required Findings .......................................................................... 34
Financial Reporting ............................................................................................... 35
Fee Schedules ....................................................................................................................... 36
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Bicycle and Pedestrian Impact Fee Program
The City Council adopted this nexus study for the citywide impact fee program in 2017. The study
identified the need to support the Bicycle Master Plan adopted by the City in February 2011 by
Resolution 23-2011. The General Plan establishes that maintaining bicycle and pedestrian
infrastructure requires funding sources. The Bicycle Master Plan recommends the completion of the
City’s existing network of bicycle paths, lanes, and routes.
Annual Reporting Information:
1. The purpose of the Bicycle and Pedestrian Impact Fee Program is to establish funding for completion
of the City’s existing network of bicycle paths. Additional daily trips due to development projects place
more demands on bicycle and pedestrian infrastructures in the city.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the Bicycle and Pedestrian
Impact Fee.
3. Refer to page 6 of this report for the beginning and ending balance of the account for the Bicycle
and Pedestrian Impact Fee.
4. See page 6 of this report for Bicycle and Pedestrian Impact Fees collected, and interest earned.
5. There were no projects worked on during the Fiscal Year 2022-23 using the Bicycle and Pedestrian
Impact Fee funding.
6. The approximate date for funding and execution of projects will be determined, at the discretion of
the City Council, when adequate additional funds have accumulated.
7. There were no interfund transfers or loans.
8. There is no potential refund to property owners as available funds have been appropriated for future
projects.
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Bicycle and Pedestrian Impact Fee Program (Fund 822)
This citywide development impact fee program funds bicycle and pedestrian improvements.
Development projects generate additional daily trips that place more demands on bicycle and
pedestrian infrastructures in the city.
Beginning balance, July 1, 2022 $ 185,903
Additions
Bicycle and Pedestrian Impact Fees collected $ 38,844
Interest Earned 3,479
Unrealized gains/losses (1,272)
Total Additions $ 41,051
Total Disbursements -
Remaining balance as of June 30, 2023 $ 226,954
Projects Appropriated from prior Fiscal Years
Oyster Point & East Grand Corridor Improvement (tr1602) $ (156,915)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 70,039
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 50,347 $ 14,639 $ 50,901 $ 69,090 $ 41,051
2-Year Old funds 926 50,347 14,639 50,901 69,090
3-Year Old funds - 926 50,347 14,639 50,901
4-Year Old funds - - 926 50,347 14,639
5-Year Old funds - - - 926 50,347
Older than 5 Years old - - - - 926
Total Revenue Available $ 51,273 $ 65,912 $ 116,813 $ 185,903 $ 226,954
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Childcare Impact Fee Program
The City Council adopted the nexus study for this citywide impact fee program in 2001. The study
identified the need for new and expanded childcare facilities in the City. Updates since 2001 to this fee
program have included a periodic inflation change. The fee program includes a 5% administrative fee.
The estimated cost of the new and expanded facilities included in the nexus study totaled $43.9 million.
The nexus study identified new development’s share of the cost as 24.6% of the total new and expanded
facilities cost. Development impact fee revenue was estimated at $11.3 million, which includes
administrative costs of 5% of total fee revenue. Existing development’s share of the cost is $33.1
million (75.4% of new facilities) which must be funded with other funding sources. Other funding
sources may include the City’s General Fund, grants, developer contributions, and Community
Development Block Grants.
Annual Reporting Information:
1. The purpose of the Childcare Impact Fee Program is to provide new development’s share of
funding for new and expanded childcare facilities required at build-out of the City.
2. Refer to page 37 of this report for the fee schedule outlining the amount of the Childcare Impact
Fee.
3. Refer to page 8 of this report for the beginning and ending balance of the account for the
Childcare Impact Fee.
4. See page 8 of this report for the Childcare Impact Fees that have been collected, and interest
earned.
5. There was one project worked on during Fiscal Year 2022-23 using the Childcare Impact Fee
funding.
6. There are no projects planned for Fiscal Year 2023-24.
7. The approximate date for funding and constructing future facilities will be determined, at the
discretion of the City Council, when adequate additional funds for facility construction have
accumulated.
8. There were no interfund transfers or loans.
9. There is no potential refund to property owners as available funds have been appropriated for
future projects.
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Childcare Impact Fee (Fund 830)
This citywide development impact fee program funds new development’s fair share of new and
expanded childcare facilities to serve the City.
Beginning balance, July 1, 2022 $ 13,901,164
Additions
Child Care Impact Fees $ 542,089
Interest Earned 248,825
Unrealized Gains/Losses (91,734)
Total Additions $ 699,180
Disbursements % Fee Funded
City Administration $ 2,800 100%
Civic Campus Phase II (pf2103) 490,000 14%
Total Disbursements $ (492,800)
Remaining balance as of June 30, 2023 $ 14,107,544
Projects Appropriated from prior Fiscal Years
Design & construct new preschool facility (pf2101) $ 8,863,350
West Orange Library Preschool Project (pf2301) 4,000,000
$ (12,863,350)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 1,244,194
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 920,469 $ 665,458 $ 642,118 $ 7,215,136 $ 699,180
2-Year Old funds 1,295,310 920,469 665,458 642,118 7,215,136
3-Year Old funds 527,347 1,295,310 920,469 665,458 642,118
4-Year Old funds 387,646 527,347 1,295,310 920,469 665,458
5-Year Old funds 163,207 387,646 527,347 1,295,310 920,469
Older than 5 Years old 2,242,749 2,388,979 2,737,625 3,162,673 3,965,183
Total Revenue Available $ 5,536,728 $ 6,185,209 $ 6,788,327 $ 13,901,164 $ 14,107,544
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Commercial Linkage Fee Program
The nexus study for this citywide impact fee program was adopted by the City Council in 2018 by
Resolution 123-2018. The study justified the need to provide sufficient funding for affordable housing
and established a nexus between the need for affordable housing and the impacts of commercial
development within the City. The impact fee program supports the City of South San Francisco’s
adopted 2015-2023 Housing Element, which includes the goal of promoting the provision of housing
by both the private and public sectors for all income groups in the community.
Annual Reporting Information:
1. The purpose of the Commercial Linkage Impact Fee program is to provide funding for
affordable housing for employees who work in the City as a result of new commercial
development.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the Commercial
Linkage Impact Fee.
3. Refer to page 10 of this report for the beginning and ending balance of the account for the
Commercial Linkage Impact Fee.
4. See page 10 of this report for Commercial Linkage Impact Fees that have been collected and
interest earned.
5. There was no project worked on during FY 2022-23 using the Commercial Linkage Impact Fee
funding.
6. There are no projects planned for FY 2023-24.
7. The approximate date for funding and execution of projects will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There were no potential refunds to property owners.
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Commercial Linkage Impact Fee Program (Fund 823)
The Commercial Linkage Fee (CLF) Ordinance (No. 1560-2018) was adopted by the City Council on
August 22, 2018, establishing a fee on certain commercial development to generate local funding for
affordable housing.
Beginning balance, July 1, 2022 $ 8,914,100
Additions
Commerical Linkage Impact Fees $ 7,377,990
Unrealized Gains/Losses (66,410)
Interest Earned 187,576
Total Additions $ 7,499,156
Disbursements % Fee Funded
Payroll $ 1,810 100%
Professional Services and program 1,383,059 100%
Total Disbursements $ (1,384,869)
Remaining balance as of June 30, 2023 $ 15,028,387
Projects Appropriated from prior Fiscal Years
Disposition of city-owned firehouse site at 201 Baden Ave
and redevelopment of BMR units (1,025,000)
Remaining balance after planned projects $ 14,003,387
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ 4,957,461 $ 5,375,874 $ 3,077,684 $ 7,499,156
2-Year Old funds - - 4,835,751 5,375,874 3,077,684
3-Year Old funds - - - 460,542 4,451,547
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ 4,957,461 $ 10,211,625 $ 8,914,100 $ 15,028,387
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Library Impact Fee Program
The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1608-
2020 amended the Municipal Code to include Chapter 8.74 establishing the library impact fee. Based
upon the City’s projected population increase and current per capita usage of facilities and collections
materials, the City will need approximately 9,900 square feet of additional library space and 32,000
additional materials in circulation in order to maintain the current library service standard. The study
identified the need to better implement the goals of maintaining adequate service standards in the face
of the increase in library service demands. The study estimates that the total projected cost associated
with future residential and non-residential development through 2040 would be approximately $7.8
million.
Annual Reporting Information:
1. The Library Impact Fee is collected to provide new development’s share of funding for
additional library space and materials to maintain current library service standard.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 12 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 12 of this report for fees collected and interest earned.
5. There were no projects worked on during FY 2022-23 using the Library Impact Fee.
6. There are no projects planned for FY 2023-24.
7. The approximate date for funding and execution of projects will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Library Impact Fee (Fund 824)
This citywide development impact fee program funds new development’s fair share for additional
library space and materials to maintain current library service standard. Library Impact Fees for non-
residential developments went into effect on November 23, 2020. Library Impact Fees for residential
development went into effect on January 1, 2022.
Beginning balance, July 1, 2022 $ 674
Additions
Library Impact Fee $ 3,622
Unrealized Gains/Losses -
Interest Earned 13
Total Additions $ 3,635
Disbursements
Payroll -
Professional Services and program -
Total Disbursements -
Remaining balance as of June 30, 2023 $ 4,309
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 4,309
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ - $ - $ 674 $ 3,635
2-Year Old funds - - - - 674
3-Year Old funds - - - - -
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ - $ - $ 674 $ 4,309
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Park Construction Fee
The nexus study for this impact fee program was adopted by the City Council in 2017. Ordinance 1520-
2016 amended the Municipal Code to include Chapter 8.67 adopting the parkland acquisition fee and
park construction fee. The purpose of the Park Construction Fee is to provide funding for the
construction of park facilities and improvements. The General Plan, the Parks and Recreation Master
Plan, and the East of 101 Area Plan call for 3 acres of parkland and facilities per 1,000 new residents
and ½ an acre of parkland and facilities per 1,000 new employees. The City incurs the costs of
administering the fee program and preparing analyses and reports related to it.
Annual Reporting Information:
1. The purpose of the Park Construction Fee fund is to provide new development’s share of
funding developing new parks and recreation spaces at a rate of 3 acres per 1,000 new residents
in multifamily development projects and 0.5 acres per 1,000 new employees in commercial
development projects.
2. Refer to page 38 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 14 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 14 of this report for the number of fees collected and interest earned.
5. There were two projects that were worked on during FY 2022-23 using the Park Construction
Fee. Refer to page 14 of this report for identification of public improvements on which fees
were expended, the amount of expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with the fees.
6. There are no projects planned for FY 2023-24 using the Park Construction Fee.
7. The approximate date for further funding and developing park land and recreation facilities will
be determined, at the discretion of the City Council, when adequate additional funds have
accumulated.
8. There are no potential refunds to property owners.
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Park Construction Fee (Fund 806)
This citywide development impact fee program funds new development’s fair share for developing
new park and recreation spaces.
Beginning balance, July 1, 2022 $ 8,914,912
Additions
Park Construction Fees $ 1,182,963
Unrealized Gains/Losses -
Interest Earned 106,858
Total Additions $ 1,289,821
Disbursements % Fee Funded
Orange Park Sport Field Innovation (pk1402) $ 111,360 47%
Linden Park Project (pk2305) 45,125 48%
Total Disbursements $ (156,485)
Remaining balance as of June 30, 2023 $ 10,048,248
Projects Appropriated from prior Fiscal Years
Transit Village Park (pk 2101) $ 1,000,000
Linden Park Project (pk2305) 254,875
Orange Park Sports Field Renovation (pk1402) 718,942
Sellick Park Renovation Project (pk1803) 55,575
Buri Buri Field & Court Improvements (pk1804) 24,079
Avalon Parks Improvements pk (1805) 18,524
$ (2,071,995)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 7,976,253
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 2,112,813 $ 1,158,551 $ 3,069,717 $ 3,739,827 $ 1,289,821
2-Year Old funds 3,702 1,116,514 1,158,551 3,069,717 3,739,827
3-Year Old funds - - 1,116,514 1,158,551 3,069,717
4-Year Old funds - - 946,817 1,158,551
5-Year Old funds - - - - 790,332
Older than 5 Years old - - - - -
Total Revenue Available $ 2,116,515 $ 2,275,065 $ 5,344,782 $ 8,914,912 $ 10,048,248
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Park Land Acquisition Fee
The City Council adopted the nexus study for this impact fee program in 2017. Ordinance 1520 -2016
amended the Municipal Code to include Chapter 8.67, adopting the parkland acquisition fee and park
construction fee to generate funding for parks in South San Francisco. The General Plan, the Parks
and Recreation Master Plan, and the East of 101 Area Plan each lay out specific park requirements.
The current need is three acres of park land per one thousand future residents and one half of an acre
per one thousand new employees is the current need. This fee differs from the City’s Quimby Act fee
in Section 19.24.040 et seq of the Municipal Code. The Quimby Act allows for the imposition of land
dedication requirements and in-lieu fees for residential subdivisions. The Act does not apply to other
types of residential development projects or commercial development projects.
The Park Land Acquisition Fee is applied to residential and non-residential development projects to
support the demands for parks and recreation spaces generated by new residents of residential
development projects and new employees of non-residential development projects. The nexus study
calculated the fee for park land acquisition based on the number of residents generated by each new
type of residential unit and the number of employees per 1,000 square feet in non -residential
development projects. The City adopted the Park Land Acquisition Fee under the authority of the
Mitigation Fee Act.
Annual Reporting Information:
1. The purpose of the Park Land Acquisition Fee fund is to provide new development’s share of
funding for acquiring new parks and recreation spaces at a rate of 3 acres per 1,000 new
residents in multifamily development projects and 0.5 acres per 1,000 new employees in
commercial development projects.
2. Refer to page 38 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 16 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 16 of this report for fees collected and interest earned.
5. One project utilized the Park Land Acquisition Fee fund in FY 2022-23. Refer to page 16 of
this report for identification of public improvement on which fees were expended, the amount
of the expenditures on each improvement, including the total percentage of the cost of the public
improvement that was funded with the fees.
6. There are no projects planned for FY 2023-24 using the Park Land Acquisition Fee.
7. The approximate date for funding and acquiring park land will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Park Land Acquisition Fee (Fund 805)
This citywide development impact fee program funds new development’s fair share for acquiring new
park and recreation spaces.
Beginning balance, July 1, 2022 $ 3,230,072
Additions
Park Land Acquisition Fee $ 78,353
Unrealized Gains/Losses -
Interest Earned 35,416
Total Additions $ 113,769
Disbursements % Fee Funded
Payroll $ -
Linden Park Project (pk2305) 47,978 52%
Total Disbursements $ (47,978)
Remaining balance as of June 30, 2023 $ 3,295,863
Projects Appropriated from prior Fiscal Years
Transit Village Park (pk2101) $ 2,000,000
Linden Park Project (pk2305) 952,022
$ (2,952,022)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 343,841
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 311,271 $ 502,798 $ 771,214 $ 1,627,779 $ 113,769
2-Year Old funds 54,663 311,271 502,798 771,214 1,627,779
3-Year Old funds - 54,663 311,271 502,798 771,214
4-Year Old funds - - 18,490 311,271 502,798
5-Year Old funds - - - 17,010 280,303
Older than 5 Years old - - - - -
Total Revenue Available $ 365,934 $ 868,732 $ 1,603,773 $ 3,230,072 $ 3,295,863
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Public Arts In-Lieu Fee
In October 2020, the City Council passed ordinance number 1613-2020 creating the public art
requirement. The City is dedicated to improving infrastructure, economic development, and cultural
diversity through acquisition and exhibition of public art. The public art requirement applies to any
new non-residential development project and that it requires such projects to contribute public art with
a value of at least one percent (1%) the amount of construction costs. In lieu of contributing public art,
the public art requirement will allow for the payment of an in-lieu fee into a public art fund at the value
of half of one percent (0.5%) of the amount of construction costs.
Annual Reporting Information:
1. The Public Arts In-Lieu Fee is collected to provide cultural and artistic art to enhance the quality
of life for individuals living in, working in, and visiting the City.
2. Refer to page 38 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 18 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 18 of this report for fees collected and interest earned.
5. There were no projects during FY 2022-23 using the Public Arts In-Lieu Fee.
6. There are plans to purchase various art sculptures in FY 2023-24.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Public Arts In-Lieu Fee (Fund 827)
This citywide in-lieu fee funds cultural diversity through acquisition and exhibition of public art in the
City.
Beginning balance, July 1, 2022 $ -
Additions
In-Lieu Fees $ 142,109
Unrealized Gains/Losses -
Interest Earned 777
Total Additions $ 142,886
Disbursements
Payroll -
Total Disbursements -
Remaining balance as of June 30, 2023 $ 142,886
Projects Appropriated from prior Fiscal Years -
Planned Projects for Fiscal Year 2023-24
Purchase of various art sculptures $ (120,000)
Remaining balance after planned projects $ 22,886
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ - $ - $ - $ 142,886
2-Year Old funds - - - - -
3-Year Old funds - - - - -
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ - $ - $ - $ 142,886
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Public Safety Impact Fee Program
The City Council adopted the nexus study for this citywide impact fee program in 2012. The study
identified the need for new and expanded public safety capital facility and equipment to support new
development projects. This fee program also includes an annual inflation adjustment. The fee program
includes a 2% administrative fee. The estimated cost of the new and expanded public safety equipment
and facilities included in the nexus study totaled $40.4 million. The nexus study identified new
development’s share of the cost at $10.4 million (25.6% of the total new and expanded equipment and
facilities cost). Existing development’s share of the cost is $30.0 million (74.4% of new equipment
and facilities) which must be funded with other funding sources such as the City’s General Fund, grants,
or developer contributions.
Annual Reporting Information:
1. The Public Safety Impact Fee is collected to provide new development’s share of funding for
new and expanded public safety capital facility and equipment required at build out of the City.
2. Refer to page 39 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 20 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 20 of this report for fees collected and interest earned.
5. Two projects were worked on during FY 2022-23 using the Public Safety Impact Fee fund.
Refer to page 20 of this report for identification of public improvements on which fees were
expended, the amount of expenditures on each improvement, including the total percentage of
the cost of the public improvement that was funded with the fees.
6. There are no projects planned for FY 2023-24 using the Public Safety Impact Fee fund.
7. The approximate date for further funding and constructing facilities and procuring future
equipment identified in the nexus study will be determined when adequate additional funds
have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Public Safety Impact Fee (Fund 821)
This citywide development impact fee program funds new development’s fair share of new and
expanded capital facility and equipment to serve the City.
Beginning balance, July 1, 2022 $ 2,551,609
Additions
Impact Fees - Fire $ 232,435
Impact Fees - Police 186,678
Unrealized Gains/Losses (16,942)
Interest Earned 45,949
Total Additions $ 448,120
Disbursements % Fee Funded
Police Ops & 911 Dispatch Center (pf2208) $ 149,723 100%
Training Tower maintenance (pf1704) 1,662 26%
Equipment purchases 727,470 100%
Prior Year Balance Adjustment 37,072
Total Disbursements $ (915,927)
Remaining balance as of June 30, 2023 $ 2,083,802
Projects Appropriated from prior Fiscal Years
Training Towner Maintenance (pf1704) $ 359,763
Fire Station 64 Dorm and Bathroom Remodel (pf1805) 17,472
Police Ops and 911 Dispatch Ctr (PSIF) (pf2208) 281,536
$ (658,771)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 1,425,031
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 479,101 $ 479,419 $ 246,467 $ 1,681,422 $ 448,120
2-Year Old funds 822,129 479,101 479,419 246,467 1,635,682
3-Year Old funds - 438,152 479,101 479,419 -
4-Year Old funds - - 294,400 144,301 -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ 1,301,230 $ 1,396,672 $ 1,499,387 $ 2,551,609 $ 2,083,802
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Transportation Impact Fee Program
The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1607-
2020 amended the Municipal Code to include Chapter 8.68 establishing the transportation impact fee.
The nexus study identified the need for transportation improvements and facilities needed to serve the
growth, and the estimated costs of those improvements and facilities. The nexus study has identified
$160.8 million in transportation infrastructure improvements such as roads, sidewalks, traffic lights,
bicycle lanes and pathways, curbs and gutters, and medians caused by new developments throughout
the City. The City seeks to mitigate these transportation impacts caused by new development and to
allow the City to recover approximately $33.7 million in costs associated with the new development
by providing for the payment of the citywide Transportation Impact fee.
Annual Reporting Information:
1. The Transportation Impact Fee is collected to provide new development’s share of funding for
new and expanded transportation capital facility and equipment required at build out of the City.
2. Refer to page 39 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 22 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 22 of this report for fees collected and interest earned.
5. One project was worked on during FY 2022-23 using the Transportation Impact Fee. Refer to
page 22 of this report for identification of public improvement on which fees were expended,
the amount of the expenditures on each improvement, including the total percentage of the cost
of the public improvement that was funded with the fees.
6. There are 15 projects planned for FY 2023-24.
7. The approximate date for funding and execution of projects will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Transportation Impact Fee (Fund 825)
This citywide development impact fee program funds new development’s fair share for transportation
improvements and facilities needed to serve the City. Transportation Impact Fees for non-residential
developments went into effect on November 23, 2020. Transportation Impact Fees for residential
development went into effect on January 1, 2022.
Beginning balance, July 1, 2022 $ 3,890,857
Additions
Impact Fees $ 8,036
Unrealized Gains/Losses (25,049)
Interest Earned 67,831
Total Additions $ 50,818
Disbursements % Fee Funded
Junipero Serra Westborough Blvd Corridor Feasibility Project
(st2301) $ 54,099 73%
Total Disbursements $ (54,099)
Remaining balance as of June 30, 2023 $ 3,887,577
Projects Appropriated from prior Fiscal Years
Bridge Preventive Maintenance Program (st1703) $ 14,911
Junipero Serra Westborough Corridor Feasibility
Study(st2301) 150,901
Oyster Point & East Grand Corridor Improvement (tr1602) 927,029
Grand Avenue Off-Ramp Realignment (tr2201) 3,220,000
East 101 Transit Shelter & Bulb Turnout-MTC (tr2203) 30,000
Right of Way Infrastructure Assessment & Upgrades (tr2302) 80,000
$ (4,422,841)
Planned Projects for Fiscal Year 2023-24
Street improvement at Elm Court, Hillside Blvd, Park Way
and Ponderosa Road (st2401) $ 1,000,000
Misc Traffic Improvements (tr2301) 300,000
Airport Blvd Bike/Pedestrian Gap Closure Study (tr2401) 300,000
El Camino Real Bike/Pedestrian Improvement (tr2402) 300,000
Traffic Signal Safety Improvement Project (tr2403) 500,000
Chestnut Ave & Commercial Ave Intersection Improvement
(tr2404) 300,000
Citywide School Traffic Calming Improvement (tr2405) 600,000
Traffic Studies and Grant Support (tr2406) 300,000
Bay Trail-Centennial Way Trail Gap Closure (tr2407) 100,000
Signalized Intersection Battery Backup System (tr2408) 2,000,000
Oyster Point Blvd Corridor Study (tr2409) 100,000
Spruce Ave Corridor Study (tr2410) 100,000
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Gateway Blvd Corridor Study (tr2411) 100,000
Forbes Blvd Corridor Study (tr2412) 100,000
El Camino @1st Street Centennial Trail Gap closure (tr2413) 200,000
$ (6,300,000)
Remaining balance after planned projects $ (6,835,265)
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ - $ 1,962,343 $ 1,928,514 $ 50,818
2-Year Old funds - - - 1,962,343 1,928,514
3-Year Old funds - - - - 1,908,245
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ - $ 1,962,343 $ 3,890,857 $ 3,887,577
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Oyster Point Interchange Impact Fee Program
The City Council adopted this plan area fee program on May 23, 1984, using a February 1983
Feasibility Study prepared by Nolte and Associates in conjunction with Resolution No. 71-84 which
created the “Oyster Point Contribution Formula.” The 1983 Feasibility Study identified the need for
the Oyster Point Interchange project, which was, at that time, referred to as the grade separation project.
Updates to the fee program since 1984 include the following:
1. An ongoing inflation adjustment.
2. June 26, 1996, fee program changes via Resolution No. 102-96 included adjustments for:
a. the inflationary index that reduced the fee by approximately 22%,
b. the project description which increased the scope of the project to include the Terrabay
hook ramps and the southbound off-ramp flyover, and the use of more current trip
generation rates.
3. October 9, 1996 fee program change via Resolution No. 152-96 that added additional land uses
with their associated trip generation rates.
The Feasibility Study identified new development’s share of the grade separation project cost at 64.8%
and existing development’s share of the cost at 35.2%. The grade separation was completed and funded
in 1995 and is not part of this annual report. The increased scope portion of the project, added in 1996,
was identified as being 100% the responsibility of new development. Of this additional scope, the
flyover, estimated to cost $6.4 million, was completed in 2005, and the hook ramps, estimated to cost
$15 million, were completed in October 2006. Additional work relating to property transfers and
gaining final Caltrans project acceptance is ongoing.
Annual Reporting Information
1. The purpose of the Oyster Point Interchange Impact Fee Program is to provide new
development’s share of funding for this project required at build-out of the plan area.
2. Refer to page 26 of this report for the beginning and ending balance of the account for this fee.
3. Refer to page 26 of this report for fees collected and interest earned.
4. The reasonable relationship between the Oyster Point interchange impact fee and the purpose
for which it is charged is demonstrated in the 1983 Feasibility Study by Nolte and Associates,
and in the fee program updates in Resolution No. 102-96 and Resolution No. 152-96. As of
June 30, 2023, there continues to be a need for Oyster Point Interchange Impact fees due to
further developments in that area of South San Francisco.
5. The sources and amounts of funding anticipated for Oyster Point Interchange projects can be
found in the updates adopted via Resolution No. 102-96 and Resolution No. 152-96. Additional
working relating to property transfers and gaining final Caltrans project acceptance is ongoing.
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6. Buildout in the Oyster Point Interchange area is ongoing due to further developments in South
San Francisco. The City’s buildout is assumed to occur over a 20-year period, which is
consistent with the General Plan.
7. No projects were worked on during FY 2022-23 using the Oyster Point Interchange Impact
Fees funds.
8. There are currently no planned projects for Oyster Point Interchange impact fees for FY 2023-
24.
9. The fund has one loan from the former Redevelopment Agency. Please refer to page 26 of this
report. The amount owed as of June 30, 2023, is approximately $2.05 million. Since the
dissolution of the Redevelopment Agency in 2012, the interest rate charged by the Successor
Agency is 0%. The loan is repaid as new impact fee revenue is received. Given that the amount
of future impact fee revenue is unknown, the repayment date is unknown. There were no other
interfund transfers or loans.
10. There are no potential refunds of Oyster Point Interchange Impact Fees to property owners.
11. Refer to page 40 of this report for the fee schedule outlining the amount of the Oyster Point
Interchange Impact Fee.
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Oyster Point Interchange Impact Fee (Fund 840)
This plan area development impact fee program funds new development’s fair share of the Oyster Point
Interchange project.
Beginning balance, July 1, 2022 $ 29,836
Additions
Impact Fees $ 105,913
Unrealized Gains/Losses (564)
Interest Earned 1,586
Total Additions $ 106,935
Disbursements
Repayment of RDA Loan $ 100,000
Total Disbursements $ (100,000)
Remaining balance as of June 30, 2023 $ 36,771
Projects Appropriated from prior Fiscal Years -
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 36,771
Loans to Oyster Point Interchange Fee Fund from
Successor Agency to RDA
Due Date and
Interest Rate
Outstanding Balance as of July 1, 2022 $ 2,150,152 None & 0%
Less: Payment during FY 2022-23 (100,000)
Outstanding Balance as of June 30, 2023 $ 2,050,152
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 72,256 $ 78,634 $ 75 $ 29,836 $ 36,771
2-Year Old funds - - 38,634 - -
3-Year Old funds - - - - -
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ 72,256 $ 78,634 $ 38,709 $ 29,836 $ 36,771
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Park In-Lieu Fee
City of South San Francisco Municipal Code, Title 19 Subdivisions, Chapter 19.24 Improvements
requires every subdivider who subdivides land to dedicate a portion of such land, pay a fee, or do both,
for the purpose of providing park and recreational facilities to serve future residents of such
subdivision. The in-lieu fee shall be determined using the formula set out in Chapter 19.24.090(a).
[Units in Structure x Average Residents per Unit x 0.003 (3 acres per 1,000 Residents) x Average Fair
Market Value per acre = in-lieu fee]. Fees shall be adjusted annually in accordance with the All Urban
Consumers, San Francisco-Oakland-San Jose (AUC-CPI); such annual adjustment shall be approved
by resolution of the City Council. In addition, the City may collect reasonable administrative fee to
cover the cost of administering the program.
Annual Reporting Information
1. The purpose of the Park in-lieu fee is to acquire land and develop new parks and recreation
facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community
parks, and recreational facilities.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 28 of this report for the beginning and ending balance of the account for this fee.
4. Refer to page 28 of this report for fees collected, and interest earned.
5. Three projects were worked on during FY 2022-23 using the Park In-Lieu Fee.
6. There are no planned projects for FY 2023-24 using the Park In-Lieu Fee.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds of Park In-Lieu Fees to property owners.
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Park In-Lieu Fee (Funds 206 – 209)
The Park In-Lieu fee may only be used for acquiring land and developing new park and recreation
facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community parks,
and recreational facilities.
Beginning balance, July 1, 2022 $ 2,959,482
Additions
Unrealized Gains/Losses $ (18,074)
Interest Earned 48,562
Total Additions $ 30,488
Disbursements % Fee Funded
Centennial Trail Improvements (pk2302) $ 404,038 100%
Centennial Trail Vision Plan (pk2103) 4,495 100%
Orange Park Sports Field Renovation (pk1402) 128,072 53%
Prior Year Balance Adjustment 11,004
Total Disbursements $ (547,609)
Remaining balance as of June 30, 2023 $ 2,442,361
Projects Appropriated from prior Fiscal Years
Orange Park Sports Field Renovation (pk1402) $ 22,149
Gardiner Park Playground Replacement(pk1806) 7,603
Hillside School Soccer Field Renovation (pk1807) 20,099
Centennial Trail Vision Plan(pf2103) 3,936
Centennial Trail Improvements(pk2302) 1,995,962
$ (2,049,749)
Total Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 392,612
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 1,334,811 $ 2,711,304 $ 8,479 $ (119,110) $ 30,488
2-Year Old funds 1,857 1,334,811 2,711,304 8,479 (119,110)
3-Year Old funds 876,288 1,857 1,131,120 2,711,304 8,479
4-Year Old funds 14,695 790,760 - 358,809 2,522,504
5-Year Old funds 10,543 - - - -
Older than 5 Years old 597,282 - - - -
Total Revenue Available $ 2,835,476 $ 4,838,732 $ 3,850,903 $ 2,959,482 $ 2,442,361
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East of 101 Sewer Impact Fee Program
The 2002 nexus study for this fee was adopted by the City Council in 2002. The study identified the
need for new and rehabilitated sewer collection and treatment facilities to serve the area located east of
US 101 in the City of South San Francisco. This fee program also includes an annual inflation
adjustment. The estimated cost of the 20 new and expanded sewer projects included in the study totaled
$21.4 million. The study identified new development’s share of the cost of the required facilities at
$15.5 million (72.4% of the total new and expanded facilities cost) while existing development’s share
of the cost (existing deficiency) is $5.9 million (27.6% of new facilities). New development’s share of
the cost, $15.5 million, was increased to include some master planning costs ($425,000) and some
CEQA reviewing costs ($600,000) for a total cost to new development of $16,425,000. Of that amount,
$12,429,000 was to be sewer impact fee funded and $4,066,000 was to be funded directly by developer
contributions. Of the twenty total projects listed in the nexus study, eleven projects are either fully or
partially funded with the sewer impact fee funds, four are existing development’s responsibility, four
are to be funded by developer contributions, and one is to be funded with a combination of developer
contributions and revenues from existing development. Existing development’s share will be funded
with the sewer charges appearing on property tax bills as a direct levy.
Annual Reporting Information
1. The purpose of the Sewer Impact Fee Program is to provide new development’s share of
funding for new and rehabilitated sewer collection and treatment facilities to serve the area
located east of US 101 at build-out of the plan area.
2. Refer to page 40 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 30 of this report for the beginning and ending balance of the account for this fee.
4. Refer to page 30 of this report for fees collected, and interest earned.
5. There were no projects worked on during FY 2022-23 using the Sewer Impact Fee.
6. There are two projects planned for FY 2023-24.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There is no potential refund of Sewer Impact Fees to property owners.
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East of 101 Sewer Impact Fee (Fund 810)
This plan area development impact fee program funds new development's fair share of new and
rehabilitated sewer collection and treatment facilities to serve the area located east of US 101 in the
City.
Beginning balance, July 1, 2022 $ 4,872,806
Additions
Impact Fees $ 350,946
Unrealized Gains/Losses (31,836)
Interest Earned 86,447
Total Additions $ 405,557
Disbursements % Fee Funded
City Administration $ 2,800 100%
Total Disbursements (2,800)
Remaining balance as of June 30, 2023 $ 5,275,564
Projects Appropriated from prior Fiscal Years
Pump Station #14 upgrade (ss1902) $ (4,300,000)
Planned Projects for Fiscal Year 2023-24
Oyster Point Sewer Upsize Project (ss2401) $ 100,000
Sewer Master Plan (ss1801) 45,000
Total Planned Projects for Fiscal Year 2023-24 $ (145,000)
Remaining balance after planned projects $ 830,564
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 1,881,711 $ 1,491,477 $ 452,369 $ 839,146 $ 405,557
2-Year Old funds 2,265,191 1,881,711 1,491,447 452,369 839,146
3-Year Old funds 188,815 2,034,651 1,881,711 1,491,447 452,369
4-Year Old funds 100,417 - 318,752 1,881,711 1,491,447
5-Year Old funds - - - 208,133 1,881,711
Older than 5 Years old - - - - 205,334
Total Revenue Available $ 4,436,134 $ 5,407,839 $ 4,144,279 $ 4,872,806 $ 5,275,564
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East of 101 Traffic Impact Fee Program
The 2001 nexus study for this plan area fee was adopted by the City Council in 2002. The study
identified the need for new and expanded roadway and intersection improvements to serve the area
located east of US 101 in the City of South San Francisco. The study was updated on May 6, 2005,
and on July 19, 2007. This fee program includes an annual inflation adjustment and a 2.5%
administrative fee. The estimated cost of the new and expanded facilities included in the 2007 study
totaled $38.5 million ($32.4 million in net cost after accounting for fees already received). There are
26 road improvements listed in the 2007 study and two studies for a total of 28 projects. The study
determined that new development would be responsible for 100% of the cost of the 28 projects.
The East of 101 Traffic Impact Fee has been superseded by the Citywide Transportation Impact Fee;
however, this fee is still in use for projects that received entitlements and are vested prior to November
22, 2020. Therefore, this impact fee will continue to receive annual adjustments along with the other
fees.
Annual Reporting Information
1. The purpose of the Traffic Impact Fee Program is to provide new development’s share of
funding for new and expanded roadway and intersection improvements to serve the area located
east of US 101 at build-out of the plan area.
2. See page 40 of this report for the fee schedule outlining the amount of the fee.
3. See page 32 & 33 of this report for beginning and ending balance of the account for this fee.
4. See page 32 & 33 of this report for fees collected and interest earned.
5. Eleven projects were worked on during FY 2022-23 using the Traffic Impact Fee.
6. There are no projects planned for FY 2023-24.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds of East of 101 Traffic Impact Fees to property owners.
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East of 101 Traffic Impact Fee (Fund 820)
This plan area development impact fee program funds new development's fair share of new and
expanded roadway and intersection improvements east of US 101 to serve the City of South San
Francisco.
Beginning balance, July 1, 2022 $ 20,870,700
Additions
Impact Fees $ 1,012,406
Unrealized Gains/Losses (133,616)
Interest Earned 359,764
Total Additions $ 1,238,554
Disbursements % Fee Funded
City Administration $ 2,800 100%
Colma Creek Oak Ave Pedestrian Bridge (sd2202) 19,924 100%
Grand Avenue Streetscape (st1801) 1,868,773 100%
Station to East Grand Bike Gap Closure (st2003) 993,241 100%
South Airport Blvd Improvement Project (st2004) 414,981 100%
Oyster Pt & E. Grand Corridor Improvement (tr1602) 73,271 100%
Adaptive Traffic Control System (tr1901) 116,186 100%
Hillside and Lincoln Traffic Signal (tr1906) 707,749 95%
Utah and Harbor Intersection Improvement (tr2101) 68,876 100%
DNA Way & Allerton Ave at E Grand Signal (tr2102) 264,412 100%
East of 101 Bicycle Safety Improvement (tr2104) 1,018 100%
East of 101 Transit Shelter& Bulb Turnout-MTC (tr2203) 52,129 100%
Total Disbursements $ (4,583,359)
Remaining balance as of June 30, 2023 $ 17,525,894
Projects Appropriated from prior Fiscal Years
Colma Creek Oak Ave Pedestrian Bridge (sd2202) $ 197,516
Grand Ave Streetscape (st1801) 2,639,815
Station to East Grand Bike Gap Closure (st2003) 86,886
South Airport Blvd Improvement Project (st2004) 33,376
South Airport Blvd/Utah Ave (tr1010) 245,243
Grand/East Grand(TIF#26) (tr1103) 254,631
US-101 Produce Ave Interchange (TIF#39) (tr1404) 2,890,000
Oyster Pt & East Grand Corridor Improvement (tr1602) 2,641,824
Adaptive Traffic Control System (tr1901) 1,714,134
East of 101 Traffic Signal IDEA Grant (tr1902) 129,383
Hillside and Lincoln Traffic Signal (tr1906) 544,973
Utah and Harbor Intersection Improvement (tr2101) 2,576,085
DNA way and Allerton Ave at E Grand Signal (tr2102) 63,015
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East of 101 Bicycle Safety Improvement (tr2104) 15,140
East 101 Transit Shelter & Bulb Turnout-MTC (tr2203) 173,252
$ (14,205,272)
Total Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 3,320,622
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 8,837,963 $ 5,058,500 $ 44,230 $ 4,275,208 $ 1,238,554
2-Year Old funds 5,716,072 8,837,963 5,058,500 44,230 4,275,208
3-Year Old funds 119,374 5,716,072 8,837,963 5,058,500 44,230
4-Year Old funds 1,745,975 119,374 5,716,072 8,837,963 5,058,500
5-Year Old funds 1,462,604 1,745,975 119,374 2,654,799 6,909,402
Older than 5 Years old 2,711,469 3,537,862 2,751,828 - -
Total Revenue Available $ 20,593,457 $ 25,015,746 $ 22,527,967 $ 20,870,700 $ 17,525,894
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Sewer Capacity Charge Program
The original analysis was adopted by the City Council in 2000 and annual updates included a preset
adjustment to the charges based on borrowing costs. The most current Sewer Capacity Charge Analysis
by Bartle Wells & Associates is dated August 26, 2009 and was adopted by the City Council in April
of 2010 to be effective in Fiscal Year 2010-11. This analysis identifies the need for sewer collection
and treatment capacity in the City of South San Francisco. There are two components to the Sewer
Capacity Charge: the capital assets valuation charge and the capital improvements charge. The capital
assets charge accounts for the existing value of the sewer collection and treatment system which is
calculated using the depreciated replacement cost of the system’s assets. The capital assets charge (also
called a “buy-in” fee) assigns a value to the benefit that new development receives from the availability
of sewer capacity (which existing development has maintained over the years through the sewer rates).
The total depreciated replacement value is $161.6 million, of which 37.2 percent is new development’s
fair-share, or $60.1 million. The second component is the charge for future improvements to the system
identified in the City’s Capital Improvement Program. The total cost of these future improvements is
$84.6 million, the fair-share allocation to new development is 37.2 percent of that amount, or $29.8
million. The total fair-share is $90 million. These funds may be used for capital improvements to
maintain capacity in the system.
Annual Reporting Information:
1. Refer to page 35 of this report for the beginning and ending balance of the account for the sewer
capacity fund, the amount of charges collected, and the interest earned from investment of
money in the fund.
2. No projects were worked on during FY 2022-23 using the sewer capacity charge program.
3. There are no projects planned for FY 2023-24.
4. The sewer capacity charges do not exceed the estimated reasonable costs of providing the
facilities for which the fee is charged (see Cal. Gov. Code § 66013, subd. (a)).
5. The sewer capacity charge’s accounting and reporting requirements are being met, i.e., the
revenues are kept in a separate fund and the City provides annual reports on the use of the funds
collected (see Cal. Gov. Code §§ 66013, subds. (c) and (d)).
6. There were not any interfund transfers or loans.
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Sewer Capacity Charges (Fund 730)
This fee program funds the cost associated with providing collection and treatment capacity to new
development, both through the existing infrastructure provided, and through future capital projects not
funded by other sources.
Beginning balance, July 1, 2022 $ 10,408,664
Additions
Impact Fees $ 1,107,479
Unrealized Gains/Losses (70,852)
Interest Earned 192,716
Total Additions $ 1,229,343
Disbursements % Fee Funded
City Administration $ 2,800 100%
Total Disbursements $ (2,800)
Remaining balance as of June 30, 2023 $ 11,635,207
Projects Appropriated from prior Fiscal Years -
Planned Projects for Fiscal Year 2023-24 -
Total Planned Projects for Fiscal Year 2023-24 $ 11,635,207
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 3,187,257 $ 2,297,395 $ 1,916,350 $ 2,832,407 $ 1,229,343
2-Year Old funds 5,565,334 3,187,257 2,297,395 1,916,350 2,832,407
3-Year Old funds 1,635,518 2,665,095 3,512,384 2,297,395 1,916,350
4-Year Old funds 1,777,053 - - 3,362,512 2,297,395
5-Year Old funds 158,396 - - - 3,359,712
Older than 5 Years old - - - - -
Total Revenue Available $ 12,323,558 $ 8,149,747 $ 7,726,129 $ 10,408,664 $ 11,635,207
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Bicycle and Pedestrian Impact Fee for Fiscal Year 2022-23
Land Use Cost per Unit or 1,000 Square Feet
(SQFT)
Residential
Single-Family $243 per unit
Multi-Family $170 per unit
Mobile Home $127 per unit
Commercial/Industrial
Commercial / Retail $.36 per SQFT
Hotel / Visitor Services $.24 / visitor SF
Office / R&D $.09 per SQFT
Industrial $.12 per SQFT
Commercial Linkage Impact Fee Rates for Fiscal Year 2022-23
Gross Square Feet Commercial Floor Area Minus Existing Floor Area × Current Fee Amount for
Applicable Land use Category where the Land Use Fee is:
$5.80 per sf for hotel
$2.90 per sf for restaurant and retail
$17.38 per sf for office and R&D
Library Impact Fee Rates for Fiscal Year 2022-23
Land Use Cost per Unit or 1,000 Square Feet
(SQFT)
Residential
Up to 8 du / ac $828.68 per unit
8.1-18 du / ac $725.39 per unit
18 + du / ac $617.30 per unit
Commercial/Industrial
Commercial / Retail $.08 per SQFT
Hotel / Visitor Services $.04 / visitor SF
Office / R&D $.14 per SQFT
Industrial $.05 per SQFT
Park In-Lieu Fee for Fiscal Year 2022-23
The Park In-Lieu Fee shall be determined using the formula set out in Chapter 19.24.090(a).
[Units in Structure x Average Residents per Unit x 0.003 (3 acres per 1,000 Residents) x Average Fair
Market Value per acre = in-lieu fee]
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Childcare Impact Fee Rates for Fiscal Year 2022-23
Land Use per Unit or per Gross Sq. Ft. (GSF)
Residential
Up to 8 du / ac $4,139.91 per unit
8.1-18 du / ac $3,625.54 per unit
18 + du / ac $3,086.51 per unit
Residential – Applications Deemed Complete
before 1/1/2022
Up to 8 du / ac $2,365.50
8.1-18 du / ac $2,220.87
18 + du / ac $2,212.51
Commercial/Industrial
Commercial / Retail $0.81 per GSF
Hotel / Visitor Services $0.30 per GSF
Office / R&D $1.51 per GSF
Industrial $0.60 per GSF
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Park Land Acquisition Fee for Fiscal Year 2022-23
Land Use per Unit
Residential
Single-Family $3,124.80 per unit
Duplex to Four-plex $2,699.55 per unit
5 to 19 $2,292.15 per unit
20 to 49 $1,846.95 per unit
50+ $1,611.75 per unit
Mobile Home $2,400.30 per unit
Park Construction Fee for Fiscal Year 2022-23
Land Use per Unit
Residential
Single-Family $31,254.78 per unit
Duplex to Four-plex $26,997.11 per unit
5 to 19 $22,919.93 per unit
20 to 49 $18,481.77 per unit
50+ $16,125.83 per unit
Park Land Acquisition/Construction Fee for Non-Residential for Fiscal Year 2022-23
Commercial/Industrial
Commercial / Retail $1.51 per SQFT
Hotel / Visitor Services $1.44 per SQFT
Office / R&D $3.54 per SQFT
Industrial $1.68 per SQFT
Public Arts In-Lieu Fees Fiscal Year 2022-23
Every non-residential development project shall provide qualifying public art with a value equal to
not less than 1% of construction costs for acquisition and installation of public art on the
development site. A non-residential development project may elect to make a public art contribution
payment in an amount not less than 0.5% of construction costs into the public art fund, in lieu of
acquisition and installation of public art on the development project site.
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Public Safety Impact Fee Rates for Fiscal Year 2022-23
Land Use per Unit or per Square Foot (SF)
Residential
Up to 8 du / ac $1,657.88 per unit
8.1-18 du / ac $1,451.10 per unit
18 + du / ac $1,234.75 per unit
Commercial/Industrial
Commercial / Retail $0.53 per SF
Hotel / Visitor $0.31 per SF
Office / R&D $1.31 per SF
Industrial $0.48 per SF
Transportation Impact Fee for Fiscal Year 2022-23
Land Use per Unit or 1,000 Square Feet (SQFT)
Residential
Single-Family $8,036.27 per unit
Multi-Family $4,631.01 per unit
Commercial/Industrial
Commercial / Retail
Office/ R&D
Industrial
$30.69/ SQFT
$34.85/ SQFT
$15.72/ SQFT
Hotel $2,929.29/ room
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Oyster Point Interchange Impact Fee Rates for Fiscal Year 2022-23
The impact fee is calculated by multiplying the number of vehicle trips by $154 and by the percentage
increase in the Construction Cost Index (CCI) as published in the Engineering News-Record (ENR)
from the date of adoption, when the CCI was 6,552.16, to the current effective CCI.
Vehicle Trips are based on average daily traffic (ADT). The rates shown below are based on 1,000
gross square feet of land use.
The ENR CCI published in May is used to calculate monthly increases. The CCI for May 2021 and
2022 were 13,425.35 and 15,326.99, respectively, resulting in a percentage increase of 14.16%
Land Use ADT Trip Rate per 1,000 GSF
General Industrial 5.46
Manufacturing 3.99
Warehousing 4.50
Hotel 10.50
General Office Building 12.30
Research & Development (R&D) 5.30
Restaurant (Dinner House/High Turn-over) 56.30 / 164.40
General Commercial 48
OPI Impact Fee: = (Development Area, SF /1000 SF) x ($154.00) x (Monthly ENR-CCI) / (6,552.16)
Sewer Impact Fee Rates for Fiscal Year 2022-23
The generation rate for all land use is 400 gallons per day per 1,000 square feet of building area.
New Sewer Impact Fee = ($6.40/Gallon) x (1.0475) = ($6.70/Gallon)
Traffic Impact Fee Rates for Fiscal Year 2022-23 (East of 101*)
Area of Building x Land Use Fee where the Land Use Fee is:
R&D/office = $7.60 per building sq. ft.
Hotel = $1,771.92 per room
Commercial/retail = $31.55 per building sq. ft.
* The East of 101 Traffic Impact Fee has been superseded by the Citywide Transportation Impact Fee;
however, this fee is still in use for projects that received entitlements and are vested prior to November
22, 2020. Therefore, this impact fee will continue to receive annual adjustments along with the other
fees.
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Sewer Capacity Charge for Fiscal Year 2022-23
The fee is updated each calendar year. The fee is currently $5,810 per EDU. An EDU, or Equivalent
Dwelling Unit, is the amount and strength of sewage equivalent to that discharged by a single-family
residence. EDU = (0.00347 x Q) + (0.362 x BOD) + (0.589 x TSS). Q = gallons per day of sewage
to be discharged; BOD = pounds per day of biochemical oxygen demand to be discharged; TSS =
pounds per day of total suspended solids to be discharged.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1085 Agenda Date:1/24/2024
Version:1 Item #:7a.
Resolution approving the Annual Impact Fee and Sewer Capacity Charge Report for Fiscal Year 2022-23.
WHEREAS,WHEREAS,pursuant to the Mitigation Fee Act (Government Code Section 66000 et seq.),the
City is required to annually report certain information regarding the collection of development impact fees; and
WHEREAS,under the Mitigation Fee Act,the City is also required to make certain findings every five (5)
years regarding unexpended impact fees and summarize those findings in the annual report (“Report”); and
WHEREAS,staff has reviewed the development impact fees collected through June 30,2018,to determine if
any such development fees still remain unexpended; and
WHEREAS,staff has found that development fees collected for this period remain unexpended and the city is
committed to use these unexpended amounts for construction of capital improvements as follows:
Bicycle and Pedestrian Impact Fees $ 926
Sewer Impact Fees 205,334
Childcare Impact Fees 3,965,183
Total Fees Subject to AB 1600 $ 4,171,443
WHEREAS,pursuant to Government Code section 66013,the City is also required to annually report certain
information in connection with the collection of Sewer Capacity Charges; and
WHEREAS,the Report for Fiscal Year 2022-23,attached hereto and incorporated herein as Exhibit A,contains
both the annual reporting information for the City’s development impact fee programs and a section with the
necessary annual information for Sewer Capacity Charges; and
WHEREAS,the Report has been available at City Hall for at least fifteen (15)days prior to this Council
meeting and was distributed to all Councilmembers in advance of said meeting.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco hereby
approves the Report for Fiscal Year 2022-23.
BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco hereby makes the
findings outlined in the Report for Fiscal Year 2022-23,attached hereto and incorporated herein as Exhibit A,asCity of South San Francisco Printed on 1/25/2024Page 1 of 2
powered by Legistar™151
File #:23-1085 Agenda Date:1/24/2024
Version:1 Item #:7a.
findings outlined in the Report for Fiscal Year 2022-23,attached hereto and incorporated herein as Exhibit A,as
required by Government Code Sections 66006.
*****
City of South San Francisco Printed on 1/25/2024Page 2 of 2
powered by Legistar™152
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Annual Impact Fee Report
For the City of South San Francisco
For Fiscal Year 2022-23
This report contains information on the City of South San Francisco’s development impact fees for the
Fiscal Year 2022-23. The annual reporting requirements are in Government Code section 66000 et seq.
Please note that this annual report is not a budget document but rather meets reporting requirements.
The report is not intended to provide a full picture of currently planned projects. It only reports project
information, revenues, and expenditures for the Fiscal Year 2022-23.
Government Code Section 66006 requires agencies to outline the status of development impact fees.
Government Code Section 66001 requires local agencies to submit five-year financial reports. The
annual report is available to the public within 180 days after the last day of the fiscal year. The report
is presented to the public agency (the City Council) at least 15 days after it is made available to the
public.
This report summarizes each of the development impact fee programs. Requirements under
Government Code Section 66006 are:
1. A brief description of the fee program.
2. The amount of the fee.
3. Beginning and ending balances of the fee program.
4. Amount of fees collected, interest earned, and transfers/loans.
5. An identification of each public improvement. The expenditures on each project. The total
percentage of the cost of the public improvement is funded with development impact fees.
6. A description of each interfund transfer or loan. The date the loan will be repaid, the rate of
interest, and a description of the public improvement.
7. The estimated date when projects will begin if enough revenues are available to construct the
project.
8. The number of refunds made to property owners.
This report also summarizes five-year reporting information for the Impact Fee programs as required
under Government Code Section 66001:
1. The purpose of the fee expenditure.
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2. The reasonable relationship between the fee and the purpose used.
3. All sources and amounts of funding anticipated to complete financing in incomplete
improvements.
4. The approximate dates on which the funding referred to in subparagraph (3) above are
deposited into the appropriate account or fund.
This report also contains information on the City of South San Francisco’s sewer capacity charges.
Government Code Section 66013 requires agencies to submit annual reports on the status of sewer
capacity charges. The public must have access to the report within 180 days after the last day of each
fiscal year. This report summarizes the following information for the sewer capacity charges:
1. A description of the charges deposited in the fund.
2. The beginning and ending balance of the fund and the interest earned from investment in
the fund.
3. The amount collected in that fiscal year.
4. An identification of all the following:
a. Each public improvement on which charges were expended and the amount of the
expenditure for each improvement, including the percentage of the total cost of the
public improvement that was funded with those charges if more than one source of
funding was used.
b. Each public improvement on which charges were expended was completed during
that fiscal year.
c. Each public improvement that is anticipated to be undertaken in the following fiscal
year.
5. A description of each interfund transfer or loan from the capital facilities fund, the date
the loan will be repaid, and the rate of interest. In the case of an interfund transfer, the report
identifies the public improvements on which the money is or will be expended.
More detailed information on the various fee programs is available. Nexus studies, master plans, capital
improvement programs, and budgets are all made public on the City's website.
The City does not earmark impact fees for any specific project as revenues come in. Nexus studies
outline capital improvement projects. Nexus studies examples may include future sewer infrastructure,
transportation infrastructure, and other capital facilities. This report is accurate as of the time of
publication. Any proposed plans are subject to change based on City Council action.
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TABLE OF CONTENTS
Citywide Impact Fee Program
Bicycle and Pedestrian Impact Fee Fund (Fund 822)
Overview and Required Findings ............................................................................ 5
Financial Reporting ................................................................................................. 6
Childcare Impact Fee Fund (Fund 830)
Overview and Required Findings ............................................................................ 7
Financial Reporting ................................................................................................. 8
Commercial Linkage Impact Fee (Fund 823)
Overview and Required Findings ............................................................................ 9
Financial Reporting ............................................................................................... 10
Library Impact Fee (Fund 824)
Overview and Required Findings .......................................................................... 11
Financial Reporting ............................................................................................... 12
Park Construction Fee (Fund 806)
Overview and Required Findings .......................................................................... 13
Financial Reporting ............................................................................................... 14
Park Land Acquisition Fee (Fund 805)
Overview and Required Findings .......................................................................... 15
Financial Reporting ............................................................................................... 16
Public Arts (Fund 827)
Overview and Required Findings .......................................................................... 17
Financial Reporting ............................................................................................... 18
Public Safety Impact Fee Fund (Fund 821)
Overview and Required Findings .......................................................................... 19
Financial Reporting ............................................................................................... 20
Transportation Impact Fee (Fund 825)
Overview and Required Findings .......................................................................... 21
Financial Reporting ............................................................................................... 22
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Plan Area Impact Fee Programs
Oyster Point Interchange Impact Fee Fund (Fund 840)
Overview and Required Findings .......................................................................... 24
Financial Reporting ............................................................................................... 26
Park In-Lieu Fee (Funds 206 – 209)
Overview and Required Findings .......................................................................... 27
Financial Reporting ............................................................................................... 28
East of 101 Sewer Impact Fee Fund (Fund 810)
Overview and Required Findings .......................................................................... 29
Financial Reporting ............................................................................................... 30
East of 101 Traffic Impact Fee Fund (Fund 820)
Overview and Required Findings .......................................................................... 31
Financial Reporting ............................................................................................... 32
Other Reportable Citywide Charges
Sewer Capacity Charge Fund (Fund 730)
Overview and Required Findings .......................................................................... 34
Financial Reporting ............................................................................................... 35
Fee Schedules ....................................................................................................................... 36
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Bicycle and Pedestrian Impact Fee Program
The City Council adopted this nexus study for the citywide impact fee program in 2017. The study
identified the need to support the Bicycle Master Plan adopted by the City in February 2011 by
Resolution 23-2011. The General Plan establishes that maintaining bicycle and pedestrian
infrastructure requires funding sources. The Bicycle Master Plan recommends the completion of the
City’s existing network of bicycle paths, lanes, and routes.
Annual Reporting Information:
1. The purpose of the Bicycle and Pedestrian Impact Fee Program is to establish funding for completion
of the City’s existing network of bicycle paths. Additional daily trips due to development projects place
more demands on bicycle and pedestrian infrastructures in the city.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the Bicycle and Pedestrian
Impact Fee.
3. Refer to page 6 of this report for the beginning and ending balance of the account for the Bicycle
and Pedestrian Impact Fee.
4. See page 6 of this report for Bicycle and Pedestrian Impact Fees collected, and interest earned.
5. There were no projects worked on during the Fiscal Year 2022-23 using the Bicycle and Pedestrian
Impact Fee funding.
6. The approximate date for funding and execution of projects will be determined, at the discretion of
the City Council, when adequate additional funds have accumulated.
7. There were no interfund transfers or loans.
8. There is no potential refund to property owners as available funds have been appropriated for future
projects.
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Bicycle and Pedestrian Impact Fee Program (Fund 822)
This citywide development impact fee program funds bicycle and pedestrian improvements.
Development projects generate additional daily trips that place more demands on bicycle and
pedestrian infrastructures in the city.
Beginning balance, July 1, 2022 $ 185,903
Additions
Bicycle and Pedestrian Impact Fees collected $ 38,844
Interest Earned 3,479
Unrealized gains/losses (1,272)
Total Additions $ 41,051
Total Disbursements -
Remaining balance as of June 30, 2023 $ 226,954
Projects Appropriated from prior Fiscal Years
Oyster Point & East Grand Corridor Improvement (tr1602) $ (156,915)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 70,039
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 50,347 $ 14,639 $ 50,901 $ 69,090 $ 41,051
2-Year Old funds 926 50,347 14,639 50,901 69,090
3-Year Old funds - 926 50,347 14,639 50,901
4-Year Old funds - - 926 50,347 14,639
5-Year Old funds - - - 926 50,347
Older than 5 Years old - - - - 926
Total Revenue Available $ 51,273 $ 65,912 $ 116,813 $ 185,903 $ 226,954
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Childcare Impact Fee Program
The City Council adopted the nexus study for this citywide impact fee program in 2001. The study
identified the need for new and expanded childcare facilities in the City. Updates since 2001 to this fee
program have included a periodic inflation change. The fee program includes a 5% administrative fee.
The estimated cost of the new and expanded facilities included in the nexus study totaled $43.9 million.
The nexus study identified new development’s share of the cost as 24.6% of the total new and expanded
facilities cost. Development impact fee revenue was estimated at $11.3 million, which includes
administrative costs of 5% of total fee revenue. Existing development’s share of the cost is $33.1
million (75.4% of new facilities) which must be funded with other funding sources. Other funding
sources may include the City’s General Fund, grants, developer contributions, and Community
Development Block Grants.
Annual Reporting Information:
1. The purpose of the Childcare Impact Fee Program is to provide new development’s share of
funding for new and expanded childcare facilities required at build-out of the City.
2. Refer to page 37 of this report for the fee schedule outlining the amount of the Childcare Impact
Fee.
3. Refer to page 8 of this report for the beginning and ending balance of the account for the
Childcare Impact Fee.
4. See page 8 of this report for the Childcare Impact Fees that have been collected, and interest
earned.
5. There was one project worked on during Fiscal Year 2022-23 using the Childcare Impact Fee
funding.
6. There are no projects planned for Fiscal Year 2023-24.
7. The approximate date for funding and constructing future facilities will be determined, at the
discretion of the City Council, when adequate additional funds for facility construction have
accumulated.
8. There were no interfund transfers or loans.
9. There is no potential refund to property owners as available funds have been appropriated for
future projects.
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Childcare Impact Fee (Fund 830)
This citywide development impact fee program funds new development’s fair share of new and
expanded childcare facilities to serve the City.
Beginning balance, July 1, 2022 $ 13,901,164
Additions
Child Care Impact Fees $ 542,089
Interest Earned 248,825
Unrealized Gains/Losses (91,734)
Total Additions $ 699,180
Disbursements % Fee Funded
City Administration $ 2,800 100%
Civic Campus Phase II (pf2103) 490,000 14%
Total Disbursements $ (492,800)
Remaining balance as of June 30, 2023 $ 14,107,544
Projects Appropriated from prior Fiscal Years
Design & construct new preschool facility (pf2101) $ 8,863,350
West Orange Library Preschool Project (pf2301) 4,000,000
$ (12,863,350)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 1,244,194
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 920,469 $ 665,458 $ 642,118 $ 7,215,136 $ 699,180
2-Year Old funds 1,295,310 920,469 665,458 642,118 7,215,136
3-Year Old funds 527,347 1,295,310 920,469 665,458 642,118
4-Year Old funds 387,646 527,347 1,295,310 920,469 665,458
5-Year Old funds 163,207 387,646 527,347 1,295,310 920,469
Older than 5 Years old 2,242,749 2,388,979 2,737,625 3,162,673 3,965,183
Total Revenue Available $ 5,536,728 $ 6,185,209 $ 6,788,327 $ 13,901,164 $ 14,107,544
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Commercial Linkage Fee Program
The nexus study for this citywide impact fee program was adopted by the City Council in 2018 by
Resolution 123-2018. The study justified the need to provide sufficient funding for affordable housing
and established a nexus between the need for affordable housing and the impacts of commercial
development within the City. The impact fee program supports the City of South San Francisco’s
adopted 2015-2023 Housing Element, which includes the goal of promoting the provision of housing
by both the private and public sectors for all income groups in the community.
Annual Reporting Information:
1. The purpose of the Commercial Linkage Impact Fee program is to provide funding for
affordable housing for employees who work in the City as a result of new commercial
development.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the Commercial
Linkage Impact Fee.
3. Refer to page 10 of this report for the beginning and ending balance of the account for the
Commercial Linkage Impact Fee.
4. See page 10 of this report for Commercial Linkage Impact Fees that have been collected and
interest earned.
5. There was no project worked on during FY 2022-23 using the Commercial Linkage Impact Fee
funding.
6. There are no projects planned for FY 2023-24.
7. The approximate date for funding and execution of projects will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There were no potential refunds to property owners.
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Commercial Linkage Impact Fee Program (Fund 823)
The Commercial Linkage Fee (CLF) Ordinance (No. 1560-2018) was adopted by the City Council on
August 22, 2018, establishing a fee on certain commercial development to generate local funding for
affordable housing.
Beginning balance, July 1, 2022 $ 8,914,100
Additions
Commerical Linkage Impact Fees $ 7,377,990
Unrealized Gains/Losses (66,410)
Interest Earned 187,576
Total Additions $ 7,499,156
Disbursements % Fee Funded
Payroll $ 1,810 100%
Professional Services and program 1,383,059 100%
Total Disbursements $ (1,384,869)
Remaining balance as of June 30, 2023 $ 15,028,387
Projects Appropriated from prior Fiscal Years
Disposition of city-owned firehouse site at 201 Baden Ave
and redevelopment of BMR units (1,025,000)
Remaining balance after planned projects $ 14,003,387
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ 4,957,461 $ 5,375,874 $ 3,077,684 $ 7,499,156
2-Year Old funds - - 4,835,751 5,375,874 3,077,684
3-Year Old funds - - - 460,542 4,451,547
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ 4,957,461 $ 10,211,625 $ 8,914,100 $ 15,028,387
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Library Impact Fee Program
The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1608-
2020 amended the Municipal Code to include Chapter 8.74 establishing the library impact fee. Based
upon the City’s projected population increase and current per capita usage of facilities and collections
materials, the City will need approximately 9,900 square feet of additional library space and 32,000
additional materials in circulation in order to maintain the current library service standard. The study
identified the need to better implement the goals of maintaining adequate service standards in the face
of the increase in library service demands. The study estimates that the total projected cost associated
with future residential and non-residential development through 2040 would be approximately $7.8
million.
Annual Reporting Information:
1. The Library Impact Fee is collected to provide new development’s share of funding for
additional library space and materials to maintain current library service standard.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 12 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 12 of this report for fees collected and interest earned.
5. There were no projects worked on during FY 2022-23 using the Library Impact Fee.
6. There are no projects planned for FY 2023-24.
7. The approximate date for funding and execution of projects will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Library Impact Fee (Fund 824)
This citywide development impact fee program funds new development’s fair share for additional
library space and materials to maintain current library service standard. Library Impact Fees for non-
residential developments went into effect on November 23, 2020. Library Impact Fees for residential
development went into effect on January 1, 2022.
Beginning balance, July 1, 2022 $ 674
Additions
Library Impact Fee $ 3,622
Unrealized Gains/Losses -
Interest Earned 13
Total Additions $ 3,635
Disbursements
Payroll -
Professional Services and program -
Total Disbursements -
Remaining balance as of June 30, 2023 $ 4,309
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 4,309
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ - $ - $ 674 $ 3,635
2-Year Old funds - - - - 674
3-Year Old funds - - - - -
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ - $ - $ 674 $ 4,309
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Park Construction Fee
The nexus study for this impact fee program was adopted by the City Council in 2017. Ordinance 1520-
2016 amended the Municipal Code to include Chapter 8.67 adopting the parkland acquisition fee and
park construction fee. The purpose of the Park Construction Fee is to provide funding for the
construction of park facilities and improvements. The General Plan, the Parks and Recreation Master
Plan, and the East of 101 Area Plan call for 3 acres of parkland and facilities per 1,000 new residents
and ½ an acre of parkland and facilities per 1,000 new employees. The City incurs the costs of
administering the fee program and preparing analyses and reports related to it.
Annual Reporting Information:
1. The purpose of the Park Construction Fee fund is to provide new development’s share of
funding developing new parks and recreation spaces at a rate of 3 acres per 1,000 new residents
in multifamily development projects and 0.5 acres per 1,000 new employees in commercial
development projects.
2. Refer to page 38 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 14 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 14 of this report for the number of fees collected and interest earned.
5. There were two projects that were worked on during FY 2022-23 using the Park Construction
Fee. Refer to page 14 of this report for identification of public improvements on which fees
were expended, the amount of expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with the fees.
6. There are no projects planned for FY 2023-24 using the Park Construction Fee.
7. The approximate date for further funding and developing park land and recreation facilities will
be determined, at the discretion of the City Council, when adequate additional funds have
accumulated.
8. There are no potential refunds to property owners.
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Park Construction Fee (Fund 806)
This citywide development impact fee program funds new development’s fair share for developing
new park and recreation spaces.
Beginning balance, July 1, 2022 $ 8,914,912
Additions
Park Construction Fees $ 1,182,963
Unrealized Gains/Losses -
Interest Earned 106,858
Total Additions $ 1,289,821
Disbursements % Fee Funded
Orange Park Sport Field Innovation (pk1402) $ 111,360 47%
Linden Park Project (pk2305) 45,125 48%
Total Disbursements $ (156,485)
Remaining balance as of June 30, 2023 $ 10,048,248
Projects Appropriated from prior Fiscal Years
Transit Village Park (pk 2101) $ 1,000,000
Linden Park Project (pk2305) 254,875
Orange Park Sports Field Renovation (pk1402) 718,942
Sellick Park Renovation Project (pk1803) 55,575
Buri Buri Field & Court Improvements (pk1804) 24,079
Avalon Parks Improvements pk (1805) 18,524
$ (2,071,995)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 7,976,253
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 2,112,813 $ 1,158,551 $ 3,069,717 $ 3,739,827 $ 1,289,821
2-Year Old funds 3,702 1,116,514 1,158,551 3,069,717 3,739,827
3-Year Old funds - - 1,116,514 1,158,551 3,069,717
4-Year Old funds - - 946,817 1,158,551
5-Year Old funds - - - - 790,332
Older than 5 Years old - - - - -
Total Revenue Available $ 2,116,515 $ 2,275,065 $ 5,344,782 $ 8,914,912 $ 10,048,248
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Park Land Acquisition Fee
The City Council adopted the nexus study for this impact fee program in 2017. Ordinance 1520 -2016
amended the Municipal Code to include Chapter 8.67, adopting the parkland acquisition fee and park
construction fee to generate funding for parks in South San Francisco. The General Plan, the Parks
and Recreation Master Plan, and the East of 101 Area Plan each lay out specific park requirements.
The current need is three acres of park land per one thousand future residents and one half of an acre
per one thousand new employees is the current need. This fee differs from the City’s Quimby Act fee
in Section 19.24.040 et seq of the Municipal Code. The Quimby Act allows for the imposition of land
dedication requirements and in-lieu fees for residential subdivisions. The Act does not apply to other
types of residential development projects or commercial development projects.
The Park Land Acquisition Fee is applied to residential and non-residential development projects to
support the demands for parks and recreation spaces generated by new residents of residential
development projects and new employees of non-residential development projects. The nexus study
calculated the fee for park land acquisition based on the number of residents generated by each new
type of residential unit and the number of employees per 1,000 square feet in non -residential
development projects. The City adopted the Park Land Acquisition Fee under the authority of the
Mitigation Fee Act.
Annual Reporting Information:
1. The purpose of the Park Land Acquisition Fee fund is to provide new development’s share of
funding for acquiring new parks and recreation spaces at a rate of 3 acres per 1,000 new
residents in multifamily development projects and 0.5 acres per 1,000 new employees in
commercial development projects.
2. Refer to page 38 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 16 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 16 of this report for fees collected and interest earned.
5. One project utilized the Park Land Acquisition Fee fund in FY 2022-23. Refer to page 16 of
this report for identification of public improvement on which fees were expended, the amount
of the expenditures on each improvement, including the total percentage of the cost of the public
improvement that was funded with the fees.
6. There are no projects planned for FY 2023-24 using the Park Land Acquisition Fee.
7. The approximate date for funding and acquiring park land will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Park Land Acquisition Fee (Fund 805)
This citywide development impact fee program funds new development’s fair share for acquiring new
park and recreation spaces.
Beginning balance, July 1, 2022 $ 3,230,072
Additions
Park Land Acquisition Fee $ 78,353
Unrealized Gains/Losses -
Interest Earned 35,416
Total Additions $ 113,769
Disbursements % Fee Funded
Payroll $ -
Linden Park Project (pk2305) 47,978 52%
Total Disbursements $ (47,978)
Remaining balance as of June 30, 2023 $ 3,295,863
Projects Appropriated from prior Fiscal Years
Transit Village Park (pk2101) $ 2,000,000
Linden Park Project (pk2305) 952,022
$ (2,952,022)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 343,841
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 311,271 $ 502,798 $ 771,214 $ 1,627,779 $ 113,769
2-Year Old funds 54,663 311,271 502,798 771,214 1,627,779
3-Year Old funds - 54,663 311,271 502,798 771,214
4-Year Old funds - - 18,490 311,271 502,798
5-Year Old funds - - - 17,010 280,303
Older than 5 Years old - - - - -
Total Revenue Available $ 365,934 $ 868,732 $ 1,603,773 $ 3,230,072 $ 3,295,863
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Public Arts In-Lieu Fee
In October 2020, the City Council passed ordinance number 1613-2020 creating the public art
requirement. The City is dedicated to improving infrastructure, economic development, and cultural
diversity through acquisition and exhibition of public art. The public art requirement applies to any
new non-residential development project and that it requires such projects to contribute public art with
a value of at least one percent (1%) the amount of construction costs. In lieu of contributing public art,
the public art requirement will allow for the payment of an in-lieu fee into a public art fund at the value
of half of one percent (0.5%) of the amount of construction costs.
Annual Reporting Information:
1. The Public Arts In-Lieu Fee is collected to provide cultural and artistic art to enhance the quality
of life for individuals living in, working in, and visiting the City.
2. Refer to page 38 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 18 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 18 of this report for fees collected and interest earned.
5. There were no projects during FY 2022-23 using the Public Arts In-Lieu Fee.
6. There are plans to purchase various art sculptures in FY 2023-24.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Public Arts In-Lieu Fee (Fund 827)
This citywide in-lieu fee funds cultural diversity through acquisition and exhibition of public art in the
City.
Beginning balance, July 1, 2022 $ -
Additions
In-Lieu Fees $ 142,109
Unrealized Gains/Losses -
Interest Earned 777
Total Additions $ 142,886
Disbursements
Payroll -
Total Disbursements -
Remaining balance as of June 30, 2023 $ 142,886
Projects Appropriated from prior Fiscal Years -
Planned Projects for Fiscal Year 2023-24
Purchase of various art sculptures $ (120,000)
Remaining balance after planned projects $ 22,886
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ - $ - $ - $ 142,886
2-Year Old funds - - - - -
3-Year Old funds - - - - -
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ - $ - $ - $ 142,886
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Public Safety Impact Fee Program
The City Council adopted the nexus study for this citywide impact fee program in 2012. The study
identified the need for new and expanded public safety capital facility and equipment to support new
development projects. This fee program also includes an annual inflation adjustment. The fee program
includes a 2% administrative fee. The estimated cost of the new and expanded public safety equipment
and facilities included in the nexus study totaled $40.4 million. The nexus study identified new
development’s share of the cost at $10.4 million (25.6% of the total new and expanded equipment and
facilities cost). Existing development’s share of the cost is $30.0 million (74.4% of new equipment
and facilities) which must be funded with other funding sources such as the City’s General Fund, grants,
or developer contributions.
Annual Reporting Information:
1. The Public Safety Impact Fee is collected to provide new development’s share of funding for
new and expanded public safety capital facility and equipment required at build out of the City.
2. Refer to page 39 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 20 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 20 of this report for fees collected and interest earned.
5. Two projects were worked on during FY 2022-23 using the Public Safety Impact Fee fund.
Refer to page 20 of this report for identification of public improvements on which fees were
expended, the amount of expenditures on each improvement, including the total percentage of
the cost of the public improvement that was funded with the fees.
6. There are no projects planned for FY 2023-24 using the Public Safety Impact Fee fund.
7. The approximate date for further funding and constructing facilities and procuring future
equipment identified in the nexus study will be determined when adequate additional funds
have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Public Safety Impact Fee (Fund 821)
This citywide development impact fee program funds new development’s fair share of new and
expanded capital facility and equipment to serve the City.
Beginning balance, July 1, 2022 $ 2,551,609
Additions
Impact Fees - Fire $ 232,435
Impact Fees - Police 186,678
Unrealized Gains/Losses (16,942)
Interest Earned 45,949
Total Additions $ 448,120
Disbursements % Fee Funded
Police Ops & 911 Dispatch Center (pf2208) $ 149,723 100%
Training Tower maintenance (pf1704) 1,662 26%
Equipment purchases 727,470 100%
Prior Year Balance Adjustment 37,072
Total Disbursements $ (915,927)
Remaining balance as of June 30, 2023 $ 2,083,802
Projects Appropriated from prior Fiscal Years
Training Towner Maintenance (pf1704) $ 359,763
Fire Station 64 Dorm and Bathroom Remodel (pf1805) 17,472
Police Ops and 911 Dispatch Ctr (PSIF) (pf2208) 281,536
$ (658,771)
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 1,425,031
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 479,101 $ 479,419 $ 246,467 $ 1,681,422 $ 448,120
2-Year Old funds 822,129 479,101 479,419 246,467 1,635,682
3-Year Old funds - 438,152 479,101 479,419 -
4-Year Old funds - - 294,400 144,301 -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ 1,301,230 $ 1,396,672 $ 1,499,387 $ 2,551,609 $ 2,083,802
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Transportation Impact Fee Program
The nexus study for this impact fee program was adopted by the City Council in 2020. Ordinance 1607-
2020 amended the Municipal Code to include Chapter 8.68 establishing the transportation impact fee.
The nexus study identified the need for transportation improvements and facilities needed to serve the
growth, and the estimated costs of those improvements and facilities. The nexus study has identified
$160.8 million in transportation infrastructure improvements such as roads, sidewalks, traffic lights,
bicycle lanes and pathways, curbs and gutters, and medians caused by new developments throughout
the City. The City seeks to mitigate these transportation impacts caused by new development and to
allow the City to recover approximately $33.7 million in costs associated with the new development
by providing for the payment of the citywide Transportation Impact fee.
Annual Reporting Information:
1. The Transportation Impact Fee is collected to provide new development’s share of funding for
new and expanded transportation capital facility and equipment required at build out of the City.
2. Refer to page 39 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 22 of this report for the beginning and ending balance for the account of this fee.
4. Refer to page 22 of this report for fees collected and interest earned.
5. One project was worked on during FY 2022-23 using the Transportation Impact Fee. Refer to
page 22 of this report for identification of public improvement on which fees were expended,
the amount of the expenditures on each improvement, including the total percentage of the cost
of the public improvement that was funded with the fees.
6. There are 15 projects planned for FY 2023-24.
7. The approximate date for funding and execution of projects will be determined, at the discretion
of the City Council, when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds to property owners.
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Transportation Impact Fee (Fund 825)
This citywide development impact fee program funds new development’s fair share for transportation
improvements and facilities needed to serve the City. Transportation Impact Fees for non-residential
developments went into effect on November 23, 2020. Transportation Impact Fees for residential
development went into effect on January 1, 2022.
Beginning balance, July 1, 2022 $ 3,890,857
Additions
Impact Fees $ 8,036
Unrealized Gains/Losses (25,049)
Interest Earned 67,831
Total Additions $ 50,818
Disbursements % Fee Funded
Junipero Serra Westborough Blvd Corridor Feasibility Project
(st2301) $ 54,099 73%
Total Disbursements $ (54,099)
Remaining balance as of June 30, 2023 $ 3,887,577
Projects Appropriated from prior Fiscal Years
Bridge Preventive Maintenance Program (st1703) $ 14,911
Junipero Serra Westborough Corridor Feasibility
Study(st2301) 150,901
Oyster Point & East Grand Corridor Improvement (tr1602) 927,029
Grand Avenue Off-Ramp Realignment (tr2201) 3,220,000
East 101 Transit Shelter & Bulb Turnout-MTC (tr2203) 30,000
Right of Way Infrastructure Assessment & Upgrades (tr2302) 80,000
$ (4,422,841)
Planned Projects for Fiscal Year 2023-24
Street improvement at Elm Court, Hillside Blvd, Park Way
and Ponderosa Road (st2401) $ 1,000,000
Misc Traffic Improvements (tr2301) 300,000
Airport Blvd Bike/Pedestrian Gap Closure Study (tr2401) 300,000
El Camino Real Bike/Pedestrian Improvement (tr2402) 300,000
Traffic Signal Safety Improvement Project (tr2403) 500,000
Chestnut Ave & Commercial Ave Intersection Improvement
(tr2404) 300,000
Citywide School Traffic Calming Improvement (tr2405) 600,000
Traffic Studies and Grant Support (tr2406) 300,000
Bay Trail-Centennial Way Trail Gap Closure (tr2407) 100,000
Signalized Intersection Battery Backup System (tr2408) 2,000,000
Oyster Point Blvd Corridor Study (tr2409) 100,000
Spruce Ave Corridor Study (tr2410) 100,000
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Gateway Blvd Corridor Study (tr2411) 100,000
Forbes Blvd Corridor Study (tr2412) 100,000
El Camino @1st Street Centennial Trail Gap closure (tr2413) 200,000
$ (6,300,000)
Remaining balance after planned projects $ (6,835,265)
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ - $ - $ 1,962,343 $ 1,928,514 $ 50,818
2-Year Old funds - - - 1,962,343 1,928,514
3-Year Old funds - - - - 1,908,245
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ - $ - $ 1,962,343 $ 3,890,857 $ 3,887,577
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Oyster Point Interchange Impact Fee Program
The City Council adopted this plan area fee program on May 23, 1984, using a February 1983
Feasibility Study prepared by Nolte and Associates in conjunction with Resolution No. 71-84 which
created the “Oyster Point Contribution Formula.” The 1983 Feasibility Study identified the need for
the Oyster Point Interchange project, which was, at that time, referred to as the grade separation project.
Updates to the fee program since 1984 include the following:
1. An ongoing inflation adjustment.
2. June 26, 1996, fee program changes via Resolution No. 102-96 included adjustments for:
a. the inflationary index that reduced the fee by approximately 22%,
b. the project description which increased the scope of the project to include the Terrabay
hook ramps and the southbound off-ramp flyover, and the use of more current trip
generation rates.
3. October 9, 1996 fee program change via Resolution No. 152-96 that added additional land uses
with their associated trip generation rates.
The Feasibility Study identified new development’s share of the grade separation project cost at 64.8%
and existing development’s share of the cost at 35.2%. The grade separation was completed and funded
in 1995 and is not part of this annual report. The increased scope portion of the project, added in 1996,
was identified as being 100% the responsibility of new development. Of this additional scope, the
flyover, estimated to cost $6.4 million, was completed in 2005, and the hook ramps, estimated to cost
$15 million, were completed in October 2006. Additional work relating to property transfers and
gaining final Caltrans project acceptance is ongoing.
Annual Reporting Information
1. The purpose of the Oyster Point Interchange Impact Fee Program is to provide new
development’s share of funding for this project required at build-out of the plan area.
2. Refer to page 26 of this report for the beginning and ending balance of the account for this fee.
3. Refer to page 26 of this report for fees collected and interest earned.
4. The reasonable relationship between the Oyster Point interchange impact fee and the purpose
for which it is charged is demonstrated in the 1983 Feasibility Study by Nolte and Associates,
and in the fee program updates in Resolution No. 102-96 and Resolution No. 152-96. As of
June 30, 2023, there continues to be a need for Oyster Point Interchange Impact fees due to
further developments in that area of South San Francisco.
5. The sources and amounts of funding anticipated for Oyster Point Interchange projects can be
found in the updates adopted via Resolution No. 102-96 and Resolution No. 152-96. Additional
working relating to property transfers and gaining final Caltrans project acceptance is ongoing.
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6. Buildout in the Oyster Point Interchange area is ongoing due to further developments in South
San Francisco. The City’s buildout is assumed to occur over a 20-year period, which is
consistent with the General Plan.
7. No projects were worked on during FY 2022-23 using the Oyster Point Interchange Impact
Fees funds.
8. There are currently no planned projects for Oyster Point Interchange impact fees for FY 2023-
24.
9. The fund has one loan from the former Redevelopment Agency. Please refer to page 26 of this
report. The amount owed as of June 30, 2023, is approximately $2.05 million. Since the
dissolution of the Redevelopment Agency in 2012, the interest rate charged by the Successor
Agency is 0%. The loan is repaid as new impact fee revenue is received. Given that the amount
of future impact fee revenue is unknown, the repayment date is unknown. There were no other
interfund transfers or loans.
10. There are no potential refunds of Oyster Point Interchange Impact Fees to property owners.
11. Refer to page 40 of this report for the fee schedule outlining the amount of the Oyster Point
Interchange Impact Fee.
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Oyster Point Interchange Impact Fee (Fund 840)
This plan area development impact fee program funds new development’s fair share of the Oyster Point
Interchange project.
Beginning balance, July 1, 2022 $ 29,836
Additions
Impact Fees $ 105,913
Unrealized Gains/Losses (564)
Interest Earned 1,586
Total Additions $ 106,935
Disbursements
Repayment of RDA Loan $ 100,000
Total Disbursements $ (100,000)
Remaining balance as of June 30, 2023 $ 36,771
Projects Appropriated from prior Fiscal Years -
Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 36,771
Loans to Oyster Point Interchange Fee Fund from
Successor Agency to RDA
Due Date and
Interest Rate
Outstanding Balance as of July 1, 2022 $ 2,150,152 None & 0%
Less: Payment during FY 2022-23 (100,000)
Outstanding Balance as of June 30, 2023 $ 2,050,152
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 72,256 $ 78,634 $ 75 $ 29,836 $ 36,771
2-Year Old funds - - 38,634 - -
3-Year Old funds - - - - -
4-Year Old funds - - - - -
5-Year Old funds - - - - -
Older than 5 Years old - - - - -
Total Revenue Available $ 72,256 $ 78,634 $ 38,709 $ 29,836 $ 36,771
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Park In-Lieu Fee
City of South San Francisco Municipal Code, Title 19 Subdivisions, Chapter 19.24 Improvements
requires every subdivider who subdivides land to dedicate a portion of such land, pay a fee, or do both,
for the purpose of providing park and recreational facilities to serve future residents of such
subdivision. The in-lieu fee shall be determined using the formula set out in Chapter 19.24.090(a).
[Units in Structure x Average Residents per Unit x 0.003 (3 acres per 1,000 Residents) x Average Fair
Market Value per acre = in-lieu fee]. Fees shall be adjusted annually in accordance with the All Urban
Consumers, San Francisco-Oakland-San Jose (AUC-CPI); such annual adjustment shall be approved
by resolution of the City Council. In addition, the City may collect reasonable administrative fee to
cover the cost of administering the program.
Annual Reporting Information
1. The purpose of the Park in-lieu fee is to acquire land and develop new parks and recreation
facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community
parks, and recreational facilities.
2. Refer to page 36 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 28 of this report for the beginning and ending balance of the account for this fee.
4. Refer to page 28 of this report for fees collected, and interest earned.
5. Three projects were worked on during FY 2022-23 using the Park In-Lieu Fee.
6. There are no planned projects for FY 2023-24 using the Park In-Lieu Fee.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds of Park In-Lieu Fees to property owners.
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Park In-Lieu Fee (Funds 206 – 209)
The Park In-Lieu fee may only be used for acquiring land and developing new park and recreation
facilities, or for the rehabilitation and enhancement of existing neighborhood parks, community parks,
and recreational facilities.
Beginning balance, July 1, 2022 $ 2,959,482
Additions
Unrealized Gains/Losses $ (18,074)
Interest Earned 48,562
Total Additions $ 30,488
Disbursements % Fee Funded
Centennial Trail Improvements (pk2302) $ 404,038 100%
Centennial Trail Vision Plan (pk2103) 4,495 100%
Orange Park Sports Field Renovation (pk1402) 128,072 53%
Prior Year Balance Adjustment 11,004
Total Disbursements $ (547,609)
Remaining balance as of June 30, 2023 $ 2,442,361
Projects Appropriated from prior Fiscal Years
Orange Park Sports Field Renovation (pk1402) $ 22,149
Gardiner Park Playground Replacement(pk1806) 7,603
Hillside School Soccer Field Renovation (pk1807) 20,099
Centennial Trail Vision Plan(pf2103) 3,936
Centennial Trail Improvements(pk2302) 1,995,962
$ (2,049,749)
Total Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 392,612
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 1,334,811 $ 2,711,304 $ 8,479 $ (119,110) $ 30,488
2-Year Old funds 1,857 1,334,811 2,711,304 8,479 (119,110)
3-Year Old funds 876,288 1,857 1,131,120 2,711,304 8,479
4-Year Old funds 14,695 790,760 - 358,809 2,522,504
5-Year Old funds 10,543 - - - -
Older than 5 Years old 597,282 - - - -
Total Revenue Available $ 2,835,476 $ 4,838,732 $ 3,850,903 $ 2,959,482 $ 2,442,361
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East of 101 Sewer Impact Fee Program
The 2002 nexus study for this fee was adopted by the City Council in 2002. The study identified the
need for new and rehabilitated sewer collection and treatment facilities to serve the area located east of
US 101 in the City of South San Francisco. This fee program also includes an annual inflation
adjustment. The estimated cost of the 20 new and expanded sewer projects included in the study totaled
$21.4 million. The study identified new development’s share of the cost of the required facilities at
$15.5 million (72.4% of the total new and expanded facilities cost) while existing development’s share
of the cost (existing deficiency) is $5.9 million (27.6% of new facilities). New development’s share of
the cost, $15.5 million, was increased to include some master planning costs ($425,000) and some
CEQA reviewing costs ($600,000) for a total cost to new development of $16,425,000. Of that amount,
$12,429,000 was to be sewer impact fee funded and $4,066,000 was to be funded directly by developer
contributions. Of the twenty total projects listed in the nexus study, eleven projects are either fully or
partially funded with the sewer impact fee funds, four are existing development’s responsibility, four
are to be funded by developer contributions, and one is to be funded with a combination of developer
contributions and revenues from existing development. Existing development’s share will be funded
with the sewer charges appearing on property tax bills as a direct levy.
Annual Reporting Information
1. The purpose of the Sewer Impact Fee Program is to provide new development’s share of
funding for new and rehabilitated sewer collection and treatment facilities to serve the area
located east of US 101 at build-out of the plan area.
2. Refer to page 40 of this report for the fee schedule outlining the amount of the fee.
3. Refer to page 30 of this report for the beginning and ending balance of the account for this fee.
4. Refer to page 30 of this report for fees collected, and interest earned.
5. There were no projects worked on during FY 2022-23 using the Sewer Impact Fee.
6. There are two projects planned for FY 2023-24.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There is no potential refund of Sewer Impact Fees to property owners.
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East of 101 Sewer Impact Fee (Fund 810)
This plan area development impact fee program funds new development's fair share of new and
rehabilitated sewer collection and treatment facilities to serve the area located east of US 101 in the
City.
Beginning balance, July 1, 2022 $ 4,872,806
Additions
Impact Fees $ 350,946
Unrealized Gains/Losses (31,836)
Interest Earned 86,447
Total Additions $ 405,557
Disbursements % Fee Funded
City Administration $ 2,800 100%
Total Disbursements (2,800)
Remaining balance as of June 30, 2023 $ 5,275,564
Projects Appropriated from prior Fiscal Years
Pump Station #14 upgrade (ss1902) $ (4,300,000)
Planned Projects for Fiscal Year 2023-24
Oyster Point Sewer Upsize Project (ss2401) $ 100,000
Sewer Master Plan (ss1801) 45,000
Total Planned Projects for Fiscal Year 2023-24 $ (145,000)
Remaining balance after planned projects $ 830,564
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 1,881,711 $ 1,491,477 $ 452,369 $ 839,146 $ 405,557
2-Year Old funds 2,265,191 1,881,711 1,491,447 452,369 839,146
3-Year Old funds 188,815 2,034,651 1,881,711 1,491,447 452,369
4-Year Old funds 100,417 - 318,752 1,881,711 1,491,447
5-Year Old funds - - - 208,133 1,881,711
Older than 5 Years old - - - - 205,334
Total Revenue Available $ 4,436,134 $ 5,407,839 $ 4,144,279 $ 4,872,806 $ 5,275,564
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East of 101 Traffic Impact Fee Program
The 2001 nexus study for this plan area fee was adopted by the City Council in 2002. The study
identified the need for new and expanded roadway and intersection improvements to serve the area
located east of US 101 in the City of South San Francisco. The study was updated on May 6, 2005,
and on July 19, 2007. This fee program includes an annual inflation adjustment and a 2.5%
administrative fee. The estimated cost of the new and expanded facilities included in the 2007 study
totaled $38.5 million ($32.4 million in net cost after accounting for fees already received). There are
26 road improvements listed in the 2007 study and two studies for a total of 28 projects. The study
determined that new development would be responsible for 100% of the cost of the 28 projects.
The East of 101 Traffic Impact Fee has been superseded by the Citywide Transportation Impact Fee;
however, this fee is still in use for projects that received entitlements and are vested prior to November
22, 2020. Therefore, this impact fee will continue to receive annual adjustments along with the other
fees.
Annual Reporting Information
1. The purpose of the Traffic Impact Fee Program is to provide new development’s share of
funding for new and expanded roadway and intersection improvements to serve the area located
east of US 101 at build-out of the plan area.
2. See page 40 of this report for the fee schedule outlining the amount of the fee.
3. See page 32 & 33 of this report for beginning and ending balance of the account for this fee.
4. See page 32 & 33 of this report for fees collected and interest earned.
5. Eleven projects were worked on during FY 2022-23 using the Traffic Impact Fee.
6. There are no projects planned for FY 2023-24.
7. The approximate date for further funding will be determined at the direction of the City Council
when adequate additional funds have accumulated.
8. There were no interfund transfers or loans.
9. There are no potential refunds of East of 101 Traffic Impact Fees to property owners.
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East of 101 Traffic Impact Fee (Fund 820)
This plan area development impact fee program funds new development's fair share of new and
expanded roadway and intersection improvements east of US 101 to serve the City of South San
Francisco.
Beginning balance, July 1, 2022 $ 20,870,700
Additions
Impact Fees $ 1,012,406
Unrealized Gains/Losses (133,616)
Interest Earned 359,764
Total Additions $ 1,238,554
Disbursements % Fee Funded
City Administration $ 2,800 100%
Colma Creek Oak Ave Pedestrian Bridge (sd2202) 19,924 100%
Grand Avenue Streetscape (st1801) 1,868,773 100%
Station to East Grand Bike Gap Closure (st2003) 993,241 100%
South Airport Blvd Improvement Project (st2004) 414,981 100%
Oyster Pt & E. Grand Corridor Improvement (tr1602) 73,271 100%
Adaptive Traffic Control System (tr1901) 116,186 100%
Hillside and Lincoln Traffic Signal (tr1906) 707,749 95%
Utah and Harbor Intersection Improvement (tr2101) 68,876 100%
DNA Way & Allerton Ave at E Grand Signal (tr2102) 264,412 100%
East of 101 Bicycle Safety Improvement (tr2104) 1,018 100%
East of 101 Transit Shelter& Bulb Turnout-MTC (tr2203) 52,129 100%
Total Disbursements $ (4,583,359)
Remaining balance as of June 30, 2023 $ 17,525,894
Projects Appropriated from prior Fiscal Years
Colma Creek Oak Ave Pedestrian Bridge (sd2202) $ 197,516
Grand Ave Streetscape (st1801) 2,639,815
Station to East Grand Bike Gap Closure (st2003) 86,886
South Airport Blvd Improvement Project (st2004) 33,376
South Airport Blvd/Utah Ave (tr1010) 245,243
Grand/East Grand(TIF#26) (tr1103) 254,631
US-101 Produce Ave Interchange (TIF#39) (tr1404) 2,890,000
Oyster Pt & East Grand Corridor Improvement (tr1602) 2,641,824
Adaptive Traffic Control System (tr1901) 1,714,134
East of 101 Traffic Signal IDEA Grant (tr1902) 129,383
Hillside and Lincoln Traffic Signal (tr1906) 544,973
Utah and Harbor Intersection Improvement (tr2101) 2,576,085
DNA way and Allerton Ave at E Grand Signal (tr2102) 63,015
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33
East of 101 Bicycle Safety Improvement (tr2104) 15,140
East 101 Transit Shelter & Bulb Turnout-MTC (tr2203) 173,252
$ (14,205,272)
Total Planned Projects for Fiscal Year 2023-24 -
Remaining balance after planned projects $ 3,320,622
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 8,837,963 $ 5,058,500 $ 44,230 $ 4,275,208 $ 1,238,554
2-Year Old funds 5,716,072 8,837,963 5,058,500 44,230 4,275,208
3-Year Old funds 119,374 5,716,072 8,837,963 5,058,500 44,230
4-Year Old funds 1,745,975 119,374 5,716,072 8,837,963 5,058,500
5-Year Old funds 1,462,604 1,745,975 119,374 2,654,799 6,909,402
Older than 5 Years old 2,711,469 3,537,862 2,751,828 - -
Total Revenue Available $ 20,593,457 $ 25,015,746 $ 22,527,967 $ 20,870,700 $ 17,525,894
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34
Sewer Capacity Charge Program
The original analysis was adopted by the City Council in 2000 and annual updates included a preset
adjustment to the charges based on borrowing costs. The most current Sewer Capacity Charge Analysis
by Bartle Wells & Associates is dated August 26, 2009 and was adopted by the City Council in April
of 2010 to be effective in Fiscal Year 2010-11. This analysis identifies the need for sewer collection
and treatment capacity in the City of South San Francisco. There are two components to the Sewer
Capacity Charge: the capital assets valuation charge and the capital improvements charge. The capital
assets charge accounts for the existing value of the sewer collection and treatment system which is
calculated using the depreciated replacement cost of the system’s assets. The capital assets charge (also
called a “buy-in” fee) assigns a value to the benefit that new development receives from the availability
of sewer capacity (which existing development has maintained over the years through the sewer rates).
The total depreciated replacement value is $161.6 million, of which 37.2 percent is new development’s
fair-share, or $60.1 million. The second component is the charge for future improvements to the system
identified in the City’s Capital Improvement Program. The total cost of these future improvements is
$84.6 million, the fair-share allocation to new development is 37.2 percent of that amount, or $29.8
million. The total fair-share is $90 million. These funds may be used for capital improvements to
maintain capacity in the system.
Annual Reporting Information:
1. Refer to page 35 of this report for the beginning and ending balance of the account for the sewer
capacity fund, the amount of charges collected, and the interest earned from investment of
money in the fund.
2. No projects were worked on during FY 2022-23 using the sewer capacity charge program.
3. There are no projects planned for FY 2023-24.
4. The sewer capacity charges do not exceed the estimated reasonable costs of providing the
facilities for which the fee is charged (see Cal. Gov. Code § 66013, subd. (a)).
5. The sewer capacity charge’s accounting and reporting requirements are being met, i.e., the
revenues are kept in a separate fund and the City provides annual reports on the use of the funds
collected (see Cal. Gov. Code §§ 66013, subds. (c) and (d)).
6. There were not any interfund transfers or loans.
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35
Sewer Capacity Charges (Fund 730)
This fee program funds the cost associated with providing collection and treatment capacity to new
development, both through the existing infrastructure provided, and through future capital projects not
funded by other sources.
Beginning balance, July 1, 2022 $ 10,408,664
Additions
Impact Fees $ 1,107,479
Unrealized Gains/Losses (70,852)
Interest Earned 192,716
Total Additions $ 1,229,343
Disbursements % Fee Funded
City Administration $ 2,800 100%
Total Disbursements $ (2,800)
Remaining balance as of June 30, 2023 $ 11,635,207
Projects Appropriated from prior Fiscal Years -
Planned Projects for Fiscal Year 2023-24 -
Total Planned Projects for Fiscal Year 2023-24 $ 11,635,207
Five-Year Revenue Test Using First In First Out Method
Revenue Available FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Current Fiscal Year $ 3,187,257 $ 2,297,395 $ 1,916,350 $ 2,832,407 $ 1,229,343
2-Year Old funds 5,565,334 3,187,257 2,297,395 1,916,350 2,832,407
3-Year Old funds 1,635,518 2,665,095 3,512,384 2,297,395 1,916,350
4-Year Old funds 1,777,053 - - 3,362,512 2,297,395
5-Year Old funds 158,396 - - - 3,359,712
Older than 5 Years old - - - - -
Total Revenue Available $ 12,323,558 $ 8,149,747 $ 7,726,129 $ 10,408,664 $ 11,635,207
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36
Bicycle and Pedestrian Impact Fee for Fiscal Year 2022-23
Land Use Cost per Unit or 1,000 Square Feet
(SQFT)
Residential
Single-Family $243 per unit
Multi-Family $170 per unit
Mobile Home $127 per unit
Commercial/Industrial
Commercial / Retail $.36 per SQFT
Hotel / Visitor Services $.24 / visitor SF
Office / R&D $.09 per SQFT
Industrial $.12 per SQFT
Commercial Linkage Impact Fee Rates for Fiscal Year 2022-23
Gross Square Feet Commercial Floor Area Minus Existing Floor Area × Current Fee Amount for
Applicable Land use Category where the Land Use Fee is:
$5.80 per sf for hotel
$2.90 per sf for restaurant and retail
$17.38 per sf for office and R&D
Library Impact Fee Rates for Fiscal Year 2022-23
Land Use Cost per Unit or 1,000 Square Feet
(SQFT)
Residential
Up to 8 du / ac $828.68 per unit
8.1-18 du / ac $725.39 per unit
18 + du / ac $617.30 per unit
Commercial/Industrial
Commercial / Retail $.08 per SQFT
Hotel / Visitor Services $.04 / visitor SF
Office / R&D $.14 per SQFT
Industrial $.05 per SQFT
Park In-Lieu Fee for Fiscal Year 2022-23
The Park In-Lieu Fee shall be determined using the formula set out in Chapter 19.24.090(a).
[Units in Structure x Average Residents per Unit x 0.003 (3 acres per 1,000 Residents) x Average Fair
Market Value per acre = in-lieu fee]
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37
Childcare Impact Fee Rates for Fiscal Year 2022-23
Land Use per Unit or per Gross Sq. Ft. (GSF)
Residential
Up to 8 du / ac $4,139.91 per unit
8.1-18 du / ac $3,625.54 per unit
18 + du / ac $3,086.51 per unit
Residential – Applications Deemed Complete
before 1/1/2022
Up to 8 du / ac $2,365.50
8.1-18 du / ac $2,220.87
18 + du / ac $2,212.51
Commercial/Industrial
Commercial / Retail $0.81 per GSF
Hotel / Visitor Services $0.30 per GSF
Office / R&D $1.51 per GSF
Industrial $0.60 per GSF
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38
Park Land Acquisition Fee for Fiscal Year 2022-23
Land Use per Unit
Residential
Single-Family $3,124.80 per unit
Duplex to Four-plex $2,699.55 per unit
5 to 19 $2,292.15 per unit
20 to 49 $1,846.95 per unit
50+ $1,611.75 per unit
Mobile Home $2,400.30 per unit
Park Construction Fee for Fiscal Year 2022-23
Land Use per Unit
Residential
Single-Family $31,254.78 per unit
Duplex to Four-plex $26,997.11 per unit
5 to 19 $22,919.93 per unit
20 to 49 $18,481.77 per unit
50+ $16,125.83 per unit
Park Land Acquisition/Construction Fee for Non-Residential for Fiscal Year 2022-23
Commercial/Industrial
Commercial / Retail $1.51 per SQFT
Hotel / Visitor Services $1.44 per SQFT
Office / R&D $3.54 per SQFT
Industrial $1.68 per SQFT
Public Arts In-Lieu Fees Fiscal Year 2022-23
Every non-residential development project shall provide qualifying public art with a value equal to
not less than 1% of construction costs for acquisition and installation of public art on the
development site. A non-residential development project may elect to make a public art contribution
payment in an amount not less than 0.5% of construction costs into the public art fund, in lieu of
acquisition and installation of public art on the development project site.
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Public Safety Impact Fee Rates for Fiscal Year 2022-23
Land Use per Unit or per Square Foot (SF)
Residential
Up to 8 du / ac $1,657.88 per unit
8.1-18 du / ac $1,451.10 per unit
18 + du / ac $1,234.75 per unit
Commercial/Industrial
Commercial / Retail $0.53 per SF
Hotel / Visitor $0.31 per SF
Office / R&D $1.31 per SF
Industrial $0.48 per SF
Transportation Impact Fee for Fiscal Year 2022-23
Land Use per Unit or 1,000 Square Feet (SQFT)
Residential
Single-Family $8,036.27 per unit
Multi-Family $4,631.01 per unit
Commercial/Industrial
Commercial / Retail
Office/ R&D
Industrial
$30.69/ SQFT
$34.85/ SQFT
$15.72/ SQFT
Hotel $2,929.29/ room
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40
Oyster Point Interchange Impact Fee Rates for Fiscal Year 2022-23
The impact fee is calculated by multiplying the number of vehicle trips by $154 and by the percentage
increase in the Construction Cost Index (CCI) as published in the Engineering News-Record (ENR)
from the date of adoption, when the CCI was 6,552.16, to the current effective CCI.
Vehicle Trips are based on average daily traffic (ADT). The rates shown below are based on 1,000
gross square feet of land use.
The ENR CCI published in May is used to calculate monthly increases. The CCI for May 2021 and
2022 were 13,425.35 and 15,326.99, respectively, resulting in a percentage increase of 14.16%
Land Use ADT Trip Rate per 1,000 GSF
General Industrial 5.46
Manufacturing 3.99
Warehousing 4.50
Hotel 10.50
General Office Building 12.30
Research & Development (R&D) 5.30
Restaurant (Dinner House/High Turn-over) 56.30 / 164.40
General Commercial 48
OPI Impact Fee: = (Development Area, SF /1000 SF) x ($154.00) x (Monthly ENR-CCI) / (6,552.16)
Sewer Impact Fee Rates for Fiscal Year 2022-23
The generation rate for all land use is 400 gallons per day per 1,000 square feet of building area.
New Sewer Impact Fee = ($6.40/Gallon) x (1.0475) = ($6.70/Gallon)
Traffic Impact Fee Rates for Fiscal Year 2022-23 (East of 101*)
Area of Building x Land Use Fee where the Land Use Fee is:
R&D/office = $7.60 per building sq. ft.
Hotel = $1,771.92 per room
Commercial/retail = $31.55 per building sq. ft.
* The East of 101 Traffic Impact Fee has been superseded by the Citywide Transportation Impact Fee;
however, this fee is still in use for projects that received entitlements and are vested prior to November
22, 2020. Therefore, this impact fee will continue to receive annual adjustments along with the other
fees.
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41
Sewer Capacity Charge for Fiscal Year 2022-23
The fee is updated each calendar year. The fee is currently $5,810 per EDU. An EDU, or Equivalent
Dwelling Unit, is the amount and strength of sewage equivalent to that discharged by a single-family
residence. EDU = (0.00347 x Q) + (0.362 x BOD) + (0.589 x TSS). Q = gallons per day of sewage
to be discharged; BOD = pounds per day of biochemical oxygen demand to be discharged; TSS =
pounds per day of total suspended solids to be discharged.
193
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-42 Agenda Date:1/24/2024
Version:1 Item #:8.
Report regarding a resolution to approve a three-year professional services agreement with Maze and
Associates, Certified Public Accountants, for independent audit services beginning with the fiscal year ending
June 30, 2024, in an amount not to exceed $290,818, which includes a 10% contingency, with an option to
extend for two additional fiscal years and to authorize the City Manager to execute the agreement.(Karen
Chang, Director of Finance)
RECOMMENDATION
Staff recommends that the City Council approve a three-year professional services agreement with Maze
and Associates,Certified Public Accountants,for independent audit services beginning with fiscal year
ending June 30,2024,in an amount not to exceed $290,818,which includes a 10%contingency,with an
option to extend for two additional fiscal years and to authorize the City Manager to execute the
agreement.
BACKGROUND/DISCUSSION
Maze and Associates (“Maze”)has been the independent auditor for the City of South San Francisco since FY
2003-04.Government Finance Officers Association (GFOA)Best Practices recommend a full-scale competitive
process at the end of the term of each audit contract.The last time the City issued a Request for Proposal
(“RFP”)for independent audit services was in December 2015.Maze was awarded a contract of three years
with an option for an additional two year extension.Maze’s current contract will end after the completion of
their audit services for fiscal year June 30,2023.Given the guidance from GFOA and to promote due diligence,
the City issued an RFP for independent audit services on August 28,2023.The City received six timely
responses from Certified Professional Accounting (CPA) firms by the October 20,2023 submittal date.
After review of all the qualified proposals,the top three firms,Maze and Associates,Badawi and Associates,
and Lance,Soll &Lunghard,LLP were invited to an interview by an evaluation panel comprised of Karen
Chang,Finance Director,Jason Wong,Deputy Finance Director,and Steven Lew,Acting Accounting
Supervisor from the Finance Department.
Panel members evaluated each prospective CPA firm according to the criteria listed below and
weighed each value accordingly:
·Qualifications and experience 35%
·Proposal Quality/Responsiveness 25%
·Fit (Ability to meet City's requirements) 25%
·Cost 15%
Maze was selected based on the result of the scores as follows:
Selection Criteria Possible
Points
Maze Badawi LSL
Qualifications and Experience 35 33.3 33.3 32.3
Proposal Quality/Responsiveness 25 24.7 23.7 22.0
Fit (Ability to Meet City's Requirements)25 24.7 23.0 21.0
Cost 15 15.0 14.0 12.7
Total (Out of 100)100 97.7 94.0 88.0
City of South San Francisco Printed on 1/19/2024Page 1 of 3
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File #:24-42 Agenda Date:1/24/2024
Version:1 Item #:8.
Selection Criteria Possible
Points
Maze Badawi LSL
Qualifications and Experience 35 33.3 33.3 32.3
Proposal Quality/Responsiveness 25 24.7 23.7 22.0
Fit (Ability to Meet City's Requirements)25 24.7 23.0 21.0
Cost 15 15.0 14.0 12.7
Total (Out of 100)100 97.7 94.0 88.0
Maze and Associates is a licensed California Certified Public Accounting firm based in Pleasant Hill,
California.With a staff of 35 individuals,the firm has focused its practice on municipalities since its inception
in 1986.As a result,they annually audit over 200 municipalities.The firm will conduct the annual independent
audit of the City’s financial transactions and to express an opinion on the fairness of the presentation of the:
·City’s financial statements;
·Single audit and report in conformance with U.S.Office of Management and Budget (OMB)Uniform
Grant Guidance/Super Circular;
·Successor Agency to the City of South San Francisco Redevelopment Agency (Successor Agency)/City
Housing Fund,Community Development Block Grant Special Revenue Fund Audit,and other grant
funds as part of Single Audit;
·Gann Appropriations Limit worksheet agreed-upon procedures report;
·Measure A Funds for Local Transportation Purposes audit and compliance;
·Measure W Funds for Local Transportation Purposes audit and compliance in accordance with San
Mateo County Congestion Relief Plan;
·Transportation Development Act (TDA) audit and report;
·State Controller’s City’s Annual Report of Financial Transactions;
·Indenture of Trust associated with the 2005D Bond audit and compliance; and
·Other Reports as Required.
FISCAL IMPACT
Fees for providing the audit services for the FY 2023-24 will be $83,865, which represents a 0.6% increase
from services provided during the FY 2022-23 audit. Fees for providing the audit services for the subsequent
fiscal years will be $88,055 and $92,460 respectively. Staff have included a 10% contingency of $26,438 in the
contract to account for additional single audit programs and potential implementation of new GASB. The total
contract costs for the three years should not exceed $290,818. Funds will be appropriated within the operating
budgets for the respective fiscal years.
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action contributes to the City’s strategic initiative (Priority Area 3) of ensuring fiscal stability.
CONCLUSION
Approval of the attached resolution positions the City to continue its due diligence efforts by ensuring high
quality independent audit services at a competitive rate.
City of South San Francisco Printed on 1/19/2024Page 2 of 3
powered by Legistar™195
File #:24-42 Agenda Date:1/24/2024
Version:1 Item #:8.
Attachment:
1.Draft Agreement for Auditing Services
City of South San Francisco Printed on 1/19/2024Page 3 of 3
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Consulting Services Agreement between [Rev:11.14.2016] January 24, 2024
City of South San Francisco and Maze & Associates Page 1 of 16
CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF SOUTH SAN FRANCISCO AND
MAZE & ASSOCIATES
THIS AGREEMENT for consulting services is made by and between the City of South San Francisco
(“City”) and Maze & Associates (“Consultant”) (together sometimes referred to as the “Parties”) as of March
31, 2024 (the “Effective Date”).
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached as Exhibit A, attached hereto and
incorporated herein, at the time and place and in the manner specified therein. In the event of a conflict in
or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall
end on March 31, 2027, the date of completion specified in Exhibit A, and Consultant shall
complete the work described in Exhibit A prior to that date, unless the term of the Agreement
is otherwise terminated or extended, as provided for in Section 8. The time provided to
Consultant to complete the services required by this Agreement shall not affect the City’s
right to terminate the Agreement, as provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Consultant is engaged in the geographical area in
which Consultant practices its profession. Consultant shall prepare all work products
required by this Agreement in a substantial, first-class manner and shall conform to the
standards of quality normally observed by a person practicing in Consultant's profession.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any time
during the term of this Agreement, desires the reassignment of any such persons, Consultant
shall, immediately upon receiving notice from City of such desire of City, reassign such
person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of performance provided
in Sections 1.1 and 1.2 above and to satisfy Consultant’s obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $290,818.00
(TWO HUNDRED NINETY THOUSAND EIGHT HUNDRED EIGHTEEN DOLLARS) which consists of
$264,380.00 (TWO HUNDRED SIXTY FOUR THOUSAND THREE HUNDERED EIGHTY) plus 10%
contingency, notwithstanding any contrary indications that may be contained in Consultant’s proposal, for
services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict
between this Agreement and Consultant’s proposal, attached as Exhibit A, or Consultant’s compensation
schedule attached as Exhibit B, regarding the amount of compensation, the Agreement shall prevail. City
shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth
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City of South San Francisco and Maze & Associates Page 2 of 16
herein. The payments specified below shall be the only payments from City to Consultant for services
rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified
herein. Except as specifically authorized by City, Consultant shall not bill City for duplicate services
performed by more than one person.
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant’s estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once per month during the
term of this Agreement, based on the cost for services performed and reimbursable costs
incurred prior to the invoice date. Invoices shall contain the following information:
▪ Serial identifications of progress bills (i.e., Progress Bill No. 1 for the first invoice,
etc.);
▪ The beginning and ending dates of the billing period;
▪ A task summary containing the original contract amount, the amount of prior billings,
the total due this period, the balance available under the Agreement, and the
percentage of completion;
▪ At City’s option, for each work item in each task, a copy of the applicable time entries
or time sheets shall be submitted showing the name of the person doing the work,
the hours spent by each person, a brief description of the work, and each
reimbursable expense;
▪ The total number of hours of work performed under the Agreement by Consultant
and each employee, agent, and subcontractor of Consultant performing services
hereunder, as well as a separate notice when the total number of hours of work by
Consultant and any individual employee, agent, or subcontractor of Consultant
reaches or exceeds eight hundred (800) hours, which shall include an estimate of
the time necessary to complete the work described in Exhibit A;
▪ The amount and purpose of actual expenditures for which reimbursement is sought;
▪ The Consultant’s signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City shall
have thirty (30) days from the receipt of an invoice that complies with all of the requirements
above to pay Consultant. City shall have no obligation to pay invoices submitted ninety (90)
days past the performance of work or incurrence of cost.
2.3 Final Payment. City shall pay the last ten percent (10%) of the total sum due pursuant to
this Agreement within sixty (60) days after completion of the services and submittal to City
of a final invoice, if all services required have been satisfactorily performed.
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2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement, unless
the Agreement is modified prior to the submission of such an invoice by a properly executed
change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the compensation schedule attached hereto and incorporated herein
as Exhibit B.
2.6 Reimbursable Expenses. Reimbursable expenses are included in the total amount of
compensation provided under this Agreement that shall not be exceeded.
2.7 Payment of Taxes, Tax Withholding. Consultant is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes. To
be exempt from tax withholding, Consultant must provide City with a valid California
Franchise Tax Board form 590 (“Form 590”), as may be amended and such Form 590 shall
be attached hereto and incorporated herein as an exhibit. Unless Consultant provides City
with a valid Form 590 or other valid, written evidence of an exemption or waiver from
withholding, City may withhold California taxes from payments to Consultant as required by
law. Consultant shall obtain, and maintain on file for three (3) years after the termination of
this Agreement, Form 590s (or other written evidence of exemptions or waivers) from all
subcontractors. Consultant accepts sole responsibility for withholding taxes from any non-
California resident subcontractor and shall submit written documentation of compliance with
Consultant’s withholding duty to City upon request.
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
2.10 Prevailing Wage. Where applicable, the wages to be paid for a day's work to all classes of
laborers, workmen, or mechanics on the work contemplated by this Agreement, shall be not
less than the prevailing rate for a day’s work in the same trade or occupation in the locality
within the state where the work hereby contemplates to be performed as determined by the
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Director of Industrial Relations pursuant to the Director’s authority under Labor Code Section
1770, et seq. Each laborer, worker or mechanic employed by Consultant or by any
subcontractor shall receive the wages herein provided for. The Consultant shall pay two
hundred dollars ($200), or whatever amount may be set by Labor Code Section 1775, as
may be amended, per day penalty for each worker paid less than prevailing rate of per diem
wages. The difference between the prevailing rate of per diem wages and the wage paid to
each worker shall be paid by the Consultant to each worker.
An error on the part of an awarding body does not relieve the Consultant from responsibility
for payment of the prevailing rate of per diem wages and penalties pursuant to Labor Code
Sections 1770 1775. The City will not recognize any claim for additional compensation
because of the payment by the Consultant for any wage rate in excess of prevailing wage
rate set forth. The possibility of wage increases is one of the elements to be considered by
the Consultant.
a. Posting of Schedule of Prevailing Wage Rates and Deductions. If the schedule of
prevailing wage rates is not attached hereto pursuant to Labor Code Section 1773.2, the
Consultant shall post at appropriate conspicuous points at the site of the project a schedule
showing all determined prevailing wage rates for the various classes of laborers and
mechanics to be engaged in work on the project under this contract and all deductions, if
any, required by law to be made from unpaid wages actually earned by the laborers and
mechanics so engaged.
b. Payroll Records. Each Consultant and subcontractor shall keep an accurate payroll
record, showing the name, address, social security number, work week, and the actual per
diem wages paid to each journeyman, apprentice, worker, or other employee employed by
the Consultant in connection with the public work. Such records shall be certified and
submitted weekly as required by Labor Code Section 1776.”
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost
and expense, provide all facilities and equipment that may be necessary to perform the services required by
this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section,
and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and
the information in possession of the City. The location, quantity, and time of furnishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long-distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and
amounts of insurance listed below against claims for injuries to persons or damages to property that may
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arise from or in connection with the performance of the work hereunder by the Consultant and its agents,
representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall
provide Certificates of Insurance, attached hereto and incorporated herein as Exhibit C, indicating that
Consultant has obtained or currently maintains insurance that meets the requirements of this section and
under forms of insurance satisfactory, in all respects, to the City. Consultant shall maintain the insurance
policies required by this section throughout the term of this Agreement. The cost of such insurance shall be
included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any
subcontract until Consultant has obtained all insurance required herein for the subcontractor(s).
4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory
Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all
persons employed directly or indirectly by Consultant. The Statutory Workers’
Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000) per accident. In the alternative,
Consultant may rely on a self-insurance program to meet those requirements, but only if the
program of self-insurance complies fully with the provisions of the California Labor Code.
Determination of whether a self-insurance program meets the standards of the Labor Code
shall be solely in the discretion of the Contract Administrator (as defined in Section 10.9).
The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is
provided, shall waive all rights of subrogation against the City and its officers, officials,
employees, and volunteers for loss arising from work performed under this Agreement.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this Agreement
in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per
occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to the work to be performed under
this Agreement or the general aggregate limit shall be at least twice the required
occurrence limit. Such coverage shall include but shall not be limited to, protection
against claims arising from bodily and personal injury, including death resulting
there from, and damage to property resulting from activities contemplated under this
Agreement, including the use of owned and non-owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 or GL 0002 (most recent editions) covering comprehensive General
Liability and Insurance Services Office form number GL 0404 covering Broad Form
Comprehensive General Liability. Automobile coverage shall be at least as broad
as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 8
and 9. No endorsement shall be attached limiting the coverage.
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4.2.3 Additional requirements. Each of the following shall be included in the insurance
coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy
shall not affect coverage provided to City and its officers, employees,
agents, and volunteers.
4.3 Professional Liability Insurance.
4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain for
the period covered by this Agreement professional liability insurance for licensed
professionals performing work pursuant to this Agreement in an amount not less
than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’
errors and omissions. Any deductible or self-insured retention shall not exceed ONE
HUNDRED FIFTY THOUSAND DOLLARS $150,000 per claim.
4.3.2 Claims-made limitations. The following provisions shall apply if the professional
liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided
for at least five (5) years after completion of the Agreement or the work, so
long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must provide extended reporting coverage for
a minimum of five (5) years after completion of the Agreement or the work.
The City shall have the right to exercise, at the Consultant’s sole cost and
expense, any extended reporting provisions of the policy, if the Consultant
cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
prior to the commencement of any work under this Agreement.
4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
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4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with complete copies of all policies delivered to
Consultant by the insurer, including complete copies of all endorsements attached
to those policies. All copies of policies and certified endorsements shall show the
signature of a person authorized by that insurer to bind coverage on its behalf. If
the City does not receive the required insurance documents prior to the Consultant
beginning work, it shall not waive the Consultant’s obligation to provide them. The
City reserves the right to require complete copies of all required insurance policies
at any time.
4.4.3 Notice of Reduction in or Cancellation of Coverage. A certified endorsement
shall be attached to all insurance obtained pursuant to this Agreement stating that
coverage shall not be suspended, voided, canceled by either party, or reduced in
coverage or in limits, except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City. In the event that any
coverage required by this section is reduced, limited, cancelled, or materially
affected in any other manner, Consultant shall provide written notice to City at
Consultant’s earliest possible opportunity and in no case later than ten (10) working
days after Consultant is notified of the change in coverage.
4.4.4 Additional insured; primary insurance. City and its officers, employees, agents,
and volunteers shall be covered as additional insureds with respect to each of the
following: liability arising out of activities performed by or on behalf of Consultant,
including the insured’s general supervision of Consultant; products and completed
operations of Consultant, as applicable; premises owned, occupied, or used by
Consultant; and automobiles owned, leased, or used by the Consultant in the course
of providing services pursuant to this Agreement. The coverage shall contain no
special limitations on the scope of protection afforded to City or its officers,
employees, agents, or volunteers.
A certified endorsement must be attached to all policies stating that coverage is
primary insurance with respect to the City and its officers, officials, employees and
volunteers, and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
4.4.5 Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain
the approval of City for the self-insured retentions and deductibles before beginning
any of the services or work called for by any term of this Agreement. Further, if the
Consultant’s insurance policy includes a self-insured retention that must be paid by
a named insured as a precondition of the insurer’s liability, or which has the effect
of providing that payments of the self-insured retention by others, including
additional insureds or insurers do not serve to satisfy the self-insured retention, such
provisions must be modified by special endorsement so as to not apply to the
additional insured coverage required by this agreement so as to not prevent any of
the parties to this agreement from satisfying or paying the self-insured retention
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required to be paid as a precondition to the insurer’s liability. Additionally, the
certificates of insurance must note whether the policy does or does not include any
self-insured retention and also must disclose the deductible.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.4.7 Wasting Policy. No insurance policy required by Section 4 shall include a “wasting”
policy limit.
4.4.8 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverage, scope, limits, and forms of
such insurance are either not commercially available, or that the City’s interests are
otherwise fully protected.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or
maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
b. Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and/or
c. Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES. To the fullest extent
permitted by law, Consultant shall indemnify, defend with counsel selected by the City, and hold harmless
the City and its officials, officers, employees, agents, and volunteers from and against any and all losses,
liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury,
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loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the
extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Consultant or
its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality
or character of their work. The foregoing obligation of Consultant shall not apply when (1) the injury, loss of
life, damage to property, or violation of law arises wholly from the gross negligence or willful misconduct of
the City or its officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees,
subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation
of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend
as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and
endorsements required under this Agreement does not relieve Consultant from liability under this
indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any
damages or claims for damages whether or not such insurance policies shall have been determined to apply.
By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and
that it is a material element of consideration.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under
this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions
for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the right
to control Consultant only insofar as the results of Consultant's services rendered pursuant
to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however,
otherwise City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all
claims to, any compensation, benefit, or any incident of employment by City, including but
not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
6.2 Consultant No Agent. Except as City may specify in writing, Consultant shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent
or to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
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7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors shall
comply with all applicable rules and regulations to which City is bound by the terms of such
fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its
employees, agents, and any subcontractors have all licenses, permits, qualifications, and
approvals, including from City, of what-so-ever nature that are legally required to practice
their respective professions. Consultant represents and warrants to City that Consultant and
its employees, agents, any subcontractors shall, at their sole cost and expense, keep in
effect at all times during the term of this Agreement any licenses, permits, and approvals
that are legally required to practice their respective professions. In addition to the foregoing,
Consultant and any subcontractors shall obtain and maintain during the term of this
Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person’s race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any employee,
applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient
of, or applicant for any services or programs provided by Consultant under this Agreement.
Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and
requirements related to equal opportunity and nondiscrimination in employment, contracting,
and the provision of any services that are the subject of this Agreement, including but not
limited to the satisfaction of any positive obligations required of Consultant thereby.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement for cause upon 30 days’ written notice to City and
shall include in such notice the reasons for cancellation.
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In the event of termination, Consultant shall be entitled to compensation for services
performed to the date of notice of termination; City, however, may condition payment of such
compensation upon Consultant delivering to City all materials described in Section 9.1.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this Agreement.
Similarly, unless authorized by the Contract Administrator, City shall have no obligation to
reimburse Consultant for any otherwise reimbursable expenses incurred during the
extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant’s unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not assign or subcontract any
portion of the performance contemplated and provided for herein, other than to the
subcontractors noted in the proposal, without prior written approval of the Contract
Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions
of this Agreement allocating liability between City and Consultant shall survive the
termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City’s remedies shall include, but not be limited to, the following:
8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work described
in Exhibit A that is unfinished at the time of breach and the amount that City would
have paid Consultant pursuant to Section 2 if Consultant had completed the work.
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Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models,
charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records,
files, or any other documents or materials, in electronic or any other form, that Consultant
prepares or obtains pursuant to this Agreement and that relate to the matters covered
hereunder shall be the property of the City. Consultant hereby agrees to deliver those
documents to the City upon termination of the Agreement. It is understood and agreed that
the documents and other materials, including but not limited to those described above,
prepared pursuant to this Agreement are prepared specifically for the City and are not
necessarily suitable for any future or other use. City and Consultant agree that, until final
approval by City, all data, plans, specifications, reports and other documents are confidential
and will not be released to third parties without prior written consent of both parties unless
required by law.
9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of three (3) years, or for any longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of the
City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the request
of City or as part of any audit of the City, for a period of three (3) years after final payment
under the Agreement.
9.4 Records Submitted in Response to an Invitation to Bid or Request for Proposals. All
responses to a Request for Proposals (RFP) or invitation to bid issued by the City become
the exclusive property of the City. At such time as the City selects a bid, all proposals
received become a matter of public record, and shall be regarded as public records, with
the exception of those elements in each proposal that are defined by Consultant and
plainly marked as “Confidential,” "Business Secret" or “Trade Secret."
The City shall not be liable or in any way responsible for the disclosure of any such
proposal or portions thereof, if Consultant has not plainly marked it as a "Trade Secret" or
"Business Secret," or if disclosure is required under the Public Records Act.
Although the California Public Records Act recognizes that certain confidential trade secret
information may be protected from disclosure, the City may not be in a position to establish
that the information that a prospective bidder submits is a trade secret. If a request is
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made for information marked "Trade Secret" or "Business Secret," and the requester takes
legal action seeking release of the materials it believes does not constitute trade secret
information, by submitting a proposal, Consultant agrees to indemnify, defend and hold
harmless the City, its agents and employees, from any judgment, fines, penalties, and
award of attorneys fees awarded against the City in favor of the party requesting the
information, and any and all costs connected with that defense. This obligation to
indemnify survives the City's award of the contract. Consultant agrees that this
indemnification survives as long as the trade secret information is in the City's possession,
which includes a minimum retention period for such documents.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including arbitration or an
action for declaratory relief, to enforce or interpret the provision of this Agreement, the
prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief
to which that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the state
courts of California in the County San Mateo or in the United States District Court for the
Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies
and other printed material on recycled paper to the extent it is available at equal or less cost
than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place Consultant
in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at
California Government Code Section 81000 et seq.
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Consultant shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this Agreement
that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve (12) months,
Consultant warrants that it did not participate in any manner in the forming of this Agreement.
Consultant understands that, if this Agreement is made in violation of Government Code
§1090 et.seq., the entire Agreement is void and Consultant will not be entitled to any
compensation for services performed pursuant to this Agreement, including reimbursement
of expenses, and Consultant will be required to reimburse the City for any sums paid to the
Consultant. Consultant understands that, in addition to the foregoing, it may be subject to
criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be
disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by Director of Finance
("Contract Administrator"). All correspondence shall be directed to or through the Contract
Administrator or his or her designee.
10.10 Notices. All notices and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when
received if personally delivered; (ii) when received if transmitted by telecopy, if received
during normal business hours on a business day (or if not, the next business day after
delivery) provided that such facsimile is legible and that at the time such facsimile is sent
the sending Party receives written confirmation of receipt; (iii) if sent for next day delivery
to a domestic address by recognized overnight delivery service (e.g., Federal Express);
and (iv) upon receipt, if sent by certified or registered mail, return receipt requested. In
each case notice shall be sent to the respective Parties as follows:
Consultant:
Maze & Associates
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
City:
City Clerk
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
210
Consulting Services Agreement between [Rev:11.14.2016] January 24, 2024
City of South San Francisco and Maze & Associates Page 15 of 16
10.11 Professional Seal. Where applicable in the determination of the contract administrator,
the first page of a technical report, first page of design specifications, and each page of
construction drawings shall be stamped/sealed and signed by the licensed professional
responsible for the report/design preparation. The stamp/seal shall be in a block entitled
"Seal and Signature of Registered Professional with report/design responsibility," as in the
following example.
Seal and Signature of Registered Professional with
report/design responsibility.
10.12 Integration. This Agreement, including all Exhibits attached hereto, and incorporated
herein, represents the entire and integrated agreement between City and Consultant and
supersedes all prior negotiations, representations, or agreements, either written or oral
pertaining to the matters herein.
10.13 Counterparts. This Agreement may be executed in counterparts and/or by facsimile or
other electronic means, and when each Party has signed and delivered at least one such
counterpart, each counterpart shall be deemed an original, and, when taken together with
other signed counterpart, shall constitute one Agreement, which shall be binding upon and
effective as to all Parties.
10.14 Construction. The headings in this Agreement are for the purpose of reference only and
shall not limit or otherwise affect any of the terms of this Agreement. The parties have had
an equal opportunity to participate in the drafting of this Agreement; therefore any
construction as against the drafting party shall not apply to this Agreement.
The Parties have executed this Agreement as of the Effective Date.
211
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City of South San Francisco and Maze & Associates Page 16 of 16
CITY OF SOUTH SAN FRANCISCO Consultants
____________________________ _____________________________________
City Manager NAME:
TITLE:
Attest:
_____________________________
City Clerk
Approved as to Form:
____________________________
City Attorney
2729962.1
212
EXHIBIT A
SCOPE OF SERVICES
213
EXHIBIT B
COMPENSATION SCHEDULE
214
EXHIBIT C
INSURANCE CERTIFICATES
215
[OPTIONAL] EXHIBIT D
FORM 590
216
Independent Audit
Services Agreement
Presentation to City Council
Karen Chang, Director of Finance
January 24, 2024
Government Code Section 54957.5
SB 343 Item Agenda: 01/24/2024
REG CC - Item #8
217
Overview
▪Maze and Associates served as independent auditor for the City
since FY 2004
▪Current audit contract expires after completion of audit services
for FY 2023
▪Government Finance Officers Association (GFOA) best practices
recommend full-scale competitive process
▪City issued RFP for 3-Year auditing services with option to
extend for two additional fiscal years on August 28, 2023
2218
6 Proposals Received –October 20, 2023
▪Badawi & Associates
▪Edie Bailly LLP
▪Harshwal & Company LLP
▪Lance, Soll & Lunghard LLP
▪Maze & Associates
▪The Pun Group LLP
3219
Selected Top 3 for interview
▪Badawi & Associates
▪Lance, Soll & Lunghard LLP
▪Maze & Associates
4220
Evaluation
5
Selection Criteria
Possible
Points Maze Badawi LSL
Qualifications and Experience 35 33.3 33.3 32.3
Proposal Quality/Responsiveness 25 24.7 23.7 22.0
Fit (Ability to Meet City's Requirements)25 24.7 23.0 21.0
Cost 15 15.0 14.0 12.7
Total (Out of 100)100 97.7 94.0 88.0
221
Proposed Fees (Maximum Not-to-Exceed)
6
Firms
FY 2022-23
(Current)
FY 2023-24
(Year 1)
Maze & Associates $83,330 $83,865
Badawi & Associates N/A $92,875
Lance, Soll & Lunghard, LLP N/A $105,170
▪Staff has included a 10% contingency of $26,438 in the contract to account
for additional single audit programs, potential implementation of new GASB
or additional services.
222
Scope of Work
▪City’s financial statements;
▪Single audit and report in conformance with U. S. Office of Management and Budget (OMB) Uniform
Grant Guidance/Super Circular;
▪Successor Agency to the City of South San Francisco Redevelopment Agency (Successor
Agency)/City Housing Fund, Community Development Block Grant Special Revenue Fund Audit, and
other grant funds as part of Single Audit;
▪Gann Appropriations Limit worksheet agreed-upon procedures report;
▪Measure A Funds for Local Transportation Purposes audit and compliance;
▪Measure W Funds for Local Transportation Purposes audit and compliance in accordance with San
Mateo County Congestion Relief Plan;
▪Transportation Development Act (TDA) audit and report;
▪State Controller’s City’s Annual Report of Financial Transactions;
▪Indenture of Trust associated with the 2005D Bond audit and compliance; and
▪Other Reports as Required
7223
QUESTIONS
8224
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-43 Agenda Date:1/24/2024
Version:1 Item #:8a.
A resolution approving a three-year Professional Services Agreement with Maze and Associates,Certified
Public Accountants,for independent audit services beginning with the fiscal year ending June 30,2024,in an
amount not to exceed $290,818,which includes a 10%contingency,with an option to extend for two additional
fiscal years and to authorize the City Manager to execute the agreement.
WHEREAS,the City of South San Francisco ("City")published a Request for Proposals (“RFP")for
independent audit services; and
WHEREAS, six vendors submitted timely proposals, and three vendors were interviewed; and
WHEREAS,a panel comprised of internal local governmental finance professionals interviewed three of the
vendors and determined that Maze and Associates would best serve the City' s needs; and
WHEREAS,both parties now wish to enter into an agreement,whereby Maze and Associates will provide
independent audit services commencing FY 2023-24 through FY 2025-26 with options to extend two additional
fiscal years and attached hereto as Attachment A; and
WHEREAS,this City Council has examined the Agreement and approves of it as to both form and content,and
desires to enter into said Agreement.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby
take the following action:
1.Approves an Agreement with Maze and Associates for a three-year Professional Services
Agreement to provide three years of independent audit services in an amount not to exceed 290,818,
including a 10%contingency,commencing Fiscal Year 2023-24 through Fiscal Year 2025-26 with
options to extend for two additional fiscal years,substantially in the form attached hereto as
Attachment A.
2.Authorizes the City Manager,or her designee,to execute an Agreement with Maze and Associates,
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File #:24-43 Agenda Date:1/24/2024
Version:1 Item #:8a.
2.Authorizes the City Manager,or her designee,to execute an Agreement with Maze and Associates,
subject to approval as to form by the City Attorney,for and on behalf of the City of South San
Francisco,and to take any other actions necessary to carry out the intent of this resolution on behalf of
the City Council.
* * * * *
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-30 Agenda Date:1/24/2024
Version:1 Item #:9.
Report regarding a resolution accepting the Annual Comprehensive Financial Report (ACFR)and other related
miscellaneous reports for Fiscal Year 2022-23 (Karen Chang, Finance Director)
RECOMMENDATION
Staff recommends that the City Council review and accept the Audited Financial Statements for the City of
South San Francisco for the fiscal year ended June 30, 2023.
BACKGROUND/DISCUSSION
Summary
Each year the City of South San Francisco is required to prepare audited financial statements in addition to a
number of related reports.This action requests that City Council formally accept these reports.A copy of the
Annual Comprehensive Financial Report (ACFR) is available for public inspection at the City’s website.
For FY 2022-23,the City has received an unmodified or clean opinion on the financial statements from its
auditors Maze &Associates (Maze).In addition,all requirements have been met to achieve the highest standard
in government accounting and financial reporting:the Certificate of Achievement for Excellence in Financial
Reporting issued by the Government Finance Officers Association (GFOA)of the United States and Canada.
The City of South San Francisco has received this certificate annually for the last 21 consecutive years.
Background
The City’s independent auditors,Maze,have completed the audit of the City’s financial transactions and
internal controls for FY 2022-23.The following reports are prepared by the City of South San Francisco and
audited by the City’s independent auditors.Maze also reviewed the City’s Appropriations Limit Calculation for
fiscal year 2022-23.
·Annual Comprehensive Financial Report (ACFR)is the overall financial report for the entire city
organization and provides information about the financial results of operations and numerous required
disclosures.This is the financial report prepared by the City and audited by the independent auditors to
provide reasonable assurance that the financial statements are fairly presented in accordance with
generally accepted accounting principles (GAAP)in the United States.This report contains the
Independent Auditors’Report,which is prepared by the auditors based on their examination of the
City’s financial transactions for the fiscal year ending June 30, 2023.
The ACFR shows the total of all financial accounting for the fiscal year.The financial reporting
provided in the ACFR is in greater detail than the basic financial statements and is made up of three
primary sections:
·Introductory Section:provides general information about the City,including the letter of
transmittal, list of principal officers, and an organization chart.
·Financial Section:provides the overall financial information for the City,including the report of
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·Financial Section:provides the overall financial information for the City,including the report of
the independent auditor,management’s discussion and analysis (MD&A),the basic financial
statements,notes to the basic financial statements,required supplementary information,and
other supplementary statements and schedules.
·Statistical Section:provides a broad range of operational,economic,and historical data
providing context for assessing the City’s fiscal condition.This section provides information
about general financial trends,revenue and debt capacities,economic and demographic trends,
and operating information.
·The City of South San Francisco Transportation Development Act Article III Fund Financial
Statements and Independent Auditors’Reports (TDA)is the required audit report for the grant funds
received by the City for local streets and roads,construction and maintenance,sidewalk ramp and
pedestrian trail projects.Copies of the report are submitted to the Metropolitan Transportation
Commission (MTC)and State Controller’s Office for their review to show that the City is in compliance
with the requirements governing expenditures of MTC funds for the year ending June 30, 2023.
·San Mateo County Measure A Funds financial statements and Independent Auditors’Report is
required by the San Mateo County Transportation Authority (SamTrans).Measure A funds,the one-half
of one percent sales and use tax approved by the San Mateo County voters in 1988 to provide funding
for improvements of local transportation.Copies of the report are submitted to SamTrans to show that
the City is in compliance with the requirements governing expenditures of Measure A funds for the year
ending June 30, 2023.
·San Mateo County Measure W Funds financial statements and Independent Auditors’Report is
required by San Mateo County Transportation Authority.Measure W funds,the one-half of one percent
sales and use tax approved by the San Mateo County voters in 2018 to provide funding for local safety,
pothole and congestion relief improvement program that includes transportation and public transit.
Copies of the report are submitted to SamTrans to show that the City is in compliance with the
requirements governing expenditures of Measure W funds for the year ending June 30, 2023.
·Independent Accountants’Report on Agreed-Upon Procedures Applied to Appropriations Limit
Schedule is required by the State of California in Section 1.5 of Article XIIIB of the California
Constitution.Article XIIIB of the California Constitution limits the amount that governmental agencies
can annually appropriate from proceeds of taxes.An annual calculation,factoring in population and
inflation changes,is performed each year to determine the new appropriation limit.The appropriation
limit for the FY 2022-23 was approved by Council by resolution in June 2023.
·The Auditors’Required Communications Letter includes the auditors’letter,addressed to the City,
communicating their responsibilities in performing the audit and if any,significant findings,and issues
detected during the course of the audit.The report references the City of South San Francisco
Management Representation Letter,addressed to the auditors,communicating management’s opinion of
the City’s financial condition, internal controls, and adherence with laws and regulations.
·The Independent Auditors’Memorandum on Internal Control report includes a review of the City’s
internal controls,based on the audits of the ACFR and Measure A and W financial reports.If the
auditor identifies deficiencies, they identify recommendations to improve internal controls.
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Discussion
Financial Highlights
Maze found the City’s financial statements present fairly,in all material ways,the respective financial position
of the City as of June 30, 2023 (Independent Auditor’s Report, Opinions).
The audited financial statements include the statement of net position,statement of activities and changes in net
position,balance sheets,statement of revenues,expenditures,and changes in fund balance,and statements of
cash flows.
Please refer to the Management’s Discussion and Analysis section in the ACFR for detailed discussion
regarding the City’s financial performance and position.All references to the General Fund within the ACFR
include Measure W.Please refer to pages 116-118 for financials relating only to the main general purpose fund.
Key financial highlights for the year ended June 30, 2023 are as follows:
·Total Net Position for Governmental activities in FY 2022-23 increased by $37.5 million,or 9.5%,from
$396.8 million in the prior year,to $434.3 million.The increase in cash and investments of $46 million
was mainly due to higher revenues received in the year with a reduction in receivables at the end of the
year.The reduction in restricted cash and investments was due to drawing down from bond proceeds to
fund capital projects,mainly Orange Memorial Parks and Civic Campus.The decrease in bond trustee
account was offset by the capitalization of the Police Station at $53 million.The growth in assets of
$28.1 million was offset by a $77.4 million increase in Net Pension Liability.
·Total Net Position for Business-Type activities,which includes Wastewater treatment (or
Sewer),Parking,and Storm Water Funds,in FY 2022-23 increased by $5 million,or 3.6%,
from $137.9 million in the prior year,to $142.9 million.The growth in Net Position was mainly
due to recognition of a $4 million loan forgiven stipulated in the State Water Resources Board
loan agreement.
·The City’s Governmental Funds reported combined fund balances of $312 million,a decrease
of $31.6 million,or 9.21%,compared to the prior year.This was primarily due to near
completion of the bond funded capital improvement projects such as Civic Campus,Orange
Memorial Park,and Street Projects.The General Fund ending fund balance,which includes
Measure W,was $88.6 million,reflecting an increase of $12 million,or 15.5%,over the prior
year primarily due to stronger revenues in most major revenue categories,but also due to
encumbrances being rolled over to next year.
·The combined General Fund balance was $88.6 million,of which $16.8 million was attributable
to Measure W.Of the remaining fund balance,$29.3 million was held in reserve in
accordance with the city policy which is aligned with the Governmental Finance Officers
Association (GFOA)recommended reserve practice.The remaining $42.5 million was held in
designation/reserve accounts for various purposes such as encumbrances,capital projects,
land held for development, and unassigned fund balances.
·Combined General Fund revenues,excluding transfers in and special items,were $162.1
million which was $18.1 million,or 12.6%higher than the final amended budget.The increase
was largely due to continued strong real estate market,higher tax allocation from the
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was largely due to continued strong real estate market,higher tax allocation from the
Successor Agency,higher sales tax revenue,including Measure W,and higher than expected
transient occupancy taxes.The increases were offset by the reduced lower property tax in-lieu
of vehicle license fee (VLF).The general purpose General Fund revenues,excluding transfers
in and special items, were $146.5 million.
·Combined General Fund expenditures,excluding transfers and including encumbrances,were
$133.9 million,which was $5.5 million,or 4.1%,lower than final budget due to overspends in
various departments and carry over of a significant number of purchase orders.However,
absent the $8.7 million encumbrances carried over,the combined General Fund expenditure
for FY 2022-23 was $142.3 million.The general purpose General Fund expenditures,
excluding transfers and special items and including encumbrances, was $133.6 million.
·Overall,the general purpose General Fund experienced a $7 million surplus in FY 2022-23,
including all transfers and one-time special items but excluding encumbrances,compared with
a projected $55,000 in the original adopted budget.However,if all the deferred encumbrances
had been realized,the general purpose General Fund would have been in a $1.7 million
deficit.
·The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers)of $30.1 million in FY 2022-23,an increase of $1.7 million,or 6.0%,from
$28.4 million in the prior year.This increase in revenue is largely due to more water usage and
therefore larger sewer effluent volumes on which service charges are based.In addition,the
revenue increase was due to other cities’increase in participation of Operating and
Maintenance Cost sharing.Operating expenses increased $2.1 million,or 8.0%,from $25.8
million to $27.9 million, due to higher payroll-related expenses.
Auditors’ Communication with Those Charged with Governance
Professional auditing standards require the auditors to communicate in writing to management and those
charged with governance.Maze and Associates has issued the Memorandum on Internal Control and Required
Communications, and the memorandum is attached to this staff report for your review.
Staff is pleased to inform the Council that there were no findings that resulted from the audit.
Staff and Maze will issue a Single Audit Report on or before March 2023.The Single Audit Report is the audit
report required by the Single audit Uniform Guidance.This report contains a schedule of Federal Financial
Assistance that summarizes Federal grant activity in the City of South San Francisco for the fiscal year.
CONCLUSION
In Summary,Maze found the general-purpose financial statements present fairly the City’s financial position as
of June 30,2023.This is the highest-level opinion that can be rendered by the auditors.This opinion assures
that the City’s financial statements are in conformity with accounting principles generally accepted in the
United States and was rendered on all City funds.Other reports such as TDA,Measure A and W also meet the
compliance requirements.
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Independent Auditor Presentation for the
Fiscal Year Ended June 30, 2023
Annual Comprehensive Financial Report and
Other Related Annual Audit Reports
City of South San Francisco
City Council January 24, 2024
Amy L. Meyer, CPA
Partner
1
Government Code Section 54957.5
SB 343 Item Agenda: 01/24/2024
REG CC - Item #9
23
2
Annual Audit
Maze and Associates – we are an independent
CPA firm, independent from the City of South San
Francisco and its component units.
Audit was conducted in accordance with auditing
standards generally accepted in the United States of
America and Government Auditing Standards issued by
the Comptroller General of the United States of America.
223
3
We Audit
City (Annual Comprehensive Financial Report)
Transportation Development Act (TDA)
Financial Statements and Compliance
Compliance Testing for Measures A and W
programs
Single Audit required in current year -later
(federal award programs)
323
4
Results of Audit
Independent Auditor’s Report (pg 1 of ACFR)
Unmodified/clean opinions…fairly stated, in all material
respects…in conformity with accounting principles generally
accepted (GAAP) in the USA.
TDA (pg 1)
Unmodified/clean opinion
No compliance findings
Measures A and W
Unmodified/clean opinions
No compliance findings
423
5
Results of Audit
Management’s Discussion and Analysis
(prepared by Finance Staff – pg 5 of ACFR)
Discusses significant activity for the fiscal year
Major Events Include
Implemented GASB 96, SBITAs –none to record
Police Station Phase I Completed - $53.4m
Pension – increased $86m after a PY decrease of $60.9m
OPEB – increased $6.8m after a PY decrease of $6.2m
523
6
Results of Audit
Memorandum on Internal Control
Three possible categories for comments:
Material Weakness
Significant Deficiency
Other Matters
623
7
Results of Audit
Memorandum on Internal Control
No material weaknesses noted
Four other matters
Other informational items
723
8
Results of Audit
Required Communications
Changes in Accounting Policies
None – Four GASBs effective, but little to no impact
Unusual Transactions, Controversial or Emerging Areas
None
Significant Accounting Estimates Include
Pension and OPEB Liabilities and Related Def Outflows/Inflows
Fair Value of Investments
Depreciation
Compensated Absences
Claims Liabilities
823
9
Results of Audit
Required Communications (Continued)
No difficulties encountered or disagreements with
management
No material adjustments
No uncorrected misstatements to report (deemed trivial)
924
0
Other Reports
Agreed Upon Procedures – recalculation of the
Gann Limit (Appropriations Limit)
City and District – no errors noted
1024
1
QUESTIONS?
11
“We are in the business to help our clients succeed”
24
2
FY 2022-23
Annual
Comprehensive
Financial Report
City Council Meeting
January 24, 2024
Government Code Section 54957.5 SB
343 Agenda: 01/24/2024
Reg CC Item # 9
243
FY 2022-23 ACFR Overview
2
Annually audited by Maze & Associates –the City’s
independent audit firm
Prepared following the guidelines recommended
by:
•Government Finance Officers Association (GFOA) of the United
States and Canada
•Standards adopted by the Governmental Accounting
Standards Board (GASB)
244
FY 2022/23
ACFR Layout
Introductory Section
•Letter of Transmittal
•Provides the formal transmittal of the
ACFR from management
•Provides information useful in assessing an
entity’s economic condition
•GFOA Certificate of Achievement
•Organization Chart
•City Council & Principal Officers
245
FY 2022-23
ACFR Layout
•Financial Section:
•Independent Auditor’s Report (Opinion)
•Maze
•Unmodified Opinion
•Management’s Discussion and Analysis
•Overview of the entity’s basic financial
statements
•Provides comparative data from prior years
•Provides the results of the entity’s overall
financial position and results of operations
•Discussion of capital assets and long-term debt
activity
•Basic Financial Statements of the City
•Government-wide financial statements, fund
financial statements, notes to the financial
statements, and supplementary information
4246
FY 2022/23
ACFR Layout
•Financial Section (continued):
•Notes to the Financial Statements
•Presents detailed information as a context
for understanding the information in the
financial statements
•Statistical Section:
•Presents supplementary information
about the City’s overall Fiscal condition.
247
General Fund Highlights
Revenues* (excluding
transfers)
$146.5 million
Expenditures
(excluding transfers) -
$133.6 million
General Fund
Operating Surplus $12.9
million
•Special Items = -$9.8 million
•Net Transfers = $3.9 million
General Fund Surplus
$7.0 million
Encumbrance rollover
-$8.7 million
248
FY 2022-23 General Fund Revenue
Favorable/
(Unfavorable)% Variance
Property Taxes 49,779,284$ 43,804,769$ 45,804,769$ 54,041,117$ 8,236,348$ 18.0%
Sales Tax 22,361,011 20,991,018 22,391,018 21,735,087 (655,931) -2.9%
Transient Occupancy Tax 12,135,638 11,160,752 14,160,752 16,357,104 2,196,352 15.5%
Other Taxes 6,537,423 4,893,252 5,693,252 8,059,817 2,366,565 41.6%
Franchise Fees 4,863,076 4,600,000 4,600,000 5,240,637 640,637 13.9%
Building and Fire Permits 14,062,474 15,500,000 19,425,400 20,467,644 1,042,244 5.4%
Fines and Forfeitures 700,961 710,824 710,824 757,019 46,195 6.5%
Intergovernmental 3,196,346 2,844,618 4,337,199 3,558,742 (778,457) -17.9%
Charges for Services 9,747,605 8,799,097 8,265,097 11,673,187 3,408,090 41.2%
Use of Money & Property 1,553,209 5,453,469 4,556,469 4,247,107 (309,362) -6.8%
Other Revenues 515,004 259,383 278,903 353,378 74,475 26.7%
Total Revenues 125,452,031$ 119,017,182$ 130,223,682$ 146,490,839$ 16,267,157$ 12.5%
Add Prior Year Committed reserves - 7,469,764 - -
Total Available Resources 125,452,031$ 119,017,182$ 137,693,446$ 146,490,839$ 16,267,157$
Variance from 2022-23 Adjusted
budget
Revenues
Actual
2021-22
Adopted
2022-23
Adjusted
2022-23
Actual
2022-23
249
FY 2022-23 Expenditure Summary
(Favorable)/
Unfavorable % Variance
City Council 252,677$ 258,749$ 260,650$ 241,596$ (19,054)$ -7.3%
City Clerk 887,678$ 1,143,342$ 1,154,449$ 1,027,822$ (126,627)$ -11.0%
City Treasurer 39,852$ 167,292$ 167,904$ 35,279$ (132,625)$ -79.0%
City Attorney 1,138,457$ 940,290$ 940,291$ 1,220,059$ 279,768$ 29.8%
City Manager 3,911,694$ 4,527,997$ 5,324,596$ 3,819,858$ 90,051 (1,414,687)$ -26.6%
Finance 3,148,914$ 3,892,875$ 4,405,085$ 3,089,869$ 527,453 (787,763)$ -17.9%
Non-Departmental 2,580,748$ 2,044,367$ 2,152,699$ 3,625,264$ 2,782 1,475,347$ 68.5%
Human Resources 2,065,927$ 2,518,004$ 2,684,109$ 2,221,160$ 110,827 (352,122)$ -13.1%
Economic & Community Development 11,006,922$ 8,907,770$ 15,609,631$ 11,770,931$ 4,139,032 300,332$ 1.9%
Fire 32,560,468$ 31,313,293$ 33,424,718$ 35,512,513$ 887,974 2,975,769$ 8.9%
Police 33,281,487$ 32,957,662$ 34,511,302$ 36,282,832$ 277 1,771,807$ 5.1%
Public Works 6,294,564$ 7,120,654$ 8,603,705$ 7,936,326$ 995,569 328,190$ 3.8%
Library 6,495,279$ 6,706,110$ 7,273,745$ 6,475,274$ 43,708 (754,763)$ -10.4%
Parks & Recreation 18,092,526$ 19,608,365$ 22,873,152$ 20,362,073$ 1,863,866 (647,213)$ -2.8%
Total Expenditures 121,757,193$ 122,106,770$ 139,386,036$ 133,620,856$ 8,661,539$ 2,896,359$ 2.1%
Variance from 2022-23 Adjusted
budget
Expenditures
Actual
2021-22
Adopted
2022-23
Adjusted
2022-23
Actual
2022-23
Carryover
Purchase
Orders
250
FY 2022-23 Surplus/(Deficit)
(Favorable)/
Unfavorable % Variance
Net Operating Surplus/ (Deficit)3,694,838$ (3,089,588)$ (1,692,590)$ 12,869,983$
Other Financing Sources / (Uses)
Transfers in 4,763,729$ 3,245,000$ 6,151,400$ 5,283,682$ -$ (867,718)$ -14.1%
Transfers out (10,033,749) (100,000) (4,533,270) (1,388,940) - 3,144,330 -69.4%
Other Accounting Adjustments (1,455,282) - 897,000 (9,761,156)
Total Other Financing Sources/ (Uses)(6,725,302)$ 3,145,000$ 2,515,130$ (5,866,414)$ -$ (4,012,048)$ 55.3%
Net Change in Fund Balance (3,030,464)$ 55,412$ 822,540$ 7,003,569$
Variance from 2022-23 Adjusted
budget
Actual
2021-22
Adopted
2022-23
Adjusted
2022-23
Actual
2022-23
Carryover
Purchase
Orders
251
General
Fund
Highlights
General Fund’s fund balance* = $71.8M
•$7M Surplus in FY 2022-23**
•$55K per Adopted budget
* Excludes Measure W Sales Tax
** Excludes deferred encumbrances $8.7M
1
0
252
General Fund –Reserves as of 6-30-2023
Total Fund balance 71,798,386$
Designated for:
CIP (3,775,873)$
Encumbrances (PO)(8,661,539)
Land Held for Red.(3,718,818)
ERP Replacement (6,000,000)
20% Reserve per GFOA (29,298,168) (51,454,398)$
Unassigned F/B 20,343,988$
253
FY2022-23 City Reserve & GF Unassigned Fund Balance
12
* Per GFOA best practices. Represents approx. 2-3 months operating needs
**Approx. $4M has been assigned for projects in FY2023-24 adopted budget
General Reserves
(City Policy)
$ 29,298,000*
Pension Reserves
$ 5,596,000
Infrastructure
Reserves
$ 8,194,000**
TOTAL Reserve
$ 43,088,000
Available
Unassigned GF
Fund Balance
$20,344,000
Total Combined
Balance
$63,432,000
254
QUESTIONS?
Q&A
13255
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-31 Agenda Date:1/24/2024
Version:1 Item #:9a.
Resolution approving the Annual Comprehensive Financial Report and other related miscellaneous reports for
Fiscal Year 2022-23
WHEREAS,the Government Accounting Standards Board Statement 34 (GASB 34)requires the City of South
San Francisco to provide an overview of its financial activities for the fiscal year; and
WHEREAS,the City of South San Francisco publishes an Annual Comprehensive Financial Report (ACFR),
which includes its Basic Financial Statements as defined in Governmental Accounting Standards,as well as
Supplementary Information; and other related miscellaneous reports for Fiscal Year 2022-23; and
WHEREAS,the City’s independent auditor opined that the City’s financial statements present fairly,in all
material respects, the City’s financial position as of year ended June 30, 2023; and
WHEREAS,the auditor,as part of its most recently completed audit,has prepared a letter to the City Council,
also known as the Auditors’Required Communications Letter and Independent Auditors’Memorandum on
Internal Control, outlining the scope of the audit review and findings, if any.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the
City Council accepts the attached results of the attached ACFR and other related miscellaneous reports for the
fiscal year ended June 30, 2023.
Attachments:
1.Annual Comprehensive Financial Report (ACFR)
2.Transportation Development Act, Article III Fund Program
3.San Mateo County Transportation Authority - Measure A Funds Financial Statements and Independent
Auditors’ Report
4.San Mateo County Transportation Authority - Measure W Funds Financial Statements and Independent
Auditors’ Report
5.Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit
Schedule
6.Auditors’ Required Communications Letter
7.Independent Auditors’ Memorandum on Internal Control
*****
City of South San Francisco Printed on 1/25/2024Page 1 of 1
powered by Legistar™256
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
CITY OF SOUTH SAN FRANCISCO
CALIFORNIA
257
258
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
Prepared by:
Department of Finance
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260
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................... i
Letter of Transmittal ......................................................................................................................................... v
Certificate of Achievement for Excellence in Financial Reporting ................................................................ xi
Organization Chart .......................................................................................................................................... xii
City Council and Directory of City Officials ................................................................................................ xiii
FINANCIAL SECTION
Independent Auditor's Report ...................................................................................................................... 1
Management’s Discussion and Analysis ....................................................................................................... 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position .................................................................................................................. 29
Statement of Activities ...................................................................................................................... 30
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ................................................................................................................................ 34
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 36
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 38
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities ........................................................................................................ 40
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –
Budgetary Basis:
General Fund ....................................................................................................................... 41
American Rescue Plan Act Special Revenue Fund ............................................................. 42
i 261
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued)
Major Proprietary Funds:
Statement of Net Position .............................................................................................................. 44
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 45
Statement of Cash Flows ............................................................................................................... 46
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................. 48
Statement of Changes in Fiduciary Net Position .......................................................................... 49
Notes to Basic Financial Statements ...................................................................................................... 51
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios –
Miscellaneous Plan ............................................................................................................ 106
Schedule of Contributions – Miscellaneous Plan ........................................................................ 107
Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 108
Schedule of Contributions – Safety Plan ..................................................................................... 109
Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 110
Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 111
Notes to Schedule of Employer Contributions ............................................................................ 111
Supplementary Information:
General Fund:
Combining Balance Sheets ............................................................................................................. 116
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 117
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 118
ii 262
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued)
Non-major Governmental Funds:
Combining Balance Sheet ............................................................................................................... 124
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 130
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 136
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 144
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 145
Combining Statement of Cash Flows ............................................................................................. 146
Custodial Funds:
Combining Statement of Net Position ............................................................................................ 148
Combining Statement of Changes in Net Position ......................................................................... 149
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 153
Changes in Net Position – Last Ten Fiscal Years .......................................................................... 154
Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 158
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 160
Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 162
Direct and Overlapping Governments – Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 163
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 164
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 165
iii 263
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 166
Computation of Direct and Overlapping Debt ............................................................................... 167
Computation of Legal Bonded Debt Margin ................................................................................. 168
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 169
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Eight Fiscal Years ............. 170
Redevelopment Pledged Revenue Coverage – Last Ten Fiscal Years .......................................... 171
Demographic and Economic Statistics – Last Ten Calendar Years .............................................. 172
Principal Employers – Current Year and Nine Years Ago ............................................................ 173
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 174
Operating Indicators by Function/Program – Last Nine Fiscal Years ........................................... 175
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 176
Miscellaneous Information – Last Five Fiscal Years ..................................................................... 177
iv 264
December 27, 2023
Honorable Mayor and Members of the City Council
City of South San Francisco
South San Francisco, California
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for
the City of South San Francisco (City) for the fiscal year (FY) ended June 30, 2023.
The City of South San Francisco is required to publish a complete set of financial
statements presented in conformance with generally accepted accounting
principles (GAAP) and audited by an independent, certified public accounting firm.
This report is published to fulfill this requirement for the fiscal year ending June 30,
2023.
The report presents the finances of the City of South San Francisco. Management
assumes full responsibility for the completeness and fairness of the information
presented in this report. To the best of our knowledge and belief, the enclosed data
is accurate in all material respects and is reported in a manner designed to present
fairly the financial position and results of operations of the various funds of the City.
All disclosures necessary to enable the reader to gain an understanding of the
City’s financial activities have been included.
This report consists of management’s representations concerning the finances of
the City. To provide a reasonable basis for making these representations,
management established a comprehensive internal control framework designed to
both protect the City’s assets from loss, theft, or misuse, compiled sufficient
reliable information for the preparation of the City’s financial statements in
conformity with the Generally Accepted Accounting Principles (GAAP), and
complied with applicable laws and regulations.
CITY COUNCIL 2023
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
SHARON RANALS, CITY MANAGER
v 265
The City contracted with Maze & Associates (Maze), a public accounting firm
licensed to perform local government audits in California, to complete the annual
audit. Maze concluded that the financial statements present fairly the respective
financial position of the government activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City, and the
respective changes in financial position, and where applicable, cash flows for the
year ended June 30, 2023, in accordance with GAAP. This is a favorable
conclusion and is commonly referred to as an unmodified opinion.
The independent audit of the City’s financial statements is part of a broader,
federally mandated “Single Audit” designed to meet the needs of federal grantor
agencies. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the City’s financial
statements, but also on the City’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. Maze will issue the Single Audit on
or before March of 2024.
GAAP requires that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statement in the form of the
Management’s Discussion & Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The
MD&A is located immediately following the report of the independent auditor in the
financial section.
CITY PROFILE
The City proudly remains the Industrial City, a reflection of its steel mill and
shipbuilding past, redefined to reflect the innovative, entrepreneurial, and
industrious spirit which has made South San Francisco the Biotech Capital of the
World, with over 250 active biotech companies and growing.
The City encompasses approximately 9.5 square miles and has a population of
66,105. The City employs approximately 500 full-time regular employees and is a
full-service city which includes public safety (police, fire and paramedics), libraries,
parks, cultural and recreational activities, senior citizen services, public works,
public improvements, engineering, planning, building regulation, economic
development, drainage, street lighting, and general administrative services. Sewer
service, downtown parking operations, and storm water management are
accounted for in the City’s enterprise funds. The Conference Center Authority is
included in the financial statements by discrete presentation – that is, the
Authority’s financial data is reported in a column separate from the financial data
of the City. Water and solid waste services are provided by private entities.
vi 266
South San Francisco was incorporated and became a general law city of the State
of California on September 19, 1908. The form of government is the Council-
Manager plan. The City shifted from at-large to district elections in November 2018
for the City Council. Each Councilmember serves a term of four years, with a
rotating Mayor chosen by majority vote of the Council, for a term of one year. The
Council appoints the City Manager and City Attorney. The City Manager is
responsible for carrying out the policies and ordinances of the City Council, for
overseeing the day-to-day operations of the City and appointing department
directors.
The offices of City Clerk and City Treasurer are elected and will remain at-large.
This report includes all financial activities of the City, including financial information
for the City, as the primary government, and for its component units, for which the
City is considered financially accountable. The blended component units include
the City of South San Francisco Capital Improvements Financing Authority, the
Parking Authority of the City of South San Francisco, and the City of South San
Francisco Public Facilities Financing Authority. The South San Francisco
Conference Center is a discretely presented component unit and is included
because of the significance of its governing, operational, and/or financial
relationships with the City. The Successor Agency that was created due to the
Redevelopment Agency dissolution is also included in this report.
ASSESSING THE CITY’S ECONOMIC CONDITION
The City continued to recover from the economic challenges associated with the
global COVID-19 pandemic during Fiscal Year 2022-23. Unemployment rates
increased slightly during the year from 2.60% in July 2022 to 3.10% in June 2023.
This is in-line with the County of San Mateo’s unemployment rate of 3.10% but
better than the State’s unemployment rate of 4.60% as of June 2023.
Property tax revenues remained strong in FY 2022-23, continuing a multi-year
trend that has been key to the City’s ongoing financial strength. Property taxes
rose by 8.56%, supported by stable property sales activity and receipt of an
additional $4 million from the Successor Agency Tax allocation. Permit and
inspection revenue had seen a 45.5% jump in revenues from FY 2021-22 due to
increase in activities. Revenues from transient occupancy taxes have recovered
from pandemic levels low and experienced a 34.8% increase in FY 2022-23 as
travel activities and tourism rebounded.
An exception to these positive trends occurred with sales tax receipts, which
declined by 1.1% in FY 2022-23 after an extraordinarily strong performance in FY
2021-22.
Much uncertainty remains about the City’s prospects for further economic
recovery, largely due to global economic stresses. Widespread inflation and
interest rate increases, rising energy costs, protracted war in Europe, and the
vii 267
potential for global recession all weigh heavily on South San Francisco’s fiscal
outlook in the wake of FY 2022-23. Amidst these near-term global crises, the City
continues to face numerous local challenges including housing affordability, traffic
congestion, growth, and crime. To the extent they impact revenue growth, negative
global economic trends may also constrain the City’s ability to address such local
policy priorities.
Despite immediate and longer-term challenges, the City remains well-positioned
to take advantage of ongoing regional economic growth. The City remains a
desirable location and continues to draw new residents and businesses. South
San Francisco is home to the largest biotech cluster in the world, with over 250
biotech companies, and 11.5-million square feet of biotech space on 500-acres.
Population growth also appears likely to recover from modest pandemic era
declines as residential construction remains robust in a region with continued
strong housing demand and a longstanding shortfall of supply. The City’s
burgeoning tourism industry is also primed for growth with added hotel capacity in
recent years. These strong fundamentals, which propelled South San Francisco’s
economy in prior years, appear likely to support renewed growth as the City
emerges from the public health crisis.
In November 2015, voters in the City passed Measure W, which increased the
sales tax rate within the City by 0.50%. The tax is deposited into the City's General
Fund and will be used to pay for City services. This tax revenue is primarily used
to pay the debt service on lease revenue bonds issued for construction of police
station, Civic Campus, a new Aquatic Center and facilities at Orange Memorial
Park. The Civic Center and Multi-purpose sports field opened in October 2023.
MAJOR CITY SPONSORED INITIATIVES
The City is committed to provide innovative, responsive services to enhance the
quality of life of the community through which it continued to implement services
and programs that are consistent with the community’s mission, vision, values, and
strategic goals. Major programs/projects and accomplishments for FY 2022-23
are included as follows:
Strategic Plans
Completed Master Plans for Centennial Way Trail and Orange Memorial
Park
City Services
In partnership with the South San Francisco Unified School District,
expanded free after school programs for transitional kindergarten through
sixth grade students as a part of the Expanded Learning Opportunities
Program (ELOP) through the California Department of Education
Launched the Joint Advisory Committee of the Child Care Master Plan
Expanded free South City Shuttle services
viii 268
Capital Projects
Completion of Water Quality Plant’s Wet Weather Digesters Improvement
Project
Electrification of City’s Fleet with addition of 18 new Electric Vehicles
Completion of Oyster Point Development Phase 1C
Pavement Management Program – 2021 Surface Seal & Rehab projects
South Airport Boulevard Improvement Project
West Orange and Hillside Pedestrian Crossing Improvement Project
Oyster Point Pump Station
Water Quality Control Plant Sludge Dewatering Improvements
Bay Trail Improvements at Oyster Point 2C
FINANCIAL INFORMATION
The City Council is required to adopt a final budget by passing a budget resolution
no later than June 30th, following a public hearing process. This annual budget
serves as the foundation for the City’s financial planning and control. The budget
is prepared by fund, function, and department. The legal level of budgetary control
is at the fund level. The City Manager is authorized to transfer budgeted amounts
between departments and line items within any fund. Any revisions that alter the
total expenditure of any fund must be approved by the City Council. Transfers
between funds must be approved by the City Council. At the end of the fiscal year,
encumbered appropriations are carried forward and become part of the following
year’s budget while appropriations that have not been encumbered lapse, unless
otherwise authorized by the City Council and the City Manager.
In developing and appraising the City’s accounting system, consideration is given
to the adequacy of internal accounting controls. Internal accounting controls are
designed to provide reasonable but not absolute assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; (2) the
reliability of financial records for preparing financial statements and maintaining
accountability for assets; and (3) transactions being properly executed in
accordance with management’s authorization.
The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the evaluation of costs
and benefits requires estimates and judgments by management.
Basic characteristics of sound internal accounting control include segregation of
accounting duties, approval of accounting transactions, and regular reconciliation
of detail and control records.
ix 269
All internal control evaluations occur within this framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide
reasonable assurances of proper recording of financial transactions.
City continues to receive a triple A credit rating, which is a good indicator of the
City's strong financial position, solid executive management, fiscally sound policies
and practices, and responsible budgetary performance.
The City’s Reserve Policy is aligned with the Government Finance Officers
Association (GFOA) best practices recommendation for reserves, setting aside 15-
20 percent of operating revenues.
OTHER INFORMATION
Award
The City’s ACFR for the fiscal year ended June 30, 2022, received a Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association. The award signified the report’s attainment of easily readable
and efficiently organized content and satisfaction of generally accepted accounting
principles and legal requirements. The award is valid for a period of one year only.
However, the City believes that this current report continues to conform to program
eligibility requirements.
Acknowledgments
The preparation of the ACFR was made possible by the dedicated services of the
entire staff of the Finance Department and our auditor. Each member of the
department has our sincere appreciation for the contributions made in the
preparation of this report. Furthermore, we would like to thank the City Council for
its leadership and commitment to ensuring the long-term fiscal health of the City.
Respectfully submitted,
____________________________ __________________________
Karen Chang Sharon Ranals
Director of Finance City Manager
x 270
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South San Francisco
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
xi 271
Citizens of South San Francisco
City Council
City Clerk
Rosa Govea Acosta
City Treasurer
Frank Risso
City Manager
Sharon Renals
City Attorney
Sky Woodruff
Exec. Assistant to the City
Manager
Marie Patea
Administrative Departments
Operating Departments
Fire Chief
Jess Magallanes
Public Works Director
Eunejune Kim
Library Director
Valerie Sommer
Parks and Recreation Director
Greg Mediati
Econ. & Comm.
Development Director
Nell Selander
Chief of Police
Scott Campbell
Human Resources Director
Leah Lockhart
Finance Director
Karen Chang
Assistant City Manager *
Richard Lee
Deputy City Manager
Buenaflor Nicolas (District 3), Mayor
Mark Nagales (District 2), Vice Mayor
Mark Addiego (District 1), Member
James Coleman (District 4), Member
Eddie Flores (District 5), Member
Information Technology
Director
Tony Barrera
Capital Projects Director
Jacob Gilchrist
Phillip Vitale
Dep. Capital Projects Director
Christina Fernandez
* As of June 30, 2023, the Assistant City Manager position was vacant. Rich Lee joined the City in late August 2023
xii 272
City Council & Directory of Officials*
City Council
Buenaflor Nicolas (District 3) Mayor
Mark Nagales (District 2) Vice Mayor
Mark Addiego (District 1) Councilmember
James Coleman (District 4) Councilmember
Eddie Flores (District 5) Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Sharon Ranals City Manager
Richard Lee Assistant City Manager
ChrisƟna Fernandez Deputy City Manager
Karen Chang Finance Director
ScoƩ Campbell Chief of Police
Tony Barrera InformaƟon Technology Director
Jacob Gilchrist Capital Projects Director
Nell Selander Deputy Economic & Community Development Director
Leah Lockhart Human Resources Director
Jess Magallanes Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Greg MediaƟ Parks & RecreaƟon Director
Budget SubcommiƩee
Mark Addiego
Buenaflor Nicolas
*As of November 15, 2023
xiii 273
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274
INDEPENDENT AUDITOR’S REPORT
Honorable Members of the City Council
City of South San Francisco, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of South San
Francisco (City), California, as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
Table of Contents.
We did not audit the discretely presented component unit financial statements of the South San Francisco
Conference Center Authority (Authority), which represents 0.61%, 0.79%, and 1.32%, respectively, of the
assets, net position, and revenue of the primary government. Those financial statements were audited by
other auditors, whose report thereon has been furnished to us and our opinion, insofar as it relates to the
amounts included for the Authority, is based solely on the report of the other auditors.
In our opinion, based on our audit and report of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City as of June 30, 2023, and the respective changes in financial position
and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of
Contents as part of the basic financial statements for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
1 275
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
2 276
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents
be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in
the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not
include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
3 277
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 27,
2023, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the City’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 27, 2023
4 278
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
The Management’s Discussion and Analysis (MD&A) provides an overview of City of South San
Francisco’s financial activities and fiscal performance for the year ended June 30, 2023. Please
read this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements
to obtain a complete picture of the City’s financial condition.
FINANCIAL HIGHLIGHTS
Total Net Position for Governmental activities in FY 2022-23 increased by $37.5 million, or
9.5%, from $396.8 million in the prior year, to $434.3 million. The increase in cash and
investments of $46 million was mainly due to higher revenues received in the year with a
reduction in receivables at the end of the year. The reduction in restricted cash and investments
was due to drawing down from bond proceeds to fund capital projects, mainly Orange
Memorial Parks and Civic Campus. The decrease in bond trustee account was offset by the
capitalization of the Police Station at $53 million. The growth in assets of $28.1 million was
offset by a $77.4 million increase in Net Pension Liability.
Total Net Position for Business-Type activities in FY 2022-23 increased by $5 million, or
3.6%, from $137.9 million in the prior year, to $142.9 million. The growth in Net Position was
mainly due to recognition of a $4 million loan forgiven stipulated in the State Water Resources
Board loan agreement.
City-wide Net Pension Liability to CalPERS for FY 2022-23 increased by $86.0 million, or
59.6%, from $144.4 million in the prior year to $230.4 million. This significant increase in
liability was driven by revised actuarial assumption, lowered discount rates imposed by
CalPERS, and coupling with weaker investment earnings.
City-wide cash and investments at year end increased $53.3 million, or 20.1%, from $264.8
million in the prior year to $318.1 million. This reflects the underlying strength in the local
economy as the City continued to recover from the pandemic and the strong real-estate market.
Revenues from Governmental Activities (excluding transfers and special items) increased by
$12.5 million, or 6.1%, to $216.4 million in FY 2022-23 from $203.9 million in the prior year.
Revenues from Business-Type Activities (excluding transfers and special items) increased
$1.8 million, or 5.35%, to $36.2 million in FY2022-23 from $34.4 million in the prior year.
Expenses from Governmental Activities (excluding transfers and special items) increased by
$36.8 million, or 27.32%, to $171.6 million in FY2022-23 from $134.8 million in the prior
year due to a greater amount of interest paid on debt (due to additional bonds having been
issued in the prior year). Expenses from Business-Type Activities increased by $4.7 million,
or 16.4%, to $33.4 million compared to $28.7 million in the prior year.
5 279
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Property tax revenues categorized under Governmental Activities increased in FY 2022-23 by
$7.7 million, or 19.3%, to $47.7 million from $40 million in the prior year. This was primarily
due to the continued strong real estate market and also from receipt of a higher tax allocation
from the Successor Agency.
Transient Occupancy Tax (“TOT”) was the most dramatically impacted revenue category
during the height of the pandemic due to the restrictions on travel and shelter-in-place orders.
By the beginning of FY 2021-22, these had largely been removed allowing this revenue
category to rebound significantly. TOT revenue had increased to $16.3 million, an increase of
$4.2 million, or 34.7%, from $12.1 million in the prior year. Total TOT receipts have almost
returned to pre-pandemic levels, but there is still some lag in business travel.
Revenue from Property Taxes in Lieu, otherwise known as the California Vehicle Licensing
Fee (VLF), had decreased to $8.8 million in FY 2022-23 from $12 million in the prior year, a
decrease of $3.2 million or 26.7%. This is a volatile revenue source that is difficult to predict,
and the decrease was partially due to a change in the ratio of basic aid to non-basic aid school
districts in San Mateo County which affects the availability of VLF.
Total program revenues from the City’s Enterprise Funds increased slightly by $0.7 million,
or 2.0% to $35.9 million from $35.2 million in the prior year. This was largely due to the
recovery of sewer services charge revenues resulting from the reopening of businesses and
more workers returned to work. The City’s Parking Enterprise experienced a $0.07 million, or
6.9%, increase in revenues to $1.06 million in FY2022-23 compared to $0.99 million in the
prior year due to a higher level of parking activities as consumers returned to the City following
removal of pandemic-related restrictions.
6 280
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report (ACFR) is in six parts:
1)The Introductory Section, which includes the Transmittal Letter and general information;
2) Management’s Discussion and Analysis;
3)The Basic Financial Statements, which include the Government-wide and the Fund
Financial Statements, along with the notes accompanying these statements;
4)Required Supplementary Information and the accompanying notes;
5)Other Supplementary Information including combining statements for non-major
governmental funds, internal service funds, custodial funds, and other budgetary
information; and
6)The Statistical Section.
Basic Financial Statements
The Basic Financial Statements are comprised of the City-wide Financial Statements and the Fund
Financial Statements. These two sets of financial statements provide two different views of the
City’s financial activities and financial position.
The City-wide Financial Statements provide a longer-term view of the City’s activities as a whole
and consist of the Statement of Net Position and the Statement of Activities. The Statement of Net
Position provides information about the financial position of the City as a whole, including all its
capital assets and long-term liabilities on a full accrual basis, similar to the basis used by
corporations. The Statement of Activities provides information about all the City’s revenues and
all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or
expenses of each of the City’s programs. The Statement of Activities provides a detailed
explanation of the change in net position for the year.
All the amounts in the Statement of Net Position and the Statement of Activities are separated into
Governmental Activities and Business-type Activities in order to provide a summary of these two
distinct activities of the City.
The Fund Financial Statements report the City’s operations in more detail than the government-
wide statements. The Governmental Fund Financial Statements focus primarily on the short-term
activities of the City’s General Fund and other Major Funds and measure only current revenues,
expenditures, and fund balances; they exclude capital assets, long-term debt, and other long-term
amounts. The Proprietary Fund Financial Statements focus on the Business-Type “enterprises” of
the City, i.e. activities that are accounted for in a similar way to private sector organizations using
the full accrual basis, thereby including both short-term and long-term elements.
7 281
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Major Funds account for the major financial activities of the City and are presented individually,
while the activities of non-Major funds are presented in summary, with subordinate schedules
presenting the details for each of these other funds.
The Fiduciary Fund Financial Statements provide financial information about the activities of
Non-Obligated Assessment Districts, for which the City acts solely as agent.
Note 1 to the Basic Financial Statements provides a summary of the City’s significant accounting
policies, fund categories, and fund types.
City-wide Financial Statements
The Statement of Net Position and the Statement of Activities present information about the
following:
Governmental activities - All the City’s basic services are considered to be governmental
activities, including General Government, Fire, Public Works, Parks and Recreation, Library,
and Economic and Community Development. These services are supported by general City
revenues such as taxes and by specific program revenues from grants, contributions, and fees.
The City’s Governmental Activities also include the City of South San Francisco Capital
Improvements Financing Authority and South San Francisco Public Facilities Financing
Authority, as the City Council also governs these entities.
Business-Type Activities - All the City’s enterprise activities are reported here, including
Wastewater treatment (or Sewer), Parking, and Storm Water management. Unlike
Governmental services, user fees fully support most of these services.
Component Unit - The City of South San Francisco Conference Center Authority comprises
the component unit. The Authority serves the City and other interests, and it has a governing
body separate from the City Council.
City-wide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole and account for revenues when due and
expenses when incurred.
8 282
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most
significant funds, called Major Funds. Each Major Fund is presented individually, with all non-
Major Funds summarized and presented only in a single column. Subordinate schedules present
the details of these non-Major funds. Major Funds present the major activities of the City for the
year and may change from year to year because of changes in the pattern of City activities. Fund
Financial Statements include governmental, enterprise and internal service funds as discussed
below.
Governmental Fund Financial Statements are prepared on the modified accrual basis, which means
they measure only current financial resources and uses. Capital assets and other long-lived assets,
along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.
Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis
and include all their assets, liabilities, and deferred outflows/inflows of resources, current and
long-term.
Since the City’s Internal Service Funds provide goods and services only to the City’s governmental
and business-type activities, their activities are reported only in total at the fund level. Internal
Service Funds may not be Major Funds because their revenues are derived from other City funds.
These revenues are eliminated in the city-wide financial statements and any related profits or
losses are returned to the activities which created them, along with any residual net position of the
Internal Service Funds.
Comparisons of Budget and Actual financial information are required in the Basic Financial
Statements only for the General Fund and other Major Funds that are Special Revenue Funds.
Fiduciary Fund Financial Statements
The City is the agent for certain assessment districts, holding amounts collected from property
owners which await transfer to these Districts’ bond trustees. The City’s fiduciary activities are
reported in the separate Statement of Fiduciary Net Position and the Statement of Changes in
Fiduciary Net Position. These activities are excluded from the City’s other financial statements
because the City cannot use these assets to finance its own operations.
FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
The following analyses focus on the net position and changes in the City’s Governmental
Activities (Tables 1 through 3, and Chart 1) and Business-Type Activities (Tables 4 and 5), which
are presented in the city-wide Statement of Net Position and Statement of Activities. The
comparative results for FY 2022-23 are presented versus FY 2021-22.
9 283
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Governmental Activities
Net position may serve over time as a useful indicator of the City’s financial condition. Table 1
below shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2023 for Governmental Activities:
Governmental Net Position
Table 1
Governmental Net Position as of June 30
(In Millions)
Increase / (Decrease)
2023 2022 Amount %
Cash and investments 285.8$ 239.8$ 46.0$ 19.2%
Other assets 117.0 201.9 (84.9) (42.1%)
Capital assets 532.7 465.7 67.0 14.4%
Total assets 935.5 907.4 28.1 3.1%
Total outflows of resources 64.6 28.8 35.8 124.3%
Total outflow of resources 64.6 28.8 35.8 124.3%
Long‐term debt outstanding 219.0 223.8 (4.8) (2.1%)
Other liabilities 331.4 253.4 78.0 30.8%
Total liabilities 550.4 477.2 73.2 15.3%
Deferred inflows of resources 15.4 62.1 (46.7) (75.2%)
Total deferred inflow of resources 15.4 62.1 (46.7) (75.2%)
Net position:
Net investment in capital assets 390.8 384.8 6.0 1.6%
Restricted 130.1 139.0 (8.9) (6.4%)
Unrestricted (86.6)(127.0)40.4 (31.8%)
Total net position 434.3$ 396.8$ 37.5$ 9.5%
10 284
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
As shown in table 1, the total net position for Governmental Activities increased by $37.5 million
in FY 2022-23 compared to the prior year, reflecting significant increases in assets. Cash and
investments increased by $46 million. Other assets, which includes receivables, properties held
for redevelopment, and restricted cash and investments, decreased by $84.9 million due to
reduction of the restricted cash, which represented the bond proceeds for capital assets such as the
Civic Campus and Orange Memorial Park that were completed in October 2023. Capital assets
increased by $67 million due to capitalization of new Police Station and other bond funded street
projects.
Pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years,
recognized the Net OPEB liability of $58.4 million and Net Pension Liability of $207.4 million
attributable to Governmental Activities.
11 285
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
The following table shows the changes in net position for Governmental Activities:
Table 2
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Increase / (Decrease)
2023 2022 Amount %
Revenues
Program revenues:
Charges for services 53.4$ 66.7$ (13.3)$ (19.9%)
Operating grants and contributions 12.9 10.9 2.0 18.3%
Capital grants and contributions 2.0 3.3 (1.3) (39.4%)
Total program revenues 68.3$ 80.9$ (12.6)$ (15.6%)
General revenues:
Taxes:
Property taxes 47.7$ 40.0$ 7.7$ 19.3%
Sales taxes 37.7 38.1 (0.4) (1.0%)
Transient occupancy taxes 16.3 12.1 4.2 34.7%
Other taxes 13.4 11.5 1.9 16.5%
Property taxes in lieu 8.8 12.0 (3.2) (26.7%)
Investment earnings 5.1 (6.7) 11.8 (176.1%)
Miscellaneous 19.1 16.0 3.1 19.4%
Total general revenues 148.1$ 123.0$ 25.1$ 20.4%
Total revenues 216.4$ 203.9$ 12.5$ 6.1%
Expenses
General government 25.0$ 20.8$ 4.2$ 20.2%
Fire department 36.9 28.5 8.4 29.5%
Police department 37.9 35.7 2.2 6.2%
Public Works 21.9 7.5 14.4 192.0%
Parks and Recreation 23.5 19.5 4.0 20.5%
Library 6.6 6.1 0.5 8.2%
Economic and Community Development 12.9 12.0 0.9 7.5%
Interest on long‐term debt 6.9 4.7 2.2 46.8%
Total expenses 171.6$ 134.8$ 36.8$ 27.3%
Excess / (deficiency) before transfers 44.8$ 69.1$ (24.3)$ (35.2%)
Special Item (5.2) (3.0) (2.2) 73.3%
Transfers (2.1) (1.4) (0.7) 50.0%
Change in net position 37.5 64.7 (27.2) (42.0%)
Net position ‐ beginning 396.8 332.1 64.7 19.5%
Net position ‐ ending 434.3$ 396.8$ 37.5$ 9.5%
12 286
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
As shown in table 2, total Governmental revenues (excluding transfers and special items) increased
by $12.5 million, or 6.1%, compared to the prior year. The increase was due to higher investment
earnings. However, the increase was offset by a decrease in Charges for services largely resulting
from significant reduction in impact fees collected during this fiscal year. These are fees paid by
developers on new development projects within the City and revenue levels can vary depending
on the timing of such projects. On the other hand, the Charges for Services from facility rentals,
and childcare and aquatic programs offered by the City during the year were higher due to the
City’s recovery from the COVID-19 pandemic. The recovery also gave rise to a $4.2 million
increase in TOT as travel restrictions were removed, hotel occupancy rates increased, and
consumer spending patterns normalized. There was also an increase in the property tax primarily
due to a continued strong real estate market and also from receipt of a higher tax allocation from
the Successor Agency. However, a decrease in revenue was also seen in Property taxes in lieu
($3.2 million), otherwise known as the California Vehicle Licensing Fee (VLF) due to a change
in the ratio of basic aid to non-basic aid school districts in San Mateo County which affects the
availability of VLF. Investment earnings rose by $11.8 million to 5.1 million, compared to the
prior year, due to a continued rising in interest rates. The annual mark-to-market adjustment
required by Governmental Accounting Standards Board (GASB) accounting standard #31 results
in the recognition of this temporary change in value of the City’s investments.
13 287
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Chart 1 shows the distribution of revenues from Governmental Activities by category.
Chart 1
Revenues by Source - Governmental Activities FY 2022-23
Governmental program expenses increased by $36.8 million, or 27.3%, in comparison to the prior
year. Increases were seen in almost all the departments partially due to higher salary and benefit
costs as positions were unfrozen during the year but also due to increased spending on operational
supplies in response to expanded public services provided as the City continued to recover from
the pandemic. Interest on long-term debt increased to $6.9 million, from $4.7 million in the prior
year, due to repayments that began on the 2022A bonds which were issued to pay for construction
of the Aquatic Center.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Table 3 illustrates the difference between program revenues and program expenses. Program
revenues consist of capital and operating grants and contributions, and fees for services. General
City revenues, such as property taxes, sales taxes, transient occupancy taxes, licenses and permits,
and investment earnings, cover the shortfall between program revenues and program expenses.
Table 3
Net (Expense) / Revenue from Services
Governmental Activities
(In Millions)
In FY 2022-23, the net expense for governmental activities increased by $49.4 million from $53.9
million to $103.3 million, due to a $36.8 million increase in Governmental program expenses, as
previously discussed, and a $12.6 million decrease in program revenues primarily in charges for
services which included reduction in developer impact fees.
Increase / (Decrease)
2023 2022 Amount %
General government (12.9)$ (11.2)$ (1.7)$ 15.2%
Fire department (27.6) (20.7) (6.9) 33.3%
Police department (34.7) (32.0) (2.7) 8.4%
Public works department (3.1) 17.3 (20.4) (117.9%)
Recreation and community services (19.1) (15.9) (3.2) 20.1%
Library (5.7) (4.4) (1.3) 29.5%
Economic and community development 6.7 17.7 (11.0) (62.1%)
Interest on long‐term debt (6.9) (4.7) (2.2) 46.8%
Total (103.3)$ (53.9)$ (49.4)$ 91.7%
15 289
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Business-Type Activities
Table 4 shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2023 for Business-Type Activities:
Table 4
Business-type Net Position at June 30 (in Millions)
The total net position for Business-Type Activities increased by $5 million, or 3.6%, compared to
the prior year. Total assets increased slightly by $1.8 million, or 0.8%, reflecting decreases of
capital assets related primarily to regular depreciation. This was offset somewhat by higher cash
balances due to an additional $6.6 million loan drawdown from State Water Resources Board loan
and a lower receivables balance. Total liabilities, on the other hand, increased by $5.8 million due
to a higher accounts payable balance at year end and a $5.1 million higher net pension liability
due to substantial investment losses during the measurement period.
Increase / (Decrease)
2023 2022 Amount %
Cash and Investments 32.3$ 25.0$ 7.3$ 29.2%
Other assets 3.2 5.1 (1.9) (37.3%)
Capital assets 192.8 196.4 (3.6) (1.8%)
Total assets 228.3 226.5 1.8 0.8%
Deferred outflows related to pension/OPEB 7.1 3.2 3.9 121.9%
Total Deferred outflows of resources 7.1 3.2 3.9 121.9%
Long‐term liabilities outstanding 55.7 57.5 (1.8) (3.1%)
Other liabilities 36.7 29.1 7.6 26.1%
Total liabilities 92.4 86.6 5.8 6.7%
Deferred inflows related to pension/OPEB 0.2 5.3 (5.1) (96.2%)
Total deferred inflows of resources 0.2 5.3 (5.1) (96.2%)
Net position:
Net investment in capital assets 132.8 133.6 (0.8) (0.6%)
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 10.1 4.3 5.8 100.0%
Total net position 142.9$ 137.9$ 5.0$ 3.6%
16 290
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Similar to Governmental Activities and pursuant to GASB 75 and GASB 68 requirements,
respectively, the City, as in prior years, recognized the Net OPEB liability of $6.5 million and Net
Pension Liability of $23 million attributable to Business-Type Activities.
Table 5 below shows the changes in net position for Business-Type Activities:
Table 5
Change in Business-Type Activities Net Position
(In Millions)
Expenses from Business-Type Activities in FY2022-23 increased by $4.7 million to $33.4 million
while total revenues (program and general revenues combined) increased slightly, by $0.7 million
to $35.9 million. The total change in net position was an increase of $5 million after transfers
compared to the $7.1 million increase in net position in the prior year. Despite revenues remaining
stable in FY2022-23 and positive investment earnings, control of expenses and reduced transfers
out to other funds helped to ensure an increase in net position, albeit a lower increase than in the
prior year.
Increase / (Decrease)
2023 2022 Amount %
Expenses
Sewer Enterprise 30.6$ 26.2$ 4.4$ 16.8%
Parking District 1.3 1.2 0.1 8.3%
Storm Water 1.5 1.3 0.2 15.4%
Total expenses 33.4 28.7 4.7 16.4%
Revenues
Program Revenues
Charges for Services 25.4 24.2 1.2 5.0%
Operating and Capital grants and contributions 10.5 11.0 (0.5) (4.5%)
Total program revenues 35.9 35.2 0.7 2.0%
General revenues
Investment earnings 0.3 (0.8) 1.1 (137.5%)
Total general revenues 0.3 (0.8) 1.1 (137.5%)
Excess (deficiency) before transfers 2.8 5.7 (2.9) (50.9%)
Transfers 2.2 1.4 0.8 57.1%
Change in net position 5.0 7.1 (2.1) (29.6%)
Net position ‐ beginning 137.9 130.8 7.1 5.4%
Net position ‐ ending 142.9$ 137.9$ 5.0$ 3.6%
17 291
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable
resources. Such information can be helpful in determining the City’s financial condition.
Unrestricted fund balance is a major indicator of designated and uncommitted resources available
for spending in future fiscal years.
At June 30, 2023, the City’s Governmental Funds reported combined fund balances of $312.0
million, a decrease of $31.6 million, or 9.21%, compared to the prior year. This was primarily due
to near completion of the bond funded capital improvement projects such as Civic Campus, Orange
Memorial Park and Street Projects. The General Fund ending fund balance, which includes
Measure W, was $88.6 million, reflecting an increase of $12 million, or 15.5%, over the prior year
primarily due to stronger revenues in most major revenue categories but also due to expenditures
being rolled over to next year.
Total Governmental Fund revenues (excluding transfers and special items) increased by $12.9
million, or 6.4%, from $201.8 million to $214.7 million, with increases in all categories except
sales tax and property taxes in lieu. City saw a steady increase of property taxes due to strong real
estate market, and investment earnings due to continue climbing interest rates and transient
occupancy taxes rebound from lifting of the travel restriction.
Total Governmental Fund expenditures (excluding transfers and special items) decreased by $3.0
million, or 1.3%, from $236.3 million in the prior year to $233.3 million in FY 2022-23. Most
departments saw increases in expenditures as public services expanded during the year as the
recovery from the pandemic continued, higher costs of materials and supplies due to high inflation.
Personnel costs remained high as a result of annual salary adjustment and increase in headcounts.
Debt service increased by $3.2 million due to principal and interest repayment beginning for the
2022A bond issuance.
Comparison of General Fund Final Budgets to Original Adopted Budget
The budget is initially adopted by the City Council in June, based on revenue projections that are
up to date through May. Between May and the end of the fiscal year, there can be major
fluctuations in revenues depending on the economy and/or actions by the State of California. There
can also be significant changes to departmental expenditure budgets to the extent unforeseen
expenditures occur. In the Fund Financial Statements, the page titled “Statement of Revenues,
Expenditures, and Changes in Fund Balances Budget and Actual” later in this document shows
the initial adopted and final budgets for the General Fund (including Measure W). Changes
between the adopted and final budgets are shown and explained in Table 6:
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted
Budget (in Thousands)
Table 6
Original Final Pct Discussion:
Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance)
Property taxes 43,805$ 45,805$ 2,000$ 4.6%
Sales taxes 34,791 36,191 1,400 4.0%
Transient occupancy taxes 11,161 14,161 3,000 26.9%
This revenue stream, most impacted by the pandemic imposed
travel restrictions, has demonstrated strong recovery, which led
to a $3M upward budget revision during mid-year budget cycle.
Other taxes 4,893 5,693 800 16.3%
Other taxes includes real property transfer tax, business license
and commercial parking tax. Revenue streams from new
business startups and traffic to the City continues to strengthen,
which led to increase in upward budget revision
Franchise Fee 4,600 4,600 -
Intergovernmental 2,845 4,337 1,492 52.4%
Reflects multiple federal, state and local grants applied for during
the year, adjustments for Dept of Toxic Substance Control grant,
grants to enhance Fire Department security, the Economic
Advancement Center and various other projects.
Interest and rentals 5,453 5,453 -
Licenses and permits 15,500 19,425 3,925 25.3%
Revenue from building and electric has demonstrated significant
rebound from pandemic, which led to upward budget adjustment
during mid-year.
Charges for services 8,799 8,265 (534) -6.1%
A decrease in projections for Planning division had led to a
decision to revise the budget downwards during the mid-year
review
Fines and forfeitures 711 711 -
Other 259 279 20 7.7%The increase was due to receiving support from San Mateo
County for City's Promotores Program
Total 132,817$ 144,920$ 12,103$ 9.1%
Original Final Pct Discussion:
Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance)
City Council 259$ 260$ 1$ 0.4%
City Clerk 1,143 1,154 11 1.0%
City Treasurer 167 168 1 0.6%
City Attorney 940 940 -
City Manager 4,927 5,736 809 16.4%Increase due to receipt of DTSC grant and purchase order roll
over.
Finance 3,893 4,405 512 13.2%
Accounts for various purchase orders carried over from the
previous FY, e.g. ERP replacement project and other consultant
services.
Non-Departmental 1,544 2,153 609 39.4% Increase due to contributing additional Pension UAL payment
Human Resources 2,518 2,684 166 6.6% Roll over of purchase orders related to summer youth program
Economic and Community
Development 8,908 15,610 6,702 75.2%
Roll over of purchase orders from the previous year for plan
review and building inspection services, General Plan update
and work related to the Economic Advancement Center and
Lindenville PDA
Fire 31,313 33,425 2,112 6.7%Increase due to funding for Fire boat purchase, Incentive Pay and
increase in GEMT IGT Program
Police 32,958 34,511 1,553 4.7%
Public Works 7,121 8,604 1,483 20.8%Increase was due to approval of purchase for Mini Street
Sweeper and additional consultant costs
Library 6,706 7,274 568 8.5%Adjustments for appropriations of multiple state and local grants
received for Library programs
Parks and Recreation 19,608 22,873 3,265 16.7%
Adjustments for appropriations of various projects such as
ballfield restrooms repairs, tennis courts repavement, Orange
Memorial Park Basketball court maintenance, Telia Senior
Center repair.
Total 122,005$ 139,797$ 17,792$ 14.6%
19 293
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Analysis of Major Governmental Funds
General Fund
In FY 2022-23, total General Fund revenues, excluding transfers in, were $162.1 million which
was $18.1 million, or 12.6% higher than the final amended budget. Total General Fund
expenditures, excluding transfers out and including encumbrances, ended FY 2022-23 at $133.9
million which was $5.5 million, or 4.1%, lower than the final budget due to carryover of a
significant number of purchase orders.
As of June 30, 2023, the General Fund total fund balance was $88.6 million, $16.8 million of
which was attributable to Measure W. Of the remaining fund balance, $29.3 million was held in
reserve in accordance with city policy which is aligned with the Governmental Finance Officers
Association (GFOA) recommended reserve practice of between 15-20 percent of General Fund
operating revenue. The remaining $42.5 million was held in designation/reserve accounts for
various purposes including unassigned fund balance (available for operational use), encumbrances
(committed expenditure items), capital projects and land held for development.
Revenues. Property tax collections in FY 2022-23 were $54 million, which was $8.2 million or
17.9% over final budget. primarily due to the continued strong real estate market and also from
receipt of a higher tax allocation from Successor Agency.
Sales tax revenue, including Measure W, was $37.3 million, which was $1.1 million or 3% over
final budget, reflecting steady consumer spending with high inflation price.
Transient occupancy taxes totaled $16.4 million for the year, which was $3.6 million, or 15.5%,
over the final budget. This category was budgeted conservatively due to the expected lingering
impacts of the pandemic on the hospitality industry seen in the prior year. However, travel
rebounded quickly leading to high hotel occupancy rates and considerably higher final collections
than budget. By way of contrast, pre-pandemic TOT levels were approximately $17 million
(FY2018-19).
Intergovernmental revenues were $3.6 million which was $0.8 million, or 18.6%, lower than final
budget mainly due to the timing of receipt of various grants, many of which are on a reimbursement
basis so it depends on progress of projects during the year.
Licenses and permits revenues were $20.5 million, which was $1 million, or 5% higher than the
final budget. This category can be very difficult to budget since receipts depend on the timing of
development projects within the City.
Charges for services were $11.7 million, which was $3 million or 34.78% above budget. This
category was revised downward during the mid-year review due to lower-than-expected receipts
at the time for classes, rentals and child care but the year ended much stronger than expected and
exceeded the original budget.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Measure W revenue increased slightly from $15.4 million in FY2021-22 to $15.6 million in FY
2022-23 and exceeded budget by $1.9 million primarily due to the City’s prudent budget approach
to the volatile revenue category.
Expenditures. Higher than expected expenditures in the Fire department are primarily payroll-
related, particularly in overtime due to regular staff working additional hours to cover unfilled
vacancies. To a lesser extent, the Police department also saw payroll-related expenditures exceed
budget, but this was partially offset by underspends in supplies and services. The Non-
Departmental category was over budget due to a one-time extra contribution to pension obligation
fund. These overspends were offset by savings in other departments, including Finance, Library
and Economic and Community Development. Compared to the prior year, General Fund
expenditures, excluding transfers and including encumbrances, increased from $129.2 million to
$142.3 million. This was driven by the recovery from the pandemic and the commensurate return
to a more normal level of services to residents which led to more staffing and operational
expenditures. Versus the final budget, the General Fund ended the year with a $1.7 million
unfavorable variance.
American Rescue Plan Act Fund
In response to the COVID-19 pandemic, the federal government passed the American Rescue Plan
Act (ARPA) in March 2021 which included financial aid to be provided to cities. The City of
South San Francisco was awarded $12.3 million in ARPA funds, received in two equal tranches
in June 2021 and June 2022. During FY 2022-23, $2 million was transferred to the General Fund
to replace revenues lost as a direct result of pandemic impacts. ARPA funds are held as unearned
revenue on the balance sheet, netting off against the cash balance, and recognized as revenue as
project expenditures are incurred. This results in a zero-fund balance at year end.
Capital Improvement Funds
The City consolidates and reports its governmental fund-type capital project expenditures in these
funds. Resources consist of transfers from the General Fund, Major and non-Major funds,
developer impact fees, and gasoline taxes and transportation sales taxes from non-Major
governmental funds. Resources also come from federal, state, and local grants, contributions from
other cities, utilities and private developers. From time to time and when financially feasible and
prudent to do so, the City issues bonds which generate proceeds for large-scale public facility
projects.
The Capital Improvement Fund consists of 1) regular capital projects 2) Bond funded Street
Projects ($12.4 million) and 3) Bond funded Solar Projects ($4 million). The decrease in fund
balance for this fund was mainly due to draw down from bond proceeds to fund the streets projects.
21 295
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
The reduction in fund balance of $35 million and $12 million for the Capital Improvement for
Civic Campus and Orange Memorial Park, respectively, also resulted from significant drawdowns
from the bond proceeds for these projects. Civic Campus and Orange Ballfield were both opened
in the fall of 2023.
Entire capital projects are appropriated in one-year, but expended over multiple years, with
unspent appropriations carried forward year-to-year until completion. In FY 2022-23, combined
ending fund balance for Capital Improvement Funds was $86.6 million which decreased $63.2
million from the combined ending fund balance of $149.7 million in the prior year. As mentioned
above, the decrease was due to the spending down of previous bond proceeds as the new Police
Station was completed during the year, the Civic Center Campus and the Capital Improvement
Orange Memorial Park Projects were completed in the fall of 2023.
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
It’s worth noting that impact fee funds, presented as non-major funds, received considerable
developer payments during the year owing to the high level of development activity in the City.
This includes $7.4 million in Commercial Linkage Impact Fees which will be used to provide
affordable housing and to support the City’s adopted 2015-2023 Housing Element, and $6.6
million in Oyster Point Development Impact Fees to be used for interchange projects in the Oyster
Point area. Also worth noting is that the city received $9 million as a Community Benefit for
building the New Fire Station.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers) of $30.1 million in FY2022-23, an increase of $1.7 million, or 6.0%, from
$28.4 million in the prior year. This increase in revenue is more water usage and therefore larger
sewer effluent volumes on which service charges are based. In addition, the revenue increase was
due to Other Cities increase in participation of Operating and Maintenance Cost sharing.
Operating expenses increased $2.1million, or 8.0%, from $ 25.8 million to $27.9 million, due to
higher payroll-related expenses.
22 296
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Parking District Fund
In FY 2023, the Parking District fund reported an operating loss (before non-operating revenues
and operating transfers) of $0.2 million which was similar to the loss in the prior year of $0.2
million. Operating revenues increased by $0.7 million, or 7.0%, from $1.0 million to $1.1 million,
primarily due to increased usage of parking meters as businesses opened up as the City continued
to recover from the pandemic and shoppers returned in their cars to the downtown area. Operating
expenses increased by $0.1 million, or 9%, from $1.2 million to $1.3 million due to higher program
supplies.
Storm Water Fund
The Storm Water Fund is used to account for resources needed to fund storm drain and storm
infrastructure operations, maintenance, capital replacement, and compliance with various federal
and state regulations regarding storm water runoff. Revenues totaled $0.4 million, which is flat
compared to the prior year, primarily from a levy on property owners. Transfers in from other
funds totaled $2.5 million - $0.3 million from the General Fund, $0.7 million from non-Major
Governmental Funds, and $1.5 million from the Infrastructure Reserve Fund. Operating expenses
in this fund totaled $1.5 million, an increase of $0.2 million, or 12.0%, from $1.3 million in the
prior year, primarily due to higher payroll-related expenditures. Net position increased $1.7
million from $16.8 million to $18.6 million, largely due to transfers in.
CAPITAL ASSETS
Generally accepted accounting principles require the City to add infrastructure to its reportable
capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety
devices. The City has successfully reported on the depreciated value of all such assets acquired or
built since 1980. The City reports the depreciated book value of other types of capital assets such
as buildings, land, equipment and furniture, on the City-wide Statement of Net Position. Such
information is summarized below and is more completely detailed in Note 3 to the Basic Financial
Statements. The City depreciates all of its capital assets, except land and construction in progress.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
At June 30, 2023, the City had $725.5 million in capital assets (as shown in table 7 below), net of
depreciation, representing a substantial increase of $63.4 million from the prior year, driven
primarily by in-progress construction projects such as the new Civic Center Campus and the
completion of the new Police Station.
The City’s various capital asset types used in Governmental and Business-Type Activities, are
illustrated in Table 7:
Table 7
Capital Assets (in Millions) at June 30
Increase / (Decrease)
2023 2022 Amount %
Governmental Activities:
Land 72.2$ 72.2$ ‐$ 0.0%
Buildings and improvements 150.6 97.4 53.2 54.6%
Equipment and vehicles 25.9 24.8 1.1 4.4%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure ‐ streets 208.3 205.6 2.7 1.3%
Infrastructure ‐ traffic control devices 12.6 12.6 0.0 0.0%
Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0%
Construction in progress 260.9 241.9 19.0 7.9%
Less accumulated depreciation (209.3) (200.3) (9.0) 4.5%
Totals 532.7$ 465.7$ 67.0$ 14.4%
Business‐Type Activities
Land 0.8$ 0.8$ ‐$ 0.0%
Buildings and improvements 80.1 80.1 0.0 0.0%
Clean water facilities and transmission line 79.9 79.9 0.0 0.0%
Infrastructure ‐ storm drains 6.2 6.2 0.0 0.0%
Infrastructure ‐ streets 7.4 7.4 0.0 0.0%
Equipment and vehicles 18.5 18.5 0.0 0.0%
Construction in progress 86.2 84.0 2.2 2.6%
Less accumulated depreciation (86.3) (80.5) (5.8) 7.2%
Totals 192.8$ 196.4$ (3.6)$ (1.8%)
Total City 725.5$ 662.1$ 63.4$ 9.6%
24 298
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
DEBT ADMINISTRATION
Each of the City’s debt issuances is discussed in detail in Note 5 to the Basic Financial Statements.
A summary of the City’s outstanding debt for the past two fiscal years is shown in table 8
(excluding unamortized bond premiums):
Table 8
Outstanding Debt
(In Millions) at June 30
In June 2022, the City of South San Francisco Public Facilities Financing Authority issued $65.4
million in lease revenue bonds, Series 2022A, for the construction of the new Aquatic Center and
ballfields, and the replacement of the playground and two bridges over Colma Creek at Orange
Memorial Park. The City received a total of $72.1 million in proceeds from this issuance, of which
$49 million, $12.3 million, $2.2 million and $1.5 million was allocated to the four projects
respectively, and $7.1 million reserved for capitalized interest and fees.
The decrease of $2.7 million in Business-Type Activities outstanding debt stems from the
drawdown of an additional $6.6 million State Water Resources Board loan and the retirement of
$5.3 million during FY 2022-23. There was also a forgiveness of $4 million in State Water
Resources Board Loan.
The largest remaining debt obligations are as follows:
-2004, 2008, 2018 State Water Resources Control Board Loans – Original debt:
$83,826,034; 1.8% to 2.5% interest rate; due 4/30/26, 7/15/28, 10/3/42. These loans
were used to improve and expand the City’s Water Quality Control Plant (WQCP).
Loan proceeds were issued as projects progressed. Debt service payment commenced
one year after project completion. WQCP user fees support the debt service payments.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the two of the three current loans.
Increase / (Decrease)
Governmental Activities 2023 2022 Amount %
Lease Revenue Bonds 188.4$ 191.6$ (3.2)$ 100.0%
Plus: Unamortized Bond Premium 31.8 33.2 (1.4) 100.0%
Loan payable to Successor Agency 2.1 2.2 (0.1) (4.5%)
Capital leases 0.0 0.1 (0.1) (100.0%)
Total Governmental Activities Outstanding Debt 222.3$ 227.1$ (4.8)$ (2.1%)
Business‐type Activities
State Water Resources Board loans 58.4$ 60.8$ (2.4)$ (3.9%)
2005 Sewer Bonds 1.6 2.0 (0.4) (20.0%)
Total Business‐type Activities Outstanding Debt 60.0$ 62.8$ (2.8)$ (4.5%)
25 299
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
-2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received:
$10,242,530; 4 - 5% interest rate; due June 1, 2046. The bonds were used for Phase I
of the Civic Center Campus project consisting of the planning and construction of a
new Police Station and Dispatch Center for the City of South San Francisco. Measure
W sales tax revenue will fund the repayments.
-2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received:
$18,116,565; 4% interest rate; due June 1, 2046. $78,000,000 of the bond proceeds
are to be used for Phase II of the Civic Center Campus project consisting of the design
and construction of the new library, parks and recreation center, council chambers
and landscaping of the immediate surrounding area. $24,000,000 will be used for road
pavement rehabilitation throughout the City, and $2,000,000 will be used for solar
roof installation at the City's Corporation Yard. Measure W sales tax revenue will
fund the repayments.
-2022A Lease Revenue Bonds - Original debt: $65,420,000; premium received:
$6,686,317; 4-5.25% interest rate; due June 1, 2046. $49,000,000 of the bond
proceeds are to be used for construction of the new Aquatic Center. $12.3 million will
be used for construction of new ballfields. $2.2 million will be used for replacement
of the playground at Orange Memorial Park. $1.5 million will be used for the
replacement of two bridges over Colma Creek at Orange Memorial Park. Measure W
sales tax revenue will fund the repayments.
ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS
The economic outlook and major accomplishments of the City are discussed in the accompanying
Transmittal Letter.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide readers with a general
overview of the City’s finances. Questions about this report or requests for additional financial
information should be addressed to the City of South San Francisco, Finance Department, P.O.
Box 711, South San Francisco, CA 94083.
26 300
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position.
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of
resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of
the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets
and deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-Type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared
on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follow these with
the expenses of its business-type activities. Program revenues—that is, revenues which are generated
directly by these programs—are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the
City of South San Francisco Public Facilities Financing Authority that are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely
presented component unit of the City. This data is presented separately from other funds of the City to
reflect operations under control of a governing body with a voting majority which is different from the
City Council.
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302
Component Unit
Primary Government South San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
ASSETS
Cash and investments (Note 2) $285,835,659 $32,286,454 $318,122,113 $3,882,598
Receivables:
Accounts 17,519,645 2,878,072 20,397,717 354,694
Accrued interest 1,378,841 134,495 1,513,336
Loans 1,192,998 1,192,998
Due from Conference Center 56,072 56,072
Leases (Note 10)13,940,969 13,940,969
Deposits 309,790 309,790 38,504
Inventory 574 574
Prepaid items 1,358,284 1,358,284
Restricted cash and investments (Note 2)78,368,796 192,775 78,561,571
Properties held for redevelopment (Note 1O)2,823,118 2,823,118
Capital assets (Note 3):
Nondepreciable 333,152,532 86,985,388 420,137,920
Depreciable, net accumulated depreciation 199,550,902 105,837,920 305,388,822 2,818,855
Total Assets 935,488,180 228,315,104 1,163,803,284 7,094,651
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)57,019,161 6,267,907 63,287,068
Related to OPEB (Note 9)7,615,537 846,171 8,461,708
Total Deferred Outflows of Resources 64,634,698 7,114,078 71,748,776
LIABILITIES
Accounts payable 12,796,196 753,939 13,550,135 270,580
Accrued salaries and benefits 2,697,253 2,697,253 74,573
Accrued interest payable 683,778 764,499 1,448,277
Other payables 9,417,825 244,732 9,662,557
Deposits payable 3,975,795 7,500 3,983,295 311,700
Unearned revenue 6,328,095 48,942 6,377,037
Accrued insurance losses (Note 12):
Due within one year 3,381,062 3,381,062
Due in more than one year 13,903,000 13,903,000
Compensated absences obligation (Note 1M):
Due within one year 6,059,221 656,200 6,715,421
Due in more than one year 3,084,074 281,449 3,365,523
Debt and lease financing obligations (Note 5):
Due within one year 3,320,000 4,368,201 7,688,201
Due in more than one year 218,955,229 55,698,877 274,654,106
Lease liability (Note 10):
Due within one year 359,990
Due in more than one year 1,699,888
Net pension liability - due in more than one year (Note 7) 207,355,558 23,039,506 230,395,064
Net OPEB Liability - due in more than one year (Note 9) 58,421,069 6,491,230 64,912,299
Total Liabilities 550,378,155 92,355,075 642,733,230 2,716,731
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7) 937,798 104,200 1,041,998
Related to OPEB (Note 9) 1,035,207 115,023 1,150,230
Related to leases (Note 10) 13,436,558 13,436,558
Total Deferred Inflows of Resources 15,409,563 219,223 15,628,786
NET POSITION (Note 6)
Net investment in capital assets 390,845,692 132,756,230 523,601,922 758,977
Restricted for:
Debt service
Special revenue projects 53,688,315 53,688,315
Capital projects 73,613,451 73,613,451
Redevelopment and community development activities 2,823,118 2,823,118
Total Restricted Net Position 130,124,884 130,124,884
Unrestricted (86,635,416) 10,098,654 (76,536,762) 3,618,943
Total Net Position $434,335,160 $142,854,884 $577,190,044 $4,377,920
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2023
29 303
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $24,977,978 $9,249,087 $2,830,103
Fire 36,852,200 9,231,756 19,969
Police 37,885,983 2,299,209 904,914
Public Works 21,880,934 9,071,365 7,901,412 $1,772,530
Parks and Recreation 23,539,372 3,927,532 553,268
Library 6,639,706 60,300 584,404 258,821
Economic and Community Development 12,923,609 19,532,657 125,590
Interest on long term debt 6,891,224
Total Governmental Activities 171,591,006 53,371,906 12,919,660 2,031,351
Business-type Activities
Sewer 30,654,615 23,891,045 6,237,114 4,000,000
Parking District 1,272,157 1,062,751
Storm Water 1,460,610 418,583 276,151
Total Business-type Activities 33,387,382 25,372,379 6,237,114 4,276,151
Total Primary Government $204,978,388 $78,744,285 $19,156,774 $6,307,502
Component Unit
Conference Center $3,385,350 $1,324,059
General revenues:
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise Fees
Other taxes
Motor vehicle in lieu, unrestricted
Property taxes in lieu of vehicle license fees
Investment earnings
Gain on sale of capital assets
Miscellaneous
Special Item:
Remittance of land sale proceeds to taxing entities
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Program Revenues
30 304
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($12,898,788)($12,898,788)
(27,600,475)(27,600,475)
(34,681,860)(34,681,860)
(3,135,627)(3,135,627)
(19,058,572)(19,058,572)
(5,736,181)(5,736,181)
6,734,638 6,734,638
(6,891,224)(6,891,224)
(103,268,089)(103,268,089)
$3,473,544 3,473,544
(209,406)(209,406)
(765,876)(765,876)
2,498,262 2,498,262
(103,268,089)2,498,262 (100,769,827)
($2,061,291)
47,680,587 47,680,587
37,722,042 37,722,042
16,357,104 16,357,104 1,936,096
5,240,637 5,240,637
8,059,817 8,059,817
67,937 67,937
8,760,770 8,760,770
5,104,060 291,068 5,395,128 79,389
1,807,446 1,807,446
17,335,302 17,335,302
(5,173,366)(5,173,366)
(2,195,337)2,195,337
140,766,999 2,486,405 143,253,404 2,015,485
37,498,910 4,984,667 42,483,577 (45,806)
396,836,250 137,870,217 534,706,467 4,423,726
$434,335,160 $142,854,884 $577,190,044 $4,377,920
Primary Government
Net (Expenses) Revenues and Changes in Net Position
31 305
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306
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal 2023. Individual non-
major funds may be found in the Supplemental section.
GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
To account for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal
government’s response to the impacts of the COVID-19 pandemic.
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
CAPITAL INFRASTRUCTURE RESERVE FUND
Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a
significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s
reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks,
buildings, facilities, streets, sidewalks, and storm water facilities).
CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the new City police station located within the City’s new Civic Center
Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection
with the issuance of the Series 2020A Bonds.
CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the City’s new Civic Center Campus, and related improvements,
facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A
Bonds.
CAPITAL IMPROVEMENT ORANGE MEMORIAL PARK CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction and installation of certain capital
improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection with the
issuance of the Series 2022A Bonds.
33 307
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
Special
Revenue
Fund Capital Projects Funds
American Capital Capital
General Rescue Capital Infrastructure Improvement
Fund Plan Act Improvement Reserve Police Station
ASSETS
Cash and investments (Note 2)$80,739,818 $6,267,552 $563,919 $20,115,363
Receivables:
Accounts 13,715,846 1,343,145
Accrued interest 423,012 114,100
Due from Conference Center 56,072
Loans
Leases (Note 10)12,759,503
Due from other funds (Note 4B)480,000
Inventory 574
Restricted cash and investments (Note 2)4,435,367 $356,833
Properties held for redevelopment (Note 1O)2,823,118
Total Assets $110,997,943 $6,267,552 $6,342,431 $20,229,463 $356,833
LIABILITIES
Liabilities:
Accounts payable $5,939,493 $589,353
Accrued salaries and benefits 2,697,253
Other payable 776,211 1,463,713 $25,049
Deposits payable 742,865
Unearned revenue $6,267,552 60,543
Due to other funds (Note 4B)380,000
Total Liabilities 10,155,822 6,267,552 2,493,609 25,049
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 1,343,145
Related to leases (Note 10)12,282,955
Total Deferred Inflows of Resources 12,282,955 1,343,145
FUND BALANCE
Fund Balances (Note 6):
Nonspendable 477,122
Restricted 2,823,118 3,509,832 331,784
Committed 20,536,653
Assigned 8,661,539 $20,229,463
Unassigned 56,060,734 (1,004,155)
Total Fund Balances (Deficits)88,559,166 2,505,677 20,229,463 331,784
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) $110,997,943 $6,267,552 $6,342,431 $20,229,463 $356,833
See accompanying notes to basic financial statements
34 308
Capital Projects Funds
Capital
Capital Improvement Other Total
Improvement Orange Governmental Governmental
Civic Campus Memorial Park Funds Funds
$1,391,205 $25,859 $137,850,725 $246,954,441
68,871 1,935,467 17,063,329
656,631 1,193,743
56,072
1,192,998 1,192,998
1,181,466 13,940,969
480,000
574
13,890,142 59,684,993 1,461 78,368,796
2,823,118
$15,350,218 $59,710,852 $142,818,748 $362,074,040
$3,658,577 $1,433,694 $841,361 $12,462,478
2,697,253
5,918,975 473,052 583,286 9,240,286
3,232,930 3,975,795
6,328,095
100,000 480,000
9,577,552 1,906,746 4,757,577 35,183,907
68,871 1,412,016
1,153,603 13,436,558
68,871 1,153,603 14,848,574
477,122
5,703,795 57,804,106 136,907,568 207,080,203
20,536,653
28,891,002
55,056,579
5,703,795 57,804,106 136,907,568 312,041,559
$15,350,218 $59,710,852 $142,818,748 $362,074,040
35 309
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
Total fund balances reported on the governmental funds balance sheet $312,041,559
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 527,374,934
Internal service funds are used by management to charge the cost of management of
communication, telephone, building, fleet maintenance, equipment replacement, workers'
compensation, employee benefits, insurance, and post-retirement healthcare benefits to
individual funds. The assets and liabilities are included in Governmental Activities in the
Statement of Net Position. 26,595,941
The assets and liabilities below are not due and payable in the current period and
therefore are not reported in the funds:
Long-term debt (222,275,229)
Interest payable (683,778)
Deferred outflows related pension 57,019,161
Deferred outflows related to OPEB 7,615,537
Net OPEB liability (58,421,069)
Net pension liability (207,355,558)
Deferred inflows related to OPEB (1,035,207)
Deferred inflows related to pension (937,798)
Compensated absences (7,015,349)
Net position of governmental activities $434,335,160
See accompanying notes to financial statements
36 310
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311
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Special
Revenue
Fund Capital Projects Funds
American Capital Capital
General Rescue Capital Infrastructure Improvement
Fund Plan Act Improvement Reserve Police Station
REVENUES
Property taxes $54,041,117
Sales taxes 37,353,784
Transient occupancy taxes 16,357,104
Franchise Fees 5,240,637
Other taxes 8,059,817
Intergovernmental 3,558,742 $1,995,741 $1,824,995
Interest and rentals 4,247,107 $235,482 $5,480
Licenses and permits 20,467,644
Charges for services 11,673,187 434,000
Fines and forfeitures 757,019
Other 353,378 449,976
Total Revenues 162,109,536 1,995,741 2,274,971 669,482 5,480
EXPENDITURES
Current:
City Council 241,596
City Clerk 1,027,822
City Treasurer 35,279
City Attorney 1,220,059
City Manager 4,107,153
Finance 3,089,869
Non-departmental 3,484,013
Human Resources 2,221,160
Fire 35,512,513
Police 36,282,833 142,478
Public Works 7,936,326 25,995,702 500
Parks and Recreation 20,362,073
Library 6,475,274
Economic and Community Development 11,770,931
Other
Capital Outlay 141,250
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 133,908,151 25,995,702 500 142,478
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 28,201,385 1,995,741 (23,720,731)668,982 (136,998)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,852,123
Loss from sale of property (6,439,913)
Issuance of debt
Bond premium
Transfers in (Note 4C)5,283,682 10,817,102
Transfers out (Note 4C)(11,811,401) (1,995,741)(5,329,343)
Total Other Financing Sources (Uses)(11,115,509) (1,995,741) 10,817,102 (5,329,343)
Net Change in Fund Balances before special items 17,085,876 (12,903,629) (4,660,361)(136,998)
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366)
Net Change in Fund Balances 11,912,510 (12,903,629) (4,660,361)(136,998)
Fund balances (deficits) - July 1 76,646,656 15,409,306 24,889,824 468,782
Fund balances (deficits) - June 30 $88,559,166 $2,505,677 $20,229,463 $331,784
See accompanying notes to financial statements
38 312
Capital Projects Funds
Capital
Capital Improvement Other Total
Improvement Orange Governmental Governmental
Civic Campus Memorial Park Funds Funds
$2,400,240 $56,441,357
912,453 38,266,237
16,357,104
5,240,637
2,838,448 10,898,265
$2,504,976 9,689,823 19,574,277
636,881 $1,115,571 1,616,678 7,857,199
20,467,644
15,369,853 27,477,040
757,019
10,518,233 11,321,587
3,141,857 1,115,571 43,345,728 214,658,366
241,596
1,027,822
35,279
1,220,059
4,107,153
3,089,869
22,809 3,506,822
2,221,160
129,027 35,641,540
67,741 36,493,052
37,617,159 11,820,253 6,621,939 89,991,879
2,235,977 22,598,050
6,475,274
1,004,730 12,775,661
2,161,116 2,161,116
141,250
3,285,000 3,285,000
8,280,065 8,280,065
37,617,159 11,820,253 23,808,404 233,292,647
(34,475,302) (10,704,682)19,537,324 (18,634,281)
1,852,123
(6,439,913)
2,898,732 11,465,065 30,464,581
(3,175,615) (11,396,260) (33,708,360)
2,898,732 (3,175,615)68,805 (7,831,569)
(31,576,570) (13,880,297)19,606,129 (26,465,850)
(5,173,366)
(31,576,570) (13,880,297)19,606,129 (31,639,216)
37,280,365 71,684,403 117,301,439 343,680,775
$5,703,795 $57,804,106 $136,907,568 $312,041,559
39 313
CITY OF SOUTH SAN FRANCISCO
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($31,639,216)
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is capitalized and allocated over their estimated useful
lives and reported as depreciation expense.
Capital assets additions 75,422,642
Current year depreciation (9,190,597)
Current year retirements (149,603)
Long-Term Debt Payments
Repayment of principal is an expenditure in the governmental funds, but
in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of principal is added back to fund balance 3,285,000
Amortization of premium is added back to fund balance 1,382,613
Accrual of Non-Current Items
of current financial resources and therefore is not reported as revenue or expenditures in
governmental funds (net change):
Unavailable revenue (387,371)
Interest payable 6,228
Compensated absences (499,594)
Net pension liability, deferred outflows and inflows of resources (2,851,866)
Net OPEB liability, deferred outflows and inflows of resources 937,453
Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental
activities.1,183,221
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $37,498,910
See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use
40 314
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $43,804,769 $45,804,769 $54,041,117 $8,236,348
Sales taxes 34,791,018 36,191,018 37,353,784 1,162,766
Transient occupancy taxes 11,160,752 14,160,752 16,357,104 2,196,352
Franchise fees 4,600,000 4,600,000 5,240,637 640,637
Other taxes 4,893,252 5,693,252 8,059,817 2,366,565
Intergovernmental 2,844,618 4,337,199 3,558,742 (778,457)
Interest and rentals 5,453,469 4,556,469 4,247,107 (309,362)
Licenses and permits 15,500,000 19,425,400 20,467,644 1,042,244
Charges for services 8,799,097 8,265,097 11,673,187 3,408,090
Fines and forfeitures 710,824 710,824 757,019 46,195
Other 259,383 278,902 353,378 74,476
Amounts available for appropriation 132,817,182 144,023,682 162,109,536 18,085,854
Charges to appropriations (outflows):
City Council 258,749 260,650 241,596 19,054
City Clerk 1,143,342 1,154,449 1,027,822 126,627
City Treasurer 167,292 167,904 35,279 132,625
City Attorney 940,290 940,291 1,220,059 (279,768)
City Manager 4,926,619 5,735,893 4,197,204 1,538,689
Finance 3,892,875 4,405,085 3,617,322 787,763
Non-departmental 1,544,367 2,152,699 3,486,795 (1,334,096)
Human Resources 2,518,004 2,684,109 2,331,987 352,122
Fire 31,313,293 33,424,718 36,400,487 (2,975,769)
Police 32,957,662 34,511,302 36,283,110 (1,771,808)
Public Works 7,120,654 8,603,705 8,931,895 (328,190)
Parks and Recreation 19,608,365 22,873,151 22,225,939 647,212
Library 6,706,110 7,273,746 6,518,982 754,764
Economic and Community Development 8,907,770 15,609,631 15,909,963 (300,332)
Capital Outlay 141,250 (141,250)
Total charges to appropriations 122,005,392 139,797,333 142,569,690 (2,772,357)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 897,000 1,852,123 955,123
Loss from sale of property (6,439,913) (6,439,913)
Transfers in (Note 4C) 3,245,000 6,151,400 5,283,682 (867,718)
Transfers out (Note 4C) (13,344,450) (28,153,088) (11,811,401) 16,341,687
Total Other Financing Sources (Uses) (10,099,450) (21,104,688) (11,115,509) 9,989,179
712,340 (16,878,339) 8,424,337 25,302,676
SPECIAL ITEM
Remittance of land sale proceeds (5,173,366) (5,173,366)
NET CHANGE IN FUND BALANCE $712,340 ($16,878,339) 3,250,971 $20,129,310
Fund Balance - July 1 76,646,656
Adjustment to budgetary basis:
Encumbrance adjustments 8,661,539
Fund Balance - June 30 $88,559,166
See accompanying notes to financial statements
Budgeted Amounts
NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM
41 315
Variance with
Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Intergovernmental $2,270,000 $2,270,000 $1,995,741 ($274,259)
Total Revenues 2,270,000 2,270,000 1,995,741 (274,259)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,270,000 2,270,000 1,995,741 (274,259)
OTHER FINANCING SOURCES (USES)
Transfers out (Note 4C) (2,270,000) (4,025,750) (1,995,741) 2,030,009
NET CHANGE IN FUND BALANCE ($1,755,750) $1,755,750
Fund balance - July 1
Fund balance - June 30
See accompanying notes to financial statements
Budgeted Amounts
CITY OF SOUTH SAN FRANCISCO
AMERICAN RESCUE PLAN ACT
SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
42 316
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
SEWER ENTERPRISE FUND
This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital
expansion of the wastewater collection and treatment system.
PARKING DISTRICT FUND
This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities.
STORM WATER FUND
This fund accounts for user charges sustaining the Storm Water Management Program mandated by state
and federal authorities.
43 317
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
ASSETS
Current assets:
Cash and investments (Note 2)$25,369,673 $3,460,545 $3,456,236 $32,286,454 $38,881,218
Receivables:
Accounts 2,432,572 9,281 436,219 2,878,072 456,316
Accrued interest 97,652 18,421 18,422 134,495 185,098
Deposits 309,790
Prepaid items 1,358,284
Restricted cash and investments (Note 2)192,775 192,775
Total current assets 28,092,672 3,488,247 3,910,877 35,491,796 41,190,706
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 73,310,803 421,149 13,253,436 86,985,388
Depreciable, net accumulated depreciation 95,039,129 9,259,353 1,539,438 105,837,920 5,328,500
Total non-current assets 168,349,932 9,680,502 14,792,874 192,823,308 5,328,500
Total Assets 196,442,604 13,168,749 18,703,751 228,315,104 46,519,206
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)6,267,907 6,267,907
Related to OPEB (Note 9)846,171 846,171
Total Deferred Outflows of Resources 7,114,078 7,114,078
LIABILITIES
Current liabilities:
Accounts payable 679,554 8,692 65,693 753,939 333,718
Other payable 244,664 63 5 244,732 177,539
Accrued interest payable 764,499 764,499
Deposits payable 7,500 7,500
Unearned revenue 48,942 48,942
Due to other funds (Note 4B)
Accrued insurance loss (Note 12)3,381,062
Compensated absences obligation (Note 1M)616,326 5,641 34,233 656,200 1,294,533
Current portion of long-term debt (Note 5)4,368,201 4,368,201
Total current liabilities 6,729,686 14,396 99,931 6,844,013 5,186,852
Noncurrent liabilities:
Accrued insurance losses (Note 12)13,903,000
Compensated absences obligation (Note 1M)267,010 10,226 4,213 281,449 833,413
Noncurrent portion of long-term debt (Note 5)55,698,877 55,698,877
Net pension liability (Note 7)23,039,506 23,039,506
Net OPEB liability (Note 9)6,491,230 6,491,230
Total noncurrent liabilities 85,496,623 10,226 4,213 85,511,062 14,736,413
Total Liabilities 92,226,309 24,622 104,144 92,355,075 19,923,265
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)104,200 104,200
Related to OPEB (Note 9)115,023 115,023
Total Deferred Inflows of resources 219,223 219,223
NET POSITION:
Net investment in capital assets 108,282,854 9,680,502 14,792,874 132,756,230 5,328,500
Unrestricted (deficit)2,828,296 3,463,625 3,806,733 10,098,654 21,267,441
Total Net Position $111,111,150 $13,144,127 $18,599,607 $142,854,884 $26,595,941
See accompanying notes to financial statements
44 318
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $23,180,130 $414,183 $23,594,313 $31,348,296
Other cities' participation 6,237,114 6,237,114
Permit fees 710,915 710,915
Parking fees $1,062,751 1,062,751
Total Operating Revenues 30,128,159 1,062,751 414,183 31,605,093 31,348,296
OPERATING EXPENSES
Personnel expenses 10,988,476 346,813 1,207,382 12,542,671 19,852,051
Professional services 2,038,173 284,836 79,489 2,402,498 1,132,997
OPEB Expenses 535,040 1,448 536,488
Program supplies 2,054,330 147,099 57,965 2,259,394 2,244,118
Insurance 210,870 3,698 214,568 2,890,694
Self-insurance and claims 2,807,004
Repair and maintenance 1,402,551 6,003 1,408,554 1,065,000
Rents 1,689,059 1,689,059
Utilities 1,867,151 126,330 17,351 2,010,832 104,991
Administration 1,590,725 113,007 48,535 1,752,267
Depreciation 5,475,767 252,624 33,651 5,762,042 1,045,253
Other 23,346 6,536 29,882 618,144
Total Operating Expenses 27,875,488 1,272,157 1,460,610 30,608,255 31,760,252
Operating Income (Loss)2,252,671 (209,406) (1,046,427)996,838 (411,956)
NONOPERATING REVENUES (EXPENSES)
Loan forgiveness (Note 5)4,000,000 4,000,000
Interest income 215,397 38,129 37,542 291,068 380,178
Gain on dispositions of capital assets 104,926
Interest expense (2,779,127)(2,779,127)(2,870)
Other 4,400 4,400 64,501
Total Nonoperating Revenues (Expenses)1,436,270 38,129 41,942 1,516,341 546,735
Income (loss) before contributions and transfers 3,688,941 (171,277) (1,004,485) 2,513,179 134,779
TRANSFERS
Capital subventions and grants 276,151 276,151
Transfers in (Note 4C)3,000 2,000 2,494,778 2,499,778 1,048,442
Transfers (out) (Note 4C)(304,441)(304,441)
Change in Net Position 3,387,500 (169,277) 1,766,444 4,984,667 1,183,221
Net Position (Deficits) - July 1 107,723,650 13,313,404 16,833,163 137,870,217 25,412,720
Net Position (Deficits) - June 30 $111,111,150 $13,144,127 $18,599,607 $142,854,884 $26,595,941
See accompanying notes to financial statements
45 319
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $31,312,569 $1,053,470 $3,697,332 $36,063,371
Cash payments to suppliers for goods and services (12,293,207) (679,993) (175,764) (13,148,964) ($7,535,837)
Cash payments to employees for services (10,573,920) (331,286) (1,209,620) (12,114,826) (20,265,596)
Cash received from interfund service provided 30,956,481
Cash payments for judgments and claims (2,006,200)
Net Cash Provided by (Used in) Operating Activities 8,445,442 42,191 2,311,948 10,799,581 1,148,848
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts (630,000) (630,000)
Transfers in 3,000 2,000 2,494,778 2,499,778 1,048,442
Transfers in (304,441)(304,441)
Net Cash Provided by Noncapital Financing Activities (301,441)2,000 1,864,778 1,565,337 1,048,442
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 2,991,637 2,991,637
Principal paid on long-term debt (5,312,308)(5,312,308)(144,637)
Interest paid on long-term debt (393,601)(393,601)(2,870)
Subventions and grants 276,151 276,151
Acquisition of capital assets, net (1,834,441)(1,020,995) (2,855,436) (1,979,957)
Proceeds from the sale of capital assets 113,687
Net Cash Used in Capital and Related Financing Activities (4,548,713)(744,844) (5,293,557) (2,013,777)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid)56,697 8,028 (3,165)61,560 76,260
Changes in fair value of investments 118,127 22,284 22,285 162,696 223,912
Net Cash Provided by Investing Activities 174,824 30,312 19,120 224,256 300,172
Net Increase (Decrease) in cash and cash equivalents 3,770,112 74,503 3,451,002 7,295,617 483,685
Cash and cash equivalents, beginning 21,792,336 3,386,042 5,234 25,183,612 38,397,533
Cash and cash equivalents, ending $25,562,448 $3,460,545 $3,456,236 $32,479,229 $38,881,218
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$2,252,671 ($209,406) ($1,046,427) $996,838 ($411,956)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 5,475,767 252,624 33,651 5,762,042 1,045,253
Other non-operating revenue (expenses)4,400 4,400 64,501
Net change in assets and liabilities:
Accounts and lease receivables 1,168,495 (9,281) 3,278,749 4,437,963 (456,316)
Deposit
Prepaid items (153,911)
Accounts payable 126,737 (7,336)43,811 163,212 (66,577)
Other payable (1,008,699)63 2 (1,008,634)148,243
Unearned revenue 15,915 15,915
Accrued insurance losses 800,804
(Decrease) increase due to retirement system 384,430 384,430
(Decrease) increase due to OPEB (104,162)(104,162)
Compensated absence obligations 134,288 15,527 (2,238) 147,577 178,807
Net Cash Provided by (Used in) Operating Activities $8,445,442 $42,191 $2,311,948 $10,799,581 $1,148,848
NONCASH TRANSACTIONS
Retirement of capital assets ($8,761)
Forgiveness of SWRCB loan $4,000,000 $4,000,000
Interest accrued to principal on SWRCB loan ($1,831,943)($1,831,943)
See accompanying notes to basic financial statements
46 320
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private
organizations, and other governments. The financial activities of these funds are excluded from the
government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
The Fund is used to account for the activities of the Successor Agency to the former Redevelopment
Agency of the City of South San Francisco.
CUSTODIAL FUNDS are used to report resources, not in a trust, that are held by the City for other
parties outside of the City’s reporting entity.
47 321
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments (Note 2) $20,617 $95,626
Accounts receivable 141,362
Interest receivable 18,417 1,399
Prepaid items
Advances to the City (Note 5) 2,050,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 21,245,798 2,255,699
Capital assets (Note 14C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 231,531
Total Assets 23,899,668 2,352,724
LIABILITIES
Accounts payable 33,991
Total Liabilities 33,991
NET POSITION
Held in trust for other purposes 23,865,677
Restricted for others 96,245
Restricted for bondholders 2,256,479
Total Net Position $23,865,677 $2,352,724
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
48 322
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS
Property taxes $1,013,213
Intergovernmental $6,168,452
Plan contributions 8,225
Interest and rentals 387,064 542,489
Other 141,391
Total Additions 6,696,907 1,563,927
DEDUCTIONS
Economic and Community Development 7,000,293
Professional services 18,805,663
Payments to bondholders 764,850
Depreciation 6,593
Total Deductions 7,006,886 19,570,513
Change in net position (309,979) (18,006,586)
NET POSITION
Beginning of the year 24,175,656 20,359,310
End of the year $23,865,677 $2,352,724
See accompanying notes to financial statements
49 323
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324
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City
of South San Francisco (the City) as the Primary Government, with its component units for which
the City is considered financially accountable. The component units discussed below are
included in the City's reporting entity because of the significance of their operational and
financial relationships with the City.
B.Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this unit is combined with the City. The City’s following blended
component units are described below.
The City of South San Francisco Capital Improvements Financing Authority is a joint
exercise of powers authority created in 1991 between the City and the City of South San
Francisco former Redevelopment Agency. The Capital Improvements Financing Authority is
authorized to borrow money through the purchase or issuance of bonds, notes, or other
obligations for the purpose of making loans to the City and other public entities to finance capital
improvements. The City Council members serve as the Board of Directors. The Capital
Improvements Financing Authority did not have any activity during fiscal year 2023. Separate
financial statements are not issued for the Capital Improvements Financing Authority.
The Parking Authority of the City of South San Francisco was formed in October 2019
pursuant to the California Parking Law of 1949, Streets and Highways Code Section 32500, et
seq. The City Council members serve as the Board of Directors. The financial activities of the
Parking Authority are included in the Parking District Enterprise Fund. Separate financial
statements are not issued for the Parking Authority.
The City of South San Francisco Public Facilities Financing Authority is a joint exercise of
powers authority created in December 2019 between the City and the Parking Authority. The
Public Facilities Financing Authority is authorized to borrow money through the purchase or
issuance of bonds, notes, or other obligations for the purpose of making loans to the City or the
Parking Authority and other public or private entities to finance capital improvements. The City
Council members serve as the Board of Directors. The financial activities of the Public Facilities
Financing Authority are included in the Capital Improvements Police Station, Capital
Improvements Civic Campus and Capital Improvement Orange Memorial Park Capital Projects
Funds. Separate financial statements are not issued for the Public Facilities Financing Authority.
51 325
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Description of Discrete Component Unit
The City of South San Francisco Conference Center Authority was established in 1992 to
manage and operate the South San Francisco Conference Center. The Authority is governed by a
Board of nine commissioners consisting of two Council members and seven representatives from
various businesses appointed by City Council.
The Authority does not meet the criteria of a blended component unit, since the City Council is
not the Authority’s governing body and the Authority does not provide services entirely to the
City. However, the City is financially accountable and is able to impose its will on the Authority.
The Authority is therefore considered a discrete component unit with its financial data reported
separately from the financial data of the City.
The City of South San Francisco Conference Center Authority financial statements may be
obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080.
D.South San Francisco Housing Authority
The South San Francisco Housing Authority was established by the City of South San
Francisco in 1955 under the provisions of the State Health and Safety Code to address a shortage
of low income housing in the City. Although the City Council appoints the Authority
Commissioners, the City Council can only remove those appointed Commissioners for
inefficiency, neglect of duty or misconduct. The Housing Authority operates independent of the
City and the City is not financially accountable for the Housing Authority. Therefore, the
operations of the Housing Authority are not included in the financial reporting entity of the City.
E. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants
and contributions that are restricted to meeting the operational needs of a particular program and
(c) fees, grants and contributions that are restricted to financing the acquisition or construction of
capital assets. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
52 326
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Financial Statements: The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
F. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Accounts for resources traditionally associated with government, such as
administration, public safety, library, parks, maintenance, and recreation, outside of those
accounted for in other funds.
American Rescue Plan Act Special Revenue Fund – This Fund was established to account for
the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal
government’s response to the impacts of the COVID-19 pandemic.
Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the
acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding
comes from the General Fund, Special Revenue funds, grants and fees.
Capital Infrastructure Reserve Fund – Replacement, upgrade, and maintenance of the City’s
infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund
as part of the budget process and as part of the City’s reserve policy to address the replacement
and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks,
and storm water facilities).
Capital Improvement Police Station – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds.
53 327
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Improvement Civic Campus – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the City’s
new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs
incurred in connection with the issuance of the Series 2021A Bonds.
Capital Improvement Orange Memorial Park Capital Projects Fund – Accounts for
expenditures associated with the acquisition, construction and installation of certain capital
improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection
with the issuance of the Series 2022A Bonds.
The City reported all enterprise funds as major funds in the accompanying financial statements.
The enterprise funds are:
Sewer Enterprise Fund – Accounts for user charges and debt proceeds supporting the operation,
maintenance, and capital expansion of the wastewater collection and treatment system.
Parking District Fund – Accounts for meter and parking permit fees used to acquire and
maintain parking facilities.
Storm Water Fund – Accounts for user charges sustaining the Storm Water Management
Program mandated by state and federal authorities.
The City also reports the following fund types:
Internal Service Funds – These funds account for City services, self insurance, health and
retirement benefits, and equipment replacement; all of which are provided to other departments
on a cost-reimbursement basis.
Fiduciary Funds – The Fiduciary fund financial statements normally include a Statement of Net
Position and a Statement of Changes in Fiduciary Net Position. The financial activities of the
funds are excluded from the government-wide financial statements. The City’s fiduciary funds
represent a private purpose trust fund and custodial funds. The Successor Agency Private-
Purpose Trust Fund accounts for the accumulation of resources to be used for payments at
appropriate amounts and times in the future. Custodial funds are used to account for assets held
by the City on behalf of other agencies for other purposes. The City’s Custodial Funds include
the Employee Deferred Comp Trust Oversight Fund and the Community Facilities District 2021-
01, which accounted for payments of special assessment bonds.
54 328
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Basis of Accounting
The government-wide, proprietary, fiduciary, and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, including lease liabilities, claims and judgments, and compensated absences, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions,
including entering into contracts giving the City the right to use leased assets and right to use
subscription assets, are reported as expenditures in governmental funds. Proceeds from long-term
debt and financing through leases are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales
taxes collected and held by the state at year end on behalf of the City are also recognized as
revenue. Other receipts and taxes are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
55 329
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Budgets, Budgetary Accounting, and Encumbrances
The City is not legally required to budget any of its funds, but does so to enhance City
management's effectiveness in their financial planning efforts and to enhance control over the
City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and
for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the
purchase order issuance. All Capital Projects Funds are adopted on a multi-year project basis with
unexpended and unencumbered budgets reappropriated in the following year. The City operates
under the general laws of the State of California (the State) and annually adopts a budget effective
July 1 for the ensuing fiscal year for the General fund; Special Revenue funds, except the
American Recovery Plan Act Special Revenue Fund, Developer Contributions Special Revenue
Fund, Supplemental Law Enforcement Services Special Revenue Fund, City Programs Special
Revenue Fund, Affordable Housing Trust Special Revenue Fund and Transit Station
Enhancement In-Lieu Fee Special Revenue Fund; Capital Projects Funds; and Enterprise funds.
The budget is adopted by the City Council and controlled at the department level for the General
Fund and at the fund level or lower for all other funds with adopted budgets. From the effective
date of the budget, the amounts stated therein as proposed expenditures become appropriations to
the various City departments. The City Council may amend the budget by resolution during the
fiscal year. The department heads may authorize transfers within one object category within the
same department within a fund. The City Manager may authorize transfers between object
categories and departments within a fund.
All appropriations lapse at year-end, except for capital projects and encumbrances. Original
adopted budgets and final amended budgets are presented in the basic financial statements.
Supplementary budget appropriations were necessary during the year ended June 30, 2023.
Encumbrance accounting, under which, purchase orders, contracts and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are
reported as a component of fund balances since they do not constitute expenditures or liabilities.
Encumbrances are reappropriated in the following year.
The budgetary comparison statements present comparisons of the legally adopted budget with
actual charges to appropriations on a budgetary basis. In order to provide a meaningful
comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that
differs significantly from those used to present financial statements in conformity with generally
accepted accounting principles.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
56 330
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I.Expenditures in Excess of Appropriations – The City’s General Fund had the following
departmental expenditures in excess of appropriations and other funds had expenditures in excess
of appropriations for the year ended June 30, 2023:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
City Attorney $279,768
Non-departmental 1,334,096
Fire 2,975,769
Police 1,771,808
Public Works 328,190
Economic and Community Development 300,332
Capital Outlay 141,250
Non-Major Funds:
Supplemental Law Enforcement Services Special Revenue Fund 67,741
City Programs Special Revenue Fund 550,723
PEG Equipment and Access Special Revenue Fund 17,209
Debt Service Fund 3,175,615
Sufficient resources were available within each fund to finance these excesses.
J. Cash Equivalents – For purposes of the statement of cash flows, the City considers all highly
liquid investments (including all restricted assets) with maturity of three months or less when
purchased to be cash equivalents. The City maintains a cash and investment pool that is available
for use by all funds. As the proprietary funds' share of this pool is readily available when needed,
such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are
related to insurance and benefits and are not considered cash equivalents for purposes of the
statement of cash flows.
K.Inventory and Prepaid Items – consist of consumable supplies. Inventory is stated at cost (first-
in, first-out method). The costs are recorded as expenditures at the time the individual inventory
or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund
balance reservation, which indicates that they do not constitute "available spendable resources"
even though they are a component of net current assets.
L.Capital Assets – Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are valued at acquisition value. All other capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available
except for intangible right to‐use lease assets, the measurement of which is discussed in Note 10
below and intangible right to use subscription assets, the measurement of which is discussed in
Note 1R below.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over
the life of these assets. The amount charged to depreciation expense each year represents that
year’s pro rata share of the cost of capital assets.
57 331
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The City and Authority have assigned the useful lives listed below to
capital assets and right to use leased building:
Buildings 50 years
Clean water facilities and transmission lines 40 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Infrastructure 20-40 years
Right to use leased building 30 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
M. Vacation and Sick Pay – are accrued as earned. Upon termination, employees are paid for all
unused vacation at their current hourly rates. After five to twenty years of employment, one half
of accumulated sick leave becomes vested, up to a maximum amount as specified under labor
contract provisions. The vested portion is available for current use or, if unused, is payable at
termination or retirement.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements. The
portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits
Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $8,464,894 $790,072 $9,254,966
Additions 6,754,728 806,022 7,560,750
Payments (6,076,327) (658,445) (6,734,772)
Ending Balance $9,143,295 $937,649 $10,080,944
Current Portion $6,059,221 $656,200 $6,715,421
Compensated absences are liquidated by the fund that has recorded the liability. The long-term
portion of governmental activities compensated absences is liquidated primarily by the Health
and Retirement Benefits Internal Service Fund.
58 332
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N.Property Tax Levy, Collection and Maximum Rates – State of California Constitution Article
XIII A provides that the combined maximum property tax rate on any given property may not
exceed 1% of its assessed value unless an additional amount for general obligation debt has been
approved by voters. Assessed value is calculated at 100% of market value as defined by Article
XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred,
or substantially improved. The State Legislature has determined the method of distribution of
receipts from a 1% tax levy among the counties, cities, school districts and other districts. The
County of San Mateo assesses properties, bills for and collects property taxes on the schedule that
follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
The term "unsecured" refers to taxes on personal property other than land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue and receivables when they are collected during the
fiscal year of levy or within 60 days of year-end.
O.Properties held for redevelopment – is stated at the lower of historical cost or net realizable value
(equal to agreed upon sales price if a disposition and development agreement has been reached
with a developer).
P. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end.
Q.Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial
position or balance sheet reports a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a consumption of
net assets or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of
financial position or balance sheet reports a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents an acquisition
of net assets or fund balance that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time.
59 333
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the
fair value hierarchy, the measurement is considered to be based on the lowest priority level input
that is significant to the entire measurement.
S.Subscription Based Information Technology Arrangements (SBITAs)
A SBITA is a contract that conveys control of the right to use another party’s (a SBITA vendor’s)
IT software, alone or in combination with tangible capital assets (the underlying IT assets), as
specified in the contract for a period of time in an exchange or exchange-like transaction.
At the commencement of a SBITA, the City initially measures the subscription liability at the
present value of payments expected to be made during the contract term. Subsequently, the
subscription liability is reduced by the principal portion of payments made. The subscription asset
is initially measured as the initial amount of the subscription liability, adjusted for payments
made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently,
the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or
the useful life of the underlying IT assets. The City recognizes subscription asset with an initial,
individual value of $1,000,000 or more, based on the present value of future subscription
payments remaining at the start of the agreement.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount
rate it uses to discount the expected subscription payments to present value, (2) subscription term,
and (3) subscription payments as follows:
•The City uses the interest rate charged by the IT vendor as the discount rate. When the
interest rate charged by the IT vendor is not provided, the City generally uses its
estimated incremental borrowing rate as the discount rate for subscription liabilities.
•The subscription term includes the noncancellable period of the subscription.
The City monitors changes in circumstances that would require a remeasurement of its
subscription and will remeasure the subscription asset and liability if certain changes occur that
are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported
in the statement of net position.
60 334
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. Use of Estimates – The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the
dates of the financial statements and the reported amounts of revenues and expenditures/expenses
during the reporting periods. Actual results could differ from those estimates.
U. New Funds
In fiscal year 2022-2023, the City established the following funds:
The Public Arts In-Lieu Fee Special Revenue Fund accounts for development fee revenues that
are collected and are required to be used for public art installations.
The Oyster Point CFD Special Tax B Special Revenue Fund accounts for special assessment
collections that are to be used for maintenance and administrative fees of the community facilities
district.
V. New Accounting Pronouncement
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based
Information Technology Arrangements. The objective of this Statement is to provide guidance on
the accounting and financial reporting for subscription-based information technology
arrangements (SBITAs) for government end users (governments). This Statement (1) defines a
SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible
asset—and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4)
requires note disclosures regarding a SBITA.. The provisions of this Statement were
implemented during fiscal year 2023. The implementation had no effect on the financial
statements.
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and
Public-Public Partnerships and Availability Payment Arrangements. The primary objective of
this Statement is to improve financial reporting by addressing issues related to public-private and
public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an
arrangement in which a government (the transferor) contracts with an operator (a governmental or
nongovernmental entity) to provide public services by conveying control of the right to operate or
use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset),
for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition
of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP
in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor
determines or has the ability to modify or approve which services the operator is required to
provide, to whom the operator is required to provide the services, and the prices or rates that can
be charged for the services; and (3) the transferor is entitled to significant residual interest in the
service utility of the underlying PPP asset at the end of the arrangement.
This Statement also provides guidance for accounting and financial reporting for availability
payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which
a government compensates an operator for services that may include designing, constructing,
financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an
exchange or exchange-like transaction. The provisions of this Statement were implemented
during fiscal year 2023. The implementation had no effect on the financial statements.
61 335
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS
The City’s goal is to invest at the maximum yield, consistent with safety and liquidity, while
individual funds can process payments for expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order
to increase security, the City employs the Trust Department of a bank as the custodian of certain
City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
fair value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and
places the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2023 are classified in the financial statements as shown
below, based on whether or not their use is restricted under the terms of City debt instruments or
agency agreements.
Financial Statement Presentation:
Statement of Net Position:
City of South San Francisco:
Cash and investments available for operations $318,122,113
Restricted cash and investments 78,561,571
Total Primary Government cash and investments 396,683,684
Statement of Fiduciary Net Position:
Cash and investments available for operations 116,243
Restricted cash and investments 23,501,497
Total Fiduciary cash and investments 23,617,740
Conference Center:
Cash and investments available for operations 3,882,598
Total South San Francisco
Conference Center cash and investments 3,882,598
Total cash and investments $424,184,022
62 336
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer
U.S. Treasury Securities 5 years N/A No Limit No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations 5 years N/A No Limit 25%
Supranational Obligations 5 years AA 30%10%
Corporate Medium-Term Notes 5 years A 30%5%
Asset-Backed Securities 5 years AA 20%5%
Commercial Paper 270 days A1,P1 25%5%
Negotiable Certificates of Deposit 5 years A-1 or A 30%5%
Repurchase Agreements 90 days AA No Limit No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A $75 million No Limit
Money Market Mutual Funds N/A AAAm 20%10%
Rating System, or its equivalent.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment
63 337
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the former Redevelopment Agency must maintain required
amounts of cash and investments with trustees or fiscal agents under the terms of certain debt
issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the
City or Successor Agency fail to meet its obligations under these debt issues. The California
Government Code requires these funds to be invested in accordance with City ordinance bond
indentures or State statute. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Minimum Maximum
Maximum Credit Percentage
Authorized Investment Type Maturity Quality of Portfolio
U.S. Treasury Obligations N/A N/A No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations N/A N/A No Limit
Federal Housing Administration Debentures N/A N/A No Limit
Bankers Acceptances 30 days A-1 or A-2 No Limit
Commercial Paper 270 days A1,P1 No Limit
Negotiable Certificates of Deposit 5 years A-1 or A No Limit
Guaranteed Investment Agreements N/A A1,P1 No Limit
Municipal Obligations N/A Aaa No Limit
State Obligations N/A A2 No Limit
Money Market Mutual Funds N/A AAAm No Limit
Repurchase Agreements 90 days AA No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A No Limit
E. Investments Authorized by the Authority
The City of South San Francisco Conference Center Authority follows the California Government
Code which authorizes an agency to invest in their own bonds, certain time deposits, obligations
of the U.S. Treasury, agencies and instrumentalities, commercial paper, bankers’ acceptances
with maturities not to exceed 270 days, and medium-term notes issued by corporations operating
within the U.S., commercial paper rated P-1 or higher by Moody’s or A-1 by Standard & Poor’s
commercial paper record, repurchase agreements of obligations of the U.S. Government or its
agencies for a term of one year or less and the Local Agency Investment Fund.
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. The City also manages its interest rate risk is
by holding most investments to maturity, thus reversing unrealized market gains and losses.
64 338
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
Information about the sensitivity of the fair values of the City’s investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the City’s investments by maturity or earliest call date:
Remaining maturity
Less than One to Five
1 year Years Total
City and Fiduciary:
U.S. Treasury Notes $223,922 $58,289,279 $58,513,201
U.S. Treasury Bills 67,543,129 67,543,129
Federal Agency Securities 3,097,484 50,280,270 53,377,754
Local Agency Investment Fund 108,562,894 108,562,894
Money Market Funds 35,086,693 35,086,693
Corporate Medium Term Notes 7,332,998 47,489,676 54,822,674
Negotiable Certificates of Deposit 3,994,592 3,994,592
Asset-Backed Securities 3,582,332 14,745,219 18,327,551
Supranational Obligations 6,093,964 6,093,964
South San Francisco Conference Center:
Local Agency Investment Fund 3,505,040 3,505,040
Total Investments $232,929,084 $176,898,408 409,827,492
Cash in Banks and on Hand - City of South San Francisco 13,978,972
Cash in Banks and on Hand - South San Francisco Conference Center 377,558
Total Cash and Investments $424,184,022
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per
month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75
million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond
proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly
draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds,
and floating rate securities issued by federal agencies, government-sponsored enterprises, United
States Treasury Notes and Bills, and corporations. At June 30, 2023, these investments have an
average maturity of 260 days.
Money market funds are available for withdrawal on demand and as of June 30, 2023 have an
average maturity of 13 to 26 days.
65 339
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, 2023, for each
of the Primary Government’s investment types as provided by Moody’s investment rating system,
except as noted:
Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 P-1 Total
City and Fiduciary:
Federal Agency Securities $53,377,754 $53,377,754
Money Market Funds $35,086,693 35,086,693
Corporate Medium Term Notes 4,721,012 $10,400,108 $39,701,554 54,822,674
Negotiable Certificates of Deposit $3,994,592 3,994,592
Asset-Backed Securities 9,853,700 9,853,700
Supranational Obligations 6,093,964 6,093,964
Totals $74,046,430 35,086,693$ 10,400,108$ 39,701,554$ 3,994,592$ 163,229,377
City and Fiduciary:
Not rated:
Asset-Backed Securities 8,473,851 (A)
Local Agency Investment Fund 108,562,894
Exempt from credit rating disclosure:
U.S. Treasury Notes 58,513,201
U.S. Treasury Bills 67,543,129
Not rated:
Local Agency Investment Fund 3,505,040
Total Investments $409,827,492
South San Francisco Conference Center:
(A) Investments are not rated by Moody’s, but are rated AAA by Standard and Poor’s or Fitch investment
rating systems.
66 340
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
The City categorized its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City
as of June 30, 2023:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Treasury Notes $58,513,201 $58,513,201
U.S. Treasury Bills 67,543,129 67,543,129
Federal Agency Securities 53,377,754 53,377,754
Corporate Medium Term Notes 54,822,674 54,822,674
Negotiable Certificates of Deposit 3,994,592 3,994,592
Asset Backed Securities 18,327,551 18,327,551
Supranational Obligations 6,093,964 6,093,964
Totals $262,672,865 262,672,865
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 35,086,693
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 108,562,894
South San Francisco Conference Center:
Local Agency Investment Fund 3,505,040
Total Investments $409,827,492
All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing
techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings
and matrix pricing. These prices are obtained from various pricing sources by the City’s
investment manager. Money market funds were reported at amortized cost.
67 341
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 3 – CAPITAL ASSETS
A.Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance
June 30, 2022 Additions Retirements Transfers
Balance
June 30, 2023
Governmental activities
Capital assets not being depreciated:
Land $72,249,423 ($11,195)$72,238,228
Construction in Progress 241,858,363 $75,281,392 ($56,225,451) 260,914,304
Total capital assets not being depreciated 314,107,786 75,281,392 (11,195) (56,225,451) 333,152,532
Capital assets being depreciated:
Buildings and Improvements 97,370,638 (350,681) 53,472,577 150,492,534
Infrastructure - Streets 205,595,834 2,752,874 208,348,708
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 12,591,370
Equipment and Vehicle 7,390,599 141,250 (148,921)7,382,928
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 334,490,148 141,250 (499,602) 56,225,451 390,357,247
Less accumulated depreciation for:
Buildings and Improvements (47,449,864) (3,081,797) 212,273 (50,319,388)
Infrastructure - Streets (121,685,176) (5,271,961)(126,957,137)
Infrastructure - Storm Drains (4,184,561) (204,500)(4,389,061)
Infrastructure - Traffic Control Devices (5,240,019) (503,305)(5,743,324)
Equipment and Vehicle (6,767,147) (48,987) 148,921 (6,667,213)
Furniture and Fixtures (1,978,675) (80,047)(2,058,722)
Total accumulated depreciation (187,305,442) (9,190,597) 361,194 (196,134,845)
Net Governmental Fund
Capital Assets Being Depreciated 147,184,706 (9,049,347) (138,408)56,225,451 194,222,402
Internal Service Fund Capital Assets
Capital assets being depreciated:
Equipment and Vehicle 17,378,330 1,979,957 (855,261)18,503,026
Accumulated depreciation (12,975,773) (1,045,253) 846,500 (13,174,526)
Net Internal Service Fund Capital Assets
Being Depreciated 4,402,557 934,704 (8,761)5,328,500
Governmental activities capital assets, net $465,695,049 $67,166,749 ($158,364)$532,703,434
Total capital assets not being depreciated $314,107,786 $75,281,392 ($11,195) ($56,225,451) $333,152,532
Net capital assets being depreciated 151,587,263 (8,114,643) (147,169)56,225,451 199,550,902
Governmental activities capital assets, net $465,695,049 $67,166,749 ($158,364)$532,703,434
68 342
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2022 Additions June 30, 2023
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 83,983,455 $2,207,346 86,190,801
Total capital assets not being depreciated 84,778,042 2,207,346 86,985,388
Capital assets being depreciated:
Buildings and Improvements 80,173,059 80,173,059
Clean Water Facilities and Lines 79,862,094 79,862,094
Infrastructure - Storm Drains 6,216,365 6,216,365
Infrastructure - Streets 7,377,546 7,377,546
Equipment and Vehicle 18,455,546 18,455,546
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 192,115,764 192,115,764
Less accumulated depreciation for:
Buildings and Improvements (24,872,437) (2,052,556) (26,924,993)
Clean Water Facilities and Lines (36,990,806) (2,649,003) (39,639,809)
Infrastructure - Storm Drains (1,758,712) (187,980) (1,946,692)
Infrastructure - Streets (2,678,971) (209,570) (2,888,541)
Equipment and Vehicle (14,183,722) (662,933) (14,846,655)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (80,515,802) (5,762,042) (86,277,844)
Net capital assets being depreciated 111,599,962 (5,762,042) 105,837,920
Business-type activities capital assets, net $196,378,004 ($3,554,696) $192,823,308
Balance Balance
June 30, 2022 Additions Retirements June 30, 2023
Component Unit:
South San Francisco Conference Center
Depreciable:
Buildings and Improvements $10,909,288 $19,250 $10,928,538
Furniture and Fixtures 932,393 932,393
Machinery and Equipment 599,715 599,715
Total Depreciable 12,441,396 19,250 12,460,646
Right of Use Assets:
Leased Land 8,351,928 8,351,928
20,793,324 19,250 20,812,574
Less accumulated depreciation and
amortization
Depreciable (10,455,226) (578,553)(11,033,779)
Leased Land (6,681,543) (278,397)(6,959,940)
(17,136,769) (856,950)(17,993,719)
Component Unit Capital Assets, Net $3,656,555 ($837,700)$2,818,855
69 343
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 3 – CAPITAL ASSETS (Continued)
B.Capital Asset Contributions – Some capital assets may have been acquired using federal and
State grant funds, or were contributed by developers or other governments. Contributed capital
assets are valued at their estimated acquisition value on the date contributed. Generally accepted
accounting principles require that these contributions be accounted for as revenues at the time the
capital assets are contributed.
C.Depreciation Allocation – Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
Governmental functions
General government $722,769
Fire 314,162
Police 562,031
Public works 6,926,349
Parks and recreation 555,222
Library 58,455
Economic and community development 51,609
Total Governmental Functions 9,190,597
Internal Service Funds 1,045,253
Total Governmental Activities $10,235,850
Business-Type Activities
Sewer Enterprise $5,475,767
Parking District 252,624
Storm Water 33,651
Total Business-Type Activities $5,762,042
NOTE 4 – INTER-FUND TRANSACTIONS
A.Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the
net interfund receivables and payables remaining after the elimination of all such balances within
governmental and business-type activities.
70 344
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 4 – INTER-FUND TRANSACTIONS (Continued)
B.Inter-Fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
Due From Other Fund Due to Other Fund Amount
General Fund Capital Improvement Capital Projects Fund $380,000
Community Development Block Grant Special Revenue Fund 100,000
$480,000
C.Transfers
Transfers between funds during the fiscal year ended June 30, 2023 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvement Capital Projects Fund $1,743,360
Capital Improvement Civic Campus Capital Projects Fund 1,078,591
Storm Water Enterprise Fund 250,000
Non-Major Governmental Funds 8,289,450
Retiree Health Benefits Internal Service Fund 450,000
American Rescue Plan Act Fund General Fund 1,970,000
Capital Improvement Capital Projects Fund 25,741
Capital Infrastructure Reserve Capital Projects Fund General Fund 2,056,400
Capital Improvement Capital Projects Fund 1,717,943
Sewer Enterprise Fund 3,000
Parking District Enterprise Fund 2,000
Storm Water Enterprise Fund 1,550,000
Capital Improvements Orange Memorial Park Non-major Governmental Funds 3,175,615
Non-Major Governmental Funds General Fund 1,257,282
Capital Improvement Capital Projects Fund 7,025,617
Storm Water Enterprise Fund 694,778
Equipment Replacement Internal Service Fund 598,442
Capital Improvement Civic Campus Capital Projects Fund 1,820,141
Sewer Enterprise Fund Capital Improvement Capital Projects Fund 304,441
Total $34,012,801
71 345
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT
A. Current Year Transactions and Balances
A summary of governmental and business-type activities transactions for the fiscal year ended
June 30, 2023 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2022 Additions Retirement June 30, 2023 Portion
Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1)$43,905,000 $41,990,000 $1,030,000 $40,960,000 $1,080,000
Plus: Unamortized bond premium 9,104,471 379,353 8,725,118
2021A Community Civic Campus Project, 4.00% (2)86,410,000 84,200,000 2,155,000 82,045,000 2,240,000
Plus: Unamortized bond premium 17,391,902 724,663 16,667,239
2022A Orange Memorial Park Project, 4.00 to 5.25% (3)65,420,000 65,420,000 65,420,000
Plus: Unamortized bond premium 6,686,317 278,597 6,407,720
Total Lease Revenue Bonds 195,735,000 224,792,690 4,567,613 220,225,077 3,320,000
Direct Borrowing:
2007 Loans Payable to the Successor Agency (4) 2,150,152 100,000 2,050,152
Leases Financings (5):
2013 Fire Truck 144,637 144,637
Total Leases Financings 144,637 144,637
Total Direct Borrowing 2,294,789 244,637 2,050,152
Net Governmental Long-Term Debt $195,735,000 $227,087,479 $4,812,250 $222,275,229 $3,320,000
Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, $6,000,000 $1,980,000 $360,000 $1,620,000 $375,000
2.75 to 4.75%, due 04/30/26 (6)
Direct Borrowing:
1999 State Water Resources Loan, 2.6%, due 8/1/22 (7) 47,721,252 3,190,468 3,190,468
2004 State Water Resources Loan, 2.5%, due 1/1/27 (7) 21,258,529 5,274,483 1,270,190 4,004,293 1,301,944
2008 State Water Resources Loan, 2.4%, (8) 9,164,505 3,699,492 491,650 3,207,842 503,449
2018 State Water Resources Loan, 1.8% (9) 53,403,000 48,635,007 $6,599,936 4,000,000 51,234,943 2,187,808
Total Direct Borrowing 131,547,286 60,799,450 6,599,936 8,952,308 58,447,078 3,993,201
Net Business-Type Long-Term Debt $137,547,286 $62,779,450 $6,599,936 $9,312,308 $60,067,078 $4,368,201
(1)2020A Lease Revenue Bonds – In February 2020, the City of South San Francisco Public
Facilities Financing Authority entered into a $43.9 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station, located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds. The Series 2020A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of a City-owned parking garage and a City-owned park. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
72 346
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT (Continued)
(2) 2021A Lease Revenue Bonds – In May 2021, the City of South San Francisco Public
Facilities Financing Authority entered into a $86.4 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting a new City
library, council chamber, parks and recreation facilities, and a community theater to be located
within the City’s new Civic Center Campus, street and roadway improvements located within the
City, solar equipment to be located on City property, and related improvements, facilities and
equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.
The Series 2021A Bonds are equally and ratably payable from base rental payments to be made
by the City for the right to use certain real property consisting of the same City-owned parking
garage and City-owned park pledged under the 2020A Bonds and six additional properties,
including the property on which the first two phases of the Community Civic Campus project is
being constructed. The lease agreement contains provisions that in an event of default, the lessor
may exercise any and all remedies available to it under the lease agreement, including the right to
enforce the terms of the lease.
(3) 2022A Lease Revenue Bonds – In May 2022, the City of South San Francisco Public
Facilities Financing Authority entered into a $65.4 million lease agreement to finance costs of the
acquisition, construction and installation of certain capital improvements of the City to be located
at the City-owned Orange Memorial Park and pay the costs incurred in connection with the
issuance of the Series 2022A Bonds. The Series 2022A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of the same properties pledged under the 2021A Bonds. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
(4) As of June 30, 2023, the Oyster Point Improvements Impact Fund owed the Successor Agency
(formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the
amount of $2,050,152 for the Flyover and Hookramps Projects that were completed in prior years.
The outstanding balance will be paid off from the future developer fees. With the dissolution of the
Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to
repay. This payable is recorded as a long-term obligation (see also Note 14). Prior to the dissolution
of all Redevelopment Agencies in California by the State, the former Redevelopment Agency
(Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital Projects Fund
(the Oyster Point Fund). The impact fees are collected according to a fee methodology adopted
under the terms of AB 1600. The fees are assessed against commercial development in a specific
geographic area that is primarily east of Highway 101 to repay the former Agency for the funds it
advanced to the Oyster Point Fund to pay for freeway interchange improvements at Highway 101
and Oyster Point Blvd, and are assessed per an adopted Engineering report's formula that measures
each new development's impact on the area's trip traffic. While the former Agency advanced the
funds, the impact fee was put in place specifically to charge future developers for their share of
traffic trips generated prior to the construction of the improvements. When the Agency was
dissolved, the Successor Agency, and therefore, all local taxing entities, are entitled to receive
future Oyster Point Impact fees collected by the City from developers. Future developers, not the
City of South San Francisco, are legally obligated to pay the future fees until the liability owed to
the Successor Agency is paid off as long as the fee continues to be levied and is in place. The
repayment has significantly slowed since 2007, as development has subsided and fees assessed have
therefore dropped. Management believes it may take 10-30 years or more before the Successor
Agency is fully paid back.
73 347
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT (Continued)
(5) The City has entered into long-term lease financing agreements with various financing
agencies. Under these leases, all leased assets shall be distributed to the City at the end of the
lease terms and shall thereafter remain the sole property of the City. Therefore, these leases have
been recorded at the present value of the future minimum lease payments at the date of inception
of the lease, and the corresponding assets have been included in the Statement of Net Position as
appropriate. Lease financing payments are made from revenues of the Equipment Replacement
Internal Service Fund and the General Fund. The lease agreements contain provisions that in an
event of default, the lessor may (a) seize the properties, (b) sell or lease the properties or (c) exercise
any and all remedies available to it under applicable law, including the right to enforce the terms of
the lease, recover damages from the breach of the lease, and rescind the lease as to any portion of or
all of the properties. The final payment on the lease financing agreements was made during the
year ended June 20, 2023.
(6) On October 25, 2005, the California Statewide Communities Development Authority issued
2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale
and the City’s portion of the debt is $6,000,000. Proceeds were used to finance sewer system
capital improvement.
The principal payments on the debt commenced in October 2006 and principal is due each
October 1. The final principal payment is due on October 1, 2026. Interest payments ranging
from the rates of 2.75% to 4.75% are payable semi-annually each April 1 and October 1.
As of June 30, 2023, the City is in compliance with the provisions of Article VI of the Installment
Purchase Agreement associated with the 2005D Bonds.
The 1999 and 2004 State Water Resources Loans and the 2005D Water and Wastewater Revenue
Bonds are secured by a pledge of net revenues of the City’s Sewer Enterprise Fund. Net
Revenues available for debt service amounted to $7.9 million which represented coverage of 1.52
over the $5,218,915 in total debt service.
(7) Two loans were authorized by the State Water Resources Control Board (SWRCB) in
1999 and 2004 to improve and expand the City’s wastewater treatment plant. Loan proceeds were
issued as the projects progressed and debt service payments commenced one year after project
completion. The loan agreements include provisions that in an event of default, all principal
payments shall be immediately due and payable, interests on all amounts owed shall be paid at
the highest legal rate, any additional payments shall be made and SWRCB shall enforce its rights
under the agreements by any judicial proceeding, whether in law or equity. The final payment on
the 1999 loan agreement was made during the year ended June 30, 2023.
(8) 2008 State Water Resources Control Board Loan – In November 2007, the City approved
the $11.8 million loan agreement with the SWRCB to finance the City’s Wet Weather Program
project. Under the terms of the contract, the City has agreed to repay $11.8 million to the State in
exchange for receiving $9.2 million in proceeds to be used to fund the Project. The difference
between the repayment obligation and proceeds amounted to $2.6 million and represents in-
substance interest on the outstanding balance. Debt service payments commenced on August 15,
2009.
74 348
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT (Continued)
(9)2018 State Water Resources Control Board Loan – In September 2018, the City entered into a
$53.4 million loan agreement with the SWRCB to finance the South San Francisco/San Bruno’s
Water Quality Control Plant Wet Weather and Digester Project. A portion of this amount, $4 million,
was anticipated to be forgiven on the date of completion of construction. Construction was
completed in October 2022, and the $4 million was forgiven during the year ended June 30, 2023.
For the remaining $49.4 million, under the terms of the loan agreement the City has agreed to
repay $59.2 million to the State. The difference between the repayment obligation and proceeds
amounted to $9.8 million and represents in-substance interest on the outstanding balance.
As of June 30, 2023, the City has completed the drawn down from SWRCB. There was no debt
service payment required in fiscal year 2023, with the first debt service payment due in fiscal year
ending 2024. Future debt service is expected to average $3 million per year through fiscal year 2043.
In the event default has occurred, the City shall, upon demand, immediately accelerate the
payment of all principal owed under this loan agreement, if any, which shall be immediately due
and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional
payments as defined in the loan agreement.
The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s
Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to
$23.2 million which represented coverage of 43 over the $543,443 in debt service.
B. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified
repayment terms:
Governmental Activities Business-Type Activities
For the Year Lease Revenue Bonds
2005 Water and
Wastewater Revenue Bonds
Ended June 30 Principal Interest Principal Interest
2024 $3,320,000 $8,205,338 $375,000 $71,625
2025 5,170,000 8,058,737 395,000 52,375
2026 5,410,000 7,826,538 415,000 32,125
2027 5,650,000 7,580,287 435,000 10,875
2028 5,910,000 7,322,988
2029-2033 33,620,000 32,540,187
2034-2038 41,590,000 24,572,888
2039-2043 51,355,000 14,805,087
2044-2048 36,400,000 3,295,475
188,425,000 $114,207,525 $1,620,000 $167,000
Plus: Unamortized bond premium 31,800,077
$220,225,077
75 349
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT (Continued)
Future debt service requirements, including interest and leases financings, but excluding the 2007
Loan payable to the Redevelopment Successor Agency at June 30, 2023, were as follows:
For the Year Governmental Activities Business-Type Activities
Ended June 30 Principal Interest Principal Interest
2024 $3,993,201 $1,028,116
2025 4,038,083 988,269
2026 4,123,204 908,305
2027 2,808,110 826,622
2028 2,861,900 778,239
2029-2033 12,747,012 3,182,288
2034-2038 13,316,573 2,037,956
2039-2043 14,558,995 795,535
Totals 58,447,078 $10,545,330
2007 Loans Payable $2,050,152
$2,050,152 $58,447,078
Direct Borrowings
Lease financing agreements are issued for the purpose of financing the construction or acquisition
of projects defined in each leasing arrangement. Projects are leased to the City for lease
payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to
meet the debt service obligations of the leasing arrangement. At the termination of the leasing
arrangement, title to the project will pass to the City.
Leasing arrangements are similar to debt; they allow investors to participate in a share of
guaranteed payments which are made by the City. Because they are similar to debt, the present
value of the total of the payments to be made by the City is recorded as long-term debt. The
City’s leasing arrangements are included in long term obligations discussed above.
A summary of capital assets leased through the issuance of leasing arrangements follows:
Original
Leasing Arrangement Fund/Activity Cost
Capital Leases Governmental Activity $5,842,799
C. Legal Debt Margin
The City is subject to a debt limit that is 3.75% of the total assessed value of property, net of
exempt real property. At June 30, 2023, that amount was $1,039,891,525. As of June 30, 2023,
the City did not have any outstanding debt applicable to the limit.
76 350
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT (Continued)
D. Debt without City Commitment
In April 2022 the Community Facilities District No. 2021-01 Special Tax Bonds, Series 2022 in
the amount of $19,685,000 were issued by the City of South San Francisco Community Facilities
District No. 2021-01. The City is the collecting and paying agent for the debt issued by the
District, but has no direct or contingent liability or moral obligation for the payment of this debt.
As of June 30, 2023 the outstanding balance of the issue was $19,685,000.
NOTE 6 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three
captions. These captions apply only to Net Position, which is determined only at the Government-
wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
The City’s fund balances are classified in accordance with generally accepted accounting
principles which require the City to classify its fund balances based on spending constraints
imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to be
maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such
as prepaids, notes receivable, and land held for redevelopment are included. However, if
proceeds realized from the sale or collection of nonspendable assets are restricted, committed or
assigned, then Nonspendable amounts are required to be presented as a component of the
applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
77 351
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Committed fund balances have constraints imposed by Council Resolution of the City Council
which may be altered only by Council Resolution of the City Council. Nonspendable amounts
subject to council commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. The City Council
had delegated authority to the Finance Director to assign fund balances which are not otherwise
restricted or committed. This category includes nonspendables, when it is the City’s intent to use
proceeds or collections for a specific purpose, and residual fund balances, if any, of Special
Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
Minimum Fund Balance Policies – The City’s Reserve Policy is to have the General Fund
Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in
alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the
general fund operating expenditures budget as well as an economic contingency which is 7% of
general fund revenues. Funds in excess of these requirements will continue to be earmarked for
paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits
(OPEB) or for Infrastructure and Facilities Replacement needs.
Detailed classifications of the City’s Fund Balances, as of June 30, 2023, are below:
Capital Project Funds
Capital Capital Capital
General Capital Infrastructure Improvements Improvements
Fund Balance Classifications Fund Improvement Reserve Fund Police Station Civic Campus
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $574
Leases 476,548
Total Nonspendable Fund Balances 477,122
Restricted for:
Civic campus projects $3,509,832 $5,703,795
Police station projects $331,784
Redevelopment and community development activities 2,823,118
Total Restricted Fund Balances 2,823,118 3,509,832 331,784 5,703,795
Committed for:
Capital projects 3,775,873
Local services 16,760,780
Total Committed Fund Balances 20,536,653
Assigned to:
Capital projects 8,661,539
Capital infrastructure projects $20,229,463
Total Assigned Fund Balances 8,661,539 20,229,463
Unassigned:
General fund 56,060,734
Other fund deficits (1,004,155)
Total Unassigned Fund Balances 56,060,734 (1,004,155)
Total Fund Balances $88,559,166 $2,505,677 $20,229,463 $331,784 $5,703,795
78 352
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Capital
Projects
Fund
Capital
Improvements Other
Orange Governmental
Fund Balance Classifications (continued) Memorial Park Funds
Restricted for:
Civic campus projects $57,804,106
Gas Tax projects $498,414
Developer contributions projects 8,829,153
Community Development Block Grant projects 44,105
Maintenance districts projects 5,190,723
Transportation sales tax projects 5,678,973
City programs projects 19,935,351
Low and moderate housing projects 2,942,263
Other Special Revenues projects 10,569,333
Capital projects activities 83,219,253
Total Restricted Fund Balances 57,804,106 136,907,568
Total Fund Balances $57,804,106 $136,907,568
C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for
governmental funds. Under this system, purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of applicable
appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or
assigned fund balance, depending on the classification of the resources to be used to liquidate the
encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations
lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in
governmental funds as of June 30, 2023, were as listed below:
Governmental funds:Amount
General Fund $8,663,789
Capital Improvement Capital Projects Fund 24,244,690
Capital Infrastructure Reserve Capital Projects Fund 1,617,350
Capital Improvements Police Station Capital Projects Fund 247,048
Capital Improvements Civic Campus Capital Projects Fund 9,970,796
Capital Improvements Orange Memorial Park 4,057,041
Other Governmental Funds 2,901,566
Total $51,702,280
79 353
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLANS
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions
to/deductions from the Plans’ fiduciary net position have been determined on the same basis as
they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
A. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to
participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans,
agent multiple-employer defined benefit pension plans administered by the California Public
Employees’ Retirement System (CalPERS), which acts as a common investment and
administrative agent for its participating member employers. Benefit provisions under the Plans
are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the
CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of
living adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10
years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments
for each plan are applied as specified by the Public Employees’ Retirement Law.
80 354
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous
Classic Plan* Tier 2 Plan* PEPRA Plan
Prior to After On or after
Hire date April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8% 7% 6.5%
Required employer contribution rates 9.53% 9.53% 9.53%
Required Unfunded Actuarial Liability Contribution $7,533,535
* Effective July 2021, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an
additional 2% for their share of pension costs.
Safety
Classic Plan ** Tier 2 Plan ** PEPRA Plan
Hire date Prior to
April 25, 2010
After
April 25, 2010
On or after
January 1, 2013
Benefit formula 3% @ 50
3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9% 9% 11.5%
Required employer contribution rates 20.45% 20.45% 20.45%
Required Unfunded Actuarial Liability Contribution $10,143,798
** Effective October 2018, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an
additional 2% for their share of pension costs.
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a
percentage of payroll for the normal cost portion as noted in the rates above and as a dollar
amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a
monthly basis or the City can elect a lump sum payment option. The City’s required contributions
for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2023
were $7,533,535 and $10,143,798, respectively, which were made under the lump sum payment
option. In addition, the City made additional contributions toward the unfunded liability of
$304,000 to each Plan during the year ended June 30, 2023.
Employees Covered – As of the June 30, 2021 actuarial valuation date and the June 30, 2022
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 496 315
Inactive employees entitled to but not yet receiving benefits 393 99
Active employees 287 152
Total 1,176 566
81 355
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires
that the employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for both Plans are determined annually on an actuarial basis as of June 30 by
CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs
of benefits earned by employees during the year, with an additional amount to finance any
unfunded accrued liability. The City is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees. Employer contribution rates
may change if plan contracts are amended. Payments made by the City to satisfy contribution
requirements that are identified by the Plan terms as Plan member contribution requirements are
classified as Plan member contributions.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of
June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30,
2022 using standard update procedures. The long-term portion of governmental activities net
pension liability is liquidated primarily by the General Fund. A summary of principal
assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions – The total pension liabilities as of the June 30, 2022 measurement date
were based on the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
(1) Actuarial assumptions are the same for all benefi tiers (Classic Tier 1, Classic Tier II, and PEPRA)
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expenses, including inflation.
Miscellaneous and Safety (1)
6/30/2021
6/30/2022
Entry-Age Normal Cost Method
6.90%
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are
based on the 2021CalPERS Experience Study forthe period from2001to 2019. Pre-retirement and post-retirement
mortality rates include generationalmortality improvement using 80% of Scale MP-2020 published by the Society
ofActuaries. Formore details on this table,please referto the CalPERSExperience Study and Review ofActuarial
Assumptions report from November 2021 that can be found on the CalPERS website.
2.30%
(2)
6.90% (3)
The lesser of contract COLA or 2.30% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.30% thereafter
Derived using CalPERS Membership Data for all Funds (4)
2.80%
82 356
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2021 valuation were based on the results of a November 2021 actuarial experience study for the
period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS
website.
Discount Rate – The discount rate used to measure the total pension liability was 6.90%. The
projection of cash flows used to determine the discount rate for each Plan assumed that
contributions from all plan members in the Public Employees Retirement Fund (PERF) will be
made at the current member contribution rates and that contributions from employers will be
made at statutorily required rates, actuarially determined. Based on those assumptions, each
Plan’s fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members for all plans in the PERF. Therefore, the long- term expected
rate of return on plan investments was applied to all periods of projected benefit payments to
determine the total pension liability for each Plan.
The long- term expected rate of return on pension plan investments was determined using a
building- block method in which expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class.
In determining the long- term expected rate of return, CalPERS took into account both short- term
and long- term market return expectations. Using historical returns of all the fund’s asset classes,
expected compound (geometric) returns were calculated over the next 20 years using a building-
block approach. The expected rate of return was then adjusted for assumed administrative
expenses of 10 basis points.
83 357
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
The expected real rates of return by asset class are as follows:
Asset Class (a)
Assumed
Asset
Allocation
Real Return
(a), (b)
Global Equity-Cap Weighted 30.0% 4.54%
Global Equity-Non-Cap Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period.
(b)Figures are based on the 2021 Asset Liability Management study.
Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement
date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-
term expected rate of return, CalPERS took into account long-term market return expectations as
well as the expected pension fund cash flows. Projected returns for all asset classes are estimated,
combined with risk estimates, and are used to project compound (geometric) returns over the long
term. The discount rate used to discount liabilities was informed by the long-term projected
portfolio return. In addition, demographic assumptions and the inflation rate assumption were
changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial
Assumptions.
84 358
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
C. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2021 (Measurement Date)$264,236,232 $202,373,505 $61,862,727
Changes in the year:
Service cost 4,896,807 4,896,807
Interest on the total pension liability 18,379,820 18,379,820
Changes of benefit terms
Changes of assumptions 7,856,877 7,856,877
Differences between actual and expected experience (893,635) (893,635)
Plan to plan resource movement
Contribution - employer 9,491,964 (9,491,964)
Contribution - employees 2,293,651 (2,293,651)
Net investment income (15,367,557) 15,367,557
Benefit payments, including refunds of employee
contributions (14,547,349) (14,547,349)
Administrative expenses (126,067) 126,067
Other Miscellaneous Income/(Expense)
Net changes 15,692,520 (18,255,358) 33,947,878
Balance at June 30, 2022 (Measurement Date)$279,928,752 $184,118,147 $95,810,605
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2021 (Measurement Date)$376,140,913 $293,624,138 $82,516,775
Changes in the year:
Service cost 7,567,350 7,567,350
Interest on the total pension liability 26,419,737 26,419,737
Changes of benefit terms
Changes of assumptions 12,584,955 12,584,955
Differences between actual and expected experience (684,769)(684,769)
Plan to plan resource movement
Contribution - employer 13,387,919 (13,387,919)
Contribution - employees 2,886,541 (2,886,541)
Net investment income (22,271,961) 22,271,961
Benefit payments, including refunds of employee
contributions (17,860,080) (17,860,080)
Administrative expenses (182,910)182,910
Other Miscellaneous Income/(Expense)
Net changes 28,027,193 (24,040,491) 52,067,684
Balance at June 30, 2022 (Measurement Date)$404,168,106 $269,583,647 $134,584,459
Grand Total - Both Plans $684,096,858 $453,701,794 $230,395,064
85 359
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following
presents the net pension liability of the City for each Plan, calculated using the discount rate for
each Plan, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $132,741,036 $189,849,785
Current Discount Rate 6.90% 6.90%
Net Pension Liability $95,810,605 $134,584,459
1% Increase 7.90% 7.90%
Net Pension Liability $65,402,680 $89,326,118
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary
net position is available in the separately issued CalPERS financial reports.
D.Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City recognized pension expense of $11,577,776 and
$17,686,519 for the Miscellaneous and Safety Plans, respectively, for total pension expense of
$29,264,295. At June 30, 2023, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $10,675,386
Changes of assumptions 5,147,609
Differences between actual and expected experience 264,171 ($585,485)
Net differences between projected and actual earnings on
plan investments 9,222,206
Total $25,309,372 ($585,485)
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $15,352,613
Changes of assumptions 8,389,970
Differences between actual and expected experience 696,580 ($456,513)
Net differences between projected and actual earnings on
plan investments 13,538,533
Total $37,977,696 ($456,513)
Grand Total $63,287,068 ($1,041,998)
86 360
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
$26,027,999 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Plan:
Year Ended Annual
June 30 Amortization
2024 $4,133,247
2025 3,461,131
2026 611,256
2027 5,842,867
Safety Plan:
Year Ended Annual
June 30 Amortization
2024 $6,785,872
2025 5,954,090
2026 936,489
2027 8,492,119
E.Reduction of CalPERS Discount Rate
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal
year 2021-22. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the
excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a
reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since
CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the
CalPERS Board elected to defer any changes to the asset allocation until the ALM process
concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset
allocation along with the new capital market assumptions, economic assumptions and
administrative expense assumption support a discount rate of 6.90% (net of investment expense,
but without a reduction for administrative expense) for financial reporting purposes. This
includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in
the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This
study also recommended modifications to retirement rates, termination rates, mortality rates and
rates of salary increases that were adopted by the CalPERS Board. These new assumptions are
reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022
measurement date.
87 361
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 8 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this
Plan, participants are not taxed on the deferred portion of their compensation until it is distributed
to them; distributions may be made only at termination, retirement, death or in an emergency as
defined by the Plan. The City does not make any contributions to the Plan.
The City has no liability for any losses incurred by the Plan and does not participate in any gains,
but does have the duty of due care that would be required of an ordinary prudent investor. The
City has a contract with Empower Retirement to manage and invest the assets of the Plan. The
assets in the Plan are the sole property of the participants or their beneficiaries. Since the assets
held under the Plan are not the City’s property and are not subject to claims by general creditors
of the City, they have been excluded from these financial statements. The Plan requires
investments to be stated at fair value and it requires all gains and losses on Plan investments to
accrue directly to participant accounts.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust
for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under
these plans are not the City’s property and are not subject to City control, they have been
excluded from these financial statements.
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS
A.General Information about the City’s Other Post Employment Benefit (OPEB) Plans
The City provides certain health care benefits for all employees who retire after attaining age 50
with at least five years of service or disability at any age. The City provides certain health care
benefits for those employees hired prior to April 25, 2010. In order to reduce the City’s OPEB
obligations over time, the City changed to a defined contribution post-retirement health plan for
employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a
medical after retirement health plan (MARA), and contributes 1.5% of salary for those
employees.
B.Defined Benefit Plan Description
The City’s Post Employment Benefit Plan for employees hired prior to April 25, 2010 is an agent
multiple-employer defined benefit OPEB plan.
The City joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-
employer plan administered by CalPERS, consisting of an aggregation of single-employer
plans. The CERBT issues a publicly available financial report that includes financial statements
and required supplementary information. That report may be obtained from the California Public
Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.
88 362
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2023:
Eligibility • Hired < 4/25/2010
• Retire directly from City and elect coverage:
• Age 50 and 5 years City service or
• Disability retirement with 5 years City service
Benefit • City pays single premium up to largest HMO single premium
Cap for 2022/23:
- $1,430.80/month pre-65 (Blue Shield)
- $785.04/month post-65 Medicare eligible (Blue Shield)
- $1,971.53/ month post-65 not Medicare eligible (Kaiser)
• Medicare ineligible retirees allowed to stay in their pre-Medicare premium plans
after age 65
Surviving Spouse Benefit • Participation with premium payment
• AFSCME, Local 1569, Mid-Management, IAFF
• surviving spouses covered 2 months following death of retiree
Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life
For the year ended June 30, 2023, the City’s contributions to the Plan were $5,551,201.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of the June 30, 2022 measurement date:
Active employees 167
Inactive employees or beneficiaries currently
receiving benefit payments 360
Total 527
C. OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to
OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net
position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net
position have been determined on the same basis as they are reported by the California
Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized
when currently due and payable in accordance with the benefit terms. Investments are reported at
fair value. The long-term portion of governmental activities net OPEB liability is liquidated
primarily by the General Fund.
89 363
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June
30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2021, rolled forward to June 30, 2022, based on the
following actuarial methods and assumptions:
Valuation Date • June 30, 2021
Measurement Date • June 30, 2022
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll
Amortization Method • Level dollar
Amortization Period • Average of 19 years remaining for 2022/23
Asset Valuation Method • Investment gains and losses spread over 5-year rolling period
• 6.25% at June 30, 2022
• 6.25% at June 30, 2021
• Expected City contributions projected to keep sufficient plan assets to
pay all benefits from trust.
Inflation • 2.50% per annum
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of
3.75% in 2076 and later years
• Medicare (Non-Kaiser) - 5.85% for 2022, decreasing to an ultimate rate
of 3.75% in 2076 and later years
• Medicare (Kaiser) - 4.75% for 2022, decreasing to an ultimate rate of
3.75% in 2076 and later years
Mortality, Retirement, Disability, Termin ation • CalPERS 1997-2015 Experience Study
Mortality Improvement • Mortality projected fully generational with Scale MP-2021
Healthcare participation for future retirees • 100% if covered, 95% if waived
Discount Rate and Long-Term Expected
Rate of Return on Assets
Actuarial Assumptions
90 364
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global equity 49.0% 4.56%
Fixed income 23.0% 1.56%
TIPS 5.0% -0.08%
Commodities 3.0% 1.22%
REITs 20.0% 4.06%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The
projection of cash flows used to determine the discount rate assumed that City contributions will be
made at rates equal to actuarially determined contribution rates. Based on those assumptions, the
OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB
payments for current active and inactive employees and beneficiaries. Therefore, the long-term
expected rate of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Changes of Assumptions – For the measurement date of June 30, 2022, the discount rate decreased
from 6.75% to 6.25%, the inflation rate decreased from 2.75% to 2.50%, the payroll growth rate
decreased from 3.00% to 2.75%, the medical trend rate for Kaiser Senior Advantage decreased from
7.0% to 6.75% and the mortality improvement scale was updated to Scale MP- 2021.
91 365
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
E. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a)(b)(a) - (b)
Balance at June 30, 2021 Measurement Date $91,920,619 $33,801,461 $58,119,158
Changes Recognized for the Measurement Period:
Service Cost 1,374,432 1,374,432
Interest on the total OPEB liability 5,703,844 5,703,844
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions from the employer 4,868,877 (4,868,877)
Net investment income (4,575,167)4,575,167
Benefit payments (4,067,115) (4,067,115)
Administrative expenses (8,575)8,575
Net changes 3,011,161 (3,781,980)6,793,141
Balance at June 30, 2022 Measurement Date $94,931,780 $30,019,481 $64,912,299
Increase (Decrease)
F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost
Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%)
or 1-percentage-point higher (7.75%) than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate -1% Current Discount Rate Discount Rate +1%
(5.25%) (6.25%) (7.25%)
$76,947,176 $64,912,299 $54,932,062
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point
lower or 1-percentage-point higher than the current healthcare cost trend rates as discussed in the
assumptions above:
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$53,974,449 $64,912,299 $78,173,471
92 366
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
G.OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2023, the City recognized OPEB expense of $4,509,586. At June 30,
2023, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date $5,551,201
Differences between actual and expected experience ($1,034,056)
Changes in assumptions 448,781 (116,174)
Net differences between projected and actual earnings on
plan investments 2,461,726
Total $8,461,708 ($1,150,230)
$5,551,201 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2024 ($260,204)
2025 421,246
2026 261,134
2027 1,338,101
H.Defined Contribution Plan
The City of South San Francisco funded HRA Plan is a defined contribution OPEB plan for
employees hired on or after April 25, 2010. For those new hires, the City provides a medical after
retirement health plan (MARA), and contributes 1.5% of salary for those employees. In addition,
employees contribute to the MARA plan as directed by their respective bargaining unit’s
Memorandum of Understanding or compensation plan.
The plan is administered by Matrix Trust Company. Employee contributions for the fiscal year
totaled $397,012. Employer contributions of $601,585 were paid into the Defined Contribution
Plan. No liability for the defined contribution has been included in the report since the City fully
paid the annual required contribution. Since the assets held under this plan are not the City’s
property and are not subject to claims by general creditors of the City, the assets have been
excluded from these financial statements.
93 367
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 10 – LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment. The City recognizes lease receivable or liabilities with an initial,
individual value of $1,000,000 or more, based on the present value of future lease payments
remaining at the start of the lease.
Lessee – The City does not have any noncancellable leases of nonfinancial assets as of June 30,
2023, other than the financed purchase discussed in Note 5. The Conference Center Authority is
a lessee for the noncancellable lease of the Conference Center from the City. At the
commencement of a lease, City or Conference Center Authority recognize a lease liability and an
intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.
At the commencement of a lease, the City or Conference Center Authority initially measures the
lease liability at the present value of payments expected to be made during the lease term.
Subsequently, the lease liability is reduced by the principal portion of lease payments made. The
lease asset is initially measured as the initial amount of the lease liability, adjusted for lease
payments made at or before the lease commencement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City or Conference Center
Authority determines (1) the discount rate it uses to discount the expected lease payments to
present value, (2) lease term, and (3) lease payments as follows:
• The City or Conference Center Authority uses the interest rate charged by the lessor as
the discount rate. When the interest rate charged by the lessor is not provided, the City or
Conference Center Authority generally uses its respective estimated incremental
borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City or Conference Center Authority is
reasonably certain to exercise.
The City and Conference Center Authority monitor changes in circumstances that would require a
remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur
that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term
debt on the statement of net position.
Lessor – The City is a lessor for a noncancellable leases of buildings, billboards and facilities.
The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide
and fund financial statements.
94 368
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 10 – LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as
follows:
•The City uses its estimated incremental borrowing rate as the discount rate for leases.
•The lease term includes the noncancellable period of the lease.
•Lease receipts included in the measurement of the lease receivable is composed of fixed
payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2023
were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
General Fund:
Conference Center $2,059,878 $2,061,362
Costco 3,886,329 3,778,655
Billboards 6,813,296 6,442,938
Low and Moderate Income Housing Assets Fund:
Magnolia 1,181,466 1,153,603
Total governmental activities leases receivable $13,940,969 $13,436,558
95 369
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 10 – LEASES (Continued)
Conference Center – The Conference Center Authority, a discrete component unit, leases land
from the City under an operating lease commencing on January 1, 1999, with a 30-year term from
February 1, 1999, to January 31, 2029. The rent amount was subject to re-negotiation at the
option of either party between January 1 and February 28, 2009 and 2019. The cost and carrying
amount of leased land under this lease receivable is $5,040,000. The City recognized $343,561 in
lease revenue and $72,279 in interest revenue during the current fiscal year related to this lease.
Also, the City has deferred inflows of resources associated with this lease that will be recognized
as revenue over the lease term.
Costco – Price Club Associates leases the land for the Costco store on South Airport Boulevard
from the City. Lease payments are based on a percentage of Costco’s gross annual sales, with
minimum annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal
2014, Costco exercised the option to extend the lease through fiscal year 2029, with an option for
a 6 year extension through fiscal year 2035. The City recognized $328,579 in lease revenue and
$121,142 in interest revenue during the current fiscal year related to this lease. Also, the City has
deferred inflows of resources associated with this lease that will be recognized as revenue over
the lease term.
Billboards – The City leases digital billboard space to third parties under three lease agreements.
The original terms of the leases were thirty years and as of June 30, 2023, the leases had 21 to 28
years remaining. The rent is based on a minimum annual guaranteed payment, paid on an annual
basis, which increases 15% every five years. The City recognized $252,169 in lease revenue and
$206,014 in interest revenue during the current fiscal year related to these leases. Also, the City
has deferred inflows of resources associated with these leases that will be recognized as revenue
over the lease term.
Magnolia – Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the
City. Minimum lease payments are set at $51,800 per year, and are payable through the fiscal
year 2062. The City recognized $29,579 in lease revenue and $36,383 in interest revenue during
the current fiscal year related to this lease. Also, the City has deferred inflows of resources
associated with this lease that will be recognized as revenue over the lease term.
C. Lease Payable
The Conference Center Authority’s lease payable consists of the following as of June 30, 2023:
Balance Balance Current
June 30, 2022 Deductions June 30, 2023 Portion
Land Lease $2,409,307 $349,429 $2,059,878 $359,990
96 370
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 10 – LEASES (Continued)
The Authority has a property lease agreement with the City of South San Francisco for 30 years
expiring in 2029. Under the agreement, the City subleases to the Authority, the property in
exchange for the annual lease payment for the use of land. During the fiscal year, the lease
payments totaled $420,000. The total principal and interest paid during the year was $80,824 and
$339,176, respectively. The initial present value of the right of use asset and lease liability, at a
treasury bond rate of 3.00% over the thirty years, was $2,748,483. The balance of the right of use
asset as of June 30, 2023 was $1,391,988, net of accumulated amortization, which is reported
with the Authority’s capital assets in Note 3. The balance of the lease liability as of June 30, 2023
was $2,059,878. There are termination clauses included in the lease agreement, however
management has determined that it is not likely that those clauses will be exercised.
Future minimum lease payments as of June 30, 2023 are as follows:
Year Ending Principal Interest
June 30 Payments Payments Total
2024 $359,990 $60,010 $420,000
2025 370,871 49,129 420,000
2026 382,080 37,920 420,000
2027 393,629 26,371 420,000
2028 - 2029 553,308 16,692 570,000
$2,059,878 $190,122 $2,250,000
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of
this joint organization are not the City’s responsibility and the City does not have an equity
interest in the assets of each joint organization except upon dissolution of the joint organization.
A. Oyster Point Marina
(OPM) was established in 1977 by the City and the San Mateo County Harbor District (Harbor
District) for the purpose of expanding, improving and operating the Oyster Point Marina and
Park. The governing board consists of two of the City's council members and two Harbor District
commissioners. The Harbor District operates OPM. Operation of the Marina provides revenues
for the marina's operations. The City retains title to the land; however, the City is not liable for
any obligations of the San Mateo County Harbor District. Condensed unaudited financial
information may be obtained from San Mateo County Harbor District, #1 Johnson Pier, Half
Moon Bay, CA 94019.
97 371
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
B. Peninsula Traffic Congestion Relief Alliance (PTCRA)
PTCRA was formed from the merger of the Inter City Transportation Systems Management
Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The
members are the cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay,
Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic
congestion. The governing board consists of one council member from each member city. The
finance director of the City of San Carlos acts as the treasurer and controller of PTCRA. The
individual cities are not liable for the debts, liabilities or obligations of PTCRA. Each member
city has an equal interest in PTCRA. Condensed accrual basis unaudited financial information
may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos,
CA 94070.
C. City/County Association of Governments (C/CAG)
C/CAG was established in 1990 by the County of San Mateo and the Cities of San Mateo County
for preparation, adoption, monitoring and enforcing of Countywide state mandated plans. A Board
of Directors consisting of one council member from each member city and one member from the
County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as the treasurer
of C/CAG. The individual cities and the County are not liable for the debts, liabilities, or obligations
of C/CAG. Condensed unaudited cash basis financial information may be obtained from the City of
San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070.
NOTE 12 – RISK MANAGEMENT
A. Insurance Coverage
The City participates in Pooled Liability Assurance Network Joint Powers Authority (PLAN
JPA), a nonprofit benefit corporation established to provide liability insurance coverage, claims
and risk management, and legal defense to its participating members. PLAN JPA provides
$1,000,000 of self- funded general liability and automobile coverage (except $250,000 is for the
Employee benefits Plan Administration liability) and $29,000,000 excess liability coverage per
occurrence and is responsible for paying claims in excess of the City’s $100,000 self-insured
retention. The Plan includes a per occurrence or wrongful act or employee benefit wrongful act
up to $10,000,000 with two retained limits of $5,000,000. For the year ended June 30, 2023, the
City paid PLAN JPA $2,263,829 in premiums and did not receive a refund of premiums paid in
prior years. Financial statements may be obtained from PLAN JPA 1750 Creekside Oaks Drive,
Suite 200, Sacramento, CA 95833.
The City has also purchased excess coverage insurance for worker’s compensation claims from
Public Risk, Innovation, Solutions and Management (PRISM) (formerly CSAC Excess Insurance
Authority (CSAC-EIA)). PRISM provides coverage up to statutory limits in excess of the City’s
$500,000 self-insured retention. For the past five fiscal years, general liability and worker
compensation settlements did not exceed insurance coverage.
98 372
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 12 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance
Internal Service Fund. Claims and judgments, including a provision for claims incurred but not
reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is
reasonably determinable. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured claims is limited to workers’ compensation and general liability
claims, as discussed above, and was estimated by management based on prior year’s claims
experience as follows:
June 30, 2023 Fiscal Year
Workers' General 2021-2022
Compensation Liability Total Total
Balance, beginning of year $16,243,000 $240,258 $16,483,258 $15,749,797
Current year claims and changes in
estimates of prior years claims 3,329,266 395,130 3,724,396 2,891,287
Claims Paid (2,663,266) (260,326) (2,923,592) (2,157,826)
Balance, end of year $16,909,000 $375,062 $17,284,062 $16,483,258
Current portion $3,006,000 $375,062 $3,381,062 $3,047,258
NOTE 13 – COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the
City Attorney there is no pending litigation which is likely to have a material adverse effect on
the financial position of the City.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by
the City’s independent auditors in accordance with the provisions of the Federal Single Audit Act
as amended and applicable State requirements. No cost disallowances were proposed as a result
of these audits; however, these programs are still subject to further examination by the grantors
and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
99 373
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
C. Miller Parking Garage
The Miller Parking Garage (“Parking Garage)”, constructed in 2011, is located at 329 Miller
Avenue in the City. The Parking Garage consists of a five-level open-air concrete structure
building of approximately 100,000 square feet with 244 parking spaces. Approximately 14,350
square feet of commercial and office space (the “Commercial Space”) is located on the ground
floor of the Parking Garage.
In February 2020, the City sold the Commercial Space for $1,247,950. In connection with the
sale of the Commercial Space, a condominium map was recorded with the County to create
separate assessor parcel numbers for the Commercial Space and the balance of the property
included within the Parking Garage. No rights to the parking spaces were granted to the owners
of the Commercial Space in connection with its sale. However, the owners of the Commercial
Space may use such spaces upon payment to the City of the applicable parking fees.
D. Construction Contract Dispute
Following a competitive bid process, the City awarded a contract for construction of certain
improvements related to the Grand Boulevard Initiative. The project finished well past the
contract completion date and the City withheld funds for late completion and to correct
incomplete and defective work. The City and the contractor engaged a third-party mediator, but
were unable to resolve the dispute at mediation in August 2022. The contractor filed a complaint
in San Mateo County Superior Court on September 14, 2022, seeking $6,500,000 in
compensatory damages, interest, and costs of suit. No trial date has been set as of November
2023. The City disputes the allegations and intends to vigorously pursue affirmative claims
against the contractor. The City may be negatively impacted should the court rule in favor of the
contractor, however any such impact cannot be determined at this time.
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the former
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
On July 1, 2018, the duties of the South San Francisco Oversight Board transferred to a new San
Mateo Countywide Oversight Board, which will now be responsible for overseeing the winddown
affairs of all Successor Agencies in San Mateo County, including the Successor Agency to the
South San Francisco Redevelopment Agency.
Information presented in the following footnotes represents assets and liabilities of the Successor
Agency.
A. Cash and Investments
Cash and investments of the Successor Agency as of June 30, 2023 are discussed in Note 2 to the
financial statements. Information presented in the following footnotes represents other assets and
liabilities of the Successor Agency as of June 30, 2023.
100 374
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
B. Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment
Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs
designed to encourage construction of or improvement to low-to-moderate income housing.
Under these programs, grants or loans were provided to homeowners or developers who agreed to
expend these funds in accordance with the Agency’s terms.
C. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of
February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if
actual historical cost is not available. Contributed capital assets are valued at their acquisition
value. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain
minimum thresholds and with useful lives exceeding two years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The
purpose of depreciation is to spread the cost of capital assets equitably among all users over the
life of these assets. The amount charged to depreciation expense each year represents that year’s
pro rata share of the cost of capital assets.
Depreciation of all capital assets is charged as an expense against operations each year and the
total amount of depreciation taken over the years, called accumulated depreciation, is reported on
the balance sheet as a reduction in the book value of capital assets.
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to
capital assets:
Buildings 50 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period. The
capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
101 375
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Balance
June 30, 2022 Additions June 30, 2023
Fiduciary activities
Capital assets not being depreciated:
Land $111,219 $111,219
Total capital assets not
being depreciated 111,219 111,219
Capital assets being depreciated:
Buildings and Improvements 329,671 329,671
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 593,367
Less accumulated depreciation for:
Buildings and Improvements (91,547) ($6,593) (98,140)
Equipment and Vehicle (242,190)(242,190)
Furniture and Fixtures (21,506)(21,506)
Total accumulated depreciation (355,243) (6,593) (361,836)
Net capital assets being depreciated 238,124 (6,593) 231,531
Fiduciary activity capital assets, net $349,343 ($6,593) $342,750
D. Defeased Bonds
As of June 30, 2023, the outstanding balance of defeased debt was $3,335,000 for the 1997
Downtown /Central Redevelopment Tax Allocation Bonds.
E. Commitments And Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-
annually that contains all proposed expenditures for the subsequent six-month period. The ROPS
is subject to the review and approval of the Oversight Board as well as the State Department of
Finance. Although the State Department of Finance may not question items included on the
ROPS in one period, they may question the same items in a future period and disallow associated
activities. The amount, if any, of current obligations that may be denied by the State Department
of Finance cannot be determined at this time. The City expects such amounts, if any, to be
immaterial.
102 376
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject
to further examination by the State of California. The State Controller’s Office conducted a
review of the propriety of asset transfers between the former Redevelopment Agency or the
Successor Agency and any public agency that occurred on or after January 1, 2011. The results of
that review were issued in July 2015 and although the review did identify ineligible transfers of
assets from the former Redevelopment Agency to the City, the report reflected the current year
and prior year transfers and made no further demands for the return of assets to the Successor
Agency.
103 377
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378
REQUIRED SUPPLEMENTARY INFORMATION
379
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Total Pension Liability
Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487 $4,274,015 $4,896,807
Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781 17,951,111 18,379,820
Changes of benefit terms
Changes of assumptions (3,374,655) 12,421,358 (1,361,078) 7,856,877
Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342 2,853,948 1,771,483 1,018,943 (893,635)
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759) (14,547,349)
Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794 9,411,310 15,692,520
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232
Total pension liability - ending (a)196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232 279,928,752
Plan fiduciary net position
Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463 $8,623,876 $9,491,964
Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698 2,006,497 2,293,651
Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207 38,008,815 (15,367,557)
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759) (14,547,349)
Plan to plan resource movement (50,555) 229 (365) (20) (32)
Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) (230,510) (167,557) (126,067)
Other miscellaneous income (443,767) 365
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 4,223,869 34,638,872 (18,255,358)
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505
Plan fiduciary net position - ending (b)143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505 184,118,147
Net pension liability - ending (a)-(b)$53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289 $61,862,727 $95,810,605
Plan fiduciary net position as a percentage of the
total pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% 65.82% 76.59% 65.77%
Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286 $28,788,170
Net pension liability as percentage of covered
payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 223.48% 332.81%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes:The figures above do not include any liability impact that may have resulted fromplan
changes which occurred afterthe June 30valuation date.This applies forvoluntary benefit changes as well
as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions : In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and
2021, there were no changes. In 2022,the accounting discount rate reduced from7.15% to 6.90%. In 2015, amounts reported
reflect an adjustment ofthe discount rate form7.5% (net ofadministrative expense)to 7.65% (without a reduction forpension
plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
106 380
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 $8,616,536 $9,491,640 $10,675,385
Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 8,616,536 9,491,640 10,675,385
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0 $0 $0
Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286 $28,788,170 $31,400,311
Contributions as a percentage of covered
payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13% 32.97% 34.00%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, 2.625% for 2020, 2.50% for 2021 and 2022 and 2.30% for 2023.
Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for
2021 and 2022 and 6.80% for 2023, net of administrative expenses,
including inflation
The probabilities of Retirement are based on the CalPERS
Experience Study.
The probabilities of mortality are based on the CalPERS Experience
Study. Pre-retirement and Post-retirement mortality rates include 20
years of projected mortality improvement using Scale AA
published by the Society of Actuaries for 2015 to 2018. For 2019,
2020, 2021, and 2022, pre-retirement and post-retirement mortality
rates include 15 years of projected mortality improvement using
90% of Scale MP-2016 published by the Society of Actuaries. For
2023, pre-retirement and post-retirement mortality rates include
generational mortality improvement using 80% of Scale MP-2020
published by the Society of Actuaries
107 381
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Total Pension Liability
Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000 $7,072,216 $7,567,350
Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010 25,441,168 26,419,737
Changes of benefit terms
Changes of assumptions (4,789,129) 18,010,606 (1,293,579) 12,584,955
Difference between expected and actual experience (4,226,388) (915,267) 4,520,149 1,318,613 2,853,684 742,624 1,772,836 (684,769)
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787) (17,860,080)
Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575 16,972,433 28,027,193
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913
Total pension liability - ending (a)266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913 404,168,106
Plan fiduciary net position
Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434 $12,413,770 $13,387,919
Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991 2,893,339 2,886,541
Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885 54,912,645 (22,271,961)
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787) (17,860,080)
Plan to plan resource movement (229) (512) 20 32
Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) (326,879) (240,703) (182,910)
Other miscellaneous income (617,378) 512
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 9,089,404 52,665,264 (24,040,491)
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138
Plan fiduciary net position - ending (b)195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138 269,583,647
Net pension liability - ending (a)-(b)$71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606 $82,516,775 $134,584,459
Plan fiduciary net position as a percentage of the total
pension liability 73.37% 72.65% 68.90% 66.44% 67.53% 67.47% 67.09% 78.06% 66.70%
Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494 $24,325,363
Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 487.17% 338.48% 553.27%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes.The figures above do not include any liability impact that may have resulted fromplan changes which occurred
afterthe June 30valuation date.This applies forvoluntary benefit changes as well as any offers of Two Years AdditionalService
Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from7.65% to 7.15%.In 2016, 2018, 2019, 2020, and 2021,
there were no changes. In 2022, the accounting discount rate reduced from7.15% to 6.90%. In 2015, amounts reported reflect an
adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan
administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
108 382
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023
Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 $12,413,770 $13,387,919 $15,352,613
Contributions in relation to the actuarially
determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 12,413,770 13,387,919 15,352,613
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0 $0 $0
Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494 $24,325,363 $26,580,095
Contributions as a percentage of covered
payroll 43.12% 44.97% 41.26% 42.51% 44.24% 46.99% 50.92% 55.04% 57.76%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, 2.625% for 2020, 2.50% for 2021 and 2022 and 2.30% for 2023.
Salary increases Varies by entry
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for 2021
and 2022 and 6.80% for 2023, net of administrative expenses, including
The probabilities of mortality are based on the CalPERS Experience
Study. Pre-retirement and Post-retirement mortality rates include 20
years of projected mortality improvement using Scale AA published
by the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021, and
2022, pre-retirement and post-retirement mortality rates include 15
years of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries. For 2023, pre-retirement and
post-retirement mortality rates include generational mortality
improvement using 80% of Scale MP-2020 published by the Society of
Actuaries
The probabilities of Retirement are based on the CalPERS Experience
109 383
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Measurement Date 6/30/17 6/30/18 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516 $1,374
Interest 5,087 5,325 5,568 5,952 6,058 5,704
Changes in benefit terms
Differences between expected and actual experience 91 2,895 (3,332)
Changes of assumptions (672)(1,859)1,446
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)(4,067)
Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679 3,011
Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241 91,920
Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241 $91,920 $94,931
Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810 $4,869
Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141 (4,575)
Administrative expense (9)(37)(5)(12)(9)(9)
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)(4,067)
Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933 (3,782)
Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868 33,801
Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868 $33,801 $30,019
Net OPEB liability - ending (a)-(b)$59,290 $60,584 $64,356 $64,373 $58,119 $64,912
Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67% 36.77% 31.62%
Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824 $25,079
Net OPEB liability as a percentage of covered-employee payroll 223.41%224.50% 232.65% 228.15% 216.67% 258.83%
* Fiscal year 2018 was the first year of implementation.
110 384
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Fiscal Year Ended June 30, 2018 2019 2020 2021 2022 2023
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373 $7,053
Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869 5,551
Contribution deficiency (excess) $2,151 $2,659 $2,141 $2,443 $2,504 $1,502
Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079 $24,911
Contributions as a percentage of
covered-employee payroll 15.30% 15.11% 17.20% 17.93% 19.41% 22.28%
* Fiscal year 2018 was the first year of implementation.
Valuation Date • June 30, 2021
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll
Amortization Method • Level dollar
Amortization Period • Average of 19 years remaining for 2022/23
• 6.25% at June 30, 2022
• 6.25% at June 30, 2021
• Expected City contributions projected to keep sufficient plan assets to pay all benefits
from trust.
Inflation • 2.50% per annum
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076 and later
years
• Medicare (Non-Kaiser) - 5.85% for 2022, decreasing to an ultimate rate of 3.75% in 2076
and later years
• Medicare (Kaiser) - 4.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076 and
later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study
Mortality Improvement • Mortality projected fully generational with Scale MP-2021
Healthcare participation for future retirees • 100% if covered, 95% if waived
Retiree Healthcare OPEB Plan - Agent Multiple Employer
NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION
Methods and Assumptions for Actuarially Determined Contribution
Discount Rate and Long-Term Expected
Rate of Return on Assets
111 385
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386
SUPPLEMENTARY INFORMATION
387
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388
GENERAL FUND
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund. The General Fund is
comprised of the following:
GENERAL PURPOSE FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
MEASURE W FUND
This fund accounts for revenue as the result of the voter-approved one-half percent sales and use tax that
was passed on November 3, 2015. The tax went into effect April 1, 2016 and will last for 30 years until
March 31, 2046. Revenues are committed for maintenance and enhancement of local services.
115 389
General Purpose Measure W Total
ASSETS
Cash and investments $66,512,172 $14,227,646 $80,739,818
Receivables:
Accounts 11,182,712 2,533,134 13,715,846
Accrued interest 423,012 423,012
Leases 12,759,503 12,759,503
Due from other funds 480,000 480,000
Due from Conference Center 56,072 56,072
Inventory 574 574
Restricted cash and investments
Properties held for redevelopment 2,823,118 2,823,118
Total Assets $94,237,163 $16,760,780 $110,997,943
LIABILITIES
Accounts payable $5,939,493 $5,939,493
Accrued salaries and benefits 2,697,253 2,697,253
Other payable 776,211 776,211
Deposits 742,865 742,865
Total Liabilities 10,155,822 10,155,822
DEFERRED INFLOWS OF RESOURCES
Related to leases 12,282,955 12,282,955
FUND BALANCES
Nonspendable 477,122 477,122
Restricted 2,823,118 2,823,118
Committed 3,775,873 $16,760,780 20,536,653
Assigned 8,661,539 8,661,539
Unassigned 56,060,734 56,060,734
Total Fund Balances 71,798,386 16,760,780 88,559,166
Total Liabilities and Fund Balances $94,237,163 $16,760,780 $110,997,943
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2023
116 390
General Purpose Measure W Total
REVENUES
Property taxes $54,041,117 $54,041,117
Sales taxes 21,735,087 $15,618,697 37,353,784
Transient occupancy taxes 16,357,104 16,357,104
Franchise Fees 5,240,637 5,240,637
Other taxes 8,059,817 8,059,817
Intergovernmental 3,558,742 3,558,742
Interest and rentals 4,247,107 4,247,107
Licenses and permits 20,467,644 20,467,644
Charges for services 11,673,187 11,673,187
Fines and forfeitures 757,019 757,019
Other 353,378 353,378
Total Revenues 146,490,839 15,618,697 162,109,536
EXPENDITURES
Current:
City Council 241,596 241,596
City Clerk 1,027,822 1,027,822
City Treasurer 35,279 35,279
City Attorney 1,220,059 1,220,059
City Manager 3,819,858 287,295 4,107,153
Finance 3,089,869 3,089,869
Non-departmental 3,484,013 3,484,013
Human Resources 2,221,160 2,221,160
Fire 35,512,513 35,512,513
Police 36,282,833 36,282,833
Public Works 7,936,326 7,936,326
Parks and Recreation 20,362,073 20,362,073
Library 6,475,274 6,475,274
Economic and Community Development 11,770,931 11,770,931
Capital Outlay 141,250 141,250
Total Expenditures 133,620,856 287,295 133,908,151
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 12,869,983 15,331,402 28,201,385
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,852,123 1,852,123
Loss from sale of property (6,439,913)(6,439,913)
Transfers in 5,283,682 5,283,682
Transfers out (1,388,940) (10,422,461) (11,811,401)
Total Other Financing Sources (Uses)(693,048) (10,422,461) (11,115,509)
Net Change in Fund Balances before special items 12,176,935 4,908,941 17,085,876
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366)(5,173,366)
Net Change in Fund Balances 7,003,569 11,912,510
Fund balance - July 1 64,794,817 11,851,839 76,646,656
Fund balance - June 30 $71,798,386 $16,760,780 $88,559,166
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
117 391
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $43,804,769 $45,804,769 $54,041,117 $8,236,348
Sales taxes 20,991,018 22,391,018 21,735,087 (655,931)
Transient occupancy taxes 11,160,752 14,160,752 16,357,104 2,196,352
Franchise fees 4,600,000 4,600,000 5,240,637 640,637
Other taxes 4,893,252 5,693,252 8,059,817 2,366,565
Intergovernmental 2,844,618 4,337,199 3,558,742 (778,457)
Interest and rentals 5,453,469 4,556,469 4,247,107 (309,362)
Licenses and permits 15,500,000 19,425,400 20,467,644 1,042,244
Charges for services 8,799,097 8,265,097 11,673,187 3,408,090
Fines and forfeitures 710,824 710,824 757,019 46,195
Other 259,383 278,902 353,378 74,476
Amounts available for appropriation 119,017,182 130,223,682 146,490,839 16,267,157
Charges to appropriations (outflows)
City Council 258,749 260,650 241,596 19,054
City Clerk 1,143,342 1,154,449 1,027,822 126,627
City Treasurer 167,292 167,904 35,279 132,625
City Attorney 940,290 940,291 1,220,059 (279,768)
City Manager 4,527,997 5,324,596 3,909,909 1,414,687
Finance 3,892,875 4,405,085 3,617,322 787,763
Non-departmental 1,544,367 2,152,699 3,486,795 (1,334,096)
Human Resources 2,518,004 2,684,109 2,331,987 352,122
Fire 31,313,293 33,424,718 36,400,487 (2,975,769)
Police 32,957,662 34,511,302 36,283,110 (1,771,808)
Public Works 7,120,654 8,603,705 8,931,895 (328,190)
Parks and Recreation 19,608,365 22,873,151 22,225,939 647,212
Library 6,706,110 7,273,746 6,518,982 754,764
Economic and Community Development 8,907,770 15,609,631 15,909,963 (300,332)
Capital outlay 141,250 (141,250)
Total charges to appropriations 121,606,770 139,386,036 142,282,395 (2,896,359)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 897,000 1,852,123 955,123
Loss from sale of property (6,439,913)(6,439,913)
Transfers in 3,245,000 6,151,400 5,283,682 (867,718)
Transfers out (600,000)(4,533,270)(1,388,940)3,144,330
Total Other Financing Sources (Uses)2,645,000 2,515,130 (693,048)(3,208,178)
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 55,412 (6,647,224)3,515,396 10,162,620
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366)(5,173,366)
Net Change in Fund Balances $55,412 ($6,647,224)(1,657,970) $4,989,254
Fund Balance - July 1 64,794,817
Adjustment to budgetary basis:
Encumbrance adjustments 8,661,539
Fund Balance - June 30 $71,798,386
(Continued)
Budgeted Amounts
General Purpose
118 392
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $13,800,000 $13,800,000 $15,618,697 $1,818,697
Transient occupancy taxes
Franchise fees
Other taxes
Intergovernmental
Interest and rentals
Licenses and permits
Charges for services
Fines and forfeitures
Other
Amounts available for appropriation 13,800,000 13,800,000 15,618,697 1,818,697
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 398,622 411,297 287,295 124,002
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Capital outlay
Total charges to appropriations 398,622 411,297 287,295 124,002
OTHER FINANCING SOURCES (USES)
Gain from sale of property
Loss from sale of property
Transfers in
Transfers out (12,744,450) (23,619,818) (10,422,461) 13,197,357
Total Other Financing Sources (Uses)(12,744,450) (23,619,818) (10,422,461) 13,197,357
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 656,928 (10,231,115)4,908,941 15,140,056
SPECIAL ITEMS
Remittance of land sale proceeds
Net Change in Fund Balances $656,928 ($10,231,115)4,908,941 $15,140,056
Fund Balance - July 1 11,851,839
Adjustment to budgetary basis:
Encumbrance adjustments
Fund Balance - June 30 $16,760,780
(Continued)
Budgeted Amounts
Measure W
119 393
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $43,804,769 $45,804,769 $54,041,117 $8,236,348
Sales taxes 34,791,018 36,191,018 37,353,784 1,162,766
Transient occupancy taxes 11,160,752 14,160,752 16,357,104 2,196,352
Franchise fees 4,600,000 4,600,000 5,240,637 640,637
Other taxes 4,893,252 5,693,252 8,059,817 2,366,565
Intergovernmental 2,844,618 4,337,199 3,558,742 (778,457)
Interest and rentals 5,453,469 4,556,469 4,247,107 (309,362)
Licenses and permits 15,500,000 19,425,400 20,467,644 1,042,244
Charges for services 8,799,097 8,265,097 11,673,187 3,408,090
Fines and forfeitures 710,824 710,824 757,019 46,195
Other 259,383 278,902 353,378 74,476
Amounts available for appropriation 132,817,182 144,023,682 162,109,536 18,085,854
Charges to appropriations (outflows)
City Council 258,749 260,650 241,596 19,054
City Clerk 1,143,342 1,154,449 1,027,822 126,627
City Treasurer 167,292 167,904 35,279 132,625
City Attorney 940,290 940,291 1,220,059 (279,768)
City Manager 4,926,619 5,735,893 4,197,204 1,538,689
Finance 3,892,875 4,405,085 3,617,322 787,763
Non-departmental 1,544,367 2,152,699 3,486,795 (1,334,096)
Human Resources 2,518,004 2,684,109 2,331,987 352,122
Fire 31,313,293 33,424,718 36,400,487 (2,975,769)
Police 32,957,662 34,511,302 36,283,110 (1,771,808)
Public Works 7,120,654 8,603,705 8,931,895 (328,190)
Parks and Recreation 19,608,365 22,873,151 22,225,939 647,212
Library 6,706,110 7,273,746 6,518,982 754,764
Economic and Community Development 8,907,770 15,609,631 15,909,963 (300,332)
Capital outlay 141,250 (141,250)
Total charges to appropriations 122,005,392 139,797,333 142,569,690 (2,772,357)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 897,000 1,852,123 955,123
Loss from sale of property (6,439,913) (6,439,913)
Transfers in 3,245,000 6,151,400 5,283,682 (867,718)
Transfers out (13,344,450) (28,153,088) (11,811,401) 16,341,687
Total Other Financing Sources (Uses)(10,099,450) (21,104,688) (11,115,509) 9,989,179
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 712,340 (16,878,339) 8,424,337 25,302,676
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366) (5,173,366)
Net Change in Fund Balances $712,340 ($16,878,339) 3,250,971 $20,129,310
Fund Balance - July 1 76,646,656
Adjustment to budgetary basis:
Encumbrance adjustments 8,661,539
Fund Balance - June 30 $88,559,166
Budgeted Amounts
Total
120 394
NON-MAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for revenue sources that are restricted by law or administrative
action to expenditures for specified purposes. Special revenue funds used by the City of South San
Francisco include:
Gas Tax – Accounts for State monies received and expended for street improvements, repairs,
engineering, and administration under Streets and Highway Code Sections 2105, 2106, 2107, and
2107.5. Includes sales taxes on gasoline received from the State’s Traffic Congestion Relief
Fund.
Developer Contributions – Accounts for fees deposited for planning and engineering reviews or
for future project development.
Community Development Block Grant – Accounts for Federal monies received to be expended
for development of jobs and suitable housing for low-income residents.
Maintenance Districts – Accounts for a portion of property tax dedicated to provide for the
maintenance of landscaped areas within housing developments.
Transportation Sales Tax – Accounts for the sales tax that provides resources for street
improvements and repairs.
Solid Waste Reduction – Accounts for revenues and expenditures associated with the waste
reduction, recycling, composting and household hazardous waste programs for residents and
businesses.
Supplemental Law Enforcement Services – Accounts for State monies provided for designated
Police department services.
City Programs – Organizations and individuals provide revenues that fund certain programs and
services.
Affordable Housing Trust – The inclusionary housing requirement in the City provides that
20% of new residential housing units (for projects of 4 or more units) be affordable. These in-
lieu fees (in-lieu of production of affordable housing units by the developer) provide new
residential development’s share of affordable housing units.
PEG Equipment and Access – Accounts for the one percent of money set-aside from cable
franchise fees that are used to support public, educational and governmental (PEG) channels.
Transit Station Enhancement in-Lieu Fee – Accounts for revenues that are collected as a
negotiated community benefit.
Road Maintenance and Rehabilitation – Accounts for State monies received and expended for
road maintenance and rehabilitation pursuant to Senate Bill 1, approved in 2017.
San Mateo County (SMC) Measure W ½ Sales Tax – Accounts for the City’s portion of the
special half cent sales tax receipts restricted for congestion relief and transit improvements.
Public Arts In-Lieu Fee - Accounts for development fee revenues that are collected and are
required to be used for public art installations.
121 395
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Oyster Point CFD Special Tax B - Accounts for special assessment collections that are to be
used for maintenance and administrative fees of the community facilities district.
Low and Moderate Income Housing Assets Special Revenue Fund – This fund was
established to account for the activities related to the assets assumed by the City as Housing
Successor to the housing activities of the former Redevelopment Agency of the City. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
Capital projects funds are used to account for resources used for the acquisition and construction of
capital facilities or major capital equipment, except for capital improvements financed by proprietary
funds. Capital projects funds used at the City of South San Francisco include:
Public Safety Impact Fee – These fees are to provide new development’s share of funding for
the replacement of public safety capital equipment, vehicles and facilities.
Oyster Point Improvements Impact Fees – These fees provide new development’s share of
funding for the Oyster Point at Highway 101 interchange improvements.
Sewer Capacity Charges – Accounts for cost recovery charged to new development based on
proportional benefit, associated with providing sewer collection and treatment capacity to new
development, both through existing infrastructure provided, and through future capital projects
not funded by other sources.
Oyster Point Development Impact Fees – Accounts for expenditures associated with the
acquisition, construction, or improvement related to Oyster Point Development.
Park Land Acquisition Fee – Accounts for monies received and expended pursuant to SSFMC
Chapter 8.67 and Mitigation Fee Act for park land acquisition.
Park Construction Fee – Accounts for monies received and expended pursuant to SSFMC
Chapter 8.67 and Mitigation Fee Act for park construction.
Bicycle and Pedestrian Impact Fee – Accounts for monies received and expended pursuant to
SSFMC Chapter 8.68 for mitigation of impacts of new development on bicycle and pedestrian
improvements in the City.
Commercial Linkage Impact Fee – Accounts for affordable housing funding created by new
commercial development.
Library Impact Fee – Accounts for citywide fees to provide new development’s share of the
expansion, rehabilitation and replacement of library facilities and collections to accommodate the
increased demand for library services caused by future development.
East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new
development’s share of new and rehabilitated sewer collection and treatment facilities to serve the
East of Highway 101 area.
Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share
of new and expanded roadway and intersection improvements to serve the East of Highway 101
area and other areas within the City.
122 396
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Child Care Impact Fees Capital Projects Fund – These citywide fees provide new
development’s share of new and expanded childcare facilities to serve the City.
Debt service funds are used to account for resources used for the payment of debt service on long-term
debt. Debt service funds used at the City of South San Francisco include:
Debt Service – Accounts for expenditures associated with the acquisition, construction, and
installation of certain capital improvements constituting the new City police station located within
the City’s new Civic Center Campus, and related improvements, facilities and equipment, and
pay the costs incurred in connection with the issuance of the Series 2020A Bonds, as well as
capital improvements constituting the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2021A Bonds.
123 397
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $349,087 $11,189,187 $4,990,259 $5,486,805
Receivables:
Accounts 147,252 1,315,178 $1,948 68,360 166,956
Accrued interest 2,075 58,921 25,212
Loans 667,537
Leases
Restricted cash and investments 1,461
Total Assets $498,414 $12,563,286 $670,946 $5,058,619 $5,678,973
LIABILITIES
Liabilities:
Accounts payable $501,203 $603 $34,650
Other payable 526,238
Deposits 3,232,930
Due to other funds 100,000
Total Liabilities 3,734,133 626,841 34,650
DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:
Restricted $498,414 8,829,153 44,105 5,023,969 $5,678,973
Total Fund Balances 498,414 8,829,153 44,105 5,023,969 5,678,973
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $498,414 $12,563,286 $670,946 $5,058,619 $5,678,973
124 398
SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance
Waste Law Enforce- City Housing Equipment and Enhancement and
Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation
$1,017,425 $848 $20,005,467 $664,127 $741,784 $2,773,769 $2,948,449
88 52,690 132,750
251 76,348 4,057 9,499 14,301 12,925
14,540
$1,017,425 $1,099 $20,081,815 $682,812 $803,973 $2,788,070 $3,094,124
$146,464 $14,230
$36,723
36,723 146,464 14,230
980,702 $1,099 19,935,351 668,582 $803,973 $2,788,070 $3,094,124
980,702 1,099 19,935,351 668,582 803,973 2,788,070 3,094,124
$1,017,425 $1,099 $20,081,815 $682,812 $803,973 $2,788,070 $3,094,124
(Continued)
125 399
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
CAPITAL
PROJECTS
SPECIAL REVENUE FUNDS FUND
Low and
SMC Measure W Oyster Point Moderate Public
1/2 Cent Public Arts CFD Income Safety
Sales Tax In-Lieu Fee Special Tax B Housing Assets Impact Fee
ASSETS
Cash and investments $2,080,865 $142,400 $166,754 $2,467,559 $2,069,797
Receivables:
Accounts 5,596
Accrued interest 9,032 486 13,034 14,005
Loans 510,921
1,181,466
Restricted cash and investments
Total Assets $2,089,897 $142,886 $166,754 $4,178,576 $2,083,802
LIABILITIES
Liabilities:
Accounts payable $81,885
Other payable 825
Deposits
Due to other funds
Total Liabilities 82,710
DEFERRED INFLOWS OF RESOURCES
Related to leases 1,153,603
Fund Balances:
Restricted $2,089,897 $142,886 $166,754 2,942,263 $2,083,802
Total Fund Balances 2,089,897 142,886 166,754 2,942,263 2,083,802
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $2,089,897 $142,886 $166,754 $4,178,576 $2,083,802
126 400
CAPITAL PROJECTS FUNDS
Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial
Improvement Capacity Development Acquisition Construction Pedestrian Linkage
Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee
$36,304 $11,576,637 $68,567 $3,278,740 $9,997,204 $225,903 $15,005,231
44,649
467 58,570 17,123 51,044 1,051 54,899
$36,771 $11,635,207 $113,216 $3,295,863 $10,048,248 $226,954 $15,060,130
$50,082 $12,244
19,500
50,082 31,744
$36,771 $11,635,207 63,134 $3,295,863 $10,048,248 $226,954 15,028,386
36,771 11,635,207 63,134 3,295,863 10,048,248 226,954 15,028,386
$36,771 $11,635,207 $113,216 $3,295,863 $10,048,248 $226,954 $15,060,130
(Continued)
127 401
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
East of 101
Library Sewer Traffic Child Care Debt
Impact Fee Impact Fees Impact Fees Impact Fees Service
ASSETS
Cash and investments $4,292 $5,249,246 $21,282,308 $14,031,711
Receivables:
Accounts
Accrued interest 17 26,318 131,163 75,833
Loans
Restricted cash and investments
Total Assets $4,309 $5,275,564 $21,413,471 $14,107,544
LIABILITIES
Liabilities:
Accounts payable
Other payable
Deposits
Due to other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:
Restricted $4,309 $5,275,564 $21,413,471 $14,107,544
Total Fund Balances 4,309 5,275,564 21,413,471 14,107,544
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $4,309 $5,275,564 $21,413,471 $14,107,544
128 402
Total
Nonmajor
Governmental
Funds
$137,850,725
1,935,467
656,631
1,192,998
1,181,466
1,461
$142,818,748
$841,361
583,286
3,232,930
100,000
4,757,577
1,153,603
136,907,568
136,907,568
$142,818,748
129 403
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
REVENUES
Property taxes $2,400,240
Sales taxes
Other taxes $2,256,563
Intergovernmental $1,934,261 $61,500 $214,476
Interest and rentals 4,549 119,796 13,780 53,726
Charges for services 2,014,923 60,669
Other 21,255 21,821
Total Revenues 1,938,810 2,217,474 310,746 2,400,240 2,310,289
EXPENDITURES
Current:
Fire
Police
Public works
Parks and recreation 2,235,977
Economic and community development 388,662 280,303
Non-departmental
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 388,662 280,303 2,235,977
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,938,810 1,828,812 30,443 164,263 2,310,289
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,728,303) (567,006) (150,000)(344,994)
Total Other Financing Sources (Uses)(1,728,303) (567,006) (150,000)(344,994)
Net Change in Fund Balances 210,507 1,261,806 (119,557) 164,263 1,965,295
Fund balance - July 1 287,907 7,567,347 163,662 4,859,706 3,713,678
Fund balance - June 30 $498,414 $8,829,153 $44,105 $5,023,969 $5,678,973
130 404
SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance
Waste Law Enforce- City Housing Equipment and Enhancement and
Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation
$167,130 $217,980
$95,643 $1,463,532
611 $171,462 8,722 $19,737 $29,691 27,462
201,743 55,301
10,040,863 5,384 166,623 262,287
297,386 167,741 10,267,626 232,086 186,360 291,978 1,490,994
67,741
98,694
17,209
564,978 181,247
98,694 67,741 564,978 181,247 17,209
198,692 100,000 9,702,648 50,839 169,151 291,978 1,490,994
(24,778) (100,000) (675,869) (1,100,000) (419,885)
(24,778) (100,000) (675,869) (1,100,000) (419,885)
173,914 9,026,779 50,839 (930,849) 291,978 1,071,109
806,788 1,099 10,908,572 617,743 1,734,822 2,496,092 2,023,015
$980,702 $1,099 $19,935,351 $668,582 $803,973 $2,788,070 $3,094,124
(Continued)
131 405
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
CAPITAL
PROJECTS
SPECIAL REVENUE FUNDS FUND
Low and
SMC Measure W Oyster Point Moderate Public
1/2 Cent Public Arts CFD Income Safety
Sales Tax In-Lieu Fee Special Tax B Housing Assets Impact Fee
REVENUES
Property taxes
Sales taxes $912,453
Other taxes $196,775
Intergovernmental
Interest and rentals 19,243 $777 $248,936 $29,006
Charges for services 142,109 419,113
Other
Total Revenues 931,696 142,886 196,775 248,936 448,119
EXPENDITURES
Current:
Fire 129,027
Police
Public works
Parks and recreation
Economic and community development 335,765
Non-departmental
Other 30,021
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 30,021 335,765 129,027
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 931,696 142,886 166,754 (86,829) 319,092
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (206,476) (749,827)
Total Other Financing Sources (Uses) (206,476) (749,827)
Net Change in Fund Balances 725,220 142,886 166,754 (86,829) (430,735)
Fund balance - July 1 1,364,677 3,029,092 2,514,537
Fund balance - June 30 $2,089,897 $142,886 $166,754 $2,942,263 $2,083,802
132 406
CAPITAL PROJECTS FUNDS
Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial
Improvement Capacity Development Acquisition Construction Pedestrian Linkage
Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee
$5,920,411
$1,022 $121,864 $35,416 $106,858 $2,206 $121,167
105,913 1,107,479 667,352 78,353 1,182,963 38,845 7,377,991
106,935 1,229,343 6,587,763 113,769 1,289,821 41,051 7,499,158
2,800 6,517,645
1,384,870
100,000
100,000 2,800 6,517,645 1,384,870
6,935 1,226,543 70,118 113,769 1,289,821 41,051 6,114,288
(47,978) (156,485)
(47,978) (156,485)
6,935 1,226,543 70,118 65,791 1,133,336 41,051 6,114,288
29,836 10,408,664 (6,984) 3,230,072 8,914,912 185,903 8,914,098
$36,771 $11,635,207 $63,134 $3,295,863 $10,048,248 $226,954 $15,028,386
(Continued)
133 407
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
East of 101
Library Sewer Traffic Child Care Debt
Impact Fee Impact Fees Impact Fees Impact Fees Service
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental
Interest and rentals $13 $54,612 $268,931 $157,091
Charges for services 3,622 350,946 1,020,442 542,089
Other
Total Revenues 3,635 405,558 1,289,373 699,180
EXPENDITURES
Current:
Fire
Police
Public works 2,800
Parks and recreation
Economic and community development
Non-departmental 2,800 2,800
Other
Debt service:
Principal repayments $3,185,000
Interest and fiscal charges 8,280,065
Total Expenditures 2,800 2,800 2,800 11,465,065
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,635 402,758 1,286,573 696,380 (11,465,065)
OTHER FINANCING SOURCES (USES)
Transfers in 11,465,065
Transfers out (4,634,659) (490,000)
Total Other Financing Sources (Uses)(4,634,659) (490,000) 11,465,065
Net Change in Fund Balances 3,635 402,758 (3,348,086) 206,380
Fund balance - July 1 674 4,872,806 24,761,557 13,901,164
Fund balance - June 30 $4,309 $5,275,564 $21,413,471 $14,107,544
134 408
Total
Nonmajor
Governmental
Funds
$2,400,240
912,453
2,838,448
9,689,823
1,616,678
15,369,853
10,518,233
43,345,728
129,027
67,741
6,621,939
2,235,977
1,004,730
22,809
2,161,116
3,285,000
8,280,065
23,808,404
19,537,324
11,465,065
(11,396,260)
68,805
19,606,129
117,301,439
$136,907,568
135 409
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $2,099,642 $1,934,261 ($165,381) $562,000 $214,476 ($347,524)
Interest and rentals 15,000 4,549 (10,451) 30,000 13,780 (16,220)
Charges for services 172,878 60,669 (112,209)
Other 21,821 21,821
Total Revenues 2,114,642 1,938,810 (175,832) 764,878 310,746 (454,132)
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development 557,018 551,692 5,326
Non-departmental
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 557,018 551,692 5,326
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,114,642 1,938,810 (175,832) 207,860 (240,946) (448,806)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,565,713) (1,728,303) 837,410 (150,000) (150,000)
Total Other Financing Sources (Uses) (2,565,713) (1,728,303) 837,410 (150,000) (150,000)
NET CHANGE IN FUND BALANCES ($451,071) 210,507 $661,578 $207,860 (390,946) ($598,806)
Adjustment to budgetary basis:
Encumbrance adjustments 271,389
Fund balance - July 1 287,907 163,662
Fund balance - June 30 $498,414 $44,105
BLOCK GRANT
COMMUNITY DEVELOPMENT
136 410
MAINTENANCE DISTRICTS SOLID WASTE REDUCTION
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,941,928 $2,400,240 $458,312
$1,920,452 $2,256,563 $336,111
$95,643 $95,643
25,000 53,726 28,726
180,000 201,743 $21,743
1,941,928 2,400,240 458,312 1,945,452 2,310,289 364,837 275,643 297,386 21,743
606,498 98,694 507,804
2,344,539 2,235,977 108,562
298,980 (298,980)
2,344,539 2,235,977 108,562 606,498 397,674 208,824
(402,611) 164,263 566,874 1,945,452 2,310,289 364,837 (330,855) (100,288) 230,567
(4,389,003) (344,994) 4,044,009 (78,086) (24,778) 53,308
(4,389,003) (344,994) 4,044,009 (78,086) (24,778) 53,308
($402,611) 164,263 $566,874 ($2,443,551) 1,965,295 $4,408,846 ($408,941) (125,066) $283,875
298,980
4,859,706 3,713,678 806,788
$5,023,969 $5,678,973 $980,702
(Continued)
TRANSPORTATION SALES TAX
137 411
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes $100,000 $167,130 $67,130
Intergovernmental
Interest and rentals 611 611 $171,462 $171,462
Charges for services 55,301 55,301
Other $4,883,255 10,040,863 5,157,608
Total Revenues 100,000 167,741 67,741 4,883,255 10,267,626 5,384,371
EXPENDITURES
Current:
Police 67,741 (67,741)
Public works
Parks and recreation
Economic and community development
Non-departmental
Other 14,255 564,978 (550,723)
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 67,741 (67,741) 14,255 564,978 (550,723)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,000 100,000 4,869,000 9,702,648 4,833,648
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (100,000) (100,000)(15,569,505) (675,869) 14,893,636
Total Other Financing Sources (Uses) (100,000) (100,000)(15,569,505) (675,869) 14,893,636
NET CHANGE IN FUND BALANCES ($10,700,505) 9,026,779 $19,727,284
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,099 10,908,572
Fund balance - June 30 $1,099 $19,935,351
ENFORCEMENT SERVICES
SUPPLEMENTAL LAW
CITY PROGRAMS
138 412
PEG
AFFORDABLE HOUSING TRUST EQUIPMENT AND ACCESS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$217,980 $217,980 $1,300,000 $1,463,532 $163,532
8,722 8,722 $5,000 $19,737 $14,737 27,462 27,462
5,384 5,384 125,000 166,623 41,623
232,086 232,086 130,000 186,360 56,360 1,300,000 1,490,994 190,994
17,209 (17,209)
$384,614 262,763 121,851
384,614 262,763 121,851 17,209 (17,209)
(384,614) (30,677) 353,937 130,000 169,151 39,151 1,300,000 1,490,994 190,994
(1,125,000) (1,100,000) 25,000 (3,992,025) (419,885) 3,572,140
(1,125,000) (1,100,000) 25,000 (3,992,025) (419,885) 3,572,140
($384,614) (30,677) $353,937 ($995,000) (930,849) $64,151 ($2,692,025) 1,071,109 $3,763,134
81,516
617,743 1,734,822 2,023,015
$668,582 $803,973 $3,094,124
(Continued)
ROAD MAINTENANCE
AND REHABILITATION
139 413
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL TAX B
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes $853,534 $912,453 $58,919
Other taxes $196,775 $196,775
Intergovernmental
Interest and rentals 19,243 19,243
Charges for services
Other
Total Revenues 853,534 931,696 78,162 196,775 196,775
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development
Non-departmental
Other $71,000 30,021 40,979
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 71,000 30,021 40,979
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 853,534 931,696 78,162 (71,000) 166,754 237,754
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,598,291) (206,476) 1,391,815
Total Other Financing Sources (Uses) (1,598,291) (206,476) 1,391,815
NET CHANGE IN FUND BALANCES ($744,757) 725,220 $1,469,977 ($71,000) 166,754 $237,754
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,364,677
Fund balance - June 30 $2,089,897 $166,754
SMC MEASURE W
1/2 CENT SALES TAX
OYSTER POINT CFD
140 414
HOUSING ASSETS
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$167,000 $248,936 $81,936
15,000 (15,000)
182,000 248,936 66,936
894,001 340,834 553,167
$3,185,000 $3,185,000
5,104,450 8,280,065 ($3,175,615)
894,001 340,834 553,167 8,289,450 11,465,065 (3,175,615)
(712,001) (91,898) 620,103 (8,289,450) (11,465,065) (3,175,615)
8,289,450 11,465,065 3,175,615
8,289,450 11,465,065 3,175,615
($712,001) (91,898) $620,103
5,069
3,029,092
$2,942,263
DEBT SERVICE FUND
LOW AND MODERATE INCOME
141 415
This Page Left Intentionally Blank
416
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service. Internal service funds used at the City include:
City Service – Accounts for vehicle maintenance and information technology services provided
to City departments.
Self Insurance – Accounts for workers' compensation, general liability and property damage
claim activity and financing is represented in this fund.
Health and Retirement Benefits – Accounts for health and retirement benefits paid on the
behalf of eligible City employees.
Equipment Replacement – Accounts for resources set-aside for the future replacement of City
vehicles and equipment.
143 417
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $3,022,642 $19,153,892 $10,490,855 $6,213,829 $38,881,218
Receivables:
Accounts 357,701 98,615 456,316
Accrued interest 13,495 95,910 43,466 32,227 185,098
Deposit 216,000 93,790 309,790
Prepaid items 1,358,284 1,358,284
Total current assets 3,036,137 19,823,503 12,085,010 6,246,056 41,190,706
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 5,328,500 5,328,500
Total non-current assets 5,328,500 5,328,500
Total Assets 3,036,137 19,823,503 12,085,010 11,574,556 46,519,206
LIABILITIES
Current liabilities:
Accounts payable 118,382 144,782 70,554 333,718
Other payable 29,264 148,275 177,539
Current portion of accrued insurance loss 3,381,062 3,381,062
Current portion of compensated absences 82,877 1,211,656 1,294,533
Current portion of long-term debt
Total current liabilities 230,523 3,525,844 1,430,485 5,186,852
Noncurrent liabilities:
Accrued insurance loss 13,903,000 13,903,000
Compensated absences obligation 188,806 644,607 833,413
Total noncurrent liabilities 188,806 13,903,000 644,607 14,736,413
Total Liabilities 419,329 17,428,844 2,075,092 19,923,265
NET POSITION:
Net investment in capital assets 5,328,500 5,328,500
Unrestricted 2,616,808 2,394,659 10,009,918 6,246,056 21,267,441
Total Net Position $2,616,808 $2,394,659 $10,009,918 $11,574,556 $26,595,941
144 418
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $6,270,762 $6,574,776 $17,132,515 $1,370,243 $31,348,296
Total Operating Revenues 6,270,762 6,574,776 17,132,515 1,370,243 31,348,296
OPERATING EXPENSES
Personnel expenses 2,365,234 666,115 16,820,702 19,852,051
Professional services 872,671 260,326 1,132,997
Program supplies 2,218,013 1,250 24,855 2,244,118
Insurance 12,988 2,877,706 2,890,694
Self-insurance and claims 2,807,004 2,807,004
Repair and maintenance 636,840 428,160 1,065,000
Utilities 104,991 104,991
Depreciation 1,045,253 1,045,253
Other 31,220 586,924 618,144
Total Operating Expenses 6,241,957 6,611,151 17,408,876 1,498,268 31,760,252
Operating Income (Loss)28,805 (36,375) (276,361) (128,025) (411,956)
NONOPERATING
REVENUES (EXPENSES)
Interest income 27,434 200,866 86,902 64,976 380,178
Interest expense (2,870)(2,870)
Gain from disposal of capital assets 104,926 104,926
Other 64,501 64,501
Total Nonoperating
Revenues (Expenses)27,434 265,367 86,902 167,032 546,735
Net income (loss) before transfers 56,239 228,992 (189,459)39,007 134,779
TRANSFERS
Transfers in 450,000 598,442 1,048,442
Change in Net Position 56,239 228,992 260,541 637,449 1,183,221
Net Position - July 1 2,560,569 2,165,667 9,749,377 10,937,107 25,412,720
Net Position - June 30 $2,616,808 $2,394,659 $10,009,918 $11,574,556 $26,595,941
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
CITY OF SOUTH SAN FRANCISCO
145 419
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $6,270,762 $6,281,576 $17,033,900 $1,370,243 $30,956,481
Cash payments to suppliers for goods and services (3,876,723) (3,138,032)(521,082) (7,535,837)
Cash payments to employees for services (2,296,124) (550,904) (17,418,568)(20,265,596)
Cash payments for judgments and claims (2,006,200)(2,006,200)
Net Cash Provided by Operating Activities 97,915 586,440 (384,668) 849,161 1,148,848
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 450,000 598,442 1,048,442
Net Cash Provided by Noncapital Financing Activities 450,000 598,442 1,048,442
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease (144,637) (144,637)
Interest payments (2,870)(2,870)
Acquisition of capital assets, net (1,979,957) (1,979,957)
Proceeds from the sale of capital assets 113,687 113,687
Net Cash Used in Capital and Related Financing Activities (2,013,777) (2,013,777)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 6,736 41,242 15,624 12,658 76,260
Changes in fair values of investments 16,325 116,021 52,581 38,985 223,912
Net Cash Provided by Investing Activities 23,061 157,263 68,205 51,643 300,172
Net Increase (Decrease) in cash and cash equivalents 120,976 743,703 133,537 (514,531) 483,685
Cash and cash equivalents, beginning 2,901,666 18,410,189 10,357,318 6,728,360 38,397,533
Cash and cash equivalents, ending $3,022,642 $19,153,892 $10,490,855 $6,213,829 $38,881,218
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$28,805 ($36,375) ($276,361) ($128,025) ($411,956)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 1,045,253 1,045,253
Other non-operating revenue (expenses)64,501 64,501
Net change in assets and liabilities:
Accounts receivable (357,701) (98,615)(456,316)
Deposit
Prepaid items (153,911)(153,911)
Accounts payable 22,497 115,211 (136,250) (68,035) (66,577)
Other payable 148,275 (32) 148,243
Accrued insurance losses 800,804 800,804
Compensated absence obligations 46,613 132,194 178,807
Net Cash Provided by (Used in) Operating Activities $97,915 $586,440 ($384,668) $849,161 $1,148,848
NONCASH TRANSACTIONS
Retirement of capital assets ($8,761) ($8,761)
146 420
CUSTODIAL FUNDS
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the
City’s reporting entity.
SSF Employee Deferred Comp Trust Oversight – This fund is used to pay for the
administrative costs of monitoring the Deferred Compensation Funds on behalf of City
employees. The City does not make any contributions to the fund.
Oyster Point CFD – Accounts for Community Facilities District No. 2021-01 special assessment
collections and debt service payments.
147 421
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $95,626 $95,626
Interest receivable 619 $780 1,399
Restricted cash and investments 2,255,699 2,255,699
Total Assets 96,245 2,256,479 2,352,724
LIABILITIES
Accounts payable
Total Liabilities
NET POSITION
Restricted for others 96,245 96,245
Restricted for bondholders 2,256,479 2,256,479
Total Net Position $96,245 $2,256,479 $2,352,724
148 422
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ADDITIONS
Plan contributions $8,225 $8,225
Property taxes $1,013,213 1,013,213
Contribution from property owners
Interest and rentals 1,246 541,243 542,489
Total Additions 9,471 1,554,456 1,563,927
DEDUCTIONS
Professional services 50,777 18,754,886 18,805,663
Payments to bondholders 764,850 764,850
Total Deductions 50,777 19,519,736 19,570,513
Change in net position (41,306) (17,965,280) (18,006,586)
NET POSITION
Beginning of the year 137,551 20,221,759 20,359,310
End of the year $96,245 $2,256,479 $2,352,724
149 423
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424
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health. In contrast to the financial
section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well-being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue
source, the property tax:
1.Assessed Value of Taxable Property
2.Direct and Overlapping Property Tax Rates
3.Principal Property Tax Payers
4.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels
of outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Continuing Disclosure Requirements:
a.Revenue Bond Coverage
b.Sewer Debt Service Coverage
c.Redevelopment Pledged Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
151 425
STATISTICAL SECTION - (Continued)
Miscellaneous Information
1.Collection and Use of 1% Special Transient Occupancy Tax
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
152 426
2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $230,440,390 $230,517,037 $231,142,079 $254,344,554 $254,570,044
Restricted 42,367,623 49,311,828 52,406,602 54,478,093 96,316,988
Unrestricted (12,317,511) (134,389,522) (120,119,617) (86,808,434) (129,833,581)
Total governmental activities net position $260,490,502 $145,439,343 $163,429,064 $222,014,213 $221,053,451
Business-type activities
Net investment in capital assets $78,045,318 $78,598,277 $83,930,073 $86,167,704 $90,097,907
Restricted
Unrestricted 15,367,085 4,196,654 6,243,225 7,199,925 3,227,395
Total business-type activities net position $93,412,403 $82,794,931 $90,173,298 $93,367,629 $93,325,302
Primary government
Net investment in capital assets $308,485,708 $309,115,314 $315,072,152 $340,512,258 $344,667,951
Restricted 42,367,623 49,311,828 52,406,602 54,478,093 96,316,988
Unrestricted 3,049,574 (130,192,868) (113,876,392) (79,608,509) (126,606,186)
Total primary government net position $353,902,905 $228,234,274 $253,602,362 $315,381,842 $314,378,753
2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets $271,349,364 $296,243,640 $316,169,957 $384,765,508 $390,845,692
Restricted 117,752,590 138,701,991 160,119,056 139,059,768 130,124,884
Unrestricted (114,028,420) (130,288,161) (144,181,245) (126,989,026) (86,635,416)
Total governmental activities net position $275,073,534 $304,657,470 $332,107,768 $396,836,250 $434,335,160
Business-type activities
Net investment in capital assets $100,463,280 $111,968,328 $123,628,942 $133,598,554 $132,756,230
Restricted
Unrestricted 44,966 2,040,842 7,208,752 4,271,663 10,098,654
Total business-type activities net position $100,508,246 $114,009,170 $130,837,694 $137,870,217 $142,854,884
Primary government
Net investment in capital assets $371,812,644 $408,211,968 $439,798,899 $518,364,062 $523,601,922
Restricted 117,752,590 138,701,991 160,119,056 139,059,768 130,124,884
Unrestricted (113,983,454) (128,247,319) (136,972,493) (122,717,363) (76,536,762)
Total primary government net position $375,581,780 $418,666,640 $462,945,462 $534,706,467 $577,190,044
Source: City of South San Francisco, Department of Finance
(a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB
Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation.
CITY OF SOUTH SAN FRANCISCO
(accrual basis of accounting)
Last Ten Fiscal Years (a)
Net Position by Component
($200)
($100)
$0
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
153 427
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Expenses
Governmental Activities:
General Government $7,155,035 $8,421,857 $9,044,518 $10,253,403
Fire Department 21,200,903 22,005,883 22,488,964 25,750,126
Police Department 24,376,379 23,910,436 23,158,168 25,838,242
Public Works 14,980,417 14,493,039 11,916,572 12,396,998
Park, Recreation and Maintenance Services 12,658,309 12,383,880 12,901,657 15,217,677
Library 4,310,550 4,300,885 4,442,577 5,184,282
Economic and Community Development 5,525,541 5,928,316 7,603,275 8,927,162
Interest on Long -Term Debt
Total Governmental Activities Expenses 90,207,134 91,444,296 91,555,731 103,567,890
Business-Type Activities:
Sewer Rental 19,301,103 23,969,579 18,273,580 22,661,768
Parking District 943,859 503,014 894,769 940,181
Storm Water 1,078,868 1,234,616 1,289,465 1,333,409
Total Business-Type Activities Expenses 21,323,830 25,707,209 20,457,814 24,935,358
Total Primary Government Expenses $111,530,964 $117,151,505 $112,013,545 $128,503,248
Program Revenues
Governmental Activities:
Charges for Services:
General Government $5,785,598 $3,946,302 $4,194,563 $2,225,049
Fire Department 3,304,952 3,520,275 3,450,524 4,242,940
Police Department 2,805,640 2,370,736 2,076,837 2,146,909
Public Works 4,734,813 5,071,729 10,361,525 10,869,608
Park, Recreation and Maintenance Services 3,571,947 3,708,272 3,744,137 3,756,369
Library 138,827 120,850 164,271 96,987
Economic and Community Development 5,800,849 5,337,177 6,131,463 3,911,597
Operating Grants and Contributions 5,601,916 5,753,845 5,581,492 4,533,539
Capital Grants and Contributions 1,538,225 632,735 1,147,337 577,995
Total Government Activities Program Revenues 33,282,767 30,461,921 36,852,149 32,360,993
Business-Type Activities:
Charges for Services:
Sewer Rental 19,155,467 19,798,033 19,569,341 19,897,769
Parking District 785,586 819,051 843,199 916,687
Storm Water 409,458 407,640 412,105 418,840
Operating Grants and Contributions 7,619,601 6,242,687 5,802,788 5,763,645
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 27,970,112 27,267,411 26,627,433 26,996,941
Total Primary Government Program Revenues $61,252,879 $57,729,332 $63,479,582 $59,357,934
Net (Expense)/Revenue
Governmental Activities ($56,924,367) ($60,982,375) ($54,703,582) ($71,206,897)
Business-Type Activities 6,646,282 1,560,202 6,169,619 2,061,583
Total Primary Government Net Expense ($50,278,085) ($59,422,173) ($48,533,963) ($69,145,314)
154 428
2018 2019 2020 2021 2022 2023
$12,506,188 $12,139,671 $15,378,452 $19,611,586 $20,793,108 $24,977,978
30,352,387 31,986,738 34,442,874 34,492,838 28,530,628 36,852,200
30,732,288 32,994,122 36,095,698 33,376,962 35,635,007 37,885,983
18,379,278 20,425,958 17,737,243 7,567,745 7,544,142 21,880,934
17,162,377 17,962,298 19,620,848 17,159,696 19,482,582 23,539,372
5,910,406 6,241,093 6,728,102 6,274,811 6,060,920 6,639,706
10,094,626 10,557,116 9,837,938 11,728,168 12,034,671 12,923,609
512,376 2,200,344 4,686,930 6,891,224
125,137,550 132,306,996 140,353,531 132,412,150 134,767,988 171,591,006
24,397,607 25,719,049 26,213,885 26,644,459 26,246,647 30,654,615
1,202,319 896,994 1,116,840 1,338,092 1,170,305 1,272,157
1,026,948 1,188,182 1,206,694 922,057 1,309,360 1,460,610
26,626,874 27,804,225 28,537,419 28,904,608 28,726,312 33,387,382
$151,764,424 $160,111,221 $168,890,950 $161,316,758 $163,494,300 $204,978,388
$1,966,755 $7,930,983 $5,217,199 $6,968,307 $5,413,298 $9,249,087
6,327,921 6,052,804 6,073,247 5,952,872 7,857,602 9,231,756
2,230,824 2,351,491 2,092,791 1,642,726 2,878,353 2,299,209
24,727,897 27,811,701 23,355,636 24,859,635 17,734,041 9,071,365
4,489,665 4,293,474 2,872,786 1,165,630 3,058,826 3,927,532
102,124 105,466 97,603 19,037 1,054,339 60,300
13,052,441 14,214,991 9,067,781 4,275,808 28,676,546 19,532,657
5,827,149 12,091,079 8,757,554 8,021,958 10,852,746 12,919,660
2,515,868 1,629,730 4,930,640 5,498,698 3,342,651 2,031,351
61,240,644 76,481,719 62,465,237 58,404,671 80,868,402 68,322,917
22,417,156 24,078,076 24,296,811 24,705,044 22,778,206 23,891,045
1,084,472 1,180,538 1,003,222 764,514 993,986 1,062,751
656,315 540,679 412,707 410,745 412,842 418,583
5,834,455 6,452,950 7,440,041 14,815,460 5,663,695 6,237,114
5,252,622 4,276,151
29,992,398 32,252,243 33,152,781 40,695,763 35,101,351 35,885,644
$91,233,042 $108,733,962 $95,618,018 $99,100,434 $115,969,753 $104,208,561
($63,896,906) ($55,825,277) ($77,888,294) ($74,007,479) ($53,899,586) ($103,268,089)
3,365,524 4,448,018 4,615,362 11,791,155 6,375,039 2,498,262
($60,531,382) ($51,377,259) ($73,272,932) ($62,216,324) ($47,524,547) ($100,769,827)
155 429
2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $22,890,828 $24,650,648 $26,438,620 $29,023,618
Sales Taxes 12,725,141 13,932,125 15,188,686 24,087,776
Transient Occupancy Tax 11,174,017 12,947,473 13,393,437 13,631,507
Franchise fees 3,982,092 4,090,073
Other Taxes 8,141,010 8,650,056 5,124,574 5,708,187
Motor Vehicle In-Lieu 40,074 26,995 26,708 28,933
Property taxes in lieu of vehicle license fees 5,319,154 5,551,651 5,770,060 6,133,230
Interest Earnings 1,108,177 629,036 1,354,266 622,518
Gain from sale of property
Other 2,012,444 4,577,239 2,334,407 2,365,820
Extraordinary Item
Transfers (1,041,120) (1,429,308) (919,547) (1,105,038)
Special items 45,205,422
Total Government Activities 62,369,725 69,535,915 72,693,303 129,792,046
Business-Type Activities:
Interest Earnings 153,353 126,874 289,201 27,710
Transfers 1,041,120 1,429,308 919,547 1,105,038
Total Business-Type Activities 1,194,473 1,556,182 1,208,748 1,132,748
Total Primary Government $63,564,198 $71,092,097 $73,902,051 $130,924,794
Change in Net Position
Governmental Activities $5,445,358 $8,553,540 $17,989,721 $58,585,149
Business-Type Activities 7,840,755 3,116,384 7,378,367 3,194,331
Total Primary Government $13,286,113 $11,669,924 $25,368,088 $61,779,480
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(continued)
(Accrual Basis of Accounting)
156 430
2018 2019 2020 2021 2022 2023
$29,551,445 $33,446,750 $37,415,367 $41,561,039 $40,011,221 $47,680,587
28,340,393 31,843,568 31,855,027 33,039,229 38,143,689 37,722,042
13,978,533 17,091,222 13,829,025 6,710,271 12,135,638 16,357,104
4,403,493 4,469,808 4,594,577 4,498,202 4,863,076 5,240,637
5,871,096 4,995,404 4,515,376 4,529,764 6,537,423 8,059,817
34,452 32,200 53,089 49,785 77,558 67,937
6,438,199 7,150,867 7,457,005 4,888,696 11,988,715 8,760,770
1,097,916 4,808,664 6,384,253 941,856 (6,724,092) 5,104,060
840,298 1,518,059 1,807,446
5,180,288 7,799,392 9,152,218 11,602,214 14,458,939 17,335,302
(1,997,377) (2,101,222) (8,060,646) (4,984,746) (1,419,235) (2,195,337)
(7,154,626) (531,591)276,939 (1,378,533) (2,962,923) (5,173,366)
85,743,812 109,845,360 107,472,230 101,457,777 118,628,068 140,766,999
37,072 633,704 824,916 52,623 (761,751) 291,068
1,997,377 2,101,222 8,060,646 4,984,746 1,419,235 2,195,337
2,034,449 2,734,926 8,885,562 5,037,369 657,484 2,486,405
$87,778,261 $112,580,286 $116,357,792 $106,495,146 $119,285,552 $143,253,404
$21,846,906 $54,020,083 $29,583,936 $27,450,298 $64,728,482 $37,498,910
5,399,973 7,182,944 13,500,924 16,828,524 7,032,523 4,984,667
$27,246,879 $61,203,027 $43,084,860 $44,278,822 $71,761,005 $42,483,577
157 431
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable $14,163 $1,134 $33,580 $474 $106 $372 $574 $574 $4,099 $477,122
Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033 2,823,118
Committed 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868 17,723,338 17,723,338 16,083,977 20,536,653
Assigned 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,720,788 7,482,439 8,661,539
Unassigned 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 43,296,762 38,313,108 56,060,734
Total General Fund $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 $85,114,095 $76,646,656 $88,559,166 (a)
All Other Governmental Funds
Nonspendable $39,205
Restricted $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 $140,143,149 $243,582,187 $204,257,085
Assigned 6,188,554 367,023 29,363,924 29,363,924 24,889,824 20,229,463
Unassigned (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892) (1,004,155)
Total all other governmental funds $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 $169,742,722 $267,034,119 $223,482,393
#REF!#REF!62,399,893 70,866,831 76,323,105 76,323,105 111,411,392 254,856,817 312,041,559
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
158 432
This Page Left Intentionally Blank
433
CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
Revenues
Property Taxes $23,010,136 $24,650,648 $26,438,620 $35,156,848
Other Taxes 33,931,446 38,275,478 41,811,097 49,608,385
Intergovernmental revenues 10,757,440 10,453,071 12,360,354 4,019,771
Interest and Rents 3,632,693 3,531,966 4,207,453 3,100,692
Licenses and permits 4,366,271 4,795,158 6,896,897 7,823,403
Charges for services 16,864,409 13,387,712 15,386,358 14,485,367
Fines and forfeitures 1,528,319 1,221,413 791,756 899,118
Other 2,249,728 4,660,668 2,439,579 2,906,625
Total Revenues 96,340,442 100,976,114 110,332,114 118,000,209
Expenditures
Current:
General government 5,970,429 7,167,969 8,469,924 9,399,930
Fire Department 20,163,759 21,247,989 24,175,340 25,632,366
Police Department 23,309,568 23,611,743 25,458,986 25,998,097
Public works 16,791,894 15,923,071 14,846,346 12,143,965
Recreation and Community Services 11,552,502 11,826,407 13,234,028 14,897,157
Library 3,987,928 4,247,650 4,681,188 5,157,355
Economic and Community Development 5,972,966 5,917,508 7,907,655 8,943,111
Other 480,290 395,749 274,183
Capital outlay
Debt service:
Principal repayment 453,381 352,674 656,000 23,000
Interest and fiscal charges
Total Expenditures 88,202,427 90,775,301 99,825,216 102,469,164
Excess (deficiency) of revenues over
(under) expenditures 8,138,015 10,200,813 10,506,898 15,531,045
Other Financing Sources (Uses)
Transfers in 21,870,234 17,983,227 8,143,075 14,327,130
Transfers (out)(24,149,582) (19,717,102) (13,193,699)(16,368,499)
Lease revenue bonds issued
Premium on bonds
Sale of capital assets 1,016,276
Loss on sale of property held for resale
Total other financing sources (uses)(2,279,348)(1,733,875)(5,050,624)(1,025,093)
Net Change in fund balances
before extraordinary and special items 5,858,667 8,466,938 5,456,274 14,505,952
Extraordinary item
Special item 20,582,335
Net change in fund balances $5,858,667 $8,466,938 $5,456,274 $35,088,287
Debt service as a percentage of
noncapital expenditures 0.6%0.4%0.7%0.0%
For The Fiscal Year Ended June 30,
160 434
2018 2019 2020 2021 2022 2023
$35,989,644 $40,597,617 $44,872,372 $46,449,735 $51,999,936 $56,441,357
54,597,272 60,721,378 57,214,783 51,008,432 64,411,396 70,762,243
8,433,240 13,179,593 18,317,060 17,867,273 24,822,304 19,574,277
3,524,727 7,231,303 8,864,998 3,620,391 (2,537,324)7,857,199
14,674,809 15,381,416 15,900,500 15,589,002 14,062,474 20,467,644
31,961,419 41,055,659 27,442,005 23,191,413 45,787,046 27,477,040
423,604 926,729 814,354 535,750 700,961 757,019
6,454,460 7,994,701 3,067,691 7,893,148 2,524,116 11,321,587
156,059,175 187,088,396 176,493,763 166,155,144 201,770,909 214,658,366
10,403,449 10,166,977 12,453,262 12,112,319 15,422,722 15,449,760
26,059,072 27,576,879 28,161,459 31,817,325 32,597,540 35,641,540
26,970,854 28,533,292 37,468,430 70,954,323 39,678,917 36,493,052
23,859,399 38,459,963 40,070,330 51,501,254 87,823,372 89,991,879
15,468,370 16,530,603 17,130,302 15,795,645 20,295,842 22,598,050
5,379,836 5,628,693 5,940,870 5,903,883 6,495,279 6,475,274
9,338,793 9,085,390 8,780,903 11,227,503 12,709,167 12,775,661
256,298 333,024 723,901 3,490,091 5,610,278 2,161,116
5,520,422 141,250
2,382,000 3,464,000 1,210,000 975,000 4,635,000 3,285,000
739,146 2,307,460 5,525,760 8,280,065
120,118,071 139,778,821 152,678,603 206,084,803 236,314,299 233,292,647
35,941,104 47,309,575 23,815,160 (39,929,659)(34,543,390)(18,634,281)
26,486,651 22,230,499 38,117,966 37,970,252 36,220,467 30,464,581
(30,795,941)(24,581,721)(46,647,023)(43,202,081)(38,772,007)(33,708,360)
43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
3,990,605 840,298 (2,718,691)1,507,641 1,852,123
(6,439,913)
(318,685)(1,510,924)45,618,473 96,576,045 71,062,418 (7,831,569)
35,622,419 45,798,651 69,433,633 56,646,386 36,519,028 (26,465,850)
(7,154,626)(531,591)276,939 (1,378,533)(2,962,923)(5,173,366)
$28,467,793 $45,267,060 $69,710,572 $55,267,853 $33,556,105 ($31,639,216)
2.2%3.0%1.7%2.9%7.0%7.3%
For The Fiscal Year Ended June 30,
161 435
Real Property Net Taxable value
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property Other
Total Secured
Property
Unsecured
Property Total Assessed (a)
Estimated Full
Market (a)
Total
Direct Tax
Rate (b)
2014 5,900,441,192$ 1,713,575,060$ 4,273,694,531$ 1,204,288,116$ 13,091,998,899$ 1,212,353,871$ 14,304,352,770$ 14,304,352,770$ 0.13474%
2015 6,313,393,048$ 2,402,335,027$ 4,588,967,014$ 345,957,716$ 13,650,652,805$ 1,244,971,467$ 14,895,624,272$ 14,895,624,272$ 0.13804%
2016 6,716,642,000$ 2,000,204,271$ 5,189,813,366$ 376,874,603$ 14,283,534,240$ 1,197,263,526$ 15,480,797,766$ 15,480,797,766$ 0.13634%
2017 7,087,550,257$ 2,160,377,671$ 5,414,028,340$ 412,344,220$ 15,074,300,488$ 1,381,715,511$ 16,456,015,999$ 16,456,015,999$ 0.13632%
2018 7,458,269,085$ 2,171,084,856$ 5,838,028,479$ 383,589,586$ 15,850,972,006$ 1,423,348,022$ 17,274,320,028$ 17,274,320,028$ 0.13631%
2019 7,882,766,880$ 2,511,501,574$ 6,673,522,321$ 353,621,189$ 17,421,411,964$ 1,765,066,449$ 19,186,478,413$ 19,186,478,413$ 0.13640%
2020 8,459,303,983$ 2,717,851,133$ 7,535,473,093$ 491,981,925$ 19,204,610,134$ 1,727,590,717$ 20,932,200,851$ 20,932,200,851$ 0.13638%
2021 9,020,710,463$ 2,872,601,136$ 8,744,250,213$ 507,383,957$ 21,144,945,769$ 2,056,800,753$ 23,201,746,522$ 23,201,746,522$ 0.13622%
2022 9,440,006,474$ 4,059,376,407$ 8,650,209,742$ 508,430,937$ 22,658,023,560$ 1,993,694,829$ 24,651,718,389$ 24,651,718,389$ 0.13587%
2023 10,164,770,095$ 4,381,130,308$ 10,124,533,866$ 656,275,416$ 25,326,709,685$ 2,403,730,974$ 27,730,440,659$ 27,730,440,659$ 0.13605%
Source: HdL Coren & Cone, San Mateo County Assessor 2013/14-2022/23 Tax Property Values.
(a)
(b)
CITY OF SOUTH SAN FRANCISCO
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These
values are considered to be full market values.
California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax
rate area.
ASSESSED VALUE
OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Total Secured Property Unsecured Property
162 436
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
2014 1.000 0.2046 1.2046 (1,20)
2015 1.000 0.1822 1.1822 (1,21)
2016 1.000 0.1750 1.1750 (1,22)
2017 1.000 0.1749 1.1749 (1,23)
2018 1.000 0.1642 1.1642 (1,24)
2019 1.000 0.1548 1.1548 (1,25)
2020 1.000 0.1648 1.1648 (1,26)
2021 1.000 0.1893 1.1893 (1,27)
2022 1.000 0.1542 1.1542 (1,28)
2023 1.000 0.1408 1.1408 (1,29)
Notes:
Source: HDL, Coren & Cone (San Mateo County Assesor 2013/14 -2022/23 Tax Rate Table
(25) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0597 percent, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1126 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.0801 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
(26) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0647, which includes SSFUSD & San Mateo Jr College bond. 4
has a rate of 1.1267 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a
rate of 1.1148, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. Coll
bonds.
(27) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0563, which includes SSFUSD & San Mateo Jr College bond. 4
has a rate of 1.1543 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College bonds. 1 has a
rate of 1.1112, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Jr. Coll
bonds.
(28) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0579, which includes SSFUSD & San Mateo Jr College bond. 4
has a rate of 1.1190 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr
College bonds. 1 has a rate of 1.1103, which includes San Bruno Pk Elem bond, SM Union High, SM High, SMCCCD 2021 and
San Mateo Jr. Coll bonds.
(29) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0499, which includes SSFUSD & San Mateo Jr College bond. 4
has a rate of 1.1102 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr
College bonds. 1 has a rate of 1.1026, which includes San Bruno Pk Elem bond, SM Union High bond, SM High, SMCCCD
2021 and San Mateo Jr. Coll bonds.
CITY OF SOUTH SAN FRANCISCO
DIRECT AND OVERLAPPING
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(1) Like other cities, South San Francisco includes several property tax rate areas with different rates.
(23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0910 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr
College bond and San Mateo Comm Coll bond.
(24) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0601 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1276 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0900 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr
College bond and San Mateo Comm Coll bond.
(20) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr
College bond, and San Mateo Comm College. 4 has a rate of 1.1048 percent which includes Brisbane ESD Bond, Jefferson High
bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem
bond, SM Union High, SM High, and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk
Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
(21) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr
College bond, and San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson High
bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0983 percent, which includes San Bruno Pk Elem
bond, SM Union High, SM High,SM Jr College bond and San Mateo Comm Coll bond.
(22) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0707 percent, which includes SSFUSD bonds, San Mateo Jr
College bond, and San Mateo Comm College. 3 has a rate of 1.1080 percent and 1 with 1.1068 percent rate which includes
College bond Brisbane ESD Bond, Jefferson High bonds, SM Jr and San Mateo Comm College. 1 has a rate of 1.0929 percent,
which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
163 437
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Genentech Inc.*3,156,586,644$ 1 11.38% 1,786,247,540$ 1 12.49%
HCP Oyster Point III LLC 861,135,005 2 3.11%--
Slough SSF LLC 706,344,528 3 2.55% 1,057,879,509 2 7.40%
ARE San Francisco LLC*560,376,454 4 2.02% 227,558,340 4 1.59%
GNS North Tower LP*475,429,011 5 1.71%--
BMR 1000 Gateway LP*455,894,074 6 1.64%--
Kilroy Realty 447,345,388 7 1.61%--
GNS South Tower LP*435,506,434 8 1.57%--
Britannia Pointe Grand LP 332,388,936 9 1.20% 286,079,475 3 --
United Airlines Inc 292,552,819 10 1.05% 192,172,702 5 --
Myers Peninsula Venture LLC*-- 138,793,737 6 0.97%
Gateway Center LLC -- 137,981,651 7 0.96%
BMR 180 Oyster Point LLC*-- 129,633,840 8 0.91%
ASN Solaire LLC -- 106,660,104 9 0.75%
ARE San Francisco No 41 EXCH LLC -- 103,253,158 10 0.72%
Subtotal 7,723,559,293$ 27.85% 4,166,260,056$ 29.13%
Total Net Assessed Valuation:
Fiscal Year 2022-23 27,730,440,659$
Fiscal Year 2013-14 14,304,352,770$
* Pending Appeals on Parcels
HdL Coren & Cone, 2013/14 & 2022/23 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2013/14 & 2022/23 Combined Tax Rolls and the SBE Non Unitary Tax Roll
Source:
2022-23 2013-14
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
164 438
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
2014 14,928,197$ (4)(4)0.0%
2015 15,184,788 (4)(4)0.0%
2016 15,994,773 (4)(4)0.0%
2017 17,065,875 (4)(4)0.0%
2018 17,894,855 (4)(4)0.0%
2019 19,365,814 (4)(4)0.0%
2020 20,651,650 (4)(4)0.0%
2021 22,660,544 (4)(4)0.0%
2022 23,680,782 (4)(4)0.0%
2023 25,780,768 (4)(4)0.0%
Notes:
(1) Excludes State Reimbursed Exemptions and deductions for County property tax administration.
(2) County adopted full cash value method of valuation rather than assessed valuation.
(3) Levies include real and personal property.
(5) San Mateo County controller's Office. Adjusted estimated revenue for City of South San Francisco.
Source: San Mateo County Auditor -- Controller's Office; Finance Department Revenue Reports
(4) Information not applicable. All general purpose property taxes are levied by the County and
allocated to other governmental entities.
CITY OF SOUTH SAN FRANCISCO
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
$25
$26
$27
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
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n
s
165 439
CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Financing
Year Agency Bonds Lease Total
2014 11,722,826$ -$ 3,316,836$ 15,039,662$
2015 11,370,152 - 2,786,573 14,156,725
2016 10,714,152 - 2,238,998 12,953,150
2017 10,691,152 - 1,673,522 12,364,674
2018 8,309,152 - 1,135,102 9,444,254
2019 4,845,152 - 753,619 5,598,771
2020 3,635,152 43,905,000 489,781 48,029,933
2021 3,595,152 156,980,389 285,529 160,861,070
2022 2,150,152 224,792,690 144,637 227,087,479
2023 2,050,152 220,225,077 - 222,275,229
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a)
2014 4,385,000$ 47,591,019$ 51,976,019$ 67,015,681$ 3.30% 1,019.27$
2015 4,120,000 43,543,614 47,663,614 61,820,339 2.92% 957.19
2016 3,850,000 39,392,832 43,242,832 56,195,982 2.59% 858.60
2017 3,570,000 35,136,032 38,706,032 51,070,706 2.22% 761.32
2018 3,275,000 30,770,503 34,045,503 43,489,757 1.80% 648.35
2019 2,970,000 35,148,205 38,118,205 43,716,976 1.63% 644.04
2020 2,655,000 50,150,607 52,805,607 100,835,540 3.48% 1,501.98
2021 2,325,000 60,480,459 62,805,459 223,666,529 7.10% 3,468.13
2022 1,980,000 60,799,450 62,779,450 289,866,929 8.55% 4,506.43
2023 1,620,000 58,447,078 60,067,078 282,342,307 n/a n/a
Note : Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of South San Francisco
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
$-
$50
$100
$150
$200
$250
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Total Governmental Total Business
166 440
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
2022-23 Assessed Valuation:27,730,440,659$
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:27,730,440,659$
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2023 % Applicable (1) Debt 6/30/23
San Mateo Community College District 708,837,622$ 9.614% 68,147,649$
Jefferson Union High School District 289,848,562 4.350 12,608,412
South San Francisco Unified School District 308,886,397 91.506 282,649,586
Brisbane School District 30,481,439 24.203 7,377,423
City of South San Francisco Community Facilities District No. 2021-1 19,685,000 100.000 19,685,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 390,468,070$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Mateo County General Fund Obligations 589,931,687$ 9.614% 56,716,032$
San Mateo County Board of Education Certificates of Participation 6,120,000 9.614 588,377
San Mateo County Flood Control and Sea LRR District General Fund Obligations 13,890,000 62.238 8,644,858
South San Francisco Unified School District General Fund Obligations 2,770,000 91.506 2,534,716
Jefferson Union High School District Certificates of Participation 47,490,000 4.350 2,065,815
City of South San Francisco Lease Revenue Bonds 220,225,077 100.000 220,225,077
City of South San Francisco Loans Payable 2,050,152 100.000 2,050,152
San Mateo County Mosquito and Vector Control District General Fund Obligations 3,617,831 9.614 347,818
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:293,172,845$
TOTAL DIRECT DEBT 222,275,229$
Total Overlapping Debt 461,365,686$
COMBINED TOTAL DEBT 683,640,915$ (2)
(1) Percentage of overlapping debt applicable to the city is estimated uisng taxable assessed property value. Applicable percentages were estimated
by determining the portion of the overlapping district's asseessed value that is within the boundaries of the city divided by the destrict's total taxable asse
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.41%
Total Direct Debt 0.80%
Combined Total Debt 2.47%
Source: California Municipal Statistics, Inc. and City of South San Francisco
510-658-2640 Austin Busch
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
167 441
ASSESSED VALUATION:27,730,440,659$
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)1,039,891,525$
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:-
LEGAL BONDED DEBT MARGIN 1,039,891,525$
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 536,413,229$ -$ 536,413,229$ 0.00%
2015 558,585,910 - 558,585,910 0.00%
2016 580,561,386 - 580,561,386 0.00%
2017 617,102,145 - 617,102,145 0.00%
2018 647,787,001 - 647,787,001 0.00%
2019 719,492,940 - 719,492,940 0.00%
2020 784,957,532 - 784,957,532 0.00%
2021 870,065,495 - 870,065,495 0.00%
2022 924,439,440 - 924,439,440 0.00%
2023 1,039,891,525 - 1,039,891,525 0.00%
NOTE: (a)
Source: HDL Coren & Cone, San Mateo County Assessor - Combined Tax Rolls
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2023
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in
basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-
fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
168 442
CITY OF SOUTH SAN FRANCISCO
REVENUE BOND COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST TEN FISCAL YEARS
Net Revenue Debt Service Requirements (4)
Fiscal Gross Operating Available for
Year Revenue (1)Expenses (2)Debt Service Principal Interest Total Coverage
2014 26,908,316$ 14,904,225$ 12,004,091$ 255,000$ 199,831$ 454,831$ 26.39
2015 26,147,550 18,630,672 7,516,878 265,000 190,533 455,533 16.50
2016 25,610,518 13,514,706 12,095,812 270,000 180,566 450,566 26.85
2017 25,684,966 17,357,273 8,327,693 280,000 169,976 449,976 18.51
2018 28,287,485 19,073,940 9,213,545 295,000 158,616 453,616 20.31
2019 30,393,993 20,398,157 9,995,836 305,000 146,616 451,616 22.13
2020 31,807,110 21,064,165 10,742,945 315,000 134,019 449,019 23.93
2021 33,885,393 21,401,332 12,484,061 330,000 120,593 450,593 27.71
2022 27,789,553 20,992,476 6,797,077 345,000 106,331 451,331 15.06
2023 30,343,556 22,399,721 7,943,835 360,000 90,000 450,000 17.65
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Gross revenue includes operating revenue and non-operating revenue.
(2) Direct operating expenses include operating expenses (except depreciation) and non-operating expenses
(except interest expense).
(3) Retirement of principal for 2005 Sewer Revenue Bonds begins in fiscal year 2008.
(4) The requirement does not include loan payments on State Water Resources Board loans. See schedule of Sewer Debt
service coverage for details.
Source: City of South San Francisco, Department of Finance
$5
$10
$15
$20
$25
$30
$35
$40
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Revenue (1)
Expenses (2)
169 443
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST EIGHT FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Service Charges 19,515,093$ 19,750,636$ 22,188,154$ 23,556,871$ 24,150,139$ 24,526,952$ 22,567,226$ 23,180,130$
Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980 710,915
Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348) 215,397
Developer Fees
Other Cities' Participation (1)5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 9,138,461 5,663,695 6,237,114
Total Revenues 25,610,530$ 25,684,966$ 28,282,672$ 30,393,993$ 31,807,110$ 33,885,393$ 27,789,553$ 30,343,556$
Operating Expenses (2)18,759,650$ 13,514,718$ 19,073,943$ 20,398,147$ 21,064,167$ 21,401,330$ 21,049,553$ 22,399,721$
Wastewater System Net Revenues 6,850,880$ 12,170,248$ 9,208,729$ 9,995,846$ 10,742,943$ 12,484,063$ 6,740,000$ 7,943,835$
Parity Debt Service (3)
State Water Resources Control Board Loans 5,449,692$ 5,454,747$ 5,469,175$ 5,477,075$ 5,485,587$ 5,497,048$ 5,510,447$ 6,088,369$
CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 102,716 85,562
Total Parity Debt 5,627,728$ 5,622,031$ 5,624,881$ 5,620,683$ 5,616,402$ 5,614,223$ 5,613,163$ 6,173,931$
Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 1.20 1.29
10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments excluding construction interest
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's share
of operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an
adopted increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005.
170 444
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
2014 1,545,000$ 2,971,344$ 4,516,344$ 2014 220,000$ 69,780$ 28,780$
2015 1,605,000 2,904,331 4,509,331 2015 230,000 58,750 288,750
2016 1,680,000 2,834,619 4,514,619 2016 245,000 46,875 291,875
2017 1,745,000 2,761,756 4,506,756 2017 255,000 34,375 289,375
2018 2018 275,000 21,125 296,125
2019 2019 285,000 7,125 292,125
2020 2020
2021 2021
2022 2022
2023 2023
Bond was paid off in fiscal year 2017
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2014 1,545,000$ 2,971,344$ 4,516,344$
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 - - -
2019 - - -
2020 - - -
2021 - - -
2022 - - -
2023 - - -
Note: Redevelopment Agencies abolished as of 1/31/2012.
Numbers for 2012 include the first and second RPTTF distributions received.
(A) Shows coverage of all non-housing bonds pledged to tax increment.
Source: City of South San Francisco, Department of Finance
RDA All Non-housing (A)
2006 RDA Revenue Bonds
Funding Source: RDA Gateway and Low Moderate Income Housing tax increment revenues.
Gateway bonds defeased in FY 05-06.
1999 RDA Revenue Bonds (Housing)
171 445
City City
Estimated Personal Per Capita City San Mateo City
City Income (2) Personal Unemployment County Population
Year Population (1) (in thousands) Income (2) Rate (3) Population (4) % of County
2013 65,710 2,005,666$ 30,523$ 5.2% 747,373 8.79%
2014 65,749 2,033,156 30,923 4.5% 745,635 8.82%
2015 64,585 2,114,826 32,744 3.6% 765,135 8.44%
2016 65,451 2,167,750 33,120 3.2% 764,797 8.56%
2017 67,082 2,303,425 35,193 3.2% 771,410 8.70%
2018 67,078 2,421,033 36,092 2.3% 769,545 8.72%
2019 67,879 2,684,438 39,547 2.3% 766,573 8.85%
2020 67,135 2,895,980 43,136 8.9% 765,245 8.77%
2021 64,492 3,148,543 48,820 5.7% 737,888 8.74%
2022 64,323 3,391,203 52,721 2.6% 729,181 8.82%
Notes:
** All data were updated to reflect the City of South San Francisco's current information available
through HDL, Coren & Cone
Data Sources:
(1) City Population: HDL/California State Dept of Finance.
(2) Personal and per capita income: HDL, Coren & Cone
(3) Unemployment Data: HDL/California Employment Development Department
(4) San Mateo County Population- https://www.census.gov/quickfacts/fact/table/sanmateocountycalifornia,CA/PST045219
CITY OF SOUTH SAN FRANCISCO
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City Personal Income
(in Thousands)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Unemployment Rate
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%8.79%8.82%
8.44%
8.56%
8.70%8.72%
8.85%
8.77%8.74%
8.82%
City Population % of County
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
City Per Capita Personal Income
172 446
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Genentech Inc.8,637 1 13.4% 7,945 1 12.2%
Verily Life Sciences LLC 2,220 2 3.5%
ABBVIE 1,000 3 1.6%
Costco Wholesale (4 stores)834 4 1.3% 510 4 0.8%
Life Technologies Corporation 622 5 1.0% 600 3 0.9%
Amgen Inc 600 6 0.9% 406 5 0.6%
Amazon.com Services 409 7 0.6%
ZS Associates, Inc 390 8 0.6%
Goodwill Industries of San Francisco 384 9 0.6%
MRL San Francisco, LLC 317 10 0.5%
Onyx Pharmaceuticals Inc 650 2 1.0%
Successfactors, Inc 400 6 0.6%
American Etc Inc/ Royal Laundry 284 7 0.4%
The New French Bakery, Inc 281 8 0.4%
Oroweat/ Entenmann's 264 9 0.4%
Theravance Biopharma U.S.258 10 0.4%
Subtotal 15,413 24.0% 11,598 17.8%
Total City Population 64,323 65,127
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/23.
(2) City of South San Francisco CAFR 2013-14
(3) Population: HDL/California State Dept of Finance 2022.
2013-142022-23
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
173 447
Function 2014 2015 2016 2017 2018 2019
2020 2021 2022 2023
General Government (1) 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60 51.30 59.38
Fire Department (2)82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68 93.49 93.49
Police Department 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92 122.09 122.44
Park, Rec. & Maintenance Services 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84 150.44 179.26
Library 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56 38.15 44.06
Economic and Comm. Development 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00 31.40 32.40
Public Works (2) 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00 52.85 59.37
Water Quality Control Plant 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50 41.50 41.50
Total 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10 581.22 631.90
Notes:
1. City Council, City Treasurer, City Clerk, City Manager, HR, IT and Finance are under General Government.
2. Oversight of the Code Enforcement has been moved from Fire to Public Works Department.
Source: City of South San Francisco's FY2014-2023 Adopted Operating budget.
CITY OF SOUTH SAN FRANCISCO
Full-Time Equivalent City Government
Employees by Function
Last Ten Fiscal Years (Adopted Operating Budget)
0.00
100.00
200.00
300.00
400.00
500.00
600.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Government (1)Fire Department (2)Police Department Park, Rec. & Maintenance Services
Library Economic and Comm. Development Public Works (2)Water Quality Control Plant
174 448
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Nine Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety:
Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 3,060 2,421
Police:
Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 60,333 59,580
Law violations:
Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 1,955 1,892
Physical arrests (adult and juvenile)1,933 2,071 1,870 1,891 1,943 1,871 1,635 2,025 1,780
Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 1,985 1,799
Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 17,667 16,995
Public works
Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 9.60 6.55
Potholes repaired (square miles
prior)/(square feet)0.11 2 0
(2) 3221 410 190 165 264 267
Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 68 44.5
Culture and recreation:
Recreation class participants* 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282 8,631 10,021
Library:
Total items borrowed 643,630 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869 456,652 439,846
Items in collection 130,106
(1) 208,400 209,895 219,114 228,224 247,393 260,205 229,891 283,792
Wastewater
Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 12,672 12,673
Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 1,523 1,508
Other connections 128 131 140 140 140 140 140 140 140
Average daily sewage treatment
(millions of gallons)8.89 7.92 8.41 8.62 8.62 7.12 6.76 7.35 7.45
Note: N/A denotes information not available.
* Registration counts excludes all withdrawals from the classes for the year.
(1) New items added for Grand Library and electronic books are also included.
(2) Beginning 2018, pothole repairs will be measured by square feet instead of square miles.
(3) Fewer items borrowed in FY2020 and FY2021 due to COVID-19 closures.
(4) Summer camp and traditional sports programs included. Lower participant counts due to COVID-19 limitations and closures.
175 449
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety:
Fire stations 5555555555
Police stations 1111111111
Police Fleet 50 53 53 52 59 63 60 63 60 63
Public works
Miles of streets 127 127 127 127 127 127 127 127 127 139.6
Street lights 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581 4,581 4,581
Parking District lights (3)20 20 20 16 16 16 16 16 16 16
Traffic Signals 74 74 76 76 76 76 76 80 80 80
Culture and recreation:
Community services:
City parks 28 28 28 28 28 28 28 28 28 30
City parks acreage 190 190 190 190 190 210 210 210 210 225
Playgrounds (4)24 24 24 24 24 24 34 34 34 35
City trails 6666666666
Community gardens 1111111111
Community centers 4444444444
Senior centers (2)1111111111
Skate Park 1111111111
Dog park 1111111111
Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds11111111111111111113
Soccer/football fields 5555555554
Library:
City Libraries (1)2222222222
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164
Miles of storm sewers 125 125 125 125 125 125 125 125 125 125
Number of treatment plants 1111111111
Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance
(1) Community Learning Center not included on count as it is only a homework center not a library.
(2) The only senior center is Magnolia Center but programming still continues at El Camino.
(3) Year 2017- Lot 6 sold for Rotary Plaza development.
(4) Year 2020 -Playgrounds in the Common Greens areas are now included.
176 450
2019 2020 2021 2022 2023
Transient Occupancy Tax Detail
TOT Collected 15,535,213$ 12,591,459$ 6,215,172$ 11,268,807$ 15,188,739$
1% Measure I Special Tax 1,556,009 1,114,911 495,099 866,831 1,168,365
Total TOT Collection 17,091,222$ 13,706,371$ 6,710,270$ 12,135,638$ 16,357,104$
1% Measure I Special Tax Use
Police 311,202$ 222,982$ 99,020$ 173,366$ 233,673$
Fire 311,202 222,982 99,020 173,366 233,673
Library 311,202 222,982 99,020 173,366 233,673
Parks 311,202 222,982 99,020 173,366 233,673
Recreation 311,202 222,982 99,020 173,366 233,673
Total 1% Measure I Special Tax 1,556,010$ 1,114,911$ 495,099$ 866,831$ 1,168,365$
* Note: The current TOT consists of three components - a 9% general excise tax (Measure FF) that generates General Fund revenues; a 1% special tax (Measure I- effective January
1, 2005) was earmarked for use to supplement funding parks, recreation, library, and public safety services (SSFMC 4.20.033) and a $2.50 tax devoted to the acquistion, renovation,
maintenance and operation of the South San Francisco Conference Center. The City Council last increased the total TOT rate from 9% to 10% in 2009 with the incremental 1%
increase being a general tax. City's TOT rate from 10% to 12% effective january 1, 2019. A subsequent 2% increase over the next two years would revise the TOT rate to 13%
(effective January 1, 2020) and 14% (effective January 1, 2021).
CITY OF SOUTH SAN FRANCISCO
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I *
Miscellaneous Information
Last Five Fiscal Years
177 451
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452
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT
ARTICLE III FUND
BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED
JUNE 30, 2023 AND 2022
453
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454
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Basic Financial Statements
For the Years Ended June 30, 2023 and 2022
Table of Contents
Page
Independent Auditor's Report ........................................................................................................................ 1
Fund Financial Statements:
Comparative Balance Sheets ................................................................................................................... 3
Comparative Statements of Revenues and Expenditures ........................................................................ 4
Notes to the Financial Statements ............................................................................................................ 5
Independent Auditor’s Report on Internal Control Over Financial Reporting,
on Compliance with the Transportation Development Act
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .............................................................. 7
455
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456
INDEPENDENT AUDITOR'S REPORT
Honorable Members of the City Council of
City of South San Francisco
South San Francisco, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the City of South San Francisco Transportation
Development Act Article III Fund (TDA Fund), which are included in the Capital Projects Fund of the City
of South San Francisco (City), California, as of and for the years ended June 30, 2023 and 2022, and related
notes to the financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the TDA Fund as of June 30, 2023 and 2022, and the respective changes in
financial position for the years then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and do not purport to, and do
not present fairly the financial positions of the City as of June 30, 2023 and 2022 or the changes in its
financial position for the years then ended in accordance with accounting principles generally accepted in
the United States of America. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of the financial statements that are free from material misstatement, whether due to fraud or error.
1 457
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if there is a substantial likelihood that, individually or in
the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the TDA Fund’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2023, on our consideration of the TDA Fund’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the TDA Fund’s internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering
the TDA Fund’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 21, 2023
2 458
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
COMPARATIVE BALANCE SHEETS
FOR THE YEARS ENDED JUNE 30, 2023 AND 2022
2023 2022
ASSETS
Due from Metropolitan Transportation Commission -$ 400,000$
Total Assets $ 400,000
LIABILITIES
Due to the City -$ 400,000$
Total Liabilities - 400,000
FUND BALANCE - -
Total Fund Balance - -
Total Liabilities and Fund Balance -$ 400,000$
See accompanying notes to financial statements
3 459
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
COMPARATIVE STATEMENTS OF REVENUES AND EXPENDITURES
FOR THE YEARS ENDED JUNE 30, 2023 AND 2022
2023 2022
REVENUES
TDA Article 3.0 (Note 2) 400,000$ 400,000$
Total Revenues 400,000 400,000
EXPENDITURES
Hillside Boulevard Road Diet Improvements 400,000 -
East Grand Avenue - CalTrain Bicycle and Pedestrian Access - 400,000
Total Expenditures 400,000 400,000$
Net change in fund balance - -
Fund balance at beginning of year - -
Fund balance at end of year -$ -$
See accompanying notes to financial statements
4 460
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Notes to the Financial Statements
For the Years Ended June 30, 2023 and 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of South San Francisco, California (City), Transportation Development Act Article III Fund
(TDA Fund) includes the financial activities associated with the State of California Transportation
Development Act. The State of California created a local transportation fund for each County funded
by a portion of the State sales tax.
The TDA Fund is distributed through the Metropolitan Transportation Commission (MTC) which is
the agency responsible for allocation of funds to eligible claimants within the greater San Francisco
Bay Area.
The TDA Fund is included in a Capital Projects Fund of the Annual Comprehensive Financial Report
of the City. The financial statements are intended to present the financial position and results of
operation for the TDA Fund, and not those of the City as a whole.
B. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized. The TDA Fund is
accounted for in a governmental fund type and the modified accrual basis of accounting is used.
Under the modified accrual basis, revenues are recognized when they become measurable and
available as net current assets. TDA Article 3.0 revenues are recognized when qualifying project
expenditures are incurred. Expenditures are generally recognized when they are incurred.
C. Deferred Inflows of Resources
In addition to liabilities, the balance sheet reports a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of fund balance that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has only one item, which arises only under
a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly,
the item, unavailable revenue, is reported only in the balance sheet. The TDA Fund reports
unavailable revenues from grants receivable, when applicable. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available.
5 461
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Notes to the Financial Statements
For the Years Ended June 30, 2023 and 2022
NOTE 2 – TDA ARTICLE 3.0 REVENUE
For the years ended June 30, 2023 and 2022 the City received allocation instructions from the
Metropolitan Transportation Commission for the following projects:
Instruction
Number Project Name Grant Award
Expended in
June 30, 2023
Revenue in
June 30, 2023
Expenditures to
date through
June 30, 2023
Revenue to date
through
June 30, 2023
20001106
East Grand Avenue - CalTrain Bicycle
and Pedestrian Access 400,000$ 400,000$ 400,000$
23001015
Hillside Boulevard Road Diet
Improvements 400,000 400,000$ 400,000$ 400,000 400,000
800,000$ 400,000$ 400,000$ 800,000$ 800,000$
NOTE 3 – COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs have been audited by the City’s
independent accountants in accordance with the provisions of applicable State requirements. No cost
disallowances were proposed as a result of these audits; however, these programs are still subject to
further examination by the grantors and the amount, if any, of expenditures which may be disallowed
by the granting agencies cannot be determined at this time. The City expects such amounts to be
immaterial.
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney, there is no pending litigation which is likely to have a material adverse effect on the financial
position of the City.
6 462
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING,
ON COMPLIANCE WITH THE TRANSPORTATION DEVELOPMENT ACT
AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Members of the City Council of
City of South San Francisco
South San Francisco, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the Transportation Development Act
Article III Fund (the TDA Fund) of the City of South San Francisco (City), California, as of and for the year
ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon
dated December 21, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the TDA Fund’s internal
control over financial reporting (internal control) as a basis for designing the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the TDA Fund’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the TDA Fund’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the TDA Fund’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency
is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not
identified. Given these limitations, during our audit we did not identify any deficiencies in internal control
that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
7 463
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of its compliance with certain TDA Fund’s provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. Our procedures included the applicable audit
procedures contained in §6666 of Title 21 of California Code of Regulations and tests of compliance with
the applicable provisions of the Transportation Development Act and the Allocation Instructions and
Resolutions of the Metropolitan Transportation Commission. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the TDA Fund’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the TDA Fund’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of the Metropolitan Transportation Commission,
management, City Council, others within the City, and federal awarding agencies and pass-through entities
and is not intended to be and should not be used by anyone other than these specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 21, 2023
8 464
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
For the Year Ended June 30, 2023
465
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466
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
For the Year Ended June 30, 2023
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion .................................................... 1
Financial Statements:
Balance Sheet .................................................................................................................................. 2
Schedule of Revenues, Expenditures and Changes in Fund Balance ............................................. 3
Notes to Financial Statements ......................................................................................................... 5
Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes ................................................................. 7
467
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468
INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure A
Funds for Local Transportation Purposes (the Agreement) between the City of South San Francisco and the
San Mateo County Transportation Authority dated March 5, 2009, that the City complied with the requirements
of the Agreement during the year ended June 30, 2023. Management is responsible for that assertion. Our
responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our
examination
Our examination was conducted in accordance with the attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to
obtain reasonable assurance about whether management’s assertion that the City complied with the
requirements of the Agreement is fairly stated, in all material respects. An examination involves performing
procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures
selected depend on our judgment, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for the
year ended June 30, 2023 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San
Mateo County Transportation Authority and is not intended to be and should not be used by anyone other
than those specified parties; however, this restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Pleasant Hill, California
December 21, 2023
1 469
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
BALANCE SHEET
JUNE 30, 2023
ASSETS:
Cash and investments $5,486,805
Accounts receivable 166,956
Accrued interest receivable 25,212
TOTAL ASSETS $5,678,973
FUND BALANCE:
Restricted for Measure A capital projects and maintenance $5,678,973
TOTAL FUND BALANCE $5,678,973
See accompanying notes to the financial statements.
2 470
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
REVENUES
Sales tax from the County of San Mateo $2,251,147
County grants 5,416
Interest and investment income 53,726
Total Revenues 2,310,289
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program FY 18-19 5,924
Grand Blvd Project - Chestnut to Arroyo 32,061
West Orange and Hillside Pedestrian Crossing Improvements 35,505
Oyster Point Peninsula Flood Improvements 31,618
Commercial and Spruce Signalized Intersection 1,476
South Linden Grade Separation 1,733
General Fund Projects:
South City Shuttle 236,677
Total Transfers Out 344,994
Net Change in Fund Balance 1,965,295
Fund Balance, July 1 3,713,678
Fund Balance, June 30 $5,678,973
See accompanying notes to the financial statements.
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472
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of June 7, 1988, the voters of City of San Mateo County approved
Measure A, which is an ordinance providing for the creation of the San Mateo County
Transportation Authority for the imposition of a one-half of one percent sales transaction and
use tax. Twenty percent of the aforementioned tax is to be allocated to the cities of San Mateo
County and to the County of San Mateo for the improvement of local transportation, including
streets and roads in accordance with Measure A requirements.
B. Basis of Accounting
The Schedule of Measure A Funds (Transportation Sales Tax), a special revenue fund of the
City of South San Francisco, California, have been prepared in conformity with accounting
principles generally accepted in the United States of America as applied to governmental units.
The Governmental Accounting Standards Board is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles.
The Measure A Funds are accounted for using the modified accrual basis of accounting. Under
this basis, revenues are recognized when they become both measurable and available to finance
expenditures of the fiscal period. Expenditures are recognized when the liability is incurred.
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474
December 21, 2023
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San
Mateo County Measure A Funds for Local Transportation Purposes (the Agreement) between the City and
the San Mateo County Transportation Authority entered into on March 5, 2009. The Agreement states that in
return for receiving an annual allocation of a specified portion of the retail transactions and use tax approved
by Measure A – San Mateo County Transportation Expenditure Plan (the Measure), the City agrees that funds
“shall not be used to replace funds previously provided by property tax or other local revenues for public
transportation purposes, and that City will limit the use of funds provided pursuant to this Agreement to the
improvement and maintenance of local transportation, including streets and road improvements.”
With respect to compliance with the Agreement, management attests to the following for the year ended June
30, 2023:
Management is responsible for establishing and maintaining an effective internal control structure
with respect to compliance with the Agreement;
Management is responsible for complying with the Agreement;
Management has evaluated the City’s compliance with the requirements of the Agreement;
All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues,
Expenditures and Changes in Fund Balance for the Year Ended June 30, 2023, are in compliance
with the Agreement.
__________________________ ________________________
City Manager Finance Director
CITY COUNCIL 2023
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
SHARON RANALS, CITY MANAGER
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476
City of South San Francisco
Measure W Funds
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for
Local Transportation Purposes in Accordance
with the San Mateo County Congestion Relief Plan
For the Year Ended June 30, 2023
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478
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
For the Year Ended June 30, 2023
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion ..................................................... 1
Financial Statements:
Balance Sheet ................................................................................................................................... 2
Schedule of Revenues, Expenditures and Changes in Fund Balance .............................................. 3
Notes to Financial Statements .......................................................................................................... 5
Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in
Accordance with the San Mateo County Congestion Relief Plan ................................................. 7
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480
INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W
Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan
(the Agreement) between the City of South San Francisco and the San Mateo County Transportation
Authority dated October 1, 2019, that the City complied with the requirements of the Agreement during the
year ended June 30, 2023. Management is responsible for that assertion. Our responsibility is to express an
opinion on management’s assertion about the City’s compliance based upon our examination.
Our examination was conducted in accordance with the attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the examination
to obtain reasonable assurance about whether management’s assertion that the City complied with the
requirements of the Agreement is fairly stated, in all material respects. An examination involves performing
procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures
selected depend on our judgment, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for
the year ended June 30, 2023 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San
Mateo County Transportation Authority and is not intended to be and should not be used by anyone other
than those specified parties; however, this restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Pleasant Hill, California
December 21, 2023
1 481
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
BALANCE SHEET
JUNE 30, 2023
ASSETS:
Cash and investments $2,080,865
Accrued interest receivable 9,032
TOTAL ASSETS $2,089,897
FUND BALANCE:
Restricted for Measure W capital projects and maintenance $2,089,897
TOTAL FUND BALANCE $2,089,897
See accompanying notes to the financial statements.
2 482
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
REVENUES
Sales tax from the County of San Mateo $912,453
Interest and investment income 19,243
Total Revenues 931,696
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program 206,476
Total Transfers Out 206,476
Net Change in Fund Balance 725,220
Fund Balance, July 1 1,364,677
Fund Balance, June 30 $2,089,897
See accompanying notes to the financial statements.
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484
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of November 6, 2018, the voters of City of San Mateo County approved
Measure W, which is an ordinance providing for the San Mateo County Transportation Authority to
impose a one-half of one percent sales transaction and use tax. The San Mateo County Congestion
Relief Plan includes an annual allocation of 12.5% of the total revenue generated by the
aforementioned tax for the Local Safety, Pothole and Congestion Relief Improvement Program
Category, of which 10% is to be allocated to the cities of San Mateo County and to the County of
San Mateo for transportation and public transit in accordance with the Congestion Relief Plan.
B. Basis of Accounting
The Schedule of Measure W Funds (Transportation Sales Tax), a special revenue fund of the City
of South San Francisco, California, have been prepared in conformity with accounting principles
generally accepted in the United States of America as applied to governmental units. The
Governmental Accounting Standards Board is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles.
The Measure W Funds are accounted for using the modified accrual basis of accounting. Under this
basis, revenues are recognized when they become both measurable and available to finance
expenditures of the fiscal period. Expenditures are recognized when the liability is incurred.
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486
December 21, 2023
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in accordance with the San Mateo County
Congestion Relief Plan
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San
Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo
County Congestion Relief Plan (the Agreement) between the City and the San Mateo County Transportation
Authority entered into on October 1, 2019. The Agreement states that in return for receiving an annual
allocation of a specified portion of the retail transactions and use tax approved by Measure W – San Mateo
County Transportation Expenditure Plan (the Measure), the City agrees that funds shall not be used to replace
funds previously provided for public transportation investments, and that City will limit the use of funds
provided pursuant to this Agreement to invest in major arterial and local roadway improvements in key
congested areas throughout the County, focusing on improving safety, reducing congestion, and supporting
all modes of travel on the County’s roadway system.
With respect to compliance with the Agreement, management attests to the following for the year ended June
30, 2023:
Management is responsible for establishing and maintaining an effective internal control structure
with respect to compliance with the Agreement;
Management is responsible for complying with the Agreement;
Management has evaluated the City’s compliance with the requirements of the Agreement;
All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues,
Expenditures and Changes in Fund Balance for the Year Ended June 30, 2023, are in compliance
with the Agreement.
__________________________ ________________________
City Manager Finance Director
CITY COUNCIL 2023
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
SHARON RANALS, CITY MANAGER
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488
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2022-2023 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of South San Francisco, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet)
of the City of South San Francisco, California, for the year ended June 30, 2023. The City’s management is
responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of these procedures, which were suggested by the League of California Cities and
presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist
you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report
may not be suitable for any other purpose. The procedures performed may not address all the items of
interest to a user of this report and may not meet the needs of all users of this report and, as such, users are
responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings were as follows:
A. We obtained the Worksheet and determined that the 2022-2023 Appropriations Limit of
$168,641,010 and annual adjustment factors were adopted by Resolution of the City Council. We
also determined the population and inflation options were selected by a recorded vote of the City
Council.
B. We recomputed the 2022-2023 Appropriations Limit by multiplying the 2021-2022 Prior Year
Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by
multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor and City Population Factor to
California State Department of Finance Worksheets. The County Population Factor was not
included in the City’s Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review engagement,
the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures,
other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our agreed-upon procedures engagement.
489
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than those specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 27, 2023
490
CITY OF SOUTH SAN FRANCISCO
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2023
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492
CITY OF SOUTH SAN FRANCISCO
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2023
Table of Contents
Page
Required Communications ................................................................................................................................ 1
Significant Audit Matters:
Qualitative Aspects of Accounting Practices ................................................................................... 1
Difficulties Encountered in Performing the Audit ........................................................................... 3
Corrected and Uncorrected Misstatements ...................................................................................... 3
Disagreements with Management .................................................................................................... 3
Management Representations ............................................................................................................ 3
Management Consultations with Other Independent Accountants ................................................. 3
Other Audit Findings or Issues .......................................................................................................... 3
Other Matters ............................................................................................................................................ 4
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494
REQUIRED COMMUNICATIONS
To the City Council of
the City of South San Francisco, California
We have audited the basic financial statements of the City of South San Francisco, California, for the year
ended June 30, 2023. We did not audit the financial statements of the South San Francisco Conference
Center Authority, a discretely presented component unit of the City, as of and for the year ended June 30,
2023, which represents 0.61%, 0.79%, and 1.32%, of the assets, net position and revenues,
respectively, of the primary government. The component unit financial statements were audited by
another auditor, whose report thereon has been furnished to us, and our opinion, insofar as it
relates to the amounts included for this entity, is based solely on the report of the other auditors.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as
well as certain information related to the planned scope and timing of our audit. We have communicated
such information in our letter to you dated October 18, 2023 and in our meeting with the City Manager on
May 23, 2023. Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted, and the application of existing policies was not
changed during the year.
The following pronouncements became effective, but did not have a material effect on the financial
statements:
GASB 91 – Conduit Debt Obligations
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment
Arrangements
GASB 96 – Subscription-Based Information Technology Arrangements
GASB 99 – Omnibus 2022, paragraphs 11-25
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
1 495
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and current events
and assumptions about future events. Certain accounting estimates are particularly sensitive because of
their significance to the financial statements and because of the possibility that future events affecting
them may differ significantly from those expected. The most sensitive estimates affecting the City’s
financial statements were:
Estimated Fair Value of Investments: As of June 30, 2023, the City held approximately $424.2
million of cash and investments as measured by fair value as disclosed in Note 2 to the financial
statements. Fair value is essentially market pricing in effect as of June 30, 2023. These fair
values are not required to be adjusted for changes in general market conditions occurring
subsequent to June 30, 2023.
Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives
determined by management. These lives have been determined by management based on the
expected useful life of assets as disclosed in Note 1L to the financial statements. We evaluated
the key factors and assumptions used to develop the depreciation estimate and determined that it
is reasonable in relation to the basic financial statements taken as a whole.
Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of
Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of
resources are disclosed in Note 7 to the financial statements and are based on actuarial studies and
accounting valuations determined by the California Public Employees Retirement System, which
are based on the experience of the City. We evaluated the key factors and assumptions used to
develop the estimates and determined that the estimates are reasonable in relation to the basic
financial statements taken as a whole.
Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:
Management’s estimate of the net OPEB liability and deferred outflows/inflows of resources are
disclosed in Note 9 to the financial statements and are based on an actuarial study determined by
a consultant, which is based on the experience of the City. We evaluated the key factors and
assumptions used to develop the estimates and determined that the estimates are reasonable in
relation to the basic financial statements taken as a whole.
Estimated Compensated Absences: Accrued compensated absences, which are comprised of
accrued vacation and sick leave, is estimated using accumulated unpaid leave hours and hourly
pay rates in effect at the end of the fiscal year, and are disclosed in Note 1M to the financial
statements. We evaluated the key factors and assumptions used to develop the accrued
compensated absences and determined that it is reasonable in relation to the basic financial
statements taken as a whole.
\
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed
in Note 12 to the financial statements and the worker’s compensation claims payable is based on
an actuarial study determined by a consultant and the general liability claims payable is based on
estimates determined by the City’s third party claims administrator, which are both based on the
claims experience of the City. We evaluated the key factors and assumptions used to develop the
estimate and determined that it is reasonable in relation to the basic financial statements taken as
a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
2 496
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit’s financial statements taken as a whole.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of
management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in a management
representation letter dated December 27, 2023.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
3 497
Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and
supplements the basic financial statements. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We did not audit the required supplementary information
and do not express an opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information which accompany the financial statements,
but are not required supplementary information. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial
statements, but are not required supplementary information. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance on them.
******
This information is intended solely for the use of City Council and management and is not intended to be,
and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
December 27, 2023
4 498
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2023
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500
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1
Schedule of Other Matters ....................................................................................................................... 3
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502
1
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
The City of South San Francisco, California
We have audited the basic financial statements of the City of South San Francisco, California, for the year
ended June 30, 2023, and have issued our report thereon dated December 27, 2023. Our opinions on the
basic financial statements and this report, insofar as they relate to the South San Francisco Conference
Center Authority, are based solely on the report of other auditors. In planning and performing our audit
of the basic financial statements of the City as of and for the year ended June 30, 2023, in accordance
with auditing standards generally accepted in the United States of America, we considered the City’s
internal control over financial reporting (internal control) as a basis for designing our audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. In addition,
because of inherent limitations in internal control, including the possibility of management override of
controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these
limitations during our audit, we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe are opportunities for strengthening internal controls and operating efficiency or other
informational items.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response
to the findings identified in our audit and described in the accompanying Schedule of Significant
Deficiencies and Schedule of Other Matters. The City’s response was not subjected to the other auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the
response.
This communication is intended solely for the information and use of management, City Council, others
within the organization, and agencies and pass-through entities requiring compliance with Government
Auditing Standards and is not intended to be and should not be used by anyone other than these specified
parties.
Pleasant Hill, California
December 27, 2023
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504
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2023-01 Timely Escrow Retention Account Reconciliations
Certain arrangements with construction contract vendors require that the City deposit the retentions
payable into an escrow account. At the end of the project, the retention is then released to the vendor and
withdrawn from the account. The balance in the escrow account should be recorded in the general ledger
and agree to the balance of the retention payable.
The City had five escrow accounts recorded in the general ledger when we started the audit. After we
asked for the associated June 2023 bank statements and account reconciliations in October 2023, City
staff determined that transactions in four of the accounts had not been recorded in the general ledger and
the balances did not agree to the retentions payable.
One account had been closed in December 2022 when the retention was released to the vendor, but the
balance in the general ledger provided for audit was $244,715, and one account had been closed in June
2023, but the balance in the general ledger provided for audit was $434,324. In addition, two other
accounts required adjustments to the cash and retentions payable in the amounts of $258 and $1,401.
Although we understand that Finance staff attempted to obtain the retention account information from
other departments well before the year-end closing, the final information was not provided to the Finance
Department until October 2023 and the final reconciliation and adjustment was completed after the year-
end audit began. We also understand that the Finance department performs these reconciliations on an
annual basis and relies upon other departments to notify Finance when retentions are released and to
provide the escrow account statements.
When bank account activity is not reconciled to the general ledger and recorded in a timely manner, errors
or unauthorized transactions could go undetected. And, when retention escrow account activity is not
recorded in the general ledger, the cash and retentions payable balances could be over- or understated.
The City should develop procedures to ensure that the escrow account statements are provided to the
Finance Department throughout the fiscal year and when accounts are opened and closed, and the City
should consider adjusting the balance in the general ledger on a more frequent basis, such as monthly or
quarterly.
Management’s Response:
The City will work with Public Works department to establish process to ensure that Finance will
be notified when retention to contractor is released. Finance will also request to receive a
monthly statement from each trustee account. City agreed that the reconciliation should be done
on a regular basis to avoid delay in recording the transactions in future.
3 505
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2023-02 Timely Journal Entry Posting
Journal entries should be prepared and reviewed in a timely manner for the period in which the entry is to
be posted, in order to keep accounts up to date with the current information. Generally, journal entries
should be posted within 30-45 days of the transaction. In addition, to have a complete audit trail of the
journal entry process, the dates of preparation and review should be documented for all journal entries.
And, the post date of journal entries should normally be the date when the transactions occurred.
We selected forty journal entries for testing of controls over the journal entry process and supporting
documentation and noted 13 of the journal entries were prepared and posted to the general ledger more
than a month after the activity of the transaction took place. Although once the journal entries were
prepared, they were reviewed and approved in a timely manner, the posting dates of the journal entries
ranged from two to four months after the transaction dates.
Without the timely preparation, review and approval of journal entries, there is an increased risk of errors
going undetected and inaccurate interim reporting.
The City should develop procedures to ensure that all journal entries are prepared, reviewed, approved
and posted to the general ledger in a timely manner (generally within 30-45 days of the date of activity).
Management’s Response:
The City agrees that the journal entries should be prepared and posted to General Ledger within
reasonable time. Due to significant staff turnover in FY 2022-23, City is aware of posting delays
and have implemented measures to have other staff to help with the review and approval.
2023-03 Unrecorded Loan Receivable
Loans issued by the City to outside agencies should be recorded in the general ledger.
During our review of the City Council minutes for fiscal year 2023, one action item mentioned a prior
loan to a nonprofit agency and we noted that the loan was not recorded in the general ledger and was not
included in the City’s loans inventory listing.
City staff determined that the loan in the amount of $100,000 had been expensed when the loan was
issued in fiscal year 2018.
Although the loan has a forgiveness provision and the City historically offsets such loans with an
allowance for collectability, which means the net impact on the general ledger is zero, the City should
develop procedures to ensure that all loans are recorded in the general ledger as a receivable when issued.
Management’s Response:
The City agrees with this finding. The loan receivable happened in 2018 and our Economic and
Community Development Department (ECD) had experienced a high staff turnover. Finance will
review all the outstanding loans with ECD staff to ensure that all the loans receivable that have a
forgivable clause will be reflected properly in the general ledger.
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MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2023-04 Develop Policy for Processing Terminated Employees
The City should process terminated employees in a timely manner. This includes terminating the
employee from both the payroll and general ledger systems upon issuance of their last check, or shortly
thereafter.
We selected twenty terminated employees for testing of proper and timely cutoff in the City’s computer
system and noted seven were not terminated from the payroll system from four months to up to four years
after their last check date, as follows:
Termination
Date
Last Check
Date
10/14/2022 11/21/2018
11/28/2022 7/28/2022
1/5/2023 3/18/2022
2/17/2023 8/26/2021
2/17/2023 10/7/2021
3/31/2023 7/16/2020
3/31/2023 9/9/2021
The majority of the employees were part-time seasonal employees, and the department did not determine
they would be separated from employment until fiscal year 2023. And, although we understand the City’s
departmental staff like the flexibility of being able to utilize the employees for special events, keeping
inactive employees in the payroll and accounting system for extended periods of time could lead to
unauthorized payroll payments or unintended access to the City’s accounting system.
We also understand the City’s payroll system does not have an option for deactivating employees, so
seasonal employees will remain active in the system until the department submits a Personnel Action
Form (PAF) to the Human Resources department to terminate them. Therefore, the City should work to
develop a policy to define a reasonable timeframe for which employees may be inactive in the system
before they are terminated.
Management’s Response:
Finance has discussed the issue with the Human Resources Department during the audit. We will
follow up with the Human Resources Department to develop a policy to define a reasonable
timeframe for which employees may remain active in the system before they are terminated. We
would discuss the process of reviewing inactive employee status by department annually to
determine their employment status.
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MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking affect in the next few years. We have
cited them here to keep you informed of developments:
EFFECTIVE FISCAL YEARS 2021/22, 2022/23 and 2023/24:
GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to
improve the consistency of authoritative literature by addressing (1) practice issues that have been
identified during implementation and application of certain GASB Statements and (2) accounting and
financial reporting for financial guarantees. The practice issues addressed by this Statement are as
follows:
•Classification and reporting of derivative instruments within the scope of Statement No. 53,
Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of
either an investment derivative instrument or a hedging derivative instrument
•Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination
of the lease term, classification of a lease as a short term lease, recognition and measurement of a
lease liability and a lease asset, and identification of lease incentives
•Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements, related to (a) the determination of the public-private and
public-public partnership (PPP) term and (b) recognition and measurement of installment
payments and the transfer of the underlying PPP asset
•Clarification of provisions in Statement No. 96, Subscription-Based Information Technology
Arrangements, related to the subscription-based information technology arrangement (SBITA)
term, classification of a SBITA as a short term SBITA, and recognition and measurement of a
subscription liability
•Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered
an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an
interest rate swap that hedges the interest rate risk of taxable debt
•Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance
Program (SNAP)
•Disclosures related to nonmonetary transactions
•Pledges of future revenues when resources are not received by the pledging government
•Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s
Discussion and Analysis—for State and Local Governments, as amended, related to the focus of
the government-wide financial statements
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CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 99 – Omnibus 2022 (Continued)
•Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
•Terminology used in Statement 53 to refer to resource flows statements.
The Requirements of this Statement are Effective as Follows:
The requirements in paragraphs 26–32 related to extension of the use of LIBOR, accounting for SNAP
distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging
governments, clarification of certain provisions in Statement 34, as amended, and terminology updates
related to Statement 53 and Statement 63 are effective upon issuance.
The requirements in paragraphs 11–25 related to leases, PPPs, and SBITAs are effective for fiscal years
beginning after June 15, 2022, and all reporting periods thereafter.
The requirements in paragraphs 4–10 related to financial guarantees and the classification and reporting
of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after
June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by individual topic.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will enhance comparability in the application of accounting and
financial reporting requirements and will improve the consistency of authoritative literature. Consistent
authoritative literature enables governments and other stakeholders to more easily locate and apply the
correct accounting and financial reporting provisions, which improves the consistency with which such
provisions are applied. The comparability of financial statements also will improve as a result of this
Statement. Better consistency and comparability improve the usefulness of information for users of state
and local government financial statements.
EFFECTIVE FISCAL YEAR 2023/24:
GASB 100 – Accounting for Changes and Error Corrections
The primary objective of this Statement is to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandable, reliable, relevant, consistent,
and comparable information for making decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles, changes in accounting
estimates, and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting
principles and (2) certain changes in accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the
principle or methodology used before the change. That preferability should be based on the qualitative
characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency,
and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.
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MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 100 – Accounting for Changes and Error Corrections (Continued)
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change
and (2) error corrections. This Statement requires that (a) changes in accounting principles and error
corrections be reported retroactively by restating prior periods, (b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in
accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a new
pronouncement in absence of specific transition provisions in the new pronouncement. This Statement
also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund
balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to
beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting
principle or error correction should be presented in required supplementary information (RSI) and
supplementary information (SI). For periods that are earlier than those included in the basic financial
statements, information presented in RSI or SI should be restated for error corrections, if practicable, but
not for changes in accounting principles.
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not
been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A
liability should be recognized for leave that has not been used if (a) the leave is attributable to services
already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time
off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already
rendered when an employee has performed the services required to earn the leave. Leave that accumulates
is carried forward from the reporting period in which it is earned to a future reporting period during which
it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not
to be used or otherwise paid or settled, a government should consider relevant factors such as
employment policies related to compensated absences and historical information about the use or
payment of compensated absences. However, leave that is more likely than not to be settled through
conversion to defined benefit postemployment benefits should not be included in a liability for
compensated absences.
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MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
This Statement requires that a liability for certain types of compensated absences—including parental
leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement
also requires that a liability for specific types of compensated absences not be recognized until the leave
is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used,
generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that
has been used but not yet paid or settled should be measured at the amount of the cash payment or
noncash settlement to be made. Certain salary-related payments that are directly and incrementally
associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus,
this Statement requires that expenditures be recognized for the amount that normally would be liquidated
with expendable available financial resources.
Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability
for compensated absences to allow governments to disclose only the net change in the liability (as long as
they identify it as a net change). In addition, governments are no longer required to disclose which
governmental funds typically have been used to liquidate the liability for compensated absences.
How the Changes in this Statement Will Improve Financial Reporting
The unified recognition and measurement model in this Statement will result in a liability for
compensated absences that more appropriately reflects when a government incurs an obligation. In
addition, the model can be applied consistently to any type of compensated absence and will eliminate
potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a
government will pay or settle, which will enhance the relevance and reliability of information about the
liability for compensated absences.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1104 Agenda Date:1/24/2024
Version:1 Item #:10.
Report regarding a resolution appropriating $200,000 of state grant funds for Every Kid Deserves a Bike
Program and approving Budget Amendment Number 24.024.(Devin Stenhouse,Diversity,Equity,and
Inclusion Officer)
RECOMMENDATION
BACKGROUND/DISCUSSION
The Every Kid Deserves a Bike (EKDAB)program was launched by the City of South San Francisco in broad
partnership with the San Mateo County Office of Education -Safe Routes to School,civic organizations,and
volunteers,to connect children from low-income families with outdoor experiences and growth through free
bicycles and support.
In fiscal year 2022,the EKDAB Program successfully provided 150 bicycles,helmets,and locks to fourth
graders at Spruce Elementary School and fifth graders at Martin Elementary School and was awarded the 2022
Program of the Year Award by the Silicon Valley Bike Coalition.In 2023,the EKDAB Program expanded to
350 bicycles,helmets,locks,bike pumps,and kickstands for fourth,fifth,and sixth grade students of Spruce
Elementary,Martin Elementary,Los Cerritos Elementary,Sunshine Gardens Elementary,and Parkway Heights
Middle schools.
2024 marks the third consecutive year of the EKDAB Program.In prior years,the City received generous
donations from Genentech,Rotary Club,and Kaiser.For the current fiscal year,Assemblymember Diane Papan
supported a $200,000 earmark in the state adopted budget for the City’s EKDAB program,which will allow the
City to provide another 350 bicycles,helmets,locks,bike pumps,and kickstands for fourth,fifth,and sixth
grade students of Spruce Elementary,Martin Elementary,Los Cerritos Elementary,Sunshine Gardens
Elementary, and Parkway Heights Middle schools.
FISCAL IMPACT
Appropriation of the $200,000 in state funds for the EKDAB Program has no net effect on the General Fund.
Budget Amendment Number 24.024 reflects the increase of $200,000 in General Fund revenues and
expenditures.
RELATIONSHIP TO STRATEGIC PLAN
This action supports the City Council’s strategic priority of Quality of Life by promoting active recreation,safe
transportation options, and healthy lifestyles.
CONCLUSION
Staff recommends that the City Council appropriate $200,000 of state grant funds for the EKDAB Program and
approve Budget Amendment Number 24.024.The resolution includes said budget amendment for Fiscal Year
2023-24 to reflect the state grant funds and costs associated with EKDAB.
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Government Code Section 54957.5
SB 343 Agenda: 01/24/2024
Reg CC Item # 10
514
2022: Martin and Spruce
2023 & 2024: Martin, Spruce, Los Cerritos, Sunshine Gardens, and Parkway
2022 2023 2024
Number of bikes
distributed 150 350 350
Helmets
Bike locks
Bike pumps
Kick stands
2
515
$200,000 in State’s 2023-24
Adopted Budget
•Support from Assemblymember Diane
Papan
•Risk of clawback due to State’s budget
deficit
3
516
4
School Grade Date
Parkway Heights Middle 6th May 1
Los Cerritos Elementary 4th May 6
Sunshine Gardens Elementary 4th May 10
Spruce Elementary 4th May 16
Martin Elementary 4th May 20
517
5
518
Adopt a resolution appropriating $200,000 of state grant funds for
the Every Kid Deserves a Bike Program and approving Budget
Amendment Number 24.024
519
520
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1105 Agenda Date:1/24/2024
Version:1 Item #:10a.
Resolution appropriating $200,000 of state grant funds for the Every Kid Deserves a Bike Program and
approving Budget Amendment Number 24.024.
WHEREAS,the Every Kid Deserves a Bike (EKDAB)Program was launched in 2022 in partnership with the
San Mateo County Office of Education -Safe Routes to School,civic organizations,and volunteers to connect
children from low-income families with outdoor experiences and growth through free bicycles and support; and
WHEREAS in 2022,the EKDAB Program provided 150 bicycles,helmets,and locks to fourth grade students
at Spruce Elementary School and fifth grade students at Martin Elementary School; and
WHEREAS,the EKDAB Program expanded in 2023 to provide 350 bicycles,helmets,locks,bike pumps,and
kickstands for fourth,fifth,and sixth grade students of Spruce Elementary,Martin Elementary,Los Cerritos
Elementary, Sunshine Gardens Elementary, and Parkway Heights Middle schools; and
WHEREAS,in prior fiscal years,the EKDAB Program received generous donations from Genentech,Rotary
Club, and Kaiser; and
WHEREAS,for 2024,Assemblymember Diane Papan supported an earmark in the State of California’s
adopted budget of $200,000 for the EKDAB Program to provide another 350 bicycles,helmets,locks,bike
pumps, and kickstands for the same grades and schools as the prior year; and
WHEREAS,the state funds will be used to amend the Fiscal Year (FY)2023-24 Operating Budget of the Office
of the City Manager via Budget Amendment Number 24.024.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby
appropriate $200,000 in state grant funds for the Every Kid Deserves a Bike Program.
BE IT FURTHER RESOLVED that the City Council approves Budget Amendment Number 24.024 to amend
the Office of the City Manager’s FY 2023-24 Operating Budget to reflect an increase of $200,000 in both
revenues and expenditures.
BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to execute the
documents necessary to accept the state grant funding and take any other actions necessary to carry out the
intent of this resolution on behalf of the City Council, subject to approval as to form by the City Attorney.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1106 Agenda Date:1/24/2024
Version:1 Item #:11.
Report Regarding a Resolution Approving a Professional Services Agreement with Boucher Law,PC in the
Amount of $100,000 for Labor Relations Consulting Services.(Leah Lockhart, Human Resources Director)
RECOMMENDATION
Approve by resolution a Professional Services Agreement with Boucher Law,PC in the Amount of $100,000
for Labor Relations Consulting Services.
BACKGROUND/DISCUSSION
The City’s full-time and permanent part-time workforce is organized into seven (7)employee bargaining units,
and the City maintains collective bargaining agreements with each group regarding wages,hours,and other
terms and conditions of employment,also referred to as Memorandums of Understanding (MOU).In 2022,the
City completed negotiations for successor MOUs with all bargaining units,three of which will expire on July 1,
2024,and four of which will expire on July 1,2025.In previous years,the City has either hired a third-party
consultant to serve as the City’s chief negotiator during bargaining for all or some of the bargaining units,with
the Human Resources Director co-leading bargaining sessions or serving as chief negotiator for smaller units.
Staff issued a Request for Proposals (RFP)for labor relations consulting services,which includes serving as
chief negotiator as assigned,advising on bargaining strategy and technical matters related to labor and
employment law,assisting with development of proposal language,and performing necessary research in
support of negotiations.The City received three (3)timely responses to the RFP.Proposals were received by
Industrial Employers Distributers Association (IEDA),Liebert Cassidy Whitmore (LCW),and Boucher Law.
The proposals were reviewed by staff and all three were recommended for interviews based on the overall
quality of the proposal,degree to which to proposal responded to specific criteria listed in the RFP,and the
experience of proposed consulting staff with labor negotiations for California cities or other public agencies
performing similar services.
The prospective consultants were interviewed evaluated by an internal panel comprised of:
·Human Resources Director
·Assistant City Manager
·Finance Director
Panel members evaluated the finalists according to criteria listed below:
·Experience
·Communication and Interpersonal Effectiveness
·Expertise and Strategy
·Pricing and Value
As a result of this process,followed by interviews with professional references,Boucher Law was identified as
the top candidate,with Christopher Boucher serving as chief negotiator.Founded in 2020,Boucher Law
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File #:23-1106 Agenda Date:1/24/2024
Version:1 Item #:11.
the top candidate,with Christopher Boucher serving as chief negotiator.Founded in 2020,Boucher Law
provides labor representation services as well as legal and human resources consulting services with a focus on
public agency clients.Mr.Boucher has a demonstrated track record of working collaboratively and openly with
labor representatives,staff,and elected officials to achieve successful outcomes in negotiations.He is well-
versed in all aspects of labor and employment law,including the Meyers-Milias-Brown Act (MMBA)and other
laws unique to municipal workforces and operations.In addition,his years of experience working internally as
a human resources professional brings perspective to building and maintaining trust and strong working
relationships with labor representatives while implementing the agency’s human resources and financial
objectives.Mr.Boucher is supported by a small team of professional attorneys and consultants to assist with
additional workload and to provide expertise on an as-needed basis during the term of the proposed agreement.
FISCAL IMPACT
The proposed agreement contains a not-to-exceed limit of $100,000,with the understanding that labor
negotiations may vary in terms of the number of meetings necessary in order to reach agreement.In the City’s
adopted 2023-24 operating budget,Council authorized one-time funds in the amount of $100,000 for labor
relations consulting services.
RELATIONSHIP TO STRATEGIC PLAN
Consulting services for labor negotiations supports the City’s strategic priority of Workforce Development,by
sustaining strong and collaborative relationships with employee organizations and ensuring the City maintains
an appropriate compensation package to attract and retain a high performing workforce.
CONCLUSION
By approving an agreement with Boucher Law for labor relations consulting services and authorizing the City
Manager to execute same agreement, Council will provide staff with the necessary resources for successful
labor negotiations in alignment with the City’s goals and priorities.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-1107 Agenda Date:1/24/2024
Version:1 Item #:11a.
Resolution Approving a Professional Services Agreement with Boucher Law,PC in the Amount of $100,000
for Labor Relations Consulting Services
WHEREAS,the City of South San Francisco utilizes third-party consulting services to assist with labor
relations and negotiations services for the City’s seven employee bargaining units; and
WHEREAS,Staff conducted a Request for Proposals (RFP)in accordance with the City’s purchasing policies
for labor relations consulting services; and
WHEREAS,the City received proposals from Boucher Law,PC,Industrial Employees Distributors Association
(IEDA), and Liebert Cassidy Whitmore; and
WHEREAS,as a result of the proposal review and interviews based on qualifications,cost,and ability to meet
the specific needs of the City,staff recommends that City Council approve a professional service agreement
with Boucher Law, PC;
WHEREAS,the proposed Agreement includes a budget not-to-exceed $100,000 annually through January 25,
2025; and
WHEREAS,the City’s Fiscal Year 2023-24 operating budget includes $100,000 for labor relations consulting
services.
NOW,THEREFORE BE IT RESOLVED,that the City Council of South San Francisco hereby approves a
professional services agreement with Boucher Law,PC,attached hereto and incorporated herein as Exhibit A,
for labor relations consulting services in an amount not to exceed $100,000 for January 25,2024 through
January 25, 2025.
BE IT FURTHER RESOLVED,that the City Council hereby authorizes the City Manager to execute the
professional services agreement with Boucher Law,PC,in substantially the same form as Exhibit A and to
make any revisions,corrections,or modifications thereto,subject to approval as to form by the City Attorney,
deemed necessary to carry out the intent of this Resolution and which do not materially alter or increase the
City’s obligations thereunder;and to take any related action reasonably necessary to carry out the intent of this
Resolution.
BE IT FURTHER RESOLVED, that this Resolution shall become effective upon its adoption.
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Consulting Services Agreement between [Rev:11.14.2016] December 26, 2023
City of South San Francisco and Boucher Law, PC Page 1 of 16
CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF SOUTH SAN FRANCISCO AND
Boucher Law, PC
THIS AGREEMENT for consulting services is made by and between the City of South San
Francisco (“City”) and Boucher Law, PC (“Consultant”) (together sometimes referred to as the “Parties”) as
of January 25, 2024 (the “Effective Date”).
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant
shall provide to City the services described in the Scope of Work attached as Exhibit A, attached hereto
and incorporated herein, at the time and place and in the manner specified therein. In the event of a
conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall
prevail.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall
end on January 25, 2025, and Consultant shall complete the work described in Exhibit A
prior to that date, unless the term of the Agreement is otherwise terminated or extended,
as provided for in Section 8. The time provided to Consultant to complete the services
required by this Agreement shall not affect the City’s right to terminate the Agreement, as
provided for in Section 8.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this
Agreement in the manner and according to the standards observed by a competent
practitioner of the profession in which Consultant is engaged in the geographical area in
which Consultant practices its profession. Consultant shall prepare all work products
required by this Agreement in a substantial, first -class manner and shall conform to the
standards of quality normally observed by a person practicing in Consultant's profession.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion, at any
time during the term of this Agreement, desires the reassignment of any such persons,
Consultant shall, immediately upon receiving notice from City of such desire of City,
reassign such person or persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this
Agreement as may be reasonably necessary to meet the standard of p erformance
provided in Sections 1.1 and 1.2 above and to satisfy Consultant’s obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed One
Hundred Thousand Dollars ($100,000), notwithstanding any contrary indications that may be contained in
Consultant’s proposal, for services to be performed and reimbursable costs incurred under this Agreement.
In the event of a conflict between this Agreement and Consultant’s proposal, attached as Exhibit A, or
Consultant’s compensation schedule attached as Exhibit B, regarding the amount of compensation, the
Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the
time and in the manner set forth herein. The payments spe cified below shall be the only payments from
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City of South San Francisco and Boucher Law, PC Page 2 of 16
City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to
City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City
for duplicate services performed by more than one person.
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this
Agreement is based upon Consultant’s estimated costs of providing the services required hereunder,
including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties
further agree that compensation hereunder is intended to include the costs of contributions to any pensions
and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City
therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than onc e per month during
the term of this Agreement, based on the cost for services performed and reimbursable
costs incurred prior to the invoice date. Invoices shall contain the following information:
▪ Serial identifications of progress bills (i.e., Progress Bill No. 1 for the first invoice,
etc.);
▪ The beginning and ending dates of the billing period;
▪ A task summary containing the original contract amount, the amount of prior
billings, the total due this period, the balance available under the Agreement, and
the percentage of completion;
▪ At City’s option, for each work item in each task, a copy of the applicable time
entries or time sheets shall be submitted showing the name of the person doing
the work, the hours spent by each person, a brief description of t he work, and
each reimbursable expense;
▪ The total number of hours of work performed under the Agreement by Consultant
and each employee, agent, and subcontractor of Consultant performing services
hereunder, as well as a separate notice when the total numb er of hours of work by
Consultant and any individual employee, agent, or subcontractor of Consultant
reaches or exceeds eight hundred (800) hours, which shall include an estimate of
the time necessary to complete the work described in Exhibit A;
▪ The amount and purpose of actual expenditures for which reimbursement is
sought;
▪ The Consultant’s signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for
services satisfactorily performed, and for authorized reimbursable costs incurred. City
shall have thirty (30) days from the receipt of an invoice that complies with all of the
requirements above to pay Consultant. City shall have no obligation to pay invoices
submitted ninety (90) days past the performance of work or incurrence of cost.
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2.3 Final Payment. City shall pay the last ten percent (10%) of the total sum due pursuant to
this Agreement within sixty (60) days after completion of the services and submittal to City
of a final invoice, if all services required have been satisfactorily performed.
2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to
this Agreement. City shall not pay any additional sum for any expense or cost whatsoever
incurred by Consultant in rendering services pursuant to this Agreement. City shall make
no payment for any extra, further, or additional service pursuant to this Agreement.
In no event shall Consultant submit any invoice for an amount in excess of the maximum
amount of compensation provided above either for a task or for the entire Agreement,
unless the Agreement is modified prior to the submission of such an invoice by a properly
executed change order or amendment.
2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed
the amounts shown on the compensation schedule attached hereto and incorporated
herein as Exhibit B.
2.6 Reimbursable Expenses. The following constitute reimbursable expenses authorized by
this Agreement: Mileage expenses (in accordance with Internal Revenue Service
allowable rates), bridge tolls, parking, delivery fees, postage, and other items as described
in Exhibit B. Reimbursable expenses shall not exceed $10,000, unless authorized in
writing by the City. Reimbursable expenses are included in the total amount of
compensation provided under Section 2 of this Agreement that shall not be exceeded.
2.7 Payment of Taxes, Tax Withholding. Consultant is solely responsible for the payment of
employment taxes incurred under this Agreement and any similar federal or state taxes.
To be exempt from tax withholding, Consultant must provide City with a valid California
Franchise Tax Board form 590 (“Form 590”), as may be amended and such Form 590
shall be attached hereto and incorporated herein as Exhibit D. Unless Consultant provides
City with a valid Form 590 or other valid, written evidence of an exemption or waiver from
withholding, City may withhold California taxes from payments to Consultant as required
by law. Consultant shall obtain, and maintain on file for three (3) years after the termination
of this Agreement, Form 590s (or other written evidence of exemptions or waivers) from all
subcontractors. Consultant accepts sole responsibility for withholding taxes from any non -
California resident subcontractor and shall submit written documentation of compliance
with Consultant’s withholding duty to City upon request.
2.8 Payment upon Termination. In the event that the City or Consultant terminates this
Agreement pursuant to Section 8, the City shall compensate the Consultant for all
outstanding costs and reimbursable expenses incurred for work satisfactorily completed as
of the date of written notice of termination. Consultant shall maintain adequate logs and
timesheets in order to verify costs incurred to that date.
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2.9 Authorization to Perform Services. The Consultant is not authorized to perform any
services or incur any costs whatsoever under the terms of this Agreement until receipt of
authorization from the Contract Administrator.
2.10 Prevailing Wage. Where applicable, the wages to be paid for a day's work to all classes
of laborers, workmen, or mechanics on the work contemplated by this Agreement, shall be
not less than the prevailing rate for a day’s work in the same trade or occupation in the
locality within the state where the work hereby contemplates to be performed as
determined by the Director of Industrial Relations pursuant to the Director’s authority under
Labor Code Section 1770, et seq. Each laborer, worker or mechanic employed by
Consultant or by any subcontractor shall receive the wages herein provided for. The
Consultant shall pay two hundred dollars ($200), or whatever amount may be set by Labor
Code Section 1775, as may be amended, per day penalty for each worker paid less than
prevailing rate of per diem wages. The difference between the prevailing rate of per diem
wages and the wage paid to each worker shall be paid by the C onsultant to each worker.
An error on the part of an awarding body does not relieve the Consultant from
responsibility for payment of the prevailing rate of per diem wages and penalties pursuant
to Labor Code Sections 1770 1775. The City will not recognize any claim for additional
compensation because of the payment by the Consultant for any wage rate in excess of
prevailing wage rate set forth. The possibility of wage increases is one of the elements to
be considered by the Consultant.
a. Posting of Schedule of Prevailing Wage Rates and Deductions. If the schedule of
prevailing wage rates is not attached hereto pursuant to Labor Code Section 1773.2, the
Consultant shall post at appropriate conspicuous points at the site of the project a
schedule showing all determined prevailing wage rates for the various classes of laborers
and mechanics to be engaged in work on the project under this contract and all
deductions, if any, required by law to be made from unpaid wages actually earned by the
laborers and mechanics so engaged.
b. Payroll Records. Each Consultant and subcontractor shall keep an accurate
payroll record, showing the name, address, social security number, work week, and the
actual per diem wages paid to each journeyman, apprentice, worker, or other employee
employed by the Consultant in connection with the public work. Such records shall be
certified and submitted weekly as required by Labor Code Section 1776.”
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole
cost and expense, provide all facilities and equipment that may be necessary to perform the services
required by this Agreement. City shall make available to Consultant only the facilities and equipment listed
in this section, and only under the terms and conditions set forth herein.
City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be
reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and
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the information in possession of the City. The location, quantity, and time of fur nishing those facilities shall
be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve
incurring any direct expense, including but not limited to computer, long -distance telephone or other
communication charges, vehicles, and reproduction facilities.
Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement,
Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and
amounts of insurance listed below against claims for injuries to persons or damages to property that may
arise from or in connection with the performance of the work hereunder by the Consultant and its agents,
representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall
provide Certificates of Insurance, attached hereto and incorporated herein as Exhibit C, indicating that
Consultant has obtained or currently maintains insurance that meets the requirements of this section and
under forms of insurance satisfactory, in all respects, to the City. Consultant shall maintain the insurance
policies required by this section throughout the term of this Agreement. The cost of such insurance shall be
included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any
subcontract until Consultant has obtained all insurance required herein for the subcontractor(s).
4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain
Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any
and all persons employed directly or indirectly by Consultant. The Statutory Workers’
Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of
not less than ONE MILLION DOLLARS ($1,000,000) per accident. In the alternative,
Consultant may rely on a self-insurance program to meet those requirements, but only if
the program of self-insurance complies fully with the provisions of the California Labor
Code. Determination of whether a self-insurance program meets the standards of the
Labor Code shall be solely in the discretion of the Contract Administrator (as defined in
Section 10.9). The insurer, if insurance is provided, or the Consultant, if a program of self-
insurance is provided, shall waive all rights of subrogation against the City and its officers,
officials, employees, and volunteers for loss arising from work performed under this
Agreement.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain
commercial general and automobile liability insurance for the term of this
Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00)
per occurrence, combined single limit coverage for risks associated with the work
contemplated by this Agreement. If a Commercial General Liability Insurance or an
Automobile Liability form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be
performed under this Agreement or the general aggregate limit shall be at least
twice the required occurrence limit. Such coverage shall include but shall not be
limited to, protection against claims arising from bodily and personal injury,
including death resulting there from, and damage to property resulting from
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activities contemplated under this Agreement, including the use of owned and non -
owned automobiles.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as
broad as Insurance Services Office Commercial General Liability occurrence form
CG 0001 or GL 0002 (most recent editions) covering comprehensive General
Liability and Insurance Services Office form number GL 0404 covering Broad
Form Comprehensive General Liability. Automobile coverage shall be at least as
broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90)
Code 8 and 9. No endorsement shall be attached limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the
insurance coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and not
on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy
shall not affect coverage provided to City and its officers, employees,
agents, and volunteers.
4.3 Professional Liability Insurance.
4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain
for the period covered by this Agreement professional liability insurance for
licensed professionals performing work pursuant to this Agreement in an amount
not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed
professionals’ errors and omissions. Any deductible or self -insured retention shall
not exceed ONE HUNDRED FIFTY THOUSAND DOLLARS $150,000 per claim.
4.3.2 Claims-made limitations. The following provisions shall apply if the professional
liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the
date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be
provided for at least five (5) years after completion of the Agreement or
the work, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another
claims-made policy form with a retroactive date that precedes the date of
this Agreement, Consultant must provide extended reporting coverage for
a minimum of five (5) years after completion of the Agreement or the work.
The City shall have the right to exercise, at the Consultant’s sole cost and
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expense, any extended reporting provisions of the policy, if the Consultant
cancels or does not renew the coverage.
d. A copy of the claim reporting requirements must be submitted to the City
prior to the commencement of any work under this Agreement.
4.4 All Policies Requirements.
4.4.1 Acceptability of insurers. All insurance required by this section is to be placed
with insurers with a Bests' rating of no less than A:VII.
4.4.2 Verification of coverage. Prior to beginning any work under this Agreement,
Consultant shall furnish City with complete copies of all policies delivered to
Consultant by the insurer, including complete copies of all endorsements attached
to those policies. All copies of policies and certified endorsements shall show the
signature of a person authorized by that insurer to bind coverage on its behalf. If
the City does not receive the required insurance documents prior to the Consultant
beginning work, it shall not waive the Consultant’s obligation to provide them. The
City reserves the right to require complete copies of all required insurance policies
at any time.
4.4.3 Notice of Reduction in or Cancellation of Coverage. A certified endorsement
shall be attached to all insurance obtained pursuant to this Agreement stating that
coverage shall not be suspended, voided, canceled by either party, or reduced in
coverage or in limits, except after thirty (30) days' prior written notice by certified
mail, return receipt requested, has been given to the City. In the event that any
coverage required by this section is reduced, limited, cancelled, or materially
affected in any other manner, Consultant shall provide written notice to City at
Consultant’s earliest possible opportunity and in no case later than ten (10)
working days after Consultant is notified of the change in coverage.
4.4.4 Additional insured; primary insurance. City and its officers, employees, agents,
and volunteers shall be covered as additional insureds with respect to each of the
following: liability arising out of activities performed by or on beh alf of Consultant,
including the insured’s general supervision of Consultant; products and completed
operations of Consultant, as applicable; premises owned, occupied, or used by
Consultant; and automobiles owned, leased, or used by the Consultant in the
course of providing services pursuant to this Agreement. The coverage shall
contain no special limitations on the scope of protection afforded to City or its
officers, employees, agents, or volunteers.
A certified endorsement must be attached to all policies stating that coverage is
primary insurance with respect to the City and its officers, officials, employees and
volunteers, and that no insurance or self-insurance maintained by the City shall be
called upon to contribute to a loss under the coverage.
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4.4.5 Deductibles and Self-Insured Retentions. Consultant shall disclose to and
obtain the approval of City for the self-insured retentions and deductibles before
beginning any of the services or work called for by any term of this Agreement.
Further, if the Consultant’s insurance policy includes a self-insured retention that
must be paid by a named insured as a precondition of the insurer’s liability, or
which has the effect of providing that payments of the self-insured retention by
others, including additional insureds or insurers do not serve to satisfy the self-
insured retention, such provisions must be modified by special endorsement so as
to not apply to the additional insured coverage required by this agreement so as to
not prevent any of the parties to this agreement from satisfying or paying the self-
insured retention required to be paid as a precondition to the insurer’s liability.
Additionally, the certificates of insurance must note whether the policy does or
does not include any self-insured retention and also must disclose the deductible.
During the period covered by this Agreement, only upon the prior express written
authorization of Contract Administrator, Consultant may increase such deductibles
or self-insured retentions with respect to City, its officers, employees, agents, and
volunteers. The Contract Administrator may condition approval of an increase in
deductible or self-insured retention levels with a requirement that Consultant
procure a bond, guaranteeing payment of losses and related investigations, claim
administration, and defense expenses that is satisfactory in all respects to each of
them.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its
policies or shall furnish separate certificates and certified endorsements for each
subcontractor. All coverages for subcontractors shall be subject to all of the
requirements stated herein.
4.4.7 Wasting Policy. No insurance policy required by Section 4 shall include a
“wasting” policy limit.
4.4.8 Variation. The City may approve a variation in the foregoing insurance
requirements, upon a determination that the coverage, scope, limits, and forms of
such insurance are either not commercially available, or that the City’s interests
are otherwise fully protected.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide
or maintain any insurance policies or policy endorsements to the extent and within the time
herein required, City may, at its sole option exercise any of the following remedies, which
are alternatives to other remedies City may have and are not the exclusive remedy for
Consultant’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such
insurance from any sums due under the Agreement;
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b. Order Consultant to stop work under this Agreement or withhold any payment that
becomes due to Consultant hereunder, or both stop work and withhold any payment,
until Consultant demonstrates compliance with the requirements hereof; and /or
c. Terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES. To the fullest extent
permitted by law, Consultant shall indemnify, defend with counsel selected by the City, and hold harmless
the City and its officials, officers, employees, agents, and volunteers from and against any and all losses,
liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily
injury, loss of life, or damage to property, or any violation of any fe deral, state, or municipal law or
ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions
of Consultant or its employees, subcontractors, or agents, by acts for which they could be held strictly
liable, or by the quality or character of their work. The foregoing obligation of Consultant shall not apply
when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the gross
negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the
actions of Consultant or its employees, subcontractor, or agents have contributed in no part to the injury,
loss of life, damage to property, or violation of law. It is understood that the duty of Consultant to indemnify
and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.
Acceptance by City of insurance certificates and endorsements required under this Agreement does not
relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification
and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance
policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges
and agrees to the provisions of this Section and that it is a material element of consideration.
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services
under this Agreement is determined by a court of competent jurisdiction or the California Public Employees
Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall
indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions
for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the
payment of any penalties and interest on such contributions, which would otherwise be the responsibility of
City.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall
be an independent contractor and shall not be an employee of City. City shall have the
right to control Consultant only insofar as the results of Consultant's services rendered
pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3;
however, otherwise City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to this Agreement. Notwithstanding any other
City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant
and any of its employees, agents, and subcontractors providing services under this
Agreement shall not qualify for or become entitled to, and hereby agree to waive any and
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all claims to, any compensation, benefit, or any incident of employment by City, including
but not limited to eligibility to enroll in the California Public Employees Retirement System
(PERS) as an employee of City and entitlement to any contribution to be paid by City for
employer contributions and/or employee contributions for PERS benefits.
6.2 Consultant No Agent. Except as City may specify in writing, Consultant shall have no
authority, express or implied, to act on behalf of City in any capacity whatsoever as an
agent or to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with
all laws applicable to the performance of the work hereunder.
7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by
fiscal assistance from another governmental entity, Consultant and any subcontractors
shall comply with all applicable rules and regulations to which City is bound by the terms of
such fiscal assistance program.
7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and
its employees, agents, and any subcontractors have all licenses, permits, qualifications,
and approvals, including from City, of what-so-ever nature that are legally required to
practice their respective professions. Consultant represents and warrants to City that
Consultant and its employees, agents, any subcontractors shall, at their sole cost and
expense, keep in effect at all times during the term of this Agreement any licenses,
permits, and approvals that are legally required to practice their respective professions. In
addition to the foregoing, Consultant and any subcontractors shall obtain and maintain
during the term of this Agreement valid Business Licenses from City.
7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the
basis of a person’s race, religion, color, national origin, age, physical or mental handicap or
disability, medical condition, marital status, sex, or sexual orientation, against any
employee, applicant for employment, subcontractor, bidder for a subcontract, or participant
in, recipient of, or applicant for any services or programs provided by Consultant under this
Agreement. Consultant shall comply with all applicable federal, state, and local laws,
policies, rules, and requirements related to equal opportunity and nondiscrimination in
employment, contracting, and the provision of any services that are the subject of this
Agreement, including but not limited to the satisfaction of any positive obligations requi red
of Consultant thereby.
Consultant shall include the provisions of this Subsection in any subcontract approved by
the Contract Administrator or this Agreement.
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Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may cancel this Agreement at any time and without cause upon written
notification to Consultant.
Consultant may cancel this Agreement for cause upon 30 days’ written notice to City and
shall include in such notice the reasons for cancellation.
In the event of termination, Consultant shall be entitled to compensation for services
performed to the date of notice of termination; City, however, may condition payment of
such compensation upon Consultant delivering to City all materials described in Section
9.1.
8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this
Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a
written amendment to this Agreement, as provided for herein. Consultant understands and
agrees that, if City grants such an extension, City shall have no obligation to provide
Consultant with compensation beyond the maximum amount provided for in this
Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no
obligation to reimburse Consultant for any otherwise reimbursable expenses incurred
during the extension period.
8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the
parties.
8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this
Agreement contemplates personal performance by Consultant and is based upon a
determination of Consultant’s unique personal competence, experience, and specialized
personal knowledge. Moreover, a substantial inducement to City for entering into this
Agreement was and is the professional reputation and competence of Consultant.
Consultant may not assign this Agreement or any interest therein without the prior written
approval of the Contract Administrator. Consultant shall not assign or subcontract any
portion of the performance contemplated and provided for herein, other than to the
subcontractors noted in the proposal, without prior written approval of the Contract
Administrator.
8.5 Survival. All obligations arising prior to the termination of this Agreement and all
provisions of this Agreement allocating liability between City and Consultant shall survive
the termination of this Agreement.
8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms
of this Agreement, City’s remedies shall include, but not be limited to, the following:
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8.6.1 Immediately terminate the Agreement;
8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any
other work product prepared by Consultant pursuant to this Agreement;
8.6.3 Retain a different consultant to complete the work described in Exhibit A not
finished by Consultant; or
8.6.4 Charge Consultant the difference between the cost to complete the work
described in Exhibit A that is unfinished at the time of breach and the amount that
City would have paid Consultant pursuant to Section 2 if Consultant had
completed the work.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps,
models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications,
records, files, or any other documents or materials, in electronic or any other form, that
Consultant prepares or obtains pursuant to this Agreement and that relate to the matters
covered hereunder shall be the property of the City. Consultant hereby agrees to deliver
those documents to the City upon termination of the Agreement. It is understood and
agreed that the documents and other materials, including but not limited to those described
above, prepared pursuant to this Agreement are prepared specifically for the City and are
not necessarily suitable for any future or other use. City and Consultant agree that, until
final approval by City, all data, plans, specifications, reports and other documents are
confidential and will not be released to third parties without prior written consent of both
parties unless required by law.
9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books
of account, invoices, vouchers, canceled checks, and other records or documents
evidencing or relating to charges for services or expenditures and disbursements charged
to the City under this Agreement for a minimum of t hree (3) years, or for any longer period
required by law, from the date of final payment to the Consultant to this Agreement.
9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this
Agreement requires Consultant to maintain shall be made available for inspection, audit,
and/or copying at any time during regular business hours, upon oral or written request of
the City. Under California Government Code Section 8546.7, if the amount of public funds
expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the
Agreement shall be subject to the examination and audit of the State Auditor, at the
request of City or as part of any audit of the City, for a period of three (3) years after final
payment under the Agreement.
9.4 Records Submitted in Response to an Invitation to Bid or Request for Proposals. All
responses to a Request for Proposals (RFP) or invitation to bid issued by the City become
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the exclusive property of the City. At such time as the City selects a bid, all proposals
received become a matter of public record, and shall be regarded as public records, with
the exception of those elements in each proposal that are defined by Consultant and
plainly marked as “Confidential,” "Business Secret" or “Trade Secret."
The City shall not be liable or in any way responsible for the disclosure of any such
proposal or portions thereof, if Consultant has not plainly marked it as a "Trade Secret" or
"Business Secret," or if disclosure is required under the Public Records Act.
Although the California Public Records Act recognizes that certain confidential trade secret
information may be protected from disclosure, the City may not be in a position to establish
that the information that a prospective bidder submits is a trade secret. If a request is
made for information marked "Trade Secret" or "Business Secret," and the requester takes
legal action seeking release of the materials it believes does not constitute trade secret
information, by submitting a proposal, Consultant agrees to indemnify, defend and hold
harmless the City, its agents and employees, from any judgment, fines, penalties, and
award of attorneys fees awarded against the City in favor of the party requesting the
information, and any and all costs connected with that defense. This obligation to
indemnify survives the City's award of the contract. Consultant agrees that this
indemnification survives as long as the trade secret information is in the City's possession,
which includes a minimum retention period for such documents.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including arbitration or an
action for declaratory relief, to enforce or interpret the provision of this Agreement, the
prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief
to which that party may be entitled. The court may set such fees in the same action or in a
separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this
Agreement, the parties agree that trial of such action shall be vested exclusively in the
state courts of California in the County San Mateo or in the United States District Court for
the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so
adjudged shall remain in full force and effect. The invalidity in whole or in part of any
provision of this Agreement shall not void or affect the validity of any other provision of this
Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this
Agreement does not constitute a waiver of any other breach of that term or any other term
of this Agreement.
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10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and shall apply to and bind the successors and assigns of the parties.
10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written
studies and other printed material on recycled paper to the extent it is available at equal or
less cost than virgin paper.
10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within
the corporate limits of City or whose business, regardless of location, would place
Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act,
codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the work performed pursuant to this
Agreement. No officer or employee of City shall have any financial interest in this
Agreement that would violate California Government Code Sections 1090 et seq.
Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)
months, an employee, agent, appointee, or official of the City. If Consultant was an
employee, agent, appointee, or official of the City in the previous twelve (12) months,
Consultant warrants that it did not participate in any manner in the forming of this
Agreement. Consultant understands that, if this Agreement is made in violation of
Government Code §1090 et.seq., the entire Agreement is void and Consultant will not be
entitled to any compensation for services performed pursuant to this Agreement, including
reimbursement of expenses, and Consultant will be required to reimburse the City for any
sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it
may be subject to criminal prosecution for a violation of Government Code § 1090 and, if
applicable, will be disqualified from holding public office in the State of California.
10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or
interview related to this Agreement, either orally or through any written materials.
10.9 Contract Administration. This Agreement shall be administered by Leah Lockhart,
Human Resources Director ("Contract Administrator"). All correspondence shall be
directed to or through the Contract Administrator or his or her designee.
10.10 Notices. All notices and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given (i) when
received if personally delivered; (ii) when received if transmitted by telecopy, if received
during normal business hours on a business day (or if not, the next busines s day after
delivery) provided that such facsimile is legible and that at the time such facsimile is sent
the sending Party receives written confirmation of receipt; (iii) if sent for next day delivery
to a domestic address by recognized overnight delivery service (e.g., Federal Express);
and (iv) upon receipt, if sent by certified or registered mail, return receipt requested. In
each case notice shall be sent to the respective Parties as follows:
539
Consulting Services Agreement between [Rev:11.14.2016] December 26, 2023
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Consultant:
Boucher Law, PC
Attn: Christopher Boucher
2081 Center Street
Berkeley, CA 94704
City:
City Clerk
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
10.11 Professional Seal. Where applicable in the determination of the contract administrator,
the first page of a technical report, first page of design specifications, and each page of
construction drawings shall be stamped/sealed and signed by the licensed professional
responsible for the report/design preparation. The stamp/seal shall be in a block entitled
"Seal and Signature of Registered Professional with report/design responsibility," as in the
following example.
Not Applicable
Seal and Signature of Registered Professional with
report/design responsibility.
10.12 Integration. This Agreement, including all Exhibits attached hereto, and incorporated
herein, represents the entire and integrated agreement between City and Consultant and
supersedes all prior negotiations, representations, or agreements, either written or oral
pertaining to the matters herein.
10.13 Counterparts. This Agreement may be executed in counterparts and/or by facsimile or
other electronic means, and when each Party has signed and delivered at least one such
counterpart, each counterpart shall be deemed an original, and, when taken together with
other signed counterpart, shall constitute one Agreement, which shall be binding upon and
effective as to all Parties.
10.14 Construction. The headings in this Agreement are for the purpose of reference only and
shall not limit or otherwise affect any of the terms of this Agreement. The parties have had
an equal opportunity to participate in the drafting of this Agreement; therefore any
construction as against the drafting party shall not apply to this Agreement.
The Parties have executed this Agreement as of the Effective Date.
540
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CITY OF SOUTH SAN FRANCISCO Consultants
____________________________ _____________________________________
City Manager NAME: Christopher Boucher
TITLE: President and Secretary
Attest:
_____________________________
City Clerk
Approved as to Form:
____________________________
City Attorney
2729962.1
541
EXHIBIT A
SCOPE OF SERVICES
Consultant shall provide labor relations consulting services to the City for successor MOU negotiations with
City bargaining units with agreements expiring on July 1, 2024. By mutual agreement, the term may be
extended to include City bargaining units with agreements expiring on July 1, 2025 . Negotiations shall
commence no later than February 14, 2024 with a target completion date no later than June 30, 2024
Consultant’s scope of work shall be as follows:
1. Strategize, advise, lead and represent the City as its chief labor negotiator in negotiations for assigned
units regarding a successor Memorandum of Understanding between the City and each unit’s
representative union.
2. Review existing MOU language and identify areas within the MOU that should be re -evaluated or
renegotiated in the interests of the City.
3. Lead meet and confer sessions with assigned units & consult on mandatory topics of bargaining and
impacts with city staff and/or unions.
4. Assist with drafting proposal language, perform necessary fact research, and assist in the formulation
and preparation of cost analysis.
5. Assist in the preparation of negotiation strategy; provide advice regarding industry best practices and
regional trends.
6. Consult with the City Manager, Assistant City Manager and Human Resources Director prior to and
following bargaining sessions to provide updates, and receive direction.
7. Review all materials submitted by unions and assist in the preparation on any responses to union
materials or questions.
8. Attend closed session meetings with City Council, the City Manager, and Human Resources Director to
provide debriefing on the status of contract negotiations and receive direction as needed.
9. As needed, advise the City on impasse procedures and represent the City in factfinding proceedings.
542
543
EXHIBIT B
COMPENSATION SCHEDULE
Hourly Rates
Consultant time for performance of work as described in Exhibit A shall be billed shall be billed to
the City on an hourly basis in increments of one-tenth of an hour as follows:
Attorney Staff……$425
Consultant Staff…$325
An Additional surcharge of $25 per hour shall apply for complex matters, including case
preparation, representation and attendance at litigation or administrative proc eedings (including
factfinding and PERB), court trials, arbitrations, administrative hearings, discovery hearings, media
inquiries and responses, and testifying at trials and hearings related to the scope of services
described in Exhibit A. Consultant shall notify the City in advance of commencing work that incurs
this surcharge.
Reimbursable Expenses
Reimbursable expenses shall be billed at cost, and shall include costs and expenses reasonably
incurred in the performance of duties as described in Exhibit A, including mileage expenses at the
rate allowed by the Internal Revenue Service; bridge tolls; parking, messenger and other delivery
fees, photocopying, and similar items. Photocopying and printing shall be charged at $0.15 per
page for black and white copies and $0.50 per page for color copies.
If applicable, additional reimbursable expenses related to litigation, administrative proceedings
(including factfinding and PERB), court trials, arbitrations, administrative hearings, discovery
hearings, media inquiries and responses, and testifying at trials and hearings shall be reimbursed
with advanced notice to the City prior to the expense being incurred. Such expenses may include,
but are not limited to, process servers’ fees, fees fixed by law or assessed by court or other
agencies, deposition costs, investigation expenses, expert witness fees and other similar items.
544
EXHIBIT C
INSURANCE CERTIFICATES
545
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-74 Agenda Date:1/24/2024
Version:1 Item #:12.
2024 City Council Committee Assignments.(James Coleman, Mayor)
City of South San Francisco Printed on 1/25/2024Page 1 of 1
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1/5/2024 1:07 PM
2024 CITY COUNCIL
COMMITTEE ASSIGNMENTS
STANDING SUBCOMMITTEES
Community Development Block Grant (CDBG) Nicolas and Coleman
Conference Center Authority Nicolas and Coleman
Nagales (A) and/or Flores (A)
Finance/Budget/Audit/Investment Coleman and Addiego
Harbor District Liaison Subcommittee Coleman and Flores
Homeless Outreach Team (HOT) Nicolas and Flores
Measure W Oversight Subcommittee Nagales and Flores
SSF School District Liaison Subcommittee Flores and Addiego
AD HOC COMMITTEES
Age Friendly Task Force Nicolas and Flores
Holiday Decorations Committee Nicolas and Flores
Housing and Planning Commission Committee Nagales, Addiego, (3) Planning TBD
Joint Advisory Committee of the Child Care Mater Plan (JACCCMP) Nicolas and Coleman
Naming Committee Addiego and Nicolas
Sister Cities Committee Addiego and Nicolas
Sports Fields Committee Nagales and Flores
Sustainability Committee Nicolas and Coleman
REGIONAL BOARDS / COMMITTEES
Airport/ANIP Addiego
Meets: as requested by Subcommittee
Airport Land Use Committee (ALUC) (Susy Kalkin) Nicolas
Meets Every 4th Thursday of every month
Time: 4:00 – 6:00 p.m.
Location: Burlingame City Council Chambers, 501 Primrose Rd.
America Supporting Americans (ASA) Nicolas
Joe Goethals, Board Member
joe@goethalslegal.com
www.asa-usa.org
Association of Bay Area Governments (ABAG) (Fred Castro) Nagales (appt by Council of Cities)
Meets every 3rd Thursday of every other month
Time: 5:00 p.m. Finance Committee; 7:00 p.m. – 9:00 p.m. Executive Board
Location: Bay Area Metro Center, Board Room CR-110B, 375 Beale St. SF)
Bay Conservation & Development Committee (BCDC) (Grace Gomez, Reyna) Addiego
Meets 1st & 3rd Thursday of every month
Time: 1:00 – 3:00 p.m.
Location: 375 Beale, Board Room 1st Floor, San Francisco; Bay Area Metro Ctr.
Bicycle and Pedestrian Advisory Committee (BPAC by C/CAG) (MCrume) Nicolas (appt by C/CAG)
Meets 4th Thursday of every month
Time: 7:00 – 8:30 p.m.
Caltrain Modernization (Cal Mod LPMG) (Devon Ryan) Addiego / Nagales (A)
Meets 4th Thursday of every month
Time: 5:30 - 7:30 p.m.
Location: 1250 San Carlos Ave., 2nd Floor, Edward J. Bacciocco Auditorium, San Carlos
(Meetings alternate between Caltrain hosting and HSR hosting)
City/County Association of Government (C/CAG) Board (Mima Crume) Flores / Nicolas (A)
Meets 2nd Thursday every month
Time: 6:30 – 9:00 p.m.
Location: 1250 San Carlos Ave., 2nd Floor, Edward J. Bacciocco Auditorium, San Carlos
547
2
Commute.org Board of Directors (Betsy Bautista or John Ford) Flores / Coleman (A)
Meets 3rd Thursday of EVEN months
Time: 8:00 – 9:30 a.m.
Location: 1300 S. El Camino Real Ste 100 San Mateo,
Silicon Valley Community Foundation Room 114
Countywide Oversight Board of Former Redevelopment Agencies (Sukhi Purewal) Addiego
https://controller.smcgov.org/countywide-oversight-board-former-redevelopment-agencies
Meets 2nd Monday of every month
Time: 9:00 a.m.
Location: 400 County Center, 1st Floor County Center, Board of Supervisors Chambers
Housing Endowment & Regional Trust (HEART) (appt via League) (Jen Rosas) Coleman
Meets 4th Wednesday of every month
Time: 3:00 – 4:30 p.m.
Location: 1300 S. El Camino Real, San Mateo Silicon Valley Conference Center
Housing Our People Effectively (HOPE) IAC (Tammie Sweetser) Coleman / Nicolas (A)
Meets 2nd Wednesday quarterly (Feb, May, Aug, Nov)
Time: 10:00 a.m. – 12:00 p.m.
Location: 400 Harbor Boulevard Belmont, Building B, Bali/Belize Room
League of California Cities-Peninsula Division Council Liaison (Megan Dunn) Nagales and Flores
Peninsula Clean Energy (PCE) Board (Nelly Wogberg) Coleman / Nicolas (A)
Meets 4th Thursday of every month
Time: 6:30 – 8:30 p.m.
Location: 2075 Woodside Road, Redwood City, CA 94061, Peninsula Clean Energy
San Mateo County Community Action Agency Board Flores
Meets QUARTERLY (Jan, Apr, July, Oct see Website for specific dates)
Time: 3:00 – 4:30 p.m.
Location: 1 Davis Drive, Belmont Human Services Agency
San Mateo County Home for All Steering Committee Coleman
Meets as needed
Time: 7:45 – 9:30 a.m.
Location: 264 Harbor, Building A San Mateo Department of Housing
SMC Pre-Hospital EMS Group (Margaret Stratton) Flores / Nagales (A)
Meets every 3rd Wednesday in January, May and September
Time: 6:30 – 8:00 p.m.
2022 – Virtual (when in-person, Belmont City Hall)
SMC – Emergency Services Council (Rosalinda Jen) Flores / Nicolas (A)
Meets 3rd Thursday Quarterly
Time: 5:30 – 7:00 p.m.
Location: 400 County Center, Board of Supervisors Chambers, Redwood City, CA
SMC Transportation Authority (SMCTA) (Jean Brook) Nagales
Meets 1st Thursday of the month
Time: 5:00 p.m.
Location: 1250 San Carlos Ave. 2nd floor, Edward J. Bacciocco Auditorium, San Carlos
(Appointed by SamTrans Board)
SFO Airport Community Round Table (Angela Montes) Nagales / Coleman (A)
Meets 1st Wednesday of EVEN months (Feb, Apr, June, Aug, Oct, Dec)
Time: 7:00 – 9:00 p.m.
Location: 450 Poplar Ave., Millbrae David Chetcuti Community Room
548
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-48 Agenda Date:1/24/2024
Version:1 Item #:13.
Conference with Legal Counsel - Existing Litigation
(Pursuant to Government Code Section 54956.9(d)(1))
Name of case: Keahi, Devin vs. City of South San Francisco (Worker’s Compensation Appeals Board Case
No. ADJ14518543)
(Sky Woodruff, City Attorney, Kyle Royer, RTGR Law, and Leah Lockhart, Human
Resources Director)
City of South San Francisco Printed on 1/25/2024Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:24-001 Agenda Date:1/24/2024
Version:1 Item #:14.
Conference with Real Property Negotiators
(Pursuant to Government Code Section 54956.8)
Properties:Parcels on Sign Hill,South San Francisco (APNs 012-351-020,012-351-030,012-024-060,012-
024-070, 012-024-080, 012-024-090, 012-024-100, 012-024-110, and 012-024-120)
Agency Negotiators:Nell Selander,Economic &Community Development Director;Greg Mediati,Parks and
Recreation Director; and Sky Woodruff, City Attorney
Negotiating parties: Syme Venture Partners LP
Under negotiation: Price and terms
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