Loading...
HomeMy WebLinkAbout2016-01-13 E-PACKET PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Council Chambers, 33 Arroyo Drive, South San Francisco, California. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. MARK ADDIEGO Mayor PRADEEP GUPTA Vice Mayor KARYL MATSUMOTO Councilwoman RICHARD A. GARBARINO Councilman LIZA NORMANDY Councilwoman FRANK RISSO City Treasurer KRISTA MARTINELLI City Clerk MIKE FUTRELL City Manager JASON ROSENBERG City Attorney PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the City Clerk’s Office located at City Hall. If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080. AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICES BUILDING COUNCIL CHAMBERS 33 ARROYO DRIVE SOUTH SAN FRANCISCO, CA WEDNESDAY, JANUARY 13, 2016 7:00 P.M. REGULAR CITY COUNCIL MEETING JANUARY 13, 2016 AGENDA PAGE 2 CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE AGENDA REVIEW PRESENTATIONS  Let's Move Cities, Towns, and Counties Five Gold Medal Award presented to the Mayor and City Council. (Kelli Jo Cullinan, Recreation Supervisor).  Presentation of New Employees. (Mich Mercado, Human Resources Manager). PUBLIC COMMENTS For those wishing to address the City Council on any Agenda or non-agendized item, please complete a Speaker Card located at the entrance to the Council Chamber’s and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. COUNCIL COMMENTS/REQUESTS CONSENT CALENDAR 1. Motion approving the Minutes of meetings of November 18, 2015, December 7, 2015, December 9, 2015, December 16, 2015 and January 6, 2016. 2. Motion confirming payment registers for January 13, 2016. 3. Resolution approving the Annual Impact Fee and Sewer Capacity Charge Report for Fiscal Year 2014-15 and making the required 5-year findings for Unexpended Funds for the Childcare Impact Fee and Traffic Impact Fee pursuant to the Mitigation Fee Act. (Richard Lee, Finance Director). REGULAR CITY COUNCIL MEETING JANUARY 13, 2016 AGENDA PAGE 3 4. Resolution authorizing the City Manager to execute Agreements with the State Board of Equalization for Implementation of a Local Transactions and Use Tax; and a Resolution authorizing the Examination of Sales or Transactions and Use Tax Records. (Richard Lee, Finance Director). 5. Resolution increasing the number of Bicycle and Pedestrian Advisory Committee (BPAC) members from seven (7) to nine (9) members. (Lawrence Henriquez, Associate Civil Engineer). 6. Motion to accept the Pump Station No. 4 Jib Crane Repair Project (Project No. ss1505) as complete in accordance with the plans and specifications (total construction cost $91,781.23). (Sam Bautista, Principal Engineer and Kathleen Phalen, Swinerton Management). 7. Resolution authorizing the acceptance of $9,000 in Grant Funding from Pacific Library Partnership to support a "Wearables for Wellness" Health Technology Collection at the Main Library and amending the Library Department's 2015-2016 Operating Budget. (Adam Elsholz, Interim Library Director). 8. Resolution amending the Salary Schedule for the Deputy City Clerk Job Classification in the Confidential Bargaining Unit effective January 13, 2016. (LaTanya Bellow, HR Director). 9. Resolution approving an Agreement with MuniServices, LLC for Transient Occupancy Tax and Commercial Parking Tax Audit Services in an amount not to exceed $58,500, authorizing the City Manager to execute said Agreement, and amending the Fiscal Year 2015-2016 Adopted Budget. (Richard Lee, Finance Director). ADMINISTRATIVE BUSINESS 10. Resolution amending an existing Consulting Services Agreement with Carollo Engineers for the Water Quality Control Plant (WQCP) Digester Design Project in an amount not to exceed $339,814. (Eric Evans, Associate Civil Engineer). 11. Resolution amending the FY 2015-2016 Public Works Operating Budget by $25,000 for Engineering Studies at the Oyster Point Marina and Park. (Brian McMinn, Public Works Director) ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS ADJOURNMENT RESOLUTION NO.____ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING THE ANNUAL IMPACT FEE AND SEWER CAPACITY CHARGE REPORT FOR FISCAL YEAR 2014-15 AND MAKING THE REQUIRED 5-YEAR FINDINGS FOR UNEXPENDED FUNDS FOR THE CHILDCARE IMPACT FEE AND TRAFFIC IMPACT FEE PURSUANT TO THE MITIGATION FEE ACT 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 5 years regarding unexpended impact fees and summarize those findings in the annual report(“Report”); and WHEREAS, the Report for Fiscal Year 2014-15 identifies unexpended impact fees for the Childcare Impact Fee and Traffic Impact Fee programs for which findings are required; and 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 2014-15, attached hereto and incorporated herein as Exhibit A, contains both the annual reporting information for the City’s development impact fee programs and the required 5-year findings for unexpended development impact fees for the Childcare Impact Fee and the Traffic Impact Fee and also contains 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 2014-15. 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 2014-15, attached hereto and incorporated herein as Exhibit A, as required by Government Code Sections 66006. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 9th day of December, 2015 by the following vote: AYES: ____________________________________________________________ NOES: _____________________________________________________________ ABSTAIN: _____________________________________________________________ ABSENT: _____________________________________________________________ ATTEST: _______________________________ City Clerk 2556530.1 1 Annual Impact Fee Report For the City of South San Francisco For Fiscal Year 2014/2015 This report contains information on the City of South San Francisco’s development impact fees for Fiscal Year 2014-15. This information is presented to comply with the annual reporting requirements contained in Government Code section 66000 et seq. Please note that this annual report is not a budge t document, but rather is compiled to meet reporting requirements. It is not intended to represent a full picture of currently planned projects as it only reports project information, revenues and expenditures for Fiscal Year 2014-15. In addition, this report contains the required 5-year findings for unexpended funds for the Childcare Impact Fee and the Traffic Impact Fee pursuant to Government Code section 66001. Government Code Section 66006 requires local agencies to submit annual and five-year reports detailing the status of development impact fees. The annual report must be made available to the public within 180 days after the last day of the fiscal year, and must be presented to the public agency (City Council) at least 15 days after it is made available to the public. This report summarizes the following annual reporting information for each of the development impact fee programs: 1. A brief description of the fee program. 2. Schedule of fees. 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 on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. 6. A description of each interfund transfer or loan along with the date the loan will be repaid and the rate of interest and a description of the public improvement on which the transferred or loaned fees will be expended. 7. The estimated date when projects will begin if sufficient revenues are available to construct the project. 8. The amount of refunds made to property owners. 2 9. Required 5-year Findings for the Childcare Impact and Traffic fee program. In addition, this report contains information on the City of South San Francisco’s sewer capacity charges. Government Code Section 66013 requires local agencies to submit annual reports detailing the status of sewer capacity charges. The annual report must be made available to the public 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 of moneys in the fund. 3. The amount of charges collected in that fiscal year. 4. An identification of all of 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 that 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 along with 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 transferred moneys are or will be expended. More detailed information on certain elements of the various fee programs is available through other documents such as nexus studies, master plans, capital improvement programs, and budgets. The City does not typically earmark impact fees for any specific project as the revenues are collected, but rather the revenues are applied toward a series of capital improvement projects as outlined in the nexus studies, such as a future sewer infrastructure, transportation infrastructure, and other capital facilities. 3 TABLE OF CONTENTS Page Citywide Impact Fee Program Childcare Impact Fee Fund (Fund 830) Overview and Required Findings...................................... 4 Financial Reporting........................................................... 6 Public Safety Impact Fee Fund (Fund 821) Overview and Required Findings...................................... 7 Financial Reporting........................................................... 8 Plan Area Impact Fee Programs Oyster Point Interchange Impact Fee Fund (Fund 840) Overview and Required Findings...................................... 9 Financial Reporting......................................................... 11 Traffic Impact Fee Fund (Fund 820) Overview and Required Findings.................................... 12 Financial Reporting......................................................... 14 Sewer Impact Fee Fund (Fund 810) Overview and Required Findings.................................... 15 Financial Reporting......................................................... 17 Other Reportable Citywide Charges Sewer Capacity Charge Fund (Fund 730) Overview and Required Findings.................................... 18 Financial Reporting......................................................... 19 Fee Schedules ............................................................................. 20 4 Childcare Impact Fee Program The nexus study for this citywide impact fee program was adopted by City Council in 2001. The study identified the need for new and expanded child care facilities in the City. Updates since 2001 to this fee program have included a periodic inflation adjustment. 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. The expected 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 such as the City’s General Fund, grants, developer contributions, and Community Development Block Grants. As of June 30, 2015, approximately $2.5 million in fees has been collected, $670,000 in interest earnings has been credited to the program, and $620,000 has been expended on projects and program administration fees. Required 5-Year Findings for Unexpended Funds/Annual Reporting Requirements: 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. The reasonable relationship between the childcare impact fee and the purpose for which it is charged is demonstrated in the South San Francisco Child Care Facilities Impact Fee Nexus Study dated September 2001 and adopted November 14, 2001. As of June 30, 2015, there continues to be a need for new childcare facilities due to the influx of new residents and additional employees from new developments. Currently, the City runs two licensed childcare facilities. There is a 4-year waiting list for space at these facilities; there are 640 children on the waiting list. The City estimates that there will be 5,000 new residents in the City within the next 5 years. The City reasonably anticipates that these new residents will require additional childcare services. 3. The sources and amounts of funding anticipated for completion of the future new and expanded childcare facilities are in the South San Francisco Child Care Facilities Impact Fee Nexus Study dated September 2001 and adopted November 14, 2001. As noted in the nexus study, the source of funding existing development’s share is a combination of the General Fund, grants, developer contributions, and Community Development Block Grants. 4. Four projects have been completed using Childcare Impact Fee Program funding. The approximate date for funding and constructing future facilities 5 will be determined, at the discretion of the City Council, when adequate additional funds for facility construction have accumulated. 5. The approximate $2.5 million of unexpended impact fee revenue will be used to fund projects to increase childcare spaces in the City. As stated above, as of November 24, 2015, there are 640 children on the waiting list for the City’s childcare programs. Community Care licensing requires 35 square feet of indoor space per child and 75 square feet of outdoor space per child. A fully equipped facility with kitchen and staff space for 100 children would require approximately 5,000 square feet of indoor space. Consequently, in light of the significant demand, the City requires additional funding/revenue in order to construct the necessary facilities. The City’s voters recently passed Measure W, which may provide funding for a new recreational facility within the City. The City is contemplating using a portion of the unexpended impact fee revenue to fund additional childcare facility space at the new recreational facility. Construction of other childcare facilities would require the expenditure of General Fund reserves, which are designated for any purpose at the discretion of the City Council. Thus, the approximate date for funding and construction of additional childcare facilities is dependent on the Council’s prioritization of these projects. The funding source of existing development’s share of these projects will be the City’s General Fund, less any grant funds and developer contributions received. 6. There are no potential refunds of Childcare Impact fees to property owners. 7. There were not any interfund transfers or loans 6 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, 2014 $ 1,995,688 Additions Childcare impact fees collected $ 477,806 Interest earned 18,701 Total additions 496,507 Disbursements % Fee Funded City administration 2,500 100% Projects 0 Total disbursements (2,500) Remaining balance as of June 30, 2015 $ 2,489,695 Planned projects for Fiscal Year 2015/16 % Fee Funded There are no planned projects for Fiscal Year 2015/16 0 Remaining balance after planned projects $ 2,489,695 7 Public Safety Impact Fee Program The nexus study for this citywide impact fee program was adopted by City Council 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. As of June 30, 2015, approximately $299,000 in fees have been collected, $2,000 in interest earnings have been credited to the program, and no money has yet been expended on projects or fee program administration. 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. See page 20 for the fee schedule outlining the amount of the fee; See page 8 for beginning and ending balance of the account for this fee and for the amount of fees collected and interest earned. 3. No projects have been completed using the Public Safety Impact Fee Program funding. The approximate date for funding and constructing future facilities and procuring future equipment will be determined when adequate additional funds have accumulated. 4. There were not any interfund transfers or loans 5. There are no potential refunds of Public Safety Impact Fees to property owners 8 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, 2014 $72,992 Additions Public Safety impact fees collected – Fire $ 159,747 Public Safety impact fees collected - Police 66,999 Interest earned 1,392 Total additions 228,138 Disbursements Projects 0 Total disbursements 0 Remaining balance as of June 30, 2015 $ 301,130 Planned projects for Fiscal Year 2015/16 % Fee Funded New Cardiac Monitors 97,280 25.6% Replace Safety Clothing 26,368 25.6% Total planned projects for Fiscal Year 2015/16 (123,648) Remaining balance after planned projects $ 177,482 9 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 monthly inflation adjustment. 2. June 26, 1996 fee program change via Resolution No. 102-96 that 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 c) 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 on-going. 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. The construction portion of the flyover and hook ramps is completed and funding through the fee program will continue through build-out of the plan area. As impact fees are collected, they will be used to pay back the Successor Agency to the Redevelopment Agency for the advance of $14.45 million. 3. See page 21 for the fee schedule outlining the amount of the fee; See page 11 for beginning and ending balance of the account for this fee and for the amount of fees collected and interest earned. 10 4. There are no potential refunds of Oyster Point Interchange Impact Fees to property owners. 5. The fund has one loan from the former Redevelopment Agency. The amount owed as of June 30, 2015 is approximately $11.4 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. Because the amount of future impact fee revenue is unknown, the repayment date is unknown. 11 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, 2014 $ 24,615 Additions Fees collected $ 352,410 Interest earned 1,182 Total additions 353,592 Disbursements % Fee Funded Projects 0 Repayment of RDA Loan 352,674 100% Total disbursements (352,674) Remaining balance as of June 30, 2015 $ 25,533 Planned Projects for Fiscal Year 2015/16 % Fee Funded U.S. 101 Off Ramp/Hook Ramps (st1013) 38,366 100% U.S. 101 Flyover to Oyster Point (st1014) 14,196 100% Total Planned Projects in Fiscal Year 2015/16 (52,562) Remaining Balance After Planned Projects (27,029) Loans to Oyster Point Interchange Fee Fund from Successor Agency to RDA Due Date and Interest Rate Balance, July 1, 2014 11,722,826 None & None Less payment during fiscal year (352,674) Balance, June 30, 2015 (11,370,152) Fees available (future fees required) for current and completed projects [1] $ (11,397,181) [1] Includes the Successor Agency loan of $11.4 million. 12 Traffic Impact Fee Program The 2001 nexus study for this plan area fee was adopted by 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. 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. As of June 30, 2015, approximately $12.0 million in fees have been collected, $2.0 million in interest earnings have been credited to the program, and $7.8 million has been expended on projects and fee program administration. Required 5-Year Findings for Unexpended Funds/Annual Reporting Requirements 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. The reasonable relationship between the traffic impact fee and the purpose for which it is charged is demonstrated in the Traffic Impact Fee Study Updated East of 101 Area. The fee study determined that 6,538 PM Peak Hour Trips would be generated by the growth in the East of 101 Area upon General Plan build-up. In order to mitigate the increase in PM Peak Hour trips, a list of traffic improvements was prepared. As of June 30, 2015, there continues to be a need for new Traffic Impact Fees due to further development east of Highway 101, including several large developments under construction or in the planning stages. 3. The sources and amounts of funding anticipated for completion of the future new and expanded roadway and intersection improvements are in the Traffic Impact Fee Study Updated East of 101 Area. 4. Of the 26 improvement projects listed in the nexus study, six are currently under construction. A traffic study, which will prioritize the construction of the new and expanded facilities listed in the nexus study is in progress. The projects currently underway are shown in the Fiscal Year 2014-15 Capital Improvement Program (CIP) budget. The remaining nexus study projects will be programmed in future years’ CIP budgets. Note that after the build-out of the east of Highway 101 area is completed, it is anticipated that traffic levels will be even higher than was projected in the 2007 study, and that additional projects will be needed to mitigate the increased traffic. 13 5. Of the approximate $5.9 million of unexpended traffic impact fee revenue, $3.7 million is budgeted to be expended on projects in Fiscal Year 2015-16 (see table on page 14). The remaining $2.2 million will be used to fund projects in subsequent years, such as the design of projects listed in the original and updated fee studies. The approximate date of funding to complete financing of projects identified in the nexus study and the traffic fee study updates is unknown, as the sole source of funding is the traffic impact fee, which is dependent on the implementation of new developments. Based on the findings in the nexus study, new development is responsible for 100% of the cost. 6. There are no potential refunds of Traffic Impact Fees to property owners. 7. There were not any interfund transfers or loans. 14 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. Beginning balance, July 1, 2014 $ 6,795,927 Additions Fees collected $ 1,411,851 Interest earned 50,753 Total additions 1,462,604 Disbursements % Fee Funded City administration 2,500 100% South Airport Blvd/Utah Ave (TIF #20 & tr1010) 1,407,510 100% Traffic Impact Fee Study (tr1013) 15,196 Grand/East Grand (TIF #26 & tr1103) 19,189 100% Oyster Point Blvd/Route 101 Northbound On-Ramp (TIF #35 & tr1105) 527,685 100% 101 Northbound Off-Ramp to E Grant/Executive (TIF #38 & tr1107) 340,152 100% US-101 Produce Avenue Interchange (TIF #39 & tr1404) 1,449 0.6% Total disbursements (2,313,681) Remaining Balance as of June 30, 2015 $ 5,944,850 Planned Projects for Fiscal Year 2015/16 % Fee Funded South Airport Blvd/Utah Ave (TIF #20 & tr1010) 541,642 100% Traffic Impact Fee Study (tr1013) 116,458 100% Grand/East Grand (TIF #26 & tr1103) 298,522 100% Oyster Point Blvd/Route 101 Northbound On-Ramp (TIF #35 & tr1105) 1,256,346 100% Airport Blvd/Miller Ave (TIF #12 & tr1102) 5,772 100% Airport Blvd/Grand Ave (TIF #13 & tr1104) 7,289 101 Northbound Off-Ramp to E Grant/Executive (TIF #38 & tr1107) 68,907 100% Gateway/E. Grand Traffic Improvements (tr1004) 203,986 100% US-101 Produce Avenue Interchange (TIF #39 & tr1404) 9,788 5% E. Grand, Gateway & Forbes Intersection (tr1602) 600,000 100% Oyster Pt., Gateway & Veterans Intersection (tr1603) 600,000 100% Total planned projects for Fiscal Year 2015/16 (3,708,710) Remaining balance after planned projects $ 2,236,140 15 Sewer Impact Fee Program The 2002 nexus study for this plan area fee was adopted by 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. 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. As of June 30, 2015, approximately $7.6 million in fees (including a prepayment from a large bio-technology firm) has been collected, $400,000 in interest earnings has been credited to the program, and $6.1 million has been expended on projects and fee program administration. 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. See page 21 for the fee schedule outlining the amount of the fee; See page 17 for beginning and ending balance of the account for this fee and for the amount of fees collected and interest earned. 3. Six of the eleven projects listed in the nexus study to be funded fully or partially from sewer impact fees have been started and four of those are completed. The projects currently underway are shown in the Fiscal Year 2015-16 CIP budget. The remaining nexus study projects will be programmed in future years’ CIP budgets. 4. As of June 30, 2015, the Sewer Impact Fee Program does not have any unexpended funds. The fund balance at end of Fiscal Year 2014-15 is approximately negative $40,000 (the fund has $1.93 million in cash balance, which includes $1.97 million in prepaid/unearned fee revenue). 16 5. There are no potential refunds of Sewer Impact Fees to property owners. 17 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, 2014 $ 1,474,649 Additions Fees collected $ 459,624 Interest earned 12,837 Net Fee Credit Permits 0 Total additions 472,461 Disbursements % Fee Funded City administration 2,500 100% Littlefield Ave. (So) Subtrunk Repair/Upgrade (ss1023) 16,191 Total Disbursements (18,691) Remaining balance as of June 30, 2015 $ 1,928,419 Planned Projects for Fiscal Year 2015/16 % Fee Funded Littlefield Ave. (So) Subtrunk Repair/Upgrade (ss1023) 46,817 80% Total Planned Projects in Fiscal Year 2015/16 (46,817) Remaining Balance After Planned Projects 1,881,602 Loans to Sewer Impact Fee Fund Due Date and Interest Rate Developer Prepayment for East Grand Avenue Subtrunk project (ss1014) [1] (1,969,879) None & Pooled City Rate Fees available (future fees required) for current and completed projects [2] $ (88,277) [1] The developer prepaid the sewer impact fees to allow for earlier construction of project ss1014 and receives credit against future sewer impact fee obligations. [2] Includes the $2.0 million developer prepayment. 18 Sewer Capacity Charge Program The original analysis was adopted by 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 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. The estimated capital investment (cost less depreciation) of the collection and treatment facilities was included in the analysis and totaled $161.2 million in 2009 dollars ($63.5 million from the 2000 analysis). The analysis identified the capacity charge as a cost recovery charge associated with providing collection and treatment capacity to new development, both through the existing infrastructure provided, and through future capital projects not funded by the Sewer Impact Fee Program located East of 101. Existing development’s share of the benefit of these facilities is funded from sewer charges appearing on property tax bills as a direct levy. As of June 30, 2015, approximately $1.4 million in sewer capacity charge revenues has been collected and $36,000 in interest earnings has been credited to the program since the July 2010 update became effective. During this timeframe, approximately $1.2 million has been expended on projects and program administration. Annual Reporting Information: 1. The sewer capacity charges do not exceed the estimated reasonable costs of providing the facilities for which the fee is charged (see § 66013, subd. (a)). 2. The sewer capacity charges 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 § 66013, subds. (c) and (d)). Since the update for the sewer capacity charges went into effect in Fiscal Year 2010- 11, $1.2 million of collected sewer capacity charges has been spent on Water Quality Control Plant upgrades. 3. There were not any interfund transfers or loans 19 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, 2014 $326,897 Charges collected $210,189 Interest earned $3,783 Total Additions $213,972 Disbursements % Charge Funded City Administration $2,500 100% Projects $ 0 Total Disbursements $2,500 Remaining Balance, June 30, 2015 $538,369 Planned Projects for Fiscal Year 2015/16 Amount % Charge Funded No projects are planned $0 Remaining Balance After Planned Projects $538,369 20 Fee Schedules for 2014-15 Childcare Impact Fee Rates for Fiscal Year 2014-15 Land Use per Unit or per Gross Sq. Ft. (GSF) Residential Low Density $1,979 per unit Medium Density $1,858 per unit High Density $1,851 per unit Other Residential $1.28 per GSF Commercial/Industrial Commercial / Retail $0.68 per GSF Hotel / Visitor Services $0.18 per GSF Office / R&D $0.57 per GSF Other Non-Residential $0.54 per GSF Public Safety Impact Fee Rates for Fiscal Year 2014-15 Land Use per Unit or per Square Foot (SF) Residential Low Density $1,285 per unit Medium Density $810 per unit High Density $563 per unit Commercial/Industrial Commercial / Retail $0.44 per SF Hotel / Visitor $0.42 per SF Office / R&D $0.44 per SF Industrial $0.18 per SF 21 Fee Schedules for 2014-15 Oyster Point Interchange Impact Fee Rates for Fiscal Year 2014-15 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 April is used to calculate annual increases. The CCI for April 2013 and 2014 were 10,373.34 and 10,894.84, respectively, resulting in a percentage increase of 5.0%. 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 48.00 Traffic Impact Fee Rates for Fiscal Year 2014-15 Area of Building x Land Use Fee where the Land Use Fee is: R&D = $5.48 per building sq. ft. Hotel = $1,275.04 per room Commercial = $22.70 per building sq. ft. Sewer Impact Fee Rates for Fiscal Year 2014-15 Gallons per area x area x $4.46. The generation rate for all land use is 400 gallons per day per 1,000 square feet of building area. 22 Sewer Capacity Charge for Fiscal Year 2014-15 The fee is updated each calendar year. For both calendar years 2014 and 2015, the fee was $3,944 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. 2564849.1 Staff Re ort DATE: TO: FROM: SUBJECT: January 13, 2016 Mayor, Vice Mayor and Councilmembers Richard Lee, Director of Financ" R( _ A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX; AND A RESOLUTION AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS. RECOMMENDATION It is recommended that the city council adopt a resolution authorizing the city Manager to execute agreements with the State Board of Equalization for implementation of a local Transactions and use Tax; and a resolution authorizing the examination of sales or transactions and use tax records. BACKGROI.JND/DISCUS SION In July 2015, the city council approved by unanimous vote to place a half-cent, 30-year local sales tax measure on the November 2015 ballot. South San Francisco residents approved the ballot measure by a margin of 60 to 40 percent. The State Board of Equalization (sBoE) requires the attached agreements to be executed and submitted by February 1,2016. The agreements authorize the SBOE to collect, administer and operate the Sales and Use Tax (District Tax) beginning April 1, 2016. The second resolution provides MuniServices, the City's sales tax consultant, with the authority to access data from the SBOE, which will ensure that they can continue to monitor, analyze and report on the District Tax. There are two major firms in Califomia that provide this service. MuniServices and HdL. CONCLUSION Approval of the first resolution will authorize the City Manager to execute agreements with the SBoE to collect, administer and operate the Sales and Use Tax approved by South San Francisco voters. Approval of the second resolution will authorize MuniServices to access District Tax data from the SBOE for monitoring and reporting purposes. StafrReport To: Mayor, Vice Mayor and Councilmembers Re: Resolution Authorizing City Manager to Execute Agreements with State Board of Equalization Date : January 11,2016 Page2 Richard Lee Director of Finance Mike City Manager Attachment: Resolution Authorizing the City Manager to Execute Agreements with the SBOE Resolution Authorizing the Examinatiqr of Sales or Transactions and Use Tax Records Agreement for State Administration oflCity Transactions and Use Taxes Agreement for Preparation to Adminiiter and Operate City's Transactions and Use Ta.x Ordinance RESOLUTION NO.____ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION TO COLLECT, ADMINISTER AND OPERATE A SALES OR TRANSACTION AND USE TAX AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENTS WHEREAS, on July 22 2015, the City Council of the City of South San Francisco (“City”) unanimously approved Resolution # 90-2015 to place a half-cent, 30-year local sales tax measure on the November 2015 ballot (“Measure W”); and WHEREAS, City residents approved Measure W by a margin of 60 percent; and WHEREAS, the transaction and use tax approved by Measure W will go into effect on April 1, 2016; and WHEREAS, in order to impose the tax, the State Board of Equalization requires the City to execute and submit certain agreements (“Agreements”), attached hereto as Exhibit A, by February 1, 2016; and WHEREAS, the City Council has has examined and approved such Agreements as to both form and content, and desires to enter into said Agreements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby approves the Agreements and authorizes the City Manager to execute the Agreements with the State Board of Equalization for and on behalf of the City of South San Francisco, and the Clerk of this City Council shall attest the City Manager’s signature thereto. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 13th day of January, 2016, by the following vote: AYES: ___________________________________________________________ _ NOES: _____________________________________________________________ ABSTAIN: _____________________________________________________________ ABSENT: _____________________________________________________________ ATTEST: _______________________________ City Clerk 2567591.1 -1- RESOLUTION NO.________ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPOINTING REPRESENTATIVES OF THE CITY AND AUTHORIZING SAID REPRESENTATIVES TO EXAMINE SALES AND TRANSACTIONS AND USE TAX RECORDS MAINTAINED BY THE STATE BOARD OF EQUALIZATION WHEREAS, pursuant to Ordinance No. _____________, the City of South San Francisco (“City”) entered into certain agreements (“Agreements”)with the State Board of Equalization (“Board”) to perform all functions incident to the administration and collection of local sales and transaction and use taxes imposed pursuant to a tax ballot measure passed in November of 2015 (“Measure W”); and WHEREAS, the City deems it necessary for authorized representatives of the City to examine confidential sales and transactions and use tax records of the Board pertaining to sales and transactions and use taxes collected by the Board for the City; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Board records and establishes criminal penalties for the unlawful disclosure of information contained in, or derived from sales or transactions and use tax records of the Board; and WHEREAS, Section 7056 of the California Revenue and Taxation Code requires that any person or entity designated by City to examine the Board’s records, other than an officer or employee of the City, shall have an existing contract to examine the City’s sales and transactions and use tax records. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby declares as follows and takes the following action: Section 1. The Finance Director or other officer or employee of City designated in writing by the Finance Director to the Board is hereby appointed to represent the City and has authority to examine all of the sales and transactions and use tax records of the Board pertaining to sales and transactions and use taxes collected for City by the Board pursuant to the Agreements between the City and the Board. The information obtained through examination of Board records shall be used for purposes related to the collection of City’s sales and transactions and use taxes by the Board pursuant to the Agreements. Section 2. The Finance Director, or other officer or employee of City designated in writing by the Finance Director to the Board, is also hereby appointed to represent City and has the authority to examine those sales and transactions and use tax records of the Board for purposes related to the following governmental functions of the City: a) tracking and economic development b) forecasting and budget related functions c) detection of misallocations and deficiencies -2- The information obtained through examination of Board records shall be used only for those governmental functions of City listed above. Section 3. MuniServices, LLC is hereby designated and authorized to examine all of the sales and transactions and use tax records of the Board pertaining to all sales and use taxes collected for City and any transaction and use taxes collected for City under the following Transactions and Use Tax Ordinances and any future Transactions and Use Tax Ordinances that may be enacted in the City: City of South San Francisco Measure W: A one-half cent local transaction and use tax in the City of South San Francisco; effective on 4/1/2016. The City Council finds that the person or entity designated by this section meets all of the following conditions: a) has an existing contract with City to examine sales and transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from those sales and transactions and use tax records only to an officer or employee authorized under Section 1 (or Section 2) of this resolution to examine the information; c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract; d) is prohibited by that contract from retaining the information contained in, or derived from those sales and transactions and use tax records after that contract has expired. BE IT FURTHER RESOLVED that the City Council hereby declares that the information obtained by examination of Board records shall be used only for purposes related to the collection of City’s sales and transactions and use taxes by the Board pursuant to the Agreements between City and the Board and for purposes relating to the governmental functions of City listed in Section 2 of this resolution. BE IT FURTHER RESOLVED that the City Council hereby declares that this resolution supersedes all prior sales and transactions and use tax resolutions of City adopted pursuant to subdivision (b) of Revenue and Taxation Code Section 7056. * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 13th day of January, 2016 by the following vote: AYES: ___________________________________________________________________ NOES: ___________________________________________________________________ ABSTAIN: ___________________________________________________________________ ABSENT: ___________________________________________________________________ ATTEST: _______________________________ City Clerk 2567853.1 AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of has adopted, and the voters of the City of (hereafter called “City” or “District”) have approved by the required majority vote, the City of Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the State Board of Equalization, (hereinafter called the “Board”) and the City do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: 1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. , as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. ARTICLE II ADMINISTRATION AND COLLECTION OF CITY TAXES A. Administration. The Board and City agree that the Board shall perform exclusively all functions incident to the administration and operation of the City Ordinance. (Rev. 11/15) 2 B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the State Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Board pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. 1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement. D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. (Rev. 11/15) 3 F. Security. The Board agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Board. G. Records of the Board. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records of the Board, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Board's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Board pursuant to this Agreement. H. Annexation. City agrees that the Board shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Board. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCATION OF TAX A. Allocation. In the administration of the Board's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: (Rev. 11/15) 4 1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Board, to all districts with which the Board has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. 2. All district taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Board in determining the place of use. ARTICLE IV COMPENSATION The City agrees to pay to the Board as the Board's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail. (Rev. 11/15) 5 Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization P.O. Box 942879 Sacramento, California 94279-0032 Attention: Supervisor, Local Revenue Allocation Unit Communications and notices to be sent to the City shall be addressed to: ______________________________________________________ ______________________________________________________ ______________________________________________________ Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on . This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Board completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice of Repeal of Ordinance. City shall give the Board written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. (Rev. 11/15) 6 ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. Impoundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid. 2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non- appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that: 1. Board may retain all payments made by City to Board to prepare to administer the City Ordinance. 2. City will pay to Board and allow Board to retain Board's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Board or to the State of California the amount of any taxes plus interest and penalties, if any, that Board or the State of California may be required to rebate or refund to taxpayers. (Rev. 11/15) 7 4. City will pay to Board its costs for rebating or refunding such taxes, interest, or penalties. Board's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Board's staff for use in making these rebates or refunds and any other costs incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Board's direct and indirect costs as specified by Section 11256 of the Government Code. 5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Board. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Board in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Board in connection with such refunds shall be billed by Board on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Board shall bill City on or before the 25th of each month for all costs incurred by Board for the preceding calendar month. City shall pay to Board the amount of such costs on or before the last day of the succeeding month and shall pay to Board the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Board costs incurred in making those refunds. CITY OF STATE BOARD OF EQUALIZATION By By (Signature) Lawrence Micheli, Supervisor Local Revenue Allocation Unit (Typed Name) (Title) 1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of ______________________________, hereinafter called City, and the STATE BOARD OF EQUALIZATION, hereinafter called Board, do agree as follows: 1. The Board agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Board at the times and in the amounts hereinafter specified all of the Board's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Board's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Board's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Board. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Board shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final. 5. Preparatory costs incurred by the Board shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The amount to be paid by City for the Board's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 2 7. Communications and notices may be sent by first class United States mail. Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization P.O. Box 942879 MIC: 27 Sacramento, California 94279-0027 Attention: Supervisor, Local Revenue Allocation Unit Communications and notices to be sent to City shall be addressed to: ________________________________________________ ________________________________________________ ________________________________________________ 8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Board has received all payments due from City under the terms of this agreement. CITY OF STATE BOARD OF EQUALIZATION By By (Signature) Lawrence Micheli, Supervisor Local Revenue Allocation Unit (Typed Name) (Title) (Rev. 11/15) Staff Report DATE: January 13, 2016 TO: Mayor, Vice Mayor and Councilmembers FROM: LaTanya Bellow, Human Resources Director SUBJECT: RESOLUTION AMENDING THE SALARY SCHEDULE FOR THE DEPUTY CITY CLERK JOB CLASSIFICATION IN THE CONFIDENTIAL BARGAINING UNIT EFFECTIVE JANUARY 13, 2016 RECOMMENDATION It is recommended that the City Council adopt a resolution amending the salary schedule, effective January 13, 2016, by modifying the salary range for the existing job classification of Deputy City Clerk in the Confidential bargaining unit. BACKGROUND/DISCUSSION Bryce Consulting studied the new job classification of the City Clerk Records Technician that was created in November 2015 and reviewed the organizational structure of the City Clerk’s Office including the Assistant City Clerk position. Bryce Consulting determined the Assistant City Clerk was performing work comparable to the newly established City Clerk Records Technician. Since the title of “Assistant City Clerk” is more commonly used for the City’s “Deputy City Clerk” job classification, the consultant recommended that the City abolish the Assistant City Clerk job classification and reclassify the incumbent Assistant City Clerk as a City Clerk Records Technician. The salary schedule of the City Clerk Records Technician is comparable to the salary schedule of the Deputy City Clerk. The Deputy performs higher level duties and will have managerial responsibility for the Technicians and, therefore, the salary should be higher. The consultant recommended that the Deputy City Clerk salary schedule be increased by 10% accordingly. DEPUTY CITY CLERK Hourly Rate 30.42 31.94 33.54 35.21 36.97 (Set internally at Tech + 10%) Monthly 5,272.37 5,535.99 5,812.79 6,103.43 6,408.60 CITY CLERK RECORDS TECHNICIAN Hourly Rate 27.65 29.03 30.49 32.01 33.61 Monthly 4,793.06 5,032.72 5,284.35 5,548.57 5,826.00 Staff Report Subject: RESOLUTION AMENDING THE SALARY SCHEDULE FOR THE DEPUTY CITY CLERK JOB CLASSIFICATION IN THE CONFIDENTIAL BARGAINING UNIT EFFECTIVE JANUARY 13, 2016 Page 2 of 2 A comprehensive classification and compensation study of the Deputy City Clerk is planned in conjunction with the mid-year budget review process. With the recent hiring of a new Deputy City Clerk, this study will be based upon the actual duties and responsibilities in the office. FUNDING The amended salary schedule for the existing Deputy City Clerk job classification will not impact the current fiscal year due to salary savings resulting from the Deputy City Clerk position having been vacant for the first six months of this fiscal year. CONCLUSION By approving a resolution amending the salary schedule for the Deputy City Clerk in the Confidential unit, the issue of salary compaction between job classifications can be alleviated. Prepared by: Approved by: LaTanya Bellow Human Resources Director Mike Futrell City Manager Attachments: Resolution Job Descriptions RESOLUTION NO. ____ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA RESOLUTION AMENDING THE SALARY SCHEDULE FOR THE DEPUTY CITY CLERK JOB CLASSIFICATION IN THE CONFIDENTIAL BARGAINING UNIT EFFECTIVE JANUARY 13, 2016, _________________ WHEREAS, the City desires to amend the salary schedule for the Deputy City Clerk job classification in the Confidential bargaining unit; and, WHEREAS, City staff recommends that the salary schedule for the Deputy City Clerk job classification be: DEPUTY CITY CLERK Hourly Rate 30.42 31.94 33.54 35.21 36.97 Monthly 5,272.37 5,535.99 5,812.79 6,103.43 6,408.60 WHEREAS, staff desires approval of the salary schedule for the Deputy City Clerk job classification; and, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby approves the salary schedule for the Deputy City Clerk job classification as follows: DEPUTY CITY CLERK Hourly Rate 30.42 31.94 33.54 35.21 36.97 Monthly 5,272.37 5,535.99 5,812.79 6,103.43 6,408.60 BE IT FURTHER RESOLVED, by the City Council that the above salary schedule for the Deputy City Clerk job classification be effective January 13, 2016, amending the salary schedule accordingly. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 13th day of January, 2016 by the following vote: * * * * * AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk StaffRe ort DATE: TO: FROM: SUBJECT: January 1 3, 2016 Mayor, Vice Mayor and Councilmembers Richard Lee, Director of Finance F? \- A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH MUNISERVICES, LLC FOR TRANSIENT OCCUPANCY TAX AND COMMERCTAL PARKING TAX AUDIT SERVICES IN AN AMOLJNT NOT TO EXCEED $58,500 AND AMENDING THE FISCAL YEAR 20I5-16 ADOPTED BUDGET RECOMMENDATION It is recommended that the city council adopt a resolution authorizing the city Manager to execute an agreement with MuniServices, LLC for Transient Occupancy Tax and Commercial Parking Tax audit services and amend the Fiscal Year 2015-16 Adopted Budget. BAC KGROLTND/DISC USSION South San Francisco Municipal Code (SSFMC) Section 4.20 authorizes the City to collect a tax of 107o on gross rents for the occupancy of rooms of a hotel, motel, inn, or other lodging facility known as a Transient occupancy Tax ("Tor"). SSFMC Section 4.22 authorizes the city to levy an 87o tax for the rent ofa parking space at parking stations in the city. The city cunently has thirty hotels and three parking facilities. In FY 2014-2015, Transient Occupancy Taxes collected totaled $12.9 million, while Commercial Parking Tax totaled $3.1 million. Transient occupancy and commercial parking Tax comprise 18.9% oltotal General Fund revenues. TOT and Parking Tax audit services were last performed by a Finance Department staff member as part ofa number of other duties. Given the length of time since the prior audits, expertise of independent firms and staff bandwidth constraints, a qualified consultant would be able to provide the most comprehensive and complete review and assessment of hotel and parking facility tar records. An announcement letter will be sent to all of the hotels and parking facilities located within the City in advance ofthe audit taking place. A Request for Proposals (RFP) lbr Tor and Parking Tax audit services was posted on August 17, Staff Report Subject: Transient Occupancy Tax and Parking Tax Audit Services Agreement Page 2 of 3   2015. The scope of services in the RFP provide for the consultant to review and evaluate the City’s motels, hotels and parking facilities compliance with SSFMC Section 4.20 and 4.22. The Request for Proposal specified the following criteria to be evaluated in selecting a vendor and weighed each value accordingly:  Qualifications and experience 35%  Responsiveness to RFP guidelines 25%  Quality of Proposed Methodology 25%  Cost 15% Among the six (6) proposals received, the City selected three (3) vendors to be interviewed. The three finalists, MuniServices, Davis Farr and LSL, were interviewed by a panel comprised of the following members: Richard Lee, Director of Finance Steven Lew, Senior Accountant Joe Martin, Senior Financial Analyst Dean Grubl, Executive Director, South San Francisco Conference Center The panel scored the finalist firms as follows: Transient Occupancy Tax Audit MuniServices, the City’s preferred vendor, has proposed a two-phase approach to complete their initial audit of the City’s lodging providers: • Phase 1: Analysis and Discovery – Includes an analysis of the previous 48 months of tax returns for all hotels filed with the City to identify any unusual or suspicious reporting that may warrant further review. • Phase 2: Compliance Review – Following the outcome of Phase 1, this phase involves an extensive review of the lodging provider’s records to verify accuracy. The fixed fee will be $650 per lodging property for Phase 1, and $950 per lodging property for Evaluation Criteria Points per  Evaluator* Possible  Points MuniServicesDavis FarrLSL Qualifications & Experience35140138129127 Responsiveness to RFP Guidelines 25100 98 88 91 Quality of Proposed Methodology 25100 95 100 88 Cost 1560 54 55 38 Total  Score 100400 385 372 344 *Four (4) evaluators Staff Report Subject: Transient Occupancy Tax and Parking Tax Audit Services Agreement Page 3 of 3 Phase 2. Based on MuniServices' experience, only about 30oh of the properties will be recommended for Phase 2 review. However, staff recommends that the agreement include a conservative estimate of an amount not to exceed $50,500 for TOT audit services (30 hotels x $1,600 for both phases). This amount includes out-of-pocket expenses will not exceed $2,500 without prior approval from the City. Commercial Parkine Tax Audit MuniServices believes it will take 50 hours to complete the Commercial Parking Tax audit. At a rate of $150 per hour, staff recommends that the agreement include an amount not to exceed $8,000. This includes an allowance of $500 for the cost of travel and other miscellaneous expenses. The rates above are valid through June 30, 2019 should subsequent audit services be requested. FLTNDING The Fiscal Year 2015-2016 Adopted Budget will be amended to reflect an increase in expenditures for professional services of $58,500, and an increase in revenue for Transient Occupancy Tax by the same amount, as staff estimates that unpaid taxes discovered as a result of the audit will yield revenue sufficient to cover the cost ofthe consultant fees. CONCLUSION Auditing Transient Occupancy Tax and Commercial Parking tax revenues from the City's hotels and parking facilities ensures compliance with the South San Francisco Municipal Code. "r) fK-/l/='--Approved:By: Richard Lee Director of Finance Attachment: Resolution Agreement with MuniServices ike Futrell RESOLUTION NO._____ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING AN AGREEMENT WITH MUNISERVICES, LLC FOR TRANSIENT OCCUPANCY TAX AND COMMERCIAL PARKING TAX AUDIT SERVICES IN AN AMOUNT NOT TO EXCEED $58,500, AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT, AND AMENDING THE FISCAL YEAR 2015-2016 ADOPTED BUDGET WHEREAS, the City of South San Francisco (“City”)published a Request for Proposals for Transient Occupancy Tax and Commercial Parking Tax Audit Services (“RFP”); and WHEREAS, seven vendors expressed interest, six submitted proposals, and ultimately, three vendors were interviewed; and WHEREAS, a panel comprised of City staff and South San Francisco Conference Center staff thoroughly staff thoroughly reviewed the six proposals received, interviewed three of the vendors and ultimately, determined that and determined that MuniServices, LLC (“MuniServices”) would best serve the City’s needs; and WHEREAS, both parties now wish to enter into an agreement, whereby MuniServices will provide Transient Occupancy Tax and Commercial Parking Tax audit services commencing January 14, 2016 until June 30, 2019 (“Agreement”) attached hereto as Exhibit A; and WHEREAS, staff recommends that the City Council amend the FY 2015-16 budget in an amount not to exceed $58,500 to fund said Agreement; 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 MuniServices, LLC substantially in the form attached hereto as Exhibit A. 2. Authorizes the City Manager to execute an Agreement with MuniServices, LLC, subject to approval as to form by the City Attorney, for and on behalf of the City of South San Francisco, and the Clerk of this City Council shall attest the City Manager’s signature thereto. 3. Amends the FY 2015-16 Adopted Budget in an amount not to exceed $58,500 to fund said Agreement. * * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 13th day of January, 2016, by the following vote: AYES: ___________________________________________________________ _ NOES: _____________________________________________________________ ABSTAIN: _____________________________________________________________ ABSENT: _____________________________________________________________ ATTEST: _______________________________ City Clerk 2567893.1 Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 1 of 15 CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND “CONSULTANT” THIS AGREEMENT for consulting services is made by and between the City of South San Francisco (“City”) and MuniServices, LLC (“Consultant”) (together sometimes referred to as the “Parties”) as of January 14, 2016 (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 June 30, 2019, 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 $58,500.00 (FIFTY-EIGHT THOUSAND, FIVE HUNDRED DOLLARS), 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, 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 specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 2 of 15 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. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 3 of 15 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 in Exhibit A. 2.6 Reimbursable Expenses. Reimbursable expenses are specified below, and shall not exceed $2,500 in relation to Transient Occupancy Tax audit services and $500 in relation to Commercial Parking Tax audit services. Expenses not listed below are not chargeable to City. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded. 2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. Contractor represents and warrants that Contractor is a resident of the State of California in accordance with California Revenue & Taxation Code Section 18662, as may be amended, and is exempt from withholding. Contractor accepts sole responsible for verifying the residency status of any subcontractors and will withhold taxes from non- California subcontractors as required by law. 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. 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. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 4 of 15 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 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 B, 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, and employees 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- Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 5 of 15 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, and agents. 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 Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 6 of 15 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 a certificate of insurance and endorsements evidencing the coverage required under this Agreement. 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. 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, and agents 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, or agents. Coverage shall be is primary insurance with respect to the City and its officers, officials, and employees, 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 Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 7 of 15 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, and agents. 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. Consultant shall indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, and agents 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, Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 8 of 15 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 or agents 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. 7.1 Governing Law. The laws of the State of California shall govern this Agreement. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 9 of 15 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. 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. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 10 of 15 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, which shall not be unreasonably withheld. 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 which shall not be unreasonably withheld. 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. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 11 of 15 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. Nothing in the foregoing shall require Consultant to assign or surrender whatever rights it may have in the general know how and skills it employs in the ordinary course of its business. 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. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 12 of 15 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. 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, Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 13 of 15 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 ______________ ("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: MuniServices, LLC Attn: Legal Department 7625 N Palm Ave Ste. 108 Fresno CA 93711 City: City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 14 of 15 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. 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 multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. 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. [Signatures on next page.] Seal and Signature of Registered Professional with report/design responsibility. Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 15 of 15 The Parties have executed this Agreement as of the Effective Date. CITY OF SOUTH SAN FRANCISCO CONSULTANT _____________________________ _______________________________ City Manager Doug Jensen SVP Client Services Attest: ________________________________ Krista Martinelli, City Clerk Approved as to Form: _______________________________ City Attorney Consulting Services Agreement between City of South San Francisco and MuniServices, LLC DATE Page 16 of 15 EXHIBIT A SCOPE OF SERVICES Consulting Services Agreement between City of South San Francisco and MuniServices, LLC-Exhibit B DATE Page 1 of 1 EXHIBIT B INSURANCE CERTIFICATES