Agenda packet — Daly City City Council, September 28, 2026

AVAILABILITY OF PUBLIC RECORDS:

All public record to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the City Clerk’s Office, City Hall located at 333 90th Street, Daly City, CA during normal business hours, at the same time that the public records are distributed or made available to the legislative body.

CITY OF DALY CITY
Regular Meeting - CITY COUNCIL
AGENDA
Monday, September 28, 2026 - 7:00 PM

City Hall Council Chambers – 2nd Floor
City Hall 333 – 90th Street
Daly City, CA 94015
To watch the live telecast:

Ch. 27 (Xfinity), https://www.youtube.com/@DalyCityGov/streams, or https://www.dalycity.org/agendas

PUBLIC PARTICIPATION
There are three ways to submit public comments: (1) submit written comments by meeting day, (2) submit written comments during the meeting, and (3) attend the meeting live.

1. To submit written comments by meeting day, please email [email protected] and include “Public Comment” in the subject line. All written comments received by 4:00 pm on meeting day will be provided to the City Council prior to the meeting.

Please note: Any emailed comments received after 4:00 p.m. on the meeting date are not guaranteed to be received by the City Council prior to the meeting. Comments are not read aloud into the record.

2. During the meeting, you may visit www.dalycity.org/agendas to submit comments using the Public Comment form to address the City Council on a specific item, or during the public comment period, and such comments are delivered to the City Council and City Staff during the meeting, and may be read into the record at the time they are received.

3. To speak at the meeting in person, please complete a Speaker Card located at the entrance to the Council Chamber and submit it to a Staff Member as early in the meeting as possible. To speak at the meeting remotely via Zoom, register at https://us06web.zoom.us/webinar/register/WN_JXA2xOd9Tj5s1loB1Ei4A.

Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting should call the office of the City Clerk at (650) 991-8078 as soon as possible.

PLEDGE TO THE FLAG:

CALL TO ORDER
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah-mytoosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.

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Agenda – City Council
Monday, September 28, 2026

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ROLL CALL:

PRESENTATIONS:

1. Proclamation: Sidney Anne Rasmussen Day in Daly City

2. Update on the Grand Boulevard Initiative Implementation Process: Nicholas Yee, Senior Transportation Planner

3. Inaugural Speaker Series of the Daly City Women's Commission - A Community Conversation on Domestic Violence
APPROVAL OF MINUTES:

4. Regular Meeting of September 14, 2026
APPROVAL OF AGENDA:

5. Regular Meeting of September 28, 2026
ORAL COMMENT:

NOTE: Speakers are limited to two minutes, unless modified by the Mayor.

The Council cannot take action on any matter raised under this item.

CONSENT AGENDA
All items listed on the Consent Agenda are considered to be routine and may be approved by one roll call vote of the City Council. There shall be no separate discussion of the matters on the Consent Agenda unless requested by a member of the City Council. If discussion is required, that item will be removed from the Consent Agenda and will be considered separately at the end of the Agenda.

Resolutions:

6. Adopt a Resolution Granting Consent to the City of Burlingame to Modify the San Francisco Peninsula Tourism Marketing District (SFPTMD) to Include the City of Daly City

7. Authorize the City Manager to Execute an Ownership, Operations, and Maintenance Agreement with the City/County Association of Governments of San Mateo County for the San Mateo County Smart Corridor Project

8. Approve Proposed Revision of Library Assistant III Job Specification (Civil Service)

9. Set Time and Place for Public Hearing on Proposed Substantial Amendment to FY26-27 HUD Action Plan (Set Time: 10/26/26)

10. Authorize the City Manager to Execute a Temporary License Agreement with Daly City Mitsubishi for the Vacant Property Located at Mission and Hillside

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Agenda – City Council
Monday, September 28, 2026

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Check Registers:

11. Check Registers for the Month of Aug 2026

END OF CONSENT AGENDA
PUBLIC HEARINGS:

12. Public Hearing to Introduce an Ordinance Amending Municipal Code Section 5.104.107 - Cannabis Equity Program Eligibility Criteria
STAFF: Maybelle Manio
RECOMMENDATION: Open/Close Hearing
Motion for City Attorney to Read by Title Only
Councilmember Introduce Ordinance
COMMUNICATIONS:

13. Resolution Regarding Compliance with and Continued Implementation of Resolution No. 25-150 Regarding the Censure of Councilmember Pamela DiGiovanni STAFF: Rose Zimmerman
RECOMMENDATION: Council Determination
AWARD OF BIDS/CONTRACTS:

14. Award of Bid to Golden State Construction & Utility, Inc. for the Callan Boulevard Water Main Replacement Project
STAFF: Joshua Cosgrove
RECOMMENDATION: Adopt Resolution by Roll Call Vote
ORDINANCES:

15. Second Reading, Ordinance No. 1493, Amending Chapter 17.47 of the Daly City Municipal Code Re: Inclusionary Housing
STAFF: Rose Zimmerman
RECOMMENDATION: Adopt Ordinance by Roll Call Vote

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Agenda – City Council
Monday, September 28, 2026

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16. Second Reading, Ordinance No. 1494, Amending Chapter 17 of the Daly City Municipal Code Re: Zoning Ordinance Updates
STAFF: Rose Zimmerman
RECOMMENDATION: Adopt Ordinance by Roll Call Vote
APPOINTMENTS: Board/Commission Membership Committee Appointments

17. Declaration of Vacancy
REPORTS:

18. Council Committee

19. City Council

20. Staff
ADJOURNMENT:

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Proclamation
Sidney Anne Rasmussen
WHEREAS, Sidney Anne Rasmussen was born in San Francisco on April 13, 1937, and raised in Daly City, where she has devoted nearly nine decades to serving, preserving, and strengthening the community she proudly calls home; and WHEREAS, as a student at Jefferson High School, Sidney demonstrated exceptional leadership by founding the school's Junior Statesmen of America chapter and made local history during Daly City's Student Takeover Day as the City's first official female "Mayor for a Day," inspiring future generations of young leaders; and WHEREAS, throughout her distinguished career as an educator, Sidney enriched the lives of countless students by introducing innovative programs, including a nationally recognized Marine Biology curriculum, arts enrichment initiatives, and creative history education, while fostering academic excellence and lifelong learning; and WHEREAS, Sidney's unwavering commitment to youth and athletics led to the founding of the Jefferson Alumni Boosters, the preservation of Jefferson High School athletic programs during a time of financial hardship, the establishment of the Jefferson Sports Hall of Fame, and decades of advocacy on behalf of Daly City's studentathletes; and WHEREAS, through her lifelong volunteerism, civic leadership, and dedication to preserving the rich history and traditions of Jefferson High School and Daly City, Sidney Anne Rasmussen has left an enduring legacy of service, education, community pride, and inspiration that continues to positively impact generations of residents.

NOW, THEREFORE, I, GLENN R. SYLVESTER, Mayor, and members of the City Council of the City of Daly City, do hereby proclaim September 28, 2026, as “Sidney Anne Rasmussen Day” in the City of Daly City. We encourage all residents to recognize and celebrate Sidney Anne Rasmussen's extraordinary lifetime of service, leadership, and dedication to education, youth development, civic engagement, and the preservation of our community's history.

Signed and sealed by the Mayor and City Council of
the City of Daly City this 28th day of September 2026.

Glenn R. Sylvester, Mayor

Teresa Proaño, Vice Mayor

Juslyn C. Manalo, Councilmember

Dr. Roderick Daus-Magbual, Councilmember

Pamela DiGiovanni, Councilmember

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
--------------------------------
Note on Public Comments:

To provide public comments, members of the public have the option to: 1) attend the meeting live, 2) email the City Clerk, or 3) submit comments through the public comment portal on the City’s website.

Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting are instructed to call the office of the City Clerk at 991-8078 prior to the meeting.

Visit https://www.youtube.com/@DalyCityGov/streams to view the City Council meeting CALL TO ORDER:

Mayor Sylvester called the regular meeting to order at 7:12 P.M. and read the City’s Land Acknowledgement:

The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah-my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.

ROLL CALL: Councilmembers Present
Glenn R. Sylvester, Mayor
Teresa G. Proaño, Vice Mayor
Dr. Roderick Daus-Magbual
Pamela DiGiovanni
Juslyn C. Manalo
Staff Present
Thomas J. Piccolotti, City Manager
Rose Zimmerman, City Attorney
K. Annette Hipona, City Clerk
It was moved by Mayor Sylvester, seconded by Councilmember Daus-Magbual and carried by voice vote to move Item #3, Public Employee Appointment, to the beginning of the agenda.

Public Employee Appointment
City Manager Thomas J. Piccolotti introduced Nick Gracia as the City’s ninth Fire Chief, following an extensive nationwide recruitment process. Chief Gracia thanked his family, the men and women of the Fire Department, the City Council, and City Management for their support. The City Council congratulated Chief Gracia, expressing confidence in his appointment and leadership. Mayor Sylvester called a brief recess at 7:47 P.M., reconvening the meeting at 8:09 P.M.

Staff Communications
Assistant City Manager Tim Nevin provided an update to the proposed Westlake Park field improvement project by the Olympic Club, outlining a timeline of key events. Following two community meetings hosted by the City in July, the Olympic Club requested the cancellation of the third community meeting, originally scheduled for August 13th. Subsequently, on September 4th, the Olympic Club withdrew from the Memorandum of Understanding (MOU) with the City.

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
2 PRESENTATIONS:

Proclamation: Chloe Chou, 2022–2023 Daly City Youth Poet Laureate and 2024 San Mateo County Poetry Out Loud Champion
(Chloe Chou)
Proclamation: Sepsis Awareness Month
(Dr. Theresa M. Mostasisa, Sepsis Alliance)
Proclamation: Suicide Prevention Month
(Luz Euceda, Youth Action Board Member, San Mateo County Behavioral Health Commission and Edith Cabuslay, Program Services Manager, San Mateo County Behavioral Health & Recovery Services) Proclamation: National Preparedness Month
(Claire Shum, Safety Inspector, North County Fire Authority) Proclamation: National Hispanic Heritage Month
APPROVAL OF MINUTES:

Regular Meeting of July 27, 2026
It was moved by Councilmember Manalo, seconded by Vice Mayor Proaño and carried to approve the minutes of July 27, 2026.

APPROVAL OF AGENDA:

Councilmember Manalo requested that Item #23 be considered before the rest of the agenda, which Mayor Sylvester approved. It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried by voice vote to approve the agenda, as amended.

PUBLIC HEARINGS:

Zone Change ZC-06-26-017088 – Amendments to Chapter 17.47 - Inclusionary Housing Establishing Preference to Persons Who Live or Work in Daly City for Income-Restricted Affordable Housing Units
Acting Director of Economic and Community Development Michael Van Lonkhuysen provided the staff report recommending amendments to the Inclusionary Housing Ordinance, noting that Councilmember Manalo, a long-time advocate of affordable housing, requested that staff amend the ordinance to implement a local preference policy for affordable units. Based on the results of the Disparate Impact Analysis (DIA), staff recommended applying the local preference policy to 70 percent of the affordable units in residential developments. Van Lonkhuysen addressed questions on which housing developments are affected by the amendment and planned housing developments in the City.

It was moved by Mayor Sylvester to open the public hearing.

Speakers from Faith In Action Bay Area (FIABA), including long-time residents of Daly City, expressed support for the proposed amendment to prioritize affordable housing units for those who live or work in Daly City. They emphasized the community’s need for more affordable, accessible, and dignified housing, particularly for low-income families and other vulnerable residents. They stated that prioritizing

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
3 local residents and workers would expand housing opportunities for people with strong ties to the community, help families remain in Daly City, and reduce the risk of displacement. Several speakers connected the amendment to the goal of ensuring that residents have access to safe, stable, and dignified homes. Speakers also highlighted the importance of strengthening tenant protections through the adoption of anti-harassment laws. They described such protections as necessary to prevent tenants from being mistreated or pressured out of their homes and connected the proposed amendment as an important small step toward establishing stronger tenant protections in Daly City. They noted that the anti-harassment legislation remains in process and urged the Council toward its adoption.

Tinzar Winn Sandro Bautista Wendy Cruz
Bismark Ramos Thelma Martinez Melissa Mejia
It was moved by Councilmember Manalo, seconded by Councilmember Daus-Magbual and carried to close the hearing.

Councilmember Manalo provided an update regarding the approval for the housing development located at 493 Eastmoor Avenue, which will include 71 affordable housing units with rents ranging from 20-50% of the area median income (AMI).

Van Lonkhuysen answered questions on whether the DIA addressed anti-harassment issues, clarifications on the proposed amendments, and the process for qualifying for affordable housing. City Attorney Rose Zimmerman clarified that establishing these preferences would not result in a disparate impact on any discrimination as it pertains to protected classes. She also noted that the ordinance currently includes an accessibility feature granting priority to individuals who require accessibility features, ahead of the preferences.

Mayor Sylvester requested a copy of the DIA in order to move forward. Mayor Sylvester and Councilmember DiGiovanni requested assurances that the proposed ordinance would comply with federal law.

It was moved by Councilmember Manalo, and seconded by Councilmember Daus-Magbual and carried by unanimous roll call vote for the City Attorney to read the ordinance by title only.

Councilmember Manalo introduced the ordinance.

Ordinance 1493, Amending Chapter 17.47 Regarding Inclusionary Housing ORAL COMMENT:

The following residents of Daly City thanked Councilmembers for attending the town halls and listening to residents’ concerns regarding the Westlake Park proposal; some speakers also recognized the City’s efforts at Thornton Beach. Several commenters acknowledged the cancellation of the proposed MOU with the Olympic Club and hoped for continued community input on the future of Westlake Park. Speakers highlighted the strength and unity of the Westlake community as a result of the town halls, and individuals expressed their interest in volunteering and collaborating with the City. Residents proposed revitalizing Westlake Park through community gardens, improved facilities, and other cost-effective, accessible, and sustainable improvements. Individuals encouraged the City to invest in the creation and maintenance of public parks, libraries, and recreation centers while recognizing Recreation staff for their programs.

Alexandra Theodotou also expressed opposition to the City’s Flock and/or Axon camera contracts, expressing concern that constant surveillance creates paranoia, stress, isolation, and reactionary behavior.

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
4 Emily Stoops Andrew Selen Davin Chan
Tatum King Alexandra Theodotou
Sylvia Alvarez-Lynch, ODCPA, referenced emails she sent to City staff and the Council regarding campaign signs from Councilmembers Manalo and Proaño and candidates Nuris and Bayudan that she believes were posted on public property. She provided an account of staff’s response, alleging that the City Manager has not enforced regulations governing campaign signs, calling it a conflict of interest. Lynch recommended that the Council adopt an ordinance establishing campaign guidelines, and requested ethical behavior from the City Manager and directors, City staff, and candidates running for Daly City Offices.

Brent Turner expressed concern regarding the raised issue about campaign signs. He referred to political motives and challenged whether the allegations regarding campaign signs posted on City property were based on reality, stating that the property was not owned by the City. Turner noted that supporting and endorsing local candidates benefits the residents of Daly City.

Ray Satorre, PBRC, requested an update on the City Council censure of Councilmember “Pamela Cook alias DiGiovanni” regarding compliance with the ruling, noting that the citizens are awaiting the summary judgment. He denounced DiGiovanni’s defiance and mockery of the City’s rules and regulations, calling into question her conduct as a City official. Satorre referenced City funds that were used to investigate complaints against DiGiovanni and requested the City Manager and City Attorney resolve the matter. Satorre urged the rest of the Council to seek truth and justice so that the public receives answers regarding the censure, and urged DiGiovanni to resign as a matter of decency.

CONSENT AGENDA:

It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried to approve the consent agenda with the exception of Items 10, 12, 15, 16, and 19, which were pulled for further discussion.

Communications:

Accept QTR 2 Investment Report
Resolutions:

Consider Partnership with the Daly City History Guild Museum & Archive (the Guild) for a Fundraiser Event at the Cafe Doelger
Assistant to the City Manager Leilani Ramos provided the staff report to consider partnering with the Guild for a fundraiser event at the Café Doelger and to consider waiving rental fees. The Council recognized the members of the Guild who were present, acknowledging the work they do to preserve Daly City history.

It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried by voice vote to adopt the resolution.

Resolution 26-138, Approving A Partnership With The Daly City History Guild Museum And Archive For A Fundraiser Event At The Café Doelger

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
5 Approve Consolidated Annual Performance Evaluation Report (CAPER) for the Fiscal Year (FY) 2025-26 One-Year Action Plan
Resolution 26-139, Approving Submission To The Federal Department Of Housing And Urban Development (HUD) For Fiscal Year 2025-2026 Consolidated Annual Performance Evaluation Report For The Community Development Block Grant and HOME Programs Accept Notice of Completion for the Fire Station 93 Design Build Energy Service Agreement for Solar, HVAC & LED Lighting Project
Acting Director of Public Works Joshua Cosgrove provided the staff report for the project which was completed under a construction contract with Syserco Energy Solutions, Inc., in the amount of $576,400. Cosgrove reported that the City will receive a 40 percent tax credit for the project’s solar installation and responded to questions regarding potential energy-efficiency projects for the City.

It was moved by Councilmember DiGiovanni, seconded by Mayor Sylvester and carried by voice vote to adopt the resolution.

Resolution 26-140, Accepting Completion Of Certain Project In The Department Of Public Works (Fire Station 93: Design-Build Energy Services Agreement for Solar, HVAC, and LED Lighting Project) Accept Notice of Completion for the Storm Drainpipe Repair Project Resolution 26-141, Accepting Completion Of Certain Project In The Department Of Public Works (Storm Drainpipe Repair Project)
Accept Notice of Completion for the Mussel Rock Stability Project Resolution 26-142, Accepting Completion Of Certain Project In The Department Of Public Works (Mussel Rock Stability Project)
Accept Notice of Completion for the Skyline Slurry Seal & Westmoor Avenue and Westridge Avenue Intersections Quick Build Project
City Engineer Shirley Chan provided the staff report for the completed project, which included a slurry seal of 12.5 miles of city streets in the Skyline neighborhood and installation of painted bulb-outs to improve pedestrian crossings. Staff addressed questions about small rocksleft on sidewalks after the sealing process and discussed ways to mitigate the issue for future slurry sealing projects.

It was moved by Vice Mayor Proaño, seconded by Councilmember Manalo and carried by voice vote to adopt the resolution.

Resolution 26-143, Accepting Completion Of Certain Project In The Department Of Public Works (Skyline Slurry Seal & Westmoor and Westridge Ave Intersections Quick Build Project) Authorize the City Manager to Execute Second Additional Services Agreement with Dorman Associates for Design of Early Learning and Event Center at 1401 Sullivan Avenue Acting Director Van Lonkhuysen provided the staff report requesting a second additional Services

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
6 Agreement with Dorman Associates and appropriating $435,824.00 of the City’s general fund for this purpose. He addressed questions regarding the project’s cost.

It was moved by Councilmember Manalo, seconded by Councilmember Daus-Magbual and carried by voice vote to adopt the resolution.

Resolution 26-144, Authorizing Execution Of A Second Additional Services Agreement With Dorman Associates For Design Of Early Learning Center And Event Center At 1401 Sullivan Avenue Authorize the City Manager to Execute an Addendum Agreement with the Jefferson Elementary School District
Resolution 26-145, Authorizing Execution Of Addendum To Agreement With Jefferson Elementary School District For The Afterschool Youth Recreation Program And The Expanded Learning Opportunities Program At MP Brown Elementary School, Daniel Webster, Marjorie H. Tobias Elementary School And Fernando Rivera Intermediate School
Set Time & Place for a Public Hearing to Introduce an Ordinance Amending Municipal Code Section

5.104.107 — Cannabis Equity Program Eligibility Criteria (Set Time: 9/28/26) Resolution 26-146, Setting Time and Place of Public Hearing for Proposed Ordinance Amending Daly City Municipal Code Section 5.104.170 Re: Cannabis Equity Program Eligibility Criteria (Hearing Date September 28, 2026, Time: 7:00 P.M.)
Approve Proposed Revisions of Senior Water/Wastewater Operator Job Specification (Civil Service) Director of Human Resources Natalie Sakkal provided the staff report proposing updates to the job specification to accurately reflect the duties and minimum requirements of the position. Sakkal provided clarification regarding the proposed revisions.

It was moved by Councilmember DiGiovanni, seconded by Vice Mayor Proaño and carried by voice vote to adopt the resolution.

Resolution 26-147, Adopting Revised Job Specifications Of Senior Water/Wastewater Operator Adopt Memorandum of Understanding and Salary Schedule between the City of Daly City and AFSCME, Local 829
Resolution 26-148, Adopting Composite Summary Memorandum Of Understanding with AFSCME, Local 829 (December 1, 2025 through November 30, 2028) Check Registers:

Check Registers for the Month of June 2026
Check Registers for the Month of July 2026

END OF CONSENT AGENDA

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
7 PUBLIC HEARINGS:

Zone Change ZC-04-26-17042 – Amendments to Zoning Ordinance Repealing Existing Accessory Dwelling Unit (ADU) Regulations
Acting Director Van Lonkhuysen provided the staff report to repeal the existing ADU regulations and to retain and relocate certain requirements pertaining to ADUs to other sections within the Zoning Ordinance. He addressed questions on trash-bin storage at homes featuring ADUs.

It was moved by Mayor Sylvester to open the hearing. There were no speakers It was moved by Councilmember Manalo, seconded by Councilmember Daus-Magbual and carried to close the hearing. Manalo/Daus
It was moved by Vice Mayor Proaño, seconded by Mayor Sylvester and carried for the City Attorney to read the ordinance by title only.

Vice Mayor Proaño introduced the ordinance.

Ordinance 1494, Amending Chapter 17 of the Municipal Code Re: Zoning Ordinance Updates COMMUNICATIONS:

Use Permit UPR-6-26-17087 - Billiards Hall at 6232 Mission Street Assistant Planner Brian Paland provided the staff report regarding the applicant’s request to use an existing retail building for a billiards hall and addressed questions about whether an ABC license will be required to sell bottled beer. Police Chief Cameron Christensen responded to questions regarding concerns associated with billiards halls. Staff acknowledged Mayor Sylvester’s recommendation to add Municipal Code Section 9.44 to the Conditions of Approval.

Applicant George Khanouf provided a summary of business plans and goals and addressed questions on his experience operating a billiards hall. George answered inquiries about parking, proposed hours of operation, whether an ABC license would be required and the type of license, how the business will enforce compliance for patrons under 18, on-site security hours, types of food to be served, certifications for staff, video surveillance, layout plans, and the hall’s occupancy capacity.

It was moved by Vice Mayor Proaño, seconded by Councilmember Manalo and carried by unanimous roll call vote to adopt the resolution.

Resolution 26-149, Adopting Findings Of Fact And Imposing Conditions Of Approval On Use Permit UPR-6-26-17087 For Billiards Hall (6232 Mission Street, Daly City, California) RESOLUTIONS:

Designate Voting Delegate and Alternate for League of California Cities General Assembly Assistant to the City Manager Leilani Ramos provided the staff report requesting that the Council designate a voting delegate and one or more alternates to cast ballots on behalf of the City at the League of California Cities General Assembly. Councilmembers discussed their availability to attend the General Assembly.

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
8 It was moved by Mayor Sylvester, seconded by Councilmember Manalo and carried by unanimous roll call vote to adopt a resolution designating Mayor Sylvester as Voting Delegate and Vice Mayor Proaño as Voting Alternate.

Resolution 26-150, Authorizing Selection And Designation Of A Voting Delegate And Alternate(S) To Cast Ballots On Behalf Of The City Of Daly City At The League Of California Cities Annual Conference And Expo
APPOINTMENTS:

It was moved by Councilmember Daus-Magbual, seconded by Councilmember Manalo and carried by voice vote to reappoint Ray Satorre to the Planning Commission.

It was moved by Councilmember Daus-Magbual, seconded by Councilmember Manalo and carried by voice vote to reappoint Deodor Tronco to the Library Board of Trustees.

It was moved by Vice Mayor Proaño, seconded by Councilmember Manalo and carried by voice vote to reappoint Nancy Rodriguez to the Arts and Culture Commission.

It was moved by Vice Mayor Proaño, seconded by Councilmember Manalo and carried by voice vote to reappoint Reigil Paniza to the Planning Commission.

It was moved by Councilmember Manalo, seconded by Councilmember Daus-Magbual and carried by voice vote to reappoint Dr. Arlene Daus-Magbual to the Arts and Culture Commission.

It was moved by Councilmember Manalo, seconded by Vice Mayor Proaño and carried by voice vote to reappoint Cheryll Catuar to the Planning Commission. Councilmember DiGiovanni abstained.

REPORTS:

Council Committee
Colma Creek Flood Control District (Proaño)
Illegal Dumping Task Force (Proaño)
City/County Association of Governments (C/CAG) (Daus-Magbual as Alternate for Manalo) Design Review Committee (Manalo/Daus-Magbual)
San Mateo County Mosquito and Vector Control District (Sylvester) Ethics Committee (Sylvester)
City Council
Vice Mayor Proaño attended the following events: the Senior & Youth Artwork Showcase at the Doelger Senior Center; a San Mateo County Local Leaders conference at the County Center Courtyard in Redwood City, where officials called for a legislative solution to the vehicle license fee issue; a visit from the Izumizano Youth Choir, recognizing the hospitality of the City Manager’s Office, Leilani Ramos, Marie Villarosa, and Dave & Buster’s and highlighting the choir’s concert; the Japanese flag-raising ceremony at City Hall; and Hip-Hop Day, which featured free food, youth crafts, performances, breakdancing battles, and spray painting.

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CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
SEPTEMBER 14, 2026
9 Councilmember Manalo shared that progress had been made toward repair work on the roads on Mission Street, with work anticipated by Thanksgiving weekend. Manalo attended the following events:

National Night Out, thanking Police and Fire personnel; an Positively Filipino event honoring Tita Perla Ibarrientos, introduced by Councilmember Daus-Magbual; the Doelger Arts artwork exhibit at the Daly City Rotunda; a press conference addressing the VLF Funding issue, providing an update on the issue; the 88th anniversary of the Sing Tao Newspaper; Jenny Yang’s Good Egg comedy show organized by Dr. Rod and Arlene Daus-Magbual; an appreciation barbecue for Teamsters Local 665 with Senator Becker, Supervisor Canepa, and Mayor Lurie; the Japanese flag-raising with the Izumisano Youth Choir; the 10th anniversary celebration of the Chinese Hospital-Gellert; the Hip-Hop Day event, which honored DJ Shortkut (Jon); the “From Voice to Vote” event by the Commission on the Status of Women of San Mateo County; the Regional Operational Center tour at the Council of Cities; the 8th annual Adobo cook-off at the 7 Mile House in Brisbane; United Pangasinan’s annual picnic at Gellert Park; a Housing Leadership Council event; Astrana Health’s annual physician’s picnic, also attended by Mayor Sylvester; the annual chili cook-off at Molloy’s Tavern in Colma, which honored the Veterans Village; the OCA-Asian Pacific American Advocates awards dinner; and Concert in the Park, also attended by Vice Mayor Proaño. Manalo thanked Councilmember Daus-Magbual for taking her place at the C/CAG meeting, congratulated Grocery Outlet on its grand opening, and acknowledged KTSF Channel 26 for celebrating their 50th anniversary.

She also thanked her colleagues on the Daly City Council forsupporting the amendments to the inclusionary housing ordinance that give preference to individuals who live or work in Daly City.

Councilmember DiGiovanni left the meeting 12:16 A.M.

Councilmember Daus-Magbual attended the Manongs and Manangs event, which honored community elders who have left a lasting legacy for Filipino Americans, including Tita Perla Ibarrientos, Polly Cortez, and Major General Antonio Taguba. He also attended Jenny Yang’s The Good Egg, a show about her experiences as an Asian American woman at Daly City’s Seafood City. Although he was unable to attend Hip-Hop Day, Dr. Daus-Magbual acknowledged the event and gave a shout-out to DJ Shortkut and everyone who helped organize it, expressing his anticipation for next year’s celebration.

Staff
City Manager Piccolotti announced upcoming City events, including the second annual Mexican flag-raising at City Hall on September 16th and ¡Pachanga! on September 19th at Gellert Park. Piccolotti expressed his appreciation to the Council for its support in the appointment of Gracia as the new Fire Chief.

ADJOURNMENT:

Mayor Sylvester adjourned the meeting on Tuesday, September 15, 2026, at 12:32 A.M. in memory of Anthony Cruz Legarda, Dolly Rebecca Parton, Michael Rochetta, Jared Marfori Juntando, and Usoimalo Fuapopo.

Approved as submitted, this 28th
City Clerk
day of September 2026 .

Glenn R. Sylvester
Mayor

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City Council Meeting Agenda Report Item _____
Meeting Date: September 28, 2026
Subject: Adopt a Resolution Granting Consent to the City of Burlingame to Include the City of Daly City in the San Francisco Peninsula Tourism Marketing District Recommendation
Adopt a resolution granting consent to the City of Burlingame to include the City of Daly City in the San Francisco Peninsula Tourism Marketing District (SFPTMD) and authorizing the City of Burlingame, as the lead jurisdiction, to proceed with the district modification process.

Background
The San Francisco Peninsula Tourism Marketing District (SFPTMD) is a benefit assessment district established pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. The SFPTMD funds destination marketing, tourism promotion, sales, and related programs intended to benefit assessed lodging businesses throughout the San Francisco Peninsula.

The City of Burlingame serves as the lead jurisdiction for the SFPTMD. The district currently includes lodging businesses within the cities of Belmont, Brisbane, Burlingame, Colma, East Palo Alto, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, Menlo Park, and the unincorporated area of San Mateo County.

The SFPTMD Owners' Association is the San Mateo County/Silicon Valley Convention and Visitors Bureau, doing business as The San Francisco Peninsula (SFP).

Daly City lodging business owners have expressed interest in joining the SFPTMD to participate in regional destination marketing and tourism promotion efforts. Following discussions with Daly City lodging businesses and SFP, SFP requested that the SFPTMD Management District Plan be modified to add Daly City to the district boundaries.

On September 21, 2026, the Burlingame City Council considered a Resolution of Intention to modify the SFPTMD Management District Plan and a separate resolution requesting Daly City's consent to be included in the district. Under the Property and Business Improvement District Law of 1994, a multi-jurisdictional district may include businesses located in another jurisdiction with that jurisdiction's consent.

The resolution before the Daly City Council provides that consent and allows Burlingame, as the lead jurisdiction, to continue the statutory proceedings necessary to modify the SFPTMD.

Discussion
The proposed modification would expand the SFPTMD boundaries to include all existing and future lodging businesses located within Daly City.

Under the proposed modified Management District Plan, the annual assessment is:
• 1.5 percent of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space; and

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Adoption of a Resolution Granting Consent to the City of Burlingame to Include the City of Daly City in the San Francisco Peninsula Tourism Marketing District Meeting Date: September 28, 2026
• 0.75 percent of gross short-term sleeping room rental revenue for all other lodging businesses within the district.

Certain stays are excluded from the assessment as specified in the Management District Plan, including stays of more than 30 consecutive days, qualifying airline crew stays, certain government employee stays paid directly by the employing agency, and qualifying foreign government personnel.

Assessment revenues are restricted to programs and services provided under the Management District Plan for the benefit of assessed lodging businesses. Programs may include destination marketing, tourism promotion, sales lead generation, public relations, and other activities intended to increase overnight visitation and lodging business revenue within the district.

If the modification process is completed, the City of Burlingame would be responsible for collection and administration of SFPTMD assessments, including assessments from Daly City lodging businesses. The proposed Management District Plan anticipates beginning assessment collection from Daly City lodging businesses on January 1, 2027.

Adoption of the attached resolution does not itself complete the district modification. It grants Daly City's consent for Burlingame to proceed with including Daly City in the modification proceedings.

The proposed schedule calls for Burlingame to provide the required notices to affected lodging business owners, conduct a public meeting, conduct a public hearing and majority protest proceeding, and consider final modification of the SFPTMD in accordance with the Property and Business Improvement District Law of 1994.

Subject to completion of those proceedings, Daly City lodging businesses would become part of the SFPTMD and participate in the regional destination marketing and tourism promotion programs administered by SFP.

Participation would provide Daly City lodging businesses with access to a coordinated regional tourism marketing platform that currently promotes destinations throughout the San Francisco Peninsula. Inclusion would also provide an opportunity to incorporate Daly City's hotels, attractions, events, restaurants, shopping, recreation, and other visitor-serving assets into broader Peninsula destination marketing efforts.

Fiscal Impact
There is no direct General Fund expenditure associated with adoption of the resolution.

SFPTMD assessments would be imposed on and collected from assessed lodging businesses pursuant to the Management District Plan and administered by the City of Burlingame.

To the extent SFPTMD marketing and promotional activities increase overnight visitation and visitor spending in Daly City, the City may experience increased transient occupancy tax, sales tax, and other visitor-related revenues. The amount of any such increase cannot be determined at this time.

Conclusion
Inclusion in the San Francisco Peninsula Tourism Marketing District would provide Daly City lodging businesses with access to coordinated regional destination marketing and tourism promotion efforts designed to increase overnight visitation and lodging business revenue. It would

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Adoption of a Resolution Granting Consent to the City of Burlingame to Include the City of Daly City in the San Francisco Peninsula Tourism Marketing District Meeting Date: September 28, 2026
also provide opportunities to increase the visibility of Daly City's hotels, attractions, events, restaurants, shopping, recreation, and other visitor-serving assets as part of the broader San Francisco Peninsula destination.

Adoption of the proposed resolution will grant the City of Burlingame, as the lead jurisdiction for the SFPTMD, the consent necessary to proceed with the statutory process to modify the district to include Daly City. Staff recommends that the City Council adopt the resolution granting consent to the City of Burlingame to include the City of Daly City in the San Francisco Peninsula Tourism Marketing District.

Respectfully submitted,
Maybelle Manio Timothy J. Nevin
Economic Development Program Manager Assistant City Manager/Interim Director of Finance & Administrative Services
Attachments:

1. Draft Resolution Granting Consent to the City of Burlingame to Include the City of Daly City in the San Francisco Peninsula Tourism Marketing District

2. San Francisco Peninsula Tourism Marketing District Management District Plan

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RESOLUTION NO. 2026-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY GRANTING CONSENT

TO THE CITY OF BURLINGAME TO INCLUDE THE CITY OF DALY CITY IN THE SAN

FRANCISCO PENINSULA TOURISM MARKETING DISTRICT
WHEREAS, the City Council of the City of Burlingame initially created the San Mateo County Tourism Business Improvement District ("SMCTBID") in 2001 pursuant to the Parking and Business Improvement Area Law of 1989; and
WHEREAS, in 2023, the City of Burlingame established the San Francisco Peninsula Tourism Marketing District ("SFPTMD") pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq., and approved a Management District Plan governing the SFPTMD; and WHEREAS, the SFPTMD is a benefit assessment district that funds destination marketing, tourism promotion, sales, and related programs and services for the benefit of assessed lodging businesses within the district; and
WHEREAS, the City of Burlingame serves as the lead jurisdiction for the SFPTMD, and the San Mateo County/Silicon Valley Convention and Visitors Bureau, doing business as The San Francisco Peninsula ("SFP"), serves as the SFPTMD Owners' Association; and WHEREAS, lodging business owners within the City of Daly City have expressed interest in joining the SFPTMD and participating in the regional tourism marketing and promotional programs provided through the district; and
WHEREAS, SFP has requested modification of the SFPTMD Management District Plan to expand the district boundaries to include lodging businesses located within the City of Daly City pursuant to Streets and Highways Code Section 36635; and WHEREAS, the City Council of the City of Burlingame has initiated proceedings to modify the SFPTMD Management District Plan and has requested the consent of the City of Daly City to be included within the modified district; and
WHEREAS, the Property and Business Improvement District Law of 1994 permits a district to include businesses located within multiple jurisdictions when the affected jurisdictions consent to the lead jurisdiction exercising authority for purposes of the district; and WHEREAS, the City Council of the City of Daly City desires to grant its consent to the City of Burlingame to include lodging businesses located within the City of Daly City in the SFPTMD and to proceed with the modification process required by applicable law.

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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALY CITY AS FOLLOWS:

Section 1. The foregoing recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council of the City of Daly City hereby grants consent to the City of Burlingame to include the City of Daly City within the boundaries of the San Francisco Peninsula Tourism Marketing District and to exercise jurisdiction for purposes of completing the modification proceedings and future renewals of the SFPTMD pursuant to the Property and Business Improvement District Law of 1994.

Section 3. This consent authorizes the City of Burlingame, as the lead jurisdiction for the SFPTMD, to proceed with the notices, public meeting, public hearing, majority protest proceedings, and other actions required by applicable law to consider modification of the SFPTMD to include lodging businesses located within the City of Daly City, and to exercise jurisdiction in connection with future renewals of the SFPTMD in accordance with applicable law.

Section 4. The City Clerk is hereby directed to transmit a certified copy of this Resolution to the City Clerk of the City of Burlingame.

Section 5. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Daly City held on the 28th day of September 2026, by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

Mayor
ATTEST:

City Clerk

EXHIBIT A
SFPTMD District Boundaries

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SAN FRANCISCO PENINSULA TOURISM

MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. September 8, 2026 2024-2028

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Table of Contents
I. OVERVIEW...............................................................................................................................................3 II. BACKGROUND ........................................................................................................................................5 III. BOUNDARY..............................................................................................................................................6 IV. ASSESSMENT BUDGET AND SERVICES .............................................................................................7 A. ANNUAL SERVICE PLAN .................................................................................................................................. 7 B. ANNUAL BUDGET............................................................................................................................................ 9 C. CALIFORNIA CONSTITUTIONAL COMPLIANCE ................................................................................................. 9 D. ASSESSMENT.................................................................................................................................................. 11 E. PENALTIES AND INTEREST ............................................................................................................................ 12 F. TIME AND MANNER FOR COLLECTING ASSESSMENTS.................................................................................... 13 V. GOVERNANCE ......................................................................................................................................14 A. OWNERS’ ASSOCIATION................................................................................................................................. 14 B. BROWN ACT AND CALIFORNIA PUBLIC RECORDS ACT COMPLIANCE............................................................. 14 C. ANNUAL REPORT .......................................................................................................................................... 14 APPENDIX 1 – LAW ........................................................................................................................................15 APPENDIX 2 – ASSESSED BUSINESSES ......................................................................................................27 APPENDIX 3 – BENEFITS BY BUSINESS CATEGORY..............................................................................32 APPENDIX 4 – SMG CONSULTING ANALYSIS ..........................................................................................34 Prepared by
Civitas
(916)437-4300
www.civitasadvisors.com

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SFPTMD Management District Plan 3
September 8, 2026
I. OVERVIEW
Developed by the San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP) and San Mateo County lodging businesses, the San Francisco Peninsula Tourism Marketing District (SFPTMD) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. In 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (89 Law). In 2024, the SMCTBID was modernized by disestablishing the 89 Law District and forming a new District, the SFPTMD, pursuant to the Property and Business Improvement District Law of 1994 (94 Law). In 2026, the SFPTMD and this Management District Plan was modified to add the City of Daly City to the SFPTMD boundaries, effective January 1, 2027, or as soon as possible thereafter.

Location: The SFPTMD includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, Daly City, East Palo Alto, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, as shown on the map in Section III.

Services: The SFPTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales, meetings, and conventions. Sales and marketing programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales, meetings, and conventions.

Budget: The total SFPTMD annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $10,432,625. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

Cost: The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD’s boundaries. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

Collection: The City of Burlingame shall be responsible for collecting the assessments on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business.

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SFPTMD Management District Plan 4
September 8, 2026
Duration: The SFPTMD will have a five (5) year life, beginning January 1, 2024, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SFPTMD may be renewed pursuant to the 94 Law if business owners support continuing the SFPTMD programs. Once per year, beginning on the anniversary of SFPTMD formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a hearing on SFPTMD termination.

Management: The San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP) shall serve as the SFPTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the Burlingame City Council.

The SFP shall create a SFPTMD Committee tasked with determining how SFPTMD funds are spent, within the designated programs in this Plan, subject to final approval by the SFP Board. The SFPTMD Committee shall include lodging business owners or representatives paying the SFPTMD assessment.

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SFPTMD Management District Plan 5
September 8, 2026
II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively
raise over $300 million annually
for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important that San
Francisco Peninsula tourism
businesses invest in stable,
commerce-specific marketing
programs.

TMDs utilize the efficiencies
of private sector operation in
the market-based promotion of
tourism districts. TMDs allow tourism business owners to organize their efforts to increase commerce. Tourism business owners within the TMD pay an assessment and those funds are used to provide services that increase commerce.

In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.

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SFPTMD Management District Plan 6
September 8, 2026
III. BOUNDARY
The SFPTMD includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, Daly City, East Palo Alto, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, illustrated by the map below. “Lodging business” means: any hotel, motel, inn, bed and breakfast, or other similar structure or portion thereof that is rented for dwelling, lodging, or sleeping purposes on a transient basis. Tourist home or house, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, are not included in the definition of “lodging business.”
The boundary is shown on the map below. A list of lodging businesses proposed to be assessed in the SFPTMD can be found in Appendix 2.

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SFPTMD Management District Plan 7
September 8, 2026
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SFPTMD funds are sales and marketing programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the SFP. The table below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is $10,432,625.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the SFP board shall have the authority to adjust budget allocations between the categories by no more than twenty percent (20%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SFPTMD, any and all assessment funds may be used for the costs of defending the SFPTMD. In the first year of operation, the costs of creating the SFPTMD may be repaid by deducting repayment funds proportionally from budget categories.

Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the SFP Board on an as- needed basis.

Sales, Marketing, &
Advocacy,
$9,389,363 , 90%
Administration &
Operations,
$834,610 , 8%
Contingency/Reserve,
$104,326 , 1%
City Collection Fee,
$104,326 , 1%
Initial Annual Assessment Budget:
$10,432,625

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SFPTMD Management District Plan 8
September 8, 2026
Sales, Marketing, & Advocacy
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting San Francisco Peninsula as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Funds to support group business to offset costs within the destination, thereby generating room nights for assessed businesses;
• Payment of bid fees, incentives or other costs associated with bringing large scale events to the destination that generate room nights for assessed businesses; • Funds to support events and/or local partnerships that increase the public notoriety of the destination as a tourist, meetings, or event destination – thereby increasing consumer demand for assessed businesses;
• Support of public relation strategies that increase the profile of the destination as a tourist, meetings, or event destination – thereby increasing consumer demand for assessed businesses; • Strategic partnerships, sponsorships, or other alliances that reinforce the destination within the travel marketplace and position the San Francisco Peninsula as a destination of choice for meetings, events, and leisure travel to assessed businesses; • Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Familiarization tours of the destination and assessed businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed businesses; • Education of lodging business management and the Owners’ Association on advocacy and marketing strategies best suited to meet assessed businesses’ needs; and • Other activities that increase the profile and notoriety of The San Francisco Peninsula as an overnight travel destination and promote greater room night sales for assessed businesses.

Administration & Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the SFP Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve

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SFPTMD Management District Plan 9
September 8, 2026
fund shall be set by the SFP Board. Contingency/reserve funds may be spent on SFPTMD programs or administrative and renewal costs in such proportions as determined by the SFP Board. The reserve fund may be used for the costs of renewing the SFPTMD.

City Collection Fee
As lead agency, the City of Burlingame shall retain a fee equal to one percent (1%) of the amount of assessment collected or a flat fee of $60,000, whichever is greater each year, to cover their costs of collection and administration.

B. Annual Budget
The total five (5) year improvement and service plan budget is projected at approximately $10,432,625 annually, or $61,564,032 through 2028. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

The following chart has been prepared based on a five-year projection developed by SMG Consulting.

The full report can be found in Appendix 4.

Year Sales, Marketing,
& Advocacy
Administration
& Operations
Contingency
/ Reserve
City
Collection Fee Total
2024 $9,389,363 $834,610 $104,326 $104,326 $10,432,625
2025 $10,193,016 $906,046 $113,256 $113,256 $11,325,573 2026 $10,985,648 $976,502 $122,063 $122,063 $12,206,276 2027 $11,931,236 $1,060,554 $132,569 $132,569 $13,256,929 2028 $12,908,366 $1,147,410 $143,426 $143,426 $14,342,629 Total $55,407,629 $4,925,123 $615,640 $615,640 $61,564,032 C. California Constitutional Compliance
The SFPTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SFPTMD assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SFPTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230

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SFPTMD Management District Plan 10
September 8, 2026
privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the SFPTMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the SFPTMD, and are narrowly tailored. SFPTMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in SFPTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the SFP Corporation to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.

The assessment imposed by this SFPTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the SFPTMD assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the SFPTMD, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a non-payor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the SFPTMD are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
SFPTMD services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the SFP, and reports submitted on an annual basis to the City. Only assessed 2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)

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SFPTMD Management District Plan 11
September 8, 2026
lodging businesses will be featured in marketing materials, receive sales leads generated from SFPTMD-funded activities, be featured in advertising campaigns, and benefit from other SFPTMDfunded services. Non-assessed lodging businesses will not receive these, nor any other, SFPTMDfunded services and benefits.

The SFPTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill-over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-SFPTMD funds. SFPTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and

0.75% for all other lodging businesses within the SFPTMD’s boundaries. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The services provided in the SFPTMD are all targeted to benefit payors, however, not all programs benefit payors equally. The determination of the assessment rates of one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD’s boundaries, was calculated based on benefit received by payors. SMG Consulting was engaged to conduct a Hotel Revenue Proportionality Estimate analysis to quantify the estimated benefit the lodging business types will receive from SFPTMD services. By analyzing the projected number of rooms sold and the total amount of revenue estimated to be generated from sales and marketing programs, SMG Consulting found that properties with 5,000 square feet or more of dedicated meeting space will receive approximately double the amount of benefit to all other lodging businesses. The SFPTMD Sales, Marketing, and Advocacy program included in the budget has services that are intended to drive convention and meetings to the SFPTMD. Since lodging businesses with 5,000 square feet or more of dedicated meeting space are uniquely suited to accommodate large conventions and will benefit from overnight stays as a result of SFPTMD services intended to bring such business activity to the SFPTMD, they are assessed at a higher rate than other lodging businesses in the SFPTMD.

The term “dedicated meeting space” as used herein means: a permanent room or space whose primary use is dedicated for group and social meetings, meals, and/or functions. The space has been designed for and is marketed and sold as group or event function space.

The term “gross sleeping room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross sleeping room rental revenue shall not include any federal, state, or local taxes collected, including but not

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SFPTMD Management District Plan 12
September 8, 2026
limited to transient occupancy taxes. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SFPTMD assessment is identified separately it shall be disclosed as the “SFPTMD Assessment.” As an alternative, the disclosure may include the amount of the SFPTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
The SFPTMD shall reimburse the City of Burlingame for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SFPTMD assessment are sought to be recovered in the same collection action by the City, the SFPTMD shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of five percent (5%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of fifteen (15) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of five percent (5%) of the amount of the assessment in addition to the amount of the assessment and the five percent (5%) penalty first imposed. An additional penalty of five percent (5%) shall be paid for each fifteen (15) days thereafter which the remittance is delinquent.

3. Fraud: If the City determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections (1) and (2) of this section.

4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

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F. Time and Manner for Collecting Assessments
The SFPTMD assessment will be implemented beginning January 1, 2024, or as soon as possible thereafter, and ending five (5) years from its start date. Upon a successful modification, collections shall begin for Daly City lodging businesses on January 1, 2027. The City of Burlingame shall be responsible for collecting the assessment on a monthly basis, (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

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V. GOVERNANCE
A. Owners’ Association
The Burlingame City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SFPTMD as defined in Streets and Highways Code §36612. The San Francisco Peninsula (SFP) will serve as the SFPTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with the Management District Plan, and must provide annual reports to Burlingame City Council.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SFP board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The SFP shall present an annual report at the end of each year of operation to the Burlingame City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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APPENDIX 1 – LAW
CURRENT THROUGH CH. 790 OF THE LEGISLATION FROM THE 2025-2026 REGULAR SESSION, EFFECTIVE AS OF OCTOBER 13, 2025

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those

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special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

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36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district.

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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”

(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. (b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council

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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities

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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a propertybased district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be

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mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the

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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

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36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government imposed fee on Civ C § 1770 transaction

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(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of

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assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

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(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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APPENDIX 2 – ASSESSED BUSINESSES

HOTEL NAME SITE ADDRESS CITY ST ZIP

AC HOTEL SAN FRANCISCO
AIRPORT/OYSTER POINT WATERFRONT 1333 Veterans Blvd
South San
Francisco CA 94080
AIRPORT INN 751 Airport Blvd
South San
Francisco CA 94080
ALL SEASONS LODGE 800 El Camino Real
South San
Francisco CA 94080
ALOFT SAN FRANCISCO AIRPORT 401 E. Millbrae Ave Millbrae CA 94030 ALPINE INN & SUITES 560 Carter St Daly City CA 94014
AMERICANA INN MOTEL 760 El Camino Real
South San
Francisco CA 94080
AMERICAS BEST VALUE INN - PACIFICA 2160 Francisco Blvd Pacifica CA 94044 ANCHOR INN PACIFICA 500 San Pedro Ave Pacifica CA 94044

ARISTOCRAT HOTEL, BW SIGNATURE
COLLECTION 1410 Cabrillo Hwy S Half Moon Bay CA 94019
ATHERTON INN 1201 W Selby Lane Redwood City CA 94061
ATHERTON PARK INN & SUITES 2834 El Camino Real Redwood City CA 94061 BAY LANDING HOTEL 1550 Bayshore Hwy Burlingame CA 94010 BAYHILL INN 950 El Camino Real San Bruno CA 94066
BEACH HOUSE HOTEL 4100 Cabrillo Hwy N Half Moon Bay CA 94019 BELMONT PALMS 700 El Camino Real Belmont CA 94002
BEST WESTERN COYOTE POINT 480 N Bayshore Blvd San Mateo CA 94401 BEST WESTERN INN 316 El Camino Real Redwood City CA 94062

BEST WESTERN PLUS EXECUTIVE
SUITES 25 5th Ave Redwood City CA 94063

BEST WESTERN PLUS GROSVENOR
HOTEL 380 S Airport Blvd
South San
Francisco CA 94080
BRIDGEPOINT INN 3255 Geneva Ave Daly City CA 94014
BUDGET INN 2526 El Camino Real Redwood City CA 94061
CANYON RANCH WELLNESS RETREAT 16350 Skyline Blvd Woodside CA 94062 CAPRI MOTEL 2380 El Camino Real Redwood City CA 94063
THE CATRINA HOTEL 2110 S El Camino Real San Mateo CA 94403 COMFORT INN & SUITES - SAN BRUNO 611 San Bruno Ave E San Bruno CA 94066 COMFORT INN & SUITES SFO NORTH 121 E. Grand Ave
South San
Francisco CA 94080
COSTANOA LODGE+CAMP+RESORT 2001 Rossi Rd Pescadero CA 94060 COUNTRY INN & SUITES BY RADISSON 251 El Camino Real San Carlos CA 94070 COURTYARD REDWOOD CITY 600 Bair Island Rd Redwood City CA 94063 COURTYARD SAN FRANCISCO AIRPORT 1050 Bayhill Dr San Bruno CA 94066 COURTYARD SAN MATEO FOSTER CITY 550 Shell Blvd Foster City CA 94404

CROWNE PLAZA FOSTER CITY-SAN
MATEO 1221 Chess Dr Foster City CA 94404
CROWNE PLAZA S.F. AIRPORT 1177 Airport Blvd Burlingame CA 94010 CYPRESS INN ON MIRAMAR BEACH 407 Mirada Rd Half Moon Bay CA 94019 DAYS INN - REDWOOD CITY 2650 El Camino Real Redwood City CA 94061

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September 8, 2026
DAYS INN S.F. AIRPORT-OYSTER POINT -
SSF 1113 Airport Blvd
South San
Francisco CA 94080
DELUXE INN - REDWOOD CITY 1402 Stafford St Redwood City CA 94062 DELUXE INN - SSF 920 El Camino Real
South San
Francisco CA 94080
DOUBLETREE BY HILTON S.F. AIRPORT 835 Airport Blvd Burlingame CA 94010 DOUBLETREE BY HILTON S.F. AIRPORT
NORTH
5000 Sierra Point
Parkway Brisbane CA 94005

DOUBLETREE BY HILTON SF / SOUTH
AIRPORT BLVD 275 S Airport Blvd
South San
Francisco CA 94080
THE DYLAN HOTEL AT SFO 110 S El Camino Real Millbrae CA 94030 EL CAMINO INN 7525 Mission St Daly City CA 94014
EMBASSY SUITES S.F. AIRPORT SOUTH
SAN FRANCISCO 250 Gateway Blvd
South San
Francisco CA 94080
EMBASSY SUITES S.F. AIRPORT -
WATERFRONT 150 Anza Blvd Burlingame CA 94010
EXTENDED STAY AMERICA - BELMONT 120 Sem Lane Belmont CA 94002

EXTENDED STAY AMERICA - SAN
CARLOS 3 Circle Star Way San Carlos CA 94070

EXTENDED STAY AMERICA - SAN
MATEO 1830 Gateway Dr San Mateo CA 94404

FAIRFIELD INN & SUITES SAN
FRANCISCO PACIFICA 500 Old County Rd Pacifica CA 94044

FAIRFIELD INN & SUITES SAN
FRANCISCO SAN CARLOS 555 Skyway Rd San Carlos CA 94070

FAIRFIELD INN & SUITES SFO OYSTER
POINT AREA 127 W. Harris Avenue
South San
Francisco CA 94080

FOUR POINTS BY SHERATON HOTEL &
SUITES 264 S Airport Blvd
South San
Francisco CA 94080
FOUR SEASONS HOTEL SILICON VALLEY 2050 University Ave East Palo Alto CA 94303 GARDEN MOTEL 1690 Broadway Redwood City CA 94063
GATEWAY INN & SUITES 516 El Camino Real San Bruno CA 94066 GENEVA MOTEL 3233 Geneva Ave Daly City CA 94014
GOOD LIVING INN 1562 El Camino Real San Carlos CA 94070 GOOD NITE INN 485 Veterans Blvd Redwood City CA 94063
GRAND BAY SAN FRANCISCO 223 Twin Dolphin Dr Redwood City CA 94065 GRAND HYATT AT SFO 55 S. McDonnell Road San Francisco CA 94128 HALF MOON BAY INN 401 Main St Half Moon Bay CA 94019
HALF MOON BAY LODGE 2400 Cabrillo Hwy S Half Moon Bay CA 94019

HAMPTON INN SAN FRANCISCO- DALY
CITY 2700 Junipero Serra Blvd Daly City CA 94015

HAMPTON INN & SUITES SFO SOUTH -
BURLINGAME 1755 Bayshore Hwy Burlingame CA 94010
HAMPTON INN & SUITES - SAN MATEO 2940 S. Norfolk St. San Mateo CA 94403 HAMPTON INN SFO NORTH - SSF 300 Gateway Blvd
South San
Francisco CA 94080
HARBOR VIEW INN 51 Ave Alhambra El Granada CA 94018
HILTON GARDEN INN SAN MATEO 2000 Bridgepoint Circle San Mateo CA 94404

HILTON GARDEN INN SFO -
BURLINGAME 765 Airport Blvd Burlingame CA 94010

HILTON GARDEN INN - SFO NORTH -
SSF 670 Gateway Blvd
South San
Francisco CA 94080
HILTON S.F. AIRPORT BAYFRONT 600 Airport Blvd Burlingame CA 94010

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September 8, 2026

HOLIDAY INN & SUITES SAN MATEO-SF
SFO 330 N Bayshore Blvd San Mateo CA 94401

HOLIDAY INN EXPRESS & SUITES
BELMONT 1650 El Camino Real Belmont CA 94002

HOLIDAY INN EXPRESS REDWOOD CITY
CENTRAL 1836 El Camino Real Redwood City CA 94063

HOLIDAY INN EXPRESS SFO NORTH -
SSF 373 S Airport Blvd
South San
Francisco CA 94080

HOLIDAY INN EXPRESS SFO SOUTH -
BURLINGAME 1250 Bayshore Hwy Burlingame CA 94010
HOME2 SUITES BY HILTON SFO NORTH 550 Gateway Blvd
South San
Francisco CA 94080

HOMEWOOD SUITES BY HILTON
BELMONT 1201 Shoreway Road Belmont CA 94002

HOMEWOOD SUITES BY HILTON SFO
AIRPORT NORTH 2000 Shoreline Court Brisbane CA 94005
HOTEL 1550 1550 El Camino Real San Bruno CA 94066
HOTEL ALUXOR 500 El Camino Real San Bruno CA 94066
HOTEL AURA SFO 190 El Camino Real San Bruno CA 94066
HOTEL BELMONT 560 El Camino Real Belmont CA 94002
HOTEL FOCUS SFO 111 Mitchell Ave
South San
Francisco CA 94080
HOTEL NOVA SFO BY FAIRBRIDGE 410 S Airport Blvd
South San
Francisco CA 94080
HOTEL V 222 S Airport Blvd
South San
Francisco CA 94080

HYATT HOUSE BELMONT/REDWOOD
SHORES 400 Concourse Dr Belmont CA 94002
HYATT PLACE SAN CARLOS 26 El Camino Real San Carlos CA 94070

HYATT REGENCY SAN FRANCISCO
AIRPORT 1333 Bayshore Hwy Burlingame CA 94010
INN @ BAYSHORE 140 N Bayshore Blvd San Mateo CA 94401
INN AT MAVERICKS 346 Princeton Ave El Granada CA 94018

INN AT ROCKAWAY
200 Rockaway Beach
Ave Pacifica CA 94044
INN BY THE SFO 701 Airport Blvd
South San
Francisco CA 94080
LA QUINTA INN & SUITES S.F. AIRPORT
WEST 1390 El Camino Real Millbrae CA 94030
LA QUINTA INN S.F. AIRPORT NORTH 20 Airport Blvd
South San
Francisco CA 94080
LARKSPUR LANDING HOTEL SSF 690 Gateway Blvd
South San
Francisco CA 94080
LIA HOTEL 950 El Camino Real San Carlos CA 94070

LIGHTHOUSE HOTEL
105 Rockaway Beach
Ave Pacifica CA 94044

MARRIOTT FAIRFIELD INN & SUITES
SFO 250 El Camino Real Millbrae CA 94030
MILL ROSE INN 615 Mill St Half Moon Bay CA 94019
MILLWOOD INN & SUITES 1375 El Camino Real Millbrae CA 94030 THE MIRAMAR INN & SUITES 3020 Cabrillo Hwy N Half Moon Bay CA 94019 MOTEL 6 - BELMONT 1101 Shoreway Rd Belmont CA 94002
MYLO HOTEL 3211 Geneva Ave Daly City CA 94014
NANTUCKET WHALE INN 779 Main St Half Moon Bay CA 94019

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NICHE HOTEL 868 Main St Redwood City CA 94063
OCEAN VIEW INN 8425 Cabrillo Hwy Montara CA 94037
THE OCEANFRONT HOTEL 211 Mirada Rd Half Moon Bay CA 94019 OCEANO HOTEL & SPA 280 Capistrano Rd Half Moon Bay CA 94019 PACIFICA BEACH HOTEL 525 Crespi Dr Pacifica CA 94044
PARK POINTE HOTEL 245 S. Airport Blvd
South San
Francisco CA 94080
PESCADERO CREEK INN 393 Stage Rd Pescadero CA 94060
QUALITY INN HALF MOON BAY 2930 Cabrillo Hwy N Half Moon Bay CA 94019 RAMADA LIMITED SUITES 721 Airport Blvd
South San
Francisco CA 94080
REDWOOD CREEK INN 1090 El Camino Real Redwood City CA 94063 REDWOOD MOTOR COURT 3706 Rolison Rd Redwood City CA 94063 REGENCY INN SFO 411 San Bruno Ave E San Bruno CA 94066

RESIDENCE INN SAN FRANCISCO
AIRPORT/MILLBRAE 161 N. Rollins Road Millbrae CA 94030

RESIDENCE INN REDWOOD CITY SAN
CARLOS 800 E. San Carlos Ave San Carlos CA 94070

RESIDENCE INN SAN FRANCISCO
AIRPORT/SAN MATEO 2000 Winward Way San Mateo CA 94404

THE RITZ-CARLTON, HALF MOON BAY
One Miramontes Point
Rd Half Moon Bay CA 94019
RITZ INN 151 El Camino Real San Bruno CA 94066
ROYAL INN 120 Hickey Blvd
South San
Francisco CA 94080
ROYAL PALACE INN 2929 Geneva Ave Daly City CA 94014
SAN BENITO HOUSE 356 Main St Half Moon Bay CA 94019
SAN CARLOS INN 1140 Morse Blvd San Carlos CA 94070

SAN FRANCISCO AIRPORT MARRIOTT
WATERFRONT 1800 Old Bayshore Hwy Burlingame CA 94010
SAN MATEO MARRIOTT 1770 So. Amphlett Blvd San Mateo CA 94402

SEA BREEZE MOTEL
100 Rockaway Beach
Ave Pacifica CA 94044
SEAL COVE INN 221 Cypress Ave Moss Beach CA 94038
SEQUOIA INN 526 El Camino Real Redwood City CA 94063
SFO AIRPORT HOTEL, EL RANCHO INN 1100 El Camino Real Millbrae CA 94030 SILICON VALLEY INN 630 El Camino Real Belmont CA 94002
SONESTA ES SUITES SFO SAN BRUNO 1350 Huntington San Bruno CA 94066

SONESTA ES SUITES SFO OYSTER POINT
WATERFRONT 1350 Veterans Blvd
South San
Francisco CA 94080

SONESTA SELECT SFO OYSTER POINT
WATERFRONT 1300 Veterans Blvd
South San
Francisco CA 94080

SPRINGHILL SUITES BELMONT
REDWOOD SHORES 1401 Shoreway Rd Belmont CA 94002
SUPER 8 S.F. AIRPORT - SAN BRUNO 421 El Camino Real San Bruno CA 94066

TOWNEPLACE SUITES SAN MATEO
FOSTER CITY 1299 Chess Drive Foster City CA 94404
TRAVELERS INN 100 Hickey Blvd
South San
Francisco CA 94080
TRAVELODGE SFO NORTH 326 S Airport Blvd
South San
Francisco CA 94080

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VAGABOND INN EXECUTIVE S.F.

AIRPORT BAYFRONT 1640 Old Bayshore Hwy Burlingame CA 94010

VILLA MONTES HOTEL, ASCEND HOTEL
COLLECTION 620 El Camino Real San Bruno CA 94066
THE WESTIN S.F. AIRPORT 1 Old Bayshore Hwy Millbrae CA 94030 ZABALLA HOUSE BED & BREAKFAST 324 Main St Half Moon Bay CA 94019

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APPENDIX 3 – BENEFITS BY BUSINESS CATEGORY
Program Service
Tier 1
(1.5%)
Tier 2
(0.75%)
General Listing on www.thesanfranciscopeninsula.com with link to hotel booking page X X General Inclusion in Sales, Marketing and Promotional Opportunities X X
General Inclusion in SFP's Consumer Brochures
X X
General Access to SFP's research reports and insights
X X
General Represented by SFP at industry conferences and events X X
General
Access to California Hotel Lodging Association's industry advocacy efforts and training materials
X X
Consumer Opportunity to participate in Consumer Marketing Campaigns X X
Consumer Public Relations participation opportunities
X X
Consumer Familiarization Tour (Press and Influencer) Opportunities X X
Consumer Inclusion Opportunity in Social Media Efforts
X X
Consumer Inclusion Opportunity in Destination Video and Photo Shoots X X
Consumer New project and special event opportunities
X X
Travel Trade Trade Show Opportunities
X X
Travel Trade Sales Mission Opportunities
X X
Travel Trade Lead Opportunities
X X
Travel Trade Familiarization Tour Leads (Press and Travel Trade) Opportunities X X
Meetings Lead Distribution
X
Meetings Site Inspections
X
Meetings Convention Services Support
X
Meetings Opportunity to participate in Sales Missions
X
Meetings Opportunity to participate in Client Events
X
Meetings Industry tradeshow participation
X
Meetings Participation in local industry chapter meetings and events X
Meetings Familiarization Tours
X
Meetings Marketing Campaigns
X
Meetings Inclusion in Meetings Market Brochures
X
Meetings Opportunity for Sponsorship of Group Events
X
Meetings
Custom Event Landing Page for Groups: Things To Do Nearby With Your Selected Venue (Itinerary)
X

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Meetings Distribution of hot rates and dates to planners X
Meetings Co-op advertising opportunities in key meeting publications X
Meetings Social media mentions/posts promoting groups space X
Meetings Inclusion on Meeting Planner section of website X
Meetings Opportunity to be highlighted in meeting planner newsletter X
Meetings Access to SF Travel group leads via our alliance with SFT X

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APPENDIX 4 – SMG CONSULTING ANALYSIS

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September 8, 2026
SF Peninsula
Tourism Business Improvement District Pro Forma Review

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September 8, 2026
Overview
In 2001, the Organization established a Tourism Business Improvement District (TBID) under the Parking and Business Improvement Area Law of 1989 (’89 Law) and now wishes to convert to a Tourism Marketing District (TMD) under the Property and Business Improvement District Law of 1994 (’94 Law).

The organization is moving forward with a Tourism Business Improvement District (TBID) transition that will increase its funding above $6 million annually to be available for tourism promotion efforts. The TBID contribution is a significant budget increase for the organization. In developing the proposal for the TBID renewal and the subsequent approval of the lodging industry, the organization staff has prepared a TMD Benefits Proforma to estimate the potential return on investment from the new TBID funds.

This staff assessment includes the proposed allocation and use of new funds for different tourism promotion efforts (sales, advertising, public relations, social media, etc.) and the projected return on investment for those funds.

Proforma Review
The TMD Benefits Proforma review includes a review of the staff proforma to check the assumptions and estimates and make suggestions and recommendations.

Scope of Work
The following is a review of the proforma developed for the TBID renewal. The analysis was done using the information supplied by The San Francisco Peninsula CVB. Project elements include the following:

I. DEVELOP SMITH TRAVEL RESEARCH TRENDLINE AND ANNUAL GROWTH RATE FOR LODGING REVENUE.

DEVELOP MULTI-YEAR FORECAST.

Ø DETERMINE THE PROJECTABLE RATE OF GROWTH.
•REVIEW STAFF DRAFT PROFORMA, INCLUDING ASSUMPTIONS AND FINAL ESTIMATES.

I. COMPARE PROFORMA ESTIMATES WITH TRENDLINE AND ASSESS WITH POTENTIALLY DIFFERENT SCENARIOS (HIGH, MEDIUM, AND LOW ESTIMATES).

Limiting Conditions
The following analysis and estimates are based on the best information and time available. The results and opinions provided are a guide for consideration, and we do not claim as to the accuracy of the final results.

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Model Development
We developed an SF Peninsula Tourism Economic Model to develop lodging revenue and room night projections with the addition of new properties and the potential of Menlo Park Inclusion.

The model was developed utilizing the past ten years of monthly lodging data from Smith Travel Research. The model measures a variety of economic activities, including the following:

II. LODGING REVENUE PROJECTIONS THROUGH 2027
III. ROOM NIGHT PROJECTION THROUGH 2027
IV. TBID REVENUE WITHOUT MENLO PARK
V. TBID REVENUE WITH MENLO PARK
VI. TBIB REVENUE WITH NEW PROPERTIES
VII. TBID REVENUE WITHOUT NEW PROPERTIES.

The SF Peninsula Tourism Economic Model can be adjusted to test or consider different scenarios.

Model Methodology
The future growth of ADR and room nights is using a Bayesian Structural Times Series (BSTS) model, a technique for fitting historical data and forecasting future trends (Scott and Varian, Predicting the Present with Bayesian Structural Time Series 2013). BSTS was chosen for its ability to forecast future trends, including seasonal variation, using robust time series data. In this case, data is available in monthly intervals from July 2012. This model was fit by specifying a semi-local linear trend. Confidence intervals bound a mean forecast to quantify the degree of uncertainty in the future (Scott, Fitting Bayesian structural time series with the bsts R package 2017).

Rather than having the pandemic disruption influence the forecasts, only data from July 2012 through December 2019 was taken as input. Revenue is simply forecast as the product of ADR and room nights.

Given the fact that the STR reports track all cities in San Mateo County, the revenue forecast is reduced in proportion to the number of room nights in the TMD (15,699/17,190) or 91.3 percent.

TMD fee revenue is also forecast in proportion to available rooms, with 42 percent A-level property rooms paying 1.5 percent of gross room revenue. The balance is paid by B-level property rooms at 0.75 percent.

Construction of three new B-level properties is underway and will bring 451 rooms online. These rooms are assumed to be available from January 2023. There are 533 A-level property rooms and 338 B-level property rooms in Menlo Park. Potential gross room and TMD fee revenue is forecast on the basis of room count proportionality.

Model Assumptions
The model forecasts mean values of ADR and room nights along with 2.5 percent confidence intervals. This report is based on mean values. By constructing the model in this manner, we are

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SFPTMD Management District Plan 38
September 8, 2026
assuming that the conditions supporting ADR and room night growth prior to the pandemic will continue from 2023 forward.

Sources of variation include the impact of macroeconomic conditions, actual timing of new construction (planned and unplanned), promotions and policies such as airline crew waivers.

Model Limitations
The baseline SF Peninsula Tourism Economic Model provides a static look based on a given set of assumptions. Forecasts of future events are inherently uncertain as the recent pandemic reminded us. As noted above, the model can be adjusted to estimate specific scenarios in detail in which case the relative differences generally provide the most value.

Findings
Table 1 below summarizes Room Nights, Revenue, and Average Daily Rate (ADR) projections.

Table 1: Room Night, Revenue, and Average Daily Rate Projections 2021-2027 A. THE MODEL INCLUDES GROWTH RATE PROJECTIONS FOR EACH OF THOSE CATEGORIES. NOTE THE SIGNIFICANT REVENUE GROWTH PROJECTION IN 2022 AND 2023, AFTER WHICH THE GROWTH SLOWS DOWN INTO A MORE CONSISTENT PATTERN AFTER 2023. (SEE TABLE 1 ABOVE) B. THE TMD BENEFITS PROFORMA DEVELOPED BY STAFF HAS LODGING RATES BETWEEN $200 AND $293,

WHICH IS WITHIN ESTIMATES OR THE PROJECTED AVERAGE DAILY RATE OF THE SF PENINSULA TOURISM ECONOMIC MODEL. (SEE TABLE 2)
A. REGARDING TBID REVENUE PROJECTION, THE TMD BENEFITS PROFORMA ANTICIPATES TBID REVENUE OF APPROXIMATELY $6M. BASED ON THE SF PENINSULA TOURISM ECONOMIC MODEL'S ASSUMPTIONS, TBID COLLECTIONS COULD BE HIGHER STARTING IN 2022 (APPROXIMATELY $8M). (SEE TABLE 2)
B. THE MODEL CONSIDERS THE NEW CONSTRUCTION OF HOTELS (451 UNITS) WHICH INCREASES THE POTENTIAL TBID REVENUE GENERATION BY APPROXIMATELY $207,000. (SEE TABLE 2) C. ADDITIONALLY, THE MODEL CONSIDERS THE POTENTIAL ADDITION OF MENLO PARK HOTELS BEING A PART OF THE TBID. THE ADDITION OF MENLO PARK HOTELS WOULD INCREASE TBID CONTRIBUTIONS BY APPROXIMATELY $638,000 STARTING IN 2023. (SEE TABLE 2) 2021 2022 2023 2024 2025 2026 2027
Room nights 3,201,672 3,273,894 3,356,784 3,470,192 3,592,148 3,720,575 3,824,263 RN annual growth 2.3% 2.5% 3.4% 3.5% 3.6% 2.8%
Revenue (thousands) $430,563 $784,357 $1,053,955 $1,140,669 $1,229,371 $1,335,188 $1,444,536 Rev annual growth 82.2% 34.4% 8.2% 7.8% 8.6% 8.2%
ADR $134 $240 $314 $329 $342 $359 $378
ADR annual growth 78.2% 31.1% 4.7% 4.1% 4.9% 5.3%

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SFPTMD Management District Plan 39
September 8, 2026
Table 2: TMD Room Revenue and Fee Projections
Inventory Notes:

Changes in Hotel Inventory
318 rooms lost to Project Home Key (housing the un-housed) during 2020/2021 Possibly December 15, 2022 or early 2023
Red Roof Inn, Burlingame
213 Rooms
Possibly in 2023
El Rancho Inn, Millbrae
219 Rooms
2023 (Buyer is getting financing together, no set month for demolishing.) Holiday Inn Express, Burlingame
148 Rooms
Possibly 2023 (Entitlements approved Sept 2022. No word when developer will start work.) Comfort Inn & Suites, South San Francisco
166 Rooms
2021 2022 2023 2024 2025 2026 2027
A rooms 6607 Base Year
Total available 15699 TBID Projec4on
B rooms 9092
A Revenue $101,204,557 $330,100,605 $405,089,050 $438,417,832 $472,510,240 $513,181,465 $555,203,395

1.50% $2,718,068 $4,951,509 $6,076,336 $6,576,267 $7,087,654 $7,697,722 $8,328,141 B Revenue $249,358,533 $454,256,803 $557,449,620 $603,313,899 $650,229,026 $706,197,349 $764,032,666

0.75%
Total TBID/TMD $4,588,257 $8,358,435 $10,257,208 $11,101,122 $11,964,371 $12,994,202 $14,058,366 New Construc4on
New rooms 2023 (B) 451 Total w/new hotels $10,464,596 $11,325,573 $12,206,276 $13,256,929 $14,342,629 % increase in B 5.0%
Menlo Park
New rooms 2023 (A) 533
% increase in A 8.1%
New rooms 2023 (B) 338
% increase in B 3.5%
Total w/Menlo $10,895,479 $11,791,907 $12,708,873 $13,802,787 $14,933,191

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SFPTMD Management District Plan 40
September 8, 2026
Appendix

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SFPTMD Management District Plan 41
September 8, 2026
Appendix 1: San Mateo County Room Revenue
Source: STR Reports and Consulting Team.
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Annual San Mateo County Room Revenue
Historic STR Report Values through October 2022 and Forecast to 2027

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SFPTMD Management District Plan 42
September 8, 2026
Appendix 2: San Mateo County ADR
Source: STR Reports and Consulting Team.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
Jul-12
Apr-13
Jan-14
Oct-14
Jul-15
Apr-16
Jan-17
Oct-17
Jul-18
Apr-19
Jan-20
Oct-20
Jul-21
Apr-22
Jan-23
Oct-23
Jul-24
Apr-25
Jan-26
Oct-26
Jul-27
Apr-28
Jan-29
Oct-29
Jul-30
Apr-31
Jan-32
Oct-32
Jul-33
Apr-34
Monthly San Mateo County ADR Forecast to 2034
Historical 97.5% quantile Forecast mean 2.5% quantile

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SFPTMD Management District Plan 43
September 8, 2026
Appendix 3: San Mateo County Room Nights
Source: STR Reports and Consulting Team.
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jul-12
Apr-13
Jan-14
Oct-14
Jul-15
Apr-16
Jan-17
Oct-17
Jul-18
Apr-19
Jan-20
Oct-20
Jul-21
Apr-22
Jan-23
Oct-23
Jul-24
Apr-25
Jan-26
Oct-26
Jul-27
Apr-28
Jan-29
Oct-29
Jul-30
Apr-31
Jan-32
Oct-32
Jul-33
Apr-34
Monthly San Mateo County Room Night Forecast to 2034
Historical 97.5% quantile Forecast mean 2.5% quantile

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City Council Agenda Report Item # _____
Meeting Date: September 28, 2026
Subject: Authorize City Manager to Execute an Ownership, Operations, and Maintenance Agreement with the City/County Association of Governments of San Mateo County for the San Mateo County Smart Corridor Project Recommended Action
Staff recommends the City Council authorize the City Manager to execute an Ownership, Operations, and Maintenance Agreement with the City/County of Association of Governments of San Mateo County (C/CAG) for the San Mateo Smart Corridor Project.

Background
C/CAG is sponsoring the San Mateo County Smart Corridor Project, an Intelligent Transportation Systems (ITS) project that extends along El Camino Real and major local streets in San Mateo County connecting to US 101 and I-280. The project enables cities and the California Department of Transportation (Caltrans) to proactively manage daily traffic and non-recurring traffic congestion caused by diverted traffic due to major incidents on the freeway.

The current phase of the Smart Corridor Project extends north into Daly City, Brisbane and Colma and on the following arterial streets: John Daly Boulevard, Junipero Serra Boulevard, Sullivan Avenue, Southgate Avenue and Serramonte Boulevard. The project will include the deployment of an interconnected traffic signal system, closed circuit video cameras, trailblazer/arterial dynamic message signs and vehicle detection systems. These ITS elements will allow local jurisdictions and state agencies to deploy incident response plans to manage traffic congestion and respond to major incidents on I-280 and US 101.

Smart Corridor Project has already been implemented in the Town of Atherton, City of Belmont, City of Brisbane, City of Burlingame, Town of Colma, City of East Palo Alto, City of Menlo Park, City of Millbrae, City of Redwood City, City of San Bruno, City of San Carlos, City of San Mateo and City of South San Francisco. These stakeholders, who are not signatories to this Agreement, have entered into separate agreements with C/CAG for the maintenance and operation of Smart Corridor-specific equipment located within their respective jurisdictional boundaries.

On March 1, 2024, the City executed a funding agreement between C/CAG and the Town of Colma for the construction phase of the Smart Corridor Extension Project. The agreement did not commit any agency to funding, maintenance or operations responsibilities.

The purpose of this Agreement is to outline and define the roles, responsibilities, terms and conditions of ownership, operation, and maintenance of the Smart Corridor equipment located within the City’s right-of-way during daily operations and during major traffic incidents.

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Authorize City Manager to Execute the Ownership, Operations, and Maintenance Agreement with the City/County of Association of Governments of San Mateo County for the Smart Corridor Project Meeting Date: September 28, 2026

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G:\Administration\Admin Sec\Agenda\Council Agenda 2012\01-09-12 Accept HSIP Hickey-Callan_SC.doc Discussion
The objective of this project is to implement traffic management strategies by deploying ITS elements along conventional state highway routes and major local streets such that these designated routes will have the tools to manage congestion and improve the flow of traffic.

Junipero Serra Boulevard will serve as one of the emergency alternate routes to divert traffic off the freeway and onto surface streets in an effort to provide improved operations during special events and non-recurrent congestion. The ITS elements installed for the Smart Corridor Project include:
(1) traffic signals; (2) fixed or pan-tilt-zoom closed circuit TV cameras; (3) arterial changeable message signs; (4) vehicle detection systems; (5) communications infrastructure; and (6) communications equipment.

The table below summarizes the new Smart Corridor equipment and devices that are within the City’s jurisdiction and general agreement as to ownership, maintenance, and operation responsibilities.

Smart Corridors Equipment Operation Maintenance
Description Ownership Qty Daily Incident Financial Responsibility Traffic Signals City 9
Existing
Agreements Caltrans Existing Agreements
Fixed/PTZ CCTV cameras City 29 Shared Caltrans C/CAG
Directional signs City 2 Caltrans Caltrans C/CAG
Vehicle detection systems City 4 Caltrans Caltrans C/CAG Communication infrastructure City 2,500’ N/A N/A City
Communications equipment City 1 N/A N/A C/CAG
Project construction started in February 2025 and is expected to be completed by February 2027.

Fiscal Impact
Staff resources will be required to implement this Agreement and to provide general support for the Smart Corridor Project. The City will be obligated to protect the fiber optic communication lines by including the locations of these lines on City construction plans and marking the locations in the field prior to commencement of any nearby construction. In addition, the City will be responsible to repair any damage to the communication lines caused by the City. However, the City will not be financially liable if damages are caused by a third party not working on City projects. C/CAG will seek to secure the necessary funding required for maintaining the Smart Corridor equipment located within the City’s right-of-way.

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G:\Administration\Admin Sec\Agenda\Council Agenda 2012\01-09-12 Accept HSIP Hickey-Callan_SC.doc Summary/Conclusion
Staff recommends the City Council authorize the City Manager to execute an Ownership, Operations, and Maintenance Agreement with C/CAG for the San Mateo County Smart Corridor Project.

Staff is available to provide any additional information desired by the Mayor or City Council Members.

Respectfully submitted,

Shirley Chan Joshua Cosgrove
Acting City Engineer Acting Director of Public Works
Attachment: Draft Ownership, Operation, and Maintenance Agreement for the San Mateo County Smart Corridor Project

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1 OWNERSHIP, OPERATION, and MAINTENANCE AGREEMENT
between

THE CITY/COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO

COUNTY (C/CAG)
and

THE CITY OF DALY CITY
for the

SAN MATEO COUNTY SMART CORRIDOR PROJECT
This Agreement by and between the City/County Association of Governments of San Mateo County, hereinafter referred to as “C/CAG,” and the City of Daly City, hereinafter referred to as “City,” is for the purpose of outlining and defining the roles, responsibilities, terms, and conditions for the ownership, operation, and maintenance of equipment and components that are incorporated and integrated into the San Mateo County Smart Corridor Project, hereinafter referred to as “Smart Corridor,” “Smart Corridor Project,” or “the Project.” City and C/CAG are sometimes individually referred to as a “Party” and collectively referred to as “Parties.”

RECITALS
A. C/CAG is sponsoring the San Mateo County Smart Corridor Project, which is an Intelligent Transportation System (ITS) project that extends along El Camino Real and major local streets in San Mateo County connecting to US-101 and I-280.

B. The Project enables cities and the California Department of Transportation (“Caltrans”) to proactively manage daily traffic and non-recurring traffic congestion caused by diverted traffic due to major incidents on the freeway.

C. Pursuant to the C/CAG-City of Daly City and Town of Colma Construction Funding Agreement, the City will advertise, award, and administer the construction contract for the Smart Corridor Project located within the project limits in the City of Daly City and the Town of Colma.

D. This Agreement is intended to identify the overall commitment and responsibilities regarding ownership, operation, and maintenance of the Smart Corridor equipment located within the City right-of-way during daily operations and during major traffic incidents.

E. The Project is located along predefined designated arterial routes, parallel and perpendicular to US-101 and I-280.

F. The Project enables the Project stakeholders to implement traffic management strategies through the deployment of ITS elements along state routes and major local streets.

In addition to the City, other Project stakeholders with access to selective Smart Corridor equipment currently include the Town of Atherton, City of Belmont, City of Brisbane,

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2 City of Burlingame, Town of Colma, City of East Palo Alto, City of Menlo Park, City of Millbrae, City of Redwood City, City of San Bruno, City of San Carlos, and City of San Mateo. These stakeholders, who are not signatories to this Agreement, have entered into separate agreements with C/CAG for the maintenance and operation of Smart Corridorspecific equipment located within their respective jurisdictional boundaries.

G. Caltrans District 4, who will have full access to Smart Corridor equipment throughout the Project limits, and who is not a signatory to this Agreement, has entered into a separate agreement with C/CAG for the maintenance and operation of the Smart Corridor.

H. Caltrans will enter into a separate agreement with City regarding the detailed operations of the Smart Corridor within City limits.

AGREEMENT
The Parties hereto agree as follows:

I. Smart Corridor Definitions
A. The new ITS elements to be installed in either City or Caltrans rights-of-way for the Smart Corridor Project, as detailed in Exhibit A attached hereto and incorporated herein, referred to as “New Equipment,” include the following equipment and components:
• Directional signs (trailblazers and other)
• Fixed or pan-tilt-zoom (PTZ) closed-circuit television cameras (CCTV) • Communications Facilities (conduit, fiber, copper, wireless, software, and associated equipment)
• Arterial changeable message signs (Arterial Dynamic Message Signs – ADMS) • Vehicle detection systems
• Center-to-center communications between San Mateo County Hub (SMCHub) and District 4 Traffic Management Center (D4TMC)
• Power supply line and equipment
B. The following elements, located within City right-of-way, are considered existing City owned equipment that is being upgraded to meet the operational needs of the Smart Corridor, referred to as “Upgraded Equipment:”
• Traffic signal controllers, cabinets, signal interconnect equipment, and signal operating software systems
C. The New and Upgraded Equipment are sometimes collectively referred to as “Smart Corridor Equipment” in this Agreement.

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3 D. Exhibit A includes a summary of the Smart Corridor equipment and devices and general agreement as to ownership, maintenance, and operations responsibilities.

II. Ownership
A. City shall continue to own the Upgraded Equipment located within City right-of-way, which were “Upgraded” by the Smart Corridor Project.

B. City shall own and accept from C/CAG, ownership and all of C/CAG’s interest in the “New” Smart Corridor Equipment located within City right-of-way.

III. Operations
A. City shall continue to operate the Smart Corridor Upgraded Equipment located within City right-of-way at City’s expense during daily operations.

B. City shall have access to view full system CCTV camera images, during both daily operations and during major traffic incidents. During daily operations, cities and Caltrans may control PTZ(s) with priority given to the owning jurisdiction. A framework to establish priority, rules, and defaults will be developed in a separate agreement with Caltrans.

C. City shall have access to view full system vehicle detection data, during both daily operations and during incidents. Control of the vehicle detection system will remain with Caltrans.

D. City shall have the opportunity for shared control of the directional signs during daily operations under a separate agreement with Caltrans.

E. City shall relinquish all control of signals, PTZ cameras, and directional signs to Caltrans during major traffic incidents. If Caltrans is unable to assume control of these systems due to technical reasons, control will remain with the City.

F. Additional agreements between the City and Caltrans and possibly other cities may be developed as needed for operating Smart Corridor Equipment located in the City limits during major traffic incidents. Both Parties agree to pursue such agreements as necessary.

IV. Maintenance

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4 A. City shall maintain the Upgraded Equipment located within City’s right-of-way at City’s expense.

B. City shall assume the associated electrical costs of the Smart Corridor Equipment located within City right-of-way.

C. Except for Communication Facilities, C/CAG shall maintain the New Equipment, including directional signs, CCTV cameras, and vehicle detection system and the ADMS signs, located within City’s right-of-way to the extent that funding is available. Except for Communication Facilities, City will not be responsible for maintenance of the New Equipment. C/CAG will schedule maintenance service for the New Equipment, except for Communication Facilities, at least on an annual basis.

D. C/CAG agrees to seek to secure the necessary funding required for maintaining the New Equipment (except for Communication Facilities) located within City’s right-ofway. In the event C/CAG is unable to secure adequate funding for maintenance, the Parties agree to engage in collaborative best efforts to identify adequate funding to maintain the New Equipment.

E. C/CAG will not pay for graffiti removal on Smart Corridor Equipment. City shall be responsible for graffiti removal on facilities and equipment located within City’s right-of-way.

F. C/CAG agrees to obtain a maintenance contractor that specializes in ITS equipment.

C/CAG or its maintenance contractor will obtain an encroachment permit from the City for work within the City’s right-of-way.

G. C/CAG, or its assignee, shall serve as lead agency to administer the maintenance service contract or to oversee administration of the maintenance service contract for its Smart Corridor maintenance responsibility.

H. If City is aware of Smart Corridor equipment damage caused by a third party, City will notify and assist C/CAG in pursuing a claim against the offending party.

I. Maintenance activities shall include but are not limited to the following tasks: adopt a performance-based approach, establish a proactive annual maintenance program, perform regular maintenance, repairs, and replacements; ensure equipment is functioning properly.

J. Maintenance programs established for the Smart Corridor Equipment shall in no way be a standard of maintenance higher than required by law.

K. Preventative maintenance service shall be scheduled on an annual basis.

L. For fiber conduits that do not interconnect signals, the City is responsible for protecting the communication lines by marking the location of these lines on construction plans and by marking the locations in the field during construction. The City will be responsible for repairing any damage to the communication lines caused

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5 by City staff, contractors working for the City, any third party working under an encroachment permit issued by the City, or any damage caused by construction activities not under permit. The City will provide notice to C/CAG of any damage to communication lines as soon as reasonably possible, but in no event more than two business days after City becomes aware of the damage. The City will include the following language in any encroachment permits granted to any third party working in the City’s right of way.
“Fiber optic communication lines are present in the City right of way. It is the responsibility of the contractor to protect the integrity of those communication lines during construction. The contractor will be liable for all damages to the communication lines. Through the application and granting of the encroachment permit, the City/ County Association of Governments of San Mateo County (C/CAG) is specifically authorized to pursue any claims against the contractor for the cost to repair any damage caused to the fiber optic communication lines.” M. For all fiber conduits not covered by Section IV.K above, the City is responsible for protecting the communications lines by marking the location of these lines on construction plans and by marking the locations in the field. The City will be responsible for repairing any damage to the communication lines caused by City staff, contractors working for the City, any third party working under an encroachment permit issued by the City, or any damage caused by construction activities not under permit.

N. The City will maintain this facility in a similar manner to that of other City owned utilities. C/CAG will be responsible for repair and maintenance of any malfunction of the communication lines not related to construction and maintenance activities.

V. Insurance
During the term of this Agreement, both Parties shall ensure any Party or such Party’s contractors engaged in work on the Smart Corridor facility, at their respective sole cost and expense, furnish the other with certificates of insurance evidencing that they each have obtained and maintain insurance in the following amounts:

A. Workers’ Compensation that satisfies the minimum statutory limits.

B. Commercial General Liability and Property Damage Insurance in an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence, TWO MILLION DOLLARS ($2,000,000) annual aggregate, for bodily injury, property damage, completed operations and contractual liability coverage.

C. Comprehensive automobile insurance in an amount not less than ONE MILLION DOLLARS ($1,000,000) per occurrence for bodily injury and property damage including coverage for owned and non-owned vehicles.

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6 VI. Effective Date and Term
This agreement shall be effective as of XX, 2026 and continue until 2060, unless sooner terminated, or otherwise extended, by written mutual consent of the Parties. This Agreement may be modified only in writing and by mutual consent of the Parties.

VII. Hold Harmless/ Indemnity
A. Each Party shall defend, hold harmless, and indemnify the other Party and its officials, officers, employees, agents, volunteers and representatives from any and all claims, suits, or actions of every name, kind, and description brought by a third party which arise out of the terms and conditions of this Agreement (collectively, “Claims”); provided that such Claims result from the acts or omissions of the Indemnifying Party and/or its officials, officers, employees, agents, or representatives in connection with this Agreement.

This indemnification provision will survive termination or expiration of this Agreement.

VIII. Notice
Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.

City of Daly City:

C/CAG: City/County Associations of Governments of San Mateo County 555 County Center
Fifth Floor
Redwood City, CA 94063
Attn: Executive Director
Either Party may change the designated recipient of notices by so notifying the other Party in writing.

IX. Miscellaneous
A. Nothing in this Agreement is intended to create any rights in any third parties.

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7 B. If any provision of this Agreement is determined by a proper court to be invalid, illegal or unenforceable, such invalidity, illegality, or unenforceable shall not affect the other provisions of this Agreement and this Agreement shall remain in full force an effect without such invalid, illegal, or unenforceable provision.

C. Nothing contained in this Agreement is intended to create or shall in any event or under any circumstance be construed as creating a partnership or a joint venture between the Parties.

D. This Agreement shall benefit and bind the Parties and their respective permitted successors and assigns. This Agreement may be executed by electronic means and in counterparts, each of which shall be an original, but all of which shall constitute one and the same Agreement.
(Signatures on the following page)

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8 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date set forth above.

AGREED AND EXECUTED BY:

CITY OF DALY CITY CITY/COUNTY ASSOCIATION OF

GOVERNMENTS OF SAN MATEO COUNTY
By: By:

Name, Title Kaki Cheung, Executive Director
Date: Date:

By: By:

City Attorney Melissa Andrikopoulos, Counsel
Date: Date:

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9 EXHIBIT A
Smart Corridor equipment and devices and general agreement as to ownership, maintenance and operations responsibilities

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City Council Meeting Agenda Report Item # _____
Meeting Date: September 28, 2026
Subject: Approve Proposed Revision of Library Assistant III Job Specification (Civil Service)
Recommended Action
Staff recommends that the City Council adopt the proposed revisions to the attached Library Assistant III job specification.

Background/Discussion
The job specification has been updated to accurately reflect the duties and minimum requirements of the position.

The City Manager has approved the proposed civil service job specification and the City has met and conferred in good faith with the affected bargaining unit and, as a result, have agreed to the proposed job specification changes.

Fiscal Impact
There is no fiscal impact.

Summary/Conclusion
Staff is recommending that the City Council adopt the proposed revisions to the Library Assistant III civil service job specification.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Natalie Sakkal
Director of Human Resources
Attachment

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Page 77 of 142 ends

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City Council Meeting Agenda Report Item # _____
Meeting Date: September 28, 2026
Subject: Set Time and Place for Public Hearing on Proposed Substantial Amendment to FY26-27 HUD Action Plan
Recommended Action
Set Time and Place to conduct a public hearing on October 26, 2026, regarding a proposed Substantial Amendment to the FY26-27 Housing and Urban Development (HUD) Action Plan.

Background/Discussion
On April 27, 2026, the City Council approved the FY26-27 HUD One-Year Action Plan. The Action Plan allocated $761,336 to the development of the Early Learning Center (ELC) and $298,414 to the City’s residential rehabilitation program. The allocations assumed the ELC would be under construction by early 2027. Due to unanticipated project complexities, the ELC is slightly behind schedule, and the City risks being untimely in its expenditure of CDBG funds which could result in a reduction of future CDBG allocations. Due to the uncertainty of the schedule, staff is recommending transferring a portion of the allocation from the ELC project to the City’s residential rehab program which can provide grants to address capital repairs and improvements to deedrestricted rental affordable housing developments.

Pursuant to the City’s Community Participation Plan, Substantial Amendments to the Action Plan must be available for a 30-day public comment period prior to the public hearing and Council consideration. Notice of the Substantial Amendment has been published in The Examiner and made available on the City’s web site.

Summary/Conclusion
Staff recommends that the City Council conduct a public hearing on October 26, 2026, to consider the proposed Substantial Amendment to the FY26-27 Action Plan. Staff is available to provide any additional information desired by the Council members.

Respectfully submitted,
Lenelle Suliguin Michael Van Lonkhuysen
HCD Manager Acting Director of Economic and Community
Development

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City Council Meeting Agenda Report Item # _____
Meeting Date: September 28, 2026
Subject: Authorize the City Manager to Execute a Temporary License Agreement with Daly City Mitsubishi for the Vacant Property Located at Mission and Hillside Recommended Action
Authorize the City Manager to execute a temporary license with Daly City Mitsubishi for the purpose of storing vehicles as overflow in the operations of the auto dealership at 6399 Mission Street.

Background/Discussion
Daly City Mitsubishi has requested the use of a vacant lot owned by the City located adjacent to (north of) the 88 Hillside Apartments (APN 003 224 100) for the purpose of storing overflow vehicles as part of the ongoing operations of the auto dealership. Staff has determined that the temporary use of the lot by Mitsubishi would be beneficial to the City as well as to Mitsubishi to allow the auto dealership operations to expand. Given that the lot will eventually be marketed for development, the use of the lot would be temporary, with a maximum number of three years plus extensions.

The provisions of the temporary license include:
• License shall pay the City a fee of $3,500.00 per month. • Improvements. Prior to occupying the site, Licensee shall perform the following:
a. Grade and excavate the lot to receive compacted aggregate base (AB). The pavement section shall be designed by a licensed Civil Engineer and then submitted to the City’s Department of Public Works for review and approval.
b. Install a curb ramp from the Mission Street pavement edge to the property. The Licensee shall follow Caltrans Standard Plan A88A and/or City of Daly City Details S-2 and S-3. • The lease would commence on September 29, 2026, and remain in effect for three years until October 1, 2029. The License Agreement may be extended to a maximum of three years, with one-year renewals, with the City Manager’s approval. Any further extensions shall be submitted in writing 30 days prior to the expiration of the License, up to a maximum of three additional years and any such extension beyond October 1, 2032, shall require City Council approval.

Staff reviewed the proposal and determined that the conditions imposed under the temporary use would be beneficial to the City as an interim temporary use of the vacant lot.

Summary/Conclusion
Staff recommends that the City Council authorize the City Manager to execute a temporary license with the Daly City Mitsubishi for use of the vacant lot.

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City Council Agenda Report
Authorize the City Manager to Execute a Temporary License Agreement with September 28, 2026 Daly City Mitsubishi for the Vacant Property Located at Mission and Hillside Page 2 of 2 Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Micheal VanLonkhuysen
Acting Director of Economic and Community
Development

Attachments: Draft Temporary Use Agreement

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1 TEMPORARY LICENSE FOR THE

USE OF PROPERTY
This License is entered by and between the City of Daly City ("City") and the Daly City Mitsubishi ("Licensee"). This License is made and executed on September 29, 2026 in Daly City, California.

WHEREAS, the City is the owner of certain real property located at Mission Street and Hillside, which is a vacant and unimproved lot, and more specifically described in the attached Exhibit “A”, and incorporated into this Agreement by this reference (hereinafter described as the “Premises”), in the City of Daly City; and
WHEREAS, the Licensee desires to utilize the Premises for the purpose of storing vehicles as overflow to the Licensee’s auto dealership operations located at 6399 Mission Street in Daly City.

NOW, THEREFORE, the parties agree as follows:

1. Temporary Use. City grants Licensee a revocable License for the temporary use of the Premises for the purpose of storing vehicles as part of the Licensee’s auto dealership operation. Licensee shall not use the Premises for any other purpose without written consent from the City.

2. License Fee. License shall pay the City a fee of $3,500.00 per month.

3. Improvements. Prior to occupying the site, Licensee shall perform the following:
a. Grade and excavate the lot to receive compacted aggregate base (AB). The pavement section shall be designed by a licensed Civil Engineer and then submitted to the City’s Department of Public Works for review and approval. b. Install a curb ramp from the Mission Street pavement edge to the property.

The Licensee shall follow Caltrans Standard Plan A88A and/or City of Daly City Details S-2 and S-3.

4. Term. This License shall commence on September 29, 2026 and shall remain in effect for 3 years until October 1, 2029. The License Agreement may be extended to a maximum of three years, with one-year renewals, with the City Manager’s approval. Licensee shall submit in writing 30 days prior to the termination date a request to extend the License an additional year. Any such extension of the License shall be by written approval from the City Manager.

Any further extensions shall be submitted in writing 30 days prior to the expiration of the License, up to a maximum of 3 additional years and any such extension beyond October 1, 2032, shall require City Council approval.

5. Top of the Hill Festival Conditions. Licensee agrees and understands that the Lot will be vacated during the following dates in order to allow the City to use

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2 the Lot before, during and after the City’s annual Top of the Hill Festival: 3 days prior to the 3rd Saturday in October each year, and 2 days following the 3rd Saturday in October. The City shall have the right to use the Lot exclusively during those dates and the Lot will be included in the Top of the Hill Festival Event.

6. Termination. Licensee agrees and understands that the City grants this as temporary use and that the City is currently in the process of marking the Premises for future development. The City may terminate this License Agreement with ninety (90) days written notice. The Licensee may terminate this License with thirty (30) days written notice to the City. Upon termination, Licensee shall vacate the Premises and return the Premises to its original condition, absent the improvements listed above. Prior to vacating the site, the Licensee shall:
a. Remove the curb installed under this Agreement, unless directed otherwise by the City’s Department of Public Works. The Licensee shall follow Caltrans Standard Plan A88A and/or City of Daly City Details S-2 and S-3. b. Re-install street tree removed during the curb ramp installation together any decorative sidewalk paving removed.

7. Protection of City Property. Licensee agrees to maintain the Premises in proper condition and Licensee shall be responsible and liability for any and all damages to City’s structure or property, due directly or indirectly to Licenses’ use of the Premises pursuant to this License Agreement.

8. Business License. Licensee must maintain a Daly City Business License in good standing for the duration of the term of this License.

9. Subleasing of Premises Prohibited. Licensee is not permitted to sublease or grant third party use of any part of Premises. Any violation of this restriction will result in the revocation of the Licensee’s License.

10. Indemnification and Hold Harmless. Licensee shall indemnify and hold harmless the City, its officers, elected officials and employees against any and all suits, claims or actions arising out of any injury to persons or property that may occur, or that may be alleged to have occurred, caused by an act or omission of Licensee or its employees, contractors or agents, arising from the use the Premises under this License Agreement. Licensee further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses arising therefore, incurred in connection therewith; and if any officials or employees, Licensee shall, at its own expense, satisfy and discharge same.

11. Insurance. Licensee agrees to maintain in force during the term of this License Agreement, at its cost and expense, general liability insurance, including coverage for contractual liability. The policy or said policies of said insurance shall name as additional insureds the City, its officers, agents and employees.

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3 Said policy of policies shall insure said persons against loss or liability for damage for bodily injury, death or property damage permitted to be occupied or used, with a minimum of $2 million per occurrence. Such insurance shall be primary and non-contributory. Licensee shall furnish a certificate of insurance and endorsement to the City Attorney’s Office for approval upon use of the property.

12. Non-Discrimination. Licensee shall not discriminate on the basis of a person’s race, color, creed, religion, national origin, ancestry, age, sex, sexual orientation, gender identity, domestic partner status, marital status, disability during any activities or services provided on the Premises during the term of this License.

13. Licensee understands that as a licensee, it has no property interest in the Premises.

14. Assignability. Licensee shall not assign, sublicense or otherwise transfer its rights under this License to any other party.

15. Notices. All notices to the City shall be sent to:

Thomas J. Piccolotti
City Manager
City of Daly City
333 90th Street
Daly City, CA 94015
Email: [email protected]
With a Copy to:

City Attorney’s Office
333 90th Street, 3rd
Daly City, CA 94015
All notices to the Licensee shall be sent to:

Eli Abdalla
General Manager
Daly City Mitsubishi
6399 Mission Street
Daly City, CA 94014

16. This License contains the entire understanding between the parties relating to the rights and obligations assumed under it. Any amendments or modifications to this License will not be effective unless contained in a writing issued by the City.

17. This License shall be interpreted and construed under the laws of the State of California.

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4 IN WITNESS WHEREOF, the parties have executed this License as of the date and first above written.

CITY LICENSEE
_________________ __ _________________
By: Thomas J. Piccolotti By: Eli Abdalla
City Manager Title: General Manager, Daly City
Mitsubishi

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City Council Meeting Agenda Report Item _____
Meeting Date: September 28, 2026
Subject: Introduction and First Reading - Amendments to Daly City Municipal Code Sections

5.104.20 and 5.104.170 – Cannabis Equity Program Eligibility Criteria Recommendation
Staff recommend that the City Council: Conduct the public hearing and introduce an Ordinance amending Sections 5.104.20 and 5.104.170 of Chapter 5.104 of Title 5 of the Daly City Municipal Code regarding Cannabis Equity Program eligibility criteria and related definitions.

Background
The proposed ordinance amends Section 5.104.170 of the Daly City Municipal Code regarding eligibility criteria for the City’s Cannabis Equity Program. The amendment will align the City’s eligibility requirements with its Cannabis Equity Program implementation and State grant requirements.

The proposed Ordinance also amends Section 5.104.20 to correct existing cross-references in the definitions of “Equity Applicant” and “Equity Business” so that those definitions properly refer to the eligibility criteria contained in Section 5.104.170. Section 5.104.170 currently requires an individual seeking to qualify as an Equity Applicant to meet all the identified eligibility criteria.

The proposed Ordinance would amend Section 5.104.170 to provide that an individual may qualify by meeting one or more of the specified eligibility criteria.

Discussion
Under the existing language, an individual must meet all the eligibility criteria identified in Section

5.104.170 to qualify as an Equity Applicant. The proposed amendment changes this requirement so that an individual may qualify by meeting one or more of the following eligibility criteria: (1) Cannabis-Related Offense History; (2) Income Requirements; or (3) Connection to an Affected Community. An individual seeking to qualify under the Income Requirements criterion must continue to satisfy both the applicable household income and personal net worth requirements.

The Ordinance also corrects cross-references in Section 5.104.20 and makes minor drafting and grammatical corrections in Section 5.104.170.

Fiscal Impact
There is no direct fiscal impact associated with introduction of the proposed Ordinance.

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Introduction and First Reading - Amendments to Daly City Municipal Code Sections 5.104.20 and

5.104.170 – Cannabis Equity Program Eligibility Criteria Date: September 28, 2026
Conclusion
The proposed amendment provides for continued implementation of the City’s Cannabis Equity Program and alignment of the Program’s eligibility requirements.

Staff recommends that the City Council conduct the public hearing and introduce the Ordinance.

Respectfully submitted,
Maybelle Manio Timothy J. Nevin
Economic Development Program Manager Assistant City Manager/Interim Director of Finance & Administrative Services
Attachments
• Proposed Ordinance Amending Sections 5.104.20 and 5.104.170

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1 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 5.104 OF TITLE 5 OF THEMUNICIPAL CODE
RE: COMMERCIAL CANNABIS REGULATIOS
The City Council of the City of Daly City, DOES ORDAIN as follows:

SECTION 1. Section 5.104.20, subsections (O) and (P) of Chapter 5.104 are hereby amended to read as follows:

Section 5.104.20 Definitions.
(O) “Equity Applicant” means an individual who meets the criteria in Section

5.104.170(A).
(P) “Equity Business” means a business that meets the criteria in Section

5.104.170(B)
SECTION 2. Section 5.104.170 of Chapter 5.104 is hereby amended to the Daly City Municipal Code to read as follows:

5.104.170 Equity Program Eligibility.

A. To be eligible for the Equity Program as an Equity Applicant, an individual must meet one or more of the following criteria:

1.Cannabis Related Offense History.
a. During the period of 1971—2016, was arrested for or adjudicated a ward of the juvenile court for a Cannabis-Related Offense, under California law or equivalent federal or state law; or

2. Income Requirements.
a. Has an annual household income at or below eighty percent of the area median income (AMI) for San Mateo County, adjusted for household size, as determined by the U.S. Department of Housing and Urban Development (HUD), in either the calendar year preceding or the year of submitting the equity verification application; or
b. Has a personal net worth less than two hundred and fifty thousand dollars.

3. Connection to Affected Community.
a. Demonstrates a tangible connection to a community historically impacted by cannabis criminalization. This may be established through one or more of the following criteria:
i. Currently resides in, or for at least five cumulative years has resided in, a community identified by the city as disproportionately impacted by cannabis enforcement;
ii. Was displaced from such a community due to eviction, foreclosure, or loss of housing assistance;
iii. Attended school in such a community for a cumulative total of at least five years;

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2 iv. Was placed in the foster care system in San Mateo County.

B. Equity Business Eligibility.

1. To qualify as an equity business, the business must be majority-owned (fifty-one percent or more) by one or more equity applicants, and such ownership must be maintained for a minimum of three years.

SECTION 3. Environmental Determination. The City Council of the City of Daly City finds and determines that the implementation of measures described in this Chapter is in furtherance police powers of the City of Daly City, and that these purposes are exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code, as provided in categorical exemption Classes 1, 4, 5, 7, 8, 9, and or 21 of the CEQA Guidelines (Title 14, California Code of Regulations, Sections 15301-15329).

SECTION 4. Effective Date and Publication: This Ordinance shall be in full force and effect thirty (30) days from and after its passage. This Ordinance shall be published according to law.

SECTION 5. Severability: If any section, subsection or sentence of this Ordinance is found by a court of competent jurisdiction to be invalid or unlawful, the City Council finds and declares that the remainder of this ordinance would be and is enforceable and would have been adopted notwithstanding the finding of invalidity as to any section, subsection or sentence.

Introduced this day of , 2026.

Passed and adopted as an Ordinance of the City of Daly City at a regular meeting of the City Council of the City of Daly City held on the day of , 2026, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

CITY CLERK OF THE CITY OF DALY CITY
APPROVED:

MAYOR OF THE CITY OF DALY CITY

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City Council Meeting Agenda Report Item # _____
Meeting Date: September 28, 2026
Subject: A RESOLUTION REGARDING COMPLIANCE WITH AND CONTINUED IMPLEMENTATION OF RESOLUTION NO. 25-150 REGARDING THE

CENSURE OF COUNCILMEMBER PAMELA DIGIOVANNI
Recommendation
Adopt a Resolution to confirm the current status of compliance with Resolution No. 25-150; reaffirm mandatory training and City Manager oversight; clarify conditions for reinstatement of privileges or assignments; and direct continued implementation of Resolution No. 25-150.

Background
On January 22, 2024, the City Council adopted Resolution No. 24-21, formally admonishing Councilmember Pamela DiGiovanni after an investigation into allegations of abuse, harassment, and bullying involving the City Manager and City staff.

Resolution No. 24-21 states that the investigation found 21 acts of abuse, harassment, and bullying, and the Council identified and sustained five principal findings. Based on those findings, the Council formally admonished Councilmember DiGiovanni, urged her to apologize to the City Manager and City staff, and urged her to attend anger-management in-the-workplace and related behavioral training. The Council further provided that if the behavior continued, it would proceed to formal censure.

Following the admonishment, additional complaints concerning Councilmember DiGiovanni were submitted and investigated. The allegations identified in Resolution No. 25-150 included culturally insensitive and dismissive remarks toward staff at City-sponsored events; directing an off-duty City employee to assist with a personal dispute; a public verbal confrontation with another Councilmember during a school event; improper directives to City staff; and a pattern of hostile, disruptive, and inappropriate behavior in her capacity as an elected official.

The City retained an independent investigator to review the additional complaints. Resolution No. 25-150 states that the investigation substantiated the new allegations, documented Councilmember DiGiovanni's refusal to participate in the investigative process and found violations of Daly City Municipal Code sections 2.02.080 and 2.02.090 relating to the City Manager's administrative authority and relations with City staff. After notice and an opportunity to respond, the City Council held a public censure hearing on October 27, 2025, and adopted Resolution No. 25-150, formally censuring Councilmember DiGiovanni.

Key Measures from Resolution No. 25-150 include:

1. Prohibition on use of City vehicles;

2. A strong recommendation for a written apology to City staff;

3. Removal from all Council committees and task forces and participation in City-paid conferences or seminars;

4. Suspension of ceremonial certificate requests or preparation by City staff;

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2 5. Mandatory training concerning harassment prevention, public ethics and professional conduct, and anger management and sensitivity;

6. City Manager oversight of directive communications with City staff; and

7. No reinstatement of privileges or assignments until full training compliance is documented and accepted by the Council.

Since adoption of Resolution No. 25-150, City administration has continued to implement the Council's direction. Human Resources has coordinated opportunities to complete the mandatory training, while City management has continued to administer the requirements for communications with City staff. As of the date of this report, City records do not document completion of all mandatory training required by Resolution No. 25-150, and the Council has not accepted compliance with the training. Accordingly, the conditions established for reinstatement of privileges or assignments have not been satisfied.

City administration has also received multiple employee reports concerning interactions with Councilmember DiGiovanni that employees perceived as intimidating or concerning. Those reports have required documentation, administrative review, and follow-up by City management and/or Human Resources.

On August 6, 2026, the Mayor and Vice Mayor, acting as the City Council Ethics Committee, reviewed implementation of and compliance with Resolution No. 25-150. After that review, the Ethics Committee referred the matter to the full City Council to consider the current compliance status and continued implementation of Resolution No. 25-150.

Discussion
A. Mandatory Training, Six-Month Period and Reinstatement Resolution No. 25-150 requires Councilmember DiGiovanni to complete mandatory training before privileges or assignments subject to the training conditions are reinstated. Human Resources has provided training opportunities, and the City has offered to assist with scheduling and accommodation as needed.

However, as of the date of this report, City records do not document completion of all required training or the Council's acceptance of training compliance, meaning the reinstatement conditions remain unmet. Resolution No. 25-150 provides that the measures identified in Section 3 will remain in effect for six months. The proposed Resolution does not extend every original measure beyond that period. It clarifies that expiration of the six months does not, by itself, satisfy the separate training-based condition for reinstatement of privileges or assignments.

While an applicable ceremonial privilege or assignment remains withheld pursuant to the reinstatement condition, City staff will not designate, schedule, coordinate, or prepare ceremonial materials for Councilmember DiGiovanni for that assignment. Nothing in the proposed Resolution prohibits Councilmember DiGiovanni from attending an event otherwise open to the public.

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3 B. Staff Communications and Continued Administrative Implementation Resolution No. 25-150 mandates City Manager oversight of directive communications between Councilmember DiGiovanni and City staff consistent with the Council's prior direction concerning staff communications. Since adopting the censure, City administration has received multiple employee reports about interactions employees perceived as intimidating or concerning. Those reports have required management and Human Resources review and demonstrate the need for clear administrative procedures.

The proposed Resolution reinforces City Manager oversight, stating that requests involving employee work, research, preparation of materials, staff time, City services, City resources, or operational action must go through the City Manager or an authorized administrative process.

Ordinary communications with employees are still permitted, and staff will document and report interactions they reasonably believe involve an improper directive or implicate Resolution No. 25- 150 or applicable City policies.

C. Scope of Proposed Action
The proposed Resolution confirms the current compliance status, reaffirms prior requirements, clarifies procedures, and directs continued implementation. It does not adjudicate reported interactions as new misconduct or impose a new censure. The City Manager and Human Resources will continue to review interactions that may involve Resolution No. 25-150 and act as needed.

Nothing in the proposed action prohibits ordinary communications with City employees, constituent communications, attendance at events otherwise open to the public, or lawful participation in City Council proceedings.

Summary/Conclusion
Resolution No. 25-150 requires training to reinstate privileges or assignments. City records do not currently document completion of all required training, and the Council has not accepted compliance.

The conditions for reinstatement remain unsatisfied.

Following its August 6, 2026, review, the Ethics Committee referred the matter to the full City Council for consideration and direction regarding continued implementation of Resolution No. 25- 150.

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4 Council Determination
The proposed Resolution is presented to the City Council for its consideration and determination regarding the current status of compliance with Resolution No. 25-150 and the continued implementation of the Council's prior direction.

Staff is available to answer any questions for the Mayor and City Council.

Respectfully submitted,
Rose Zimmerman
City Attorney

Attachments
Attachment 1: Draft Proposed Resolution Regarding Compliance With and Continued Implementation of Resolution No. 25-150
Attachment 2: Resolution No. 25-150, Resolution of Censure of Councilmember Pamela DiGiovanni Attachment 3: Resolution No. 24-21, Resolution Admonishing Councilmember Pamela DiGiovanni

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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY

REGARDING COMPLIANCE WITH AND CONTINUED IMPLEMENTATION OF RESOLUTION NO. 25-150 REGARDING THE CENSURE OF COUNCILMEMBER

PAMELA DIGIOVANNI
WHEREAS, on January 22, 2024, following an independent investigation, the City Council adopted Resolution No. 24-21 formally admonishing Councilmember Pamela DiGiovanni; and WHEREAS, in Resolution No. 24-21, the City Council sustained findings that Councilmember DiGiovanni engaged in conduct involving misuse of City vehicles, improper demands involving police officers and staff, and unprofessional and hostile treatment of City staff; and WHEREAS, Resolution No. 24-21 formally admonished Councilmember DiGiovanni, urged her to apologize to the City Manager and City staff, urged her to attend anger-management-in-theworkplace and related behavioral training, and provided that continued behavior could result in formal censure; and
WHEREAS, following additional complaints and investigation, the City Council conducted a public censure hearing on October 27, 2025, and adopted Resolution No. 25-150 formally censuring Councilmember DiGiovanni; and
WHEREAS, Resolution No. 25-150 expressed the Council's strong disapproval of conduct including harassment and culturally insensitive behavior, improper use of position to direct City staff, hostile conduct toward a fellow Councilmember, improper directives and orders to City staff in violation of the Daly City Municipal Code, and noncompliance with prior corrective actions and refusal to cooperate in an official investigation; and
WHEREAS, Resolution No. 25-150 adopted measures including restrictions on specified privileges and assignments; mandatory training; City Manager oversight of directive communications with City staff; and no reinstatement of privileges or assignments until full compliance with the training requirements is documented and accepted by the Council; and WHEREAS, City staff has coordinated opportunities for completion of the mandatory training required by Resolution No. 25-150, but City records do not document completion of all required training or acceptance of training compliance by the Council; and WHEREAS, the conditions established by Resolution No. 25-150 for reinstatement of privileges or assignments therefore have not been satisfied; and
WHEREAS, since Resolution No. 25-150, City administration has continued to receive multiple employee reports concerning interactions with Councilmember DiGiovanni that have required documentation, administrative review, and follow-up, demonstrating a continuing need for clear and consistent administrative procedures concerning implementation of the Council's prior direction; and

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2 WHEREAS, on August 6, 2026, the Mayor and Vice Mayor, acting as the City Council Ethics Committee, reviewed implementation of and compliance with Resolution No. 25-150 and referred the matter to the full City Council for consideration of the current compliance status and continued implementation of Resolution No. 25-150; and
WHEREAS, the City Council now desires to consider the Ethics Committee referral, determine the current compliance status, reaffirm its prior direction, and clarify the continued administrative implementation of Resolution No. 25-150;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Daly City as follows:

SECTION 1. MANDATORY TRAINING AND CONDITION OF REINSTATEMENT.

The City Council determines that City records do not document completion of all mandatory training required by Resolution No. 25-150 or the Council's acceptance of training compliance.

Accordingly, the conditions established by Resolution No. 25-150 for reinstatement of privileges or assignments have not been satisfied.

Councilmember DiGiovanni remains responsible for completing the mandatory training. Human Resources shall continue to make reasonable opportunities available for completion and shall address any appropriate accommodation consistent with applicable law and City procedures.

Nothing in this Resolution authorizes disclosure of confidential medical or accommodation information.

SECTION 2. CITY MANAGER OVERSIGHT OF DIRECTIVE COMMUNICATIONS.

The City Council reaffirms the City Manager oversight requirement imposed by Resolution No. 25- 150. Consistent with Resolution No. 25-150 and Daly City Municipal Code sections 2.02.080 and

2.02.090, City Manager oversight shall continue to apply to directive communications between Councilmember DiGiovanni and City staff.

Any request requiring City employee work, research, preparation of materials, staff time, provision of City services, use of City resources, or operational action shall be submitted to the City Manager or through a process authorized by the City Manager.

A City employee receiving such a request directly shall refer the request to the City Manager or designee and shall not undertake the requested work unless authorized through the City's administrative chain of command.

Nothing in this Section prohibits ordinary or incidental communications, information routinely provided to Councilmembers, communications during public meetings, or communications otherwise authorized by the City Manager or required by law.

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3 SECTION 3. EMPLOYEE REPORTING AND ADMINISTRATIVE REVIEW.

City employees shall document and promptly report to the City Manager, Human Resources Director, or appropriate designee interactions that the employee reasonably believes may involve an improper directive or otherwise implicate Resolution No. 25-150 or applicable City policies.

The City Manager and Human Resources Director shall review such reports and determine the appropriate administrative response within their respective authority.

Nothing in this Section constitutes a City Council determination that any particular reported postcensure interaction constitutes misconduct or an additional violation of Resolution No. 25-150.

SECTION 4. PRIVILEGES, ASSIGNMENTS, AND CEREMONIAL FUNCTIONS.

Resolution No. 25-150 provides that privileges or assignments shall not be reinstated until the City Council documents and accepts full compliance with the required training.

Where no law requires a particular individual Councilmember to perform the function, designation of an individual Councilmember to present proclamations, certificates of recognition, commendations, ceremonial awards, or similar City-sponsored recognition is a discretionary Citysupported ceremonial assignment.

While an applicable ceremonial privilege or assignment remains withheld pursuant to Resolution No. 25-150, City staff shall not designate, schedule, or coordinate Councilmember DiGiovanni to perform such an assignment on behalf of the City or prepare ceremonial materials for presentation by or on her behalf.

Nothing in this Section prohibits Councilmember DiGiovanni from attending an event otherwise open to the public.

SECTION 5. SIX-MONTH PERIOD AND CONDITION OF REINSTATEMENT.

Nothing in this Resolution extends every measure originally imposed by Resolution No. 25-150 beyond the six months stated in Section 3 of that Resolution.

Expiration of that period does not, by itself, satisfy the separate condition contained in Resolution No. 25-150 requiring training compliance to be documented and accepted by the City Council before reinstatement of privileges or assignments subject to that condition.

Unless the City Council otherwise acts, privileges or assignments subject to that condition shall not be reinstated until the required training has been completed, compliance has been documented, and the City Council has accepted such compliance.

SECTION 6. SCOPE OF RESOLUTION.

This Resolution considers the Ethics Committee referral, determines the current compliance status, reaffirms requirements previously imposed by the City Council, and clarifies continued administrative implementation of Resolution No. 25-150.

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4 The City Council does not through this Resolution adjudicate any reported post-censure interaction as new misconduct, determine that any particular subsequent communication or occurrence constitutes an additional violation, or impose a new censure.

Nothing in this Resolution limits Councilmember DiGiovanni's lawful participation in City Council meetings, deliberation, or voting where otherwise permitted by law; communications with constituents; attendance at events open to the public; or other powers conferred by law.

SECTION 7. CONTINUED IMPLEMENTATION.

The City Council reaffirms the mandatory training and City Manager oversight requirements previously imposed by Resolution No. 25-150 and directs their continued administration consistent with Resolution No. 25-150 and this Resolution. The City Manager, Human Resources Director, City Clerk, City Attorney, and other appropriate City officials are directed to continue implementation consistent with their respective authority and applicable law.

The City Manager and Human Resources Director shall maintain appropriate records concerning training compliance and reported interactions that may implicate Resolution No. 25-150 or applicable City policies and shall address such matters through established City procedures.

If circumstances warrant consideration of additional City Council discipline, the matter may be presented separately to the City Council through applicable procedures.

SECTION 8. EFFECTIVE DATE.

This Resolution shall take effect immediately upon adoption.

I hereby certify the foregoing to be a true copy of a Resolution adopted by the City Council of Daly City, California, at a regular meeting thereof held on the day of , 2026, by the following vote of the members thereof:

AYES, and in favor thereof, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

CITY CLERK OF THE CITY OF DALY CITY
APPROVED:

MAYOR OF THE CITY OF DALY CITY

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1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY

CENSURING COUNCILMEMBER PAMELA DIGIOVANNI FOR VIOLATIONS OF THE

DALY CITY MUNICIPAL CODE, CITY POLICIES, AND ETHICAL STANDARDS IN ACCORDANCE WITH THE CITY OF DALY CITY’S CENSURE POLICY
WHEREAS, on January 22, 2024, the City Council adopted Resolution No. 24-21, formally admonishing Councilmember Pamela DiGiovanni following substantiated findings by an independent investigation conducted by Ellis Investigations that she had misused City resources, issued improper directives to police and staff, and engaged in hostile conduct toward the City Manager. The Resolution directed Councilmember DiGiovanni to complete training and issue an apology; WHEREAS, Councilmember DiGiovanni failed to comply with the directives set forth in Resolution No. 24-21, refusing to complete any mandated training or issue an apology, thereby disregarding the Council’s prior corrective measures;
WHEREAS, Between March and August 2025, multiple formal complaints were submitted by City employees and witnesses alleging that Councilmember DiGiovanni continued to engage in misconduct, including:
• Making culturally insensitive and dismissive remarks toward staff at City-sponsored events; • Inappropriately directing an off-duty City employee to assist in resolving a personal dispute; • Engaging in a public verbal confrontation with another Councilmember during a school event; • Engaging in improper directives to City staff;
• Displaying a pattern of hostile, disruptive, and inappropriate behavior in her capacity as an elected official;
WHEREAS, in April 2025, the City retained a neutral third-party investigator Van Dermuyden Makus to review the new complaints. That investigation was completed in September 2025 and substantiated the new allegations. The report also documented Councilmember DiGiovanni’s refusal to participate in the investigative process despite multiple outreach attempts; WHEREAS, the investigation found violations of the Daly City Municipal Code, including:
• Section 2.02.080 – Entrustment of Administrative Service, for bypassing the City Manager’s authority and giving direct orders to staff;
• Section 2.02.090 – Relations with City Staff, for creating an environment of intimidation and directing employees outside of proper channels;
WHEREAS, pursuant to the City Council’s adopted Censure Policy (Resolution No. 25-47), Councilmember DiGiovanni was given formal notice of the censure hearing on October 1, 2025, including redacted investigation reports and supporting documentation. The hearing was held on October 27, 2025, following a requested continuance from Councilmember DiGiovanni; and 25-150

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2 WHEREAS, the City Council reviewed and considered the full administrative record presented at the hearing, including:
• The 2025 Independent Investigation Report;
• Redacted witness statements and complaints;
• Internal memoranda from Human Resources and the City Manager; and • Prior Council Resolution No. 24-21 documenting prior discipline and noncompliance.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Daly City as follows:

SECTION 1. The City Council finds that Councilmember Pamela DiGiovanni has repeatedly violated the standards of professional conduct, abused her position, and disregarded prior Council directives.

Her conduct has caused disruption within City operations and diminished public trust in City governance.

SECTION 2. The City Council issues a formal censure of Councilmember Pamela DiGiovanni, expressing its strong disapproval of her conduct, including:
• Harassment and culturally insensitive behavior;
• Improper use of her position to direct City staff;
• Hostile conduct toward a fellow Councilmember;
• Improper directives and orders to City staff in violation of the City of Daly City Municipal Code; and
• Noncompliance with prior corrective actions and refusal to cooperate in an official investigation.

SECTION 3. The following measures are adopted and will remain in effect for six (6) months:

1. Prohibition on the use of any City vehicle for official or personal purposes;

2. A strong recommendation urging that Councilmember DiGiovanni issue a written apology to City staff acknowledging the impact of her conduct and the need to rebuild trust;

3. Removal from all Council committees, task forces, and participation in City-paid conferences or seminars;

4. Suspension of ceremonial certificate requests or preparation by City staff on Councilmember DiGiovanni’s behalf;

5. Mandatory participation in and completion of trainings, coordinated through the Human Resources Department, including:

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3 o Harassment prevention;
o Public ethics and professional conduct;
o Anger management and sensitivity;

6. City Manager oversight of all directive communications between Councilmember DiGiovanni and City staff, consistent with Daly City Municipal Code §§ 2.02.080 and 2.02.090; and

7. No reinstatement of any privileges or assignments until full compliance of trainings are documented and accepted by the Council.

SECTION 4. The 2025 investigative report and administrative record are hereby attached as Exhibit “A” as the basis for this Resolution.

SECTION 5. The City Council further calls upon Councilmember DiGiovanni to fulfill her ethical obligations and conduct herself in a professional and lawful manner going forward, consistent with the Daly City Municipal Code, and adopted policies.

I hereby certify the foregoing to be a true copy of a Resolution adopted by the City Council of Daly City, California, at a special meeting thereof held on the 27th day of October , 2025, by the following vote of the members thereof:

AYES, and in favor thereof, Councilmembers: Manalo, Proaño, Sylvetser, Daus-Magbual
NOES, Councilmembers: None
ABSENT, Councilmembers: DiGiovanni

CITY CLERK OF THE CITY OF DALY CITY
APPROVED:

RODERICK DAUS-MAGBUAL

MAYOR OF THE CITY OF DALY CITY
Attachment Exhibit “A”

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RESOLUTION NO. 24-21

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY

ADMONISHING COUNCILMEMBER PAMELA DIGIOVANNI
WHEREAS, on or about March 3, 2023, the City Manager sent a memo to the City Council describing recent and repeated acts of unprofessional conduct by Councilmember DiGiovanni experienced by the City Manager and City staff. A copy of the memo is available upon request from the City Clerk. In the memo, the City Manager alleged abuse, harassment and bullying by Councilmember DiGiovanni against him and City staff; and WHEREAS, the City Manager and City Council take all complaints of alleged illegal or inappropriate behavior against or among City staff and the City Council seriously. To that end, upon receipt of the complaint, the Human Resources Department retained an independent investigator, Ellis Investigations Corporation, to investigate the alleged acts of abuse, harassment and bullying by Councilmember DiGiovanni. The investigation commenced April 7, 2023. The investigator reported its findings to the City Council Ethics Committee, which were subsequently shared in redacted form to protect the confidentiality of witnesses most of whom were City staff, with the City Council and Councilmember DiGiovanni; and WHEREAS, the Investigation Report found that Councilmember DiGiovanni engaged in twenty-one (21) acts of abuse, harassment and bullying of City staff; and WHEREAS, the City Council identified five (5) major violations that created a hostile work environment by Councilmember DiGiovanni; and
WHEREAS, Councilmember DiGiovanni was provided the opportunity to respond to the allegations through a request from the investigator to meet with and interview Councilmember DiGiovanni, which Councilmember DiGiovanni refused; and WHEREAS, based on the thorough investigation of the allegations, including interviews of all witnesses the investigator deemed relevant, the investigator addressed each of the allegations and issues raised, and made findings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Daly City that it does hereby rely upon and sustains the following findings of the independent investigator’s report, a redacted copy of which is attached hereto and made a part hereof, that Councilmember DiGiovanni:

1. Kept City vehicles for extended periods in violation of the City policy on personal use of City vehicles;

2. Used City vehicles for personal purposes in violation of the City policy on personal use of City vehicles;

3. Used City vehicles for political campaigns purposes;

4. Improperly demanded police officers and staff to remove patrols from City events; and

5. Treated City staff unprofessionally and in a hostile manner.

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BE IT FURTHER RESOLVED by the City Council of the City of Daly City that:

1. The City Council admonishes Councilmember DiGiovanni based on the findings above, and for her unprofessional and hostile behavior towards the City Manager and City staff; and

2. The City Council urges Councilmember DiGiovanni to apologize to the City Manager and City staff (as a whole) through virtual platforms, or at a City Council meeting, for treating City staff unprofessionally and in a hostile manner; and

3. The City Council urges Councilmember DiGiovanni to attend anger management in the workplace training and related behavior training in order to treat City staff professionally and

4. The City Council finds that should such behavior continue, the City Council will proceed to formal censorship of Councilmember DiGiovanni based upon the findings in the August 15, 2023, Investigation Report and

5. The City Council directs staff to refer this matter to the San Mateo County District Attorney’s Office and the California Fair Political Practices Commission.

I hereby certify the foregoing to be a true copy of a Resolution adopted by the City Council of Daly City, California, at a regular meeting thereof held on the 22nd day of January , 2024, by the following vote of the members thereof:

AYES, and in favor thereof, Councilmembers: Buenaventura, Daus-Magbual, Manalo NOES, Councilmembers: None
ABSENT, Councilmembers: Sylvester

CITY CLERK OF THE CITY OF DALY CITY
APPROVED:

JUSLYN C. MANALO

MAYOR OF THE CITY OF DALY CITY

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City Council Meeting Agenda Report Item # _____
Props Meeting Date: September 28, 2026
Subject: Award of Bid to Golden State Construction & Utility, Inc. for the Callan Boulevard Water Main Replacement Project
Recommended Action
Staff recommends that the City Council:

1. Approve the design documents for the Callan Boulevard Water Main Replacement Project;

2. Affirm the CEQA determination of Categorical Exemption;

3. Accept all responsive bids and award an Agreement for the Base Bid to Golden State Construction & Utility, Inc in the amount not to exceed $1,350,100 (which includes the base bid of $1,174,000 and a 15% construction contingency); and

4. Authorize the City Manager to execute all necessary contracts to complete the project.

Background
The existing water main on Callan Boulevard is in the hillside above the Serramonte Shopping Center between Clarinada Avenue and Serramonte Boulvard. The water main is located behind fencing, below several mature trees and within an area difficult to access. Over the years, multiple leaks have occurred along this section of water main. Several trees are also located above the water main, with roots extending into the vicinity of the pipeline. Because of the difficult access, recurring leaks, and potential concerns related to hillside erosion and the need to provide adequate flows, staff retained EKI Environment & Water Inc. to evaluate and design the replacement and relocation of the water main.

Discussion
Design of the Callan Boulevard Water Main Replacement Project was completed in July 2026. The project consists of installing 2,170 linear feet of 12-inch diameter polyvinyl chloride (PVC) pipe and replacing a pressure reducing valve station at the intersection of Callan Boulevard and Clarinada Avenue. The project will improve the City’s ability to safely and reliably provide potable water and fire flows to large portions of the City’s downstream pressure zones. The project was advertised for competitive bids, which were publicly opened on August 13, 2026, at 2:00 p.m. in the City Hall Clerk’s office. A total of nine bids were received.

The four lowest bids are summarized below:

Contractor Bid
Golden State Construction & Utility, Inc. $1,174,000
Ace-High Engineering $1,426,357
Ghilotti Construction Company $1,551,340
GSW Construction, Inc. $1,552,718
Golden State Construction & Utility, Inc. submitted the lowest bid in the amount of $1,174,000.

Fiscal Impact
Sufficient funds are available in the Water Capital Fund: Water Main Improvements: 441-752-00-55108 to fund this action.

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Summary/Conclusion
Staff recommends that the City Council:

1. Approve the design documents for the Callan Boulevard Water Main Replacement Project;

2. Affirm the CEQA determination of Categorical Exemption;

4. Authorize the City Manager to execute all necessary contracts to complete the project.

Staff is available to provide any additional information if desired by the Mayor or Councilmembers.

Respectfully submitted,

Joshua Cosgrove Michael Patolo
Director of Water and Wastewater Resources Water & Wastewater Maintenance Manager

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1 ORDINANCE NO. 1493

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17.47 RE: INCLUSIONARY HOUSING
The City Council of the City of Daly City, DOES ORDAIN as follows:

SECTION 1. Sections 17.47.020(G) and (H) of the Daly City Municipal Code are hereby amended to read as follows:

17.47.020 Findings.

G. A limited preference for income-eligible households that live or work in Daly City supports the city's goals of providing affordable housing opportunities, maintaining community ties, and providing affordable housing near employment.

H. Prior to adopting a local live/work preference, the city obtained a Disparate Impact Analysis evaluating the proposed preference. Based on that analysis, the city has determined that seventy (70) percent of applicable affordable units shall be subject to the combined live/work preference and shall be implemented consistently with applicable fair housing and other legal requirements.

SECTION 2. Section 17.47.030 of the DalyCity Municipal Code is hereby amended to read as follows:

17.47.030 Definitions.
“City-assisted affordable unit” means an affordable unit receiving City financial assistance, City-owned land or property provided for affordable housing purposes, or other material City housing assistance pursuant to a funding, regulatory, affordability, or other agreement with the City. General land use approvals, permits, or incentives available to residential developments generally shall not, by themselves, constitute City assistance. “Works in Daly City” means that an adult household member is regularly and currently employed or self-employed at a physical worksite or business location within the incorporated boundaries of Daly City. Remote work performed from a residence in Daly City for an employer or business located outside Daly City shall not, by itself, qualify as working in Daly City.

Occasional, temporary, intermittent, or periodic work performed in Daly City shall not, by itself, qualify for the work preference.

SECTION 3. Section 17.47.130(D) of the Daly City Municipal Code is hereby amended to read as follows:

17.47.130 Continuing affordability and initial occupancy.

D. No household may begin occupancy of an inclusionary unit until the household has been determined to be eligible to occupy that unit. Rental inclusionary units shall continue to be rented to income eligible households at an affordable rent for the entire term of the inclusionary housing

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2 restriction. The inclusionary housing guidelines shall establish standards for determining household income, minimum and maximum occupancy, affordable housing cost, provisions for continued monitoring of tenant eligibility, local preference eligibility and selection procedures, where applicable, and other eligibility criteria.

SECTION 4. Section 17.47.140 (A) and (B) of the Daly City Municipal Code are hereby amended to read as follows:

17.47.140 Affordable housing plan and inclusionary housing agreement.

A. An affordable housing plan shall be submitted as part of the application for first approval of any residential development. no application for a first approval for a residential development may be deemed complete unless an affordable housing plan is submitted in conformance with the provisions of this chapter. Approval of an affordable housing plan is a condition of any tentative map, parcel map or building permit for any development for which this chapter applies. This section does not apply to projects where the requirements of the chapter are satisfied by payment of a fee under Section 17.47.120.

B. For each construction phase, the affordable housing plan shall specify, at the same level of detail as the application for the residential development, at least all of the following information:

1. Whether the development is for sale or rental and the type of structure (attached; semi-attached, detached);

2. How the inclusionary housing requirement will be satisfied pursuant to this chapter;

3. For all inclusionary units, the number of units, unit type, tenure, number of bedrooms and baths, approximate location/floor plan, size and design, construction and completion schedule;

4. Phasing of inclusionary units in relation to market-rate units in compliance with Section 17.47.090;

5. Marketing plan, including the manner in which inclusionary units will be offered to the public in a nondiscriminatory and equitable manner; and, where applicable, how the local preference under Section 17.47.200 will be implemented;

6. Specific methods to be used to verify household incomes, and to maintain the affordability of the inclusionary units;

7. A reliable financing mechanism for the ongoing administration and monitoring of rental inclusionary units;

8. Any other information that is reasonably necessary to evaluate the compliance of the affordable housing plan with the requirements of this chapter and the inclusionary housing guidelines.

SECTION 5. Section 17.47.170 if the Daly City Municipal Code is hereby amended to read as follows:

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3 17.47.170 Compliance monitoring.

The inclusionary housing guidelines and each inclusionary housing agreement shall include provisions for the monitoring by the city of each inclusionary unit for compliance with the provisions of this chapter, the inclusionary housing guidelines, and the applicable inclusionary housing agreement. Such provisions require annual compliance reports to be submitted to the city by the owner, and the city shall conduct periodic on-site audits to ensure compliance with all applicable laws, policies, and agreements. Where the local preference under Section 17.47.200 applies, monitoring may include information reasonably necessary to evaluate implementation of the preference. The city council may adopt fees for the costs of monitoring and compliance by the city, which shall be deposited into the affordable housing trust fund for that purpose.

SECTION 6. Section 17.47.180 (B) of the Daly City Municipal Code is hereby amended to read as follows:

17.47.180 Waiver.

B. Any request for a waiver, adjustment, or reduction under this section shall be submitted to the city concurrently with the affordable housing plan required by Section 17.47.140 of this chapter. The request for a waiver, adjustment, or reduction shall set forth in detail the factual and legal basis for the claim.

SECTION 7. Section 17.47.190 (B) of the Daly City Municipal Code is hereby amended to read as follows:

17.47.190 Implementation and enforcement.

B. The city shall evaluate the effectiveness of the ordinance codified in this chapter one year after the operative date of this chapter. The city shall periodically evaluate implementation of the local preference established by Section 17.47.200 and may revise the inclusionary housing guidelines as necessary to comply with applicable law and program requirements.

SECTION 8. Section 17.47.200 of the Daly City Municipal Code is hereby added to read as follows:

17.47.200 Local preference when assigning lease or sale of affordable units.

A. Seventy (70) percent of the applicable affordable units in each development subject to this section shall be made available with a preference to households living or working in Daly City, subject to applicable fair housing laws, funding requirements, regulatory requirements and other program requirements:

1. Any City-assisted affordable units subject to an applicable City funding, regulatory, affordability, or other agreement; and

2. Any income-restricted units resulting from enforcement of Chapter 17.47 – Inclusionary Housing.

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4 The policy shall be applicable to both for-sale and rental units, applying at initial lease-up or sale and upon each subsequent resale or new tenancy. Fractional units shall be rounded up to the nearest whole number.

The local preference shall be applied through the City’s approved applicant selection procedures and shall affect the order in which otherwise eligible applicants are considered for available affordable units. The preference shall not permanently attach to or restrict a particular affordable unit.

B. Applicants seeking local preference shall be allowed to claim and document one preference, even if they are eligible for more than one preference, from the following list of preferences:

1. Currently lives in Daly City;

2. Currently works in Daly City, as defined in Section 17.47.030.

Eligibility for the preference shall not depend on the length of time an applicant has lived or worked in Daly City.

C. Applicants shall provide documentation of their eligibility for the preference when applying for an affordable unit. This certification shall be verified by the City or its designee prior to resident selection, using reasonable and uniformly applied documentation requirements established by the City.

D. The City's local preference policy shall be compatible with other applicable preferences, set-asides, funding requirements, regulatory requirements, and program requirements. The City's local preference shall not apply to the extent it conflicts with applicable funding, regulatory, referral, or other program requirement.

E. In addition, where the County of San Mateo is funding an affordable housing project, the City’s local preference policy may be further restricted based on the proportion of funding provided by the County and the City. This funding could include direct funds, as well as land costs and fee waivers.

F. Units with accessibility features intended to help those with mobility needs, visual impairment, and/or a hearing impairment must be made available to a household with a household member with a documented need for the specific features included in the available accessible unit. If no applicant has a documented need for an accessible unit, the units will be offered to other eligible applicants according to the same preference ranking used for other City Supported and Inclusionary Housing units.

Any legally required priority for a household needing the accessibility features of a particular unit shall take precedence over the local preference. Nothing in this section limits a person's right to reasonable accommodation or reasonable modification under applicable law.

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5 G. Affordable units subject to the local preference shall be marketed in a nondiscriminatory manner. Marketing shall not be limited to households that live or work in Daly City, and otherwise eligible non-local
applicants shall be permitted to apply.

H. The City shall periodically review implementation of the local preference and may reduce or suspend the preference if necessary to comply with applicable fair housing laws, funding requirements, or updated fair housing analysis. The percentage of applicable units for which the preference is applied shall not exceed seventy (70) percent without City Council action supported by updated analysis.

SECTION 9. Severability. If any provision of this Ordinance is held by any court or by any Federal or State agency of competent jurisdiction, to be invalid as conflicting with any Federal or State law, rule or regulation now or hereafter in effect, or is held by such court or agency to be modified in any way in order to conform to the requirements of any such law, rule or regulation, such provision shall be considered a separate, distinct, and independent part of this Ordinance, and such holding shall not affect the validity and enforceability of all other provisions hereof. In the event that such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed, so that the provision thereof which had previously been held invalid or modified is no longer in conflict with such law, rule or regulation, said provision shall thereupon return to full force and effect and shall thereafter be binding.

SECTION 10. Environmental Determination. The City Council of the City of Daly City finds and determines that the implementation of measures described in this Chapter is in furtherance police powers of the City of Daly City, and that these purposes are exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code, as provided in categorical exemption within CEQA’s categorical exemption for activities involving regulation of activities.

SECTION 11. Publication/Summary Pursuant to the provisions of Government Code Section 36933, a summary of this ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post it in the City Clerk’s office a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the City Clerk shall (1) publish the summary and (2) post in the City Clerk’s office a certified copy of the full text of this ordinance along with the names of those City Council members voting for and against this ordinance or otherwise voting. This ordinance shall become effective thirty (30) days from and after its adoption.

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6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17.47 RE: INCLUSIONARY HOUSING
Introduced this 14th day of September , 2026.

Passed and adopted as an Ordinance of the City of Daly City at a regular meeting of the City Council of the City of Daly City held on the day of , 2026, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

CITY CLERK OF THE CITY OF DALY CITY
APPROVED:

MAYOR OF THE CITY OF DALY CITY

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ORDINANCE NO. 1494

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DALY CITY AMENDING CHAPTER 17 OF THE MUNICIPAL CODE RE: ZONING ORDINANCE UPDATES The City Council of the City of Daly City, DOES ORDAIN as follows:

SECTION 1. Section 17.04.010 of the Daly City Municipal Code is hereby amended to repeal the following definitions:
"Dwelling unit accessory" means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includes the following: 1) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code; and 2) a manufactured home, as defined in Section 18007 of the California Health and Safety Code. "Dwelling, secondary" means a room or suite of rooms constructed or adapted within or onto a one-family (i.e., principal) dwelling being an integral part thereof, and designed for the use and occupancy by a person or persons living independently from the one-family dwelling occupants.

A secondary dwelling shall be subordinate to the principal dwelling.

SECTION 2. Section 17.40.100 of the Daly City Municipal Code is hereby repealed in its entirety.

SECTION 3. Section 17.40.110 of the Daly City Municipal Code is hereby repealed in its entirety.

SECTION 4. Section 17.34.040 of the Daly City Municipal Code is hereby amended to read as follows:
.

A. All plans submitted for building permits shall be reviewed for the following:

1. Flat plywood shall not be used as an exterior siding material. All exterior surfaces shall be finished with paint or other weather protective coating.

2. Metal grills and gates are allowed if they are ornate and of a unique design, in keeping with the architectural components of the development and neighborhood.

3. Dry Goods Storage. All residential units must be constructed with adequate storage for the number of occupants or for commercial structures, for the type of occupancy allowed by the construction type.

4. Trash Receptacle and Recycling Container Storage. All new buildings or buildings where the occupancy is changed or in buildings where an expansion of business area or living

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space is applied for, including expansion of internal habitable areas, shall provide adequate space to accommodate a trash bin and recycling containers. The storage areas shall be weather-proof, vermin-proof and easily accessible to facilitate solid waste collection.

Existing or new dwellings without side yards shall provide an area devoted to such storage that measures three feet by eight feet adjacent and connected to the dwelling's garage.

Accessory dwelling units shall utilize the trash and recycling receptacles of the primary dwelling unit on the parcel. For garages converted to any other use in any home with side yards, including for the purpose of constructing an accessory dwelling unit or junior accessory dwelling unit, the garage door shall be retained and an area provided sufficient to accommodate trash and recycle bins at least 36 inches deep and the full width of the garage door. This requirement shall not preclude the construction of any State-mandated Accessory Dwelling Units or Junior Accessory Dwelling Units constructed pursuant to California Government Code Sections 66314 and 66323.

SECTION 5. Environmental Determination. The City Council of the City of Daly City finds and determines that the implementation of measures described in this Chapter is in furtherance police powers of the City of Daly City, and that these purposes are exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code, as provided in categorical exemption Classes 1, 4, 5, 7, 8, 9, and or 21 of the CEQA Guidelines (Title 14, California Code of Regulations, Sections 15301-15329).

SECTION 6. Effective Date and Publication: Pursuant to the provisions of Government Code Section 36933, a summary of this ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this ordinance is scheduled to be adopted, the City Clerk shall (1) publish the summary, and (2) post it in the City Clerk’s office a certified copy of this ordinance. Within fifteen (15) days after the adoption of this ordinance, the City Clerk shall (1) publish the summary and (2) post in the City Clerk’s office a certified copy of the full text of this ordinance along with the names of those City Council members voting for and against this ordinance or otherwise voting. This Ordinance shall be in full force and effect thirty (30) days from and after its passage.

SECTION 7. Severability: If any section, subsection or sentence of this Ordinance is found by a court of competent jurisdiction to be invalid or unlawful, the City Council finds and declares that the remainder of this ordinance would be and is enforceable and would have been adopted notwithstanding the finding of invalidity as to any section, subsection or sentence.

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Introduced this 14th
day of September , 2026.

Passed and adopted as an Ordinance of the City of Daly City at a regular meeting of the City Council of the City of Daly City held on the day of , 2026, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

CITY CLERK OF THE CITY OF DALY CITY
APPROVED:

MAYOR OF THE CITY OF DALY CITY

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Daly City City CouncilSeptember 28, 2026

Daly City City Council
September 28, 2026