Agenda — Hillsborough City Council, March 11, 2024

TOWN OF HILLSBOROUGH
San Mateo County
Christine Krolik, Mayor 1600 Floribunda Avenue
Sophie Cole, Vice Mayor Hillsborough, CA 94010
Marie Chuang, Councilmember www.hillsborough.net
Leslie Marden Ragsdale, Councilmember Phone 650-375-7400 Alvin L. Royse, Councilmember

A G E N D A
MONDAY, MARCH 11, 2024
4:00 PM CLOSED SESSION
6:00 PM CITY COUNCIL MEETING
Hillsborough Town Hall and Zoom Video Conference
Meetings of the City Council are held in-person in Council Chambers. As a courtesy and technology permitting, the meeting will also be held virtually via Zoom Video Conference. However, the Town cannot guarantee that the public’s access to the Zoom virtual platform will be uninterrupted, and technical difficulties may occur from time to time. In those instances, so long as the public may still attend the meeting in person, the meeting will continue.

In the event a Councilmember is participating remotely under the requirements of Government Code Section 54953 with regard to “just cause” or an “emergency” situation as those terms are defined in the Brown Act, the Town will stop the meeting if there is any technology disruption until such time that the public is reconnected to the live in person meeting and able to provide comment.

To attend the meeting in person:
1600 Floribunda Avenue, Hillsborough, CA 94010.

To provide Public Comment in person:

Members of the public wishing to speak on the agenda item are requested to complete a yellow speaker card and submit it to the City Clerk.

To participate in the meeting via Zoom Video Conference:
• Log in to the meeting at https://us06web.zoom.us/j/86468189399?pwd=WJLrgZ0bpubyaCrjCsKuOiPJpNwtvq.1 • Dial-in via phone:
+1 669 444 9171 US
+1 253 205 0468 US
+1 720 707 2699 US (Denver)
+1 253 215 8782 US (Tacoma)
+1 346 248 7799 US (Houston)
+1 646 558 8656 US (New York)
+1 301 715 8592 US (Washington DC)
+1 312 626 6799 US (Chicago)
Meeting ID: 864 6818 9399
Passcode: 502215
To provide Public Comment via Zoom Video Conference:

Live verbal public comments may be made by requesting to speak using the “raise hand” feature in Zoom or, if calling in by phone, by pressing *9 on the telephone keypad prior to the close of the public comment period for the item. In response, the Town will unmute the speaker and allow them to speak up to three minutes.

CLOSED SESSION (4:00 p.m.)
Agenda – Hillsborough City Council
Monday, March 11, 2024

Page 2 ends

CALL TO ORDER

ROLL CALL

ANNOUNCEMENT OF CONFLICT OF INTEREST
This portion of the agenda is for Councilmembers to disclose any conflict of interest related to the items on the Closed Session agenda.

Any Councilmember who has confirmed a conflict of interest or has reason to believe they have a conflict of interest should disclose the conflict for the record and abide by the disqualification requirements contained in FPPC regulations.

PUBLIC COMMENT ON CLOSED SESSION ITEMS
Members of the public may provide public comments on the items on the Closed Session agenda. Members of the public participating in person are requested to complete a yellow speaker card and submit it to the City Clerk before addressing the City Council. Members of the public participating via the Zoom platform may use the “raise hand” feature or, if calling in by phone, press *9 on the telephone keypad. Speakers are limited to one comment per Closed Session item.

CLOSED SESSION ITEMS
A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Pursuant to Government Code Section 54956.9(d)(2)
Employment Dispute Alleging Discrimination and Retaliation B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Title: City Manager
C. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Unrepresented employee: City Manager
Agency Designated Negotiator: Mayor Christine Krolik

ADJOURN CLOSED SESSION
REGULAR CITY COUNCIL MEETING (6:00 p.m.)
I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. REPORT FROM CLOSED SESSION
V. RECOGNITION
• NORTH CENTRAL REGIONAL SWAT TEAM RECOGNITION
• RECOGNITION OF SERGEANT DAVID YOUNG ON HIS RETIREMENT VI. PRESENTATIONS
Agenda – Hillsborough City Council
Monday, March 11, 2024

Page 3 ends

• PENINSULA CLEAN ENERGY UPDATE BY CEO SHAWN MARSHALL
• MAYOR'S APPLAUSE
VII. PUBLIC COMMENT I
This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda.

Members of the public participating in person are requested to complete a yellow speaker card and submit it to the City Clerk before addressing the City Council. Members of the public may provide comments via the Zoom platform by using the “raise hand” feature or, if calling in by phone, by pressing *9 on the telephone keypad. In response, the Town will unmute the speaker and allow them to speak on any topic for up to three minutes. If there appears to be a large number of speakers, speaking time may be reduced to no less than 2 minutes, at the discretion of the Mayor. Members of the public are limited to one comment at this time. State law prohibits the Council from discussing or acting on non-agenda items, and generally limits the ability of the Council to respond to any public comments made regarding non-agenda items.

VIII. ANNOUNCEMENT OF CONFLICT OF INTEREST
This portion of the agenda is for Councilmembers to disclose any conflict of interest related to any item on the agenda. Any Councilmember who has confirmed a conflict of interest or has reason to believe they have a conflict of interest should disclose the conflict for the record and abide by the disqualification requirements contained in FPPC regulations.

IX. CONSENT CALENDAR
The Consent Calendar includes routine items, which do not require discussion. The items are approved in one motion. A Councilmember may remove an item for discussion, and any member of the public may request to remove an item for discussion.

1. APPROVAL OF CITY COUNCIL MEETING MINUTES OF DECEMBER 20, 2023 AND JANUARY 8, 2024

2. MONTHLY CLAIMS: FEBRUARY 1 THROUGH FEBRUARY 29, 2024 PURSUANT TO CEQA GUIDELINE 15378

3. ACCEPT THE MID-YEAR GENERAL FUND UPDATE REPORT PURSUANT TO CEQA GUIDELINE 15378

4. FY 2024-25 CITY COUNCIL GOAL SETTING – WORK PLAN SUMMARY PURSUANT TO CEQA GUIDELINE 15378

5. APPROVAL OF FUNDRAISING EVENT PERMIT APPLICATION 24-01 FOR THE HILLSBOROUGH BEAUTIFICATION FOUNDATION CELEBRATE MAY! EVENT PURSUANT TO CEQA GUIDELINES 15378 AND 15301

6. APPROVAL OF FUNDRAISING EVENT PERMIT APPLICATION 24-02 FOR THE

SOLMATEO SIGNATURE KITCHEN TOUR EVENT PURSUANT TO CEQA
GUIDELINES 15378 AND 15301
X. PUBLIC HEARING

7. CONCEPTUAL REVIEW OF THE SUBDIVISION OF 1350 SAN RAYMUNDO ROAD (APN 030-091-030) INTO TWO PARCELS AND DEDICATION OF PUBLIC UTILITY

EASEMENTS
Agenda – Hillsborough City Council
Monday, March 11, 2024

Page 4 ends

XI. INFORMATIONAL

8. PENSION UPDATE
XII. PUBLIC COMMENT II
This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda.

XIII. TOWN UPDATE
This portion of the meeting is for the City Manager to provide brief highlights of current items of interest in the Town.

XIV. CITY COUNCIL ITEMS
This section of the agenda provides the City Council an opportunity to report their participation in activities related to any intergovernmental committee assignments.

XV. ADJOURNMENT
SPECIAL ACCOMMODATIONS:

If you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in the City Council meeting, or if you need an agenda in an alternate form, please contact the City Clerk’s Office at 375-7412 at least 24 hours before the scheduled City Council meeting.

ADDRESSING THE CITY COUNCIL:

Members of the public may provide written comments to the City Council regarding any item on the agenda up to two hours before the meeting to [email protected] or by mail/in person at 1600 Floribunda Avenue, Hillsborough, CA 94010. Any writings or documents provided to a majority of the City Council regarding any item on this agenda prior to the deadline, except as exempt from public disclosure under applicable law, will be available for public inspection on the Town website, and in the City Clerk’s Office at 1600 Floribunda Avenue, Hillsborough, CA 94010, during regular business hours.

AUDIO / VISUAL ADVISORY:

Those persons who wish to use PowerPoint or other mediums when presenting to the City Council will be required to submit media items to the City Clerk by 12:00 p.m. on the day of the meeting. Media items can be emailed to [email protected].

AUDIO OR VIDEO RECORDINGS:

Please be advised that under the Brown Act, any person has the right to record the City Council meeting, including the audience in attendance, using an audio or video recording device subject to certain exceptions. Please be aware that by attending a City Council meeting, you may be audio or video recorded.
-1-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
1 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES OF DECEMBER 20, 2023 AND JANUARY 8, 2024
-3-

UNAPPROVED MINUTES
WEDNESDAY, DECEMBER 20, 2023
2:00 PM SPECIAL CITY COUNCIL MEETING
Hillsborough Town Hall and Zoom Video Conference
Meetings of the City Council are held in-person. As a courtesy, and in compliance with applicable state law, staff and members of the public participated in the special meeting in person at Town Hall or virtually via Zoom Video Conference.

I. CALL TO ORDER
Mayor Krolik called the meeting to order at 2:01 p.m. and provided introductory comments.

II. ROLL CALL

Present: Chuang, Ragsdale, Royse, Cole, Krolik
III. ANNOUNCEMENT OF CONFLICT OF INTEREST
With regard to the Housing Element, City Attorney Christopher Diaz stated the Fair Political Practices Commission indicates that all Councilmembers can approve a Housing Element even if there are sites on the site inventory list contained within the Housing Element that are within 500 feet of an individual Councilmember’s property, with the only exception being that if there is to be individualized discussion about any of those sites, the individual Councilmember should recuse themselves.

With regard to consideration of the zoning ordinance, City Attorney Diaz noted that no Councilmembers reside within 500 feet of the Tobin Clark site or the Town Hall site that are proposed to be rezoned.

City Attorney Diaz stated that Vice Mayor Cole’s home is located within 500 feet of the Callan site on the site inventory list in the Housing Element, Mayor Krolik’s home is within 1,000 feet of the Strawberry Hill site on the site inventory list in the Housing Element, and Councilmember Chuang’s home is within 500 feet of a Town-owned single family home site on the site inventory list in the Housing Element.

City Attorney Diaz stated that no development is proposed as part of the action on the agenda.

IV. CONSENT CALENDAR
There were no requests from the City Council or the public to remove an item from the Consent Calendar.

On motion by Councilmember Royse, seconded by Councilmember Chuang and unanimous on voice vote, the Consent Calendar was approved.

1. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

THE MEMORANDUM OF UNDERSTANDING AND ASSOCIATED COMPENSATION

ADJUSTMENTS BETWEEN THE TOWN OF HILLSBOROUGH AND THE TEAMSTERS LOCAL NO. 350, I.B.T. – PUBLIC WORKS SUPERVISORS UNIT EMPLOYEES PURSUANT TO CEQA GUIDELINE 15378
The resolution approving and authorizing the City Manager to execute the Memorandum of Understanding between the Town of Hillsborough and the Teamsters Local No. 350 I.B.T. – Public Works Supervisors Unit was adopted.

V. PUBLIC HEARING
-4-
Unapproved Minutes – Hillsborough City Council
Wednesday, December 20, 2023

Page 2 ends

2. RESOLUTIONS CERTIFYING AN ENVIRONMENTAL IMPACT REPORT, ADOPTING

THE HOUSING ELEMENT, AND INTRODUCTION OF AN ORDINANCE TO REZONE TOWN OWNED LAND:
(A) RESOLUTION CERTIFYING THE FOCUSED GENERAL PLAN UPDATE ENVIRONMENTAL IMPACT REPORT (STATE CLEARINGHOUSE #2023060305);

ADOPTING ENVIRONMENTAL FINDINGS, A STATEMENT OF OVERRIDING

CONSIDERATIONS, AND A MITIGATION MONITORING AND REPORTING

PROGRAM PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
(B) RESOLUTION REPEALING THE 2015-2023 HOUSING ELEMENT AND ADOPTING THE TOWN OF HILLSBOROUGH’S 6TH CYCLE HOUSING ELEMENT OF THE GENERAL PLAN FOR THE PERIOD OF 2023-2031, IN COMPLIANCE WITH STATE

HOUSING ELEMENT LAW
(C) ORDINANCE AMENDING CHAPTERS 17.04, 17.12, AND 17.16 OF THE

HILLSBOROUGH MUNICIPAL CODE RELATING ZONING AND USES PERMITTED AND REZONING TWO TOWN OWNED PROPERTIES, PURSUANT TO THE TOWN’S HOUSING ELEMENT UPDATE (2023-2031)
Assistant Director of Building & Planning Liz Ruess provided the staff report. City Attorney Christopher Diaz, Attorney Barbara Kautz, Partner, Goldfarb & Lipman LLP, and City Manager Doug Davis provided additional information.

Mayor Krolik opened the public hearing at 2:40 p.m.

David Lau expressed concerns regarding late notice of the meeting and the proposed development of the Tobin Clark property citing access, traffic, safety, and infrastructure concerns.

Dennis Moore, 2770 Churchill Drive, expressed appreciation to individuals involved in the Housing Element update process.

David Kim expressed concerns regarding the impact of the development of the proposed Tobin Clark on Hillsborough schools.

Jessica Stevenson, Sugar Hill Drive, expressed concerns regarding the proposed development of the Tobin Clark property citing impacts to views, density, trees, wildlife, and noise and inquired as to how residents would be compensated for the decrease in property value. Stevenson expressed concern regarding the impacts on family members who visit her home.

Laura Chan, 235 Tobin Clark Drive, expressed concerns regarding the proportion of units proposed to be built at the Tobin Clark site and regarding the infrastructure needed to build on the site.

Richard Collins, 940 Tournament Drive, expressed concerns regarding the ability for low income residents to pay for housing at the Tobin Clark site, the impact on infrastructure, and inquired whether housing costs would be subsidized by the state.

Christinia Cheung, 222 Tobin Clark Drive, provided comments regarding the Town’s Values Statement and expressed concern regarding the safety, quality of life and noise impacts of adding additional housing units.

Lee Ginsburg, 222 Tobin Clark Drive, expressed concerns regarding the affordability of the proposed units at the Tobin Clark site due to development costs and recommended the housing be used for teachers and police officers. Ginsburg expressed concerns regarding the impact of the development on infrastructure and public safety.

Neville, 70 Tobin Clark Drive, expressed concerns regarding the Housing Element update process, the proposed Tobin Clark development, and inquired as to who will pay for the development.
-5-
Unapproved Minutes – Hillsborough City Council
Wednesday, December 20, 2023

Page 3 ends

Hans Schmid, Tobin Clark neighborhood, stated that he was told when he purchased his home that the Tobin Clark area would not be developed and expressed concern that a disproportionate number of units are planned for a small area, and spoke in support of housing for seniors, police officers, firefighters and teachers.

Mayor Krolik closed the public hearing at 3:11 p.m.

Mayor Krolik reopened the public hearing at 3:12 p.m.

Jessica Stevenson expressed concerns regarding lack of communication with residents.

Mayor Krolik closed the public hearing at 3:12 p.m.

On motion by Councilmember Royse, seconded by Vice Mayor Cole and unanimous on roll call vote, the resolution Certifying the Focused General Plan Update Environmental Impact Report (State Clearinghouse #2023060305); Adopting Environmental Findings, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program Pursuant to the California Environmental Quality Act (CEQA) was adopted.

On motion by Councilmember Chaung, seconded by Councilmember Ragsdale and unanimous on roll call vote, the resolution repealing the 2015-2023 Housing Element and adopting the Town of Hillsborough’s 6th Cycle Housing Element of the General Plan for the period of 2023-2031, in compliance with State Housing Element Law, was adopted.

On motion by Councilmember Royse, seconded by Vice Mayor Cole and unanimous on roll call vote, the ordinance entitled, “An Ordinance of the City Council of the Town of Hillsborough Amending Chapters 17.04, 17.12, and 17.16 of the Hillsborough Municipal Code Relating to Zoning and Uses Permitted and Rezoning Two Town Owned Properties, Pursuant to the Town’s Housing Element Update (2023-2031)” was introduced with further reading waived.

Mayor Krolik provided closing comments.

VI. ADJOURNMENT
Mayor Krolik adjourned the meeting at 3:37 p.m.
-6-

UNAPPROVED MINUTES
MONDAY, JANUARY 8, 2024
5:00 PM CLOSED SESSION
6:00 PM CITY COUNCIL MEETING
Hillsborough Town Hall and Zoom Video Conference
Meetings of the City Council are held in-person. As a courtesy, and in compliance with applicable state law, staff and members of the public participated in the meeting in person at Town Hall or virtually via Zoom Video Conference.

CLOSED SESSION

CALL TO ORDER
Mayor Krolik called the meeting to order at 5:00 p.m.

ROLL CALL

Present: Ragsdale, Royse, Cole, Krolik

Absent: Chuang

ANNOUNCEMENT OF CONFLICT OF INTEREST
There were no announcements of conflict of interest.

CLOSED SESSION ITEM
A. CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiator: City Manager Doug Davis
Unrepresented employees: Accountant, Assistant City Manager, Assistant Director of Building & Planning, Assistant Director of Finance, Assistant Engineer, Assistant Planner, Associate Civil Engineer, Associate Planner, Budget Analyst, Building Official, Chief Building Official, Chief of Police, City Clerk, Communications Manager, Deputy Director of Public Works, Director of Building and Planning, Director of Finance, Director of Public Works-City Engineer, GIS Coordinator, GIS Technician, Human Resources Manager, Management Analyst, Management Assistant, Planning Manager, Police Captain, Police Lieutenant, Public Works Superintendent, Senior Accountant, Senior Civil Engineer, Senior Management Analyst, Senior Planner

PUBLIC COMMENT ON CLOSED SESSION ITEM
There were no speakers.

ADJOURN CLOSED SESSION
The Closed Session adjourned at 5:45 p.m.

REGULAR CITY COUNCIL MEETING
I. CALL TO ORDER
Mayor Krolik called the meeting to order at 6:00 p.m.

II. ROLL CALL

Present: Ragsdale, Royse, Cole, Krolik

Absent: Chuang
-7-
Unapproved Minutes – Hillsborough City Council
Monday, January 8, 2024

Page 2 ends

III. PLEDGE OF ALLEGIANCE
Bobba Venkatadri led the Pledge of Allegiance.

IV. REPORT FROM CLOSED SESSION
City Attorney Diaz reported that the City Council considered an item in Closed Session related to labor negotiations for unrepresented employees with no reportable action but Consent Calendar Item 6 is related to the Closed Session item.

V. PRESENTATIONS
• HIP HOUSING UPDATE AND PRESENTATION OF 2024 CALENDAR
Mary Leahy, Board Member, HIP Housing, provided an update and presented their 2024 calendar.
• YOUTH COMMISSION UPDATE
Rohan Dalal, Chair, Youth Commission, introduced members of the Youth Commission present and the Youth Commission subcommittee members provided an update on the activities of the commission.
• MAYOR'S APPLAUSE
Mayor Krolik recognized Patty Hsiu with Mayor’s Applause for her dedicated volunteer service at Samaritan House. Ms. Hsiu provided comments.

Mayor Krolik recognized Bobba Venkatadri for his contributions to the community. Durga Bobba provided introductory comments and presented a video. Mr. Venkatadri provided comments and introduced members of his family.

VI. PUBLIC COMMENT I
Mike Swire, City/County Association of Governments of San Mateo County (C/CAG) Bicycle and Pedestrian Advisory Committee member and San Mateo County Transportation Authority Citizens Advisory Committee member speaking for himself, spoke in support of grade separation and investment in bicycle and pedestrian safety infrastructure and in opposition to the widening of Highway 101 citing encouragement to drive rather than walk or bike and increase in greenhouse gases.

VII. ANNOUNCEMENT OF CONFLICT OF INTEREST
There were no announcements of conflict of interest.

VIII. CONSENT CALENDAR
Regarding Item 6, City Clerk Lisa Natusch reported the Brown Act requires a verbal report of the recommendations for final action on the salary or compensation paid in the form of fringe benefits of a local agency executive during the open meeting in which the final action is to take place which includes the Department Head positions in the Unrepresented group. City Clerk Natusch reported the salary adjustments include a 4.2% cost of living increase for the Police Chief, Finance Director, Building & Planning Director and Public Works Director and the new annual salaries are:

Police Chief: $ 265,935
Finance Director: $246,564
Building & Planning Director: $ 246,564
Public Works Director: $263,497
City Clerk Natusch stated that the City Manager’s salary would be evaluated in the upcoming months in conjunction with his performance appraisal.
-8-
Unapproved Minutes – Hillsborough City Council
Monday, January 8, 2024

Page 3 ends

There were no requests from the City Council or members of the public to remove an item from the Consent Calendar.

On motion by Councilmember Royse, seconded by Vice Mayor Cole and unanimous on voice with Councilmember Chuang absent, the Consent Calendar was approved.

1. APPROVAL OF CITY COUNCIL MEETING MINUTES OF AUGUST 14, 2023 The City Council Meeting minutes of August 14, 2023 were approved as submitted.

2. MONTHLY CLAIMS: DECEMBER 1 THROUGH DECEMBER 31, 2023 PURSUANT TO CEQA GUIDELINE 15378
The monthly claims for December 2023 were approved as submitted.

3. QUARTERLY TREASURER'S REPORT FOR THE QUARTER ENDING DECEMBER 31, 2023 PURSUANT TO CEQA GUIDELINE 15378
The Treasurer's Report for the quarter ending December 31, 2023 was approved. .

4. RESOLUTION AUTHORIZING COMPENSATION ADJUSTMENTS FOR THE

HILLSBOROUGH POLICE OFFICERS ASSOCIATION UNIT PURSUANT TO CEQA GUIDELINE 15378
The resolution authorizing compensation adjustments for the Hillsborough Police Officers Association unit employees pursuant to CEQA Guideline 15378 was adopted.

5. RESOLUTION AUTHORIZING COMPENSATION ADJUSTMENTS FOR THE TEAMSTERS LOCAL 856 PUBLIC WORKS AND CLERICAL UNIT EMPLOYEES PURSUANT TO CEQA GUIDELINE 15378
The resolution authorizing compensation adjustments for the Teamsters Local 856 Public Works and Clerical unit employees pursuant to CEQA Guideline 15378 was adopted.

6. RESOLUTION AUTHORIZING COMPENSATION ADJUSTMENTS FOR
UNREPRESENTED EMPLOYEES PURSUANT TO CEQA GUIDELINE 15378 The resolution authorizing compensation adjustments for the Unrepresented employees pursuant to CEQA Guideline 15378 was adopted.

7. RESOLUTION ADOPTING THE 2024 SALARY SCHEDULE FOR THE TOWN OF HILLSBOROUGH PURSUANT TO CEQA GUIDELINE 15378
The resolution adopting the 2024 Salary Schedule for the Town of Hillsborough pursuant to CEQA Guideline 15378 was adopted.

8. RESOLUTION ADOPTING THE TOWN OF HILLSBOROUGH 2024
LEGISLATIVE PLATFORM PURSUANT TO CEQA GUIDELINE 15378 (CONTINUED FROM DECEMBER 11, 2023)
The resolution adopting the Town of Hillsborough 2024 Legislative Platform pursuant to CEQA Guideline 15378 was adopted.

9. APPROVAL OF A NEW SIGN FOR THE HILLSBOROUGH SCHOOLS FOUNDATION

ANNUAL DINNER DANCE FUNDRAISING EVENT PURSUANT TO CEQA GUIDELINE 15378
The application for the new Hillsborough Schools Foundation dinner dance fundraising event sign was approved.

10. RESOLUTION APPROVING AND ADOPTING THE AMENDED CONFLICT OF INTEREST CODE PURSUANT TO THE POLITICAL REFORM ACT OF 1974 AND -9-
Unapproved Minutes – Hillsborough City Council
Monday, January 8, 2024

Page 4 ends

CEQA GUIDELINE 15378
The resolution approving and adopting the amended Conflict of Interest Code pursuant to the Political Reform Act of 1974 and CEQA Guideline 15378 was adopted.

11. INTRODUCTION OF AN ORDINANCE AMENDING TITLE 6 OF THE HILLSBOROUGH

MUNICIPAL CODE TO ADOPT BY REFERENCE THE ANIMAL CONTROL ORDINANCE OF SAN MATEO COUNTY, CONSISTING OF CHAPTER 6.04 OF TITLE 6 OF THE CODE OF ORDINANCES OF THE COUNTY OF SAN MATEO, CALIFORNIA

AND TO MAKE OTHER CLARIFYING UPDATES, PURSUANT TO CEQA GUIDELINES 15378 AND 15061
The ordinance entitled, "An Ordinance Amending Title 6 of the Hillsborough Municipal Code to Adopt by Reference the Animal Control Ordinance of San Mateo County, Consisting of Chapter 6.04 of Title 6 of the Code of Ordinances of the County of San Mateo, California and to Make Other Clarifying Updates, pursuant to CEQA Guideline 15378" was introduced with further reading waived and a public hearing for adoption of the Ordinance was set for February 12, 2024.

12. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES WITH SCHAAF & WHEELER FOR THE 2024 SANITARY SEWER LIFT STATION UPGRADE – CORPORATION YARD UPGRADE PROJECT IN THE AMOUNT OF $170,790.00 PURSUANT TO CEQA GUIDELINE 15301
The resolution approving and authorizing the City Manager to execute an agreement for professional engineering services with Schaaf & Wheeler for the 2024 Sanitary Sewer Lift Station Upgrade – Corporation Yard Upgrade Project in the amount of $170,790.00 pursuant to CEQA Guideline 15301 was adopted.

13. RESOLUTION ACCEPTING AS COMPLETE THE CONTRACT WITH D’ARCY & HARTY CONSTRUCTION, INC. FOR THE ROBINWOOD LANE SANITARY SEWER REHABILITATION AND REPLACEMENT PROJECT IN THE AMOUNT OF $191,238.75 PURSUANT TO CEQA GUIDELINE 15301
The resolution accepting as complete the contract with D’Arcy & Harty Construction, Inc. for the Robinwood Lane Sanitary Sewer Rehabilitation and Replacement Project, the final amount of which is $191,238.75, and authorizing staff to file a Notice of Completion for the Project and release withheld retention in accordance with state prompt payment laws pursuant to CEQA Guideline 15301 was adopted.

14. RESOLUTION APPROVING THE PURCHASE OF NEW MEN’S, WOMEN’S AND

EVIDENCE LOCKERS FOR THE HILLSBOROUGH POLICE DEPARTMENT BUILDING IN THE AMOUNT OF $131,673.74 AND APPROVING A FISCAL YEAR 2023-24

BUDGET AMENDMENT IN THE GENERAL FUND IN THE AMOUNT OF
$131,673.74 PURSUANT TO GUIDELINES 15301 AND 15378
The resolution approving the purchase of new duty gear lockers for the Police Department men’s and women’s locker rooms and for the high density shelving and evidence lockers from Smart Space Solutions for a total amount of $131,673.74 pursuant to CEQA Guidelines 15301 and 15378 was adopted.

IX. OLD BUSINESS

15. ADOPTION OF AN ORDINANCE AMENDING CHAPTERS 17.04, 17.12, AND 17.16 OF

THE HILLSBOROUGH MUNICIPAL CODE RELATING TO ZONING AND USES

PERMITTED AND REZONING TWO TOWN OWNED PROPERTIES, PURSUANT TO THE TOWN’S HOUSING ELEMENT UPDATE (2023-2031)
Assistant Director of Building & Planning Liz Ruess provided the staff report.

Mayor Krolik opened public comment. There were no speakers. Mayor Krolik closed public comment.
-10-
Unapproved Minutes – Hillsborough City Council
Monday, January 8, 2024

Page 5 ends

On motion by Vice Mayor Cole, seconded by Councilmember Ragsdale and unanimous on roll call vote, the ordinance amending Chapters 17.04, 17.12, and 17.16 of the Hillsborough Municipal Code relating to zoning and uses permitted and rezoning two Town owned properties, pursuant to the Town’s Housing Element Update (2023-2031) was adopted.

X. DISCUSSION

16. 2024 COUNCILMEMBER REPRESENTATIVES TO TOWN AND REGIONAL

ASSIGNMENTS
City Clerk Lisa Natusch introduced the item. Mayor Krolik provided comments.

On motion by Councilmember Ragsdale, seconded by Vice Mayor Cole and unanimous on voice vote with Councilmember Chuang absent, the 2024 Councilmember Representatives to Town and Regional Assignments was approved.

XI. INFORMATIONAL

17. INFORMATIONAL UPDATE ON AGE-FRIENDLY CITY CERTIFICATION Senior Management Analyst Mandy Brown provided the staff report.

Mayor Krolik opened public comment. There were no speakers. Mayor Krolik closed public comment.

XII. PUBLIC COMMENT II
There were no speakers.

XIII. TOWN UPDATE
City Manager Doug Davis provided an informational update regarding the Town’s ADU Dashboard and events and activities in the town.

XIV. CITY COUNCIL ITEMS
Councilmember Ragsdale reported her attendance at a meeting of Peninsula Clean Energy.

Vice Mayor Cole reported her attendance at a meeting of the Firewise Board.

Mayor Krolik announced the upcoming San Mateo County Human Services Agency One Day Homeless Count and the upcoming City Council Goal Setting Session.

XV. ADJOURNMENT
Mayor Krolik adjourned the meeting at 7:49 p.m.
-11-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
2 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: MONTHLY CLAIMS: FEBRUARY 1 THROUGH FEBRUARY 29, 2024 PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: The monthly claims for the month of February 2024 in the amount of $7,321,700.31 are submitted for approval.

FISCAL IMPACT: Claims have been expended pursuant to the approved budget.

ATTACHMENTS: Monthly Claims Listing
PREPARED BY: Richard Santiago, Assistant Finance Director RECOMMENDATION: Approve the monthly claims for February 2024 as submitted. -13-

TOWN OF HILLSBOROUGH

REPORT OF GOODS & SERVICES PURCHASED
DURING THE MONTH OF FEBRUARY 2024
PREPARED BY:

Alan Singh
DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -14-

TOWN OF HILLSBOROUGH

SUMMARY OF PURCHASES
DURING THE MONTH OF FEBRUARY 2024
GOODS & SERVICES PURCHASED $5,209,995.59
NET SALARIES & TAXES PAID 1,035,478.65
HEALTH BENEFIT PREMIUMS 178,860.00
CCFD FUNDING 703,368.00
SAN FRANCISCO WATER PAYMENTS 193,998.07
TOTAL COST OF GOODS & SERVICES TO BE APPROVED $7,321,700.31

FINANCE DIRECTOR DATE

CITY MANAGER DATE
DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 3/5/2024
3/6/2024
-15-

COMPARATIVE SUMMARY
For the Month of FEBRUARY 2024
Feb-24 Feb-23 Feb-22
Goods & Services Purchased:

Operations 2,177,366.61 1,017,699.09 1,201,313.87
Capital 3,032,628.98 605,670.31 794,583.09
Net Salaries & Taxes Paid 1,035,478.65 988,972.00 940,080.05 Health Benefit Premiums 178,860.00 171,603.00 156,053.35 Bond Payments 0.00 526,326.22 23,469.38
CCFD Funding 703,368.00 654,879.00 0.00
San Francisco Water Payments 193,998.07 187,019.19 229,354.62 Total $7,321,700.31 $4,152,168.81 $3,344,854.36
NOTES:

Operations -
payments such as PG&E, IT software renewals, and professional services, as well as an increase in deposit refunds.

Capital -
Net Salaries & FY 23/24 payroll is consistent with the prior year, and the increase is primarily attributable Taxes Paid - to timing of filling open positions and cost of living increase effective January 1, 2024.

Debt Service
outstanding Certificates of Participation and to terminate the related interest rate swaps.

Interest on the new bonds is now paid twice a year. February 2023 also had a payment for the San Mateo Clean Water project.

CCFD -
Water -
to the SFPUC rate increase, slightly offset by a decrease in water usage.

FY 23/24 spending is consistent with FY 22/23 spending except for timing of reoccurring Capital project spending in February 2024 is primarily for the Street Resurfacing project, Priority Basins I & I Rehab, Darrell Tank Improvement, and the Storm Drain repairs.

In June 2023, the Revenue Refunding Bond Series 2023 was issued to refinance the Town's FY 23/24 contribution is based on budget/contract.

There was an SFPUC wholesale water rate increase on July 1, 2023 to $5.21 (from $4.75, a 9.6 % increase). The increase in FY 23/24 as compared to FY 22/23 is attributed DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -16-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2024
CK # VENDOR DESCRIPTION AMOUNT
14041 ADP, LLC JAN '24 MASTERTAX SOFTWARE SUPPORT FN 81.40 14042 AECOM TECHNICAL SERVICES, INC. HISTORICAL DESIGN REVIEW BP 3,848.75 14043 AIXTEK JAN '24 IT MANAGEMENT SERVICE/MICROSOFT LICENSE 27,867.80 14044 AKEL ENGINEERING GROUP, INC. WASTEWATER FLOW REVIEW/MASTER PLAN PW 5,639.00 14045 ALERT DOOR SERVICE, INC. MAINT - GATE CORP YARD PW 700.00 14046 AMAZON WEB SERVICES, INC DEC '23 - BACKUP STORAGE IT 9,139.84 14047 ARAMARK UNIFORM & CAREER UNIFORMS - REFLECTIVE JACKETS PW 945.91 14048 AT&T 12/20/23-1/19/24 PD 131.08
14049 AT&T INSTALL - ETHERNET 1 MARLBOROUGH PD 10,095.00 14050 ATLAS TOWING SERVICES, INC TOW - FLAT TIRE CAR 14 PD 387.50 14051 AUTO PRIDE CAR WASH, INC DEC'23 CAR WASHES PD 142.97 14052 BAKER TILLY US, LLP CITY MANAGER'S OFFICE REVIEW CM 9,605.00 14053 RICHARD SMITH MAINT - TREE REMOVAL MACADAMIA DR/SKYFARM PW 22,002.02 14054 BAYSIDE BUILDING MATERIALS INC MATERIALS - SAND PW 637.75 14055 BEST BEST & KRIEGER LLP FEE - DEC '23 LEGAL SERVICE 52,819.73 14056 BOSCO OIL COMPANY GAS/DIESEL PW/PD 9,716.72
14057 BRINC DRONES INC EQUIP - LEMUR 2 DRONES PD 109,374.53 14058 BURNETT LANDSCAPE DEVELOPMENT INC INSTALL - PLANTER BOX/DRAIN ROCK/IRRIGATION PD PW 8,550.00 14059 CENTRAL COUNTY FIRE DEPARTMENT REMIT - Q2 FY 23/24 FIRE REVIEW FEE FN 8,816.00 14060 CHEMSEARCH SUPPLIES - ZYME PW 2,861.16
14061 CHRISTINA M MOSES SOFTWARE - WATER BILL CALCULATOR UPDATE FN 350.00 14062 CITY MANAGE MANAGEMENT ADVISORS HR MANAGER RECRUITMENT SERVICES CM 6,666.33 14063 CITY OF BURLINGAME JAN '24 LIBRARY SERVICES CM 66,381.00 14064 CITY OF SAN MATEO TRAIN - SWAT TACTICAL 10/22-23/23 PW 1,219.35 14065 CIVICPLUS WEBSITE ANNUAL MAINTENANCE '24 IT 18,771.55 14066 CLARK PEST CONTROL PEST CONTROL PD/PW 224.00
14067 CO OF SAN MATEO INFO SERVICES DEC'23 MICRO CHANNEL LINES PD 164.51 14068 CORE & MAIN LP PARTS - COUPLERS PW 944.99
14069 CSG CONSULTANTS, INC. BUILDING INSPECT/PLANNER SERVICES DEC '23 BP 14,448.27 14070 DAILY JOURNAL CORPORATION LEGAL NOTICE 1/18/24 PREADOPT ANIMAL CONTROL CL 1,355.30 14071 DARCY & HARTY CONST., INC. SANITARY SEWER REPLACEMENT 23A PRJ PW 649,101.75 14072 DARRYL PANG OCT '23 POLYGRAPH SERVICES PD 700.00
14073 DEGREE HVAC, INC MAINT - HEATER PD 490.00
14074 DFM ASSOCIATES 2024 CALIFORNIA ELECTIONS BOOK CL 76.74 14075 DIGITAL VIEW, INC EQUIP - OUTDOOR SIGNBOARD TOWN HALL PW 22,968.76 14076 EPS, INC. SEWER PHASE 1C CONSTRUCTION PW 704,085.38 14077 FASTENAL COMPANY SUPPLIES - PERSONNEL PROTECTIVE EQUIP PW 1,794.27 14078 FERGUSON US HOLDINGS, INC PARTS - WATER HYDRANTS/COUPLINGS PW 15,869.91 14079 FLOCK GROUP INC EQUIP - POLE RELOCATION FEE PD 750.00 14080 FLOWATER EQUIP - JAN '24 WATER STATION FN/BP 328.12 14081 FRANK M BOOTH INC MAINT - HVAC FIRE STATION 32 PW 865.00 14082 FREYER & LAURETA, INC HIGH LINE WATER PRJ DESIGN PW 27,662.66 14083 GLENN BERKHEIMER JUL '23/DEC '23 LABOR RELATIONS HR 3,400.00 14084 GOLDFARB LIPMAN ATTORNEYS DEC '23 LEGAL SERVICE HOUSING ELEMENT BP 1,487.50 14085 GRAINGER UNIFORM - RAIN JACKETS PW 94.95
14086 HACH COMPANY WATER QUALITY SUPPLIES PW 3,188.78
14087 HASSETT HARDWARE-SAN MATEO SUPPLIES - WALL TEXTURE/BOLTS PW 40.58 14088 HOUSEAL LAVIGNE ASSOCIATES,LLC GENERAL PLAN/HOUSING ELEMENT NOV-DEC '23 BP 28,427.50 14089 INTERWEST CONSULTING GROUP DEC '23 BUILDING INSPECTOR SERVICES BP 2,000.00 14090 KELLY MOORE PAINT CO., INC SUPPLIES - PAINT SIGN BOARD FIRE #33 PW 68.87 14091 KEVIN KASHIWAHARA BACKGROUND INVESTIGATION NEW HIRE PD 1,500.00 14092 LC ACTION POLICE SUPPLY SUPPLIES - SPONGE ROUNDS PD 6,656.64 14093 LEAGUE OF CALIFORNIA CITIES 2024 MEMBERSHIP DUES PEN DIVISION CM 500.00 14094 MAGNET FORENSICS USA, INC SOFTWARE - GRAYKEY LICENSE 4/1/24-3/31/25 PD 33,105.00 14095 MARK D HUDAK LEGAL SERVICES - DEC 2023 CM 1,395.00 14096 MASTERPIECE GARDENERS, INC MAINT - JAN '24 HBF LANDSCAPE VARIOUS SITES 600.00 14097 CA METRO MOBILE COMMUNICATIONS INC EQUIP- HELMET RADIO PD 987.49 14098 METROPOLITAN PLANNING GROUP INC CONSULT - DEC '23 PLANNER SERVICES BP 12,911.25 DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -17-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2024
14099 N EAR, INC EQUIP - COMMUNICATION EAR PIECES STAFF PD 4,380.31 14100 NAPA AUTO PARTS - BURLINGAME PARTS - COUPLER LOCK/BALL MOUNT PD 192.90 14101 NOR-CAL CYCLES, LLC REPAIR - BRAKES MOTORCYCLE PD 1,887.40 14102 NORCAL RENTAL GROUP LLC SUPPLIES - PROPANE PW 74.55 14103 NORGO ENGINEERING PULLMAN STORM DRAIN PRJ PW 16,865.00 14104 NWESTCO LLC MAINT - FUEL TANK INSPECTION PW 1,040.70 14105 ODYSSEY POWER CORPORATION MAINT - GENERATOR MULTIPLE SITES PW 2,710.00 14106 ANDREW VANNI BUILDERS INC REFUND - BUILD DEPOSIT BP 29,640.00 14107 BLUE WATER POOLS REFUND - PERMIT FEE OVERPAY BP 565.05 14108 GREGORY & ERIKA MILIOTES REFUND - BUILD DEPOSIT BP 15,451.00 14109 GREGORY & ERIKA MILIOTES REFUND - GRADE DEPOSIT BP 7,500.00 14110 PAN IN CORPORATION REFUND - LS BUILD DEPOSIT BP 3,368.40 14111 WILLIAM & ELIZABETH SEYBOLD REFUND - BUILD DEPOSIT BP 14,700.00 14112 WILLIAM & ELIZABETH SEYBOLD REFUND - BUILD DEPOSIT BP 6,849.50 14113 WILLIAM & ELIZABETH SEYBOLD REFUND - GRADE DEPOSIT BP 15,000.00 14114 RAJNI RANI REIMB - TRAVEL EXP HR INTERVIEW 1/18/24&1/23/24 CM 750.00 14115 VICTOR YOUNG REBATE - LAWN BE GONE PROGRAM PW 1,423.00 14116 PAKPOUR CONSULTING GROUP,INC 2023 STREET RESURFACING PRJ INSPECT PW 43,117.00 14117 PENINSULA TRUCK REPAIR INC MAINT - FORD RANGER TRUCK #555 PW 303.46 14118 PENINSULA UNIFORMS & EQUIPMENT, INC UNIFORM - POLO SHIRTS PD 207.39 14119 PG & E 12/2/23-1/2/24 MULTIPLE ACCOUNTS 89,792.39 14120 PLAN JPA DEC '23 DEDUCTIBLE CLAIMS VARIOUS ITEMS 12,494.50 14121 PRIORITY 1 MAINT - NOV '23/DEC '23 MULTIPLE VEHICLES PD 11,118.03 14122 QUENCH USA, INC EQUIP - WATER STATION 12/28/23-1/27/24 PD 80.94 14123 R.E.Y. ENGINEERS, INC SANDRA HAYNE DRAIN EASEMENT PRJ #1 PW 8,158.00 14124 ROBERT HALF INTERNATIONAL INC TEMP SERVICE - W/E 1/5/24 - 1/19/24 CM/FN 10,513.12 14125 SAN MATEO COUNTY FORENSIC LAB DEC'23 CRIME LAB SERVICES PD 3,815.76 14126 SCOTT BUSCHMAN PHOTOGRAPHY - DEPARTMENT PHOTOS PD 1,064.84 14127 SAN MATEO CO POLICE CHIEFS ASSOC. 2024 MEMBERSHIP DUES PD 1,000.00 14128 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 644.40 14129 STATE WATER RESOURCES CONTROL FEE - WATER OPERATOR EXAM D1 STAFF PW 50.00 14130 STATE WATER RESOURCES CONTROL FEE - WATER OPERATOR EXAM D1 STAFF PW 50.00 14131 STATE WATER RESOURCES CONTROL 23-24 WATER SYSTEM FEES PW 29,422.74 14132 TELECOMMUNICATIONS ENGINEERING JAN'23 COMM CENTER/BASE/RIMS TECH SERVICE PD 4,158.00 14133 THOMSON WEST DEC'23 INVESTIGATIVE WEBSITE PD 1,015.00 14134 ULINE, INC. SUPPLIES - JUGS PW 149.51
14135 UNITED LABORATORIES SUPPLIES - SEWER LIFT-ZYME PW 3,101.18 14136 UNITED RENTALS NORTH AMERICA INC EQUIP - SHORING PUMP RAILS PW 1,990.63 14137 VERIZON WIRELESS 12/7/23-1/6/24 MULTIPLE ACCOUNTS PD 1,759.89 14138 VIKING SHRED LLC DEC'23/JAN'23 DESTRUCTION SERVICE PD 165.98 14139 WECO INDUSTRIES, LLC EQUIP - SEWER HOSE/SPOOL PW 3,444.66 14140 WESLEY CONSTRUCTION, INC REPAIR - WATER DAMAGE PD BASEMENT FINAL PW 17,065.42 14141 WITMER-TYSON IMPORTS, INC. SEP'23-DEC'23 K-9 TRAINING PD 5,565.63 14144 AFLAC DEC '23 INSURANCE PREMIUM HR 1,790.44
14147 AT&T 12/17/23-1/16/24 PD 59.93
14148 AT&T 12/19/23 -1/18/24 253.41
14149 AT&T 12/19/23-1/18/24 155.55
14150 AT&T 12/10/23-1/9/24 898.84
14151 AT&T 12/20/23-1/19/24 155.55
14152 AT&T 12/20/23-1/19/24 716.62
14153 AUTO PRIDE CAR WASH, INC JAN'24 CAR WASHES PD 147.94 14154 BAKER TILLY US, LLP CITY MANAGER PERFORMANCE EVALUATION CM 5,150.00 14155 BAY AREA WATER SUPPLY & CONSERVE WATER LOSS CONTROL PROGRAM DEC '23 PW 353.42 14156 BAY PRO FEB'24 LANDSCAPE MAINT VARIOUS SITES HBF 3,846.00 14157 BAYSIDE BUILDING MATERIALS INC MATERIALS - SAND/STRAW WADDLE PW 723.53 14158 BIG STATE INDUSTRIAL SUPPLY, INC SUPPLIES - MARKING FLAGS PW 87.28 14159 BKF ENGINEERS EUCALYPTUS PATHWAY DESIGN PW 1,145.00 14160 BOSCO OIL COMPANY GAS/DIESEL PW/PD 4,066.72
14161 BURNETT LANDSCAPE DEVELOPMENT INC INSTALL - LANDSCAPING STATION 33 PW 40,867.34 14162 CALIFORNIA TREE AND LANDSCAPE CONSULT - JAN '24 ARBORIST SERVICES BP 1,755.00 14163 CARTEGRAPH SYSTEMS, LLC SOFTWARE - CMMS IMPLEMENTATION PW 865.92 DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -18-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2024
14164 CENTRAL COUNTY FIRE DEPARTMENT FEB '24 FISCAL CONTRIBUTION 703,368.00 14165 CENTRALSQUARE TECHNOLOGIES,LLC SOFTWARE - CRW TRACKIT PRJ MILESTONE 3 - BP 36,518.00 14166 CINTAS CORPORATION NO 3 UNIFORM CLEANING SERVICE MULTIPLE INVOICES PW 2,027.50 14167 CITY MANAGE MANAGEMENT ADVISORS HR MANAGER RECRUITMENT SERVICES CM 6,666.34 14168 CITY OF SAN BRUNO COUNCIL OF CITY MTG 1/17/23 KROLIK, RAGSDALE CO 130.00 14170 COMCAST DEC '23 CALNET NONCGEN LINE IT 4,838.19
14171 CORA (COMMUNITY OVERCOMING ERP SERVICES 2024 PD 4,393.00 14172 CORE & MAIN LP PARTS - VALVES/BRASS FITTINGS PW 15,032.96 14174 DAILY JOURNAL CORPORATION LEGAL NOTICE/SUMMARY 1/23/24 ORDINANCE 791 CL 1,524.71 14175 DAN OKANO EQUIP - HELMETS/LINE TRIMMERS PW 2,194.32 14176 DEBORAH YACOBELLIS CONSULT - CRW/TRACK IT JAN '24 BP 4,147.50 14177 EMPLOYMENT DEVELOPMENT DEPT. OCT-DEC'23 UNEMPLOYMENT INSURANCE 450.00 14180 FORTE PRESS PRINT - VARIOUS FORMS PD 515.16
14181 GLENN BERKHEIMER FEB '24 LABOR RELATIONS HR 1,700.00 14183 HACH COMPANY WATER QUALITY SUPPLIES PW 114.84
14184 HALEY & ALDRICH, INC MACADAMIA ACCESS ROAD DESIGN PRJ PW 27,257.50 14185 HASSETT HARDWARE-SAN MATEO SUPPLIES - BELL WIRE STAPLES PW 7.28 14187 INTERWEST CONSULTING GROUP JAN '24 BUILDING INSPECTOR SERVICES BP 2,000.00 14188 IT'S PERSONNEL, P.C. JAN '24 HR SERVICES 13,442.65 14191 MIDSTATE BARRIER, INC. INSTALL - GAURDRAIL CRYSTAL SPRINGS PW 13,320.00 14192 MIWALL CORPORATION SUPPLIES - AMMUNITION PD 10,062.50 14194 NOR-CAL CYCLES, LLC REPAIR - RHCM SWITCH MOTORCYCLE PD 320.00 14195 BETTER EARTH ELECTRIC, INC REFUND - PERMIT FEE VOID BP 385.96 14196 JOHN VONG & WINNIE YEUNG REFUND - BUILD DEPOSIT BP 4,865.00 14197 MINA & NATHAN FISCHER REFUND - LS BUILD DEPOSIT BP 4,000.00 14199 TESLA ENERGY OPER. INC. REFUND - PERMIT FEE VOID BP 694.05 14200 ZACHARY & ELIZABETH HULSEY REFUND - EIR DEPOSIT BALANCE BP 1,554.06 14202 RAY RICO REIMB - WORK BOOTS PW 300.00
14204 PLAN JPA JAN '24 DEDUCTIBLE CLAIMS VARIOUS ITEMS 3,498.12 14206 PRIORITY 1 MAINT - JAN'24/FEB'24 MULTIPLE VEHICLES PD 14,101.56 14209 REDGWICK CONSTRUCTION COMPANY REFUND - HYDRANT METER DEPOSIT PW 2,000.00 14210 RENNE PUBLIC LAW GROUP LLP LEGAL RETAINER NOV'23/DEC'23 CM 8,000.00 14212 SAN MATEO COUNTY FORENSIC LAB JAN'24 CRIME LAB SERVICES PD 912.00 14214 SFPUC FINANCIAL SERVICES NOV '23/DEC'23 - WATER QUALITY ANALYSIS PW 2,820.00 14215 SMARTSPACE ENTERPRISES INC. EQUIP - STAFF & EVIDENCE ROOM LOCKERS PD 65,836.87 14216 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 1,634.72 14217 STATE WATER RESOURCES CONTROL TANK ANNUAL PERMIT FEE 7/1/23-6/30/24 PW 399.00 14218 THOMSON WEST JAN'24 INVESTIGATIVE WEBSITE PD 1,015.00 14219 TIMBERLINE TREE SERVICE, INC. MAINT - TREE REMOVAL MULTIPLE SITES PW 7,700.00 14220 TRESSERS TOW SERVICE TOW - '16 FORD EXPLORER TO REPAIR SHOP PD 105.00 14221 TURBO DATA SYSTEMS, INC. JAN'24 CITATION PROCESSING & SCANNER PD 1,613.87 14222 UNICO MECHANICAL CORP MAINT - SUB PUMP PW 5,532.61 14224 VERIZON WIRELESS 12/3/23-1/2/24 MULTIPLE ACCOUNTS PW 2,325.86 14225 WILSEY HAM SEWER CIP 1D DESIGN PRJ PARROTT PW 24,232.75 14226 WRA, INC SANDRA/HAYNE DRAIN REPLACE PRJ PW 5,450.17 14227 72 HOUR LLC PURCHASE - 2023 FORD EXPLORER PD 57,846.68 14228 ACACIA FINANCIAL GROUP, INC EMMA FILING DISSEMINATION AGENT SERVICE FN 1,500.00 14229 ADP, LLC FEB '24 MASTERTAX SOFTWARE SUPPORT FN 81.40 14230 AGUILAR & SONS REPAIR - ASPHALT WEDGEWOOD/HEATHER PW 3,410.00 14231 AIXTEK FEB '24 IT MANAGEMENT SERVICE/MICROSOFT LICENSE 27,667.80 14232 ALL FENCE COMPANY, INC. REPLACE - MARLBOROUGH FENCE PW 68,640.00 14233 AMAZON WEB SERVICES, INC JAN '24 - BACKUP STORAGE IT 9,568.52 14234 ANN STAR FORMAN FEE - NOTARY SERVICES JAN '24 PW/BP 345.00 14235 ARAMARK UNIFORM & CAREER UNIFORMS - REFLECTIVE JACKETS PW 702.06 14236 ASSURE MSP, INC EQUIP - VERKADA CAMERA LICENSE/MAINT PW 6,974.22 14237 AT&T 1/10/24-2/9/24 MULTIPLE ACCOUNTS 1,415.80
14238 BARTLEY PUMP PM, LLC MAINT - PUMP MULTIPLE SITES PW 10,500.00 14239 BAY PRO INSTALL - LANDSCAPING ELMWOOD PW 4,120.00 14240 BEST BEST & KRIEGER LLP FEE - JAN '24 LEGAL SERVICE 36,598.60 14241 BIG STATE INDUSTRIAL SUPPLY, INC SUPPLIES - BLADES PW 731.40 14242 BOSCO OIL COMPANY GAS/DIESEL PW/PD 8,812.23
DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -19-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2024
14243 BURNETT LANDSCAPE DEVELOPMENT INC MAINT - FEB '24 HBF LANDSCAPE VARIOUS SITES 5,256.00 14244 CALIFORNIA ELECTRIC CO. INSTALL - WIRING BUILDING OFFICIAL OFFICE BP 7,966.64 14245 CARTEGRAPH SYSTEMS, LLC SOFTWARE - CMMS ASSET MANAGE BUNDLE 2024 PW 35,932.37 14246 CINTAS CORPORATION NO 3 UNIFORM CLEANING SERVICE PW 824.24 14247 CITY OF BURLINGAME FEB '24 LIBRARY SERVICES CM 66,381.00 14248 CLARK PEST CONTROL PEST CONTROL PD/PW 224.00
14249 CLEANSWEEP SERVICES, INC. STREET SWEEPING SERVICE PW 6,016.00 14250 CO OF SAN MATEO INFO SERVICES JAN'24 MICRO CHANNEL LINES PD 164.51 14251 COMCAST JAN '24 MULTIPLE ACCOUNTS PW 548.19
14252 CORE & MAIN LP SUPPLIES - CHLORINE/BRASS FITTINGS PW 3,150.22 14253 CSG CONSULTANTS, INC. CIP ADM SEWER 11/25/23-12/29/23 & VARIOUS PRJ PW 121,828.57 14254 DAN OKANO EQUIP - CHAIN SAW/POLE SAW PW 1,293.55
14255 DU-ALL SAFETY, LLC JAN '24 SAFETY CONSULT PW 3,332.50 14256 EPS, INC. SEWER PHASE 1C CONSTRUCTION PW 300,290.25 14257 EXXELL CORPORATION MAINT - FIRE EXTINGUISHERS PD 527.80 14258 FARALLON COMPANY REPAIR - DENHAM/RALSTON STORM DRAIN PRJ 33,250.00 14259 FERGUSON US HOLDINGS, INC PARTS - PIPE FITTINGS PW 847.98 14260 FLOWATER EQUIP - JAN '24 WATER STATION PW 109.38
14261 FOLGER GRAPHICS, INC PRINT - QUARTERLY NEWSLETTERS Q1 2024 CM 3,277.00 14262 G. BORTOLOTTO & CO 2023 STREET RESURFACING PRJ PW 200,537.26 14263 GATEWAY PACIFIC CONTRACTORS, INC DARRELL WATER TANK REPLACE PRJ PW 692,924.30 14264 GO NATIVE, INC MAINT - VEGETATION MANAGE VARIOUS SIGHTS PW 4,753.00 14265 GRAINGER TOOLS - WRENCHES & VARIOUS ITEMS PW 3,224.88 14266 HASSETT HARDWARE-SAN MATEO SUPPLIES - VARIOUS ITEMS PW 115.93 14267 INFRASTRUCTURE ENGINEERING CORP DARREL TANK REPLACE PRJ PW 3,168.80 14268 INTERSTATE TRAFFIC CONTROL PRODUCTSCUSTOM SIGNS/POSTS PW 2,412.81 14269 INTERWEST CONSULTING GROUP JAN '24 BUILDING INSPECTOR SERVICES BP 720.00 14270 JOHN M. REED PRINT - NAME PLATES/GAVEL CO 96.47
14271 KIDDER MATHEWS OF CALIFORNIA, LNC. FEB '24 APPRAISAL SERVICE HOUSING ELEMENT BP 12,500.00 14272 KRONOS SAASHR, INC. JAN'24 PAYROLL PROCESSING FN 2,050.13 14273 LEAF CAPITAL FUNDING EQUIP - JAN '24/FEB '24 WATER STATION CM 226.59 14274 LITTLER, MENDELSON, P.C. LEGAL SERVICES JAN ’24 CM 3,330.00 14275 MARK D HUDAK LEGAL SERVICES - JAN 2024 CM 6,488.90 14276 MASTERPIECE GARDENERS, INC MAINT - FEB '24 HBF LANDSCAPE VARIOUS SITES 600.00 14277 MAYNE TREE EXPERT CO., INC. MAINT - TREE PRUNING BRANDT HBF 2,170.00 14278 METROPOLITAN PLANNING GROUP INC CONSULT - JAN '24 PLANNER SERVICES BP 10,368.75 14279 MOORE, IACAFONO GOLTSMAN, INC GENERAL PLAN/HOUSING ELEMENT SEPT '23 BP 41,813.85 14280 NAPA AUTO PARTS - BURLINGAME SUPPLIES - EXHAUST FLUID/WIPERS PW 278.61 14281 NINYO & MOORE GEOTECHNICAL SEWER 21C & 23A PRJ MATERIAL TEST PW 11,419.50 14282 NOEL L. MILLER, INC. REPAIR - TIRE FORD #D1 PW 47.13 14283 NORCAL RENTAL GROUP LLC EQUIP - BOOM RENTAL PW 940.19 14284 ODYSSEY POWER CORPORATION MAINT - GENERATOR SKYFARM 3 PW 396.00 14285 ALLEGRO DENTAL GROUP REFUND - GREEN/BUILD DEPOSIT BP 13,348.00 14286 ANDREW LUTOMIRSKI REFUND - BUILD DEPOSIT BP 8,949.50 14287 CHU DEVELOPMENT LLC REFUND - GREEN/BUILD DEPOSIT BP 51,000.00 14288 CHU DEVELOPMENT LLC REFUND - LS BUILD DEPOSIT BP 6,940.00 14289 CHU DEVELOPMENT LLC REFUND - GRADE DEPOSIT BP 20,000.00 14290 CHU DEVELOPMENT LLC REFUND - GRADE DEPOSIT BP 10,000.00 14291 DHIREN BELUR & MADHURI KAPOOR REFUND - BUILD DEPOSIT BP 7,728.50 14292 EUGENE & SUSAN VLAHOS REFUND - BUILD DEPOSIT BP 5,000.00 14293 EUGENE ROYTMAN DMD INC REFUND - BUILD DEPOSIT BP 5,108.00 14294 JEFF WILSON REFUND - BUILD DEPOSIT BP 54,507.50
14295 JEFF WILSON REFUND - LS BUILD DEPOSIT BP 4,000.00 14296 PETER & JOANIE SCHLAMP REFUND - GRADE DEPOSIT BP 15,000.00 14297 ROSHAN YOGANATHAN REFUND - PERMIT FEE CCFD REVIEW BP 181.00 14298 WILLIAM GARDINER REFUND - BUILD DEPOSIT BP 2,156.98 14299 YULIYA MOROZOVA REFUND - BUILD DEPOSIT BP 6,000.00 14300 YULIYA MOROZOVA REFUND - GRADE DEPOSIT BP 5,000.00 14301 ANCA STRATIANU GHNAIM REIMB - FINGERPRINT SERVICE FEE HR 93.55 14302 JOCELYN QUOCK REIMB - FOOD INTERVIEW PANEL 1/29/24 HR 66.15 14303 JOCELYN QUOCK REIMB - FOOD INTERVIEW PANEL 2/12/24 HR 58.98 DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -20-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2024
14304 RYAN YNIGUEZ REIMB - FINGERPRINT SERVICE FEE HR 84.00 14305 WILLIAM RACANELLI REIMB - FLASHLIGHTS BP 375.74
14306 OWEN EQUIPMENT COMPANY PARTS - RELIEF VALVE #538 PW 1,329.02 14307 PAKPOUR CONSULTING GROUP,INC 23/24 WATER & SEWER REPLACE PRJ DESIGN PW 12,888.75 14308 PENINSULA TRUCK REPAIR INC REPAIR - BRAKES FORD F450 #593A PW 2,012.16 14309 PENINSULA UNIFORMS & EQUIPMENT, INC UNIFORM - WATCH CAPS/PATCHES PD 328.15 14310 PETERSON POWER SYSTEMS, INC. INSTALL - TRACKS/ UPDATE SOFTWARE E-12 PW 6,279.85 14311 PG & E 12/15/23-1/16/24 MULTIPLE ACCOUNTS 29,247.64 14312 POLLARDWATER.COM TOOLS - GAUGES/TABLETS PW 1,227.99 14313 PREFERRED ALLIANCE, INC. FEE - DRUG PROGRAM WORKSHOP 3/9/23 HR 3,604.14 14314 QUENCH USA, INC INSTALL/EQUIP - WATER STATION 1/28/24-2/27/24 PD 310.24 14315 RED WING SHOE STORE WORK BOOTS - STAFF PW 600.00
14316 REDWOOD TRADING POST UNIFORM - RAIN BOOTS STAFF PW 1,021.71 14317 RENNE PUBLIC LAW GROUP LLP LEGAL RETAINER JAN '24 CM 4,000.00 14318 ROBERT HALF INTERNATIONAL INC TEMP SERVICE - W/E 1/26/24-2/9/24 CM/FN 14,089.58 14319 SAN DIEGO POLICE EQUIPMENT CO SUPPLIES - AMMUNITION PD 7,987.55 14320 SAN MATEO LUMBER CO., INC TOOLS - RAKE/FORK PW 347.89 14321 SHARP ELECTRONICS CORPORATION JUN '23 COPIER CHARGES 2,289.34 14322 SHAWN KIRBY JAN '24 POOL SERVICE 1640 RENTAL PW 200.00 14323 SHOE DEPOT, INC A CALIFORNIA WORK BOOTS - STAFF PW 296.27 14324 SSP DATA, INC. SOFTWARE - VEEAM RENEWAL 3/9/24-3/8/27 IT 17,628.00 14325 STANDARD INSURANCE COMPANY JAN '24 GROUP LIFE/ADD/LTD ASSESSMENT 2,874.19 14326 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 1,701.20 14327 STATE WATER RESOURCES CONTROL TANK ANNUAL PERMIT FEES 7/1/23-6/30/24 PW 5,417.00 14328 TESCO CONTROLS, LLC MAINT - SCADA SUPPORT SERVICE PW 3,609.00 14329 THE ADAM-HILL COMPANY PARTS - HOSE REPLACEMENT #527 & #593 PW 334.55 14330 THE ARTINA GROUP, INC PRINT - BLANK STOCK FN 439.83 14331 SAMUAL OAKLEY CONSULT - JAN '24 ARBORIST SERVICES BP 3,162.50 14332 TYLER TECHNOLOGIES, INC. MAINT - FUNDBALANCE 3/1/24-2/28/25 FN 10,423.21 14333 U-ROCK UTILITY EQUIPMENT INC REPAIR - PUSH CAMERA PW 387.53 14334 ULINE, INC. SUPPLIES - RAGS PW 405.86
14335 UNITED LABORATORIES SUPPLIES - SEWER LIFT-ZYME PW 6,192.35 14336 UNLIMITED TOOL & EQUIPMENT REP REPAIR - CONCRETE SAW PW 382.17 14337 UTILITY TELECOM, INC. FEB '24 ETHERNET & CIRCUITS IT 394.81 14338 VERIZON CONNECT NWF INC JAN '24 - GPS MONTHLY SERVICES PW 806.51 14339 VERIZON WIRELESS 12/11/23-1/10/24 PD 1,501.53
TOTAL GOODS & SERVICES FOR THE MONTH PAID BY CHECK $5,549,670.86 CALPERS RETIREMENT CONTRIBUTIONS 232,153.55
VISA PAYMENTS 42,071.59
RETIREE HEALTH REIMBURSEMENTS 89,467.59
OTHER ELECTRONIC PAYMENTS 0.00
TOTAL GOODS & SERVICES FOR THE MONTH $ 5,913,363.59
DocuSign Envelope ID: BB233958-6E7C-460C-A500-C7C4A68FE3D7 -21-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
3 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: ACCEPT THE MID-YEAR GENERAL FUND UPDATE REPORT PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: The General Fund Update Report provides a mid-year FY 2023-24 update and a preliminary FY 2024-25 baseline budget projection that can aid in planning next year’s budget.

The mid-year FY 2023-24 General Fund projection indicates that Town reserves should end approximately $500k better than budget. Revenues are projected to end the year higher than budget ($1.1 million), primarily due to one-time revenues, excess Educational Revenue Augmentation Funds (ERAF) and Motor Vehicle License Fund (MVLF) timing, and higher investment income. Expenditures are projected to be over budget due to the winter storm costs (eligible costs are 70% reimbursable by FEMA).

The Town’s primary source of General Fund revenue is property tax, which is tied to assessed valuation. The preliminary San Mateo County Assessor tax roll indicates a 3.8% growth in assessed valuation for FY 2024-25, which is lower than the 5 to 6% growth the Town has experienced over the past several years. Permitting activity and revenue in the current year have remained stable, and FY 2024-25 revenues are projected to be comparable to this year. While the operating revenue is projected to grow by 3 to 4%, the year-over-year growth will be lower due to one-time revenues received in FY 2023-24 and conservatism in forecasting the VLF revenue. The preliminary projection shows a net excess revenue from operations, which, along with using reserves, is projected to fund one-time capital projects for storm drains and governmental facilities.

The detailed budget process will inform any additional spending to support the upcoming year's goals and ongoing operations.

The City Council budget study session is scheduled for May 13, 2024.

FISCAL IMPACT: There is no fiscal impact associated with this item.

ENVIRONMENTAL ISSUES: This item is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes to the environment.

ATTACHMENTS: General Fund Projection Report
PREPARED BY: Jan Cooke, Finance Director
-23-
Agenda Staff Report - Hillsborough City Council
March 11, 2024

Page 2 ends

RECOMMENDATION: Accept the mid-year General Fund update report pursuant to CEQA Guideline 15378.
-24-
Town of Hillsborough
Summary
One-time revenues improve FY 2023-24 revenue, and 2024-25 revenue growth is primarily from property tax offset by conservative VLF estimates and flat permitting and planning revenues. Operating expenditures increase in FY 2023-24 for one-time expenditures for winter storm and legal costs. FY 2024-25 operating expenditure growth is primarily labor-related costs. Labor is nearly 85% of General Fund spending, including Central County Fire Department contribution (mainly driven by labor costs). The preliminary FY 2024-25 projection shows a net excess revenue from operations, which, along with using reserves, is projected to fund one-time capital projects for storm drains and governmental facilities. The detailed budget process will inform any additional spending to support the upcoming year's goals and ongoing operations.

GENERAL FUND PROJECTION
FY 2023-24
Amended Budget
FY 2023-24
Mid-Year Projection
Variance
2023-24
Mid Year v.

Budget
FY 2024-25
Baseline Budget
Projection
Variance
FY 2024-25
Projection v. FY
2023-24 Budget
Revenue $ 34,526,088 $ 35,619,716 $ 1,093,628 2 $ 35,947,709 $ 1,421,622 Operating Expenditures (32,965,481) (33,526,962) (561,481) 3 (34,531,978) (1,566,497) Net Excess Operating Revenue/(Expendtiure) before Capital $ 1,560,606 $ 2,092,754 $ 532,148 $ 1,415,731 $ (144,875) Capital Transfers (Storm Drain and Facilities) (2,377,770) (2,377,770) - 3 (1,747,770) 630,000 Excess/(Shortfall) $ (817,164) $ (285,016) $ 532,148 $ (332,039) $ 485,125 Fund Balance $ 30,724,717 $ 31,256,865 $ 532,148 1 $ 30,924,826 Fund Balance excluding Restricted 115 Pension Trust $ 25,724,717 $ 26,256,865 $ 25,924,826 Restricted 115 Pension Trust $ 5,000,000
Assigned For Capital - Sewer, Storm Drain, Tree Replacement 5,863,000 Contingency Per Policy Minimum (30% Op. Ex.) 10,883,924 Contingency Per Policy Goal (50% op. Ex.) 7,255,950
Unassigned Reserves for Future Use (Capital, Debt Reduction or Projects) 1,921,952 Total $ 30,924,826
Projected General Fund Reserve
-25-
Town of Hillsborough
Detailed Explanations
FY 2023-24 Mid-Year Update

1. The General Fund Reserve is projected to be $31.3 million ($26.3 million, not including restricted Section 115 pension trust) on June 30, 2024, an increase of $ 0.5 million compared to the adopted budget. 2 The General Fund Revenues in FY 2023-24 are projected to exceed budget by approximately $1.1 million, primarily for higher than budgeted investment earnings (500k), Excess ERAF (300k), estimated FEMA recovery on winter storm (360k), one-time settlement (200k), offset by lower MVLF revenue (200k).
3 The General Fund operating expenditures projection includes winter storm costs (reimbursable at 70% for police station and others) and higher legal costs. Capital Transfers are on the budget.

FY 2024-25 Baseline Budget Estimate
The preliminary Baseline Budget Projection provides a directional revenue growth and expenditures estimate. It does not fully reflect the program expenditures necessary to accomplish the City Council's FY 2024-25 goals, which will be developed in the detailed budget process in the spring.

Revenue: Property tax-related revenues are projected to increase approximately $1 million (4%), offset by one-time revenue in 2023-24 for FEMA reimbursement, other settlements, and a lower estimate for MVLF compared to 2023-24.

Expenditures: Expenditures include MOU and benefit increases for the current staffing level and operations and do not reflect any changes to the organization or other costs for new programs in 2024-25 that will be identified in the proposed budget.

Capital: The projection assumes $1.2 million in storm drain capital and $0.5 million in facilities based on the prior year's projection for 2024-25. The budget proposal may reflect updated figures.
-26-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
4 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: FY 2024-25 CITY COUNCIL GOAL SETTING – WORK PLAN SUMMARY PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: The City Council held its annual Special Meeting to plan for its goals for the upcoming Fiscal Year (beginning July 1, 2024) to inform the budget planning process. To prepare for the session, the City Manager met with each Councilmember and Department Head to collect the upcoming goals and priorities for the coming year. During the Special Meeting on February 14, 2024, each department presented accomplishments from the prior year as well as the goals for the upcoming year.

Attachment 1 contains the full work plan, including key projects and initiatives currently underway by departments as well as new proposed projects for the coming year. The City Council discussed the new proposed projects and provided direction to staff regarding top priorities to accomplish, listed below.

Key Projects/Initiatives Key Outcome Milestones for 2024-25 Wireless Improve access to wireless
service throughout Town
Conduct analysis of existing policy and code related
to wireless in comparison to similar jurisdictions to
identify any potential changes
Implement Townwide
Chipping Program
Improve wildfire prevention
efforts in Town
Identify scope and resources needed to create and
maintain a town-sponsored chipping program
HNN Funding
Provide support to HNN to
enhance emergency
preparedness
Provide additional funding and designated staff
support to HNN to support programming
Power Outage
Prevention and Backup
Solutions
Reduce risk and impacts
caused by power outages
Review policies and processes to improve resident
access to backup power, including partnerships with
outside agencies
Age Friendly City Action
Plan
Create an age-inclusive
community
Work with task force to determine resources needed
to develop action plan
Next steps will be for staff will work to identify resources needed and implement the identified priorities.

The remaining projects and initiatives have been placed in the “parking lot” to ensure that they are considered in future planning discussions, alternatively there may be additional opportunities that arise throughout the year in which the Council may want to consider moving an item from the parking lot to its work plan.
-27-
Agenda Staff Report - Hillsborough City Council
March 11, 2024

Page 2 ends

FISCAL IMPACT: There is no fiscal impact associated with the approval of the draft work plan; budget requests associated will be included in the proposed budget presented to the City Council.

ENVIRONMENTAL ISSUES: There are no environmental issues associated with this item.

ATTACHMENTS: FY 2024-25 Work Plan
PREPARED BY: Doug Davis, City Manager
RECOMMENDATION: Receive FY 2024-25 Work Plan.
-28-
Town of Hillsborough
City Council 2024-25 Work Plan
*
$
BLD
Key Projects/Initiatives Key Outcome Milestones for 2024-25 Lead Complete Darrel Tank Project Construction PW
Marlborough Tank Site Enhancements PW
Complete Funding Agreements with Partner Cities PW, Finance Determine funding needs, rate and revenue options to
support Highline Project Finance
Respond to Requests for Information to move toward
grant award PW
Street Resurfacing Projects Improve Town Infrastructure Implement street resurfacing program PW * Bike & Pedestrian Master Plan Improve Town Infrastructure Grant award by 7/1; initiate project plan with selected consultant PW
Deploy advanced digital base station radio technology
for enhanced communication infrastructure
PD
Implement cloud-based next generation 911
infrastructure phone system for improved emergency
response
PD
Migrate to next generation 911 infrastructure for
increased service reliability and data access PD
Implement Citizen RIMS for transparency and
compliance with statistical reporting requirements
PD
Procure and implement DOJ compliant remote access
software for uninterrupted dispatch support
PD
Implement "Lemur" Drone program to include the
creation of an HPD drone a cadre of certified pilots
PD
Streamline evidence management system through
consolidation and relocation to dedicated downstairs
facility
PD
Property room accreditation to uphold rigorous
standards for evidence handling PD
Upskilling Property Officer with CSI technician training for enhanced evidence processing capabilities
PD
Report format optimization to align with SMC Crime Lab
protocols and needs PD
Installation of customized lockers to complete storm
damage restoration PD
Recruit four additional police officers to address
vacancies and enhance service coverage PD
Renovate gym to promote officer fitness and well-being
PD
Maintain and optimize vehicle fleet to ensure service
readiness
PD
Conduct feasibility study and cost analysis for potential implementation of a Therapy Dog/Handler program
PD
Implement the motor officer assignment to directly
address traffic safety concerns and targeted
enforcement
PD
Exceed California P.O.S.T. minimum training standards PD Complete mandatory resiliency and wellness training for all personnel to equip them with proactive coping and
stress management skills
PD
Annual confidential therapist consultations for
individual support and personalized mental health
guidance
PD
Implement and advance Chaplain and Peer Support
program
PD
* Tobin Clark Multi-Family Housing Site
Implement Housing Element to
maintain compliance with State
requirements
Discussion with CSM re: Tobin Clark project & site access B&P Outreach and engagement; Community driven
conceptual plans B&P
Facilitate public-private partnership opportunities B&P ADU Education & Outreach campaign B&P
Develop pre-approved ADU plans, by Jan. 2025 as
required by State Law B&P
$ Highline Water Project
New Budget Resources Required
Water Tank Site Improvements
Advance technology to improve
public safety and transparency
Implement technology enhancements
related to public safety services $
Improve operational efficiency Implement training and operational enhancements $
Optimize staff resources and
maintain high level of service
LEGEND
Legally Mandated/Directed by Council
Current In-Motion Programs
New Projects/Initiatives
City Council Priority
Black Mountain & Skyline Site Enhancements PW
Implement Housing Element to
maintain compliance with State
requirements
ADU Program
Improve resources provided to
staff * Implement staff wellness programs
Implement Housing Element to
maintain compliance with State
requirements
Community Visioning Processes for Town
Hall Campus and Tobin Clark Site
$ Invest in staff through training and programs
Improve Town Infrastructure
Improve Town Infrastructure
-29-
*$ Safety Element Update Update General Plan Facilitate Safety Element Update in partnership with the CMO, PW, CCFD, and PD B&P
Enhance Housing Element Communications Improve transparency and communication
Website update to improve housing-related information
and resources B&P
Develop an ADU/Affordable Housing monitoring
program to track permits, rentals, rates, and to inform no net loss findings
B&P
Establish the Housing Choice Fund and associated
Affordable Housing Impact Fee B&P
General Plan Update Update General Plan Finalize updates to General Plan elements to ensure internal consistency B&P
Implement Central Square for online business licensing, permitting cash receipts, and a new payment portal
Finance
Implement final phase of new financial software and
develop customer "how to" videos Finance
Records Management System Update CMO
Agenda Management Software Update CMO
$ Storm Drain Funding Ensure long-term financial security Conduct a study session on long-term financing needs; rate and revenue and debt options Finance
* 2024 Election Improve transparency and
communication Implement requirements related to the 2024 Election CMO Fundraising Event Permit Process Improve customer services Revisit fees and process related to fundraising event permit process CMO
Host Homeowners Insurance Seminar Improve education related to wildfire preparedness Host community meeting with information related to homeowners insurance in high fire severity zones
CMO
$ Age Friendly City Action Plan Create an age-inclusive community
Work with task force to determine resources needed
to develop action plan CMO
Website Refresh Improve transparency and
communication
Work with website provider to redesign look and feel of website CMO
$ Implement Townwide Chipping Program Improve wildfire prevention efforts in Town Identify scope and resources needed to create and maintain a town-sponsored chipping program
CMO/PW
$ Wireless Improve access to wireless service
throughout Town
Conduct analysis of existing policy and code related to wireless in comparison to similar jurisdictions to
identify any potential changes
CMO
$ Climate Action Plan Update Reduce carbon imprint Procure a consultant to update the Town's Climate Action Plan CMO
Enhance Code Enforcement Program related
to vacant lots, signs, delayed construction Reduce code infractions Review municipal code to determine if changes are needed to language
CMO
$ HNN Funding Provide support to HNN to
enhance emergency preparedness Provide additional funding and designated staff support to HNN to support programming

CMO/CCFD/HPD
Power Outage Prevention and Backup Soluti Reduce risk and impacts caused by power outages
Review policies and processes to improve resident
access to backup power, including partnerships with
outside agencies
PW/CMO
Key Projects/Initiatives
Decommissioning of Forestview Tank Site Improve Town Infrastructure Decommissioning of Forestview Tank Site PW Dog Park Expand recreation opportunities Continue informal exploration of dog park opportunities in Town
CMO
Explore on-demand transportation options
available
Improve access to transportation
throughout town Conduct analysis of on-demand transportation options CMO Salary for Councilmembers Expand equity in governance Conduct analysis of Councilmember salaries in neighboring jurisdictions and best practices CMO
Establish Policy for Mayor Rotation Establish processes related to governance
Prepare informational report on policies from
neighboring cities with similar policies to present to City Council
CMO
Redesign Pride Celebration Event Support community events Work with community partners to design and host a pride event CMO
Black Mountain & Skyline Site
Enhancements
Work with community partners to
enhance Town character
Inquire to determine if any additional landscaping
screening or Town-use of the site is possible PW
Explore potential of development of a walking trail in or around Crocker Lake CMO/PW
Tobin Clark Pathway Development - maintain grant
award status (extension through June 2028) CMO/PW
Historical Spending Analysis Ensure long-term financial security Create informational report on historical expenditure trends for review by FAC and City Council
CMO/Finance
Pursue Development of Walking Trails
throughout Town Enhance quality of life

PARKING LOT
System Implementation Improve efficiencies and customer service $
Implement Programs and Fees Related to
Housing Element
Implement Housing Element to
maintain compliance with State
requirements
-30-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
5 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: APPROVAL OF FUNDRAISING EVENT PERMIT APPLICATION 24-01 FOR THE HILLSBOROUGH BEAUTIFICATION FOUNDATION CELEBRATE MAY! EVENT PURSUANT TO CEQA GUIDELINES 15378 AND 15301
SUMMARY: The Hillsborough Beautification Foundation submitted an application to conduct its Celebrate May! event at 2900 Ralston Avenue in Hillsborough. This event is proposed to take place on Thursday, May 2, 2024 from 9:00 a.m. to 12:00 p.m. The total number of guests expected is approximately 200.

Hillsborough Municipal Code Section 5.16.080 requires City Council approval for a fundraising event permit where more than 200 people will be in attendance during any one day at any one property. Public notices have been sent to owners of properties located within a 500-foot radius of the property.

The Police, Fire, and Building & Planning Departments have reviewed the application and submitted comments and recommendations, which are included as an attachment.

FISCAL IMPACT: There is no fiscal impact associated with this agenda item.

ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment. The proposed action is also exempt pursuant to CEQA Guideline 15301 as the permitting of an existing facility involving a temporary negligible expansion of use with no corresponding construction or expansion of existing structures.

ATTACHMENTS: Fundraising Event Permit Application 24-01 and Police Department, Fire Department, and Building & Planning Department Comments and Recommendations PREPARED BY: Lisa Natusch, City Clerk
RECOMMENDATION: Approve Fundraising Event Permit Application 24-01 for the Hillsborough Beautification Foundation Celebrate May! event subject to the conditions recommended by staff. -31-
-32-
-33-
-34-
-35-
-36-
-37-

Page 1 of 2 ends

DATE: January 24, 2024
TO: Lisa Natusch, City Clerk
FROM: Julie Parenti, Fire Inspector
SUBJECT: Celebrate May, Hillsborough Beautification Foundation – Fire Dept. approval The following list is a typical set of conditions the fire department utilizes to ensure a minimum standard of fire and life safety. We recommend that arrangements be made by the applicant for a tour of the event site to receive more detailed comments.

This tour should be conducted at least 14 days prior to the event.

Final conditions of approval are subject to review of floor plans, proposed routes of travel for public viewing, and a field inspection prior to opening. Temporary conversion of this space for public attendance will be acceptable, provided the applicant addresses the following concerns.

1. Provide a floor plan with site dimensions, exits, and proposed foot traffic pattern for the public. Floor plan shall be emailed to Inspector Julie Parenti at [email protected]. A review of the floor plan and arrangement of contents will be used by the Fire Department to determine a maximum occupancy load. Maximum occupancy load shall not exceed this limit. In addition to the overall limit, secondary floor areas served by a single stairway will be further restricted based on a review of floor plans. Event volunteers are to be provided in sufficient numbers to ensure enforcement of the limits. Foot traffic flow pattern shall be designed to minimize overcrowding in any area. Traffic flow shall be continually monitored and regulated by the volunteers.

2. If applicable, a standby fire watch shall be on duty during the time the event is open to the public. The primary responsibility is enforcement of fire and life safety provisions of the California Fire Code. Duties are limited to those activities, except for medical emergencies, or other unusual, or hazardous conditions that may arise. Standby costs are paid by the applicant and are negotiated with the awarded security company.

3. Exterior exit pathways shall be a hard surface walkway free from tripping hazards.

Exterior gates shall be kept unlocked at all times.
-38-

Page 2 of 2 ends

4. Portable fire extinguishers with a minimum UL rating of 2A10BC shall be provided so that travel distance to an extinguisher does not exceed 75’. A fire extinguisher shall be provided for each 3000 square feet of floor area and at least one fire extinguisher shall be provided for each level. Extinguishers shall be accessible and visible. Or their location clearly marked.

5. Building Department approval and permits shall be obtained, if necessary, for remodeling and electrical work. The applicant is responsible for ensuring compliance with all Town of Hillsborough requirements.

6. Light duty extension cords are prohibited. UL approved multi-outlet power taps may be acceptable provided they are connected directly to a permanent outlet.

Power tap cords shall be protected from physical damage and must be located so as not to present a tripping hazard.

7. No smoking signs shall be posted throughout event space (if indoors).

8. Candles, open flame, and other sources of ignition are prohibited (if indoors).

9. Flammable liquids, propane, or other highly flammable materials or decorations are prohibited.

10. The driveway shall be maintained clear for emergency vehicle access during the hours the event is open to the public. Parking related to the event shall not restrict emergency vehicle access.

11. If applicable, tent and canopy installations shall comply with Article 31 of the California Fire Code and Town of Hillsborough requirements. A tent permit shall be obtained from the Fire Department at least 14 business days prior to the event date. An inspection is required for tent installations prior to occupancy. -39-
-40-
-41-
-42-
-43-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
6 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: APPROVAL OF FUNDRAISING EVENT PERMIT APPLICATION 24-02 FOR

THE SOLMATEO SIGNATURE KITCHEN TOUR EVENT PURSUANT TO CEQA GUIDELINES 15378 AND 15301
SUMMARY: SolMateo submitted an application to conduct its Signature Kitchen Tour event at 2250 Skyfarm Road, Hillsborough. This event is proposed to take place on Friday, May 3, 2024, from 10:00 a.m. to 4:00 p.m. The total number of guests expected is approximately 600.

The Police, Fire, and Building & Planning Departments have reviewed the application and submitted comments and recommendations, which are included as an attachment. The Police Department has provided a revised parking plan for use for the event.

FISCAL IMPACT: There is no fiscal impact associated with this agenda item.

ATTACHMENTS: Fundraising Event Permit Application 24-02 and Police Department, Fire Department and Building & Planning Department Comments and Recommendations PREPARED BY: Lisa Natusch, City Clerk
RECOMMENDATION: Approve Fundraising Event Permit Application 24-02 for the SolMateo Signature Kitchen Tour event subject to the revised parking plan provided by the Police Department and the other conditions recommended by staff. -45-
-46-
-47-
-48-
-49-
-50-
-51-
-52-
-53-
-54-

Page 1 of 2 ends

DATE: February 28, 2024
TO: Lisa Natusch, City Clerk
FROM: Julie Parenti, Fire Inspector
(650) 558-7648
SUBJECT: SolMateo Event 2024
The following list is a typical set of conditions the fire department utilizes to ensure a minimum standard of fire and life safety. We recommend that arrangements be made by the applicant for a tour of the event site to receive more detailed comments. This tour should be conducted at least 14 days prior to the event.

1. Provide a floor plan with site dimensions, exits, and proposed foot traffic pattern for the public. Floor plan shall be emailed to Inspector Julie Parenti at [email protected]. A review of the floor plan and arrangement of contents will be used by the Fire Department to determine a maximum occupancy load. Maximum occupancy load shall not exceed this limit. In addition to the overall limit, secondary floor areas served by a single stairway will be further restricted based on a review of floor plans. Event volunteers are to be provided in sufficient numbers to ensure enforcement of the limits. Traffic flow shall be continually monitored and regulated by the volunteers.

Page 2 of 2 ends

3. Exterior exit pathways shall be a hard surface walkway free from tripping hazards.

Exterior exit pathways shall be illuminated at night at any time the event is open to the public. Exterior gates shall be kept unlocked at all times.

5. Building Department approval and permits shall be obtained, if necessary, for remodeling and electrical work. The applicant is responsible to ensure compliance with all Town of Hillsborough requirements.

6. Light duty extension cords are prohibited. UL approved multi-outlet power taps may be acceptable provided they are connected directly to a permanent outlet.

Power tap cords shall be protected from physical damage and must be located so as not to present a tripping hazard.

7. No smoking signs shall be posted throughout event space.

8. Candles, open flame, and other sources of ignition are prohibited.

9. Flammable liquids, propane, or other highly flammable materials or decorations are prohibited.

10. The driveway shall be maintained clear for emergency vehicle access during the hours the event is open to the public. Parking related to the event shall not restrict emergency vehicle access.

11. If applicable, tent and canopy installations shall comply with Article 31 of the California Fire Code and Town of Hillsborough requirements. A tent permit shall be obtained from the Fire Department before inspection. An inspection is required for tent installations prior to occupancy.
-56-
-57-
-58-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
7 PUBLIC HEARING

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: CONCEPTUAL REVIEW OF THE SUBDIVISION OF 1350 SAN RAYMUNDO ROAD (APN 030-091-030) INTO TWO PARCELS AND DEDICATION OF PUBLIC UTILITY

EASEMENTS
SUMMARY: On December 27, 2023, the Town received a Conceptual Plan application to subdivide 1350 San Raymundo Road and into two lots. The proposed subdivision also includes dedication of new five-foot-wide public utility easements.

The relatively sloped property is located near the intersection of San Raymundo Road and Robin Road. 1350 San Raymundo Road is a 1.67-acre net (2.00 acre gross) parcel that contains a single-family residence and associated landscape features. The proposed subdivision would result in two parcels:

1. Parcel A: Proposed at 0.81 acres net (0.89 acres gross) and would be vacant and suitable for a future home with independent driveway access off of San Raymundo Road; and

2. Parcel B: Proposed at 0.86 acres net (1.11 acres gross) would demolish the existing home as a condition of tentative map approval prior to final map recordation. The proposed lot would be suitable for a future home maintaining existing driveway access through the 1320 La Honda Road (Public Works Corporation Yard) property, or within the proposed property frontage, both of which are off of San Raymundo Road.

Hillsborough Municipal Code (HMC) section 16.16.020 requires Conceptual Review of all proposed subdivision projects. This preliminary review of proposed subdivisions is intended to facilitate optimum subdivision design, reduce unproductive efforts by all parties, and bring about a better result for applicants, Town residents and the City Council. The process provides a forum for citizens and the City Council to provide preliminary feedback on issues relating to the subdivision’s design and potential environmental issues. This conceptual review is step one in a multi-step subdivision map approval process and does not constitute final approval of the proposed subdivision. Per the California Subdivision Map Act and HMC Sections 16.16.010.B and

16.16.060, a Tentative and Final Parcel map must be submitted to the City Engineer and reviewed by the City Council in advance of any final subdivision approval.

The proposed subdivision meets all requirements of the State of California Subdivision Map Act and the Town’s Subdivision Ordinance for lot design, access, topography and future building site.

Details on each lot are outlined in the table below:
-59-
Agenda Staff Report - Hillsborough City Council
March 11, 2024

Page 2 ends

Average
Slope (%)
Minimum
Required Lot
Size (Acres)
Proposed Lot
Size (Net)
(Acres)
Maximum
Allowed Floor
Area (SF)*
Existing Floor Area
(SF)
Parcel A 21.3 0.63 0.81 8,793 N/A
Parcel B 24.5 0.66 0.86 5,735 N/A (existing house to
be demolished)
*The total covered floor area shall not exceed twenty-five percent of the net lot area for the first acre plus fifteen percent of the net lot area over one acre. Per HMC Section 17.32.030.

While not required, the applicant has also prepared a conceptual site plan for both proposed parcels, which is included as Attachment 2 to the staff report. Note that the houses are shown in concept only, intended to illustrate that a future new home on the site could meet the minimum development standards required by the Municipal Code. The actual design of any future new home would be subject to review and approval by the Town’s Architecture and Design Review Board (ADRB).

The City Engineer notes that the proposed lot would comply with all other subdivision standard requirements, as outlined in HMC Chapter 16.28, and the new driveway would not cause a traffic concern. Per HMC Section 16.28.020.B, should a future house be constructed on Parcel A, the developer of that project would be required to construct new sewer and water services to the Town mains. As proposed, Parcel A shows a new water service to San Raymundo Road and a new sewer lateral force main within a new private easement through 235 Robin Road, as there is no available sewer main connection off of San Raymundo Road. Prior to tentative map approval, the applicant will also explore the feasibility of extending the existing sewer main to provide a new connection in San Raymundo Road. The developer would be responsible for paying all development charges, including sewer and water capital fees. Parcel B will maintain the existing sewer and water service connections.

No public comment letters were received. Any public comment received after 5:00 p.m. on Wednesday, March 6, 2024 and prior to 4:00 p.m. on Monday, March 11, 2024 will be emailed to the City Council and posted on the Town website.

FISCAL IMPACT: There is no fiscal impact associated with this agenda item.

ENVIRONMENTAL ISSUES: Pursuant to HMC 16.16.020 and 16.16.040, preliminary environmental analysis is performed during the conceptual review of a subdivision. The preliminary environmental analysis is the Town's preliminary review of the conceptual plan and the environmental information form submitted by the applicant and other environmental issues identified during the conceptual review process.

Upon preliminary review and initial study, staff has determined that the applicant shall complete an environmental assessment prior to tentative map approval to determine the appropriate level of CEQA review required. Should the findings of this assessment determine the proposed action is -60-
Agenda Staff Report - Hillsborough City Council
March 11, 2024

Page 3 ends

not exempt under CEQA, the appropriate environmental document shall be prepared for compliance with CEQA.

ATTACHMENTS:

1. Conceptual Vesting Tentative Parcel Map

2. Conceptual Plan

3. Slope Density Exhibit
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION:

1. Open the public hearing and receive comments;

2. Close the public hearing; and

3. Per HMC Section 16.16.060, the City Council shall provide preliminary comment on the Conceptual Plan.
-61-

VICINITY MAP

ABBREVIATIONS

TOPOGRAPHIC SURVEY

CONTOUR INTERVAL

TITLE REPORT

BENCHMARK

BASIS OF BEARINGS

FEMA ZONE
”
“ ”
”
”
”
”
LEGEND

ALLOWABLE BUILDING AREAS
SHEET 1 OF 1
1931 SAN MIGUEL DRIVE, SUITE 100, WALNUT CREEK, CALIFORNIA 94596, (925) 932-6868

LANDS OF VEDARAJAN
ASSESSOR'S PARCEL NUMBER: 030-091-030
(1350 SAN RAYMUNDO ROAD)

HILLSBOROUGH SAN MATEO COUNTY CALIFORNIA

VESTING TENTATIVE PARCEL MAP
NOTES

SAN RAYMUNDO ROAD

PROPOSED PARCEL 'A'
AREA = 35,172 SF (NET) (0.81 Ac.)
38,697 SF (GROSS) (0.89 Ac.)

MINIMUM LOT SIZE BASED

ON AVERAGE SLOPE

PROPOSED PARCEL 'B'

PROPOSED PARCEL 'A'

LANDS OF VEDARAJAN
1350 SAN RAYMUNDO ROAD
A.P.N 030-091-030
AREA = 72,749 SF NET ( 1.67 Ac.)
87,258 SF GROSS (2.00 Ac.)

PROPOSED PARCEL 'B'
AREA = 37,577 SF (NET) (0.86 Ac.)
48,561 SF (GROSS) (1.11 Ac.)

PROPERTY INFORMATION

CONCEPTUAL
SITE

ROBIN ROAD
-62-
ATTACHMENT 1

ROBIN ROAD

SAN RAYMUNDO ROAD

VICINITY MAP
SHEET OF 2

CONCEPTUAL HOUSE

EXHIBIT

VEDARAJAN PROPERTY
1350 SAN RAYMUNDO RD.

HILLSBOROUGH, CA
DECEMBER 24, 2023
1931 SAN MIGUEL DRIVE, SUITE 100, WALNUT CREEK, CA 94596 WWW.DKENGIN.COM (925) 932-6868
SITE

ABBREVIATIONS

TOPOGRAPHIC SURVEY

CONTOUR INTERVAL
1 -63-
ATTACHMENT 2

SAN RAYMUNDO ROAD

VICINITY MAP
SHEET OF 2

CONCEPTUAL HOUSE

EXHIBIT

VEDARAJAN PROPERTY
1350 SAN RAYMUNDO RD.

HILLSBOROUGH, CA
DECEMBER 24, 2023
1931 SAN MIGUEL DRIVE, SUITE 100, WALNUT CREEK, CA 94596 WWW.DKENGIN.COM (925) 932-6868
SITE

ABBREVIATIONS
2 TOPOGRAPHIC SURVEY
CONTOUR INTERVAL -64-
SHEET 1 OF 1

SLOPE DENSITY EXHIBIT

VEDARAJAN PROPERTY
1350 SAN RAYMUNDO RD.

HILLSBOROUGH, CA
DECEMBER 30, 2023
1931 SAN MIGUEL DRIVE, SUITE 100, WALNUT CREEK, CA 94596 WWW.DKENGIN.COM (925) 932-6868

SAN RAYMUNDO ROAD LANDS OF VEDARAJAN
1350 SAN RAYMUNDO ROAD
A.P.N 030-091-030
AREA = 72,749 SF NET ( 1.67 Ac.)
87,258 SF GROSS (2.00 Ac.)
SITE

VICINITY MAP

TOPOGRAPHIC SURVEY

CONTOUR INTERVAL
-65-
ATTACHMENT 3

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
8 INFORMATIONAL

CITY COUNCIL MEETING
MARCH 11, 2024

AGENDA STAFF REPORT
ITEM SUBJECT: PENSION UPDATE
SUMMARY: This agenda item provides an update on the status of the Town’s pension plans. It is an informational item only, and no action is required.

The Town’s pension plans’ funded status ranges from 68.5% to 88.3% as of the latest available actuarial valuation (June 30, 2022).

CalPERS
CalPERS is taking steps to improve the plan's funded status and mitigate risk. The 2021 Asset Liability Management (ALM) process concluded with the CalPERS board adopting new economic and demographic actuarial assumptions, additional asset allocation categories, and a discount rate of 6.8%. With these changes, employer contributions will increase over the next several years.

In addition, investment income is a significant portion of how the annual pension amount is funded.

Member agencies will see year-to-year increases or decreases in required contributions due to yearly fluctuations in investment returns that vary from the discount rate (expected return). The CalPERS board periodically reviews the need for changes to the discount rate, which estimates the long-term expected rate of return rather than the one-year performance of the portfolio.

Town’s Management of Pension Costs
The Town has proactively managed its pension obligation, including paying off the side fund liabilities, creating a second pension formula for miscellaneous employees, partnering with employees to pay a portion of the employer contribution, and more recently, funding a pension 115 trust to maintain reserves to defray future impacts. The Town established and funded the trust in 2019 to have reserves to mitigate future budget volatility from annual contribution changes. Monies placed in a restricted trust account can only be used to pay for pension costs. The reserves will be available to smooth out budget increases from a steep climb in annual required pension contributions. As of June 30, 2023, audited financial statements show that the trust balance is $5.3 million, and the reserve balance equates to approximately 1.3 years of annual pension contribution costs.

Pension Funding Analysis
Annual Pension Cost Affordability
Staff worked with the actuary to prepare a projection of the town’s required annual contribution amounts over the next twenty years. Based on the projection, amounts will nearly double over the next ten years. Contributions then move downward due to the higher number of -67-
Agenda Staff Report - Hillsborough City Council
March 11, 2024

Page 2 ends

employees/retirees in the lower-cost PEPRA pension formula and other policy changes. The analysis reviewed the adequacy of the Section 115 trust to maintain contribution affordability over the next ten years. Based on certain assumptions, the 115 trust is adequate to cover the difference between the projected growth of the required contribution and a target contribution growth capped at 2% per annum. The target amount was established to increase confidence that the pace of growth in pension costs does not overshadow the pace of property-assessed valuation growth, which drives a significant portion of the Town’s revenue.

Improving Funded Status
In addition to looking at how the Town addresses the significant increases in the annual contribution that will be coming in future years, the question arises about how cities can manage their pension liability. Accelerating payments above the required annual contributions would reduce the liability sooner. Doing so comes from excess reserves or revenue and can be fashioned as a one-time payment or a yearly established amount. Some cities establish policies that range from using General Fund unrestricted reserves, using excess revenues for a one-time fee, or establishing a fixed annual funding amount. Given that economic cycles and impacts can come swiftly, the Town handles this question in the annual budget session based on available funds and priorities for the coming year.

FY 2024-25 Approach to Pension Pre-Funding
Providing a periodic update to the City Council on pension liability can help inform any potential additional steps or funding discussions for the coming year. Based on this update and analysis, staff recommends that no additional funding to the 115-pension trust be made for the FY 2024-25 budget. This recommendation is based on the sufficiency of the current trust balance to cover future budget increases and the continued uncertain economic environment. Staff also recommend no advance pension funding for the FY 2024-25 budget.

FISCAL IMPACT: There is no fiscal impact associated with this agenda item.

ATTACHMENTS: PowerPoint presentation
PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION: No action is required. This item is for information only. -68-
© 2024 GovInvest Inc.

Understanding Pension Funding
2 Pension Basics
Changes Since the
Last Valuation and the
Impact of those
Changes
Addressing UAL
How is your agency
doing relative to other
agencies?
-70-
© 2024 GovInvest Inc.

Money going into CalPERS is equal to
the Money coming out of CalPERS
Major Driver of
Plan Cost
-72-
© 2024 GovInvest Inc.

CalPERS Projects Future Benefit Payments using
a Series of Assumptions
5 Economic
• Inflation
• Investment Return
• Salary Growth
Demographic
• Retirement
• Disability
• Death
• Termination
-73-
© 2024 GovInvest Inc.

Hillsborough has Two Safety Benefit Structures
Safety PEPRA Safety
Hire Date On or before
12/31/12
On or after
1/1/13
Formula 3.0% @ 50 2.7% @ 57
Final Compensation Period 12 months 36 months
COLA 2% per year 2% per year
Employee Contributions 9% of pay 14.5% of pay
(50% of Normal Cost)
Additional Employee Contributions 1% of pay None
6 -74-
© 2024 GovInvest Inc.

Hillsborough has Three Miscellaneous Benefit Structures Miscellaneous Miscellaneous
Tier 2
PEPRA
Miscellaneous
Hire Date On or before
7/1/12
Between 7/2/12
and 12/31/12
On or after
1/1/13
Formula 3.0% @ 60 2.0% @ 60 2% @ 62
Final Compensation Period 12 months 36 months 36 months COLA 2% per year 2% per year 2% per year
Employee Contributions 8% of pay 7% of pay

Over the Next Few Years,
More Employees will be in the PEPRA Tier
8 44.5%

60.3%

74.2%

84.5%

93.0%

97.0%
0%
20%
40%
60%
80%
100%
120%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Classic PEPRA % PEPRA
-76-
© 2024 GovInvest Inc.

As the Workforce shifts toward more PEPRA members, the
Normal Cost will decrease as a Percent of Pay
9 -77-
© 2024 GovInvest Inc.

Comparison Metrics
• Funded Percentage
• Plan assets divided by Plan liabilities
• Calculated as of June 30, 2022
• Total Contribution Percentage
• Required Contribution divided by Projected Pensionable Compensation • Payable in Fiscal Year 2024/25
11 -79-
© 2024 GovInvest Inc.

Actuarially Determined Contribution
12 Normal Cost
Unfunded
Actuarial
Liability (UAL)
Amortization
Payment
Total
Employer
Contribution
Cost for current service -
Paid as a percent of payroll
Payment toward past
service - Paid as a dollar
amount each year
Minimum Payment District
can make to CalPERS
-80-
© 2024 GovInvest Inc.

Comparison Group
• Town’s plans are in the risk pool.
• Comparisons are made to similar classifications:
• Classic Miscellaneous Plan against all Classic Miscellaneous Plans • PEPRA Miscellaneous Plan against all PEPRA Miscellaneous Plans • Classic Safety Plan against all Classic Safety Plans
• PEPRA Safety Plan against all PEPRA Safety Plans
13 -81-
© 2024 GovInvest Inc.

CalPERS Investment Return:
-6.1% in 2021/22

CalPERS Actual Investment Returns versus
Assumed Investment Return
26 -3.1%

35.4%

24.6%

13.8%

3.9%

15.7%

9.7%

6.5%

12.5%

14.5%

2.0%

16.3%

15.3%

20.1%

19.5%

12.5%

10.5%
-7.2% -6.1%

3.7%

16.6%

12.3%

11.8%

19.1%
-5.1%
-24.0%

13.3%

21.7%

0.1%

13.2%

18.4%

2.4%

0.6%

11.2%

8.6%

6.7%

4.7%

21.3%
-6.1%

5.8%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023 Plan Year Ending June 30
Investment Return Discount Rate 5 per. Mov. Avg. (Investment Return) Dot Com Crash
Great Recession
Discount Rate = Assumed Investment Return Rate
-94-
© 2024 GovInvest Inc.

Less Money from Investment Return means
More Money Required from Contributions
27 Contributions
-95-
© 2024 GovInvest Inc.

What is the Impact of those
Changes?
How did the above change impact the Town’s Funded Percentage and Contribution? Now and in the future?
29 -97-
© 2024 GovInvest Inc.

With 115 Trust
35 -103-
© 2024 GovInvest Inc.
115 Trust Balance
• As of June 30, 2022: $4.98 Million
• As of June 30, 2023: $5.31 Million
36 -104-
© 2024 GovInvest Inc.

Contingency Reserve Account 115 Trust
Fixed income investing only Fixed Income or diversified investing available
Investments not tailored for long term use Can be tailored for short- or long-term use Revocable Irrevocable (for non-pension expenses)
Can be accessed for other uses Dedicated solely for pension costs Unprotected from creditors Exclusive benefit/protected from creditors Reserves Are the Cornerstone of
Financial Flexibility
17 -105-
© 2024 GovInvest Inc.

Potential Uses of 115 Trust
• Town gets to decide when to move money to CalPERS
• Dedicated solely for pension costs
• Pay some or all of required contribution to CalPERS
• Make additional contribution to CalPERS
• Projections on the following slides assume that the money will remain in the 115 Trust
-106-
© 2024 GovInvest Inc.

Unfunded Accrued Liability (With Trust)
39 -$30
-$20
-$10
$0
$10
$20
$30
$40
$50
2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043 Millions
As of July 1
2023 Without Trust 2023 With Trust
-107-
© 2024 GovInvest Inc.

Funded Percentage (With Trust)
40 60%
70%
80%
90%
100%
110%
120%
2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043 As of July 1
2023 Without Trust 2023 With Trust
-108-
© 2024 GovInvest Inc.

Addressing Unfunded
Liability
Approaches the Town can take to control future Unfunded Liability 41 -109-
© 2024 GovInvest Inc.

Why Address Unfunded Liability?
• Most of current Required Contribution is due to payment toward Unfunded Actuarial Liability
• The Town is effectively paying interest to CalPERS for Unfunded Actuarial Liability
• Current interest rate is 6.8%
42 -110-
© 2024 GovInvest Inc.

What is Unfunded Actuarial Liability?
• When actual plan experience is different than the plan’s assumptions, new Unfunded Actuarial Liability (UAL) is created.
• UAL is also created when assumptions are changed.
• UAL increases when experience is worse for the plan than what was assumed. For example, when the Investment Return assumption was lowered to 6.8%.
• UAL decreases when experience is better for the plan than what was assumed. For example, when the Investment Return is greater than the assumed Interest Rate.
• It can also happen for salary increases, or demographic changes, such as high levels of turnover, or increasing life expectancy. 44 -112-
© 2024 GovInvest Inc.

Unfunded Actuarial Liability
should be Monitored Regularly
• Paying off the current UAL does not mean there will be no Unfunded Actuarial Liability in the future.
• Each year, new Unfunded Actuarial Liability (both positive and negative) will be created based on plan assumptions and experience.

These are referred to as Amortization Bases.
• Payments toward the new UAL Amortization Bases are generally amortized over a 20-year period.
45 -113-
© 2024 GovInvest Inc.

Each Year, UAL is Adjusted due to the Previous Year’s
Experience, and paid off over a 20-Year Period
46 $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2023202420252026202720282029203020312032203320342035203620372038203920402041204220432044 UAL Payments
2021 Bases 2022 Bases 2023 Bases
-114-
© 2024 GovInvest Inc.

Potential Approaches to Addressing UAL
• One-time Additional Contribution
• Additional Annual Contributions
• Budgeted
• Based on Budget Surplus or Other Savings
47 -115-
© 2024 GovInvest Inc.

Where Does the Money Go?
• Direct to CalPERS
• Which amortization bases will you pay off?
• 115 Trust
• Internal Reserve
48 -116-
© 2024 GovInvest Inc.

While tested against actuarial valuation results, the software results will not necessarily match actuarial valuation results, as no two actuarial models are identical. The software offers financially sound projections and analysis; however, outputs do not guarantee compliance with standards under the Government Accounting Standards Board or Generally Accepted Accounting Principles. The software and this presentation are not prepared in accordance with standards as promulgated by the American Academy of Actuaries, nor do outputs or this presentation constitute Statements of Actuarial Opinion. GovInvest has used census data, plan provisions, and actuarial assumptions provided by Customer and/or Customer’s actuary to develop the software for Customer. GovInvest has relied on this information without audit.

Disclaimer
50 -118-

Hillsborough City CouncilMarch 11, 2024

Hillsborough City Council
March 11, 2024