Hillsborough City Council
September 8, 2025

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

A G E N D A
MONDAY, SEPTEMBER 8, 2025
5:00 PM CLOSED SESSION
6:00 PM CITY COUNCIL MEETING
Hillsborough Town Hall
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. Speakers may speak for up to three minutes.

To participate in the meeting via Zoom Video Conference:
• Log in to the meeting at https://us06web.zoom.us/j/89546345816?pwd=sPcmnQubQoxka85bOVX8K6m2AS3dQW.1 • Dial-in via phone:
+1 669 444 9171 US
Meeting ID: 895 4634 5816
Passcode: 382429
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 for up to three minutes.

CLOSED SESSION (5:00 pm)

CALL TO ORDER

ROLL CALL

ANNOUNCEMENT OF CONFLICT OF INTEREST ON CLOSED SESSION ITEM(S) This portion of the agenda is for Councilmembers to disclose any conflict of interest related to the item(s) 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.

Agenda – Hillsborough City Council
Monday, September 8, 2025

CLOSED SESSION ITEM
A. CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(d)(4)
Town as Plaintiff – One Potential Case

PUBLIC COMMENT ON CLOSED SESSION ITEM(S)
Members of the public may provide public comments on the item(s) 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.

ADJOURN CLOSED SESSION
REGULAR CITY COUNCIL MEETING (6:00 pm)
I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. REPORT FROM CLOSED SESSION
V. RECOGNITION
• RETHINKWASTE TRASH TO ART CONTEST – INDIVIDUAL 3RD GRADE WINNER VI. PROCLAMATIONS
• SUICIDE PREVENTION MONTH
• CHILDHOOD CANCER AWARENESS MONTH
• NATIONAL COMMUNITY EMERGENCY RESPONSE TEAM (CERT) WEEK, SEPTEMBER 14-20, 2025
VII. PRESENTATION
• HILLSBOROUGH NEIGHBORHOOD NETWORK (HNN) PROGRAM UPDATE VIII. TOWN UPDATE
IX. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
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, Agenda – Hillsborough City Council
Monday, September 8, 2025

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.

X. 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.

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

1. APPROVE CITY COUNCIL MEETING MINUTES OF AUGUST 11, 2025

2. MONTHLY CLAIMS: AUGUST 1 THROUGH AUGUST 31, 2025

3. RECEIVE LEGISLATIVE UPDATE

4. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH CSG CONSULTANTS, INC.

FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $200,000.00, FOR A TOTAL BUDGET OF $600,000.00, UNDER CEQA GUIDELINE 15378

5. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH CSG CONSULTANTS, INC.

FOR AS-NEEDED PROJECT MANAGEMENT & MUNICIPAL SERVICES IN THE AMOUNT OF $800,000.00, FOR A TOTAL BUDGET OF $2,400,000.00, UNDER CEQA GUIDELINE 15378

6. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AMENDMENT TO THE EXISTING AGREEMENT WITH EKI ENVIRONMENT & WATER, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $250,000.00, FOR A TOTAL BUDGET OF $750,000.00, UNDER CEQA GUIDELINE 15378

7. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH FREYER & LAURETA, INC.

FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $90,000.00, FOR A TOTAL BUDGET OF $180,000.00, UNDER CEQA GUIDELINE 15378

8. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AMENDMENT TO THE EXISTING AGREEMENT WITH NINYO & MOORE GEOTECHNICAL AND ENVIRONMENTAL SCIENCES CONSULTANTS FOR ASNEEDED GEOTECHNICAL ENGINEERING AND MATERIALS TESTING SERVICES IN THE AMOUNT OF $90,000.00, FOR A TOTAL BUDGET OF $270,000.00, UNDER Agenda – Hillsborough City Council
Monday, September 8, 2025

CEQA GUIDELINE 15378

9. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AMENDMENT TO THE EXISTING AGREEMENT WITH PAKPOUR CONSULTING GROUP, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $200,000.00, FOR A TOTAL BUDGET OF $600,000.00, UNDER CEQA GUIDELINE 15378

10. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH R.E.Y. ENGINEERS, INC.

FOR AS-NEEDED SURVEYING SERVICES IN THE AMOUNT OF $15,000.00, FOR A TOTAL BUDGET OF $45,000.00, UNDER CEQA GUIDELINE 15378

11. RESOLUTION AWARDING TO AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH CASEY CONSTRUCTION, INC. FOR THE SHADY LANE STORM DRAIN REPLACEMENT PROJECT IN THE AMOUNT OF $668,414.00, WITH A 20% CONTINGENCY IN THE AMOUNT OF $133,682.80, FOR TOTAL COST OF $822,096.80, UNDER CEQA GUIDELINE 15301
XII. PUBLIC HEARING

12. RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 2455 SUMMIT DRIVE UNDER CEQA GUIDELINE 15303 AND

RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT
APPLICATION FOR 2419 OAKDALE ROAD UNDER CEQA GUIDELINE 15303 XIII. OLD BUSINESS

13. 40 BAYWOOD AVENUE PROPERTY DONATION - RESPONSE FROM TRUSTEE

14. ACCEPT SOLID WASTE RATE STUDY AND AUTHORIZE IMPLEMENTATION OF THE

RECOMMENDATIONS
XIV. NEW BUSINESS

15. DESIGNATION OF A VOTING DELEGATE AND ALTERNATE VOTING DELEGATE(S) TO THE 2025 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE AND EXPO OCTOBER 8-10, 2025
XV. DISCUSSION

16. DISCUSSION OF POTENTIAL REVISIONS TO HILLSBOROUGH MUNICIPAL CODE CHAPTER 17.52 RELATED TO ACCESSORY DWELLING UNITS (ADUs)

17. UPDATE FROM THE CITY COUNCIL SUBCOMMITTEE FOR THE TOWN HALL

COMPLEX PROJECT
Agenda – Hillsborough City Council
Monday, September 8, 2025

XVI. 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.

XVII. 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. All oral comments made at public meetings, including a speaker’s name, are recorded and included as part of the public record in the meeting minutes. Meeting minutes are publicly accessible via the Town website and via various internet search engines. Written comments, including a commenter’s name, are a public record and subject to disclosure on the Town website and/or upon request under the California Public Records Act (with personal contact information including personal email addresses and personal phone numbers redacted).

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.

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PROCLAMATION
Suicide Prevention Month
September 2025
WHEREAS, the Town of Hillsborough recognizes the month of September as Suicide Prevention Month, to spread the message that suicide can be prevented; and
WHEREAS, in 2024, 69 people died by suicide in San Mateo Countyand 13,239 calls were received by the San Mateo County Crisis Line, including 5,613 routed from 988 (42%) and 1,028 texts and 499 chats from 988; and
WHEREAS, Town ofHillsborough residents are urged to playa role insupporting each other andpreventing suicide by knowing the signs of suicide, finding thewords to communicate, and reaching out to local 2417 resources, including ourlocal SanMateo CountyStarVista CnsisHotline (650-579-0350) orNational Suicide Prevention Lifeline (988 or 1-800-273-TALK);and
WHEREAS, residents are urged to play a role in supporting each other and preventing suicide by knowing the signs ofsuicide, finding words of support andreaching out to local resources, including calling or texting the 988 Crisis Lifeline, mobilecrisis teams by calling 650-579-0350, Altematives to Suicide Peer Support Group (by Heart and Soul, Inc), Suicide Loss Support Group (by Mission Hospice & Homecare) and Be Sensitive Be Brave andMentalHealthFirst Aid Trainings(byKingdom Love); and WHEREAS, beyond the month of September, members of the community canjoin the San Mateo County Suicide Prevention Committee which provides oversight and direction to suicide preventionefforts in the Countyandadvances thismission byfocusing on strategies andactivities in theSuicidePrevention Roadmap 2021-2026 which reco1mnends activities that span across the continuwn of care, including stable housing, education and trainings andrisk-appropriate treatment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby proclaims September 2025 as Suicide Prevention Month and calls upon our community to find their role in suicide prevention.
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PROCLAMATION
Childhood Cancer Awareness Month
September 2025
WHEREAS, September is nationally recognized as Childhood Cancer Awareness Month, represented by a gold nbbon, to raise awareness, inspire action, and honor the bravery of children and teens battling cancer, as well as survivors and their families; and
WHEREAS, childhood cancer is the leading cause of disease-related death among children in the United States, with 1 in 285 cmldren diagnosed by the age of 20. In 2024, more than 14,910 children were diagnosed, and 1,590 lost their lives to this devastating disease; and WHEREAS, unlike many adult cancers, 80% of cmldhood cancers are already advanced or have spread by the time they are diagnosed Despite key biological chfferences, many cmldren are still treated with adult-based protocols, often leading to severe and lasting side effects; and WHEREAS, children and teens fighting cancer endure countless surgeries, treatments, and emotional challenges, wmle continuing to display extraordinary strength and resilience; and WHEREAS, hundreds of non-profit organizations at the local and national level are helping children with cancer, and are working tirelessly to change these statistics; and WHEREAS, the ch'splay of gold ribbons and the golden lighting of Town Hall in the month of September symbolize our community's commitment to raise awareness and support for cmldhood cancers.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough does hereby proclaim September 2025 as Childhood Cancer Awareness Month and encourages all residents to provide suppo1t to those who have been impacted by childl10od cancers by advocating for increased awareness, research, and compassionate care.

September 8, 2025
Date

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PROCLAMATION
National CERT Week
September 14-20, 2025
WHEREAS, the Community Emergency Response Team (CERT) program trains volunteers in essential skills such as fire safety, light search and rescue, team organization, and disaster medical operations; and WHEREAS, the Central County Fire Department CERT program, serving Burlingame, Hillsborough., and Millbrae, has achieved notable ll111estones, including becoming the first in Northem Califomia to offer CERT training in Mandarin Chinese and launching the region's first Teen CERT Boot Camp; and WHEREAS, the National CERT Association has designated the week of September 14-20, 2025 as National CERT Week to highlight and celebrate the accomplishments of CERT programs across the country; and
WHEREAS, the 2025 theme, ''Every Community Needs a CERTain Kind of Hero, " recognizes the thousands of everyday individuals who step up, get trained, and serve their communities dwi.ng times of need,· and
WHEREAS, the Town of Hillsborough values the dedication of CERT volunteers who give their time, energy, and expertise to strengthen our community and support residents and first responders in emergencies.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough. does hereby proclaim September 14-20, 2025 as National CERT Week and encourages all residents to participate in CERT training and volunteer activities that contzibute to a safer, stronger community.

September 8, 2025
Date

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: APPROVE CITY COUNCIL MEETING MINUTES OF AUGUST 11, 2025 -9-

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

UNAPPROVED MINUTES
MONDAY, AUGUST 11, 2025
4:00 PM STUDY SESSION
5:00 PM CLOSED SESSION
6:00 PM CITY COUNCIL MEETING
Hillsborough Town Hall
Meetings of the City Council are held in-person at Town Hall. 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.

STUDY SESSION

CALL TO ORDER
Mayor Cole called the meeting to order at 4:01 p.m.

ROLL CALL

Present: Adams, Chuang, Krolik, Ragsdale, Cole
A. STUDY SESSION: SOLID WASTE RATE STUDY
Finance Director Jan Cooke introduced the item. Rick Simonson, Senior Vice President, HF&H, provided the report.

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

Following discussion, by consensus, the City Council expressed support for the Financial Advisory Committee recommendation to move forward with the changes to residential service recommended by HF&H, the “no phase out” for commercial service, and direction to the City Manager that staff meet with each of the six commercial accounts to discuss the reasons for the changes and see if they want to lower their level of service to reduce their cost.

ADJOURN STUDY SESSION
Mayor Cole adjourned the Study Session at 5:03 p.m.

CLOSED SESSION

CALL TO ORDER
Mayor Cole called the meeting to order at 5:03 p.m.

ROLL CALL

Present: Adams, Chuang, Krolik, Ragsdale, Cole

PUBLIC COMMENT ON CLOSED SESSION ITEM(S)
There were no speakers.

ANNOUNCEMENT OF CONFLICT OF INTEREST ON CLOSED SESSION ITEM(S) There were no announcements of conflict of interest.
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CLOSED SESSION ITEM

ADJOURN CLOSED SESSION
The Closed Session adjourned at 5:55 p.m.

REGULAR CITY COUNCIL MEETING
I. CALL TO ORDER
Mayor Cole called the meeting to order at 6:01 p.m.

II. ROLL CALL

Present: Adams, Chuang, Krolik, Ragsdale, Cole
III. PLEDGE OF ALLEGIANCE
Mayor Cole led the Pledge of Allegiance.

IV. REPORT FROM CLOSED SESSION
City Attorney Christopher Diaz reported that the City Council met in Closed Session and voted unanimously (5-0) to initiate litigation, and the particulars would be shared at the time that any litigation is filed.

V. PROCLAMATION
• National Emergency Management Awareness Month
Councilmember Chuang read a proclamation and presented it to Deputy Fire Chief Jonathan Cox and Community Resiliency Specialist/CERT Program Manager Dena Gunning. Community Resiliency Specialist/CERT Program Manager Gunning provided comments and presented a brief video regarding emergency managers.

VI. PRESENTATION
• Introduction of Burlingame-Hillsborough Youth Poet Laureate and Updates from the Burlingame Library and San Mateo Library
Burlingame City Librarian Bradley McCulley provided comments regarding the Youth Poet Laureate Program and introduced Burlingame-Hillsborough Youth Poet Laureate Ollie Ballard. Youth Poet Laureate Ballard provided brief comments and read their poem, “Conversations at the Dinner Table.” City Librarian McCulley provided an update from the Burlingame Library and responded to City Council questions.

San Mateo City Librarian Rukshana Singh provided an update from the San Mateo Library and responded to City Council questions.

VII. TOWN UPDATE
City Manager Doug Davis provided an update on events and activities in the town.

VIII. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
There were no speakers.

IX. ANNOUNCEMENT OF CONFLICT OF INTEREST
A. CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(d)(4)
Town as Plaintiff – One Potential Case
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Unapproved Minutes – Hillsborough City Council
Monday, August 11, 2025

There were no announcements of conflict of interest.

X. CONSENT CALENDAR
Councilmember Krolik provided comments on Item 6.

Vice Mayor Ragsdale provided comments on Item 8.

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

On motion by Councilmember Krolik, seconded by Councilmember Chuang and unanimous on roll call vote, the Consent Calendar was approved.

1. APPROVE CITY COUNCIL MEETING MINUTES OF JULY 14, 2025 The City Council meeting minutes of July 14, 2025 were approved.

2. MONTHLY CLAIMS: JULY 1 THROUGH JULY 31, 2025
The monthly claims for July 2025 were approved as submitted.

3. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH URBAN FUTURES, INC. FOR FINANCIAL CONSULTING SERVICES IN AN AMOUNT NOT TO EXCEED $100,000.00
The resolution approving and authorizing the City Manager to execute an agreement with Urban Futures, Inc. for financial consulting services in an amount not to exceed $100,000.00 was adopted.

4. RECEIVE LEGISLATIVE UPDATE
The July 2025 Legislative Update was received.

5. FORM AN AD HOC SUBCOMMITTEE OF THE CITY COUNCIL TO REVIEW

REGULATIONS OF COMMERCIAL ACTIVITY IN THE TOWN AND APPOINT TWO

COUNCILMEMBERS TO THE SUBCOMMITTEE
By motion, an Ad Hoc Subcommittee of the City Council to Review Regulations of Commercial Activity in the Town was formed and Councilmember Adams and Vice Mayor Ragsdale were appointed to the ad hoc subcommittee.

6. RESOLUTION AWARDING TO AND AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACT WITH LVI ENGINEERING FOR THE MACADAMIA ACCESS ROAD REPAIR PROJECT – PHASE 1 (EAST) IN THE AMOUNT OF $982,425.00, WITH A 10% CONTINGENCY IN THE AMOUNT OF $98,242.50, FOR TOTAL COST OF $1,080,667.50, AND APPROVAL OF A BUDGET AMENDMENT, REALLOCATING THE APPROVED FY 2025-26 BUDGET SPENDING FROM THE CAPITAL FUND TO THE SEWER FUND, UNDER CEQA GUIDELINE 15301
The resolution awarding to and authorizing the City Manager to execute the contract with LVI Engineering, Inc. for the Macadamia Access Road Repair Project – Phase 1 (East) in the amount of $982,425.00, with a 10% contingency of $98,242.50 if needed, for a total construction budget of $1,080,667.50, and approve a budget amendment, reallocating the approved FY 2025-26 Budget spending from the Capital Fund to the Sewer Fund was adopted.

7. RESOLUTION APPROVING THE SUMMARY VACATION OF AN UNUSED SEGMENT OF AN EXISTING FIVE-FOOT-WIDE PUBLIC UTILITY EASEMENT AT 259 BRIDGE ROAD, UNDER CEQA GUIDELINE 15301
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The resolution approving the summary vacation of an unused segment of an existing five-foot-wide public utility easement at 259 Bridge Road, under CEQA Guideline 15301 was adopted.

8. RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AMENDMENT TO THE AMENDED AND RESTATED WATER SUPPLY

AGREEMENT BETWEEN THE CITY AND COUNTY OF SAN FRANCISCO AND

WHOLESALE CUSTOMERS IN ALAMEDA COUNTY, SAN MATEO COUNTY, AND SANTA CLARA COUNTY AND UPDATED TIER 2 DROUGHT RESPONSE

IMPLEMENTATION PLAN AND RESOLUTION APPROVING AND ADOPTING THE TIER 2 DROUGHT RESPONSE IMPLEMENTATION PLAN PURSUANT TO SECTION

3.11.C OF THE AMENDED AND RESTATED WATER SUPPLY AGREEMENT, UNDER CEQA GUIDELINE 15301
The resolution approving and authorizing the City Manager to execute an amendment to the Amended and Restated Water Supply Agreement between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County (WSA) and the resolution approving and adopting the Tier 2 Drought Response Implementation Plan pursuant to Section 3.11.C of the Amended and Restated Water Supply Agreement, under CEQA Guideline 15301 were adopted.

XI. PUBLIC HEARING

9. RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 632 FAIRWAY CIRCLE UNDER CEQA GUIDELINE 15303 Director of Public Works Paul Willis provided the staff report.

Mayor Cole opened the Public Hearing at 6:59 p.m. There were no speakers. Mayor Cole closed the Public Hearing at 7:00 p.m.

On motion by Councilmember Chuang, seconded by Councilmember Adams and unanimous on voice vote, the resolution approving the Revocable Encroachment Permit Application for 632 Fairway Circle under CEQA Guideline 15303 was adopted.

XII. NEW BUSINESS

10. INTRODUCTION OF AN ORDINANCE AMENDING SECTION 2.12.070 OF THE

HILLSBOROUGH MUNICIPAL CODE REGARDING AN INCREASE TO THE SQUARE

FOOTAGE OF ADDITIONS AND ACCESSORY STRUCTURES SUBJECT TO DESIGN

REVIEW AND CONSIDERATION BY THE ARCHITECTURE AND DESIGN REVIEW BOARD
Senior Planner Linda Roberson provided the staff report. City Attorney Diaz provided additional information.

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

Following discussion, City Attorney Diaz summarized City Council direction to staff to return with more information on the appeals process and the Architecture and Design Review Board process for consideration of introduction of the ordinance at the next City Council meeting.

11. OVERVIEW OF UPDATES TO THE TOWN OF HILLSBOROUGH SEWER SYSTEM

MANAGEMENT PLAN
Director of Public Works Paul Willis introduced the item. Senior Analyst Ed Cooney provided the staff report.

Mayor Cole opened public comment. There were no speakers. Mayor Cole closed public comment.
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XIII. CITY COUNCIL ITEMS
Councilmember Adams provided a presentation and reported her attendance at a meeting of the Hillsborough Neighborhood Network and a meeting of the Financial Advisory Committee.

Councilmember Adams reported her attendance at a meeting with Director of Public Works Paul Willis and RethinkWaste Executive Director Joe La Mariana and stated that residential curbside pickup of motor oil and oil filters is currently available, and that cooking oil may be recycled at the Shoreway Recycling Center in its original container or may be frozen and placed in yard waste containers. Councilmember Adams reported her work on underground utilities, telecommunications, an ordinance update regarding commercial activity in the town, and reported two site visits to Tobin Clark and that five proposals were submitted for a consultant. Councilmember Adams expressed appreciation to the Public Works Department for the installation of a new sign in her neighborhood.

Councilmember Krolik reported her attendance at a meeting with representatives of the Carpenters Union, the Relay for Life Cancer Walk, a meeting of the Financial Advisory Committee, a meeting of the Architecture and Design Review Board, and a meeting of the SFO/Airport Community Roundtable in which the annual workplan was approved.

Councilmember Chuang congratulated Geoff Chenier on his promotion to Police Captain, reported her attendance at a meeting of the SamTrans Board of Directors in which the Board opted in to SB 63, a walkthrough of North School with the Hillsborough Neighborhood Network team in preparation for Neighborfest, and reported her attendance at San Mateo County Disaster Preparedness Day.

Vice Mayor Ragsdale provided a presentation and reported her attendance at the first Hillsborough Youth Commission meeting of the year, the Teen CERT Bootcamp graduation ceremony, a Samaritan House backpack drive, the Council of Cities meeting hosted by the Town of Atherton, a League of California Cities webinar “Crunch Time at the Capitol: Key Bills for Cities After Summer Recess,” the Senior Scam Stopper Seminar hosted by Assemblymember Diane Papan, Peninsula Clean Energy Ad Hoc Committees and meeting of the BAWSCA Board of Directors.

Mayor Cole reported her attendance at the Council of Cities meeting hosted by the Town of Atherton and a meeting of the C/CAG Board of Directors in which SB 63 was discussed.

XIV. ADJOURNMENT
Mayor Cole adjourned the meeting at 8:04 p.m.
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
2 CONSENT CALENDAR

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: MONTHLY CLAIMS: AUGUST 1 THROUGH AUGUST 31, 2025 SUMMARY: The monthly claims for the month of August 2025 in the amount of $8,549,008.79 are submitted for approval.

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

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.

ATTACHMENTS: Monthly Claims Listing
PREPARED BY: Richard Santiago, Assistant Finance Director RECOMMENDATION: Approve the monthly claims for August 2025 as submitted. -15-

TOWN OF HILLSBOROUGH

REPORT OF GOODS & SERVICES PURCHASED
DURING THE MONTH OF AUGUST 2025
PREPARED BY:

Alan Singh
Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 -16-
GOODS & SERVICES PURCHASED $4,985,892.94
NET SALARIES & TAXES PAID 1,665,795.74
HEALTH BENEFIT PREMIUMS 197,726.55

BOND PAYMENTS -
CCFD FUNDING 773,946.00
SAN FRANCISCO WATER PAYMENTS 925,647.56
TOTAL COST OF GOODS & SERVICES TO BE APPROVED $8,549,008.79

FINANCE DIRECTOR DATE

CITY MANAGER DATE
DURING THE MONTH OF AUGUST 2025

SUMMARY OF PURCHASES

TOWN OF HILLSBOROUGH
Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 9/3/2025
9/3/2025
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COMPARATIVE SUMMARY
For the Month of August 2025
Aug-25 Aug-24 Aug-23
Goods & Services Purchased:

Operations 2,426,571.25 3,499,298.36 3,539,355.77
Capital 2,559,321.69 1,253,336.35 2,137,760.76
Net Salaries & Taxes Paid 1,665,795.74 1,578,785.35 938,254.01 Health Benefit Premiums 197,726.55 191,981.69 168,672.00 CCFD Funding 773,946.00 743,775.00 703,368.00
San Francisco Water Payments 925,647.56 983,006.17 750,436.55 Total $8,549,008.79 $8,250,182.92 $8,237,847.09
NOTES:

Operations -
payments in August 2024 such as the City of San Mateo for the Clean Water Program and Recology San Mateo.

Capital -
Net Salaries & August 2025 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, 2025.

CCFD -
Water -
FY 25/26 spending is consistent with FY 24/25 spending except for timing of reoccurring Capital project spending in July 2025 is primarily for Priority Basins Rehab & Kenilworth Project, Highline Water Project, and the Street Resurfacing Project.

FY 25/26 contribution is based on budget/contract.

There was an SFPUC wholesale water rate increase on July 1, 2025 to $5.80 (from $5.67, a 2.3 % increase). The decrease in FY 25/26 as compared to FY 24/25 is attributed lower units purchased, somewhat offset by the SFPUC rate increase.

Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 -18-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING AUGUST 2025
CK # VENDOR DESCRIPTION AMOUNT
17833 AFLAC JUN '25/JUL '25 INSURANCE PREMIUM HR 5,434.47 17834 AGUILAR & SONS REPAIR - INSTALL ASPHALT VARIOUS SITES PW 73,515.00 17835 ALEXANDER & ASSOCIATES, INC. LAND SURVEY WEDGEWOOD/CROCKER SCHOOL PW 2,400.00 17836 ALLIANT INSURANCE 2025-26 COMMERCIAL CYBER LIABILITY INSURANCE 44,689.84 17837 AT&T 6/10/25-7/9/25 1,759.71
17838 AT&T 6/17/25-7/16/25 PD 62.51
17839 AT&T TOWER DUMP PD 95.00
17840 AUTO PRIDE CAR WASH, INC JUL'25 CAR WASHES PD 210.93 17841 BARKER BLUE DIGITAL IMAGING, INC IMAGING SVC - DRAWING UPLOAD MACADAMIA PW 40.00 17842 BAY AREA WATER SUPPLY & CONSERVATION AGENCY WATER LOSS CONTROL PROGRAM SEP '24 PW 5,126.50 17843 BAY PRO AUG '25 LANDSCAPE MAINT VARIOUS SITES HBF 3,187.00 17844 BAYSIDE BUILDING MATERIALS INC MATERIALS - BASE ROCK/SOIL PW 515.24 17845 BKF ENGINEERS A2 PHASE 2 DESIGN PRJ PW 1,090.63
17846 BOSCO OIL COMPANY GAS/DIESEL PW/PD 3,706.71
17847 BURNETT LANDSCAPE DEVELOPMENT INC MAINT-JUN-JUL '25 TOWN LANDSCAPE VARIOUS SITES 12,516.32 17848 C/CAG FY 2025-26 GAS TAX/GEN FUND/ CONGESTION RELIEF 37,250.00 17849 CALIFORNIA PUBLIC POLICY GROUP, INC LEGAL RETAINER JUL '25 CM 4,000.00 17850 CALPERS 1959 SURVIVOR CONTRIBUTION CLASSIC/PEPRA PD 1,902.40 17851 CASEY CONSTRUCTION, INC. REPLACE - STORM DRAINS MULTIPLE LOCATIONS PW 35,150.00 17852 CENTRAL COUNTY FIRE DEPARTMENT AUG'25 FISCAL CONTRIBUTION 773,946.00 17853 CINTAS CORPORATION NO 3 UNIFORM CLEANING SERVICE PW 1,999.86 17854 CINTAS CORPORATION NO 3 SUPPLIES - FIRST AID KIT ALL DEPARTMENTS PW 1,171.37 17855 CLARK PEST CONTROL PEST CONTROL - PW/PD 251.00
17856 COUNTY OF SAN MATEO PUBLIC SAFETY COMMUNICATIONS JUL-SEP'25 MESSAGE SWITCH PD 2,113.75 17857 COMCAST JUL '25 PW 470.83
17858 CONCORD TRAILER WORLD, INC PURCHASE - POLARIS TRAILER PW 6,188.94 17859 CORE & MAIN LP PARTS - COUPLINGS STATION #32 PW 154.74 17860 CSG CONSULTANTS, INC. CIP ADM SEWER 3/29/25-4/25/25 30,975.00 17861 CUSTOM TOPS INC EQUIP - WINCH CABLES TRUCK #593/#560 PW 1,124.75 17862 CYNTHIA RICHARDSON CONSULT - JUL '25 PLANNER SERVICES BP 12,555.00 17863 DAILY JOURNAL CORPORATION LEGAL NOTICE 7/1-9/25 MACADAMIA ACCESS RD REPAIR 988.24 17864 DARRYL PANG JUL'25 POLYGRAPH SERVICES PD 375.00
17865 EOA, INC JUN '25 NPDES ANNUAL REPORT PW 6,428.00
17866 EPS, INC. REFUND - HYDRANT METER DEPOSIT PW 2,000.00 17867 ESA CHERRY CREEK ENVIRO SUPPORT POST CONSTRUCT 6,364.65 17868 FASTENAL COMPANY SUPPLIES - PERSONNEL PROTECTIVE EQUIP PW 438.29 17869 FERGUSON US HOLDINGS, INC PARTS - VARIOUS ITEMS PW 839.84 17870 FOSTER & FOSTER CONSULTING ACTUARIES, INC 24/25 GASB 75 REPORT FN 2,750.00 17871 FOUR STAR AUTOMOTIVE, INC MAINT - MULTIPLE VEHICLES PW 3,226.30 17872 FRANK AND GROSSMAN LANDSCAPE CONTRACTORS, INC JUL '25 JANITORIAL SERVICES PW 8,796.05 17873 GRAY'S PAINT & WALLPAPER OF THE PENINSULA, INC SUPPLIES - PAINT PW 185.43 17874 HILLSBOROUGH RECREATION 2025-26 RECREATION CONTRIBUTION CM 182,000.00 17875 HOME DEPOT CREDIT SERVICES MAY '25 VARIOUS PARTS & SUPPLIES PW 4,236.36 17876 INFOSEND, INC. MAY '25/JUN '25 UTILITY BILLING FN 2,560.78 17877 INTERSTATE BATTERY SYSTEM OF SAN FRANCISCO PARTS - BATTERY TRUCK #251 PW 512.98 17878 INTERSTATE TRAFFIC CONTROL PRODUCTS, INC. PARTS - CUSTOM SIGNS PW 2,253.13 17879 INTERWEST CONSULTING GROUP JUL '25 BUILDING INSPECTOR SERVICES BP 1,875.00 17880 JUDY ANN PARDINI FEE - LIVE SCAN FINGERPRINT PW STAFF PD 245.00 17881 JV LUCAS PAVING, INC 2025 STREET RESURFACING PRJ PW 986,039.02 17882 MARK D HUDAK LEGAL SERVICES - JUL 2025 CM 10,170.00 17883 MUNICIPAL RESOURCE GROUP LLC JUN '25 HR SERVICES CM 1,560.00 17884 L SHOWMEE HOME SOLUTIONS LLC INSPECT/CLEAN PIPES GERI LN/MANOR PRJ PW 4,445.00 17885 MURRAYS TRUCK & AUTO REPAIR INC MAINT - FREIGHTLINER TRUCK #538 PW 2,754.59 17886 NOEL L. MILLER, INC. MAINT - MULTIPLE VEHICLES PW 2,085.03 17887 NORCAL RENTAL GROUP LLC EQUIP - TRASH PUMP PW 4,596.10 17888 NORGO ENGINEERING REFUND - HYDRANT METER DEPOSIT PW 2,000.00 17889 ODYSSEY POWER CORPORATION MAINT - GENERATOR MULTIPLE SITES PW 7,245.00 17890 AGUILAR & SONS, INC REFUND - PERMIT FEE VOID BP 1,397.98 17891 GARY & BREE COHN REFUND - GRADE DEPOSIT BP 15,000.00 17892 MATTHEW ALIOTO REFUND - GRADE DEPOSIT BP 5,000.00 17893 NEJASMICH DEVELOPMENTS LLC REFUND - BUILD DEPOSIT BP 23,697.50 17894 NELSON WONG REFUND - BUILD DEPOSIT BP 3,350.00
17895 RONALD BACHLI REFUND - BUILD DEPOSIT BP 3,000.00
17896 STANLEY KONG REFUND - BUILD DEPOSIT BP 28,592.50
17897 CHRIS SMITH REIMB - TRAVEL EXP LL INSTRUCTOR CLASS 7/30/25 PD 215.00 17898 LUCILLE DURAN REIMB - FINGERPRINT SERVICE FEE HR 71.08 17899 MATTHEW DOMANIC AXON BWC DATA RECOVERY SERVICE PD 3,000.00 17900 REDWOOD CITY FIRE DEPARTMENT MEMORIAL SERVICE CONTRIBUTION 9/7/25 PD 400.00 Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 -19-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING AUGUST 2025
17901 ALBERT GOMEZ REFUND - WATER ACCOUNT BALANCE FN 111.99 17902 ARIEL SHANHOLT REFUND - WATER ACCOUNT BALANCE FN 292.15 17903 COLLEEN HELM REFUND - WATER ACCOUNT BALANCE FN 144.30 17904 EHSAN REZVAN REFUND - WATER ACCOUNT BALANCE FN 151.27 17905 SOUTHWEST INVESTMENT FUNDS LLC REFUND - WATER ACCOUNT BALANCE FN 404.65 17906 OWEN EQUIPMENT COMPANY PARTS - SWIVEL JOINTS PW 1,854.54 17907 PAKPOUR CONSULTING GROUP,INC DESIGN SUPPORT 24/25 WATER MAIN REPLACE PRJ PW 6,133.75 17908 PG & E 6/9/25-7/9/25 145,910.45
17909 PLAN JPA JUL '25 DEDUCTIBLE CLAIMS VARIOUS ITEMS 3,471.70 17910 PRIORITY 1 JUL'25 MULTIPLE VEHICLES PD 3,200.00
17911 RED WING SHOE STORE WORK BOOTS - STAFF PW 864.20
17912 ROSANA LOMELI TRAIN - DISTRIBUTION/COLLECTION EXAM PREP STAFF 8,250.00 17913 SAN MATEO COUNTY DEPARTMENT OF PUBLIC WORKS MAINT-24/25 WEED MANAGEMENT/MOW VARIOUS SITES PW 26,911.78 17914 SAN MATEO COUNTY ENVIRONMENTAL SERVICES AGENCY SERVICE - WATER SERVICE CONNECTIONS PW 45,989.00 17915 SFPUC RENT - 25/26 CHERRY CREEK PUMP STATION PW 3,108.19 17916 SFPUC FINANCIAL SERVICES MAY '25/JUN '25 - WATER QUALITY ANALYSIS PW 3,294.00 17917 SHARP ELECTRONICS CORPORATION APR '25 - JUN '25 COPIER CHARGES 3,083.46 17918 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 2,491.54 17919 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR CERT D4 STAFF PW 105.00 17920 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR CERT D2 STAFF PW 65.00 17921 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR CERT D1 STAFF PW 50.00 17922 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR CERT D2 STAFF PW 45.00 17923 STEPHEN CIARI PLUMBING AND HEATING, INC REPAIR - TOILET STATION #33 PW 2,252.94 17924 T-MOBILE USA INC. 6/21/25-7/20/25 PD 163.60
17925 TEAGLACH LLC UNIFORM - VEST STAFF PD 315.80
17926 SAMUAL OAKLEY CONSULT - JUL '25 ARBORIST SERVICES BP 3,162.50 17927 THE PAPE GROUP, INC MAINT - FORKLIFT PW 402.73
17928 THE SOURCING GROUP, LLC PRINT - BUSINESS LICENSE STICKERS FN 823.76 17929 THIRKETTLE CORPORATION PARTS - WATER METER DIALS PW 8,849.87 17930 THOMSON WEST JUN'25/JUL'25 INVESTIGATIVE WEBSITE PD 2,341.80 17931 TOOLAND TOOLS - VARIOUS ITEMS PW 1,675.26
17932 TURBO DATA SYSTEMS, INC. EQUIP - ID/SCAN PRINTER MODULE PD 5,720.31 17933 UNDERGROUND REPUBLIC WATER WORKS, INC PARTS - VARIOUS ITEMS PW 16,396.94 17934 UNITED LABORATORIES SUPPLIES - SEWER LIFT-ZYME PW 3,835.71 17935 VERIZON CONNECT NWF INC JUN '25/JUL '25 - GPS MONTHLY SERVICES PW 3,091.48 17936 VERIZON WIRELESS 6/11/25-7/10/25 PD/PW 3,181.55
17937 VIKING SHRED LLC AUG'25 DESTRUCTION SERVICES PD 92.99 17938 WECO INDUSTRIES, LLC EQUIP - WARTHOG NOZZLES/FLOW DIVERTERS PW 14,559.43 17939 WILSEY HAM SEWER CIP 1D DESIGN PRJ PARROTT PW 25,601.17 17940 WRA, INC MACADAMIA ACCESS ROAD REPAIRS P2 PERMIT PW 12,099.50 17971 ACCESS UNIFORMS, INC. UNIFORMS - T-SHIRTS/SWEATERS PW 1,539.48 17972 ACCO ENGINEERED SYSTEMS, INC. MAINT - A/C UNIT TOWN HALL/CORP YARD PW 4,937.00 17973 AGUILAR & SONS REPAIR - ASPHALT VARIOUS SITES PW 10,475.00 17974 AIRGAS INC SUPPLIES - CLEANER/GRINDER PW 91.02
17975 AIXTEK JUL '25 MANAGEMENT SERVICE/VM SOFTWARE LIC IT 68,084.00 17976 ALERT DOOR SERVICE, INC. MAINT - GATE CORP YARD/DARRELL PW 700.00 17977 ALL GUARD ALARM SYSTEMS, INC INSTALL - ALARM TOWN HALL 50 % FINAL PW 2,568.00 17978 ALTA PLANNING DESIGN, INC BICYCLE/PEDESTRIAN MASTER PLAN - PHASE 2 PW 1,277.60 17979 AMAZON WEB SERVICES, INC JUL '25 - BACKUP STORAGE IT 17,636.69 17980 APB GENERAL ENGINEER 2024 SANITARY SEWER REHAB PRJ KENILWORTH PW 404,708.55 17981 AT&T 6/24/25-7/23/25 PD 545.97
17982 AT&T 5/24/25-6/23/25 PD 546.54
17983 AT&T 8/7/25 PD 541.03
17984 BAY AREA WATER SUPPLY & CONSERVATION AGENCY SOFTWARE - WATERSMART REPORTS PW $22,473.00 17985 BEST BEST & KRIEGER LLP FEE - JUL '25 LEGAL SERVICE 28,729.94 17986 BETTER SOURCE LIQUIDATORS FURNITURE - WORK STATIONS PW 2,630.92 17987 BKF ENGINEERS DESIGN FINAL - SHADY LANE PRJ PW 5,592.00 17988 BOSCO OIL COMPANY GAS/DIESEL PW/PD 11,128.31
17989 BURNETT LANDSCAPE DEVELOPMENT INC INSTALL - PLANTS/BARK GATE HOUSE HBF 2,372.80 17990 CINTAS CORPORATION NO 3 UNIFORM CLEANING SERVICE PW 663.71 17991 CINTAS CORPORATION NO 3 SUPPLIES - FIRST AID KIT ALL DEPARTMENTS PW 694.62 17992 CITY OF BELMONT COUNCIL OF CITIES MEETING 8/22/25 CO 195.00 17993 CITY OF BURLINGAME MAY '25 SEWER BILLING PW/JUL '25 LIBRARY SERVICES CM 195,567.58 17994 CITY OF SOUTH SAN FRANCISCO TRAIN - RANGE USE JAN 2024-JUN 2025 PD 16,400.00 17995 CLARK PEST CONTROL PEST CONTROL - PW 539.00
17996 COMCAST AUG '25 PW 470.83
17997 COMCAST JUL '25 CALNET NONCGEN LINE IT 4,874.30
17998 CORE & MAIN LP PARTS - VARIOUS ITEMS PW 2,630.19
17999 COUNTY OF SAN MATEO SAN MATEO CO TRAINING CONSORTIUM MEMBER 25/26 890.00 18000 CSG CONSULTANTS, INC. CIP ADM SEWER 5/31/25-6/30/25 & VARIOUS PRJ PW 164,887.50 18001 CUSTOM TOPS INC INSTALL - LIGHTS #580 PW 4,237.89 18002 DAILY JOURNAL CORPORATION LEGAL NOTICE 4/26/25-7/28/25 VARIOUS ITEMS CL 4,065.90 Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 -20-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING AUGUST 2025
18003 DAN OKANO EQUIP - AUGER/BITS PW 3,596.80
18004 DEPARTMENT OF JUSTICE JUL'25 FINGERPRINT SERVICE PD 66.00 18005 ESHERICK HOMSEY DODGE AND DAVIS, ARCHITECS, PC CONSULT - JUL '25 TOWN VISION/HOUSING ELEMENT BP 12,121.25 18006 EMPLOYMENT DEVELOPMENT DEPT. APR-JUN'25 UNEMPLOYMENT INS FEE 5,670.00 18007 ENGINEERING DATA SOFTWARE, INC SOFTWARE - PARCEL MANAGEMENT SYSTEM 25/26 12,921.91 18008 ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. SOFTWARE - ARC GIS DESKTOP LIC 7/22/25-7/21/26 PW 30,200.00 18009 EPS, INC. REPAIR - CLEANOUT OVERFLOW PD PW 1,450.00 18010 FASTENAL COMPANY SUPPLIES - PERSONNEL PROTECTIVE 1,072.57 18011 FEHR & PEERS CONSULT - EIR ASSESSMENT BP 2,174.81 18012 FLOWATER EQUIP - JUL '25/AUG '25 WATER STATION PW/CM/FN 420.00 18013 FRANK AND GROSSMAN LANDSCAPE CONTRACTORS, INC AUG '25 JANITORIAL SERVICES PW 9,146.00 18014 FREYER & LAURETA, INC HIGH LINE WATER PRJ DESIGN PW 76,434.70 18015 GATEWAY PACIFIC CONTRACTORS, INC DARRELL WATER TANK PRJ RETENTION ESCROW PW 11,849.74 18016 GLENN BERKHEIMER AUG '25 LABOR RELATIONS HR 1,700.00 18017 GOOD CITY COMPANY CONSULT - JUL '25 PLANNER SERVICES/GEN PLAN BP 8,100.00 18018 GRAINGER SUPPLIES - HYDRANT PAINT PW 846.85
18019 GRAY'S PAINT & WALLPAPER OF THE PENINSULA, INC SUPPLIES - PAINT/VARIOUS ITEMS PW 105.89 18020 HF&H CONSULTANTS, LLC JUL'25 SOLID WASTE RATE STUDY FN 21,428.75 18021 HOME DEPOT CREDIT SERVICES JUN '25 VARIOUS PARTS & SUPPLIES PW 4,638.02 18022 INTERSTATE BATTERY SYSTEM OF SAN FRANCISCO PARTS - BATTERY SKIPLOADER PW 176.55 18023 JV LUCAS PAVING, INC 2025 STREET RESURFACING PRJ PW 538,532.54 18024 KARIN SIDWELL HISTORICAL DESIGN REVIEW BP 3,000.00 18025 KRONOS SAASHR, INC. JUL'25 PAYROLL PROCESSING FN 2,215.81 18026 LITTLER, MENDELSON, P.C. LEGAL SERVICES MAY '25/JUN '25 CM 9,497.50 18027 MUNICIPAL MAINTENANCE EQUIP PURCHASE - SCHWARZE A4 STORM SWEEPER PW 283,750.03 18028 MUNICIPAL RESOURCE GROUP LLC JUL '25 HR SERVICES CM 2,275.00 18029 NAPA AUTO PARTS - BURLINGAME SUPPLIES - BLUE DEF/VARIOUS ITEMS PW 209.11 18030 NORCAL RENTAL GROUP LLC SUPPLIES - PROPANE PW 69.89 18031 OCCUPATIONAL HEALTH CENTERS OF CALIFORNIA, A EMPLOYEE PHYSICAL HR 141.00 18032 CRAIG A HORTON & LAUREN MARIE WILLIAMS REFUND - BUILD DEPOSIT BP 10,937.50 18033 BENNY HUANG REIMB - FINGERPRINT SERVICE FEE HR 74.63 18034 BRANDON GUYTON REIMB - TRAVEL EXP ESRI CONFERENCE 7/14/25-7/18/25 473.20 18035 CHRIS SMITH REIMB - TRAVEL EXP FTO CLASS 11/18-20/24 PD 54.00 18036 CHRIS SMITH REIMB - TRAVEL EXP GST CLASS 7/14-18/25 PD 115.00 18037 CHRIS SMITH REIMB -TRAVEL EXP MMBTH CLASS 10/21/25-10/25/25 PD 425.50 18038 CHRIS SMITH REIMB - TRAVEL EXP TEBC CLASS 10/28/25-11/2/25 PD 499.50 18039 CHRIS SMITH REIMB-TRAVEL EXP CRITICAL INCIDENT CLASS2/11-12/25 852.22 18040 JOSH WANG REIMB- TRAVEL EXP INVESTIGATION 7/17/25 PD 1,182.54 18041 CYTRACOM INTERNATIONAL INC OPI INTERPRETATION SERVICES (SPANISH) PD 20.01 18042 PAKPOUR CONSULTING GROUP,INC DESIGN SUPPORT 23 24 WATER MAIN REPLACE PRJ PW 2,408.50 18043 PETERSON POWER SYSTEMS, INC. REPAIR - HYDRAULIC HOSE BACKHOE #2 PW 2,423.79 18044 PG & E 6/13/25-7/15/25 1,541.65
18045 PRIORITY 1 REPAIR - MULTIPLE VEHICLES PD 5,494.97 18046 RED WING SHOE STORE WORK BOOTS - PW 298.26
18047 REDWOOD VETERINARY CLINIC K-9 VET SERVICES - PD 326.42 18048 RICE TRUCKING-SOIL FARM SUPPLIES - BASE/CRUSHED ROCK PW 4,385.66 18049 ROMEL 400 LLC RENT - SEP'25 RADIO BASE STATION RECEIVER PD 343.20 18050 SAN FRANCISCO BAY WATER BOARD FEE - EXCAVATE/FILL CREEK REPAIR MACADAMIA RD 4,212.00 18051 SAN MATEO COUNTY FORENSIC LAB JUL'25 CRIME LAB SERVICES PD 1,119.00 18052 SAN MATEO COUNTY ENVIRONMENTAL SERVICES AGENCY FEE - GENERATOR FUEL STORAGE PD 525.00 18053 SAN MATEO LOCK WORKS, INC. INSTALL - LATCH/DOOR KNOB/BOLT PD 2,167.96 18054 SAN MATEO LUMBER CO., INC SUPPLIES - VARIOUS ITEMS PW 924.14 18055 SCOTT BUSCHMAN PHOTOGRAPHY - DEPARTMENT PHOTOS PD 1,060.94 18056 SHAWN KIRBY JUN '25 POOL SVC PW 1640 RENTAL 200.00 18057 STANDARD INSURANCE COMPANY JUN '25/JUL '25 GROUP LIFE/ADD/LTD ASSESSMENT 6,199.69 18058 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 2,611.02 18059 STATE WATER RESOURCES CONTROL BOARD SRF LOAN PAYMENT CONTRACT PW 431,801.46 18060 STEELE INDUSTRIES EQUIP - AIMING LASER FOR NIGHT VISION DEVICES PD 7,999.96 18061 TELECOMMUNICATIONS ENGINEERING ASSOCIATES AUG'25 COMM CENTER/BASE PD 3,334.00 18062 TELSTAR INSTRUMENTS MAINT - SMARTCOVER SERVICE CHATEAU PW 1,836.00 18063 TERRY EQUIPMENT INC PARTS - GUTTER BROOM STREET SWEEPER PW 747.17 18064 TETRA TECH INC MAINT - SCADA SUPPORT SERVICES PW 54,257.12 18065 THE ADAM-HILL COMPANY PARTS - HOSE REPLACEMENT #580 PW 670.76 18066 THE PERMANENTE MEDICAL GROUP, INC EMPLOYEE PHYSICAL STAFF PD 119.00 18067 THIRKETTLE CORPORATION PARTS - WATER METER DIALS PW 1,175.81 18068 TIMBERLINE TREE SERVICE, INC. MAINT - REMOVE VINES PD/TREE EL CERRITO PW 3,250.00 18069 TURBO DATA SYSTEMS, INC. AUG'25 CITATION PROCESSING & SCANNER PD 1,605.33 18070 ULINE, INC. SUPPLIES - STORAGE CABINET/K RAILS BARRIER PW 6,673.74 18071 UNDERGROUND REPUBLIC WATER WORKS, INC PARTS - SWIVEL JOINTS/BRASS FITTINGS PW 11,389.39 18072 UNITED LABORATORIES SUPPLIES - SEWER LIFT-ZYME PW 3,838.00 18073 VERIZON WIRELESS 7/11/25-8/10/25 MULTIPLE ACCOUNTS PD/PW 1,757.18 18074 WECO INDUSTRIES, LLC EQUIP - SEWER HOSE/SPOOL PW 10,225.26 Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 -21-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING AUGUST 2025
18075 WRA, INC SANDRA/HAYNE DRAIN REPLACE PRJ PW 286.25 TOTAL GOODS & SERVICES FOR THE MONTH PAID BY CHECK $5,373,144.48 CALPERS RETIREMENT CONTRIBUTIONS 246,338.52
VISA PAYMENTS 46,376.96
RETIREE HEALTH REIMBURSEMENTS 93,978.98
TOTAL GOODS & SERVICES FOR THE MONTH $ 5,759,838.94
Docusign Envelope ID: 1586B54E-B390-4C30-8A71-3E991D3B52C7 -22-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RECEIVE LEGISLATIVE UPDATE
SUMMARY: The Town’s legislative consultant, California Public Policy Group (CPPG), has provided a Legislative Summary for August 2025 (Attachment 1).

Attachment 2 includes letters submitted by the Town since the August 8, 2025 City Council meeting.

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

ENVIRONMENTAL ISSUES: This item is exempt from environmental review under 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:

1. August 2025 CPPG Legislative Summary

2. Letters Submitted since August 11, 2025 City Council Meeting PREPARED BY: Lisa Natusch, City Clerk
RECOMMENDATION: Receive the August 2025 Legislative Update. -23-
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 1 Date: September 3, 2025
To: Doug Davis, Town Manager
Town of Hillsborough
From: Dane Hutchings
Founder + CEO
California Public Policy Group
Re: CPPG Legislative Summary — August 2025

LEGISLATIVE UPDATE
Legislature Returns From Summer Recess For Final Stretch The Legislature returned from its Summer Recess on August 18 after having spent the previous four weeks on break. Since reconvening, the Legislature has moved quickly to advance remaining measures. On August 29, the Assembly and Senate Appropriations Committees held their final Suspense File hearings of the year to send fiscal bills to the Floor. Of the 686 bills on the Suspense File, 498 made it out of Appropriations and onto the Floor.

September 2 to September 12 is reserved for Floor session and only unscheduled, “off the floor” hearings will occur. This is when a committee chair calls an impromptu hearing of their committee during Floor session. Hearings of this type are typically announced with little warning and are held in a nearby committee room, potentially delaying Floor session business. There’s also the 72-hour rule to be aware of, which requires that a bill’s final language be publicly available for at least 72 hours before it can be taken up for a final vote on the Floor. Given that the Legislature will adjourn for the year on September 12, the last day that a bill could be amended is September 9.

During most of the legislative session, the Governor has 12 days to either sign or veto a bill received from the Legislature, otherwise the bill automatically becomes law. Starting September 1, this period increases to 30 days. The final date for the Governor to take action on a bill is October 12.

As of September 3, about 800 bills are still actively making their march through the legislative process, while 270 have been chaptered, one has been vetoed, and approximately 1,700 are no longer moving.

Low Carbon Fuel Standard Informational Hearing
On August 27, the Assembly Select Committee on the Transportation Costs and Impact of the Low Carbon Fuel Standard held an informational hearing on the costs and the impact of the Low Carbon Fuel Standard (LCFS). The Committee examined whether California’s LCFS raises gasoline prices and whether any added costs deliver value. California Air Resources Board chair Liane Randolph stated that the program has had a role in improving air quality and spurring innovation amid federal efforts to undermine LCFS. CARB’s Matt Botill outlined the declining carbon-intensity targets and the credit/deficit system, noting alternative fuels grew from ~5% of volumes in 2006 to ~27% in 2024.

CEC Vice Chair Siva Gunda referenced SB 1322 and Oil Price Information Service data, and discussion clarified that LCFS cannot easily be folded into Cap and Trade, and that fuels like -24-
ATTACHMENT 1 [i{CPPG

CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 2 renewable diesel, electricity, hydrogen, and renewable nature gas can achieve negative carbon intensity. UC Berkeley’s Aaron Smith stated that LCFS increases gas prices and overlaps with other policies, while Andy Navarette, representing the International Council on Clean Transportation, emphasized LCFS as a key zero emission vehicle enabler, citing $6k–$11k six-year electric vehicle savings and the program’s crucial role in charging infrastructure, especially for trucking. UC Davis’s Collin Murphy flagged design issues to watch (energy-economy ratios, additionality, Indirect Land Use Change risk, rebound effects) and legal constraints on in-state-only crediting, while stakeholders broadly agreed LCFS has been instrumental in cutting emissions and building infrastructure.

Housing Affordability Informational Hearing
On August 27, the Assembly Select Committee on Housing Finance and Affordability held an informational hearing to discuss housing affordability. Assemblymember Anamarie Avila Farias (DMartinez), who previously worked in affordable housing, opened the session by stressing the need to simplify the financing landscape and deliver concrete recommendations to both the legislature and the Governor, citing the current median Californian home price of $884,000. Assemblymember John Harabedian (D-Sierra Madre) stated that, unless affordable housing is delivered quickly, California will continue to fail its constituents. Christina Mun, representing the California Housing Partnership, stated that affordable housing developments rely on a “stack” of multiple funding sources, typically at least five, with the Low-Income Housing Tax Credit serving as the foundation. She claims that subsidies are essential for low-income housing because affordable housing rents cannot alone support mortgages or attract private capital.

The most significant development centered around Federal policy changes, which have reshaped how tax credits are paired with bond financing. Previously, projects needed 50 percent of their funding backed by tax-exempt bonds to qualify for four percent federal tax credits for low-income housing. Federal policy changes have reduced this requirement to 25 percent, effectively doubling capacity. Marina Wiant, executive director of the California Tax Credit Allocation committee, stated that under the old rules, the four percent program produced about 15,000 units annually, while the 9 percent program created around 3,000. With the new structure, the state could see as many as 30,000 units a year built under the four percent program alone. Rebecca Franklin, Deputy Director of the California Housing Finance Agency, stated the need for a coordinated homelessness plan and suggested reviving local financing tools. Assemblymember Quirk-Silva (D-Fullerton) stressed the need for legislation targeting the finance landscape in California, specifically as related to Accessory Dwelling Unit financing, while criticizing the lack of serious progress in the housing finance landscape.

ADMINISTRATION UPDATE
On August 14, Governor Gavin Newsom and legislative leadership announced “the launch of a statewide effort that will enable Californians to fight back against President Trump’s attempts to rig” congressional elections in Texas. On August 18, Governor Newsom announced the introduction of three pieces of legislation to implement this effort: AB 604 (Aguiar-Curry), ACA 8 (Rivas), and SB 280 (Cervantes). The legislative package calls a special election for November 4, 2025 asking voters to approve a constitutional amendment that would temporarily supersede the congressional redistricting process in the state constitution. Known as Proposition 50 on the ballot, the amendment proposes to put newly drawn congressional districts into effect until the next certification of those districts in 2031. The legislative package authorizes the Department of Finance -25-
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CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 3 to determine the amount of funds, and to appropriate those funds, from the General Fund for implementation. AB 604 and SB 280 were passed by the Legislature on August 21. That same day, the Governor announced that he had signed the legislation into law. Both measures went into effect immediately. ACA 8 was also passed by the Legislature on August 21. Since ACA 8 is a proposed amendment to the constitution, it is not sent to the Governor to be acted upon. The proposed temporary congressional districts can be viewed here.

ACTIVE POSITIONED LEGISLATION
• AB 1 (Connolly) Residential property insurance: wildfire risk. o Location: Senate Consent Calendar
o Position: Support
• AB 339 (Ortega) Local public employee organizations: notice requirements. o Location: Senate Floor
o Position: Oppose
• AB 370 (Carrillo) California Public Records Act: cyberattacks. o Location: Assembly Chaptered
o Position: Support
• AB 468 (Gabriel) Crimes: looting.
o Location: Senate Rules
o Position: Support
• AB 544 (Davies) Electric bicycles: required equipment. o Location: Assembly Chaptered
o Position: Support
• AB 620 (Jackson) Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles.
o Location: Senate Consent Calendar
o Position: Support
• AB 650 (Papan) Planning and zoning: housing element: regional housing needs allocation. o Location: Senate Floor
o Position: Support
• AB 888 (Calderon) California Safe Homes grant program. o Location: Senate Consent Calendar
o Position: Support
• SB 63 (Wiener) San Francisco Bay area: local revenue measure: transportation funding. o Location: Assembly Floor
o Position: Watch
• SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator. o Location: Senate Enrollment
o Position: Support
• SB 454 (McNerney) State Water Resources Control Board: PFAS Mitigation Program. o Location: Assembly Floor
o Position: Support
• SB 682 (Allen) Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances.
o Location: Assembly Floor
o Position: Support
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CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 4 • SB 684 (Menjivar) Polluters Pay Climate Superfund Act of 2025. o Location: Senate Judiciary
o Position: Support
• SB 707 (Durazo) Open meetings: meeting and teleconference requirements. o Location: Assembly Floor
o Position: Oppose

LOOKING FORWARD
• September 12: Last day for the Legislature to pass bills; end of the 2025 legislative session • October 12: Last day for the Governor to sign or veto bills • January 1: All legislation signed into law in 2025, unless otherwise excepted, goes into effect • January 5: The Legislature reconvenes for the second year of the 2025-26 legislative session -27-
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CALIFORNIA PUBLIC POLICY GROUP
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ATTACHMENT 2
August 14, 2025
The Honorable Damon Connolly
California State Assembly
1021 0 Street, Room 5240
Sacramento, CA 95814
~

TOWN OF
~ HILLSBOROUGH
California
RE: Assembly Bill 1- Residential property insurance: wildfire risk - SUPPORT (As Introduced December 2, 2024)
Dear Assemblymember Connolly,
On behalf of the Town of Hillsborough, we write to express our support for Assembly Bill (AB) 1, which would require the California Department of Insurance (CDI) to consider whether to update the Safer from Wildfire regulations to include home hardening in their "Safer from Wildfires" regulations on or before January 1, 2030.

The Town of Hills borough is located in the hills of the Bay Area, which is prone to wildfires. The Town, surrounded by a ring of natural open space, is designated as a "moderate and high fire hazard severity zone" by the California Department of Forestry and Fire Protection (CAL FIRE) and the Office of the State Fire Marshal ( OSHvf).

To safeguard their properties from wildfire threats, Hillsborough residents have actively sought ways to harden their homes and establish defensible spaces. Homeowners in Hillsborough have recently faced increasing insurance premiums, and several residents have been dropped by their insurance providers and are struggling to secure new coverage. Assembly Bill 1 proposes that insurance companies must consider homeowners' efforts to harden their homes against wildfires when setting rates. This could result in lower insurance premiums for those who proactively take steps to minimize wildfire risks.

For these reasons, we are pleased to support AB 1 and thank you for your leadership on this most important issue. Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

Sincerely,
So hie
~~~ Cole
CC: Members and Staff of the Senate Appropriations Committee The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Grant Mack, Deputy Legislative Secretary, Office of Governor Gavin Newsom ------------------ Town Hall------------------
Phone: 650-375-7400 I Fax: 650-375-7475 I 1600 Floribunda Avenue, Hillsborough, CA 94010 I www.hillsborough.net -29-
August 14, 2025
The Honorable Kelly Seyarto
California State Senate
1021 0 Street, Room 7120
Sacramento, CA 95814
•
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.._
.... .

TOWN OF HILLSBOROUGH
California
Re: Senate Bill 74- Office of Land Use and Climate Innovation: Infrastructure Gap-Fund Program - SUPPORT (As Amended April 7, 2025)
Dear Senator Seyarto:

On behalf of the Town of I-Iillsborough, we write to express our support for Senate Bill (SB) 74, which seeks to establish an infrastructure gap-fund program to provide much-needed grants to local agencies for the development and construction of critical infrastructure projects.

As California's local governments continue to grow, so does the need for reliable and sustainable infrastructure.

However, many local governments struggle to fund essential projects due to financial constraints, making it difficult to meet the demands of our residents and businesses. Senate Bill 7 4 will help bridge this funding gap by offering grants that support roads, bridges, water systems, and other vital infrastructure, ensuring safer and more efficient communities.

The devasting fires across the state and most recently in Southern California have shown vulnerabilities in local infrastructures. Investing in public infrastructure is crucial to preventing fires and protecting lives. Adequate funding for fire-resistant building materials, modernized electrical grids, and well-maintained roadways ensures that both public and private spaces are safeguarded against potential fire threats. Furthermore, upgrading water supply systems, such as expanding hydrant networks and improving water pressure, is essential for effective firefighting efforts.

Beyond fire prevention, improved infrastructure enhances emergency response times and community resilience. Well-maintained roads and bridges allow first responders to reach emergency sites more quickly, while investments in communication systems ensure timely coordination between emergency services.

Additionally, incorporating firesafe designs in public buildings, schools, and transportation systems not only reduces the likelihood of fires but also protects vulnerable populations.

The Town of I-Iillsborough believes that investing in local infrastructure is crucial for economic development, job creation, and public safety. By supporting SB 7 4, the State of California is making a commitment to strengthening our communities and ensuring that local agencies have the necessary resources to complete much-needed projects.

For these reasons, we are pleased to support SB 7 4 and thank you for your leadership on this most important issue. Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

Town l-Iall -------------------
Phone: 650-375-7400 I Fax: 650-375-7475 I 1600 Floribunda Avenue, Hillsborough, CA 94010 I www.hillsborough.net -30-
Town of Hillsborough
August 13, 2025

Sincerely,
:J)k~
CC: Members and Staff of the Assembly Appropriations Committee The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom -31-
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TOWN OF HILLSBOROUGH
August 14, 2025
The Honorable Lisa Ca.lderon
California State Assembly
1021 0 Street, Room 4650
Sacramento, CA 95814
California
Re: Assembly Bill 75- Residential property insurance images - SUPPORT (As Amended July 1, 2025)
Dear Assemblymember Calderon:

On behalf of the Town of Hillsborough, we write to express our support for Assembly Bill (AB) 75, which will establish critical consumer protections and transparency standards in the use of aerial imagery for residential property insurance decisions.

California's homeowners' insurance market is under extraordinary strain due to escalating wildfire risks and other natural hazards. In recent years, many homeowners have been shocked to receive non-renewal notices based on aerial images- taken by drones, aircraft, or satellites- without any prior notice that these images were collected orthe opportunity to review them. Too often, these images have been outdated, inaccurate, or misleading, leading to wrongful loss of coverage.

AB 75 addresses this problem head-on by:
• Requiring insurers to notify policyholders before capturing aerial images of their property. • Ensuring that policyholders can obtain copies of those images upon request. • Prohibiting insurers from relying on aerial images more than 180 days old to make termination decisions unless verified through recent physical inspections.
• Guaranteeing that if aerial imagery is used to justify non-renewal, the image is provided with the notice, and policyholders have the opportunity to dispute its accuracy and remedy the issue before coverage is lost.

These provisions strike a fair balance- allowing insurers to continue managing risk efficiently while ensuring that policyholders are treated justly. By giving homeowners access to the evidence used against them and the chance to correct legitimate issues, AB 75 can reduce disputes, prevent unnecessary loss of coverage, and help keep more Californians insured in a tightening market.

As wildfires, climate-driven disasters, and market withdrawals by major insurers threaten coverage availability, homeowners need stronger procedural protection. AB 75 promotes accountability, transparency, and fairness- principles that are urgently needed to preserve trust in the insurance market.

For these reasons, we are pleased to support AB 75 and thank you for your leadership on this most important issue. Should you have any questions, please contact our legislative advocate Dane Hutchings with Ca.lifornia ------------------- TownH-tll -------------------
Phone: 650-375-7400 I Fax: 650-375-7475 I 1600 Floribunda Avenue, Hillsborough, CA 94010 I _www.hillsborough.net -32-
Town of Hillsborough
August 13, 2025

Public Policy Group at 916-974-9270.

Sin rely,
0 ru:t?.
r
~ ~
CC: Members and Staff of the Senate Appropriations Committee The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom -33-
August 14, 2025
The Honorable Jerry McNemey
California State Senate
1021 0 Street, Room 6640
Sacramento, CA 95814
e
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.
- TOWN OF HILLSBOROUGH
California
Re: Senate Bill 454 - State Water Resources Control Board: PFAS Mitigation Program - SUPPORT (As Amended May 23, 2025)
Dear Senator McNemey:

On behalf of the To.yn of Hillsborough, we write to express our support for Senate Bill (SB) 454, which would establish a much- needed funding framework to assist local agencies in addressing PF AS contamination in drinking water and wastewater systems throughout California.

Perfluoroalkyl and polyfluoroalkyl substances (PF AS) are persistent "forever chemicals" that have been linked to significant health risks including cancer, immune system disorders, and reproductive effects. These contaminants pose a growing threat to public health and the environment, yet local water suppliers and wastewater operators- who are not responsible for introducing PF AS into the environment- are burdened with the complex and costly task of mitigation SB 454 establishes the PFAS Mitigation Fund and authorizes the State Water Resources Control Board to provide grants, loans, contracts, and technical assistance to water suppliers and wastewater operators for a wide range of PF AS-related needs, including treatment, disposal, and mitigation. By allowing the state board to seek federal, private, and non-state funding, and by appropriating those resources directly to support mitigation efforts, the bill provides an urgently needed tool to protect communities across California.

The Town of Hills borough supports this legislation because it represents a fair, practical, and science-based approach to ensuring clean, safe, and affordable water for all Californians. As PF AS detection, monitoring, and compliance costs continue to rise, SB 454 will help ensure that local communities- particularly disadvantaged and overburdened onesare not left behind in the state's fight for environmental and public health equity. [Please insert any additional reasons that the Town supports the bill.] For these reasons, we are pleased to support SB 454 and thank you for your leadership on this most important issue.

Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

CC: Members and Staff of the Assembly Appropriations Committee The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom Town Hall -------------------
Phone: 650-375-7400 I Fa.'C: 650-375-7475 I 1600 Floribunda Avenue, Hillsborough, CA 94010 I www.hillsborough.net -34-
August 14, 2025
The Honorable G>rey Jackson
California State Assembly
1021 0 Street, Room 6120
Sacramento, CA 95814
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.
-- - .

TOWN OF HILLSBOROUGH
California
Re: Assembly Bill 620 - Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles - SUPPORT (As Introduced February 13, 2025) Dear Assemblymember Jackson:

On behalf of the Town of Hillsborough, we write to express our support for Assembly Bill (AB) 620, which directs the California Air Resources Board (CARB) to thoughtfully consider the unique role of rental companies and rental vehicles when adopting or amending regulations regarding the procurement or use of medium- and heavy-duty zero-emission vehicles (ZEVs).

California has adopted ambitious greenhouse gas (GHG) reduction targets through AB 32, SB 32, and AB 1279, and has committed to achieving net zero GHG emissions by 2045. Medium- and heavy-dutyZEVs are a critical part of meeting these targets, but their widespread deployment is challenged by high upfront costs and insufficient charging infrastructure. Rental companies can be a powerful partner in bridging this gap, helping expand ZEV access, accelerate adoption, and improve public health.

AB 620 will ensure that CARB regulations:
• Recognize that it is customers- not rental companies- who operate rental vehicles and are responsible for the associated miles driven and emissions.
• Acknowledge the potential for rental and shared mobility options to provide cost-effective compliance pathways for regulated fleets, especially local governments and small businesses. • Leverage rentals as an important educational tool, exposing more Californians to ZEV technology and charging infrastructure, while highlighting benefits like reduced maintenance and fuel costs. • Support environmental, supply chain, and air quality benefits by enabling more medium- and heavy-duty ZEV miles traveled, reducing reliance on fossil-fueled vehicles.

Past regulatory efforts, such as the Advanced Oean Fleet (ACF) rule, did not fully address the role of rental fleets, resulting in compliance challenges, "double-counting" concerns, and underutilization of ZEVs that could otherwise support the state's clean transportation goals. AB 620 provides CARB with the guidance and flexibility needed to avoid similar pitfalls in future rulemaking, without imposing prescriptive mandates.

By ensuring rental companies are integrated into California's ZEV strategy, AB 620 supports climate, equity, and public health objectives, while helping regulated fleets meet their obligations in a more practical and affordable way.

Town Hall ------------------
Phone: 650-375-7400 I Fax: 650-375-7475 I 1600 Floribunda Aven ue, Hillsborough, CA 94010 I www.hillsborough.net -35-
Town of Hillsborough
August 13, 2025

For these reasons, we are pleased to support AB 620 and thank you for your leadership on this most important issue. Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

CC: Members and Staff of the Senate Appropriations Committee The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Grant Mack, Deputy Legislative Secretary, Office of Governor Gavin Newsom -36-
August 14, 2025
The Honorable Benjamin Allen
California State Senate
1021 0 Street, Room 6610
Sacramento, CA 95814
•
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.
.

TOWN OF HILLSBOROUGH
California
Re: Senate Bill 682 - Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances - SUPPORT (As Amended July 17, 2025)
Dear Senator Allen:

On behalf of the Town of Hillsborough, we write to express our support for Senate Bill (SB) 682, which seeks to eradicate harmful forever chemicals from products unwittingly used by consumers in their daily lives.

In recent years, Per- and Polyfluoroalkyl substances (PF AS) have become a topic of public concern due to their high mobility and resistance to breaking down naturally as well as the persistent detection of PF AS compounds in people's bodies and in the environment. A statewide source control approach is necessary to systematically remove PF AS from the stream of commerce, including in products which have a direct pathway to our watersheds and waste management systems.

Often referred to as "forever chemicals," PFAS chemicals are both ubiquitous and indestructible. Removing PF AS at the end of their life cycle does not address the problem of ongoing exposure to the general public to PFAS from everyday products. In limited cases, PFAS can be removed from water and wastewater through advanced treatment technology. However, there is currently no technologically feasible method for the largescale destruction of PFAS compounds. Instead, once removed, PFAS residuals are merely displaced to another waste stream to cycle back through the waste management process or transferred to a different environmental media. This is why SB 682's focus on stopping PFAS at its source is vital.

While in some very limited cases, the source of PF AS contamination can be identified and addressed through industrial pre-treatment programs or other similar mechanisms, this is not generally the case. In 2020, the State Water Resources Control Board issued a statewide monitoring and reporting order that required wastewater agencies to monitor and report for PFAS in influent, effluent and biosolids. Monitoring data from this effort demonstrates that domestic discharges (residential and commercial influent) is the predominant pathway of PFAS entering wastewater systems, meaning that products people are using in their homes and businesses are contributing PF AS to wastewater systems through everyday uses that are not controllable through local enforcement or industrial pretreatment programs.

Moreover, regulatory efforts are underway that could have serious consequences for clean water agencies and their ratepayers. Last year, USEP A adopted Maximum Contaminant Levels (Mas) for 6 PF AS chemicals in drinking water, and the State Water Resources Control Board has stated its intent to begin a proceeding this year to adopt a statewide Ma for PF AS consistent with the adopted Federal Ma. Drinking water Mas are highly consequential for the regulated water community, including wastewater agencies, as they are often Town Hall
Phone: 650-375-7400 I Fax: 650-375-7475 I 1600 Floribunda Avenue, Hillsborough, CA 94010 I www.hillsborough.net -37-
Town of Hillsborough
August 13, 2025

incorporated "by reference" into existing Basin Plans, thus imposing de facto limits for discharges to certain bodies of water. Removing PF AS from the stream of commerce before it enters our waterways and waste treatment systems is the most cost-effective way to address this issue.

Finally, as local public agencies begin the process of preparing for implementation of new and proposed PF AS regulations, affordability of essential services is a critical consideration. USEPA estimates that for drinking water systems to comply with the newly imposed :Maximum Contaminant Level (MO.,) for a handful of PF.AS chemicals will result in annual cost impacts surpassing $1 billion. Water industry leaders contend these costs are likely much higher and could surpass $3 billion annually, and do not account for financial impacts beyond the drinking water system requirements. These are all costs that will be borne by California utility ratepayers.

For these reasons, we are pleased to support SB 682 and thank you for your leadership on this most important issue. Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

Sin erely,
e f lt,., {SLe_
CC: Members and Staff of the Assembly Appropriations Committee The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH CSG CONSULTANTS, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $200,000.00, FOR A TOTAL BUDGET OF $600,000.00, UNDER CEQA GUIDELINE 15378 SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with CSG Consultants, Inc. (“CSG”) for as-needed general engineering services on a project-by-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for general engineering services in the next year and estimates an additional not-to-exceed amount of $200,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional general engineering services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works on behalf of the Town to authorize funding for general engineering services to CSG through task orders.

Under this amended agreement, CSG will continue to provide as-needed general engineering services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with CSG Consultants, Inc. for as-needed -39-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

general engineering services in the amount of $200,000.00, for a total budget of $600,000.00, under CEQA Guideline 15378.
-40-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH CSG CONSLTANTS, INC.

FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $200,000.00, FOR A TOTAL BUDGET OF $600,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed general engineering services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed engineering and consulting services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with CSG Consultants, Inc. for as-needed general engineering services on a projectby-project basis; and WHEREAS, staff evaluated the anticipated needs for general engineering services of future CIP projects in the next year and estimates an additional not-toexceed amount of $200,000.00 is necessary; and WHEREAS, staff recommends amending the existing agreement with CSG Consultants, Inc. for general engineering services in the amount of $200,000.00, for a total project budget of $600,000.00; and WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for general engineering services to CSG Consultants, Inc. through task orders.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with CSG Consultants, Inc. for as-needed general engineering services to be extended one year and in the amount of $200,000.00, for a total budget of $600,000.00, under CEQA Guideline 15378.

Mayor of the Town of Hillsborough
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2 Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-42-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH CSG CONSULTANTS, INC. FOR AS-NEEDED PROJECT MANAGEMENT & MUNICIPAL SERVICES IN THE AMOUNT OF $800,000.00, FOR A TOTAL BUDGET OF $2,400,000.00, UNDER CEQA GUIDELINE 15378 SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with CSG Consultants, Inc. (“CSG”) for as-needed project management and municipal services on a project-by-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for project management and municipal services in the next year and estimates an additional not-toexceed amount of $800,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional project management and municipal services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works on behalf of the Town to authorize funding for project management and municipal services to CSG through task orders.

Under this amended agreement, CSG will continue to provide as-needed project management and municipal services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works -43-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with CSG Consultants, Inc. for as-needed project management and municipal services in the amount of $800,000.00, for a total budget of $2,400,000.00, under CEQA Guideline 15378.
-44-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH CSG CONSULTANTS, INC.

FOR AS-NEEDED PROJECT MANAGEMENT & MUNICIPAL SERVICES IN THE AMOUNT OF $800,000.00, FOR A TOTAL BUDGET OF $2,400,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed project management and municipal services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed project management and municipal services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with CSG Consultants, Inc. for as-needed project management and municipal services on a project-by-project basis; and
WHEREAS, staff evaluated the anticipated needs for project management and municipal services of future CIP projects in the next year and estimates an additional not-to-exceed amount of $800,000.00 is necessary; and WHEREAS, staff recommends amending the existing agreement with CSG Consultants, Inc. for project management and municipal services in the amount of $800,000.00, for a total project budget of $2,400,000.00; and WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for project management and municipal services to CSG Consultants, Inc. through task orders.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with CSG Consultants, Inc. for as-needed project management and municipal services to be extended one year and in the amount of $800,000.00, for a total budget of $2,400,000.00, under CEQA Guideline 15378.

Mayor of the Town of Hillsborough
-45-
2 Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-46-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH EKI ENVIRONMENT & WATER, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $250,000.00, FOR A TOTAL BUDGET OF $750,000.00, UNDER CEQA GUIDELINE 15378 SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with EKI Environment & Water, Inc. (“EKI”) for as-needed general engineering services on a project-by-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for general engineering services in the next year and estimates an additional not-to-exceed amount of $250,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional general engineering services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works on behalf of the Town to authorize funding for general engineering services to EKI through task orders.

Under this amended agreement, EKI will continue to provide as-needed general engineering services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with EKI Environment & Water, Inc. for as- -47-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

needed general engineering services in the amount of $250,000.00, for a total budget of $750,000.00, under CEQA Guideline 15378.
-48-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AMENDMENT TO THE EXISTING AGREEMENT WITH EKI ENVIRONMENT & WATER, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $250,000.00, FOR A TOTAL BUDGET OF $750,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed general engineering services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed engineering and consulting services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with EKI Environment & Water, Inc. for as-needed general engineering services on a project-by-project basis; and
WHEREAS, staff evaluated the anticipated needs for general engineering services of future CIP projects in the next year and estimates an additional not-toexceed amount of $250,000.00 is necessary; and WHEREAS, staff recommends amending the existing agreement with EKI Environment & Water, Inc. for general engineering services in the amount of $250,000.00, for a total project budget of $750,000.00; and WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for general engineering services to EKI Environment & Water, Inc. through task orders.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with EKI Environment & Water, Inc. for asneeded general engineering services to be extended one year and in the amount of $250,000.00, for a total budget of $750,000.00, under CEQA Guideline 15378.

Mayor of the Town of Hillsborough
-49-
2 Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-50-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH FREYER & LAURETA, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $90,000.00, FOR A TOTAL BUDGET OF $180,000.00, UNDER CEQA GUIDELINE 15378 SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with Freyer & Laureta, Inc. (“F&L”) for as-needed general engineering services on a project-by-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for general engineering services in the next year and estimates an additional not-to-exceed amount of $90,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional general engineering services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works on behalf of the Town to authorize funding for general engineering services to F&L through task orders.

Under this amended agreement, F&L will continue to provide as-needed general engineering services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with Freyer & Laureta, Inc. for as-needed -51-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

general engineering services in the amount of $90,000.00, for a total budget of $180,000.00, under CEQA Guideline 15378.
-52-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH FREYER & LAURETA, INC.

FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $90,000.00, FOR A TOTAL BUDGET OF $180,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed general engineering services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed engineering and consulting services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with Freyer & Laureta, Inc. for as-needed general engineering services on a projectby-project basis; and WHEREAS, staff evaluated the anticipated needs for general engineering services of future CIP projects in the next year and estimates an additional not-toexceed amount of $90,000.00 is necessary; and WHEREAS, staff recommends amending the existing agreement with Freyer & Laureta, Inc. for general engineering services in the amount of $90,000.00, for a total project budget of $180,000.00; and WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for general engineering services to Freyer & Laureta, Inc. through task orders.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with Freyer & Laureta, Inc. for as-needed general engineering services to be extended one year and in the amount of $90,000.00, for a total budget of $180,000.00, under CEQA Guideline 15378.

Mayor of the Town of Hillsborough
-53-
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-54-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH NINYO & MOORE

GEOTECHNICAL AND ENVIRONMENTAL SCIENCES CONSULTANTS FOR AS-NEEDED

GEOTECHNICAL ENGINEERING AND MATERIALS TESTING SERVICES IN THE AMOUNT OF $90,000.00, FOR A TOTAL BUDGET OF $270,000.00, UNDER CEQA GUIDELINE 15378 SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants (“Ninyo & Moore”) for as-needed geotechnical engineering and materials testing services on a project-by-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for geotechnical engineering and materials testing services in the next year and estimates an additional not-to-exceed amount of $90,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional geotechnical engineering and materials testing services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works on behalf of the Town to authorize funding for geotechnical engineering and materials testing services to Ninyo & Moore through task orders.

Under this amended agreement, Ninyo & Moore will continue to provide as-needed geotechnical engineering & material testing services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works -55-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants for as-needed geotechnical engineering & material testing services in the amount of $90,000.00, for a total budget of $270,000.00, under CEQA Guideline 15378.
-56-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AMENDMENT TO THE EXISTING AGREEMENT WITH NINYO & MOORE
GEOTECHNICAL AND ENVIRONMENTAL SCIENCES CONSULTANTS FOR ASNEEDED GEOTECHNICAL ENGINEERING AND MATERIALS TESTING SERVICES IN THE AMOUNT OF $90,000.00, FOR A TOTAL BUDGET OF $270,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed geotechnical engineering & material testing services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed geotechnical engineering & material testing services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants for asneeded geotechnical engineering & material testing services on a projectby-project basis; and WHEREAS, staff evaluated the anticipated needs for geotechnical engineering & material testing services of future CIP projects in the next year and estimates an additional not-to-exceed amount of $90,000.00 is necessary; and
WHEREAS, staff recommends amending the existing agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants for geotechnical engineering & material testing services in the amount of $90,000.00, for a total project budget of $270,000.00; and
WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for geotechnical engineering & material testing services to Ninyo & Moore Geotechnical and Environmental Sciences Consultants through task orders.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants for as-needed geotechnical engineering & material testing services to be extended one year and in the amount of $90,000.00, for a total budget of $270,000.00, pursuant to CEQA Guideline 15378. -57-
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-58-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH PAKPOUR CONSULTING GROUP, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $200,000.00, FOR A TOTAL BUDGET OF $600,000.00, UNDER CEQA GUIDELINE 15378 SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with Pakpour Consulting Group, Inc. (“Pakpour”) for as-needed general engineering services on a project-by-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for general engineering services in the next year and estimates an additional not-to-exceed amount of $200,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional general engineering services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works on behalf of the Town to authorize funding for general engineering services to Pakpour through task orders.

Under this amended agreement, Pakpour will continue to provide as-needed general engineering services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with Pakpour Consulting Group, Inc. for as- -59-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

needed general engineering services in the amount of $200,000.00, for a total budget of $600,000.00, under CEQA Guideline 15378.
-60-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AMENDMENT TO THE EXISTING AGREEMENT WITH PAKPOUR CONSULTING GROUP, INC. FOR AS-NEEDED GENERAL ENGINEERING SERVICES IN THE AMOUNT OF $200,000.00, FOR A TOTAL BUDGET OF $600,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed general engineering services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed engineering and consulting services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with Pakpour Consulting Group, Inc. for as-needed general engineering services on a project-by-project basis; and
WHEREAS, staff evaluated the anticipated needs for general engineering services of future CIP projects in the next year and estimates an additional not-toexceed amount of $200,000.00 is necessary; and WHEREAS, staff recommends amending the existing agreement with Pakpour Consulting Group, Inc. for general engineering services in the amount of $200,000.00, for a total project budget of $600,000.00; and WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for general engineering services to Pakpour Consulting Group, Inc. through task orders.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with Pakpour Consulting Group, Inc. for asneeded general engineering services to be extended one year and in the amount of $200,000.00, for a total budget of $600,000.00, under CEQA Guideline 15378.

Mayor of the Town of Hillsborough
-61-
2 Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-62-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH R.E.Y. ENGINEERS, INC.

FOR AS-NEEDED SURVEYING SERVICES IN THE AMOUNT OF $15,000.00, FOR A TOTAL BUDGET OF $45,000.00, UNDER CEQA GUIDELINE 15378
SUMMARY: On August 14, 2023, the City Council authorized the City Manager to execute a twoyear agreement with R.E.Y. Engineers, Inc. (“REY”) for as-needed surveying services on a projectby-project basis, with an option to extend the agreement for one additional year.

The agreement is currently in the second year of the term. Staff evaluated the anticipated needs for surveying services in the next year and estimates an additional not-to-exceed amount of $15,000.00 is necessary to support the Fiscal Year 2025-26 capital improvement program. This on-call contract will allow the Public Works Department to quickly secure as-needed professional surveying services for projects, without undergoing a lengthy Request for Proposal process, should funding become available. No funding is authorized as part of this agenda item. This agenda item authorizes the Director of Public Works to authorize funding for surveying services to REY through task orders.

Under this amended agreement, REY will continue to provide as-needed surveying services on a project-by-project basis. The term of the amended agreement is one additional year upon written mutual consent of both parties. The proposed agreement may be terminated by the Town at any time.

FISCAL IMPACT: The as-needed general engineering services support the Water, Stormwater, Sewer, and Street Capital Improvement Programs, and are budgeted in FY 2025-26.

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.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an amendment to the existing agreement with R.E.Y. Engineers, Inc. for as-needed -63-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

surveying services in the amount of $15,000.00, for a total budget of $45,000.00, under CEQA Guideline 15378.
-64-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AGREEMENT WITH R.E.Y. ENGINEERS, INC.

FOR AS-NEEDED SURVEYING SERVICES IN THE AMOUNT OF $15,000.00, FOR A TOTAL BUDGET OF $45,000.00, UNDER CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) desires to secure as-needed surveying services necessary for the Town’s engineering and public works functions; and
WHEREAS, a Request for Proposals was publicly advertised in May 2023 to engage qualified firms interested in providing as-needed surveying services to the Town; and
WHEREAS, staff conducted analyses of the proposals received and reviewed the qualifications of each firm; and
WHEREAS, on August 14, 2023, the City Council authorized an agreement with R.E.Y.

Engineers, Inc. for as-needed surveying services on a project-by-project basis; and
WHEREAS, staff evaluated the anticipated needs for surveying services of future CIP projects in the next year and estimates an additional not-to-exceed amount of $15,000.00 is necessary; and
WHEREAS, staff recommends amending the existing agreement with R.E.Y.

Engineers, Inc. for surveying services in the amount of $15,000.00, for a total project budget of $45,000.00; and
WHEREAS, no funding is authorized as part of this agenda item; and WHEREAS, this agenda item authorizes the Director of Public Works to authorize funding for surveying services to R.E.Y. Engineers, Inc. through task orders.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an amendment to the existing agreement with R.E.Y. Engineers, Inc. for as-needed surveying services to be extended one year and in the amount of $15,000.00, for a total budget of $45,000.00, under CEQA Guideline 15378.

Mayor of the Town of Hillsborough
Attest: City Clerk
-65-
2 This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-66-

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

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION AWARDING TO AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH CASEY CONSTRUCTION, INC. FOR THE SHADY LANE STORM DRAIN REPLACEMENT PROJECT IN THE AMOUNT OF $668,414.00, WITH A 20% CONTINGENCY IN THE AMOUNT OF $133,682.80, FOR TOTAL COST OF $822,096.80, UNDER CEQA GUIDELINE 15301
SUMMARY: This project involves replacing, realigning, and upsizing approximately 900 linear feet of storm drain pipe and associated structures on Shady Lane, a private street. Portions of the existing storm drain are located in backyards and under private property improvements, making maintenance access challenging. The undersized catch basins and pipes in the streets require frequent maintenance to clear debris and prevent localized flooding. Existing Town maintained infrastructure located in Shady Lane will be placed within a Public Utility Easement. The proposed improvements will enhance system capacity, reduce flooding, lower maintenance costs, and improve accessibility.

This project was advertised in accordance with the Public Contract Code and on the Town’s website and the local newspaper. A total of twelve bids were received and opened on August 27, 2025. The bid results were announced in the Town Hall Council Chambers, in accordance with the Town’s policies and procedures. The bid summary is as follows:

Casey Construction, Inc. $668,414.00
A3 Pipeline $708,605.00
John Boylan Engineering, Inc. $724,444.20
FJ&I Engineering, Inc. $729,249.00
Redwood Engineering Construction $764,859.00
NORGO Engineering $813,290.00
Globe Engineering Development $820,811.00
GSW Construction, Inc. $823,885.00
Golden State Construction & Utility, Inc. $924,000.00
Farallon Company Engineering $927,187.55
Pacific Underground Construction, Inc. $1,620,305.00
Of the bids received for this project, Casey Construction, Inc. (“Casey”) was confirmed by staff to be the lowest responsible bidder submitting a responsive bid. Based on staff analysis of the low bid, it was determined that Casey qualifications and experience levels are satisfactory to perform all work associated with this project. Casey has successfully completed similar projects in Town in the past.
-67-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

FISCAL IMPACT: It is recommended that $680,000.00 be allocated from the approved budget for the Shady Lane Storm Drain Improvement project (CIP #810), with the remaining $142,682.80 allocated from Storm Drain Improvements – MP High Priority (CIP #801). The allocation includes a 20% contingency of $133,682.80, available for use if needed, bringing the total project allocation to $822,096.80. As Shady Lane is a private street, a portion of the paving costs will be reimbursed to the Town from the Shady Lane residents. Based on the low bid received, it is anticipated approximately $45,000.00 will be reimbursed to the Town by the residents. Affected residents have already entered into a paving agreement with the Town and submitted a deposit for their share. The final number will be determined based on actual costs. Sufficient funds are available within the approved budgets to fully cover this project.

ENVIRONMENTAL ISSUES: This project is exempt from the California Environmental Quality Act (CEQA) per Section 15301 of the California Code of Regulations.

ATTACHMENTS: Resolution
PREPARED BY: Natalie Gribben, Deputy Director of Public Works RECOMMENDATION: Adopt the resolution awarding to and authorizing the City Manager to execute a contract with Casey Construction, Inc. for the Shady Lane Storm Drain Replacement Project in the amount of $668,414.00, with a 20% contingency of $133,682.80 if needed, for a total cost of $822,096.80 under CEQA Guideline 15301.
-68-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

AWARDING TO AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH CASEY CONSTRUCTION, INC. FOR THE SHADY LANE STORM DRAIN REPLACEMENT PROJECT IN THE AMOUNT OF $668,414.00, WITH A 20% CONTINGENCY IN THE AMOUNT OF $133,682.80, FOR TOTAL COST OF $822,096.80 UNDER CEQA GUIDELINE 15301
WHEREAS, the Town of Hillsborough (“Town”) maintains the Town’s storm drain system; and
WHEREAS, the capital improvement budget identified a project to evaluate and replace deficient storm drain pipe near Shady Lane; and
WHEREAS, the Shady Lane Storm Drain Replacement Project (“Project”) consists of replacing approximately 900 linear feet of storm drain pipe and associated catch basins, manholes, and an outfall; and
WHEREAS, plans and specifications have been developed for improvements to the Town’s storm drain system to repair the deficient pipe segments; and WHEREAS, the Project was publicly bid and advertised in accordance with the Public Contracts Code, and the Town received twelve bids for the Project; and WHEREAS, Casey Construction, Inc. (“Casey”) was the lowest responsible bidder submitting a responsive bid in the amount of $668,414.00; and WHEREAS, staff conducted an analysis of the bid and verified that Casey’s qualifications and experience levels are satisfactory; and WHEREAS, funding will be allocated from the approved budget for the Shady Lane Storm Drain Improvement (CIP #810).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby awards and authorizes the City Manager to execute the contract with Casey Construction, Inc. for the Shady Lane Storm Drain Replacement Project in the amount of $668,414.00, with a 20% contingency of $133,682.80 if needed, for a total cost of $822,096.80 under CEQA Guideline 15301, allocating funds from the approved budget for the Shady Lane Storm Drain Improvement (CIP #810).

Mayor of the Town of Hillsborough
Attest: City Clerk
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2 This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
12 PUBLIC HEARING

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 2455 SUMMIT DRIVE UNDER CEQA GUIDELINE 15303 AND

RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 2419 OAKDALE ROAD UNDER CEQA GUIDELINE 15303
SUMMARY: The owners of 2455 Summit Drive and 2419 Oakdale Road both submitted revocable encroachment permit applications to the Town to access, use and maintain the ten-foot-wide strip of public right-of-way adjacent to the southern property lines of both properties (“right-of-way”). The owners are requesting sole responsibility for landscape maintenance in the right-of-way immediately adjacent to their respective properties. The respective right-of-ways are more particularly described in the attached Revocable Encroachment Permit Agreements for 2455 Summit Drive and 2419 Oakdale Road.

Per Hillsborough Municipal Code (HMC) 12.12.030.C, the City Council shall approve, conditionally approve or deny the application based on public health, safety and welfare needs and taking into account in that regard, the likelihood of the Town's need for access to the affected portion of the right-of-way and any other factors that the council deems relevant to a determination of the public health, safety, and welfare needs.

An active Town sanitary sewer main and a water main currently run through each right-of-way which prevents the Town from vacating the areas. Shifting maintenance responsibility to the residents will not affect necessary access to Town utilities and infrastructure. Staff determined there are no impacts to parking, traffic, or other any other relevant factors.

Upon City Council approval of the application, the owners must each enter into a revocable encroachment permit agreement with the Town. The agreements call for the owners to restore the right-of-way to its condition as of the date of the agreement within fourteen (14) days following the Owner’s receipt of a written demand at the owner’s expense. Notices for the public hearing have been sent to adjoining neighbors as required by the HMC.

Any public comment received after 5:00 p.m. on Wednesday, September 3, 2025 and prior to 4:00 p.m. on Monday, September 8, 2025 will be emailed to the City Council and posted on the Town website.

FISCAL IMPACT: This action will not create any new financial responsibility to the Town.

ENVIRONMENTAL ISSUES: There are no environmental issues associated with this agenda item. -71-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

ATTACHMENTS:

1. Resolution and Revocable Encroachment Permit Agreement for 2455 Summit Drive

2. Resolution and Revocable Encroachment Permit Agreement for 2419 Oakdale Road PREPARED BY: Paul Willis, Director of Public Works
RECOMMENDATION:

1. Open the public hearing and receive comments; and

2. Close the public hearing; and

3. Adopt the resolution approving the Revocable Encroachment Permit Application for 2455 Summit Drive.

4. Adopt the resolution approving the Revocable Encroachment Permit Application for 2419 Oakdale Road.
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 2455 SUMMIT DRIVE UNDER CEQA GUIDELINE 15303
WHEREAS, the owner(s) of 2455 Summit Drive has submitted a revocable encroachment permit application to the Town; and
WHEREAS, the owner(s) proposes to access, use and maintain the ten-foot-wide strip of public right-of-way immediately adjacent to property’s southern property line; and
WHEREAS, pursuant to Hillsborough Municipal Code Section 12.12.030, the City Council shall approve, conditionally approve, or deny the an application for a revocable encroachment permit based on public health, safety and welfare needs and taking into account in that regard, the number and location of any other outdoor fixtures located within the right-of-way in the vicinity of the proposed outdoor fixture, the likelihood of the town's need for access to the affected portion of the right-of-way, the effect that allowing the outdoor fixture within the right-of-way would have on parking and on traffic safety (traffic meaning motor vehicles, self-propelled vehicles and pedestrians), and any other factors that the council deems relevant to a determination of the public health, safety, and welfare needs; and
WHEREAS, based on the required findings identified above, staff recommends that the City Council approve the revocable encroachment permit application for 2455 Summit Drive; and
WHEREAS, the City Council and the public have been presented in open and noticed public meetings, all the details of the project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves the revocable encroachment permit application for 2455 Summit Drive to access, use and maintain the public right-of-way upon the owners’ execution of the agreement attached hereto as Attachment 1.

1. The City Council finds the use of this area will have no impact on the public health, safety and welfare need, taking the following into account in that regard as further detailed below:
a. There are no other narrow 10-foot-wide public right-of-way strips in the area to compare with, and so approval of this application cannot make any impact on future requests. There will be no changes to the subject property frontages.
b. The use of this right-of-way would have no impact on parking and on traffic safety.
c. There are no other factors that the City Council deems relevant to make a determination of the public health, safety, and welfare needs. -73-
ATTACHMENT 1
2 First, there is no evidence that the use granted as part of this application would create a public health, safety and welfare impact on the Town. Currently, there is no public access to this area and therefore no impact on public health, safety, and welfare.

Second, the Town does not anticipate a public health, safety, or welfare impact in approving the application primarily because the agreement would still allow the Town to access the area where Town public utilities exist. Town staff will have easy access to the utilities in the event that access is required. In fact, approval of the application will have no impact on any necessary access to Town utilities and infrastructure.

Finally, approval of the application is not anticipated to impact parking and traffic safety because this narrow 10-foot-wide strip is not accessible to vehicles.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-74-

RECORDING REQUESTED BY AND
AFTER RECORDING MAIL TO:

TOWN CLERK

TOWN OF HILLSBOROUGH
1600 FLORIBUNDA AVE.

HILLSBOROUGH, CA 94010
No recordation fee required per Government
Code Section 6103.

SPACE ABOVE RESERVED FOR RECORDER’S USE

TITLE OF DOCUMENT

AGREEMENT REGARDING A REVOCABLE ENCROACHMENT PERMIT FOR 2455 SUMMIT DRIVE, HILLSBOROUGH.
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ATTACHMENT 1
WHEN RECORDED MAIL TO:

City Engineer of the Town of Hillsborough
1600 Floribunda Ave.

Hillsborough, CA 94010

AGREEMENT REGARDING A REVOCABLE ENCROACHMENT PERMIT
THIS AGREEMENT is entered into between the TOWN OF HILLSBOROUGH (“Town”) and _____________________________________ the “Owner” of that certain real property commonly known as 2455 Summit Drive, Hillsborough, California, more particularly described on Attachment 1 attached hereto.

Owner desires to access and use of the ten-foot-wide strip of public right-of-way adjacent to the southern property line of the 2455 Summit Drive (“right-of-way”), more particularly described and shown in Exhibit “A” Legal Description and Exhibit “B” Plat. The owner is permitted unrestricted use of the right-of-way, excluding the installation of any Outdoor Fixtures and trees, and shall be solely responsible for landscape maintenance in the area.

Immediately upon proof of recordation of this document by the San Mateo County Recorder’s Office, the Town shall issue a revocable permit for use of the right-of-way. Owner for Owner’s self, successors, and assigns, hereby agrees that unrestricted use of the right-of-way, and all landscape maintenance responsibilities related thereto, shall be terminated, at Owner’s expense, upon written demand of the Town. Such demand shall be based on the Town’s discretion, or the need by a utility company or for some other similar reason. The right-of-way shall be restored to its condition as of the date of this Agreement within fourteen (14) days following the Owner’s receipt of a written demand.

If the right-of-way is needed by the Town or by a utility company for utility purposes or other temporary needs, upon cessation of such need, confirmed by the Town, Owner shall be entitled to continued unrestricted use of the right-of-way under the continued terms of this Agreement. However, if the area is needed by the Town for use of any part of the right-of-way, the Owner shall not resume use of the right-of-way without additional approval from the Director of Public Works. -76-
2 The Owner hereby grants permission to the Town and their employees to enter upon the right-ofway at reasonable times and in a reasonable manner to operate and maintain the Town existing infrastructure. The Town also has a right to enter the right-of-way when necessary for correction of a violation of any ordinance or regulation. The Town shall provide reasonable (as may be appropriate for the particular circumstances) notice to the Owner before entering the property, unless during an emergency where immediate access is necessary to prevent disruption of utility service to the public.

The Owner shall indemnify, hold harmless and defend the Town and its authorized agents, officers, officials and employees from and against any and all claims, demands, suits, damages, liabilities and losses, including attorney fees, (collectively, “claims”) arising from or relating to the use of or construction within the right-of-way by Owner, except for those claims caused solely by the Town’s negligence or willful misconduct. In the event a claim is asserted against the Town, its authorized agents, officers, officials or employees, the Town shall promptly notify the Owner and the Owner shall defend at its own expense any suit based on such claim as it relates to claims covered by this indemnity. This section shall not apply to any claims, to the extent attributable to the negligence or willful misconduct of the Town.

The restrictions contained in this Agreement may be removed only by a document executed and recorded by the Town and the Owner.

TOWN OF HILLSBOROUGH OWNER:

By: ___________________________ ______________________________ Paul Willis, P.E., QSD/QSP
Director of Public Works ______________________________ Date ___________________________ Date___________________________ -77-
Exhibit “A” - Legal Description
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Exhibit “B” – Improvement Plan
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 2149 OAKDALE ROAD UNDER CEQA GUIDELINE 15303
WHEREAS, the owner(s) of 2149 Oakdale Road has submitted a revocable encroachment permit application to the Town; and
WHEREAS, the owner(s) proposes to access, use and maintain the ten-foot-wide strip of public right-of-way immediately adjacent to property’s southern property line; and
WHEREAS, pursuant to Hillsborough Municipal Code Section 12.12.030, the City Council shall approve, conditionally approve, or deny the an application for a revocable encroachment permit based on public health, safety and welfare needs and taking into account in that regard, the number and location of any other outdoor fixtures located within the right-of-way in the vicinity of the proposed outdoor fixture, the likelihood of the town's need for access to the affected portion of the right-of-way, the effect that allowing the outdoor fixture within the right-of-way would have on parking and on traffic safety (traffic meaning motor vehicles, self-propelled vehicles and pedestrians), and any other factors that the council deems relevant to a determination of the public health, safety, and welfare needs; and
WHEREAS, based on the required findings identified above, staff recommends that the City Council approve the revocable encroachment permit application for 2149 Oakdale Road; and
WHEREAS, the City Council and the public have been presented in open and noticed public meetings, all the details of the project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves the revocable encroachment permit application for 2149 Oakdale Road to access, use and maintain the public right-of-way upon the owners’ execution of the agreement attached hereto as Attachment 1.

1. The City Council finds the use of this area will have no impact on the public health, safety and welfare need, taking the following into account in that regard as further detailed below:
a. There are no other narrow 10-foot-wide public right-of-way strips in the area to compare with, and so approval of this application cannot make any impact on future requests. There will be no changes to the subject property frontages.
b. The use of this right-of-way would have no impact on parking and on traffic safety.
c. There are no other factors that the City Council deems relevant to make a determination of the public health, safety, and welfare needs. -82-
ATTACHMENT 2
2 First, there is no evidence that the use granted as part of this application would create a public health, safety and welfare impact to the Town. Currently, there is no public access to this area and therefore no impact on public health, safety, and welfare.

Second, the Town does not anticipate a public health, safety, or welfare impact in approving the application primarily because the agreement would still allow the Town to access the area where Town public utilities exist. Town staff will have easy access to the utilities in the event that access is required. In fact, approval of the application will have no impact on any necessary access to Town utilities and infrastructure.

Finally, approval of the application is not anticipated to impact parking and traffic safety because this narrow 10-foot-wide strip is not accessible to vehicles.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of September 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-83-

RECORDING REQUESTED BY AND
AFTER RECORDING MAIL TO:

TOWN CLERK

TOWN OF HILLSBOROUGH
1600 FLORIBUNDA AVE.

HILLSBOROUGH, CA 94010
No recordation fee required per Government
Code Section 6103.

SPACE ABOVE RESERVED FOR RECORDER’S USE

TITLE OF DOCUMENT

AGREEMENT REGARDING A REVOCABLE ENCROACHMENT PERMIT FOR 2419 OAKDALE ROAD, HILLSBOROUGH.
-84-
ATTACHMENT 1
WHEN RECORDED MAIL TO:

City Engineer of the Town of Hillsborough
1600 Floribunda Ave.

Hillsborough, CA 94010

AGREEMENT REGARDING A REVOCABLE ENCROACHMENT PERMIT
THIS AGREEMENT is entered into between the TOWN OF HILLSBOROUGH (“Town”) and _____________________________________ the “Owner” of that certain real property commonly known as 2419 Oakdale Road, Hillsborough, California, more particularly described on Attachment 1 attached hereto.

Owner desires to access and use of the ten-foot-wide strip of public right-of-way adjacent to the southern property line of the 2419 Oakdale Road (“right-of-way”), more particularly described and shown in Exhibit “A” Legal Description and Exhibit “B” Plat. The owner is permitted unrestricted use of the right-of-way, excluding the installation of any Outdoor Fixtures and trees, and shall be solely responsible for landscape maintenance in the area.

Immediately upon proof of recordation of this document by the San Mateo County Recorder’s Office, the Town shall issue a revocable permit for use of the right-of-way. Owner for Owner’s self, successors, and assigns, hereby agrees that unrestricted use of the right-of-way, and all landscape maintenance responsibilities related thereto, shall be terminated, at Owner’s expense, upon written demand of the Town. Such demand shall be based on the Town’s discretion, or the need by a utility company or for some other similar reason. The right-of-way shall be restored to its condition as of the date of this Agreement within fourteen (14) days following the Owner’s receipt of a written demand.

If the right-of-way is needed by the Town or by a utility company for utility purposes or other temporary needs, upon cessation of such need, confirmed by the Town, Owner shall be entitled to continued unrestricted use of the right-of-way under the continued terms of this Agreement. However, if the area is needed by the Town for use of any part of the right-of-way, the Owner shall not resume use of the right-of-way without additional approval from the Director of Public Works. -85-
2 The Owner hereby grants permission to the Town and their employees to enter upon the right-ofway at reasonable times and in a reasonable manner to operate and maintain the Town existing infrastructure. The Town also has a right to enter the right-of-way when necessary for correction of a violation of any ordinance or regulation. The Town shall provide reasonable (as may be appropriate for the particular circumstances) notice to the Owner before entering the property, unless during an emergency where immediate access is necessary to prevent disruption of utility service to the public.

The Owner shall indemnify, hold harmless and defend the Town and its authorized agents, officers, officials and employees from and against any and all claims, demands, suits, damages, liabilities and losses, including attorney fees, (collectively, “claims”) arising from or relating to the use of or construction within the right-of-way by Owner, except for those claims caused solely by the Town’s negligence or willful misconduct. In the event a claim is asserted against the Town, its authorized agents, officers, officials or employees, the Town shall promptly notify the Owner and the Owner shall defend at its own expense any suit based on such claim as it relates to claims covered by this indemnity. This section shall not apply to any claims, to the extent attributable to the negligence or willful misconduct of the Town.

The restrictions contained in this Agreement may be removed only by a document executed and recorded by the Town and the Owner.

TOWN OF HILLSBOROUGH OWNER:

By: ___________________________ ______________________________ Paul Willis, P.E., QSD/QSP
Director of Public Works ______________________________ Date ___________________________ Date___________________________ -86-
Exhibit “A” - Legal Description
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Exhibit “B” – Improvement Plan
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-90-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
13 OLD BUSINESS

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: 40 BAYWOOD AVENUE PROPERTY DONATION - RESPONSE FROM

TRUSTEE
SUMMARY: At the June 9, 2025 City Council meeting, the City Council agreed on several conditions to serve as the basis for a proposal to be developed by the Town to provide to the basis for the terms under which the Town would accept the donation of 40 Baywood. The general terms and direction provided, included:

1. Full ownership of the property by the Town, with no claim by “Friends of 40 Baywood Avenue.”

2. Transfer of all trust assets to the Town for maintenance of the property.

3. Termination of “Friends of 40 Baywood Avenue’s” involvement in property or trust management, in its current form.

The Town sent a letter to the Trustee on June 13, 2025 with the agreed upon terms (Attachment 1), as directed by the City Council.

On Friday, July 11, 2025, the Town received a letter from the Trustee (Attachment 2), in response to the Town’s letter. The response does not reject nor accept the Town’s proposal, but requests that the Town provide a written proposal of usage and commitment “by August 31, 2025.” The letter continues, “If I do not receive a written proposal/commitment by August 31, 2025, I will assume the Town is not comfortable committing to the Property as described above and is rejecting the gift.” In order to adhere to the requirements as stated by the Trustee, the Assistant City Attorney crafted a donation agreement in accordance with the previous direction received by the City Council (Attachment 3). The Town provided this agreement to the Trustee on August 17, 2025. On August 24, 2025, the Trustee submitted a redlined agreement (Attachment 2). Since there are several alterations to the agreement that are outside of the scope of the direction provided by the City Council, the revised changes are being reshared with the Council for consideration. A summary of the proposed modifications is below. - Requirement that the Town open the main house and grounds to the public once a month for at least two hours.
- A prohibition on increasing the square footage of a structure by more than 10%. - Attorneys’ fees clause adds additional language around the process regarding litigation should the Town violate or appear to violate the agreement.
-91-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

ALTERNATIVES FOR CONSIDERATION:

It has been indicated to us that the Trustee is no longer interested in negotiating if the Town cannot agree to the redlined changes to the donation agreement. The Trustee has provided the deadline of September 8, 2025 for a final decision. This does not allow for an analysis on the financial feasibility or costs as was originally anticipated by the Town. These changes also may add to the anticipated costs as opening the main house and grounds would require immediate costs such as ADA requirements, insurance, and staffing to comply. The Trustee never declined the Town’s original donation agreement, but offered the counter-proposal of Attachment 4. The Town could reoffer the original agreement as a best and final offer to see if there is any flexibility on the part of the Trustee to agree to the Town’s original request. A summary of alternatives for Council consideration is below:

1. Accept the redlined donation agreement as proposed by the Trustee (Attachment 4).

2. Reject the redlined donation agreement as proposed by the Trustee and reissue the Town’s original proposal and ask for formal acceptance or denial (Attachment 3), though this runs outside of the requested deadline for response.

3. Reject the redlined donation agreement as proposed by the Trustee and cease negotiations.

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

ENVIRONMENTAL ISSUES: The proposed discussion and direction on this item are 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.

ATTACHMENTS:

1. June 13, 2025 Letter from Town

2. July 11, 2025 Response to Town’s Letter by Trustee

3. August 17, 2025 Donation Agreement Prepared by the Town

4. August 24, 2025 Donation Agreement Redlined by the Trustee PREPARED BY: Doug Davis, City Manager
RECOMMENDATION: Discuss and provide direction to the City Manager regarding 40 Baywood. -92-

TOWN OF HILLSBOROUGH
California
Town Hall
Phone: 650-375-7400 | Fax: 650-375-7475 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net June 13, 2025
T. Anne Lassahn
Lassahn Fiduciary Services
2075 Pioneer Ct.

San Mateo, CA 94403
Via postal mail and email to [email protected]
Dear Ms. Lassahn:

The City Council has discussed the 40 Baywood property in detail at several public meetings. At the City Council meeting on Monday, June 9, 2025, the City Council authorized the presentation of the following Conditions of Acceptance of the property:

1. Full ownership of the property by the Town, with no claim by “Friends of 40 Baywood Avenue”

2. Transfer of all trust assets to the Town for maintenance of the property.

3. Termination of “Friends of 40 Baywood Avenue’s” involvement in property or trust management, in its current form.

The City Council has requested your response to the proposal within 60 days. Please respond to me directly and I will provide your response to the City Council at a public meeting.

Sincerely,
Doug Davis
City Manager
[email protected]
ATTACHMENT 1
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ATTACHMENT 2
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-
-95-
-96-
-97-
-98-
-99-
DRAFT

DONATION AGREEMENT
This Donation Agreement (this “Agreement”) is entered into by and between Friends of 40 Baywood Avenue, a California public benefit corporation (“Friends of 40 Baywood”) and the Town of Hillsborough and is based on the following:

WHEREAS, the real property and improvements commonly know as 40 Baywood Avenue, Hillsborough (“40 Baywood” or the “Property”) were owned by Thelma Lilienthal through the Lilienthal Family Trust; and,
WHEREAS, 40 Baywood consists of two parcels, one located in the City of San Mateo and the other in Hillsborough; and,
WHEREAS, prior to her death, Mrs. Lilienthal expressed the desire to donate 40 Baywood to Hillsborough to be used for civic and recreational purposes; and, WHEREAS, following her death, title to 40 Baywood was transferred to Friends of 40 Baywood; and,
WHEREAS, Friends of 40 Baywood desires to transfer title to 40 Baywood to Hillsborough, to effectuate Mrs. Lilienthals’ desires and intentions; and, WHEREAS, 40 Baywood and Hillsborough intend to ensure that the use and development of 40 Baywood is consistent with the desires and intentions of Mrs. Lilienthal by memorializing certain undertakings by Hillsborough during the period covered by this Agreement; Now, therefore, for good and valuable considerations, including the obligations and duties set forth herein, the receipt and sufficiency of which are hereby acknowledged, Friends of 40 Baywood and Hillsborough agree as follows:

AGREEMENT

1. Term. This Agreement shall be in effect for a period of ten (10) years, beginning on the date a deed transferring title to 40 Baywood to Hillsborough is recorded with the San Mateo County Recorder (the “Term”), unless terminated earlier in accordance with Section 4 below.

2. Uses. Hillsborough shall use and operate 40 Baywood during the Term with one or more of the following:
• Park and recreational uses.
• Offices for Hillsborough and/or affiliated agencies (including the Central County Fire Department.
• Sleeping or living quarters for employees of Hillsborough and/or affiliated agencies. • Meeting rooms for community activities, classes, and similar events ATTACHMENT 3
-100-
• Private events including conferences, weddings, memorials, tours, and fundraisers for which a fee may be charged.
• Museums, displays, gift shops, and sale of concessions, either directly by Hillsborough or through leases, concession agreements, or similar arrangements. • Any other civic or public use similar in nature to the above and consistent with the character of 40 Baywood.

The parties acknowledge that implementation of these uses may require modifications to the existing structures and/or additional accessory structures in order to meet legal and operational requirements, including compliance with the Americans with Disabilities Act. Hillsborough shall not be deemed to be out of compliance with this Section so long as it is pursuing compliance reasonably and in good faith.

3. Restrictions. During the Term, Hillsborough shall not do any of the following:
(a) Construct dwelling units or other new habitable buildings outside the general area formerly occupied by servants’ quarters; provided, that this restriction shall not apply to remodeling, reconstructing, adding onto, or replacing existing structures. (b) Sell the parcel of 40 Baywood located in the City of San Mateo, except as provided in Section 4 below.
(c) Construct or operate the property as a police station, fire station, or corporation yard or for storage heavy equipment (other than as needed for maintenance and improvement of the Property itself)
(d) Construct or allow to be constructed multi-family housing.

4. Early Termination and Sale of the Property. In the event that operation of the Property becomes financially infeasible or otherwise impractical for Hillsborough during the Term, Hillsborough may offer the Property for sale. Before offering the Property for sale, Hillsborough shall give written notice via email or certified mail to Friends of 40 Baywood of Hillsborough’s intent to sell and Friends of 40 Baywood shall have the right to purchase the Property in its “asis” condition for $0.00. Friends of 40 Baywood shall have 30 days after receipt of the written notice to exercise this repurchase right by giving written notice to the City Manager of Hillsborough via email or certified mail (the “Exercise Notice”). The parties shall open escrow and complete the transfer of title within 60 days of the Exercise Notice. This Agreement shall terminate as of the closing. Use of the Property after closing will be subject to all then-current Zoning Code restrictions. If Friends of 40 Baywood does not give the Exercise Notice within the 30-day period, the repurchase right shall lapse and Hillsborough may sell the Property without restriction.

5. Dispute Resolution. Should any disputes arise during the Term regarding the performance of this Agreement, the following processes shall be followed:
-101-
(a) The party seeking resolution shall give written notice of the matters in dispute to the other party (the “Dispute Notice”). Such notices shall be given to the Chief Executive Officer of Friends of 40 Baywood or the City Manager of Hillsborough, as the case may be. (b) Within 30 days of receipt of the Dispute Notice, the Chief Executive Officer and the City Manager shall meet and confer in person and attempt to resolve the matters in dispute. The City Manager may be joined by the Mayor, a Councilmember, and/or the Assistant City Manager in such meeting.
(c) If the City Manager and Chief Executive Officer are unable to resolve the matters in dispute, the dispute shall be subject to mediation in accordance with the Commercial Rules of the Judicial Arbitration and Mediation Service (JAMS).
(d) If the parties are unable to resolve their dispute in mediation, either party may file an action in San Mateo Superior Court seeking declaratory and/or injunctive relief.

6. Miscellaneous Provisions.
(a) This Agreement includes all of the terms, conditions, and understandings of the parties regarding its subject matter. It may be modified only by a written amendment executed by both parties.
(b) This Agreement is the product of discussions, negotiations, and drafting by both parties. Neither party shall be deemed to be the drafter of the Agreement for purposes of interpretation.
(c) This Agreement may be executed in counterparts and by facsimile, electronic or Docusign signatures.

So Agreed:

Date: __________ FRIENDS OF 40 BAYWOOD AVENUE
By: __________________________________
Its: Chief Executive Officer
Date: __________ TOWN OF HILLSBOROUGH
By: __________________________________
Its: City Manager
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5207187.15206325.1
DRAFT

DONATION AGREEMENT
This Donation Agreement (this “Agreement”) is entered into by and between Friends of 40 Baywood Avenue, a California public benefit corporation (“Friends of 40 Baywood”) and the Town of Hillsborough and is based on the following:

WHEREAS, the real property and improvements commonly know as 40 Baywood Avenue, Hillsborough (“40 Baywood” or the “Property”) were owned by Thelma Lilienthal through the Lilienthal Family Trust; and,
WHEREAS, 40 Baywood consists of two parcels, one located in the City of San Mateo and the other in Hillsborough; and,
WHEREAS, prior to her death, Mrs. Lilienthal expressed the desire to donate 40 Baywood to Hillsborough to be used for civic and recreational purposes; and, WHEREAS, following her death, title to 40 Baywood was transferred to Friends of 40 Baywood to fulfill Mrs. Lilienthal’s wishes; and,
WHEREAS, Friends of 40 Baywood desires to transfer title to 40 Baywood to Hillsborough, to continue to effectuate Mrs. Lilienthal’s’ desires and intentions; and, WHEREAS, Friends of 40 Baywood and Hillsborough intend to ensure that the use and development of 40 Baywood is consistent with the desires and intentions of Mrs. Lilienthal by memorializing certain undertakings by Hillsborough during the period covered by this Agreement;
Now, therefore, for good and valuable considerations, including the obligations and duties set forth herein, the receipt and sufficiency of which are hereby acknowledged, Friends of 40 Baywood and Hillsborough agree as follows:

AGREEMENT

1. Term. This Agreement shall be in effect for a period of ten (10) years, beginning on the date a deed transferring title to 40 Baywood to Hillsborough is recorded with the San Mateo County Recorder (the “Term”), unless terminated earlier in accordance with Section 4 below.

2. Uses. Hillsborough shall use and operate 40 Baywood during the Term with one or more of the following uses:
• Park and recreational uses.
• Offices for Hillsborough and/or affiliated agencies (including the Central County Fire Department.
• Temporary Sleeping or temporary living quarters for employees of Hillsborough and/or affiliated agencies.

ATTACHMENT 4
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5207187.15206325.1
• Meeting rooms for community activities, classes, and similar events • Private events including conferences, weddings, memorials, tours, and fundraisers for which a fee may be charged.
• Museums, displays, gift shops, and sale of concessions, either directly by Hillsborough or through leases, concession agreements, or similar arrangements. • Any other civic or public use similar in nature to the above and consistent with the character of 40 Baywood.

The parties acknowledge that implementation of these uses may require modifications to the existing structures and/or additional accessory structures in order to meet legal and operational requirements, including compliance with the Americans with Disabilities Act. Hillsborough shall not be deemed to be out of compliance with this Section so long as it is pursuing compliance reasonably and in good faith.

Notwithstanding the above, (i) Hillsborough shall not permit the main house on 40 Baywood to be used as a residence but may permit employees of Hillsborough and/or affiliated agencies to use it for temporary housing (not more than one week for any person without a break for at least one week), and (ii) Hillsborough shall make the downstairs of the main house and the exterior areas of 40 Baywood available to the surrounding community at least one (1) time per month on a weekend day for at least two (2) hours.

3. Restrictions. During the Term, Hillsborough shall not do any of the following:
(a) Construct dwelling units or other new habitable buildings outside the general area formerly occupied by servants’ quarters; provided, that this restriction shall not apply to remodeling, reconstructing, adding onto, or replacing existing structures, provided, however, that neither the footprint nor the square footage of a structure shall be increased by more than ten percent (10%).
(b) Sell the either or both of the parcelsparcel of 40 Baywood located in the City of San Mateo, except as provided in Section 4 below.
(c) Construct or operate the property Property as a police station, fire station, or corporation yard or for storage heavy equipment (other than as needed for maintenance and improvement of the Property itself)
(d) Construct or allow to be constructed multi-family housing.

4. Early Termination and Sale of the Property. In the event that operation of the Property becomes financially infeasible or otherwise impractical for Hillsborough during the Term, Hillsborough may offer the Property (but not part of the Property) for sale. Before offering the Property for sale, Hillsborough shall give written notice via email or and certified mail to Friends of 40 Baywood (or its assignee or successor in interest provided contact information is provided in writing to Hillsborough) of Hillsborough’s intent to sell and Friends of 40 Baywood shall have the right to purchase the Property in its “as-is” condition for $10.00. Friends of 40 Baywood -105-
5207187.15206325.1
shall have 30 days after receipt of the written notice to exercise this repurchase right by giving written notice to the City Manager of Hillsborough via email or certified mail (the “Exercise Notice”). The parties shall open escrow and complete the transfer of title within 60 days of the Exercise Notice. This Agreement shall terminate as of the closing. Use of the Property after closing will be subject to all then-current Zoning Code restrictions. If Friends of 40 Baywood does not give the Exercise Notice within the 30-day period, the repurchase right shall lapse and Hillsborough may sell the Property without restriction. Notwithstanding the above, Hillsborough shall not encumber or hypothecate the Property permit any liens to be placed on the Property or any portion of it during the Term. A Memorandum of this Agreement may be recorded by Friends of 40 Baywood.

5. Dispute Resolution. Should any disputes arise during the Term regarding the performance of this Agreement, the following processes shall be followed:
(a) The party seeking resolution shall give written notice of the matters in dispute to the other party (the “Dispute Notice”). Such notices shall be given to the Chief Executive Officer of Friends of 40 Baywood or the City Manager of Hillsborough, as the case may be. (b) Within 30 days of receipt of the Dispute Notice, the Chief Executive Officer and the City Manager shall meet and confer in person and attempt to resolve the matters in dispute. The City Manager may be joined by the Mayor, a Councilmember, and/or the Assistant City Manager in such meeting.
(c) If the City Manager and Chief Executive Officer are unable to resolve the matters in dispute, the dispute shall be subject to mediation in accordance with the Commercial Rules of the Judicial Arbitration and Mediation Service (JAMS).
(d) If the parties are unable to resolve their dispute in mediation, either party may file an action in San Mateo Superior Court seeking declaratory and/or injunctive relief. (e) In the event that either the Town or Friends of 40 Baywood should bring suit for the breach of any provision of this Agreement or for any other relief against the other, then all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment.

6. Miscellaneous Provisions.
(a) This Agreement includes all of the terms, conditions, and understandings of the parties regarding its subject matter. It may be modified only by a written amendment executed by both parties.
(b) This Agreement is the product of discussions, negotiations, and drafting by both parties. Neither party shall be deemed to be the drafter of the Agreement for purposes of interpretation.
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(c) This Agreement may be executed in counterparts and by facsimile, electronic or Docusign signatures.

So Agreed:

Date: __________ FRIENDS OF 40 BAYWOOD AVENUE
By: __________________________________
Its: Chief Executive Officer
Date: __________ TOWN OF HILLSBOROUGH
By: __________________________________
Its: City Manager
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
14 OLD BUSINESS

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: ACCEPT SOLID WASTE RATE STUDY AND AUTHORIZE IMPLEMENTATION

OF THE RECOMMENDATIONS
SUMMARY: The Town has undertaken a solid waste rate study to review and determine the rates necessary to fund the revenue requirement for its solid waste system starting on January 1, 2026.

The study focuses on the funding necessary for the provision of solid waste composting and recycling services to customers. Ther results of the study have been reviewed by staff, the Financial Advisory Committee (FAC), Finance Commissioner, and the City Council at a public study session on August 11, 2025.

The Town reviews the need for potential solid waste increases annually or as needed to ensure that revenues are sufficient to cover the costs of the solid waste function. In 2022, the Town adopted a five-year schedule of increases to maximum authorized rates. The first three years of the rates were implemented at the maximum rates, effective January 2023, 2024, and 2025.

Recent projections show the maximum approved rates are insufficient to cover higher than anticipated costs. To cover the cost of services of the solid waste function, a new five-year rate series is recommended and will require Proposition 218 proceedings to adopt the proposed rates.

If adopted, the first year of the rate series would be effective January 2026.

After a competitive selection process, HF&H Consultants (HF&H) were determined to be the most qualified consultants based on their relevant experience in preparing rate studies. HF&H were awarded the contract and have prepared the Solid Waste Rate Study Report that calculated projected rates for a five-year planning period (2026-2030).

Background
Solid waste, recyclable material, and organic collection services are provided to residential and commercial customers through a franchise agreement with Recology of San Mateo County (Recology), which expires on December 31, 2035.

The Town is a member of Rethink Waste - South Bayside Waste Management Authority Joint Powers Agreement (“Rethink Waste”). Under the agreement, each member agency sets its solid waste rates for residential and commercial customers. Each of the eleven Rethink Waste member jurisdictions has a franchise agreement with Recology of San Mateo County for collection of residential and commercial solid waste, recycling, and green waste. In addition, the Shoreway Environmental Center is owned by Rethink Waste and operated by contract with South Bayside Industries. The Shoreway facility serves as a regional solid waste and recycling facility for receiving, handling, and transferring refuse, recyclable, and organic materials. -109-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

The cost for collection and disposal of solid waste, recyclables, and organic materials in a manner that complies with State law is paid through the rates by the customers receiving the services. The City Council approves the rates to be charged for solid waste, recycling, and organics collection sufficient to cover the costs of the program.

Analysis
The total annual revenue requirement for the solid waste and recycling program is calculation based on the following components:

1. Collection Costs (Recology Compensation) – This category includes the costs of solid waste, recyclable, and organic materials collection by Recology, taken to the Shoreway facility for processing, staging, and shipment. The franchise agreement with Recology is a “fixed cost” contract where future costs are adjusted based on contractually approved indices.

2. Disposal and Processing Fees (also known as “tipping fees”) - This category includes the cost of processing at the Shoreway facility, disposal, commodity sales, and organics processing.

3. Franchise Fees - Fees are charged by the Town to Recology for the cost the Town incurs to grant the franchise to Recology, as well as compensation for physical, tangible government property used by Recology to provide solid waste service. Recology has determined to meet this obligation by billing Hillsborough customers directly.

The Balancing Account is used or replenished to ensure stability and a smoothing rate, where applicable.

Cost of Service Study
HF&H performed a cost of service and rate study (the “Study”) for the Town of Hillsborough with projections for the cost of service and revenue requirements for the rate years effective January 2026 through 2030. The study indicates an overall revenue requirement increase ranging from 5% to 6% over the five-year period. The customer rate increases vary based upon the cost of service for the specific service provided. The rate study aligns the rates (based on the size of cart) with the projected cost of service. The cart charges reflect the actual cost of service for each service level (20-gallon cart, 32-gallon cart, etc.) The commercial account customers received a letter from the Town regarding the change in cost of service to ensure they are aware of the upcoming changes.

In addition, customers will receive the required notice under Proposition 218.

The Town has judiciously used its positive balancing account to temper rate increases to customers over the past several years and has utilized a combination of rate increases and balancing account to provide stability over the proposed five-year schedule of rate increases.

Spreading rate increases over a five-year period are recommended as it will allow for the planned and orderly implementation of rate adjustments over the term to ensure that the revenue required is met and balances remain at acceptable levels. Projections are reviewed annually to determine if the cost of service is on track with the assumptions made in the rate study.

Process for Implementation
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Agenda Staff Report - Hillsborough City Council
September 08, 2025

The Proposition 218 process requires the Town to hold a public hearing on the proposed rates for the charges and to mail notice of the public rearing to property owners who are directly liable for the payment of solid waste charges not less than 45 days before the public hearing to adopt the rates for the service fees or charges. They are subject to the protest proceeding wherein the adoption of any new or increase in any existing fees and charges cannot be adopted if the Town receives written protest to the proposed fees and charges from the record owners of a majority (50%+1) of the parcels upon which the charges are proposed for imposition who are directly liable for the payment of the proposed solid waste charges.

It is recommended that the City Council adopt the recommendation for adjustments and increases to the solid waste rates effective for January 2026 through 2030, as outlined in the HF&H Solid Wate Rate Study Report. In addition, it is requested that City Council direct staff to mail the Notice of Public Hearing on Proposed Adjustment and Increases to Town of Hillsborough 2026 through 2030 Solid Wate Rates and set the public hearing at no less than 45 days.

FISCAL IMPACT: Solid waste collection service costs in Hillsborough are covered by the solid waste rate paid by residential and commercial accounts. The costs of these services do not impact on the Town budget or the General Fund.

ENVIRONMENTAL ISSUES: In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the increases in the solid waste service charges are exempt from CEQA pursuant to Section 15378 and Section 15273 of the CEQA Guidelines and Public Resources Code Section 21080(b0(8) because (a) the increase charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services and (ii) the charges constitute the creation of a funding mechanism/other governmental fiscal activity which does not involve any commitment to any specific project that may result in potential significant physical impact on the environment.

ATTACHMENTS:

1. HF&H Solid Waste Rate Study Report

2. Notice of Public Hearing on Proposed Adjustments and Increases to Town of Hillsborough 2026- 2030 Solid Waste Rates

3. Proposition 218 Protest Procedures
PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION:

1. Accept the recommendations for solid waste rate increases and changes as outlined in the HF&H Solid Waste Rate Study Report.

2. Direct staff to mail the Notice of Public Hearing on Proposed Adjustment and increase to Town of Hillsborough 2026-2030 Solid Waste Rates; and

3. Set the public hearing at no less than 45 days after the notice is mailed. -111-
Draft Report

THE TOWN OF HILLSBOROUGH
2026 Solid Waste Rate Study
ATTACHMENT 1
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HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
July 31, 2025
Jan Cooke
Finance Director
Town of Hillsborough
1600 Floribunda Avenue
Hillsborough, CA 94010
Subject: 2026 Solid Waste Rate Study – Draft Report
Jan Cooke,
HF&H Consultants, LLC (HF&H) is pleased to submit this Cost of Service (COS) draft report to the Town of Hillsborough (Town). The report is organized beginning with determining how much projected revenue is needed from solid waste rates during the next five calendar years (CYs), CY 2026 through CY 2030. The report describes how the collection, processing, and disposal costs are apportioned between residential and commercial customers. The report concludes with a discussion of the rate design that is appropriate for each customer class to ensure that customers are paying their proportionate share. * * * * *
We are pleased to have had the opportunity to assist the Town with this study and would like to thank you for your support during the project.

If you have any questions, please call me at (925) 977-6957.

Sincerely,

HF&H CONSULTANTS, LLC
Rick Simonson
Senior Vice President
ATTACHMENT 1
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2026 Solid Waste Rate Study
Table of Contents, Figures, and Acronyms

CONTENTS
EXECUTIVE SUMMARY ................................................................ 1 Annual Revenue Reconciliation/Balancing Account ........................ 1 Proposition 218 ....................................................................... 2 Study Purpose and Objectives ................................................... 2 Findings and Recommendations ................................................. 2 Implementation....................................................................... 6 SECTION 1. INTRODUCTION....................................................... 7 Study Purpose......................................................................... 7 Billing Procedures and Current Rates .......................................... 7 Legal Requirements.................................................................. 8 SECTION 2. REVENUE REQUIREMENT PROJECTIONS ................10 Balancing Account.................................................................. 10 Expense Projections ............................................................... 10 Revenue Increases................................................................. 15 SECTION 3. COST OF SERVICE ANALYSIS................................. 16 Methodology ......................................................................... 16 2026 Cost-of-Service.............................................................. 16 SECTION 4. RATE DESIGN – 2026 COST OF SERVICE................19 Volumetric (Variable) Collection Costs ....................................... 19 Fixed Collection Costs............................................................. 22 Tipping Fees at the Shoreway Environmental Center ................... 23 Cost of Service ...................................................................... 23 Multiple Collections per Week .................................................. 25 Additional Solid Waste Containers ............................................ 26 Total Cost/Rate by Customer Class and Service Level - 1st Container .......................................................................... 26 SECTION 5. PROPOSED RATES .................................................29 ATTACHMENT 1
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2026 Solid Waste Rate Study
Table of Contents, Figures, and Acronyms

FIGURES
Figure ES-1. Current Rate Revenue Compared with the Cost of Service (2026)........ 4 Figure ES-2. Current and Proposed Monthly Residential Rates ............................... 4 Figure ES-3. Current Monthly Commercial Solid Waste Rates ................................ 5 Figure ES-4. Proposed Monthly Commercial Solid Waste Rates (2026).................... 5 Figure ES-5. Current Monthly Commercial Organics Rates .................................... 6 Figure ES-6. Proposed Monthly Commercial Organics Rates (2026)........................ 6 Figure 1-1. – Current Monthly Residential Rates.................................................. 7 Figure 1-2. Current Monthly Commercial Solid Waste Rates .................................. 8 Figure 1-3. Current Commercial Organics Rates .................................................. 8 Figure 2-1. Balancing Account Summary (2023 - 2025) ..................................... 10 Figure 2-2. Projected Expenses and Revenue at Current Rates (No Rate Increases) 11 Figure 2-3. Summary of 2026 Revenue Requirement Compensation .................... 12 Figure 2-4. Recology’s 2026 Draft Compensation – Residential Services ............... 13 Figure 2-5. Recology’s 2026 Draft Compensation – Commercial Services .............. 13 Figure 2-6. Recology’s 2026 Draft Compensation – Agency Facilities .................... 14 Figure 2-7. Summary of Tipping Fees (2025-2030) ........................................... 14 Figure 2-8. Projected Expenses and Revenue at Proposed Revenue Increases ....... 15 Figure 3-1. 2022 Net Revenue Requirement by Customer Class........................... 17 Figure 3-2. Current Rate Revenue Compared to Cost of Service .......................... 18 Figure 4-1. Full Time Equivalent Route Factors.................................................. 19 Figure 4-2. Equivalent Container Factors.......................................................... 20 Figure 4-3. Equivalent Container Units............................................................. 21 Figure 4-4A. Solid Waste Variable Route Collection Costs per Month - Residential... 21 Figure 4-4B. Recycling, Organics Variable Route Collection Costs – Residential ...... 22 Figure 4-5. Solid Waste, Organics Variable Route Collection Costs – Commercial.... 22 Figure 4-6. Fixed Cart and Bin Collection Costs ................................................. 22 Figure 4-7. Cart and Bin Tipping Fees – Residential ........................................... 23 Figure 4-8. Cart and Bin Tipping Fees – Commercial.......................................... 23 Figure 4-9A. Residential Solid Waste Cost of Service.......................................... 24 Figure 4-9B. Residential Recycling Cost of Service............................................. 24 Figure 4-9C. Residential Organics Cost of Service.............................................. 24 Figure 4.10A: Commercial Solid Waste Carts Cost of Service .............................. 24 Figure 4.10B: Commercial Solid Waste Bins Cost of Service................................ 24 Figure 4.11A: Commercial Organics Carts Cost of Service .................................. 25 Figure 4.11B: Commercial Organics Bins Cost of Service.................................... 25 Figure 4-12. Example of Monthly Rate Calculation ............................................. 25 Figure 4-13. Calculation of Monthly Rate – Multiple Containers............................ 26 Figure 4-14. Residential Cost-of-Service (2026) and Monthly Rates...................... 26 Figure 4-15. Commercial Solid Waste Cost-of-Service (2026) and Monthly Rates ... 27 Figure 4-16. Commercial Organics Cost-of-Service (2026) and Monthly Rates ....... 28 Figure 5-1. Current and Proposed Monthly Residential Rates............................... 29 Figure 5-2. Commercial Solid Waste and Recycling Cost-of-Service (2026) and Monthly Rates................................................................................................ 29 Figure 5-3. Commercial Solid Waste and Recycling Cost-of-Service (2027) and Monthly Rates................................................................................................ 30 ATTACHMENT 1
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2026 Solid Waste Rate Study
Table of Contents, Figures, and Acronyms
Figure 5-4. Commercial Solid Waste and Recycling Cost-of-Service (2028) and Monthly Rates................................................................................................ 30 Figure 5-5. Commercial Solid Waste and Recycling Cost-of-Service (2029) and Monthly Rates................................................................................................ 31 Figure 5-6. Commercial Solid Waste and Recycling Cost-of-Service (2030) and Monthly Rates................................................................................................ 31 Figure 5-7. Commercial Organics Cost-of-Service (2026) and Monthly Rates ......... 32 Figure 5-8. Commercial Organics Cost-of-Service (2027) and Monthly Rates ......... 32 Figure 5-9. Commercial Organics Cost-of-Service (2028) and Monthly Rates ......... 33 Figure 5-10. Commercial Organics Cost-of-Service (2029) and Monthly Rates ....... 33 Figure 5-11. Commercial Organics Cost-of-Service (2030) and Monthly Rates ....... 34

ACRONYMS
FY Fiscal Year
COS Cost-of-Service
ECU Equivalent Container Unit
ECF Equivalent Container Factor
Fixed Collection Costs Costs not dependent on the subscribed volume of service.

Frequency Surcharge Additional cost for receiving service multiple times per week. Routing is negatively impacted when trucks must
return to areas previously serviced.

FTE Full time equivalent
MRF Material Recovery Facility
Organics Refers primarily to food, green material, landscape and/or pruning waste.

SEC Shoreway Environmental Center
SFR Single-Family Residential
Volumetric charge Refers to the variable costs associated with the size of the container subscribed to by residential or commercial
customers.

ATTACHMENT 1
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2026 Solid Waste Rate Study
Table of Contents, Figures, and Acronyms

ACKNOWLEDGEMENTS
City Council
Sophie Cole, Mayor
Leslie Marden Ragsdale, Vice Mayor
Laurie Davies Adams, Councilmember
Marie Chuang, Councilmember
Christine Krolik, Councilmember
Financial Advisory Committee
Charles Adams, Chair
Jeffrey Baxter, Member
Roger Davis, Member
Joel Friedman, Member
Michele Gutierrez, Member
Tom Maloney, Member
Mike Quackenbush Member
D. Paul Regan, Emeritus Advisor
Town Staff
Doug Davis, City Manager
Mandy Brown, Assistant City Manager
Jan Cooke, Finance Director
Rich Santiago, Assistant Finance Director
Best Best & Krieger LLP
Lutfi Kharuf, Partner
HF&H Consultants, LLC
Rick Simonson, Senior Vice President
Gabe Sasser, Project Manager
Sarah Tam, Associate Analyst
ATTACHMENT 1
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2026 Solid Waste Rate Study
Limitations

LIMITATIONS
This study was prepared solely for the Town of Hillsborough (Town) in accordance with the contract between the Town and HF&H and is not intended for use by any other party for any other purpose.

In preparing this study, HF&H relied on information from the Town’s franchised solid waste hauler, Recology of San Mateo County, which we consider to be accurate and reliable and did not independently verify.

The cost-of-service model and accompanying analyses contain projections of revenues and expenditures based on various assumptions and estimates. While we reviewed these projections with Town staff for reasonableness, actual results of operations will usually differ from projections because events and circumstances do not always occur as expected. Those differences may be significant and materially affect the analyses and findings presented in this report.

Rounding differences caused by stored values in electronic models may exist.

This study addresses relevant laws, regulations, and court decisions but should not be relied upon as legal advice. Questions concerning the interpretation of legal authorities referenced in this study should be referred to a qualified attorney.

ATTACHMENT 1
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2026 Solid Waste Rate Study
Executive Summary
HF&H Consultants, LLC | July 31, 2025 | Page 1 of 34
Executive Summary
The Town is a member of Rethink Waste - South Bayside Waste Management Authority Joint Powers Agreement (Rethink Waste). Under this agreement, each member agency sets its own solid waste rates for residential and commercial customers. Each of the eleven Rethink Waste member jurisdictions has a franchise agreement with Recology of San Mateo County (Recology) for residential and commercial solid waste, residential recycling, and residential green waste collections. The current franchise agreement runs from January 1, 2021, through December 31, 2035. Recology provides service to approximately 3,800 residential accounts and 6 commercial accounts in the Town.

In addition, a contract with South Bayside Industries provides for operations at the Shoreway Environmental Center (SEC), which is owned by Rethink Waste. The Shoreway facility serves as a regional solid waste and recycling facility for the receipt, handling and transfer of refuse, recyclable, and organic materials.

For the annual contractors’ compensation review process, staff reviews the various cost components attributable to its solid waste services, which in turn determines the revenue required from its customers for subsequent rate years. Each member of Rethink Waste is responsible for establishing the rates in their respective jurisdictions. The rates are then applied based on the garbage cart/bin size of the customer and frequency of collection services.

The Town’s residential accounts are billed for services in two ways: 1) a flat $380.16 annual charge on the tax roll (which equates to $31.68/month); and, 2) a monthly charge, billed quarterly, by Recology, based on the size of solid waste container placed for collection (20- gallon, 32-gallon, etc.). Commercial customers are also billed quarterly by Recology based on the size of container placed for collection (32-gallon cart, 1 cubic yard bin, etc.) and the frequency of collection (1 time per week, 2 times per week, etc.) Rates are developed to cover costs for the following components:
• Recology's compensation to collect and deliver materials to the Shoreway Environmental Center
• Tipping (disposal and processing) fees at the SEC

ANNUAL REVENUE RECONCILIATION/BALANCING ACCOUNT
Annually, revenues collected are compared to Recology’s Rethink Waste-approved compensation for services to the Town. If actual revenues collected exceed the approved compensation, the excess revenue is held by Recology in a balancing account. When actual revenues collected are less than Recology’s approved compensation, the Town’s balancing account is decreased. As of December 31, 2024, the Town has a positive balancing account with Recology of $330,727. The balancing account can go negative if sufficient revenues are not collected. At the expiration of the franchise agreement, the Town will owe Recology if the ATTACHMENT 1
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2026 Solid Waste Rate Study
Executive Summary
HF&H Consultants, LLC | July 31, 2025 | Page 2 of 34
balancing account is negative or Recology will owe the Town if the balancing account is positive.

PROPOSITION 218
To increase rates for these services, the Town intends to comply with article XIII D, section 6 of the California constitution, which was added by Proposition 218 in 1996. Article XIII D, section 6 requires that: (1) revenues derived from fees or charges for property-related services do not exceed the cost to provide service; (2) revenues derived from fees or charges are not be used for any purpose other than that for which it was imposed; (3) the amount of a fee or charge imposed not exceed the proportional cost of the service attributable to the parcel; (4) no fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property; and, (5) no fee or charge may be imposed for general governmental services. The analysis conducted in support of this study was conducted in consultation with the Town and its legal counsel.

STUDY PURPOSE AND OBJECTIVES
The purpose of this solid waste rate study is to conduct a comprehensive analysis of the Town’s solid waste rates, including documentation of the analysis, underlying assumptions, and the rationale for the recommended rates.

This study has several key objectives:
• Determine the revenue requirement (expenses) which the Town’s solid waste rates need to cover, including Recology’s compensation, tipping fees and the SEC, while maintaining an adequate balancing account balance with Recology;
• Determine the cost of service attributable to each parcel based upon the type and size of container serving the property and the subscribed service level; and, • Ensure that the proposed rate structure is compatible with Proposition 218 mandates.

These objectives are met by applying industry best practices and by complying with all applicable laws.

FINDINGS AND RECOMMENDATIONS
In preparing this solid waste rate update, the following findings were made. Note that these findings describe the results of the cost-of-service analysis for a five-year period, 2026-2030.

1. Operating Cost Increases.
a. Recology’s draft compensation for 2026 is increasing 1.8%. Recology’s allowable compensation is generally tied to the percentage increases in various consumer price indices (e.g., fuel, labor, vehicle repairs and maintenance) published by the Bureau of Labor Statistics. For 2027-2030, Recology’s compensation has been projected to increase by 4.0% per year. b. Tipping fees for materials collected and hauled to Rethink Waste’s SEC for processing or transfer to another processing facility or landfill, are projected to ATTACHMENT 1
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2026 Solid Waste Rate Study
Executive Summary
HF&H Consultants, LLC | July 31, 2025 | Page 3 of 34
increase by 5% in 2026. For 2027-2030, tipping fee expenses have been projected to increase by 5.0% per year, which is the combination of additional volume and anticipated costs increases to handle materials at the SEC.

2. Prior Year Revenue Shortfall. A review of current year-to-date revenue collected through May 2025 indicates that total allowable expenses will exceed rate revenue by approximately $163,709, an approximate 3.7% shortfall.

3. Projected Revenue Increases Needed. The cost-of-service (COS) study projects the rate increases needed to generate additional overall revenue to cover: 1) the recent cost increases and 2) the prior year revenue shortfall. Comparing the revenue required to cover the cost of providing service with the revenue from current rates indicates the need for rate increases sufficient to generate additional revenue, as follows:
2026 –6%*
2027 – 6%
2028 – 5%
2029 – 5%
2030 – 5%
The increases are lower than otherwise needed, as the Town currently has a positive balance in their balancing account with Recology. The increases reflect drawing the balancing account down by approximately $124,200 (to $206,520) over the five-year period. How the balancing account was established and how it is adjusted annually, is discussed in more detail in Section 2 of this report.
*The percentage increase in revenue needed for 2026 is not applied uniformly to all current rates. A cost-of-service analysis was done (see Section 4 of this report) to apportion costs to each customer class and service level within each of those customer classes. As a result, some service level rates will increase, and some will decrease.

4. 2026 Revenue Increases by Customer Class. Customer classes for the purpose of this study are residential and commercial. Figure ES-1 compares the revenue from current rates with the COS for 2026. This figure indicates how much revenue is needed from residential rates and commercial rates, respectively, to generate the 6% additional overall revenue needed in 2026. The percentage changes in revenue necessary for 2026 differ by the level of service provided (20-gallon cart, 32-gallon cart, 64-gallon cart, 1 cubic yard bin, etc.).

Historically, the Town has provided a discount to commercial organics rates to incentivize participation and reduce recyclable material entering the landfill. This has resulted in commercial organics rates being set at 50% of the commercial solid waste rates. With the passage of Senate Bill 1383, subscription to organics collection is required for commercial customers and therefore, it is recommended to immediately end the commercial organics rates discount.

The cost of service figure shows the costs specific to commercial organics service that have been factored into rate setting for 2026 such that all levels of service would meet ATTACHMENT 1
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2026 Solid Waste Rate Study
Executive Summary
HF&H Consultants, LLC | July 31, 2025 | Page 4 of 34
their cost of service. With commercial organics revenues meeting the cost of service, commercial solid waste rates would decrease slightly to realign to the cost of service.

Figure ES-1. Current Rate Revenue Compared with the Cost of Service (2026)

5. Current and Proposed Residential Rates. Based on the cost-of-service analysis (described in detail in Section 4 of this report), which apportions the cost to each level of service, the monthly charge in rates differs depending on container size.

Figure ES-2 compares the current and proposed residential rates by service level. A breakdown of the proposed rates is included in Section 4, Figure 4-14. Current and proposed rates include weekly solid waste, recycling, and organics collection services.

Figure ES-2. Current and Proposed Monthly Residential Rates

6. Current and Proposed Commercial Rates. Based on the cost-of-service analysis (described in detail in Section 4 of this report), which apportions the cost to service commercial customers to each level of service, the percentage change in rates differs by level of service. Figures ES-3 and Figure ES-4 summarize the current and 2026 proposed commercial solid waste rates by service level. Figure ES-5 and Figure ES6 summarize the current and 2026 proposed commercial organics collection rates by service level. To minimize the length of the Executive Summary, the respective proposed commercial rates for 2027-2030 are included in Section 5. Current and Revenue at 2026 Difference
Customer Class Current Rates Cost-of-Service $ %
Residential $4,062,343 $4,297,420 $235,077 5.8%
Commercial
Solid Waste/Recycling $92,302 $90,623 ($1,679) -1.8%
Organics $12,233 $29,089 $16,856 137.8%
Commercial Total $104,535 $119,712 $15,177 14.5%
Grand Total $4,166,878 $4,417,132 $250,254 6.0%
Residential Current 2026 2026 2027 2028 2029 2030
Monthly Rates Rates Rates Change Rates Rates Rates Rates Annual % Increase: varies 6.0% 5.0% 5.0% 5.0%
Flat fee per Parcel $31.68 $33.52 $1.84 $35.53 $37.31 $39.18 $41.14 Service Level
20-Gallon Cart $31.95 $35.30 $3.35 $37.42 $39.29 $41.25 $43.31 32-Gallon Cart $39.01 $41.62 $2.61 $44.12 $46.33 $48.65 $51.08 64-Gallon Cart $60.61 $63.36 $2.75 $67.17 $70.53 $74.06 $77.76 96-Gallon Cart $88.43 $91.76 $3.33 $97.26 $102.12 $107.23 $112.59 Extra Organics Cart $27.04 $27.04 $0.00 $27.04 $27.04 $27.04 $27.04 ATTACHMENT 1
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proposed solid waste rates include weekly solid waste and recycling collection services. (as shown in Figure ES-1).

Figure ES-3. Current Monthly Commercial Solid Waste Rates Figure ES-4. Proposed Monthly Commercial Solid Waste Rates (2026) Proposed commercial organics rates reflect the cost of service. Consequently, rates must increase significantly from current values to account for the 137.8% increase in commercial organics revenues necessary to obtain the cost of service, as previously shown in Figure ES-1.

Container Size 1/week 2/week 3/week 4/week 5/week 6/week 32 Gallons $57.99 $86.89 $115.79 $144.69 $173.59 $202.49 64 Gallons $73.03 $116.98 $160.93 $204.87 $248.82 $292.76 96 Gallons $87.33 $145.58 $203.83 $262.07 $320.32 $378.57 1 CY $144.11 $269.35 $394.60 $519.85 $645.10 $770.35
2 CY $271.98 $525.11 $778.24 $1,031.36 $1,284.49 $1,537.61 3 CY $442.17 $865.48 $1,288.78 $1,712.09 $2,135.40 $2,558.71 6 CY $1,121.94 $2,225.02 $3,328.10 $4,431.18 $5,534.27 $6,637.35 Additional Container
32 Gallons $13.90 $42.80 $71.70 $100.60 $129.50 $158.40 64 Gallons $29.03 $72.98 $116.92 $160.87 $204.82 $248.76 96 Gallons $43.39 $101.63 $159.88 $218.13 $276.37 $334.62 1 CY $106.31 $231.56 $356.81 $482.05 $607.30 $732.55
2 CY $235.29 $488.42 $741.55 $994.67 $1,247.80 $1,500.92 3 CY $406.58 $829.89 $1,253.20 $1,676.51 $2,099.82 $2,523.13 6 CY $1,090.78 $2,193.86 $3,296.94 $4,400.02 $5,503.11 $6,606.19 Frequency
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $60.71 $88.71 $116.71 $144.72 $172.72 $200.72 64 Gallons $74.94 $117.17 $159.40 $201.63 $243.86 $286.08 96 Gallons $89.13 $145.55 $201.98 $258.40 $314.82 $371.25 1 CY $144.40 $265.29 $386.18 $507.07 $627.95 $748.84
2 CY $276.06 $528.60 $781.14 $1,033.68 $1,286.23 $1,538.77 3 CY $438.22 $852.93 $1,267.64 $1,682.35 $2,097.05 $2,511.76 6 CY $1,093.44 $2,163.37 $3,233.29 $4,303.22 $5,373.14 $6,443.07 Additional Container
32 Gallons $14.59 $42.60 $70.60 $98.60 $126.60 $154.60
64 Gallons $28.89 $71.12 $113.35 $155.58 $197.81 $240.03 96 Gallons $43.15 $99.57 $155.99 $212.42 $268.84 $325.26 1 CY $102.49 $223.37 $344.26 $465.15 $586.04 $706.93
2 CY $234.81 $487.35 $739.89 $992.43 $1,244.98 $1,497.52 3 CY $397.56 $812.26 $1,226.97 $1,641.68 $2,056.39 $2,471.09 6 CY $1,055.27 $2,125.20 $3,195.12 $4,265.05 $5,334.98 $6,404.90 Frequency
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Figure ES-5. Current Monthly Commercial Organics Rates
Figure ES-6. Proposed Monthly Commercial Organics Rates (2026)

IMPLEMENTATION
After increasing rates effective January 1, 2026, the Town should monitor its rates before implementing subsequent rate increases. There are future events that will impact the Town’s solid waste operations.

In addition, Rethink Waste is contemplating capital improvement projects to support the Shoreway Environmental Center. The cost impacts to tipping fees are unknown at this time and will affect the proposed rates for 2026-2030 presented above.

Container Size 1/week 2/week 3/week 4/week 5/week 6/week 32 Gallons $28.99 $43.44 $57.90 $72.35 $86.80 $101.25
64 Gallons $36.52 $58.49 $80.46 $102.44 $124.41 $146.38 96 Gallons $43.67 $72.79 $101.91 $131.04 $160.16 $189.28 1 CY $72.05 $134.68 $197.30 $259.93 $322.55 $385.17
2 CY $135.99 $262.55 $389.12 $515.68 $642.24 $768.81
3 CY $221.08 $432.74 $644.39 $856.05 $1,067.70 $1,279.36 6 CY $560.97 $1,112.51 $1,664.05 $2,215.59 $2,767.13 $3,318.67 Additional Container
32 Gallons $6.95 $21.40 $35.85 $50.30 $64.75 $79.20
64 Gallons $14.52 $36.49 $58.46 $80.44 $102.41 $124.38
96 Gallons $21.69 $50.82 $79.94 $109.06 $138.19 $167.31 1 CY $53.16 $115.78 $178.40 $241.03 $303.65 $366.28
2 CY $117.65 $244.21 $370.77 $497.34 $623.90 $750.46
3 CY $203.29 $414.95 $626.60 $838.25 $1,049.91 $1,261.56 6 CY $545.39 $1,096.93 $1,648.47 $2,200.01 $2,751.55 $3,303.09 Frequency
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $65.93 $99.16 $132.38 $165.61 $198.83 $232.06 64 Gallons $85.38 $138.06 $190.73 $243.41 $296.08 $348.76 96 Gallons $104.80 $176.89 $248.98 $321.08 $393.17 $465.26 1 CY $177.37 $331.23 $485.09 $638.95 $792.80 $946.66
2 CY $342.00 $660.48 $978.96 $1,297.44 $1,615.92 $1,934.41 3 CY $537.13 $1,050.75 $1,564.37 $2,077.98 $2,591.60 $3,105.22 6 CY $1,291.26 $2,559.00 $3,826.75 $5,094.49 $6,362.24 $7,629.99 Additional Container
32 Gallons $19.82 $53.04 $86.27 $119.49 $152.72 $185.94 64 Gallons $39.33 $92.01 $144.68 $197.36 $250.04 $302.71 96 Gallons $58.82 $130.91 $203.00 $275.09 $347.19 $419.28 1 CY $135.46 $289.31 $443.17 $597.03 $750.89 $904.74
2 CY $300.75 $619.23 $937.71 $1,256.19 $1,574.67 $1,893.16 3 CY $496.47 $1,010.08 $1,523.70 $2,037.32 $2,550.94 $3,064.55 6 CY $1,253.09 $2,520.84 $3,788.58 $5,056.33 $6,324.07 $7,591.82 Frequency
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Section 1. Introduction
The Town’s franchised hauler, Recology, provides solid waste, recyclable material, and organics collection services to all residents and businesses in Town In 2025, the Town requested HF&H to develop a cost-of-service rate model and rate structure based on the level of service received by each customer class. The purpose of this report is to document the analysis and summarize our assumptions, findings, and recommendations.

STUDY PURPOSE
The main purpose of this report is to document that the proposed rates comply with the relevant laws in California for setting solid waste rates. Another key purpose is to ensure that the rates generate sufficient revenue to fund the solid waste, recyclable material, and organics collection, processing, and disposal activities over the five-year planning period (2026-2030) operating and capital costs as well as to maintain adequate reserves.

BILLING PROCEDURES AND CURRENT RATES
Residents are billed for weekly collection of solid waste, recyclable material, and organics carts in two ways: 1) a flat $380.16 annual charge on the tax roll (which equates to $31.68/month); and, 2) a monthly charge, billed quarterly by Recology, based on the size of solid waste container placed for collection (20-gallon, 32-gallon, etc.) and the frequency of service.

Commercial customers are also billed quarterly by Recology, based on the size of solid waste and organics material containers placed for collection (1 cubic yard bin, 2 cubic yard bin, etc.) and how frequently it is collected (1x per week, 2x per week, etc.).

The current rates are summarized in Figure 1-1 through Figure 1-3. The amount billed on the tax roll for residential customers is an annual lump sum amount of $380.16. For analysis of monthly rates, it is reflected in Figure 1-1 as a $31.68 per month rate.

Figure 1-1. – Current Monthly Residential Rates
Residential Billed Billed Total
Monthly Rates by Recology on Tax Roll Charge
Solid Waste Subscription
20-Gallon Cart $31.95 $31.68 $63.63
32-Gallon Cart $39.01 $31.68 $70.69
64-Gallon Cart $60.61 $31.68 $92.29
96-Gallon Cart $88.43 $31.68 $120.11
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Figure 1-2. Current Monthly Commercial Solid Waste Rates Figure 1-3. Current Commercial Organics Rates

LEGAL REQUIREMENTS
The Town is responsible for setting rates in compliance with California law. Voters passed Proposition 218 in November 1996, which added article XIII D to the California constitution.

Article XIII D section 6(b)(1-5) has five substantive requirements that must be met:

1. Revenue from rates must not exceed the cost of providing service.

2. Revenue from rates must be used for providing service.

3. Fees and charges imposed must be proportional to the cost of providing the service attributable to the parcel.

Container Size 1/week 2/week 3/week 4/week 5/week 6/week 32 Gallons $57.99 $86.89 $115.79 $144.69 $173.59 $202.49 64 Gallons $73.03 $116.98 $160.93 $204.87 $248.82 $292.76 96 Gallons $87.33 $145.58 $203.83 $262.07 $320.32 $378.57 1 CY $144.11 $269.35 $394.60 $519.85 $645.10 $770.35
2 CY $271.98 $525.11 $778.24 $1,031.36 $1,284.49 $1,537.61 3 CY $442.17 $865.48 $1,288.78 $1,712.09 $2,135.40 $2,558.71 6 CY $1,121.94 $2,225.02 $3,328.10 $4,431.18 $5,534.27 $6,637.35 Additional Container
32 Gallons $13.90 $42.80 $71.70 $100.60 $129.50 $158.40 64 Gallons $29.03 $72.98 $116.92 $160.87 $204.82 $248.76 96 Gallons $43.39 $101.63 $159.88 $218.13 $276.37 $334.62 1 CY $106.31 $231.56 $356.81 $482.05 $607.30 $732.55
2 CY $235.29 $488.42 $741.55 $994.67 $1,247.80 $1,500.92 3 CY $406.58 $829.89 $1,253.20 $1,676.51 $2,099.82 $2,523.13 6 CY $1,090.78 $2,193.86 $3,296.94 $4,400.02 $5,503.11 $6,606.19 Frequency
Container Size 1/week 2/week 3/week 4/week 5/week 6/week 32 Gallons $28.99 $43.44 $57.90 $72.35 $86.80 $101.25
64 Gallons $36.52 $58.49 $80.46 $102.44 $124.41 $146.38 96 Gallons $43.67 $72.79 $101.91 $131.04 $160.16 $189.28 1 CY $72.05 $134.68 $197.30 $259.93 $322.55 $385.17
2 CY $135.99 $262.55 $389.12 $515.68 $642.24 $768.81
3 CY $221.08 $432.74 $644.39 $856.05 $1,067.70 $1,279.36 6 CY $560.97 $1,112.51 $1,664.05 $2,215.59 $2,767.13 $3,318.67 Additional Container
32 Gallons $6.95 $21.40 $35.85 $50.30 $64.75 $79.20
64 Gallons $14.52 $36.49 $58.46 $80.44 $102.41 $124.38
96 Gallons $21.69 $50.82 $79.94 $109.06 $138.19 $167.31 1 CY $53.16 $115.78 $178.40 $241.03 $303.65 $366.28
2 CY $117.65 $244.21 $370.77 $497.34 $623.90 $750.46
3 CY $203.29 $414.95 $626.60 $838.25 $1,049.91 $1,261.56 6 CY $545.39 $1,096.93 $1,648.47 $2,200.01 $2,751.55 $3,303.09 Frequency
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4. Fee or charge may not be imposed for a service unless that service is used by, or immediately available to, the owner of the property.

5. No fee or charge may be imposed for general governmental services.

The basis for setting rates that are proportional to the cost of providing service was not prescribed in article XIIID; therefore, the analyst was responsible for meeting the requirements of Sections 6(b) 1-5.

We interpret these requirements to mean that rates must be proportionate to the COS across the range of subscribed service. We further interpret it to mean that the rates for each level of service must correlate with the actual demand that customers place on the collection vehicles and for which the system must be designed to provide the level of service customers require.

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Section 2. Revenue Requirement Projections
To determine whether additional rate revenue is required, projected operating expenses are compared with projected revenue from current rates. Rates are then increased so that projected expenses are covered.

BALANCING ACCOUNT
The franchise agreement with Recology includes an annual revenue reconciliation process where actual revenues billed are compared to Recology’s approved compensation. If there is a positive balancing account, the Town may keep rates flat or increase rates at a lower than necessary level, which draws down the balancing account. Excess revenues are accumulated and tracked by Recology on an annual basis and audited by Rethink Waste. If revenues are less than the approved compensation, the balancing account is reduced. The Town currently has a positive balancing account with Recology at $330,727 (as of December 31, 2024). Yearto-date projections for 2025 indicate that revenues will fall short of Recology’s approved compensation, resulting in a projected balancing account of $167,018 by December 31, 2025, as shown in the bottom row of Figure 2-1. This balancing account is available to keep future rate increases lower than they otherwise would need to be or cover unexpected cost increases that were not known at the time rates were set.

Figure 2-1. Balancing Account Summary (2023 - 2025)

EXPENSE PROJECTIONS
Rates are developed to cover costs for the following projected expenses over the five-year planning period: Recology’s approved collection compensation, including amounts collected for Recology to meet its obligation to pay the Town its franchise fee, as well as tipping fees at the SEC. Projected costs from 2026 through 2030 are summarized in Figure 2-2, Rows 9- 11).

In addition, Figure 2-2 summarizes the current revenue at current rates for the five-year period if rates remained the same. This illustrates the effect on the Town’s balancing account with Recology if rates were not changed during the next five-year planning period. With no 2023 2024 2025
Actual Actual Projected
Total Revenue (after rate adjustments) $3,885,144 $4,110,847 $4,274,475 Expenses
Recology Collection Costs $2,222,343 $2,345,635 $2,418,012 Disposal & Processing Fees $1,298,144 $1,522,314 $1,628,923 Agency Franchise & Other Fees $353,195 $373,680 $391,248 l Expenses $3,873,682 $4,241,629 $4,438,183
Surplus / (Shortfall) After Rate Increase $9,871 ($138,838) ($163,709) Balancing Acct. (Proj. Year-End Balance) $469,565 $330,727 $167,018 ATTACHMENT 1
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rate increases, the balancing account is projected to be depleted by year-end 2026. A summary of expense projections follows Figure 2-2. The next subsection of this report discusses the necessary annual revenue increases to bridge the revenue shortfall, as compared to existing revenues.

Figure 2-2. Projected Expenses and Revenue at Current Rates (No Rate Increases) Recology's annual collection compensation (Row 9 in Figure 2-2) was calculated in accordance with the Franchise Agreement with the Town. Recology’s 2026 compensation calculation has been reviewed and is currently being audited by Rethink Waste. A summary of Recology’s 2026 compensation by customer class is provided in Figure 2-3 and further details are provided in Figure 2-4 through Figure 2-6. Costs are projected to increase by

4.0% per year for financial planning purposes, which is in line with the historical trend.

Franchise fees are levied by the Town on Recology pursuant to the Franchise Agreement.

The franchise fee is an obligation of Recology utilities paid out of the total amount imposed on ratepayers. (Row 11 in Figure 2-2). Franchise fees are calculated as four percent of net revenues collected by Recology. The fees account for Town staff time and various legal, financial, and printing services to cover franchise related programs and governance.

Tipping (disposal and processing) fees at the Shoreway Environmental Center (SEC) (Row 10 in Figure 2-2). 2026 tipping fees are estimated by Rethink Waste based on projected volumes collected within the Town and the approved per-ton tip charges by material type. A summary of Rethink Waste’s 2026 projections, by customer class, is provided in Figure 2-7.

Costs are projected to increase by 5.0% per year for financial planning purposes, based on discussions with Rethink Waste.

Figure 2-3 reports a summary of the three cost components of the revenue requirement.

Note, franchise fees in this figure account for an increase to revenues, as an increase in revenues collected leads to an increase in fees paid. Thus, the franchise fees values refer to Figure 2-8, which includes revenue increases.
2025 05 2026 2027 2028 2029 2030
Estimated Projected
0 Projected
08 Projected
09 Projected
030
Projected
1 $4,110,847 $4,274,475 $4,514,466 $4,779,513 $5,021,506 $5,267,730 2 Base Charge Revenue - Recology (res) $2,620,212 $2,620,212 $2,620,212 $2,620,212 $2,620,212 $2,620,212 3 Base Charge Revenue - Tax Roll (res) $1,452,703 $1,484,670 $1,484,670 $1,484,670 $1,484,670 $1,484,670 4 Subtotal - Residential Revenue $4,072,916 $4,104,882 $4,104,882 $4,104,882 $4,104,882 $4,104,882 5 Base Charge Revenue - Recology (comm) $104,535 $104,535 $104,535 $104,535 $104,535 $104,535 6 Subtotal - Base Charge Revenue $4,177,451 $4,209,417 $4,209,417 $4,209,417 $4,209,417 $4,209,417 7 Sch Q "Extras" Rev. (i.e., backyard srvc) 97,024 $97,024 $97,024 $97,024 $97,024 $97,024 8 Total Revenue (after rate adjustments) $4,274,475 $4,306,441 $4,306,441 $4,306,441 $4,306,441 $4,306,441 Expenses
9 Recology Collection Costs (incl. Schedule Q) $2,418,012 $2,461,783 $2,558,241 $2,658,558 $2,762,888 $2,871,390 10 Disposal & Processing Fees $1,628,923 $1,710,369 $1,795,887 $1,885,682 $1,979,966 $2,078,964 11 Agency Franchise & Other Fees $391,248 $394,242 $394,242 $394,242 $394,242 $394,242 12 Total Expenses $4,438,183 $4,566,394 $4,748,371 $4,938,482 $5,137,096 $5,344,597 13 Surplus / (Shortfall) After Rate Increase ($163,709) ($259,953) ($441,930) ($632,041) ($830,655) ($1,038,156) 14 Balancing Acct. (Proj. Year-End Balance) $167,018 ($92,935) ($534,865) ($1,166,906) ($1,997,560) ($3,035,716)

COLLECTION COST PROJECTION
Estimated Revenue (Before Rate Increase)
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Figure 2-3. Summary of 2026 Revenue Requirement Compensation Rounding due to stored values may exist
1 Allocated based on percentage share of total number of accounts 2 Source: Figure 2-4 3 Source: Figure 2-5 4 Source: Figure 2-6 5 Revenue billed by Recology for non-base services which does not come from base rates. 6 Source: Figure 2-7 7 Source: Figure 2-8 Customer Direct Town
Class Costs Facilities¹ 2026 Total
Collection Compensation - Base Services
Residential $2,333,028 2 $13,489 $2,346,517
Commercial $66,679 3 $35 $66,714
Total $2,399,707 $13,524 4 $2,413,231
Plus: Recology Sch Q rate revenue for extra services5 $48,552 $2,461,783
Disposal & Processing Fees6
Residential $1,591,065 $75,834 $1,666,899
Commercial $43,273 $197 $43,470
Total $1,634,338 $76,031 $1,710,369
Agency Franchise & Other Fees7
Residential $402,288 $0 $402,288
Commercial $11,437 $0 $11,437
Total $413,725 $0 $413,725
Total Recology Compensation by Customer Class
Residential $4,326,382 $89,322 $4,415,704
Commercial $121,389 $232 $121,621
Total $4,447,771 $89,555 $4,537,326
Plus: Recology Sch Q rate revenue for extra services 48,552 Total Revenue Requirement $4,585,878
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Figure 2-4. Recology’s 2026 Draft Compensation – Residential Services Figure 2-5. Recology’s 2026 Draft Compensation – Commercial Services Targeted Two On-Call
S g e
Family
Solid Recyclable Organic Collection Dwelling
Cost Category Waste Materials Materials Events Total
Annual Cost of Operations
Total Direct Labor Related-Costs $404,645 $359,856 $350,002 $59,904 $1,174,407 Direct Fuel Costs $37,242 $39,241 $39,337 $2,369 $118,189 Other Direct Costs $36,066 $38,002 $38,570 $2,646 $115,284 Depreciation for Collection Equipment $43,818 $42,982 $53,009 $2,033 $141,842 Total Allocated Indirect Costs excluding Depreciation and Interest $163,710 $171,538 $186,485 $4,023 $525,756 Total Allocated Indirect Depreciation Costs (Form 9) $1,207 $1,297 $1,564 $24 $4,092 Annual Implementation Cost Amortization (Form A) $0 $0 $0 $0 $0 Total Annual Cost of Operations $686,688 $652,916 $668,967 $70,999 $2,079,570 Profit (insert Operating Ratio below) $72,083 $68,538 $70,223 $7,453 $218,297

0.905
Total Proposed Costs before Pass-Through Cost Allocation $758,771 $721,454 $739,190 $78,452 $2,297,867 Total Contractor Pass-Through Costs $10,873 $10,664 $13,145 $479 $35,161 TOTAL BASE CONTRACTOR'S COMPENSATION $769,644 $732,118 $752,335 $78,931 $2,333,028 Targeted Two On-Call Multi Family &
Solid Recyclable Organic Drop Collection Commercial
Cost Category Waste Materials Materials Box Events Total Annual Cost of Operations
Total Direct Labor Related-Costs $11,602 $1,422 $9,010 $0 $9,411 $31,445 Direct Fuel Costs $1,160 $130 $1,152 $0 $879 $3,321
Other Direct Costs $1,182 $154 $1,025 $0 $845 $3,206
Depreciation for Collection Equipment $610 $238 $1,691 $0 $656 $3,195 Total Allocated Indirect Costs excluding Depreciation and Interest $1,879 $1,289 $12,933 $0 $1,654 $17,755 Total Allocated Indirect Depreciation Costs (Form 9) $16 $7 $139 $0 $10 $172 Annual Implementation Cost Amortization (Form A) $0 $0 $0 $0 $0 $0 Total Annual Cost of Operations $16,449 $3,240 $25,950 $0 $13,455 $59,094 Profit (insert Operating Ratio below) $1,727 $340 $2,724 $0 $1,412 $6,203

0.905
Total Proposed Costs before Pass-Through Cost Allocation $18,176 $3,580 $28,674 $0 $14,867 $65,297 Total Contractor Pass-Through Costs $270 $91 $721 $0 $300 $1,382 TOTAL BASE CONTRACTOR'S COMPENSATION $18,446 $3,671 $29,395 $0 $15,167 $66,679 ATTACHMENT 1
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Figure 2-6. Recology’s 2026 Draft Compensation – Agency Facilities Figure 2-7. Summary of Tipping Fees (2025-2030)
Source: 2026 tip fee and tonnage projections reflect tonnages reported in the 2024 Recology Annual Report.

Subsequent tip fees were projected by HF&H based on Rethink Waste input.

Cart & Bin Cart & Bin Cart & Bin Venues Agency
Solid Recyclable Organic Drop and Facilities
Cost Category Waste Materials Materials Box Events Total Annual Cost of Operations
Total Direct Labor Related-Costs $115 $389 $711 $3,038 $139 $4,392 Direct Fuel Costs $12 $40 $73 $313 $15 $453
Other Direct Costs $16 $56 $102 $435 $21 $630
Depreciation for Collection Equipment $16 $78 $169 $778 $28 $1,069 Total Allocated Indirect Costs excluding Depreciation and Interest $77 $314 $693 $3,543 $805 $5,432 Total Allocated Indirect Depreciation Costs (Form 9) $1 $3 $6 $28 $1 $39 Annual Implementation Cost Amortization (Form A) $0 $0 $0 $0 $0 $0 Total Annual Cost of Operations $237 $880 $1,754 $8,135 $1,009 $12,015 Profit (insert Operating Ratio below) $25 $92 $184 $854 $106 $1,261

0.905
Total Proposed Costs before Pass-Through Cost Allocation $262 $972 $1,938 $8,989 $1,115 $13,276 Total Contractor Pass-Through Costs $4 $18 $39 $180 $7 $248 TOTAL BASE CONTRACTOR'S COMPENSATION $266 $990 $1,977 $9,169 $1,122 $13,524 Projected
Tip Fee Expense Projections 2025 2026 2027 2028 2029 2030 Per-Ton Tip Fees
Solid Waste $176.55 $185.38 $194.65 $204.38 $214.60 $225.33 Organics $190.46 $199.98 $209.98 $220.48 $231.51 $243.08 Agency C&D - Self-haul $186.00 $195.30 $205.07 $215.32 $226.08 $237.39 Tons
Residential
Solid Waste 2,653 2,653 2,653 2,653 2,653 2,653
Organics 5,497 5,497 5,497 5,497 5,497 5,497
Total Residential 8,150 8,150 8,150 8,150 8,150 8,150
Commercial
Solid Waste 165 165 165 165 165 165
Organics 63 63 63 63 63 63
Total Commercial 228 228 228 228 228 228
Agency
Solid Waste 227 227 227 227 227 227
Organics 168 168 168 168 168 168
Agency C&D - Self-haul 2 2 2 2 2 2
Total Agency 397 397 397 397 397 397
Total Tip Fee Expenses
Residential
Solid Waste $468,334 $491,751 $516,338 $542,155 $569,263 $597,726 Organics $1,046,966 $1,099,315 $1,154,280 $1,211,994 $1,272,594 $1,336,224 Total Residential $1,515,300 $1,591,065 $1,670,619 $1,754,150 $1,841,857 $1,933,950 Commercial
Solid Waste $29,201 $30,661 $32,195 $33,804 $35,494 $37,269 Organics $12,011 $12,611 $13,242 $13,904 $14,599 $15,329 Total Commercial $41,212 $43,273 $45,436 $47,708 $50,094 $52,598 Agency
Solid Waste - Coll Route $40,096 $42,101 $44,206 $46,416 $48,737 $51,174 Organics - Coll Route $32,019 $33,620 $35,301 $37,066 $38,919 $40,865 Agency C&D - Self-haul $296 $310 $326 $342 $359 $377
Total Agency $72,410 $76,031 $79,832 $83,824 $88,015 $92,416 Grand Total Tip Fees $1,628,923 $1,710,369 $1,795,887 $1,885,682 $1,979,966 $2,078,964 ATTACHMENT 1
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2026 Solid Waste Rate Study
Section 2. Revenue Requirement Projections
HF&H Consultants, LLC | July 31, 2025 | Page 15 of 34

REVENUE INCREASES
Working with staff, proposed revenue increases were derived to cover the cost of providing service to property within the Town (Rows 2, 3, and 5 of Figure 2-8). Figure 2-8 summarizes the projected revenue from proposed rate increases, annual revenue requirements, and the projected year-end balancing account balance by 2026. The revenue projections assume the full cost-of-service rate increases are implemented to meet the current year revenue requirement.

The revenue increase strategy was to utilize a small portion of the balancing account each year to reduce the necessary rate increase (see Row 13 of Figure 2-8). The portion of the balancing account used to keep rate increases lower than necessary, was reduced each year until 2028 when revenues would slightly exceed expenses to keep from drawing the balancing account any lower. This strategy allows the Town to avoid a rate spike necessary to meet the Town’s updated cost of service, while also keeping a reasonable balancing account balance in case of higher than expected cost increases in the future. The proposed annual revenue increases are shown in Row 6 of Figure 2-8. These annual revenue increases can be achieved by increasing Recology’s base rates by the percentages shown on Rows 2, 3, and 5).

The 2026 base revenue increase, on Row 6, of 5.7% is a net increase; whereas, residential revenue and commercial revenue will increase by specific factors, as rates are being restructured to align with the cost to provide service. The COS calculations are presented in the next section of this report.

In years when rates are not being restructured to align with the cost of service (all years except 2026), residential and commercial rates would normally be increased by the percentages shown above. For example, the 6.0% revenue increase for 2027 (see Row 6 of Figure 2-8) would be achieved with a 6.0% across-the-board increase to all commercial rates and a 6.0% increase to residential rates. This same calculation is done for 2028-2030 to assure the total residential and commercial rate revenues increase by the same percentage change, so that neither customer class is subsidizing the other. the current rates at the various subscription levels.

Figure 2-8. Projected Expenses and Revenue at Proposed Revenue Increases 2025
Estimated
2026
Projected
2027
Projected
2028
Projected
2029
Projected
2030
Projected
2026
vs
2025
%
2027
vs
2026
%
2028
vs
2027
%
2029
vs
2028
%
2030
vs
2029
%
1 $4,110,847 $4,274,475 $4,514,466 $4,779,513 $5,021,506 $5,267,730 2 Base Charge Revenue - Recology (res) $2,620,212 $2,777,425 $2,944,071 $3,091,274 $3,245,838 $3,408,130 6.0% 6.0% 5.0% 5.0% 5.0% 3 Base Charge Revenue - Tax Roll (res) $1,452,703 $1,529,210 $1,620,962 $1,709,879 $1,795,373 $1,885,142 6.0% 6.0% 5.0% 5.0% 5.0% 4 Subtotal - Residential Revenue $4,072,916 $4,306,635 $4,565,033 $4,801,153 $5,041,211 $5,293,272 5.7% 6.0% 5.2% 5.0% 5.0% 5 Base Charge Revenue - Recology (comm) $104,535 $110,807 $117,455 $123,328 $129,495 $135,969 6.0% 6.0% 5.0% 5.0% 5.0% 6 Subtotal - Base Charge Revenue $4,177,451 $4,417,442 $4,682,489 $4,924,482 $5,170,706 $5,429,241 5.7% 6.0% 5.2% 5.0% 5.0% 7 Sch Q "Extras" Rev. (i.e., backyard srvc) 97,024 $97,024 $97,024 $97,024 $97,024 $97,024 0.0% 0.0% 0.0% 0.0% 0.0% 8 Total Revenue (after rate adjustments) $4,274,475 $4,514,466 $4,779,513 $5,021,506 $5,267,730 $5,526,265 5.6% 5.9% 5.1% 4.9% 4.9% Expenses
9 Recology Collection Costs (incl. Schedule Q) $2,418,012 $2,461,783 $2,558,241 $2,658,558 $2,762,888 $2,871,390 1.8% 4.0% 4.0% 4.0% 4.0% 10 Disposal & Processing Fees $1,628,923 $1,710,369 $1,795,887 $1,885,682 $1,979,966 $2,078,964 5.0% 5.0% 5.0% 5.0% 5.0% 11 Agency Franchise & Other Fees $391,248 $413,725 $438,549 $461,213 $484,274 $508,488 5.7% 6.0% 5.2% 5.0% 5.0% 12 Total Expenses $4,438,183 $4,585,877 $4,792,678 $5,005,453 $5,227,128 $5,458,842 3.3% 4.5% 4.4% 4.4% 4.4% 13 Surplus / (Shortfall) After Rate Increase ($163,709) ($71,411) ($13,165) $16,053 $40,602 $67,423 14 Balancing Acct. (Proj. Year-End Balance) $167,018 $95,607 $82,442 $98,495 $139,097 $206,520

COLLECTION COST PROJECTION
Estimated Revenue (Before Rate Increase)
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Section 3. Cost of Service Analysis
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Section 3. Cost of Service Analysis

METHODOLOGY
A COS Study determines the unit cost of the services provided to the Town’s solid waste customers. Each customer class is charged the same unit cost for its share of the services that it requires. In this way, the total revenue requirement is split between the fixed service charges and the volumetric charges; with the volumetric charges further allocated among the customer classes. The customer classes for this study are residential and commercial.

The majority of the Town’s solid waste services are related to meeting customer demands for the solid waste, recycling, and organics collection services.

The collection services vary based on the customer’s subscribed size and type of container (bin vs. cart vs. roll-off) used for the collection of solid waste materials.

The solid waste collection service levels are defined as follows:

1. Residential Customers – Cart customers receive service in a 20- 32-, 64- or 96- gallon cart for solid waste, a 64-gallon cart for recycling, and a 96-gallon cart for organics. Additional carts may be provided, if requested, for an additional fee. The carts are typically collected by an automated side loader truck. The complete costs of the collection, transportation, and disposal system include three main categories: 1) Recology’s approved collection expenses; 2) processing and disposal costs at Rethink Waste’s SEC; and, 3) Town franchise fees. The franchises cover the Town’s overhead costs to manage the contract with Recology, participate as a member of Rethink Waste, provide community outreach and education, etc.

2. Commercial Customers – Commercial customers typically receive service in bins (ranging from 1 – 6 cubic yards) as they produce more materials than a typical household. The bins are collected by a front-loader truck. Commercial customers can choose their containers size, including carts, and how frequently the container is collected each week (up to 6 times per week). The size and frequency of collection will differ between container type (solid waste, recycling, organics) and by customer. 2026 COST-OF-SERVICE
Figure 3-1 summarizes the net revenue requirement by customer class. As shown in Figure 3-1, the Town’s tax roll billing and Recology’s quarterly billing based on service levels is not the only source of revenue to cover the $4,585,877 cost-of-service for 2026 (Row 12, Figure 2-8). With the addition of revenues from backyard service charges kept by the Town, use of the balancing account, and factoring in for Recology disincentives, rates for 2026 must generate $4,417,442.

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Section 3. Cost of Service Analysis
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Figure 3-1. 2022 Net Revenue Requirement by Customer Class Rounding due to stored values may exist.
¹Cost of providing backyard service is included in Recology’s direct costs. Residents with backyard collection service are billed directly. This revenue is removed to avoid double counting. ²Allocated to each customer class based on their respective share of the Recology collection costs. ³Commercial customer class includes both solid waste and organics.

The customer class allocations and the expenses attributable to customer accounts are compared with the estimated revenue from current rates in Figure 3-2. The net 6.0% increase in revenue is not shared equally between residential services, commercial solid waste, and commercial organics.

Customer Direct Town
Class Costs Facilities¹ 2026 Total
Recology Compensation
Collection Costs
Residential $2,333,028 $13,489 $2,346,517
Commercial $66,679 $35 $66,714
Disposal & Processing Fees
Residential $1,591,065 $75,834 $1,666,899
Commercial $43,273 $197 $43,470
Franchise Fees
Residential $402,288 $0 $402,288
Commercial $11,437 $0 $11,437
Total Base Services $4,447,771 $89,555 $4,537,326
Plus: Recology Sch Q rate revenue for extra services 48,552 Total Compensation $4,585,878
Recology Compensation by customer Class
Residential $4,326,382 $89,322 $4,415,704
Commercial $121,389 $232 $121,621
$4,447,771 $89,555 $4,537,326
Plus: Recology Sch Q rate revenue for extra services 48,552 Gross Revenue Requirement (Figure 2-8, row 12) $4,585,878 Net Revenue Requirement by Customer Class
Residential Commercial Total
Gross Rev. Requirement $4,415,704 $121,621 $4,537,326
Less: Backyard Svc Rev.¹ ($46,702) $0 ($46,702)
Less: Use of Balancing Acct.² ($69,503) ($1,908) ($71,411) Less: Recology disincentives ($1,770) $0 ($1,770)
Net Revenue from Rates $4,297,729 $119,713 $4,417,442
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Section 3. Cost of Service Analysis
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Figure 3-2. Current Rate Revenue Compared to Cost of Service Rates need to be designed to generate each class’s share of the revenue requirement. Section 4 provides a recommended rate structure to meet the COS.

Revenue at 2026 Difference
Customer Class Current Rates Cost-of-Service $ %
Residential $4,062,343 $4,297,729 $235,386 5.8%
Commercial
Solid Waste/Recycling $92,302 $90,624 ($1,678) -1.8%
Organics $12,233 $29,089 $16,856 137.8%
Commercial Total $104,535 $119,713 $15,178 14.5%
Grand Total $4,166,878 $4,417,442 $250,565 6.0%
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Section 4. Rate Design – 2026 Cost of Service
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Section 4. Rate Design – 2026 Cost of Service
This section discusses the design of volumetric charges for the various sizes of carts, bins, and roll-off customers, as well as the fixed service charges for each customer class. All cost categories were evaluated to determine if the cost would fluctuate (variable) or remain constant (fixed) and if there were variances in the subscribed level of service and type of container. The following methodology was used to calculate the cost-of-service by service level and customer class for all solid waste, recycling, and service level organics.

VOLUMETRIC (VARIABLE) COLLECTION COSTS
Volumetric (variable) collection costs are proportional costs based on the subscribed size and type of container for carts and bins. To properly allocate the variable costs, the various factors identified below were calculated based on existing subscription levels of the Town’s residents and businesses. The variable collection costs exclude transfer and disposal and fixed costs, which are calculated separately.

Full Time Equivalent Route Factors
The subscribed level of service of each customer, in essence, reserves that equivalent volume of space in the collection vehicle. Recology must route its drivers and vehicles in order to ensure the collection trucks on those routes have sufficient capacity to accept the amount of material set out for collection by the customer. The size of the containers multiplied by the number of containers will determine the amount of truck capacity required. Therefore, a “Full Time Equivalent Route Factor” (FTE Route Factor) was calculated for each container size based on Recology’s actual collection trucks capacity, average route hours, and disposal trip time.

Figure 4-1 lists the FTE Route Factors for Carts and Bins:

Figure 4-1. Full Time Equivalent Route Factors
Equivalent Container Factor – Residential and Commercial An Equivalent Container Factor (ECF) was calculated to determine the variable component of the monthly rates as follows:

Customer Class FTE Route
and Container Size Factor
Residential
20 Gallons 1.00
32 Gallons 1.16
64 Gallons 1.66
96 Gallons 2.15
Commercial
32 Gallons 1.00
64 Gallons 1.00
96 Gallons 1.00
1 CY 1.20
2 CY 1.59
3 CY 1.99
6 CY 2.97
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Section 4. Rate Design – 2026 Cost of Service
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1. An adjusted number of loads for each size of container were calculated assuming 100% of customers subscribed to one size.

2. An adjusted loads cost was determined based on the actual collection costs divided by actual loads multiplied by the adjusted Loads.

3. The ECF was calculated by dividing the adjusted Loads Costs (step 2) by the minimum cost per load.

Figure 4-2 lists the ECF for each customer class:

Figure 4-2. Equivalent Container Factors
Note, the ECF for Residential organics is the same for all customers, as the base level of service provides one 96-gallon container per subscription. Therefore, all residential organics containers are assumed to have an ECF of 1.00. This methodology was also applied to Residential recycling such that all Residential recycling containers are assumed to have an ECF of 1.00, since the base level of service provides one 64-gallon container per subscription.

The ECF for Commercial organics are the same as the ECF for Commercial solid waste above, as these ratios were developed while including both Commercial solid waste containers and Commercial organics container costs.

Equivalent Container Units –Carts and Bins
Equivalent Container Units (ECU) were calculated to properly allocate the variable collection costs, excluding the solid waste transfer, disposal, and processing costs. ECUs were calculated by multiplying the number of containers by size, by the applicable ECF. Current containers in service were provided by Recology’s billing system and operational data. Figure 4-3 shows the calculation of the ECUs for each customer class.

Customer Class Equivalent
and Container Size Container Factor
Residential
20 Gallons 1.00
32 Gallons 1.86
64 Gallons 5.32
96 Gallons 10.34
Commercial
32 Gallons 1.00
64 Gallons 2.00
96 Gallons 3.00
1 CY 7.56
2 CY 20.28
3 CY 37.65
6 CY 115.53
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Section 4. Rate Design – 2026 Cost of Service
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Figure 4-3. Equivalent Container Units
Note: Totals may vary due to rounding.

Variable Route Collection Costs Calculations
Annual variable costs were determined based on the review of Recology’s 2026 draft compensation (which includes the Town franchise fee). These variable costs vary based on the size, type, and number of containers and frequency of service. Costs include items such as labor, equipment operation, and maintenance.

Residential Customers
Figure 4-4A and Figure 4-4B show the calculation of the monthly variable route collection costs per month for residential services.

Figure 4-4A. Solid Waste Variable Route Collection Costs per Month - Residential Customer Class Equivalent Containers in
and Container Size Container Factor Service ECUs
a b c = a x b
Residential
20 Gallons 1.00 554 554
32 Gallons 1.86 1,637 3,050
64 Gallons 5.32 1,170 6,220
96 Gallons 10.34 482 4,982
Total Residential ECUs 14,806
Commercial
32 Gallons 1.00 0 0
64 Gallons 2.00 1 2
96 Gallons 3.00 2 6
1 CY 7.56 8 61
2 CY 20.28 9 183
3 CY 37.65 4 151
6 CY 115.53 4 462
Total Commercial ECUs 864
Variable Route Collection Cost Analysis 20 gallons 32 Gallons 64 Gallons 96 Gallons Annual Variable Costs $753,361 a
Equivalent Container Units (ECUs) 14,806 b
Annual Variable Costs per ECU $50.88 c = a / b
Monthly Variance Cost per ECU $4.24 d = c / 12
Equivalent Container Factor by Container Size e 1.00 1.86 5.32 10.34 Variable Route Cost per Month by Container Size f = d x e $4.24 $7.90 $22.54 $43.83 ATTACHMENT 1
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Section 4. Rate Design – 2026 Cost of Service
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Figure 4-4B. Recycling, Organics Variable Route Collection Costs – Residential Commercial Customers
Figure 4-5 shows the calculation of the monthly variable route collection costs per month for commercial services. Both commercial solid waste and organics variable collection costs were considered in this analysis.

Figure 4-5. Solid Waste, Organics Variable Route Collection Costs – Commercial Note: Annual Variable costs include solid waste, recycling and organics costs for commercial subscriptions.

FIXED COLLECTION COSTS
Fixed collection costs (Fixed Costs) are determined based on Recology’s draft 2026 compensation and are not dependent on the subscribed service volume. Costs include such items as: customer service representatives, billing costs, on-call collection costs, cost to collect for Town facilities, etc. These costs are borne equally by each rate payer, regardless of the level of service. Figure 4-6 shows the calculation of Fixed Costs for carts and bins of various residential material streams and for the commercial collection.

Figure 4-6. Fixed Cart and Bin Collection Costs
Variable Route Collection Cost Analysis Recycling Organics Annual Variable Costs $751,374 $734,436
Equivalent Container Units (ECUs) 3,843 3,843
Annual Variable Costs per ECU $195.52 $191.11
Monthly Variance Cost per ECU $16.29 $15.93
ECF by Container Size 64 gallons 96 gallons
20 gallons 32 Gallons 1.00 1.00
- -
Variable Route Cost per Month by Container Size
64 gallons 96 gallons
$16.29 $15.93
Variable Route Collection Cost Analysis
a Annual Variable Costs $67,903
b Equivalent Container Units (ECUs) 864
c = a / b Annual Variable Costs per ECU $78.61
d = c / 12 Monthly Variance Cost per ECU $6.55
Equivalent Container Factor by Container Size
32 Gallons 64 Gallons 96 Gallons 1 CY 2 CY 3 CY 6 CY
e 1.00 2.00 3.00 7.56 20.28 37.65 115.53
f = d x e Variable Route Cost per Month by Container Size 32 Gallons 64 Gallons 96 Gallons 1 CY 2 CY 3 CY 6 CY
$6.55 $13.12 $19.65 $49.55 $132.85 $246.67 $756.83
Residential Combined
Fixed Collection Cost Analysis MSW Recycling Organics Commercial Total Annual Fixed Costs $258,793 $93,579 $36,781 $6,696 Number of Accounts 3,843 3,843 3,843 12
Fixed Cost per Year $67.34 $24.35 $9.57 $558.00
Fixed Cost per Month $5.61 $2.03 $0.80 $46.50
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Section 4. Rate Design – 2026 Cost of Service
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TIPPING FEES AT THE SHOREWAY ENVIRONMENTAL CENTER
All material is collected by Recology or direct-hauled to Rethink Waste’s SEC for further processing, transfer, and disposal. The projected costs are based on anticipated volume of materials delivered to the facility at the Rethink Waste-approved rates (see Figure 2-7).

The cost per gallon or cubic yard of service is calculated by dividing the projected disposal costs by the number of subscribed gallons or cubic yards. Figure 4-7 and Figure 4-8 summarize the cost per month to dispose of the collected materials at the Shoreway Environmental Center (on a per pull per week basis). The per-gallon tip fee calculated for each material stream is multiplied by the size of the container to determine the overall disposal/processing cost per month by container size.

Figure 4-7. Cart and Bin Tipping Fees – Residential
Figure 4-8. Cart and Bin Tipping Fees – Commercial

COST OF SERVICE
Figure 4-9A and 4-11B summarize the cost to service residential carts, commercial carts, and commercial bins collected one time per week (first container) based on the calculations in Figure 4-4A to Figure 4-8 above. All customers receive at least weekly collection of all three container types: solid waste, recycling, and organics. These figures are for illustrative Residential
Disposal/Processing Cost Analysis MSW Recycling Organics Total Annual Disposal/Processing Costs $491,751 $0 $1,099,315 Total Volume (gallons) 184,616 245,952 451,488
Tip Fees/Gallon/Year $2.66 $0.00 $2.43
Tip Fees/Gallon/Month $0.22 $0.00 $0.20
Disposal/Processing Cost per Month by Container Size
20 Gallons $4.44 N/A N/A
32 Gallons $7.10 N/A N/A
64 Gallons $14.21 $0.00 N/A
96 Gallons $21.31 N/A $19.48
Commercial
Disposal/Processing Cost Analysis MSW Organics
Total Annual Disposal/Processing Costs $29,591 $11,971
Total Volume (gallons) 10,302 2,478
Tip Fees/Gallon/Year $2.87 $4.83
Tip Fees/Gallon/Month $0.24 $0.40
Disposal/Processing Cost per Month by Container Size
32 Gallons $7.66 $12.88
64 Gallons $15.32 $25.77
96 Gallons $22.98 $38.65
1 CY $48.35 $81.32
2 CY $96.70 $162.64
3 CY $145.05 $243.96
6 CY $290.11 $487.93
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Section 4. Rate Design – 2026 Cost of Service
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purposes to document the methodology for calculating the cost-of-service by customer class and container type.

Figure 4-9A. Residential Solid Waste Cost of Service
(Service 1/ Week)
Figure 4-9B. Residential Recycling Cost of Service
(Service 1/Week)
Figure 4-9C. Residential Organics Cost of Service
(Service 1/Week)
Figure 4.10A: Commercial Solid Waste Carts Cost of Service (Service 1x per Week, First Container)
Figure 4.10B: Commercial Solid Waste Bins Cost of Service (Service 1/ Week, First Container)
Residential Cost of Service 20 gallons 32 Gallons 64 Gallons 96 Gallons Variable $4.24 $7.90 $22.54 $43.83
Fixed $5.62 $5.62 $5.62 $5.62
Disposal/Processing $4.44 $7.10 $14.21 $21.31
Cost per Month $14.30 $20.62 $42.36 $70.76
Residential Cost of Service 64 gallons
Variable $16.29
Fixed $2.03
Disposal/Processing $0.00
Cost per Month $18.32
Residential Cost of Service 96 gallons
Variable $15.93
Fixed $0.80
Disposal/Processing $19.48
Cost per Month $36.20
Commercial MSW COS 32 Gallons 64 Gallons 96 Gallons
1st container collection
Variable $6.55 $13.12 $19.65
Fixed $46.50 $46.50 $46.50
Disposal/Processing $7.66 $15.32 $22.98
Cost per Month $60.71 $74.94 $89.13
Commercial MSW COS 1 CY 2 CY 3 CY 6 CY
1st container collection
Variable $49.55 $132.85 $246.67 $756.83
Fixed $46.50 $46.50 $46.50 $46.50
Disposal/Processing $48.35 $96.70 $145.05 $290.11
Cost per Month $144.40 $276.06 $438.22 $1,093.44
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Figure 4.11A: Commercial Organics Carts Cost of Service (Service 1/ Week, First Container)
Figure 4.11B: Commercial Organics Bins Cost of Service
(Service 1/ Week, First Container)

MULTIPLE COLLECTIONS PER WEEK
A rate for service that is provided to the same customer multiple times per week has the following components:
• First Service Day during a week - Base rate, which includes the variable, fixed, and disposal/processing components.
• Next Service Day during a week – Variable rate component, disposal/processing rate component, plus a frequency surcharge. The frequency surcharge is the additional cost (based on the driver’s hourly compensation and additional route time) for the driver to return to the area another day of the week, which results in less efficient routes.

Figure 4-12 is an example of the calculation of the COS rate for a 1-yard bin of solid waste serviced 2 times per week. The fixed portion is removed for each additional service day of service.

Figure 4-12. Example of Monthly Rate Calculation
(1 Cubic Yard Bin Collected 2/Week)
This calculation was done for each container type (carts and bins) and size.

Commercial Organics COS 32 Gallons 64 Gallons 96 Gallons 1st container collection
Variable $7.56 $20.28 $37.65
Fixed $46.50 $46.50 $46.50
Disposal/Processing $12.88 $25.76 $38.65
Cost per Month $66.95 $92.54 $122.80
Commercial Organics COS 1 CY 2 CY 3 CY 6 CY
1st container collection
Variable $49.55 $132.85 $246.67 $756.83
Fixed $46.50 $46.50 $46.50 $46.50
Disposal/Processing $81.32 $162.64 $243.96 $487.92
Cost per Month $177.37 $342.00 $537.13 $1,291.26
Service Amount
1st container collection (1st pick-up) $144.40
2nd pick-up
Variable $49.55
Disposal/Processing $48.35
Frequency Surcharge $22.99
$120.89
Total Bill - 1 CY Bin, Collected 2x per week $265.29
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Section 4. Rate Design – 2026 Cost of Service
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ADDITIONAL SOLID WASTE CONTAINERS
There are occasions, due to service demands, where a customer may have more than one solid waste container. A rate for the additional container includes the disposal component, the variable component, and only a portion of the fixed container component. The rate for an additional container at a customer’s property should not include those fixed costs which they have already paid for in the first container. The only portion of fixed costs that are included in the rate for an additional container is the cost of the container (i.e., depreciation) itself. Figure 4-13 shows a calculation for an additional 96-gallon commercial solid waste cart serviced one time per week of $43.15 per month, which is lower than the cost of the first container ($89.13 per month, see Figure 4-13).

Figure 4-13. Calculation of Monthly Rate – Multiple Containers (Commercial Customer Subscribed to Two 96-gallon Solid Waste Containers) This calculation was done for each container type (carts and bins) and size.

TOTAL COST/RATE BY CUSTOMER CLASS AND SERVICE LEVEL - 1ST

CONTAINER
Residential
Figure 4-14 summarizes the monthly costs for Recology to provide weekly solid waste, recyclable material, and organics collection, processing, and disposal services using the COS values determined in Figure 4-9A, Figure 4-9B, and Figure 4-9C. The costs are broken down by container type for illustrative purposes; however, customers are billed the total monthly rate based on the size of their solid waste container. Figure 4-14 also reflects the fact that a portion of each customer’s rate for their first container is billed annually on the tax roll ($402.24 per year = $33.52 per month). The remaining costs are included in the monthly rate billed quarterly by Recology.

Figure 4-14. Residential Cost-of-Service (2026) and Monthly Rates Service Amount
1st container collection $89.13
2nd container collection
Variable $19.65
Disposal/Processing $22.98
Depreciation of additional container $0.52
$43.15
Toal Bill - 2 96-gallon carts, collected 1x per week $132.28 Size of Residential Solid Waste Cart 20 gallons 32 Gallons 64 Gallons 96 Gallons Solid Waste $14.30 $20.62 $42.36 $70.76
Recycling $18.32 $18.32 $18.32 $18.32
Organics $36.20 $36.20 $36.20 $36.20
Total $68.82 $75.15 $96.89 $125.28
(Less) Tax Roll Billing ($33.52) ($33.52) ($33.52) ($33.52) Monthly Rate billed by Recology $35.30 $41.63 $63.37 $91.76 ATTACHMENT 1
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Commercial
Figure 4-15 summarizes the monthly costs for Recology to provide solid waste and recyclable material collection services, which is billed quarterly by Recology and based on each commercial customer’s specific number of solid waste containers, the size of container, and frequency of collection. Recycling collection is provided at no additional charge. The cost to provide recycling services is included in the solid waste rates. Recology bills customers on a monthly basis.

Figure 4-15. Commercial Solid Waste Cost-of-Service (2026) and Monthly Rates Figure 4-16 summarizes the monthly costs for Recology to provide organics collection services, which are billed quarterly by Recology and based on each commercial customer’s specific number of containers, the size of container, and frequency of collection. Rates reflect the removal of the existing commercial organics discount.

Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $60.71 $88.71 $116.71 $144.72 $172.72 $200.72 64 Gallons $74.94 $117.17 $159.40 $201.63 $243.86 $286.08 96 Gallons $89.13 $145.55 $201.98 $258.40 $314.82 $371.25 1 CY $144.40 $265.29 $386.18 $507.07 $627.95 $748.84
2 CY $276.06 $528.60 $781.14 $1,033.68 $1,286.23 $1,538.77 3 CY $438.22 $852.93 $1,267.64 $1,682.35 $2,097.05 $2,511.76 6 CY $1,093.44 $2,163.37 $3,233.29 $4,303.22 $5,373.14 $6,443.07 Additional Container
32 Gallons $14.59 $42.60 $70.60 $98.60 $126.60 $154.60
64 Gallons $28.89 $71.12 $113.35 $155.58 $197.81 $240.03 96 Gallons $43.15 $99.57 $155.99 $212.42 $268.84 $325.26 1 CY $102.49 $223.37 $344.26 $465.15 $586.04 $706.93
2 CY $234.81 $487.35 $739.89 $992.43 $1,244.98 $1,497.52 3 CY $397.56 $812.26 $1,226.97 $1,641.68 $2,056.39 $2,471.09 6 CY $1,055.27 $2,125.20 $3,195.12 $4,265.05 $5,334.98 $6,404.90 Frequency
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Section 4. Rate Design – 2026 Cost of Service
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Figure 4-16. Commercial Organics Cost-of-Service (2026) and Monthly Rates Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $65.93 $99.16 $132.38 $165.61 $198.83 $232.06 64 Gallons $85.38 $138.06 $190.73 $243.41 $296.08 $348.76 96 Gallons $104.80 $176.89 $248.98 $321.08 $393.17 $465.26 1 CY $177.37 $331.23 $485.09 $638.95 $792.80 $946.66
2 CY $342.00 $660.48 $978.96 $1,297.44 $1,615.92 $1,934.41 3 CY $537.13 $1,050.75 $1,564.37 $2,077.98 $2,591.60 $3,105.22 6 CY $1,291.26 $2,559.00 $3,826.75 $5,094.49 $6,362.24 $7,629.99 Additional Container
32 Gallons $19.82 $53.04 $86.27 $119.49 $152.72 $185.94 64 Gallons $39.33 $92.01 $144.68 $197.36 $250.04 $302.71 96 Gallons $58.82 $130.91 $203.00 $275.09 $347.19 $419.28 1 CY $135.46 $289.31 $443.17 $597.03 $750.89 $904.74
2 CY $300.75 $619.23 $937.71 $1,256.19 $1,574.67 $1,893.16 3 CY $496.47 $1,010.08 $1,523.70 $2,037.32 $2,550.94 $3,064.55 6 CY $1,253.09 $2,520.84 $3,788.58 $5,056.33 $6,324.07 $7,591.82 Frequency
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Section 5. Proposed Rates
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Section 5. Proposed Rates
This section lists all proposed residential and commercial rates for FY 2026-2030, resulting from this COS study.

Figure 5-1 summarizes the proposed monthly rates for residential customers based on applying the revenue increases to the cost of service rates calculated in Section 4. Annual revenue increases are shown in Figure 2-8.

Figure 5-1. Current and Proposed Monthly Residential Rates Figure 5-2 through Figure 5-6 summarize the proposed five-year schedule of commercial solid waste monthly rates. Rates for 2027-2030 were calculated by applying revenue increases to the 2026 rates calculated in Figure 4-16.

Figure 5-2. Commercial Solid Waste and Recycling Cost-of-Service (2026) and Monthly Rates
Residential Current 2026 2026 2027 2028 2029 2030
Monthly Rates Rates Rates Change Rates Rates Rates Rates Annual % Increase: varies 6.0% 5.0% 5.0% 5.0%
Flat fee per Parcel $31.68 $33.52 $1.84 $35.53 $37.31 $39.18 $41.14 Service Level
20-Gallon Cart $31.95 $35.30 $3.35 $37.42 $39.29 $41.25 $43.31 32-Gallon Cart $39.01 $41.62 $2.61 $44.12 $46.33 $48.65 $51.08 64-Gallon Cart $60.61 $63.36 $2.75 $67.17 $70.53 $74.06 $77.76 96-Gallon Cart $88.43 $91.76 $3.33 $97.26 $102.12 $107.23 $112.59 Extra Organics Cart $27.04 $27.04 $0.00 $27.04 $27.04 $27.04 $27.04 PROPOSED Monthly Commercial Solid Waste Rates (eff. 1/1/2026) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $60.71 $88.71 $116.71 $144.72 $172.72 $200.72 64 Gallons $74.94 $117.17 $159.40 $201.63 $243.86 $286.08 96 Gallons $89.13 $145.55 $201.98 $258.40 $314.82 $371.25 1 CY $144.40 $265.29 $386.18 $507.07 $627.95 $748.84
2 CY $276.06 $528.60 $781.14 $1,033.68 $1,286.23 $1,538.77 3 CY $438.22 $852.93 $1,267.64 $1,682.35 $2,097.05 $2,511.76 6 CY $1,093.44 $2,163.37 $3,233.29 $4,303.22 $5,373.14 $6,443.07 Additional Container
32 Gallons $14.59 $42.60 $70.60 $98.60 $126.60 $154.60
64 Gallons $28.89 $71.12 $113.35 $155.58 $197.81 $240.03 96 Gallons $43.15 $99.57 $155.99 $212.42 $268.84 $325.26 1 CY $102.49 $223.37 $344.26 $465.15 $586.04 $706.93
2 CY $234.81 $487.35 $739.89 $992.43 $1,244.98 $1,497.52 3 CY $397.56 $812.26 $1,226.97 $1,641.68 $2,056.39 $2,471.09 6 CY $1,055.27 $2,125.20 $3,195.12 $4,265.05 $5,334.98 $6,404.90 Frequency
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Figure 5-3. Commercial Solid Waste and Recycling Cost-of-Service (2027) and Monthly Rates
Figure 5-4. Commercial Solid Waste and Recycling Cost-of-Service (2028) and Monthly Rates
PROPOSED Monthly Commercial Solid Waste Rates (eff. 1/1/2027) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $64.35 $94.03 $123.72 $153.40 $183.08 $212.76 64 Gallons $79.43 $124.20 $168.96 $213.72 $258.49 $303.25 96 Gallons $94.48 $154.29 $214.10 $273.91 $333.71 $393.52 1 CY $153.07 $281.21 $409.35 $537.49 $665.63 $793.77
2 CY $292.62 $560.31 $828.01 $1,095.70 $1,363.40 $1,631.09 3 CY $464.52 $904.11 $1,343.70 $1,783.29 $2,222.88 $2,662.47 6 CY $1,159.05 $2,293.17 $3,427.29 $4,561.41 $5,695.53 $6,829.65 Additional Container
32 Gallons $15.47 $45.15 $74.83 $104.52 $134.20 $163.88 64 Gallons $30.62 $75.38 $120.15 $164.91 $209.67 $254.44 96 Gallons $45.74 $105.55 $165.35 $225.16 $284.97 $344.78 1 CY $108.64 $236.78 $364.92 $493.06 $621.20 $749.34
2 CY $248.90 $516.59 $784.28 $1,051.98 $1,319.67 $1,587.37 3 CY $421.41 $861.00 $1,300.59 $1,740.18 $2,179.77 $2,619.36 6 CY $1,118.59 $2,252.71 $3,386.83 $4,520.95 $5,655.07 $6,789.19 Frequency
PROPOSED Monthly Commercial Solid Waste Rates (eff. 1/1/2028) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $67.57 $98.73 $129.91 $161.07 $192.23 $223.40 64 Gallons $83.40 $130.41 $177.41 $224.41 $271.41 $318.41 96 Gallons $99.20 $162.00 $224.81 $287.61 $350.40 $413.20 1 CY $160.72 $295.27 $429.82 $564.36 $698.91 $833.46
2 CY $307.25 $588.33 $869.41 $1,150.49 $1,431.57 $1,712.64 3 CY $487.75 $949.32 $1,410.89 $1,872.45 $2,334.02 $2,795.59 6 CY $1,217.00 $2,407.83 $3,598.65 $4,789.48 $5,980.31 $7,171.13 Additional Container
32 Gallons $16.24 $47.41 $78.57 $109.75 $140.91 $172.07 64 Gallons $32.15 $79.15 $126.16 $173.16 $220.15 $267.16 96 Gallons $48.03 $110.83 $173.62 $236.42 $299.22 $362.02 1 CY $114.07 $248.62 $383.17 $517.71 $652.26 $786.81
2 CY $261.35 $542.42 $823.49 $1,104.58 $1,385.65 $1,666.74 3 CY $442.48 $904.05 $1,365.62 $1,827.19 $2,288.76 $2,750.33 6 CY $1,174.52 $2,365.35 $3,556.17 $4,747.00 $5,937.82 $7,128.65 Frequency
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Section 5. Proposed Rates
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Figure 5-5. Commercial Solid Waste and Recycling Cost-of-Service (2029) and Monthly Rates
Figure 5-6. Commercial Solid Waste and Recycling Cost-of-Service (2030) and Monthly Rates
Figure 5-7 through Figure 5-11 summarize the proposed five-year schedule of commercial solid waste monthly rates. Rates for 2027-2030 were calculated by applying revenue increases to the 2026 rates calculated in Figure 4-17.

PROPOSED Monthly Commercial Solid Waste Rates (eff. 1/1/2029) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $70.95 $103.67 $136.41 $169.12 $201.84 $234.57 64 Gallons $87.57 $136.93 $186.28 $235.63 $284.98 $334.33 96 Gallons $104.16 $170.10 $236.05 $301.99 $367.92 $433.86 1 CY $168.76 $310.03 $451.31 $592.58 $733.86 $875.13
2 CY $322.61 $617.75 $912.88 $1,208.01 $1,503.15 $1,798.27 3 CY $512.14 $996.79 $1,481.43 $1,966.07 $2,450.72 $2,935.37 6 CY $1,277.85 $2,528.22 $3,778.58 $5,028.95 $6,279.33 $7,529.69 Additional Container
32 Gallons $17.05 $49.78 $82.50 $115.24 $147.96 $180.67 64 Gallons $33.76 $83.11 $132.47 $181.82 $231.16 $280.52 96 Gallons $50.43 $116.37 $182.30 $248.24 $314.18 $380.12 1 CY $119.77 $261.05 $402.33 $543.60 $684.87 $826.15
2 CY $274.42 $569.54 $864.66 $1,159.81 $1,454.93 $1,750.08 3 CY $464.60 $949.25 $1,433.90 $1,918.55 $2,403.20 $2,887.85 6 CY $1,233.25 $2,483.62 $3,733.98 $4,984.35 $6,234.71 $7,485.08 Frequency
PROPOSED Monthly Commercial Solid Waste Rates (eff. 1/1/2030) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $74.50 $108.85 $143.23 $177.58 $211.93 $246.30 64 Gallons $91.95 $143.78 $195.59 $247.41 $299.23 $351.05 96 Gallons $109.37 $178.61 $247.85 $317.09 $386.32 $455.55 1 CY $177.20 $325.53 $473.88 $622.21 $770.55 $918.89
2 CY $338.74 $648.64 $958.52 $1,268.41 $1,578.31 $1,888.18 3 CY $537.75 $1,046.63 $1,555.50 $2,064.37 $2,573.26 $3,082.14 6 CY $1,341.74 $2,654.63 $3,967.51 $5,280.40 $6,593.30 $7,906.17 Additional Container
32 Gallons $17.90 $52.27 $86.63 $121.00 $155.36 $189.70 64 Gallons $35.45 $87.27 $139.09 $190.91 $242.72 $294.55 96 Gallons $52.95 $122.19 $191.42 $260.65 $329.89 $399.13 1 CY $125.76 $274.10 $422.45 $570.78 $719.11 $867.46
2 CY $288.14 $598.02 $907.89 $1,217.80 $1,527.68 $1,837.58 3 CY $487.83 $996.71 $1,505.60 $2,014.48 $2,523.36 $3,032.24 6 CY $1,294.91 $2,607.80 $3,920.68 $5,233.57 $6,546.45 $7,859.33 Frequency
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Section 5. Proposed Rates
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Figure 5-7. Commercial Organics Cost-of-Service (2026) and Monthly Rates Figure 5-8. Commercial Organics Cost-of-Service (2027) and Monthly Rates COS Monthly Commercial Organics Rates (eff. 1/1/2026)
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $65.93 $99.16 $132.38 $165.61 $198.83 $232.06 64 Gallons $85.38 $138.06 $190.73 $243.41 $296.08 $348.76 96 Gallons $104.80 $176.89 $248.98 $321.08 $393.17 $465.26 1 CY $177.37 $331.23 $485.09 $638.95 $792.80 $946.66
2 CY $342.00 $660.48 $978.96 $1,297.44 $1,615.92 $1,934.41 3 CY $537.13 $1,050.75 $1,564.37 $2,077.98 $2,591.60 $3,105.22 6 CY $1,291.26 $2,559.00 $3,826.75 $5,094.49 $6,362.24 $7,629.99 Additional Container
32 Gallons $19.82 $53.04 $86.27 $119.49 $152.72 $185.94 64 Gallons $39.33 $92.01 $144.68 $197.36 $250.04 $302.71 96 Gallons $58.82 $130.91 $203.00 $275.09 $347.19 $419.28 1 CY $135.46 $289.31 $443.17 $597.03 $750.89 $904.74
2 CY $300.75 $619.23 $937.71 $1,256.19 $1,574.67 $1,893.16 3 CY $496.47 $1,010.08 $1,523.70 $2,037.32 $2,550.94 $3,064.55 6 CY $1,253.09 $2,520.84 $3,788.58 $5,056.33 $6,324.07 $7,591.82 Frequency
COS Monthly Commercial Organics Rates (eff. 1/1/2027)
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $69.89 $105.11 $140.33 $175.54 $210.76 $245.98 64 Gallons $90.51 $146.34 $202.18 $258.01 $313.85 $369.69 96 Gallons $111.09 $187.51 $263.92 $340.34 $416.76 $493.18 1 CY $188.01 $351.10 $514.19 $677.28 $840.37 $1,003.46
2 CY $362.52 $700.11 $1,037.70 $1,375.29 $1,712.88 $2,050.47 3 CY $569.36 $1,113.79 $1,658.23 $2,202.66 $2,747.10 $3,291.53 6 CY $1,368.74 $2,712.55 $4,056.35 $5,400.16 $6,743.97 $8,087.78 Additional Container
32 Gallons $21.01 $56.22 $91.44 $126.66 $161.88 $197.10 64 Gallons $41.69 $97.53 $153.37 $209.20 $265.04 $320.87 96 Gallons $62.35 $138.76 $215.18 $291.60 $368.02 $444.43 1 CY $143.58 $306.67 $469.76 $632.85 $795.94 $959.03
2 CY $318.79 $656.38 $993.97 $1,331.56 $1,669.16 $2,006.75 3 CY $526.25 $1,070.69 $1,615.12 $2,159.56 $2,703.99 $3,248.43 6 CY $1,328.28 $2,672.09 $4,015.90 $5,359.71 $6,703.52 $8,047.33 Frequency
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Section 5. Proposed Rates
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Figure 5-9. Commercial Organics Cost-of-Service (2028) and Monthly Rates Figure 5-10. Commercial Organics Cost-of-Service (2029) and Monthly Rates COS Monthly Commercial Organics Rates (eff. 1/1/2028)
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $73.38 $110.37 $147.35 $184.32 $221.30 $258.28 64 Gallons $95.04 $153.66 $212.29 $270.91 $329.54 $388.17 96 Gallons $116.64 $196.89 $277.12 $357.36 $437.60 $517.84 1 CY $197.41 $368.66 $539.90 $711.14 $882.39 $1,053.63
2 CY $380.65 $735.12 $1,089.59 $1,444.05 $1,798.52 $2,152.99 3 CY $597.83 $1,169.48 $1,741.14 $2,312.79 $2,884.46 $3,456.11 6 CY $1,437.18 $2,848.18 $4,259.17 $5,670.17 $7,081.17 $8,492.17 Additional Container
32 Gallons $22.06 $59.03 $96.01 $132.99 $169.97 $206.96 64 Gallons $43.77 $102.41 $161.04 $219.66 $278.29 $336.91 96 Gallons $65.47 $145.70 $225.94 $306.18 $386.42 $466.65 1 CY $150.76 $322.00 $493.25 $664.49 $835.74 $1,006.98
2 CY $334.73 $689.20 $1,043.67 $1,398.14 $1,752.62 $2,107.09 3 CY $552.56 $1,124.22 $1,695.88 $2,267.54 $2,839.19 $3,410.85 6 CY $1,394.69 $2,805.69 $4,216.70 $5,627.70 $7,038.70 $8,449.70 Frequency
COS Monthly Commercial Organics Rates (eff. 1/1/2029)
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $77.05 $115.89 $154.72 $193.54 $232.37 $271.19 64 Gallons $99.79 $161.34 $222.90 $284.46 $346.02 $407.58 96 Gallons $122.47 $206.73 $290.98 $375.23 $459.48 $543.73 1 CY $207.28 $387.09 $566.90 $746.70 $926.51 $1,106.31
2 CY $399.68 $771.88 $1,144.07 $1,516.25 $1,888.45 $2,260.64 3 CY $627.72 $1,227.95 $1,828.20 $2,428.43 $3,028.68 $3,628.92 6 CY $1,509.04 $2,990.59 $4,472.13 $5,953.68 $7,435.23 $8,916.78 Additional Container
32 Gallons $23.16 $61.98 $100.81 $139.64 $178.47 $217.31 64 Gallons $45.96 $107.53 $169.09 $230.64 $292.20 $353.76 96 Gallons $68.74 $152.99 $237.24 $321.49 $405.74 $489.98 1 CY $158.30 $338.10 $517.91 $697.71 $877.53 $1,057.33
2 CY $351.47 $723.66 $1,095.85 $1,468.05 $1,840.25 $2,212.44 3 CY $580.19 $1,180.43 $1,780.67 $2,380.92 $2,981.15 $3,581.39 6 CY $1,464.42 $2,945.97 $4,427.54 $5,909.09 $7,390.64 $8,872.19 Frequency
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Figure 5-11. Commercial Organics Cost-of-Service (2030) and Monthly Rates COS Monthly Commercial Organics Rates (eff. 1/1/2030)
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $80.90 $121.68 $162.46 $203.22 $243.99 $284.75 64 Gallons $104.78 $169.41 $234.05 $298.68 $363.32 $427.96 96 Gallons $128.59 $217.07 $305.53 $393.99 $482.45 $570.92 1 CY $217.64 $406.44 $595.25 $784.04 $972.84 $1,161.63
2 CY $419.66 $810.47 $1,201.27 $1,592.06 $1,982.87 $2,373.67 3 CY $659.11 $1,289.35 $1,919.61 $2,549.85 $3,180.11 $3,810.37 6 CY $1,584.49 $3,140.12 $4,695.74 $6,251.36 $7,806.99 $9,362.62 Additional Container
32 Gallons $24.32 $65.08 $105.85 $146.62 $187.39 $228.18 64 Gallons $48.26 $112.91 $177.54 $242.17 $306.81 $371.45 96 Gallons $72.18 $160.64 $249.10 $337.56 $426.03 $514.48 1 CY $166.22 $355.01 $543.81 $732.60 $921.41 $1,110.20
2 CY $369.04 $759.84 $1,150.64 $1,541.45 $1,932.26 $2,323.06 3 CY $609.20 $1,239.45 $1,869.70 $2,499.97 $3,130.21 $3,760.46 6 CY $1,537.64 $3,093.27 $4,648.92 $6,204.54 $7,760.17 $9,315.80 Frequency
ATTACHMENT 1
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Town of Hillsborough

NOTICE OF PUBLIC HEARING

PROPOSED ADJUSTMENTS TO TOWN OF
HILLSBOROUGH SOLID WASTE RATES BEGINNING 2026
The Town of Hillsborough invites the public to attend a public hearing to be held on Monday, November 10, 2025, at 6:00 p.m. to consider adoption of a five-year schedule of solid waste rates, to be effective for services provided on and after January 1, 2026.

The purpose of Public Hearing is to consider all oral testimony and written protests to, and the adoption of, proposed water rates and solid waste rates. If adopted, the new rates will go into effect for services provided on and after January 1, 2026.

RATE ADJUSTMENT PROCESS
The proposed rate adjustments are based on analyses by an independent rate consultant that demonstrated the proportional cost to the Town of providing these services to each property it serves. The proposed rates were developed with input from the Town’s Financial Advisory Committee, a group of community representatives that provides input to the Town on financial matters. The documents supporting the rate adjustments are available for review online at: www.hillsborough.net/SolidWasteRates and are on file with the City Clerk.

ABOUT THE TOWN'S SOLID WASTE SERVICE
The Town is a member of the ReThink Waste (also known as South Bayside Waste Management Authority, or SBWMA). Under the Joint Powers Agreement, each member agency sets its own solid waste rates for residential and commercial customers. Each of the eleven member jurisdictions has a franchise agreement with Recology for residential and commercial solid waste, recycling, and organic collections. The current franchise agreement runs through December 31, 2035. In addition, a contract with South Bay Industries provides for operations at the Shoreway Environmental Center, which is owned by the SBWMA. The Shoreway Environmental Center serves as a regional solid waste and recycling facility for the receipt, handling and transfer of solid waste, recyclable, and organic materials. Each member of the SBWMA is responsible for establishing the rates in their respective jurisdictions. Within Hillsborough, Recology is responsible for the billing of solid waste services at the rates prescribed by City Council.

Residential customers’ services include:

Weekly curbside collection of solid waste, recycling, and organics Two on-call bulky item curbside pickups per year
Weekly curbside collection of cell phones, batteries, used motor oil and oil filters Curbside holiday tree pickup
ATTACHMENT 2
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Two free community drop-off events
Commercial customers’ services include:

Collection of solid waste, recycling, and organics bins of up to six times per week by subscription.

Other services include:

Abandoned waste/illegal dumping collection throughout the Town, when necessary, annual confidential document destruction event at Town Hall, and collection at the three annual Town events.

WHY DO RATES NEED TO CHANGE?
Hillsborough’s residents were very successful in adapting to the way garbage and recycling are collected, diverting much of its waste to their recycling and/or organics carts. As a result, residents have been able to reduce the size of their black solid waste carts. Since the costs of collecting recyclable and organic materials are rolled into the cost of the black cart, the current pricing model or rate structure no longer works and will prove unsustainable to continue paying for the collection, processing and disposal costs at the current rates.

The current rates do not cover the costs of the current services.

Rate increases and adjustments are needed primarily for the following reasons:

Aligning the rates (based on size of cart) with the projected cost-of-service - Adjustments to rates are necessary to reflect the current cost of service based on the level of service provided.

Covering the projected costs for franchise services and pass-thru tipping fees - The Recology franchise agreement to collect materials from all customers increases annually based on contractually agreed upon indices, which average 4% per year. In addition, the disposal and processing fees (tipping fees) are based on contracts for these services at the Shoreway Facility in San Carlos. All materials collected from residents and businesses are directly hauled to the Shoreway Facility for processing and transfer to end markets (i.e., Solid Waste is landfilled at Ox Mountain Landfill in Half Moon Bay; Recyclable Materials are processed, bundled, and transferred to various markets for reuse; and, Organic materials are transferred to various organics processors for transformation to compost and/or mulch). Annual cost increases in tipping fees average 5% per year.

PROPOSED SOLID WASTE RATES
The Town charges solid waste rates, based on the size and number of bins or carts provided to the property, and the frequency of collection. Residential service includes weekly collection of solid waste, recycling, and organics carts. A flat fee per parcel is billed annually on the property tax roll (currently $380.16 per year). The monthly rates are billed quarterly to each customer by Recology. Each resident receives the same size recycling and organics cart as part of their solid waste cart charge. Commercial customers are billed quarterly by Recology for weekly collection of solid waste and organics, based on the size and number of solid waste and organics bins or carts. Like residential customers, recycling collection service is included in the solid waste rate.

The Town has determined that the proposed total solid waste rates set forth in Table 1 (Residential) and Tables 2-13 (Commercial) below would not exceed the estimated reasonable proportional cost of providing service to each parcel at each level of service.
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TABLE 1. RESIDENTIAL CURRENT AND PROPOSED 2026-2030 MONTHLY RATES 1 Proposed to be billed annual on the tax roll ($Current = $380.16/year; 2026 Proposed $402.24/year, etc.) 2 Billed quarterly by Recology based on solid waste cart size. Rates include weekly service of solid waste container, recycling container, and one organics container.

COMMERCIAL CURRENT AND PROPOSED 2026-2030 SOLID WASTE MONTHLY RATES TABLE 2. CURRENT MONTHLY COMMERCIAL SOLID WASTE RATES
Residential Current 2026 2027 2028 2029 2030
Monthly Rates Rates Rates Rates Rates Rates Rates
Flat fee per Parcel1 $31.68 $33.52 $35.53 $37.31 $39.18 $41.14 Service Level2
20-Gallon Cart $31.95 $35.31 $37.42 $39.29 $41.25 $43.31 32-Gallon Cart $39.01 $41.63 $44.13 $46.34 $48.66 $51.09 64-Gallon Cart $60.61 $63.37 $67.17 $70.53 $74.06 $77.76 96-Gallon Cart $88.43 $91.76 $97.27 $102.13 $107.24 $112.60 Extra Organics Cart $27.04 $27.04 $27.04 $27.04 $27.04 $27.04 Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $74.50 $108.86 $143.22 $177.58 $211.94 $246.30 64 Gallons $91.96 $143.77 $195.59 $247.41 $299.23 $351.05 96 Gallons $109.37 $178.61 $247.84 $317.08 $386.32 $455.55 1 Cubic Yard $177.19 $325.53 $473.87 $622.21 $770.55 $918.89 2 Cubic Yards $338.74 $648.63 $958.52 $1,268.41 $1,578.30 $1,888.19 3 Cubic Yards $537.73 $1,046.62 $1,555.50 $2,064.38 $2,573.26 $3,082.14 6 Cubic Yards $1,341.74 $2,654.63 $3,967.51 $5,280.40 $6,593.29 $7,906.18 Additional Container
32 Gallons $17.91 $52.27 $86.63 $120.99 $155.35 $189.71 64 Gallons $35.45 $87.27 $139.09 $190.90 $242.72 $294.54 96 Gallons $52.95 $122.18 $191.42 $260.65 $329.89 $399.13 1 Cubic Yard $125.76 $274.10 $422.44 $570.78 $719.12 $867.46 2 Cubic Yards $288.13 $598.02 $907.91 $1,217.80 $1,527.69 $1,837.58 3 Cubic Yards $487.83 $996.71 $1,505.59 $2,014.48 $2,523.36 $3,032.24 6 Cubic Yards $1,294.91 $2,607.79 $3,920.68 $5,233.57 $6,546.45 $7,859.34 Frequency
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TABLE 3. PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES (Effective 1/1/2026) TABLE 4. PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES (Effective 1/1/2027) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $60.71 $88.71 $116.71 $144.72 $172.72 $200.72 64 Gallons $74.94 $117.17 $159.40 $201.63 $243.86 $286.08 96 Gallons $89.13 $145.55 $201.98 $258.40 $314.82 $371.25 1 Cubic Yard $144.40 $265.29 $386.18 $507.07 $627.95 $748.84 2 Cubic Yards $276.06 $528.60 $781.14 $1,033.68 $1,286.23 $1,538.77 3 Cubic Yards $438.22 $852.93 $1,267.64 $1,682.35 $2,097.05 $2,511.76 6 Cubic Yards $1,093.44 $2,163.37 $3,233.29 $4,303.22 $5,373.14 $6,443.07 Additional Container
32 Gallons $14.59 $42.60 $70.60 $98.60 $126.60 $154.60
64 Gallons $28.89 $71.12 $113.35 $155.58 $197.81 $240.03 96 Gallons $43.15 $99.57 $155.99 $212.42 $268.84 $325.26 1 Cubic Yard $102.49 $223.37 $344.26 $465.15 $586.04 $706.93 2 Cubic Yards $234.81 $487.35 $739.89 $992.43 $1,244.98 $1,497.52 3 Cubic Yards $397.56 $812.26 $1,226.97 $1,641.68 $2,056.39 $2,471.09 6 Cubic Yards $1,055.27 $2,125.20 $3,195.12 $4,265.05 $5,334.98 $6,404.90 Frequency
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $64.35 $94.03 $123.72 $153.40 $183.08 $212.76 64 Gallons $79.43 $124.20 $168.96 $213.72 $258.49 $303.25 96 Gallons $94.48 $154.29 $214.10 $273.91 $333.71 $393.52 1 Cubic Yard $153.07 $281.21 $409.35 $537.49 $665.63 $793.77 2 Cubic Yards $292.62 $560.31 $828.01 $1,095.70 $1,363.40 $1,631.09 3 Cubic Yards $464.52 $904.11 $1,343.70 $1,783.29 $2,222.88 $2,662.47 6 Cubic Yards $1,159.05 $2,293.17 $3,427.29 $4,561.41 $5,695.53 $6,829.65 Additional Container
32 Gallons $15.47 $45.15 $74.83 $104.52 $134.20 $163.88 64 Gallons $30.62 $75.38 $120.15 $164.91 $209.67 $254.44 96 Gallons $45.74 $105.55 $165.35 $225.16 $284.97 $344.78 1 Cubic Yard $108.64 $236.78 $364.92 $493.06 $621.20 $749.34 2 Cubic Yards $248.90 $516.59 $784.28 $1,051.98 $1,319.67 $1,587.37 3 Cubic Yards $421.41 $861.00 $1,300.59 $1,740.18 $2,179.77 $2,619.36 6 Cubic Yards $1,118.59 $2,252.71 $3,386.83 $4,520.95 $5,655.07 $6,789.19 Frequency
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TABLE 5. PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES (Effective 1/1/2028) TABLE 6. PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES (Effective 1/1/2029) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $67.57 $98.74 $129.90 $161.07 $192.23 $223.40 64 Gallons $83.41 $130.41 $177.41 $224.41 $271.41 $318.41 96 Gallons $99.20 $162.00 $224.80 $287.60 $350.40 $413.20 1 Cubic Yard $160.72 $295.27 $429.82 $564.36 $698.91 $833.46 2 Cubic Yards $307.25 $588.33 $869.41 $1,150.49 $1,431.57 $1,712.65 3 Cubic Yards $487.74 $949.31 $1,410.88 $1,872.45 $2,334.02 $2,795.59 6 Cubic Yards $1,217.00 $2,407.83 $3,598.65 $4,789.48 $5,980.31 $7,171.13 Additional Container
32 Gallons $16.24 $47.41 $78.57 $109.74 $140.91 $172.07 64 Gallons $32.15 $79.15 $126.16 $173.16 $220.16 $267.16 96 Gallons $48.02 $110.82 $173.62 $236.42 $299.22 $362.02 1 Cubic Yard $114.07 $248.62 $383.16 $517.71 $652.26 $786.81 2 Cubic Yards $261.34 $542.42 $823.50 $1,104.58 $1,385.66 $1,666.74 3 Cubic Yards $442.48 $904.05 $1,365.62 $1,827.19 $2,288.76 $2,750.33 6 Cubic Yards $1,174.52 $2,365.35 $3,556.17 $4,747.00 $5,937.83 $7,128.65 Frequency
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $70.95 $103.67 $136.40 $169.12 $201.85 $234.57 64 Gallons $87.58 $136.93 $186.28 $235.63 $284.98 $334.33 96 Gallons $104.16 $170.10 $236.04 $301.98 $367.92 $433.86 1 Cubic Yard $168.76 $310.03 $451.31 $592.58 $733.86 $875.13 2 Cubic Yards $322.61 $617.75 $912.88 $1,208.01 $1,503.15 $1,798.28 3 Cubic Yards $512.13 $996.78 $1,481.42 $1,966.07 $2,450.72 $2,935.37 6 Cubic Yards $1,277.85 $2,528.22 $3,778.59 $5,028.95 $6,279.32 $7,529.69 Additional Container
32 Gallons $17.06 $49.78 $82.50 $115.23 $147.95 $180.68 64 Gallons $33.76 $83.11 $132.46 $181.81 $231.17 $280.52 96 Gallons $50.43 $116.36 $182.30 $248.24 $314.18 $380.12 1 Cubic Yard $119.77 $261.05 $402.32 $543.60 $684.87 $826.15 2 Cubic Yards $274.41 $569.54 $864.67 $1,159.81 $1,454.94 $1,750.07 3 Cubic Yards $464.60 $949.25 $1,433.90 $1,918.55 $2,403.20 $2,887.84 6 Cubic Yards $1,233.25 $2,483.61 $3,733.98 $4,984.35 $6,234.72 $7,485.09 Frequency
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TABLE 7. PROPOSED MONTHLY COMMERCIAL SOLID WASTE RATES (Effective 1/1/2030) COMMERCIAL CURRENT AND PROPOSED 2026-2030 ORGANICS MONTHLY RATES TABLE 8. CURRENT MONTHLY COMMERCIAL ORGANICS RATES
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $74.50 $108.86 $143.22 $177.58 $211.94 $246.30 64 Gallons $91.96 $143.77 $195.59 $247.41 $299.23 $351.05 96 Gallons $109.37 $178.61 $247.84 $317.08 $386.32 $455.55 1 Cubic Yard $177.19 $325.53 $473.87 $622.21 $770.55 $918.89 2 Cubic Yards $338.74 $648.63 $958.52 $1,268.41 $1,578.30 $1,888.19 3 Cubic Yards $537.73 $1,046.62 $1,555.50 $2,064.38 $2,573.26 $3,082.14 6 Cubic Yards $1,341.74 $2,654.63 $3,967.51 $5,280.40 $6,593.29 $7,906.18 Additional Container
32 Gallons $17.91 $52.27 $86.63 $120.99 $155.35 $189.71 64 Gallons $35.45 $87.27 $139.09 $190.90 $242.72 $294.54 96 Gallons $52.95 $122.18 $191.42 $260.65 $329.89 $399.13 1 Cubic Yard $125.76 $274.10 $422.44 $570.78 $719.12 $867.46 2 Cubic Yards $288.13 $598.02 $907.91 $1,217.80 $1,527.69 $1,837.58 3 Cubic Yards $487.83 $996.71 $1,505.59 $2,014.48 $2,523.36 $3,032.24 6 Cubic Yards $1,294.91 $2,607.79 $3,920.68 $5,233.57 $6,546.45 $7,859.34 Frequency
Container Size 1/week 2/week 3/week 4/week 5/week 6/week 32 Gallons $28.99 $43.44 $57.90 $72.35 $86.80 $101.25
64 Gallons $36.52 $58.49 $80.46 $102.44 $124.41 $146.38 96 Gallons $43.67 $72.79 $101.91 $131.04 $160.16 $189.28 1 Cubic Yard $72.05 $134.68 $197.30 $259.93 $322.55 $385.17 2 Cubic Yards $135.99 $262.55 $389.12 $515.68 $642.24 $768.81 3 Cubic Yards $221.08 $432.74 $644.39 $856.05 $1,067.70 $1,279.36 6 Cubic Yards $560.97 $1,112.51 $1,664.05 $2,215.59 $2,767.13 $3,318.67 Additional Container
32 Gallons $6.95 $21.40 $35.85 $50.30 $64.75 $79.20
64 Gallons $14.52 $36.49 $58.46 $80.44 $102.41 $124.38
96 Gallons $21.69 $50.82 $79.94 $109.06 $138.19 $167.31 1 Cubic Yard $53.16 $115.78 $178.40 $241.03 $303.65 $366.28 2 Cubic Yards $117.65 $244.21 $370.77 $497.34 $623.90 $750.46 3 Cubic Yards $203.29 $414.95 $626.60 $838.25 $1,049.91 $1,261.56 6 Cubic Yards $545.39 $1,096.93 $1,648.47 $2,200.01 $2,751.55 $3,303.09 -158-
TABLE 9. PROPOSED MONTHLY COMMERCIAL ORGANICS RATES (Effective 1/1/2026) TABLE 10. PROPOSED MONTHLY COMMERCIAL ORGANICS RATES (Effective 1/1/2027) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $65.93 $99.16 $132.38 $165.61 $198.83 $232.06 64 Gallons $85.38 $138.06 $190.73 $243.41 $296.08 $348.76 96 Gallons $104.80 $176.89 $248.98 $321.08 $393.17 $465.26 1 CY $177.37 $331.23 $485.09 $638.95 $792.80 $946.66
2 CY $342.00 $660.48 $978.96 $1,297.44 $1,615.92 $1,934.41 3 CY $537.13 $1,050.75 $1,564.37 $2,077.98 $2,591.60 $3,105.22 6 CY $1,291.26 $2,559.00 $3,826.75 $5,094.49 $6,362.24 $7,629.99 Additional Container
32 Gallons $19.82 $53.04 $86.27 $119.49 $152.72 $185.94 64 Gallons $39.33 $92.01 $144.68 $197.36 $250.04 $302.71 96 Gallons $58.82 $130.91 $203.00 $275.09 $347.19 $419.28 1 CY $135.46 $289.31 $443.17 $597.03 $750.89 $904.74
2 CY $300.75 $619.23 $937.71 $1,256.19 $1,574.67 $1,893.16 3 CY $496.47 $1,010.08 $1,523.70 $2,037.32 $2,550.94 $3,064.55 6 CY $1,253.09 $2,520.84 $3,788.58 $5,056.33 $6,324.07 $7,591.82 Frequency
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $69.89 $105.11 $140.33 $175.54 $210.76 $245.98 64 Gallons $90.51 $146.34 $202.18 $258.01 $313.85 $369.69 96 Gallons $111.09 $187.51 $263.92 $340.34 $416.76 $493.18 1 CY $188.01 $351.10 $514.19 $677.28 $840.37 $1,003.46
2 CY $362.52 $700.11 $1,037.70 $1,375.29 $1,712.88 $2,050.47 3 CY $569.36 $1,113.79 $1,658.23 $2,202.66 $2,747.10 $3,291.53 6 CY $1,368.74 $2,712.55 $4,056.35 $5,400.16 $6,743.97 $8,087.78 Additional Container
32 Gallons $21.01 $56.22 $91.44 $126.66 $161.88 $197.10 64 Gallons $41.69 $97.53 $153.37 $209.20 $265.04 $320.87 96 Gallons $62.35 $138.76 $215.18 $291.60 $368.02 $444.43 1 CY $143.58 $306.67 $469.76 $632.85 $795.94 $959.03
2 CY $318.79 $656.38 $993.97 $1,331.56 $1,669.16 $2,006.75 3 CY $526.25 $1,070.69 $1,615.12 $2,159.56 $2,703.99 $3,248.43 6 CY $1,328.28 $2,672.09 $4,015.90 $5,359.71 $6,703.52 $8,047.33 Frequency
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TABLE 11. PROPOSED MONTHLY COMMERCIAL ORGANICS RATES (Effective 1/1/2028) TABLE 12. PROPOSED MONTHLY COMMERCIAL ORGANICS RATES (Effective 1/1/2029) Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $73.38 $110.36 $147.34 $184.32 $221.30 $258.28 64 Gallons $95.03 $153.66 $212.29 $270.91 $329.54 $388.17 96 Gallons $116.64 $196.88 $277.12 $357.36 $437.60 $517.83 1 CY $197.42 $368.66 $539.90 $711.15 $882.39 $1,053.63
2 CY $380.64 $735.11 $1,089.58 $1,444.05 $1,798.52 $2,152.99 3 CY $597.83 $1,169.48 $1,741.14 $2,312.80 $2,884.45 $3,456.11 6 CY $1,437.17 $2,848.17 $4,259.17 $5,670.17 $7,081.17 $8,492.17 Additional Container
32 Gallons $22.06 $59.04 $96.01 $132.99 $169.97 $206.95 64 Gallons $43.78 $102.41 $161.03 $219.66 $278.29 $336.92 96 Gallons $65.46 $145.70 $225.94 $306.18 $386.42 $466.66 1 CY $150.76 $322.01 $493.25 $664.49 $835.74 $1,006.98
2 CY $334.73 $689.20 $1,043.67 $1,398.14 $1,752.61 $2,107.08 3 CY $552.57 $1,124.22 $1,695.88 $2,267.53 $2,839.19 $3,410.85 6 CY $1,394.69 $2,805.69 $4,216.69 $5,627.69 $7,038.69 $8,449.69 Frequency
Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $77.05 $115.88 $154.71 $193.54 $232.37 $271.19 64 Gallons $99.78 $161.34 $222.90 $284.46 $346.02 $407.58 96 Gallons $122.48 $206.73 $290.98 $375.23 $459.48 $543.73 1 CY $207.29 $387.09 $566.90 $746.70 $926.51 $1,106.32
2 CY $399.67 $771.87 $1,144.06 $1,516.26 $1,888.45 $2,260.64 3 CY $627.72 $1,227.96 $1,828.20 $2,428.44 $3,028.68 $3,628.91 6 CY $1,509.03 $2,990.58 $4,472.13 $5,953.68 $7,435.23 $8,916.78 Additional Container
32 Gallons $23.16 $61.99 $100.82 $139.64 $178.47 $217.30 64 Gallons $45.97 $107.53 $169.09 $230.64 $292.20 $353.76 96 Gallons $68.74 $152.99 $237.24 $321.49 $405.74 $489.99 1 CY $158.30 $338.11 $517.91 $697.72 $877.52 $1,057.33
2 CY $351.47 $723.66 $1,095.86 $1,468.05 $1,840.24 $2,212.44 3 CY $580.19 $1,180.43 $1,780.67 $2,380.91 $2,981.15 $3,581.39 6 CY $1,464.43 $2,945.98 $4,427.53 $5,909.08 $7,390.63 $8,872.18 Frequency
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TABLE 13. PROPOSED MONTHLY COMMERCIAL ORGANICS RATES (Effective 1/1/2030)

YOUR OPPORTUNITY TO GET INVOLVED
After reading the information in this letter, you may wish to provide input to the City Council. Proposed rate changes will be considered by the City Council at a public hearing to be held:

PUBLIC HEARING AND PROTESTS
Monday, November 10, 2025 at 6:00 p.m.
1600 Floribunda Avenue – Council Chambers
Hillsborough, CA 94010
Any record owner of a parcel upon which the solid waste rates are proposed to be imposed and any tenant directly liable for the payment of solid waste rates (i.e., a customer of record who is not a property owner) may submit a written protest to the proposed rate adjustments; however, only one protest for solid waste rates will be counted per identified parcel. Written protest must: (1) state that the identified property owner or tenant is opposed to the proposed solid waste rate adjustments and increases; (2) provide the location of the identified parcel (by street address, assessor’s parcel number, or customer account number); and (3) include the name and signature of the property owner or tenant submitting the protest. Written protests may be submitted to the City Clerk by mail or in person at 1600 Floribunda Avenue Hillsborough, CA 94010, or during the public hearing (date, time, and location noted above).

The City Clerk must receive written protests delivered by mail no later than 4:00 p.m. on the date of the Public Hearing. Any protest submitted via e-mail or other electronic means will not be accepted as a valid written protest. Please indicate on the outside of any envelope mailed to the Town Attn: Solid Waste Rate Hearing.

The City Council will accept and consider all written protests and will hear and consider all oral comments to the proposed rate adjustments and increases at the public hearing. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the public hearing, the City Council will consider adoption of the proposed rate increases as described in this notice. If written protests against the proposed rates are not presented by a majority of the property owners or tenants of the identified parcels subject to the proposed rate increases, City Council will be authorized to adopt rate increases and adjustments.

Container Size 1/ week 2/ week 3/ week 4/ week 5/ week 6/ week 32 Gallons $80.91 $121.68 $162.44 $203.21 $243.98 $284.75 64 Gallons $104.77 $169.41 $234.05 $298.68 $363.32 $427.96 96 Gallons $128.60 $217.06 $305.52 $393.99 $482.45 $570.91 1 CY $217.65 $406.45 $595.24 $784.04 $972.84 $1,161.63
2 CY $419.66 $810.46 $1,201.27 $1,592.07 $1,982.87 $2,373.68 3 CY $659.11 $1,289.36 $1,919.61 $2,549.86 $3,180.11 $3,810.36 6 CY $1,584.48 $3,140.11 $4,695.74 $6,251.37 $7,806.99 $9,362.62 Additional Container
32 Gallons $24.32 $65.09 $105.86 $146.63 $187.39 $228.16 64 Gallons $48.27 $112.90 $177.54 $242.18 $306.81 $371.45 96 Gallons $72.17 $160.64 $249.10 $337.56 $426.03 $514.49 1 CY $166.22 $355.01 $543.81 $732.60 $921.40 $1,110.20
2 CY $369.04 $759.84 $1,150.65 $1,541.45 $1,932.26 $2,323.06 3 CY $609.20 $1,239.46 $1,869.71 $2,499.96 $3,130.21 $3,760.46 6 CY $1,537.65 $3,093.28 $4,648.90 $6,204.53 $7,760.16 $9,315.79 Frequency
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Town of Hillsborough
Proposition 218 Noticing, Tabulation, and Protest Procedures The following procedures set forth the process for the completion, filing and tabulation of written protests for the Notice of Public Hearing on Proposed Adjustments and Increases to Town of Hillsborough Solid Waste Rates.

These procedures are intended to assist the Town in complying with the process requirements set forth in Proposition 218 (The 218 Process).

The City Clerk’s office (City Clerk) will be responsible for the 218 Process for the Town and may be assisted by Town staff or outside professionals. These procedures will be kept on file in the office of the City Clerk.

A. Completion of Written Protest

1. Which properties are subject to the 218 Process?
Properties that are within the service area of the Town of Hillsborough are subject to the 218 Process.

These properties will be designated as the Town’s “Service Area” within these Procedures.

Protests received from properties within the Service Area will be tabulated in accordance with Proposition 218 and the procedures outlined herein.

2. Who may file Written Protest?
The owner of the assessor’s parcel subject to the rate increase may file a written protest. As used in these Procedures, the term “Owner” includes the owner’s authorized representative. If the owner of the parcel is a partnership, joint tenancy, or tenancy in common, a Protest may be filed by any of the general partners, joint tenants, or tenants in common.

3. Contents of the Written Protest
Only Protests submitted in accordance with the Town’s “Notice of Public Hearing on Proposed Adjustments and Increases to Town of Hillsborough Solid Waste Rates” will be tabulated. In order to be tabulated, the protest must include the following information:
 An identification of the property (Property Street address or Assessor’s Parcel Number)  The name of the property owner
 Signature of the owner or authorized representative
 A statement that the property owner opposes the proposed adjustments and increases

4. Valid Protest?
Only written protests with all required information stated above will considered valid and included in the final tabulation. Protests by telephone, fax, or e-mail will not be accepted.

B. Return of the Protest

1. Where to file the Protest?
Protests may be mailed to the City Clerk, Town of Hillsborough, 1600 Floribunda Ave., Hillsborough, CA 94010.

Protests may be delivered in person to the City Clerk’s Office during the Town’s business hours or placed in the Town of Hillsborough white, metal, secure drop-box located in the Town Hall parking lot. During the ATTACHMENT 3
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Public Hearing on the proposed rate increase, protests shall be provided to the City Clerk in the Council Chambers at Town Hall prior to the close of the Public Hearing.

2. When to return the Protest?
All protests must be received by the City Clerk by the close of the Public Hearing. The City Clerk must receive a written protest by mail no later than 4:00 p.m. on the date of the Public Hearing, or if provided to the city clerk in person, not later than the close of the public comment portion of the Public Hearing on the proposed rate increase.

3. Withdrawal of Protest
After filing a Protest to the Town, the person who signed the Protest may withdraw the Protest by submitting a written request in person to the City Clerk at 1600 Floribunda Ave., Hillsborough, CA 94010 or placed in the metal drop-box during the Public Hearing on the proposed rates increase. The City Clerk will retain all withdrawn Protests and will clearly indicate on the face of such Protests that they have been withdrawn.

C. Tabulation of Protests

1. Which Protests will be tabulated?
Only Protests from within the Service Area and filed in accordance with these procedures will be tabulated.

Protests received after the close of the Public Hearing will not be counted.

Protests that do not have all the required information will not be counted.

Protests withdrawn in accordance with these procedures will not be counted.

If more than one Protest is filed by the same owner for the same parcel, only one protest will be counted.

If more than one owner or tenant directly liable for payment returns a Protest for the same parcel, only one protest will be counted.

2. When and where the Protests will be tabulated?
Protests will be tabulated periodically, throughout the noticing period, in the office of City Clerk, 1600 Floribunda Ave., Hillsborough, CA 94010.

The final tabulation of protests will be performed following the close of the Public Hearing.Following the last public speaker, and after the close of the public comment portion of the public hearing, the Mayor will announce that the City Clerk will tabulate the written protests.

The City Clerk reviews protest(s) received during the public hearing to confirm all required information is included in order to be counted as a valid protest.

3. How the Protests will be tabulated?
Each assessor’s parcel is allowed a single protest.

4. Confidentiality
Protests will be kept confidential until the public hearing. After the close of the public hearing, members of the public may inspect the protests.
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5. Results of the tabulation
The results of the tabulation will be announced following the completion of the tabulation and entered in the minutes of the City Council meeting.

D. Resolution of Disputes

1. Property Ownership
In the event of a dispute regarding whether the signer of a Protest is the owner of the parcel to which the Protest applies, the Town will make such determination from the last equalized assessment roll and any evidence of ownership submitted to the Town prior to the conclusion of the public hearing.

E. General Information
The names and addresses of the owners of real property within the Town’s Service Area were obtained from the equalized secured property tax assessment roll and Recology customer database.

Notices will be mailed to all affected property owners, as they are shown on the equalized secured property tax assessment roll, at least 45 days prior to the Public Hearing. For the duration of the proceedings, the Town will retain any Notice packet that is returned to them as “undeliverable” by the U.S. Postal Service.

All Protests are public records. Actual written protests will be kept secured with the City Clerk until after the Public Hearing. After the Public Hearing, the written protests will be available for review by the public.

Proposed rates will not be adopted if more than 50% of affected property owners submit written requests. -164-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
115

NEW BUSINESS

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: DESIGNATION OF A VOTING DELEGATE AND ALTERNATE VOTING DELEGATE(S) TO THE 2025 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE AND EXPO OCTOBER 8-10, 2025
SUMMARY: The League of California Cities (Cal Cities) Annual Conference will be held October 8- 10, 2025 at the Long Beach Convention Center. An important part of the Annual Conference is the General Assembly on Friday, October 10th at 8:30 a.m. The General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate.

The appointed voting delegate plays an important role during the General Assembly by representing the Town and voting on resolutions. Resolutions approved by the General Assembly become Cal Cities policy.

To cast a vote during the General Assembly, the Town must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity.

Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the City Council. The designees must be registered attendees of the conference. In order to cast a vote, at least one voter must be present at the business meeting and in possession of the voting delegate card.

Following City Council action on this item, the City Clerk will submit the delegate information electronically via the Cal Cities Portal.

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.

ATTACHMENTS:

1. Annual Conference Voting Guidelines

2. Cal Cities Resolutions and the General Assembly Flow Chart PREPARED BY: Lisa Natusch, City Clerk
RECOMMENDATION: Designate a voting delegate and alternate(s) for the 2025 League of -165-
Agenda Staff Report - Hillsborough City Council
September 8, 2025

California Cities Annual Conference General Assembly on Friday, October 10, 2025. -166-
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
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ATTACHMENT 1
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). -168-
ATTACHMENT 2

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
16 DISCUSSION

CITY COUNCIL MEETING
SEPTEMBER 8, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: DISCUSSION OF POTENTIAL REVISIONS TO HILLSBOROUGH MUNICIPAL CODE CHAPTER 17.52 RELATED TO ACCESSORY DWELLING UNITS (ADUs) SUMMARY: Staff is initiating a discussion regarding updates to the City’s ADU ordinance.

Revisions are proposed to address:

1. Required changes identified by the California Department of Housing and Community Development (HCD) to bring the ordinance into compliance with State law.

2. Optional changes based on implementation experience, staff observations, and community feedback received since adoption of the current ordinance.

This discussion item is intended to gather preliminary input from the City Council prior to drafting a revised ordinance for formal consideration.

BACKGROUND
In December 2024, the City Council adopted an urgency ordinance to amend Chapter 17.52 of the Town of Hillsborough Municipal Code to comply with changes to state law that impose new limits on local authority to regulate Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”), which took effect on January 1, 2025.

Those changes were primarily related to AB 2533 – Unpermitted ADUs and JADUs and SB 1211 – Replacement Parking Requirements and Multifamily ADUs, and also included some administrative non-substantive clean-up. The City Council adopted the urgency ordinance to ensure that the Town’s ADU ordinance would remain valid when AB 2533 and SB 1211 took effect on January 1, 2025. At that time Staff noted that a non-urgency ordinance would follow, subject to all normal procedures.

Prior to moving forward with the non-urgency ordinance, staff is bringing the ADU Ordinance before the Council as a discussion item, to discuss several optional revisions and request Council feedback and direction. Following this discussion, staff will incorporate City Council feedback into a revised draft ordinance and return to City Council with a formal ordinance for introduction and adoption.

DISCUSSION
Required Revisions for State Law Compliance:

Elimination of the Deed Restriction. Current ordinance states: “Prior to issuance of a certificate of occupancy for an ADU or JADU, a deed restriction must be recorded against the title of the property in the county recorder's office and a copy filed with the town. Evidence of recordation is not required for the issuance of a building permit or ADU permit. The deed restriction must run with the land and bind all future owners.”
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Agenda Staff Report – Hillsborough City Council
September 8, 2025