Hillsborough City Council
October 13, 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, OCTOBER 13, 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/89853503698?pwd=GzcSwuuvXmNoRSucYBMrll4Lv0ZwU3.1 • Dial-in via phone:
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Meeting ID: 898 5350 3698
Passcode: 420729
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, October 13, 2025

CLOSED SESSION ITEM
A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
De Aquino v. Town of Hillsborough, et al.

San Mateo Superior Court Case No. 22CIV03845

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. PROCLAMATION
• Domestic Violence Awareness Month
VI. PRESENTATIONS
• Update from Leadership Council San Mateo County
• Grand Boulevard Initiative Fall 2025 Progress Update
VII. TOWN UPDATE
VIII. 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, 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.

IX. 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.

Agenda – Hillsborough City Council
Monday, October 13, 2025

X. 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 September 22, 2025

2. Monthly Claims: September 1 through September 30, 2025

3. Quarterly Treasurer's Report for the Quarter Ending September 30, 2025

4. Receive September 2025 Legislative Update

5. Resolution Approving and Authorizing the City Manager to Execute an Agreement with Harmonie Park Development for Professional Project Management Services for Development of the Tobin Clark Housing Site in the Amount of $539,100.00 for a Term through March 24, 2028, and Approving a FY 2025-26 Budget Amendment and Transfer as Needed in Accordance with the Project Schedule, Under CEQA Guideline 15306

6. Resolution Appointing a Director and an Alternate to the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) Board of Directors

7. Resolution Consenting to the Dissolution of the San Mateo County Cities Insurance Group Joint Powers Authority Under Section 5 of the San Mateo County Cities Insurance Group Joint Powers Agreement and Approving a Dissolution Agreement to Govern the Dissolution Process

8. Resolution Authorizing the City Manager to Execute All Documents Necessary to Join the Workers’ Compensation Program Through Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA)

9. Consider Opting Into Two Class Action Settlement Agreements with Distributors of Opioids: (1) Purdue/Sackler and (2) Eight Secondary Drug Manufacturers Including Alvogen, Inc., Amneal Pharmaceuticals LLC, Apotex Corp., Hikma Pharmaceuticals USA Inc., Indivior Inc., Viatris Inc. (Mylan), Sun Pharmaceuticals Industries, Inc., and Zydus Pharmaceuticals, and Authorize the City Manager to Execute Documents to Effectuate the Settlements

10. Resolution Adopting the Town of Hillsborough 2025 Sanitary Sewer Management Plan and Authorizing the Director of Public Works to Make As-Needed Updates to the Plan, Under CEQA Guideline 15301
XI. PUBLIC HEARING

11. Resolution Accepting the Grant of a Seventeen-Foot-Wide Water Easement and a TenFoot-Wide Water Easement at Crocker Middle School Under CEQA Guideline 15301 Agenda – Hillsborough City Council
Monday, October 13, 2025

12. Resolution Accepting Ten (10) Grants of a Storm Drain Easement Over Ten Properties on Shady Lane, a Private Road, Under CEQA Guidelines 15301 and 15302 XII. NEW BUSINESS

13. Resolution Approving and Authorizing the City Manager to Execute a Loan Agreement with Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) and Accepting $750,000.00 in Temporary Funds for the Macadamia Access Road Repair Project (Phase 1 – East) Under CEQA Guideline 15301
XIII. 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.

XIV. 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
Domestic Violence Awareness Month
October 2025
WHEREAS, more than one in three women, one in four men, and one in two transgender individuals experience some fonn of physical or sexual violence and/or stalking by their intimate partner in their lifetime; and
WHEREAS, the marginalization of certain groups in society, including undocumented individuals, transgender
violen
individuals, and people living with disabilities increases their vulnerability to domestic ce; and
WHEREAS, Community Overcoming Relationship Abuse (CORA) staff provided more than 10,000 critical services in the past year, ensuring survivors have access to safety, advocacy, and healing; and WHEREAS, CORA provided over $1 million in client cash assistance, including subsidized rent, secm1·ty deposits, and a range of emergency expenses, from carrepairs to storagecosts; and WHEREAS, in San Mateo County, 121 adults and children wereprovided emergency shelter, including stays in safe houses and motels, and 144 households were provided longer tenn rental assistance to escape theirabuserslastyear,· and
WHEREAS, 606 adults and children received therapy to help them with domestic violence-related trauma, and CORA fielded 2,092 requests for legal assistance; and WHEREAS, the Town ofHJJlsborough recognizes the cn'tical need for county-wide services in order to support our residents.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town ofHillsborough hereby proclaims the month of October2025 as Domestic Violence Awareness Month to raise awareness about and encourage our residents to do theirpartto helprid our community of domestic violence.

Date
-1-

PROBLEM STATEMENTS GOALS
SUMMER 2025 PROGRESS UPDATE
Grand Boulevard Initiative
Action Plan Factsheet
El Camino Real’s highway-like design
discourages walking, biking, and
transit use.

It’s too challenging to develop, implement,
and fund transportation projects on
El Camino Real.

El Camino Real has an unusually high rate of
fatal or serious injury crashes, particularly
for people walking and biking.

About the Grand Boulevard Initiative
SamTrans is leading the Grand Boulevard Initiative (GBI), a corridor-wide effort to modernize El Camino Real. GBI coordinates local transportation planning efforts along El Camino Real, bringing together cities, countywide agencies, Caltrans, advocates, and business groups.

Over the past year, GBI convened a Task Force and a Working Group comprised of staff representing all cities and various agencies and organizations along the corridor in a series of workshops. These groups provide direction on corridor-wide challenges and needs, potential solutions, public and stakeholder engagement, and the vision for the corridor. They meet bimonthly and SamTrans is using this feedback to develop the GBI Action Plan.

What is the
GBI Action Plan?
The GBI Action Plan is a planning document
that evaluates corridor-wide needs, establishes
a cohesive vision, and builds momentum
toward implementation. It serves as a precursor
to beginning a countywide Caltrans project
development process.

DALY
CITY

COLMA SOUTH

SAN FRANCISCO
SAN

BRUNO MILLBRAE BURLINGAME SAN MATEO BELMONT SAN

CARLOS REDWOOD CITY MENLOPARK
PALO
ALTO

SAN FRANCISCO

ATHERTON
NORTH
FAIR
OAKS

MOBILITY

ACTION PLAN DRAFT VISION STATEMENT

PROCESS
El Camino Real is a safe and vibrant street where people of all ages and abilities travel comfortably.

Transform El Camino Real into a complete
street that works for all users.

Create a new framework for change,
aligning vision, process, and funding.

Adopt a safety-first mindset to eliminate
fatal and serious injury crashes.

What will the
Action Plan address?
The Action Plan is organized around a
corridor-wide vision statement and three key
goals that will lay the foundation for a grand
boulevard connecting communities in
San Mateo County.

SAFETY
-3-
SUMMER 2025 PROGRESS UPDATE
How are we collecting
feedback on the
Action Plan?
We are sharing key pieces of the
draft Action Plan and engaging
stakeholders through:
• Workshops with the GBI Task
Force
• Presentations to city councils
• Presentations to key
stakeholder groups, including
business groups, advocacy
groups, and SamTrans advisory
committees.

The Action Plan will be brought
to the SamTrans and San Mateo
County Transportation Authority
Boards for adoption at the end of
2025.

What comes after the Action Plan?
Once the Action Plan is complete, SamTrans will
lead the first phase of a coordinated Caltrans project
development process, called a Project Initiation
Document (PID), for all of El Camino Real in San Mateo
County. The PID will define the purpose and need for
transportation improvements to the corridor as well as
establish potential design alternatives.

Project Schedule
FALL 2024 - ONGOING
Convene GBI Task Force and Working Group
SUMMER/FALL 2025
Develop and seek input on the Action Plan
2026
Develop the Project Initiation Document and
Define the Scope of Improvements
2027
Initiate Project Approval and Environmental
Document, Identify a Preferred Alternative, and
Develop a Prioritization and Phasing Strategy
2028 TO 2029
Develop Plans, Specifications, and Estimates
2030 ONWARDS
Construct Streetscape Improvements
[email protected]
+1 (800) 660 - 4287
The GBI Action Plan and Project Initiation
Document are funded by SamTrans, a
grant from the Metropolitan Transportation
Commission, as well as a grant of local
transportation sales tax dollars from the
San Mateo County Transportation Authority.

Visit samtrans.com/gbi for
more information
-4-
OCTOBER 13, 2025
Fall 2025 Progress Update
Hillsborough City Council
-5-
Background and Overview
-6-
What is the Grand Boulevard Initiative?
Corridor-wide
program to modernize
transportation
infrastructure on El
Camino Real in San
Mateo County.

Convene a Task Force of
staff from cities,
countywide agencies,
Caltrans, advocates, and
business groups to
establish a cohesive
vision for the corridor.

Builds momentum
toward
implementation by
advancing a
coordinated project
through the Caltrans
approval process.
3 -7-
It's Time to Modernize El Camino Real
• GBI is reimagining El Camino Real to
meet 21st century mobility and safety
needs
• Goes beyond safety and transportation
improvements in local jurisdictions:
• Placemaking with vibrant destinations
• Economic vitality
• Sustainability elements
• Infrastructure that will support future
developments on the corridor
4 -8-
GBI Structure
Task Force Working Group
• City and agency staff, advocacy
groups, business groups
• Focused on corridor-wide
visioning
• City and agency staff only
• Focused on implementation
5 -9-
GBI Agency Partners & Roles
•Owns and maintains El Camino
Real as a state highway (SR 82)
•Reviews and approves proposed
changes to the roadway
•Prepares the San Mateo County
Congestion Management
Program (CMP) and identifies
strategies to relieve congestion
•El Camino Real is a CMP
roadway
•Primary bus service provider
in San Mateo County
•Coordinating countywide El
Camino Real planning efforts
with SMCTA
•Coordinates and funds Bay Area
regional transportation
•Providing grant funding for El Camino
Real planning and Caltrans approval
efforts
•Funds transportation
improvements in San
Mateo County
•Directs funding towards El
Camino Real projects
6 -10-
GBI is Coordinating Across Nine Different
Projects and Studies Underway
7 El Camino Real GBI Action Plan & Project Initiation Document Caltrans SR-82 North Comprehensive Multimodal Corridor Plan (including San Francisco and San Mateo Counties)
-11-
GBI Action Plan
-12-
GBI Action Plan
GBI Action Plan
GBI Outcomes
Caltrans Project
Initiation Document
9 The Action Plan is the precursor to
beginning a countywide Caltrans
project development process:
• Evaluate corridor-wide needs
• Establish a cohesive vision
• Build momentum toward
implementation
-13-
GBI Action Plan Engagement
10 2024 2025
Q3 Q4 Q1 Q2 Q3 Q4
Task Force &
Working Group
GBI Steering
Committee
City Councils
SamTrans & TA
Board
-14-
Draft Corridor-Wide Vision
El Camino Real is a safe and
vibrant street where people of
all ages and abilities travel
comfortably
11 -15-
Problem Statements and Goals
Transform El Camino Real into a
complete street that works for
all users.

Create a new framework for
change aligning vision, process,
and funding.

El Camino Real has an unusually
high rate of fatal or serious
injury crashes, particularly for
people walking and biking.

El Camino Real’s highway-like
design discourages walking,
biking, and transit use.

It’s too challenging to develop,
implement, and fund
transportation projects on El
Camino Real.

SAFETY
Adopt a safety-first mindset to
eliminate fatal and serious injury
crashes.

SAFETY

MOBILITY

PROCESS

MOBILITY

PROCESS
→
→
→

PROBLEM STATEMENTS GOALS
-16-
Streetscape Changes Under Study
Safety
• Traffic calming
• Traffic signal gap
closures
• Medians
• Lighting
Active
Transportation
• Wider sidewalks
• Crosswalk
improvements
• Separated
bikeways
• Street trees
Transit
• Bus stop
enhancements
• Bus lanes
• Transit signal
priority
• Access
improvements
13 -17-
GBI Builds on Plans and Projects in
Hillsborough
• Bicycle and Pedestrian Master Plan (2025)
• Caltrans El Camino Real Roadway Renewal Project in
Burlingame/Hillsborough (04-0K810, beginning
construction)
14 -18-
Next Steps & Discussion
-19-
GBI Timeline and Cost
16 2025 2026
~$750M
Rough order of magnitude cost for
up to 22 miles of streetscape redesign ($2025)
-20-
Discussion:

GBI Action Plan Framework
Goals: What goals do you have for the corridor?
Process: How can we best work together to advance the
GBI Vision?
Next Steps: Are you supportive of the GBI process as we have described it?
17 Transform El Camino Real into a complete street that works for all users.

Create a new framework for change aligning vision, process, and funding.

Adopt a safety-first mindset to eliminate fatal and serious injury crashes.

SAFETY GOAL

MOBILITY GOAL

PROCESS GOAL
-21-
Thank you!
18 For more information please visit
www.samtrans.com/gbi
For questions & comments,
please email:
[email protected]
The GBI Action Plan and Project Initiation
Document are funded by SamTrans, a grant
from the Metropolitan Transportation
Commission, as well as a grant of local
transportation sales tax dollars from the
San Mateo County Transportation Authority
-22-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Approve City Council Meeting Minutes of September 22, 2025 -23-
a

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, SEPTEMBER 22, 2025
SPECIAL CITY COUNCIL MEETING: STUDY SESSION
6:00 PM
Council Chambers
Meetings of the City Council are held in-person in Council Chambers. As a courtesy, and in compliance with applicable state law, staff and members of the public participated in the meeting in person in Council Chambers or virtually via Zoom Video Conference.

I. CALL TO ORDER
Mayor Cole called the meeting to order at 6:02 p.m.

II. ROLL CALL

Present: Adams, Chuang, Ragsdale, Cole

Absent: Krolik
III. STUDY SESSION
Informational Update on New Requirements Resulting from Local Responsibility Area (LRA) Map Adoption and Fire-Resistant Construction Practices Fire Marshal Patricia Koch and Assistant City Manager Mandy Brown provided the staff report.

City Manager Doug Davis, City Attorney Christopher Diaz and Building & Planning Director Tim Anderson provided additional information.

Mayor Cole opened public comment.

Kitty Mullooly, representing the Hillsborough Firewise Board, read a letter written by Firewise Board Chair Dr. David Weinberg and submitted a copy of the letter for the record.

Christine Krolik inquired about the effectiveness of fire-resistant paint to cover eaves, whether a list of professionals who do home hardening is available or whether an open house could be held to provide that information, provided comments about the screening of accessory dwelling units, and expressed support for removing wood roofs, reducing light pollution, and looking into friendlier fences in the town.

Mayor Cole closed public comment.

Following discussion, Assistant City Manager Mandy Brown summarized the City Council direction to continue to evaluate the suggested alterations to the code based on community feedback as listed in the presentation: Require properties to include a pedestrian gate on front yard fencing, Exclude wood roof coverings from Class A designations regardless of underlayment elements, Change minimum remodel trigger for roof replacement, Support creation of an advanced fire detection system tailored to fire detection in close-in WUI zones like those in Hillsborough, Require fencing to be wildlife friendly, and Reduce light trespass and encourage Dark Sky friendly lighting with the priority; with the priority to look at wood roof coverings and the minimum remodel trigger for roof replacement, prepare educational materials including a vendor resource list, explore additional REACH standards beyond what is in the upcoming triennial building code update, bring back more information regarding the process to establish findings and information about the financial impact to homeowners of additional changes to the code, do some initial community engagement to get feedback to share with the City Council, and gather information regarding lessons learned from other towns who have gone through the process.

IV. ADJOURNMENT
Mayor Cole adjourned the meeting at 7:46 p.m. -24-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Monthly Claims: September 1 through September 30, 2025 SUMMARY: The monthly claims for the month of September 2025 in the amount of $5,000,860.92 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 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 in the environment.

ATTACHMENTS: Monthly Claims Listing
PREPARED BY: Richard Santiago, Assistant Finance Director RECOMMENDATION: Approve the monthly claims for September 2025 as submitted. -25-

TOWN OF HILLSBOROUGH

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

Alan Singh
Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -26-
GOODS & SERVICES PURCHASED $2,052,149.09
NET SALARIES & TAXES PAID 1,136,213.92
HEALTH BENEFIT PREMIUMS 197,014.19
CCFD FUNDING 773,946.00
SAN FRANCISCO WATER PAYMENTS 841,537.72
TOTAL COST OF GOODS & SERVICES TO BE APPROVED $5,000,860.92

FINANCE DIRECTOR DATE

CITY MANAGER DATE
DURING THE MONTH OF SEPTEMBER 2025

SUMMARY OF PURCHASES

TOWN OF HILLSBOROUGH
Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF 10/7/2025
10/7/2025
-27-

COMPARATIVE SUMMARY
For the Month of September 2025
Sep-25 Sep-24 Sep-23
Goods & Services Purchased:

Operations 1,626,031.58 1,199,416.52 1,458,571.17
Capital 426,117.51 600,488.90 600,903.25
Net Salaries & Taxes Paid 1,136,213.92 1,058,522.01 1,421,801.92 Health Benefit Premiums 197,014.19 189,035.29 168,493.00 CCFD Funding 773,946.00 743,775.00 703,368.00
San Francisco Water Payments 841,537.72 895,564.03 857,802.14 Total $5,000,860.92 $4,686,801.75 $5,210,939.48
NOTES:

Operations -
payments in September 2025, such as the City of San Mateo for library services, the City of Burlingame for library services and wastewater treatment, Cities Group and PG&E.

Capital -
CCFD -
Water -
lower units purchased, somewhat offset by the SFPUC rate increase.

FY 25/26 spending is consistent with FY 24/25 spending except for timing of reoccurring Capital project spending in September 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 Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -28-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING SEPTEMBER 2025
CK # VENDOR DESCRIPTION AMOUNT
18076 4LEAF, INC. JUL '25 BUILDING PERMIT TECH SERVICES BP 14,620.00 18077 ACTION TOWING AND ROAD SERVICE TOW - FREIGHTLINER #570 PW 1,485.00 18078 ADP, LLC AUG '25 MASTERTAX SOFTWARE SUPPORT FN 90.60 18079 ALEXANDER & ASSOCIATES, INC. LAND SURVEY BRIDGE PERMIT PW 1,225.00 18080 ALL GUARD ALARM SYSTEMS, INC FEE - RADIO MONITORING 6/17/25-9/30/25 180.26 18081 ANN STAR FORMAN FEE - NOTARY SERVICES AUG '25 BP 75.00 18082 ARAMARK SERVICES, INC MAINT - COFFEE MACHINE BP 116.59 18083 AT&T 7/17/25-8/16/25 PD 62.50
18084 BARTLEY PUMP PM, LLC MAINT - PUMP HAYNE PW 881.25 18085 BAY PRO SEP '25 LANDSCAPE MAINT VARIOUS SITES HBF 3,187.00 18086 BAYSIDE BUILDING MATERIALS INC MATERIALS - VARIOUS ITEMS PW 1,460.60 18087 BOSCO OIL COMPANY GAS PD 1,180.77
18088 CENTRAL COUNTY FIRE DEPARTMENT SEP'25 FISCAL CONTRIBUTION 773,946.00 18089 CHARGELINK LLC MAINT - JUL '25 EV STATIONS PW 1,300.00 18090 CITY OF SAN MATEO JUN '25 LIBRARY SERVICES CM 24,786.88 18091 CIVICPLUS SOFTWARE-MUNICODE ORBANK/ORDLINK 8/1/25-7/31/26 CL 7,100.76 18092 CLARK PEST CONTROL PEST CONTROL -PW 140.00
18093 COUNTY OF SAN MATEO INFORMATION SERVICES DEPT. JUL'25 MICRO CHANNEL LINES PD 82.25 18094 CSG CONSULTANTS, INC. CIP ADM SEWER 7/1/25-7/25/25 & VARIOUS PRJ PW 86,359.53 18095 CUSTOM TOPS INC INSTALL - OUTFITTING 2025 F150 PD 9,896.09 18096 CYNTHIA RICHARDSON CONSULT - AUG '25 PLANNER SERVICES BP 9,067.50 18097 DAN OKANO SUPPLIES - OIL PW 39.30
18098 DEBORAH YACOBELLIS CONSULT - CRW/TRACK IT JUL '25/AUG '25 BP 6,973.50 18099 DEGREE HVAC, INC REPAIR - HVAC FIRE STATION #33 PW 1,100.00 18100 EXXELL CORPORATION MAINT - FIRE EXTINGUISHERS PW 2,170.89 18101 FASTENAL COMPANY SUPPLIES - PERSONNEL PROTECTIVE EQUIP PW 1,184.73 18102 FLOWATER MAINT - REPLACE WATER FILTER FN/BP/CM 1,148.44 18103 GELCO SUPPLY INC SUPPLIES - ROOTX GREASER PW 2,517.88 18104 GOLDFARB LIPMAN ATTORNEYS JUL '25 LEGAL SERVICE HOUSING ELEMENT BP 135.00 18105 GOVERNMENT TAX SEMINARS, LLC TRAIN - 2025 GOV TAX & EMPLOYEE BENEFIT HOBBS FN 550.00 18106 GRAINGER SUPPLIES - SPRAY PAINT PW 279.94
18107 GRANITE ROCK COMPANY MATERIALS - ASPHALT PW 551.41 18108 INTERSTATE TRAFFIC CONTROL PRODUCTS, INC. PARTS - CUSTOM SIGNS/POST CAPS PW 7,710.94 18109 INTERWEST CONSULTING GROUP AUG '25 BUILDING INSPECTOR SERVICES BP 2,000.00 18110 JAMES WILLIAM NESS ANNUAL TEST/REPAIR BACKFLOW UNITS PW 8,315.00 18111 LEADERSHIP COUNCIL SAN MATEO COUNTY FEE - LEADERSHIP TRAINING SESSIONS CO 400.00 18112 LITTLER, MENDELSON, P.C. LEGAL SERVICES JUL '25 CM 952.50 18113 CALIFORNIA METRO MOBILE COMMUNICATIONS INC INSTALL - RADIO #350 PW 757.34 18114 MOORE, IACOFANO GOLTSMAN, INC CONSULT - EIR ASSESSMENT BP 4,053.75 18115 MURRAYS TRUCK & AUTO REPAIR INC MAINT - FORD F-350 TRUCK #314/321 PW 3,581.17 18116 NAPA AUTO PARTS - BURLINGAME SUPPLIES - BLUE DEF PW 85.45 18117 NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL SCIENCE 2025 STREET RESURFACE MATERIAL TESTING PW 4,855.00 18118 NORCAL RENTAL GROUP LLC SUPPLIES - PROPANE PW 70.36 18119 JONATHAN & CHARLOTTE SOJA REFUND - BUILD DEPOSIT BP 7,787.50 18120 KENNETH Y HAO TR REFUND - GRADE DEPOSIT BP 95,841.68 18121 MATTHEW D WUEBBLING & MARY L BURGESS REFUND - GRADE DEPOSIT BP 7,500.00 18122 RG DEVELOPMENTS REFUND - BUILD DEPOSIT BP 34,522.50 18123 RIVER ENGINEERING INC. REFUND - PERMIT FEE PARTIAL BP 146.00 18124 VICTOR F HUNG TR REFUND - PERMIT FEE VOID BP 916.80 18125 CHRIS SMITH REIMB - TRAVEL EXP PER DIEM BALANCE FY25 PD 249.00 18126 DOUG BELCIK REIMB-TRAVEL EXP APWA CONFERENCE 8/17/25-8/20/25 1,698.48 18127 MARK ARMANINO REIMB - WORK BOOTS PW 300.00
18128 MICHAEL SHIGEZANE REBATE -ELECTRIC LEAF BLOWER PW 100.00 18129 AIDA & HANS KEDEFORS REFUND - WATER ACCOUNT BALANCE FN 500.00 18130 ANGELA SHEN REFUND - WATER ACCOUNT BALANCE FN 500.00 18131 BARBI LAZAROW REFUND - WATER ACCOUNT BALANCE FN 111.99 18132 CRAIG RANIER GADDUANG REFUND - WATER ACCOUNT BALANCE FN 469.64 18133 EDMOND WU REFUND - WATER ACCOUNT BALANCE FN 245.26 18134 KRISTIN LINTHWAITE REFUND - WATER ACCOUNT BALANCE FN 469.64 18135 KYLE SPAINHOUR REFUND - WATER ACCOUNT BALANCE FN 161.00 18136 LARA BRUMLOW REFUND - WATER ACCOUNT BALANCE FN 321.16 18137 NEIL BARAKAT REFUND - WATER ACCOUNT BALANCE FN 389.47 18138 PAGE & TURNBULL, INC HISTORICAL DESIGN REVIEW BP 5,200.00 18139 PENINSULA CONFLICT RESOLUTION CENTER 25/26 COMMUNITY MEDIATION SERVICES CM 2,773.35 18140 PETERSON POWER SYSTEMS, INC. MAINT - SKID STEER #E12 PW 1,237.32 18141 PG & E 7/1/25-7/30/25 MULTIPLE ACCOUNTS 10,912.21 18142 PRIORITY 1 MAINT - AUG'25 MULTIPLE VEHICLES PD 3,000.00 18143 QUENCH USA, INC EQUIP - WATER STATION 8/28/25-9/27/25 PD 190.93 Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -29-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING SEPTEMBER 2025
18144 SAGE VETERINARY CENTERS LP K-9 VET SERVICES - PD 7,149.15 18145 SAN MATEO COUNTY DEPARTMENT OF PUBLIC WORKS REIMB - SEWER SERVICE METAXAS 7/23-6/25 PW 9,141.75 18146 SAN MATEO COUNTY ENVIRONMENTAL SERVICES AGENCY FEE - GENERATOR FUEL STORAGE MULTIPLE LOCATIONS PW 5,459.00 18147 SAN MATEO LOCK WORKS, INC. KEYS PW 117.90
18148 SAN MATEO LUMBER CO., INC SUPPLIES - STRETCH FILM PW 27.05 18149 SPOTLIGHT IMPRESSIONS, INC PRINT - EMPLOYEE NAME BADGES STAFF AD 50.41 18150 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 93.55 18151 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR CERT D1 STAFF PW 70.00 18152 SUN RIDGE SYSTEMS, INC 2025 RIMS USERS CONFERENCE STAFF PD 2,750.00 18153 T-MOBILE USA INC. 7/21/25-8/20/25 PD 163.60
18154 TEAGLACH LLC UNIFORM - CARRIER VESTS STAFF PD 5,638.38 18155 THE CITIES GROUP INSURANCE JUL-DEC'25 WORKERS' COMP/SAFETY ASSESSMENT 158,029.06 18156 THE PERMANENTE MEDICAL GROUP, INC EMPLOYEE PHYSICAL STAFF PD 119.00 18157 THIRKETTLE CORPORATION PARTS - HYDRANT METER DIAL PW 1,179.07 18158 TRUCKVAULT, INC EQUIP - TRUCK VAULT FOR VEHICLE STAFF PD 5,639.09 18159 ULINE, INC. SUPPLIES - SHELVING/HOOKS PW 1,286.70 18160 UNDERGROUND REPUBLIC WATER WORKS, INC PARTS - SWIVEL JOINTS PW 1,302.51 18161 UNITED LABORATORIES SUPPLIES - SEWER LIFT-ZYME PW 3,838.00 18162 UNITED SITE SERVICES, INC. PORT-POTTY RENTAL - WORK FURLOUGH 4/28/25-7/31/25 1,548.38 18163 UNLIMITED TOOL & EQUIPMENT REP SUPPLIES - WATER PUMP PW 2,823.86 18164 VIKING SHRED LLC SEP'25 DESTRUCTION SERVICES PD 92.99 18165 ADP, LLC SEP '25 MASTERTAX SOFTWARE SUPPORT FN 90.60 18166 AIXTEK AUG '25/SEP '25 MANAGEMENT SERVICE IT 74,660.00 18167 ALTA PLANNING DESIGN, INC BICYCLE/PEDESTRIAN MASTER PLAN - PHASE 2 PW 2,731.96 18168 AMAZON WEB SERVICES, INC AUG '25 - BACKUP STORAGE IT 18,104.76 18169 AMERICAN WATER COLLEGE, LLC SOFTWARE - WATER TRAINING HUB PW 259.00 18170 ASSURE MSP, INC EQUIP - VERKADA CAMERAS PD 24,185.63 18171 AT&T 7/20/25-8/19/25 PD 65.62
18172 AT&T 6/20/25-7/19/25 155.40
18173 AT&T 6/19/25-7/18/25 155.40
18174 AT&T 6/20/25-7/19/25 728.02
18175 AT&T 6/19/25-7/18/25 271.21
18176 AT&T 7/10/25-8/9/25 1,759.71
18177 AT&T 8/10/25-9/9/25 PD 1,759.71
18178 AT&T 9/7/25 PD 1,082.06
18179 AUTO PRIDE CAR WASH, INC AUG'25 CAR WASHES PD 136.96 18180 BARKER BLUE DIGITAL IMAGING, INC IMAGING SVC – BINDERS MACADAMIA REPAIRS PRJ PW 472.60 18181 BARTLEY PUMP PM, LLC MAINT - PUMP MULTIPLE LOCATIONS PW 17,200.00 18182 BAY AREA AIR QUALITY MGMT. DIS PERMIT RENEWAL FEE PW 567.00 18183 BAY AREA WATER SUPPLY & CONSERVATION AGENCY WATERS LOSS CONTROL PROGRAM JUL 25' PW 410.00 18184 BOSCO OIL COMPANY GAS/DIESEL PW/PD 10,450.42
18185 MARY BRIDGET MALEY-CANNON HISTORICAL DESIGN REVIEW BP 2,400.00 18186 BURNETT LANDSCAPE DEVELOPMENT INC MAINT - AUG '25 HBF/TOWN LANDSCAPE VARIOUS SITES 10,675.90 18187 CALIFORNIA PUBLIC POLICY GROUP, INC LEGAL RETAINER AUG '25 CM 4,000.00 18188 CINTAS CORPORATION NO 3 UNIFORM CLEANING SERVICE PW 1,224.91 18189 CINTAS CORPORATION NO 3 SUPPLIES - FIRST AID KIT ALL DEPARTMENTS PW 1,279.98 18190 CITY OF BURLINGAME JUN '25 SEWER BILLING PW/AUG '25 LIBRARY SERVICES 194,725.08 18191 CITY OF SAN MATEO SEP '25 LIBRARY SERVICES CM 25,570.42 18192 CLARK PEST CONTROL PEST CONTROL - TOWN HALL PW 402.00 18193 COMCAST SEPTEMBER '25 PW 470.83
18194 CSG CONSULTANTS, INC. BUILDING PLAN/INSPECTOR SERVICES AUG '25 BP 7,267.83 18195 CUSTOM TOPS INC INSTALL - OUTFIT 2025 F150 PD 4,680.44 18196 DEBORAH YACOBELLIS CONSULT - CRW/TRACK IT OCT '24/NOV '24 BP $6,112.50 18197 DEGREE HVAC, INC REPAIR - HVAC FIRE STATION #33 PW 3,940.00 18198 DELL MARKETING L.P. EQUIP - COMPUTERS PD 8,437.58 18199 DEPARTMENT OF JUSTICE JUL'25/AUG '25 FINGERPRINT SERVICE PD 573.00 18200 EDUCATION & TRAINING SERVICES LLC TRAIN - LEADERSHIP PROGRAM STAFF PW 1,647.00 18201 ESHERICK HOMSEY DODGE AND DAVIS, ARCHITECS, PC CONSULT - AUG' 25 TOWN VISION/HOUSING ELEMENT BP 35,232.38 18202 EOA, INC JUL '25 NPDES ANNUAL REPORT PW 4,529.00
18203 ERLER & KALINOWSKI, INC ESDC KENILWORTH/MARLBOROUGH SEWER PRJ PW 3,774.18 18204 FASTENAL COMPANY SUPPLIES - PERSONNEL PROTECTIVE EQUIP PW 214.99 18205 FASTSIGNS-SAN MATEO PRINT - BANNER/SIGNS 2025 NEIGHBORFEST HNN CM 1,063.13 18206 FERGUSON US HOLDINGS, INC PARTS - VARIOUS ITEMS PW 2,726.07 18207 FLOWATER EQUIP - AUG '25 WATER STATION CM/SEP '25 WATER FN 311.72 18208 FOLGER GRAPHICS, INC PRINT - QUARTERLY NEWSLETTERS Q3 2025 CM 4,740.00 18209 FREYER & LAURETA, INC HIGH LINE WATER PRJ DESIGN PW 187,018.56 18210 GEVEKO MARKINGS, INC SUPPLIES - OPTAMARK PAVEMENT MARKINGS PW 545.49 18211 GLENN BERKHEIMER SEP '25 LABOR RELATIONS HR 1,700.00 18212 GO NATIVE, INC MAINT - VEGETATION MANAGE VARIOUS SIGHTS PW 9,195.00 18213 GOOD CITY COMPANY CONSULT - AUG '25 PLANNER SERVICES/HOUSE ELMNT 7,365.00 18214 GRAY'S PAINT & WALLPAPER OF THE PENINSULA, INC SUPPLIES - PAINT/VARIOUS ITEMS PW 91.43 Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -30-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING SEPTEMBER 2025
18215 HDL, COREN & CONE 2024-25 ACFR STATISTICAL REPORTS PACKAGE FN 795.00 Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -31-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING SEPTEMBER 2025
18216 ISSQUARED, INC SOFTWARE- 25/26 PALO ALTO THREAT PREVENT/FILTER 3,502.14 18217 KEVIN KASHIWAHARA BACKGROUND INVESTIGATION NEW HIRE PD 1,500.00 18218 MIDWEST MOTOR SUPPLY CO, INC SUPPLIES - GLOVES PW 364.42 18219 KRONOS SAASHR, INC. AUG'25 PAYROLL PROCESSING FN 2,210.72 18220 LAWRENCE KOBERNUS JUN-JUL '25 OPEN SPACE/SEWER VEGETATION MANAGE PW 17,218.75 18221 LEADERSHIP COUNCIL SAN MATEO COUNTY FEE - LEADERSHIP TRAIN SESSION CO 450.00 18222 LIEBERT CASSIDY WHITMORE MEMBERSHIP - SAN MATEO CO ERC 7/1/25-6/30/26 HR 6,965.00 18223 MARK D HUDAK LEGAL SERVICES - AUG 2025 CM 5,795.00 18224 MAYNE TREE EXPERT CO., INC. MAINT - TREE TRIMMING HILLSBOROUGH/W.SANT INEZ/DARRELL HBF 1,680.00 18225 MOORE, IACOFANO GOLTSMAN, INC CONSULT - EIR ASSESSMENT BP 9,440.21 18226 MUNICIPAL RESOURCE GROUP LLC AUG '25 HR SERVICES CM 3,250.00 18227 NAPA AUTO PARTS - BURLINGAME SUPPLIES - GLASS CLEANER PW 72.26 18228 NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL SCIENCE 2025 STREET RESURFACE MATERIAL TESTING PW 15,163.13 18229 ANKAR CYCLES INC REPAIR - ABS HARNESS WIRES MOTORCYCLE PD 194.00 18230 OCCUPATIONAL HEALTH CENTERS OF CALIFORNIA, A EMPLOYEE PHYSICAL PW 141.00 18231 ODYSSEY POWER CORPORATION MAINT - GENERATOR PD 861.00 18232 HJANE SUNG & LOREN M CORTINA REFUND - BUILD DEPOSIT BP 16,103.50 18233 MICHAEL DING REFUND - GRADE DEPOSIT BP 15,000.00
18234 NICOLAS COURTOT REFUND - BUILD DEPOSIT BP 21,822.50 18235 OLIVER ZEE REFUND - BUILD DEPOSIT BP 6,993.00
18236 SRIRAM VISWANATHAN REFUND - ADM/PUBLIC NOTICE FEES BP 224.00 18237 STANLEY KONG REFUND - BUILD DEPOSIT BP 28,592.50
18238 TYLER J & ELAINE GOLDMAN REFUND - LS BUILD DEPOSIT BP 2,000.00 18239 CHRISTINE GATZMAN REIMB - TRAVEL EXP CCUG TRAINING 9/8-13/25 PD 2,051.17 18240 ROBERT DEAN REIMB - FINGERPRINT SERVICE FEE HR 90.00 18241 TYLER GEIGER REIMB-TRAVEL EXP SUPERVISOR SCHOOL 6/2-13/25 PD 1,568.60 18242 CARLSON LI REBATE -ELECTRIC LEAF BLOWER PW 100.00 18243 CYRACOM INTERNATIONAL, INC OPI INTERPRETATION SERVICES (CANTONESE) PD 4.83 18244 FIRST RESPONDER SUPPORT NETWORK INC TRAIN -WCPR CLASS/FACILITIES 10/19-24/25 STAFF PD 5,500.00 18245 KAMAL SHAMASH REBATE -ELECTRIC LEAF BLOWER PW 100.00 18246 KAREN WONG REBATE -ELECTRIC LEAF BLOWER PW 100.00 18247 KATHERINE CEREMSAK REBATE -ELECTRIC LEAF BLOWER PW 100.00 18248 PERFORMA LABS INC TRAIN - DE-ESCALATE COURSES 9/1/25-2/28/26 PD 8,910.00 18249 STEVEN SHAK REBATE -ELECTRIC LEAF BLOWER PW 100.00 18250 OWEN EQUIPMENT COMPANY PARTS - BALL VALVE PW 278.91 18251 PG & E 7/31/25-8/28/25 MULTIPLE ACCOUNTS 89,049.85 18252 POWER DMS, INC SOFTWARE - POWERTIME SUBSCRIPTION 11/1/25-10/31/26 2,635.09 18253 PRIORITY 1 REPAIR- MULTIPLE VEHICLES PD 19,424.53 18254 QUADIENT LEASING USA, INC POSTAGE METER LEASE 6/30/25 - 9/29/25 FN 532.59 18255 RED WING SHOE STORE WORK BOOTS - STAFF PW 2,400.00 18256 RICE TRUCKING-SOIL FARM SUPPLIES - CRUSHED/BASE ROCK PW 2,085.14 18257 ROMEL 400 LLC RENT - OCT'25 RADIO BASE STATION RECEIVER PD 343.20 18258 SAN MATEO COUNTY SHERIFF'S OFFICE FEE- 25/26 SMC NAROTICS TASK FORCE CONTRIBUTION 29,745.00 18259 SAN MATEO LUMBER CO., INC MATERIALS - VARIOUS ITEMS PW 446.35 18260 SCOTT BUSCHMAN PHOTOGRAPHY - DEPARTMENT PHOTOS PD 1,581.25 18261 SIEMENS INDUSTRY, INC MAINT - ALARM PANEL PD 1,114.00 18262 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 534.53 18263 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR EXAM D1 STAFF PW 50.00 18264 STATE WATER RESOURCES CONTROL BOARD - DWOCP FEE - WATER OPERATOR EXAM D2 STAFF PW 45.00 18265 TEAGLACH LLC UNIFORM - CARRIER VESTS STAFF PD 2,819.19 18266 TELECOMMUNICATIONS ENGINEERING ASSOCIATES SEP'25 COMM CENTER/BASE PD 3,334.00 18267 TETRA TECH INC DARRELL SITE SCADA SUPPORT PW 8,370.00 18268 THOMSON WEST AUG'25 INVESTIGATIVE WEBSITE PD 1,170.90 18269 TIMBERLINE TREE SERVICE, INC. MAINT - TREE REMOVAL BELAIRE PW 1,200.00 18270 TURBO DATA SYSTEMS, INC. SEP'25 CITATION PROCESSING & SCANNER PD 1,693.29 18271 ULINE, INC. SUPPLIES - CHAIR STORAGE/WALL MOUNTS PW 1,734.96 18272 UNDERGROUND REPUBLIC WATER WORKS, INC PARTS - VARIOUS ITEMS PW 9,765.81 18273 UNTETHERED LABS, INC SOFTWARE - GATEKEEPER LICENSE (ANNUAL) PD 9,213.20 18274 VERIZON WIRELESS 8/7/25-9/6/25 MULTIPLE ACCOUNTS PD/PW 1,881.50 18275 WECO INDUSTRIES, LLC EQUIP - WARTHOG NOZZLES PW 17,990.88 18276 WITMER-TYSON IMPORTS, INC. JUN'25/JUL'25 K-9 TRAINING PD 2,763.00 18277 WRA, INC MACADAMIA ACCESS ROAD BIOLOGICAL REVIEW PW 2,554.75 18278 ZASIO ENTERPRISES, INC. SOFTWARE - 25-26 VERSATILE SYSTEM & SUPPORT FN 2,625.00 TOTAL GOODS & SERVICES FOR THE MONTH PAID BY CHECK $2,452,244.69 CALPERS RETIREMENT CONTRIBUTIONS 242,910.77
VISA PAYMENTS 36,935.43
RETIREE HEALTH REIMBURSEMENTS 93,304.20
OTHER ELECTRONIC PAYMENTS 700.00
Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -32-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING SEPTEMBER 2025
TOTAL GOODS & SERVICES FOR THE MONTH $ 2,826,095.09
Docusign Envelope ID: C0E1430C-FCC4-4CEA-9177-621C0C1B93AF -33-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Quarterly Treasurer's Report for the Quarter Ending September 30, 2025 SUMMARY: Government Code Section 53646(b) requires that the Quarterly Investment Report be rendered to the City Council during public session within 45 days of the quarter's end.

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

ENVIRONMENTAL ISSUES: The proposed action 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 in the environment.

ATTACHMENTS: Quarterly Treasurer's Report
PREPARED BY: Richard Santiago, Assistant Finance Director RECOMMENDATION: Approve the Treasurer's Report for the quarter ending September 30, 2025.
-35-
Purchase Maturity Days to Amortized/Fair/ Coupon Valuation Issuer Type Date Date Maturity Cost Par Value Market Value Rate Yield Source LAIF On demand 67,162,557 67,162,557 67,243,039 4.2510% 1 Sec 115 Benefit Trust Company 6,732,522 6,732,522 6,732,522 1.9000% 3 Cash on Hand 8,300 8,300 8,300
Checking Account On demand 4,315,048 4,315,048 4,315,048 0.0100% 3 US Bank Custodial Account 293,942 293,942 293,942 0.0000% 4 Sub-total 78,512,368 78,512,368 78,592,850
INVESTMENTS: Cost Market Value
United States Treasury TN 9/1/2023 3/31/2028 913 175,313 200,000 188,782 1.3200% 3 United States Treasury TN 9/1/2023 5/31/2028 974 174,688 200,000 188,016 1.3300% 3 United States Treasury TN 3/18/2022 12/31/2026 457 192,500 200,000 194,054 1.2900% 3 United States Treasury TN 3/18/2022 1/31/2027 488 194,625 200,000 194,334 1.5400% 3 United States Treasury TN 12/8/2022 8/15/2026 319 184,438 200,000 196,136 1.5300% 3 United States Treasury TN 12/8/2022 5/15/2026 227 185,938 200,000 197,342 1.6500% 3 United States Treasury TN 3/17/2025 2/15/2029 1234 189,375 200,000 193,516 2.7100% 3 United States Treasury TN 9/1/2023 5/31/2027 608 188,000 200,000 196,688 2.6700% 3 United States Treasury TN 3/31/2025 2/15/2028 868 192,828 200,000 196,040 2.8100% 3 United States Treasury TN 7/19/2022 11/30/2025 61 198,570 200,000 199,596 2.8800% 3 United States Treasury TN 9/1/2023 8/31/2027 700 191,250 200,000 198,148 3.1500% 3 United States Treasury TN 12/20/2023 11/15/2028 1142 438,094 450,000 443,147 3.1700% 3 United States Treasury TN 4/17/2025 3/31/2028 913 199,703 200,000 200,054 3.6200% 3 United States Treasury TN 4/17/2025 3/31/2030 1643 197,766 200,000 199,180 3.6400% 3 United States Treasury TN 4/17/2025 4/15/2028 928 200,313 200,000 200,610 3.7400% 3 United States Treasury TN 7/24/2025 7/15/2028 1019 251,230 250,000 251,620 3.8500% 3 United States Treasury TN 9/1/2023 11/30/2027 791 196,813 200,000 201,054 3.8500% 3 United States Treasury TN 9/1/2023 2/29/2028 882 397,914 200,000 403,532 3.9600% 3 United States Treasury TN 4/17/2025 3/31/2029 1278 202,406 200,000 203,046 4.0600% 3 United States Treasury TN 10/23/2023 7/31/2028 1035 194,625 200,000 202,656 4.0700% 3 United States Treasury TN 3/3/2025 2/28/2029 1247 201,156 200,000 203,804 4.1700% 3 United States Treasury TN 6/8/2023 10/25/2025 25 199,813 200,000 200,000 4.2500% 3 United States Treasury TN 12/8/2022 11/15/2025 46 203,125 200,000 200,086 4.5000% 3 Sub-Total 4,950,480 4,900,000 5,051,441 2.9300%
GRAND TOTALS 83,462,849 83,412,368 83,644,291
LEGENDS:

LAIF Local Agency Investment Fund (State of CA) LAIF Quarterly Performance Report 1 SMCP San Mateo County Pool SMCP report 2
MMF Money Market Fund Custodian Bank/Trust statement 3
BA Bankers' Acceptance Broker/Dealer market information 4 CP Commercial Paper Other Sources: Newspaper, other 5
TCD Time Certificate of Deposit Amortized Cost 6
NCD Negotiable Certificate of Deposit
TB Treasury Bill
TN Treasury Note
All funds are invested in accordance with the Town of Hillsborough's Investment Policy as approved by the City Council. Sufficient funds are available to meet the Town's expenditures for a six-month period. This report is prepared pursuant to Government Code Section 53646. LAIF Market Value is left at Cost Value because reports are not available.

Prepared by: Rich Santiago, Assistant Finance Director
Date
Approved by: Jan Cooke, Finance Director
Date
Town of Hillsborough
Report on Cash and Investments Held As of Quarter Ended September 30, 2025

TYPE OF INVESTMENTS VALUATION SOURCE
Docusign Envelope ID: 35F59C16-3E3C-4A52-953A-C4E7D773C544 10/7/2025
10/7/2025
-36-
RECAP: Purchase Price % to Total TOH Restriction 1st Quarter* Year To Date LAIF Local Agency Investment Fund $ 67,162,557 80.5% None 713,770 713,770 TCD Time Certificate of Deposit $ - 0.0% None
NCD Negotiable Certificate of Deposit $ - 0.0% None - - TB Treasury Bills $ - 0.0% None
TN Treasury Notes $ 4,950,480 5.9% None 52,395 52,395
CP Commercial Paper $ - 0.0% None
BA Bankers Acceptances $ - 0.0% None
CA Checking/Sweep Account $ 4,315,048 5.2% None 1,618 1,618 CUS Custodian Account $ 293,942 0.4%
COH Cash on Hand $ 8,300 0.0% None
Section 115 Trust $ 6,732,522 8.1% None 38,906 38,906
Sub-total $ 83,462,849 100%
Trustee - Bond Funds
Bond Funds - Investments
Total $ 83,462,849 806,689 806,689
Maturity of 2 years and under $ 68,900,815 82.6% -
Section 115 Trust $ 6,732,522 8.1% -
CA Checking/Sweep Account $ 4,315,048 5.2% -
CUS Custodian Account $ 293,942 -
COH Cash on Hand $ 8,300 0.0% -
Sub-total $ 80,250,626 95.8%
Maturity from 2-5 years $ 3,212,223 3.8%
Sub-total - Town Funds $ 83,462,849 100%
Bond Funds
Trustee - Bond Funds
Total Portfolio $ 83,462,849
TOTAL INVESTMENTS $ 78,845,559
CASH/CHECKING/MMA $ 4,617,290
TRUSTEE BOND FUNDS $ -
$ 83,462,849
*Estimate $ -
Investment Income
For Quarter Ending September 30, 2025

INVESTMENT RECAP

TOWN OF HILLSBOROUGH
Docusign Envelope ID: 35F59C16-3E3C-4A52-953A-C4E7D773C544 -37-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

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

Attachment 2 includes advocacy letters submitted by the Town since the September 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. September 2025 CPPG Legislative Summary

2. Letters Submitted Since September 8, 2025 City Council Meeting PREPARED BY: Lisa Natusch, City Clerk
RECOMMENDATION: Receive the September 2025 Legislative Update. -39-
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 1 Date: October 2, 2025
To: Doug Davis, Town Manager
Town of Hillsborough
From: Dane Hutchings
Founder + CEO
California Public Policy Group
Re: CPPG Legislative Summary — September 2025

LEGISLATIVE UPDATE
Legislature Closes Out First Year of 2025-26 Session
At around 3 p.m. on Saturday, September 13, the Legislature adjourned the first year of its two-year legislative session. The final two weeks were hectic, with Floor session held nearly every day and hundreds of bills advancing through the Legislature on or before the last day of session. On September 10, the Legislature waived its standing rules to allow amendments beyond the deadline and extend its session by one day. The extension ensured compliance with a provision in the California Constitution that requires that any bill be available online for at least 72 hours before a final vote. The bills amended after the deadline addressed affordability, including gasoline and energy costs, and greenhouse gas emissions targets.

During the first year of the session, a total of 2,833 measures were introduced, with roughly 900 bills advancing through the Legislature to reach the Governor’s desk for consideration. This ratio is generally consistent with prior years of Governor Newsom’s tenure. The one-day extension of the legislative session has moved the Governor’s deadline to act on all bills to October 13, delaying a comprehensive assessment of the 2025 legislative outcomes until then. If the Governor takes no action by the deadline, a bill becomes law by default—an option rarely exercised. Unless otherwise specified, newly enacted laws will take effect on January 1, 2026.

As of October 2, 644 bills remain pending on the Governor’s desk, while 448 have been chaptered and 22 have been vetoed.

The period between the last day of session this year and the first day of session next year, formally known as the “Interim Study Recess,” is when legislators set their priorities for the coming year, prepare to introduce new bills, and advance any two-year bills still in play. This period also provides an opportunity for agencies to review their legislative platforms, assess potential bill sponsorship, and consider state budget requests for the coming year.

Cap-and-Trade Reauthorization
On September 19, Governor Newsom announced that he had signed several pieces of legislation to “bring down electricity costs, stabilize the petroleum market and slash air pollution.” The signed legislation included two measures that extend and amend the state’s Cap-and-Trade Program, which is funded through the Greenhouse Gas Reduction Fund and administered by the California Air Resources Board. AB 1207 (Irwin) [Chapter 117, Statutes of 2025] reauthorizes the Program—now renamed Cap-and-Invest—extending it through 2045. SB 840 (Limón) [Chapter 121, Statutes of -40-
ATTACHMENT 1
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 2 2025] establishes the expenditure plan for the Program, allocating $1 billion annually to High-Speed Rail and an additional $1 billion in the 2026-27 fiscal year for various purposes. Although a cap-andtrade agreement had been expected since the beginning of the year, negotiations continued through much of the legislative session and remained unresolved into late August. Toward the close of the legislative session, lawmakers finalized an agreement linking the long-term extension in AB 1207 with the detailed expenditure plan set forth in SB 840.

ADMINISTRATION UPDATE
State of the State
On September 9, Governor Gavin Newsom released his annual State of the State letter. The letter touched upon major policy themes of the year, including housing, wildfire mitigation, congressional redistricting, and affordability. It also celebrated the 175th anniversary of California’s admission to the Union. Although typically delivered in person at the start of the legislative session, this year the Governor chose to briefly reflect on the letter in a recorded video.

Executive Order on the Insurance Market
On September 30, Governor Newsom announced that he had signed an executive order to “expedite the state’s response to mitigate the impacts and fairly allocate the costs of natural disasters and further stabilize the insurance market and energy utility sector.”

ACTIVE POSITIONED LEGISLATION
• AB 1 (Connolly) Residential property insurance: wildfire risk.  Location: Assembly Enrolled
 Position: Support
• AB 370 (Carrillo) California Public Records Act: cyberattacks.  Location: Assembly Chaptered
 Position: Support
• AB 468 (Gabriel) Crimes: looting.
 Location: Assembly Enrolled
 Position: Support
• AB 544 (Davies) Electric bicycles: required equipment.  Location: Assembly Chaptered
 Position: Support
• AB 620 (Jackson) Medium- and Heavy-Duty Zero-Emission Vehicle Fleet Purchasing Assistance Program: rental vehicles.
 Location: Assembly Enrolled
 Position: Support
• AB 650 (Papan) Planning and zoning: housing element: regional housing needs allocation.  Location: Assembly Enrolled
 Position: Support
• SB 63 (Wiener) San Francisco Bay area: local revenue measure: public transit funding.  Location: Senate Enrolled
 Position: Watch
• SB 454 (McNerney) State Water Resources Control Board: PFAS Mitigation Program.  Location: Senate Vetoed
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1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 3  Position: Support
• SB 682 (Allen) Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances.
 Location: Senate Enrolled
 Position: Support
• SB 707 (Durazo) Open meetings: meeting and teleconference requirements.  Location: Senate Enrolled
 Position: Oppose

LOOKING FORWARD
• October 13: 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 -42-

TOWN OF HILLSBOROUGH
California
Town Hall
Phone: 650-375-7400 | Fax: 650-375-7475 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net October 3, 2025
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Senate Bill 682 (Allen) – Request for Signature
Dear Governor Newsom:

On behalf of the Town of Hillsborough, we write to respectfully request your signature on 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 Polyfluoroalkyi substances (PFAS) 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 PFAS compounds in people's bodies and in the environment. A statewide source control approach is necessary to systematically remove PFAS 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 PFAS 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 PFAS 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 PFAS 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, USEPA adopted Maximum Contaminant Levels (MCLs) for 6 PFAS 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 MCL for PFAS consistent with the adopted Federal MCL. Drinking water MCLs are highly consequential for the regulated water community, including wastewater agencies, as they are often -43-
ATTACHMENT 2
October 3, 2025
SB 682 – Request for Signature

incorporated “by reference” into existing Basin Plans, thus imposing de facto limits for discharges to certain bodies of water. Removing PFAS 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 PFAS 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 (MCL) for a handful of PFAS 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.

Sincerely,
Sophie Cole
Mayor
cc: The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom -44-

TOWN OF HILLSBOROUGH
California
Town Hall
Phone: 650-375-7400 | Fax: 650-375-7475 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net October 3, 2025
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Senate Bill 707 (Durazo) - Request for Veto
Dear Governor Newsom:

On behalf of the Town of Hillsborough, I am writing to respectfully request your veto on Senate Bill (SB) 707, which proposes broad mandates related to public meeting access and teleconferencing requirements under the Brown Act. While we support the goal of increased transparency and public participation, the bill imposes significant operational and fiscal burdens on local governments and removes important flexibility currently available to cities.

SB 707 would require all Town council meetings to include real-time public participation via two-way telephonic or audiovisual platforms. While Hillsborough has voluntarily provided hybrid meetings since the pandemic, codifying this approach as a statewide mandate eliminates local discretion and could significantly increase staff workload, overtime costs, and technological demands. Additionally, managing virtual public comment can introduce challenges, including repeat speakers, inappropriate content, and security concerns that are harder to control in remote environments.

The bill also introduces ambiguity around accommodations for members with disabilities. We support remote participation for those with qualifying needs, but SB 707 lacks clarity regarding the process and compliance expectations.

Further, SB 707 would require that the public be allowed to post their own translations of agendas in any language. While we appreciate the intent, the possibility of abuse is high. There is no limit to the number of alternative translations that could be posted, and the Town has limited space on its posting board. Although the Town would not be liable for any inaccurate translations, there is still the potential for bad actors to create confusion with intentionally misleading translations.

We believe that the goals of transparency and accessibility can be achieved without a rigid, one-size-fits-all approach. SB 707 would significantly expand state-imposed mandates without offering the necessary flexibility or support for effective implementation.

For these reasons, the Town of Hillsborough must respectfully request your veto of SB 707. Should you have any questions, please contact our legislative advocate Dane Hutchings or Claire Sullivan with California Public Policy Group at 916-974-9270.
-45-
October 3, 2025
SB 707 – Request for Veto

Sincerely,
Sophie Cole
Mayor
cc: The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom -46-

TOWN OF HILLSBOROUGH
California
September 23, 2025
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
RE: Assembly Bill 1 – Request for Signature
Dear Governor Newsom:

On behalf of the Town of Hillsborough, we write to respectfully request your signature on 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 Hillsborough 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 (CalFire) and the Office of the State Fire Marshal.

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. AB 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 respectfully request your signature on AB 1. Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

Sincerely,
Sophie Cole
Mayor
cc: 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 | Fax: 650-375-7475 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net -47-

TOWN OF HILLSBOROUGH
California
Town Hall
Phone: 650-375-7400 | Fax: 650-375-7475 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net September 23, 2025
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Assembly Bill 650 (Papan) – Request for Signature
Dear Governor Newsom:

On behalf of the Town of Hillsborough, I am writing to respectfully request your signature on Assembly Bill (AB) 650, which would which would allow local governments to begin the housing element update process six months early, provide greater certainty and reduce ambiguity in the housing element review process, and ensure that local governments have adequate time to respond to the California Department of Housing and Community Development's (HCD) review letters.

Since 1969, California's local governments have planned and selected sites for housing at all income levels through the housing element portion of a local government's general plan. Every five to eight years, local governments are required to adopt a blueprint outlining where developers can or cannot build residential developments within their respective communities and obtain certification from HCD. Local governments plan for their fair share of housing development as determined through the Regional Housing Needs Allocation (RHNA) process. As part of this complex process, local governments submit in their housing elements a variety of essential data, actions, and programs to promote fair, equitable, and affordable housing in their community. Currently, local jurisdictions are planning and zoning for nearly 2.5 million additional homes statewide.

During the 6th RHNA cycle, local governments experienced various challenges in obtaining certification from Hill. Some of the challenges include a short timeline for completing these complex documents and responding to HCD's feedback, a lack of clarity regarding what the state expects from local governments when reviewing additional housing element drafts, and the introduction of new requirements late in the housing element review process.

AB 650 would address these issues by allowing local governments to begin updating their housing element six months early. The bill would also require HCD to provide specific text and analysis that must be included in the housing element to remedy deficiencies, ensuring that local governments are not penalized when HCD identifies additional deficiencies not previously identified in prior review letters.

For these reasons, we respectfully request your signature on AB 650. Should you have any questions, please contact our legislative advocate Claire Sullivan or Dane Hutchings with California Public Policy Group at 916- 974-9270.
-48-
September 23, 2025
AB 650 – Request for Signature

Sincerely,
Sophie Cole
Mayor
cc: The Honorable Diane Papan, Assembly District 21
The Honorable Josh Becker, Senate District 13
Myles White, Deputy Legislative Secretary, Office of Governor Gavin Newsom -49-

TOWN OF HILLSBOROUGH
Town Hall
Phone: 650-375-7400 | Fax: 650-375-7475 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net California
September 12, 2025
The Honorable Gavin Newsom
California Governor
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Senate Bill 454 – (McNerney) – Request for Signature Dear Governor Newsom:

On behalf of the Town of Hillsborough, we write to express respectfully request your signature on Senate Bill (SB) 454, which would establish a much-needed funding framework to assist local agencies in addressing PFAS contamination in drinking water and wastewater systems throughout California.

Perfluoroalkyland polyfluoroalkyl substances (PFAS) 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 PFAS 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 PFAS-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 Hillsborough supports this legislation because it represents a fair, practical, and science-based approach to ensuring clean, safe, and affordable water for all Californians. As PFAS detection, monitoring, and compliance costs continue to rise, SB 454 will help ensure that local communities - particularly disadvantaged and overburdened ones ­ are not left behind in the state's fight for environmental and public health equity.

For these reasons, we respectfully request your signature on SB 454. Should you have any questions, please contact our legislative advocate Dane Hutchings with California Public Policy Group at 916-974-9270.

Sincerely,
Sophie Cole
Mayor
CC: The Honorable Josh Becker, Senate District 13
The Honorable Diane Papan, Assembly District 21
Brady Borcherding, Deputy Legislative Secretary, Office of Governor Gavin Newsom -50-
-51-
September 11, 2025
SB 707 - Opposition

Sincerely,
o e �
I� LO ___ , -
May; r
of Hillsborough
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 -52-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Approving and Authorizing the City Manager to Execute an Agreement with Harmonie Park Development for Professional Project Management Services for Development of the Tobin Clark Housing Site in the Amount of $539,100.00 for a Term through March 24, 2028, and Approving a FY 2025-26 Budget Amendment and Transfer as Needed in Accordance with the Project Schedule, Under CEQA Guideline 15306 BACKGROUND: The Town of Hillsborough (“Town”) has an adopted and certified Housing Element for 2023-2031, which was the result of more than two years of community input and public hearings. In the Housing Element, the 20.9-acre vacant site located within the former Tobin Clark estate was identified for the future development of 100 mixed-income units. The unit mix proposed included 33 very-low income, 6 moderate income, and 50 above moderate income units. In January 2024, the City Council rezoned a portion of the Tobin Clark site from “Open Space” to allow for these 100 residential units.

In order to achieve this vision in the required timeline, the Town sought to secure the services of a knowledgeable and qualified consultant to support the Town with the development of the Tobin Clark site and assist with site analysis and assessment, master planning, conceptual design development, environmental review, community engagement, and funding feasibility. The Town issued a Request for Proposal (RFP) on July 1, 2025, inviting proposals.

The Town’s RFP requested that each proposer develop a proposed method to achieve the following:

1. Pre-Development Strategy
• Refine the development strategy and phasing plan.
• Conduct feasibility analysis and identify early risks. • Advise Town staff and elected officials on key milestones, funding implications, and decision points.

2. Site Access and Infrastructure Coordination
• Lead technical and legal assessments related to access and utility services. • Manage negotiations and coordination with the College of San Mateo and City of San Mateo to secure ingress/egress and infrastructure solutions.

3. Consultant and Developer Procurement
• Prepare RFPs/RFQs and support the selection of the design, environmental, and technical consultant teams.
• Oversee and integrate work across all consultants.
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Agenda Staff Report - Hillsborough City Council
October 13, 2025

4. Design Management
• Lead the design process from conceptual design through construction documents. • Facilitate coordination among architects, engineers, and Town departments. • Monitor design progress, quality, and cost alignment.

5. Entitlements and Environmental Review
• Oversee CEQA/environmental compliance and related studies. • Manage entitlement processes, including public hearings and agency approvals.

6. Community and Stakeholder Engagement
The consultant will lead and coordinate all aspects of community and stakeholder engagement for the project. Responsibilities include:
• Serving as the primary point of contact for Town staff, elected officials, residents, and partner agencies
• Developing and implementing a strategic outreach and communications plan, with an emphasis on transparency, early engagement, and responsiveness to community concerns.
• Representing the Town at public meetings, stakeholder sessions, and interagency discussions, and ensuring consistent, unified messaging across all forums. • Preparing and delivering briefing materials, progress reports, and presentations tailored for Town Council, commissions, neighborhood groups, and other key audiences.
• Supporting Town staff in responding to inquiries, managing expectations, and maintaining constructive relationships throughout the project lifecycle.

7. Project Cost and Funding
As part of its core responsibilities, the selected consultant will be expected to:
• Develop a comprehensive project cost model that includes preliminary and phased cost estimates for planning, design, entitlement, infrastructure, and construction. This model should include soft costs, contingency assumptions, escalation factors, and ongoing operational considerations where relevant.
• Identify and evaluate potential public-private partnership (P3) structures that could support development objectives, reduce capital burden on the Town, and incentivize timely and high-quality delivery of affordable housing. • Identify and analyze viable funding strategies to support project implementation. This includes, but is not limited to:
o Public-private partnership (P3) models
o Federal, state, and regional affordable housing grants Infrastructure funding sources
• Advise the Town on funding feasibility and long-term financial implications associated with each strategy, including potential risks, tradeoffs, and alignment with the Town’s policy goals and legal constraints.
• Coordinate with Town staff and financial advisors, as needed, to refine funding plans and inform future Council actions.
-54-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

The Town received proposals from five firms and invited all to interview with the City Council Ad Hoc Subcommittee for the Tobin Clark Site. Two firms were invited for a second round of interviews with the Subcommittee. The interviews identified a top-rated firm; Harmonie Park Development. Harmonie Park Development stood out with their proposed approach, project team and subconsultants, and their firm’s qualifications and relevant experience.

In their proposal and during their interviews, Harmonie Park Development emphasized the project’s significance beyond filling the Town’s housing obligations, “but in shaping a lasting asset for Hillsborough’s future.” Their vision includes transforming the site into a resource that serves the broader community.

Following the RFP process and reference checks, the Ad Hoc Subcommittee recommends Harmonie Park Development to provide project management services associated with the development of Hillsborough's Tobin Clark site.

PROPOSAL:

The Harmonie Park Development proposal breaks the scope of work into four distinct phases:

Due Diligence, Master Planning, Developer Selection, and Development with phase-by-phase fee structure for transparency and to align services with the specific needs and milestones of the project and identify charges for sub-consultant work to ensure a comprehensive understanding of all project costs.

The phases: Due Diligence and Master Planning are the scope included in the draft agreement with Harmonie Park in the amount of $539,100.00.

Phase 1 – Understand the Project – Project/Site Assessment – Predevelopment Strategy This initial phase is critical for establishing a strategic foundation for the Property’s development.

Harmonie Park recognizes the Town’s interest in creating a Master Plan and will approach this phase with a focus on due diligence and early planning to assess opportunities, risks, and financial viability. Further, we will consider how the remainder Tobin Clark property will integrate with any Master Plan for the Property
Phase 2 – Master Plan
Following the preliminary master planning and feasibility findings, the Town may choose one of two paths:
• Independent Path: Proceed with developing the Master Plan and conducting the required environmental review on its own.
• Developer Partnership Path: Initiate an RFP process to select a developer who would collaborate with the Town and potentially fund future phases of work.

If the Town opts for the developer partnership route, Harmonie Park will assist in:
• Establishing RFP criteria and process for developers
• Overseeing project management to ensure alignment between the Town and the selected developer
-55-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

FISCAL IMPACT: The FY 2025-26 budget included a $140,000.00 estimate for this project. A FY 2025-26 budget amendment and transfer of $399,100.00, as needed in accordance with the project schedule, from the General Fund to the Capital Fund Project #211 is recommended for this project.

ENVIRONMENTAL ISSUES: The action to approve and authorize the execution of an agreement for a project management services is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guideline 15306 as the action constitutes information collection which will not result in a serious or major disturbance to an environmental resource. As noted in CEQA Guideline 15306, the action is strictly for information gathering purposes that will lead to a study/plan that the Town has not yet approved, adopted, or funded. Further, as part of the plan, the consultant will determine the appropriate level of CEQA review required to implement the plan and that will be considered by the Town prior to any adoption or other discretionary action regarding the plan.

ATTACHMENTS:

1. Resolution

2. Professional Services Agreement and Exhibits
PREPARED BY: Doug Davis, City Manager
RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an agreement with Harmonie Park Development for professional project management services for development of the Tobin Clark housing site in the amount of $539,100.00 for a term through March 24, 2028, and approving a FY 2025-26 budget amendment and transfer as needed in accordance with the project schedule.
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT WITH HARMONIE PARK DEVELOPMENT FOR PROFESSIONAL

PROJECT MANAGEMENT SERVICES FOR DEVELOPMENT OF THE TOBIN CLARK HOUSING SITE IN THE AMOUNT OF $539,100.00 FOR A TERM THROUGH MARCH 24, 2028, AND APPROVING A FY 2025-26 BUDGET AMENDMENT AND

TRANSFER AS NEEDED IN ACCORDANCE WITH THE PROJECT SCHEDULE, UNDER CEQA GUIDELINE 15306
WHEREAS, in order to develop a minimum of 100 units of multi-family housing required as per the Town of Hillsborough’s Certified Housing Element on the Town-owned 20.9-acre Tobin Clark site; and
WHEREAS, to achieve this vision, the Town sought to secure the services of a knowledgeable and qualified consultant to provide comprehensive project management services for the planning, entitlement, and design through a competitive Request for Proposal (RFP) process; and
WHEREAS, the Town issued an RFP on July 1, 2025, and before the proposal deadline of August 5, 2025, the Town received five submittals; and WHEREAS, the City Council Ad Hoc Subcommittee for the Tobin Clark Site conducted an analysis of the proposals received and interviewed each applicant. The interview process identified a top-rated firm; Harmonie Park Development, who was invited for an in-person interview with the Tobin Clark Ad Hoc Committee and the City Manager; and
WHEREAS, following this process and reference checks, the Ad Hoc Subcommittee is recommending Harmonie Park Development to provide project management services associated with the redevelopment of the 20.9-acre Tobin Clark site; and
WHEREAS, staff is recommending that the City Council approve and authorize the City Manager to execute an agreement with Harmonie Park Development for professional design and master planning services in the amount of $539,100.00, and approving a FY 2025-26 budget amendment; and WHEREAS, the FY 2025-26 budget included a $140,000.00 estimate for this project. A FY 2025-26 budget amendment and transfer of $399,100.00 from the General Fund to the Capital Fund Project #211 is recommended for this project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute an agreement with Harmonie Park Development for Professional Project Management Services for development of the Tobin Clark housing site in the amount of $539,100.00 for a term through March 24, 2028, and approving a FY 2025-26 budget amendment -57-
ATTACHMENT 1
2 and transfer as needed in accordance with the project schedule, under CEQA Guideline 15306.

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 13th day of October 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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61236.01300\40844037.1
1 TOWN OF HILLSBOROUGH

PROFESSIONAL SERVICES AGREEMENT
This Agreement is made and entered into as of ________________, 20__ by and between the Town of Hillsborough, a municipal corporation organized and operating under the laws of the State of California with its principal place of business at 1600 Floribunda Ave., Hillsborough, CA 94010 (“Town”), and Harmonie Park Development Group LLC, a Michigan Limited Liability Company with its principal place of business at 221 Bachman Avenue, Los Gatos, CA 95030 (hereinafter referred to as “Consultant”). Town and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. Town is a public agency of the State of California and is in need of professional services for the following project:

Professional Project Management Services for the Tobin Clark site______________(hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for Town to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the Town with the services described in the Scope of Services attached hereto as Exhibit “A.”

2. Compensation.
a. Subject to paragraph 2(b) below, the Town shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $539,100 without written approval of the Town’s City Manager. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.

3. Additional Work.

If changes in the work seem merited by Consultant or the Town, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the Town by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall -59-
ATTACHMENT 2
61236.01300\40844037.1
2 be prepared by the Town and executed by both Parties before performance of such services, or the Town will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

4. Maintenance of Records.

Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by Town.

5. Term.

The term of this Agreement shall be from October ____, 2025 to March 24, 2028, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the Town to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work.

Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the Town to proceed (“Notice to Proceed”).

Consultant shall complete the services required hereunder within the timelines specified in Exhibit “A.” The Notice to Proceed shall set forth the date of commencement of work.

6. Delays in Performance.
a. Neither Town nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities”, includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety. b. Should such a Force Majeure Event occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay. c. Notwithstanding the foregoing, the Town may still terminate this Agreement in accordance with the termination provisions of this Agreement.

7. Compliance with Law.
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3 a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the Town, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

8. Standard of Care.

Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.

9. Assignment and Subconsultant.

Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the Town, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

10. Independent Contractor.

Consultant is retained as an independent contractor and is not an employee of Town. No employee or agent of Consultant shall become an employee of Town. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from Town as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.

11. Insurance. Consultant shall not commence work for the Town until it has provided evidence satisfactory to the Town it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the Town. -61-
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4 (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Explosion, Collapse and Underground (UCX) exclusion deleted
(5) Contractual Liability with respect to this Agreement (6) Broad Form Property Damage
(7) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give Town, its officials, officers, employees, agents and Town designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the Town, and provided that such deductibles shall not apply to the Town as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant or its designated representatives shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the Town. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 07covering automobile liability (Coverage Symbol 7, scheduled auto).
(iii) The policy shall give Town, its officials, officers, employees, agents and Town designated volunteers additional insured status. (iv) Subject to written approval by the Town, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the Town as an additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability
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5 (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.
d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the Town and in an amount indicated herein.

This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Combined Single Limit
Commercial General Liability $2,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $2,000,000 per occurrence
Professional Liability $2,000,000 per claim and aggregate (errors and omissions)
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. -63-
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6 f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the Town evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25- S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the Town at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the Town at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy or in the case of Automobile, the Consultant’s representative’s is primary insurance and that any insurance, self-insurance or other coverage maintained by the Town or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least one year after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the Town, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against Town, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the Town and shall not preclude the Town from taking such other actions available to the Town under other provisions of the Agreement or law.
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7 h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the Town, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the Town, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Town has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Town will be promptly reimbursed by Consultant or Town will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Town may cancel this Agreement.
(iii) The Town may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the Town nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the Town that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the Town as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the agreed upon coverage. If requested by Consultant, Town may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

12. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel of Town’s choosing), indemnify and hold the Town, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project -65-
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8 or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the Town. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the Town, its officials, officers, employees, agents, or volunteers.
b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the Town, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole -66-
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9 responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the Town. Consultant shall defend, indemnify and hold the Town, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.

14. Verification of Employment Eligibility.

By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

15. Reserved.

16. Laws and Venue.

This Agreement shall be interpreted in accordance with the laws of the State of California.

If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Mateo, State of California. 17 Termination or Abandonment.
a. Town has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, Town shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. Town shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by Town and Consultant of the portion of such task completed but not paid prior to said termination. Town shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to Town only in the event of substantial failure by Town to perform in accordance with the terms of this Agreement through no fault of Consultant.
18 Documents.

Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the Town.

19. Organization.
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10 Consultant shall assign Wendi Baker as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the Town.

20. Limitation of Agreement.

This Agreement is limited to and includes only the work included in the Project described above.

21. Notice.

Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:

TOWN:

Town of Hillsborough
1600 Floribunda Ave. Hillsborough, CA 94010
Attn: Doug Davis, City Manager
CONSULTANT:

Wendi Baker, Principal
Harmonie Park Development
221 Bachman Avenue
Los Gatos, CA 95030
and shall be effective upon receipt thereof.

22. Third Party Rights.

Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the Town and the Consultant.

23. Equal Opportunity Employment.

Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

24. Entire Agreement.

This Agreement, with its exhibits, represents the entire understanding of Town and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.

25. Severability.
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11 If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect.

26. Successors and Assigns.

This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of Town. Any attempted assignment without such consent shall be invalid and void.

27. Non-Waiver.

The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

28. Time of Essence.

Time is of the essence for each and every provision of this Agreement.

29. Town’s Right to Employ Other Consultants.

Town reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

30. Prohibited Interests.

Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, Town shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of Town, during the term of his or her service with Town, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

31. Value Statement.

By executing this Agreement, Consultant represents and warrants that it will comply with the values statement set forth in Exhibit “B” to the same extent as a member of the Town of Hillsborough City Council or of a Hillsborough board or committee. -69-
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12 [SIGNATURES ON FOLLOWING PAGE]
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13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE TOWN OF HILLSBOROUGH

AND HARMONIE PARK DEVELOPMENT
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

TOWN OF HILLSBOROUGH Harmonie Park Development
By: By:

Doug Davis
City Manager Its:

Printed Name:

ATTEST:

By:

City Clerk
APPROVED AS TO FORM:

By:

City Attorney
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14 EXHIBIT A
Scope of Services
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TOWN OF HILLSBOROUGH

RESPONSE TO RFP

FOR PROJECT MANAGEMENT

SERVICES ASSOCIATED WITH THE

DEVELOMENT OF
HILLSBOROUGH’S

TOBIN CLARK SITE
AUGUST 5, 2025

1.COVER LETTER

2. PROJECT UNDERSTANDING

AND APPROACH
4 - 6
3 Response to RFP
Table of Contents
Harmonie Park Principals have over
60 years of combined development
experience, focusing on creating
thriving communities in highbarrier-to-entry, emerging secondary and urban markets. We
have expertise in every aspect of the
development process, from
acquisition and partnership
structuring to entitlements,
collaboration with agencies, design
and construction coordination,
leasing strategies, and brokerage.

We work with municipalities and
organizations to understand real
estate goals and objectives. We then
take those goals and overlap them
with our understanding of market
feasibility for residential and
commercial projects to craft better
public policy.

Harmonie Park has
expertise in every aspect of
the development process

3. DETAILED WORK PLAN &

TIMELINE
7 - 15

4. QUALIFICATIONS AND

RELEVANT EXPERIENCE
16 - 24

5. TEAM STRUCTURE AND

RESUMES
25 - 30
31 - 34 6. FEE PROPOSAL
35 7. REFERENCES
36 8. INSURANCE
37 - 38 9. OTHER INFORMATION

1. Cover Letter
To the Town of Hillsborough,
Harmonie Park is honored to submit our proposal to lead the comprehensive project management of the Town-owned

20.9-acre Tobin Clark site. We recognize this project’s significance—not just in fulfilling the Town’s housing obligations, but in shaping a lasting asset for Hillsborough's future. As the Town’s representative, we are prepared to oversee every phase, from due diligence, to master planning, to final design, with precision and care.

Our principals have spent decades guiding some of the most complex and transformative developments across the San Francisco Bay Area, including residential communities in the Towns of Los Gatos, Danville, and Moraga. We've navigated agency coordination and long-range planning efforts for impactful projects such as Sequoia Station in Redwood City.

Our principal, Don Capobres, brings invaluable public-sector insight from his time at the San Francisco Redevelopment Agency, where he helped lead initiatives at Hunters Point Shipyard and Bayview Point. Most recently, we led the entitlement and CEQA review process for nearly 5 million square feet of mixed-use development in Santa Clara.

Whether managing estate home subdivisions or high-density mixed-use transit corridors, our projects succeed because of one consistent approach: partnership. We invest deeply in collaboration—with agencies, stakeholders, and community members alike. Our process is grounded in transparency and customized strategy, and our team is known for balancing ambitious design with pragmatic execution.

At Harmonie Park, we don’t just build developments — we build trust, functionality, and long-term community value.

We bring creativity to design, rigor to financial analysis, and thoughtful solutions to challenges like easements, grading, utilities, and environmental constraints. We know how to integrate affordable housing with feasible construction costs and market viability.

For a site as nuanced and sensitive as Tobin Clark, our experience is not just relevant — it’s essential. We propose a phased approach, incorporating strategic check-in points that give the Town flexibility and control as the project unfolds and optionality on engaging a private developer in to help with cost recovery. Our goal is to help Hillsborough transform this remarkable site into a resource that serves both its housing vision and the broader community.

We welcome the opportunity to work hand-in-hand with the Town to bring this vision to life. If you have any questions or would like to speak further, please contact Wendi at [email protected] or 650-815-8611.

Warm regards,
Wendi E. Baker
Principal
Harmonie Park Development 3
a. Understanding of Project Scope, Context, and Challenges Introduction
The Town of Hillsborough (“Town”) is seeking a qualified consultant to provide comprehensive project management services for the planning, entitlement, and design of the town-owned 20.9-acre Tobin Clark site (“Property”).

2. Project Understanding and
Approach
4 Background
Hillsborough is home to over 11,000 residents, with 96% living in owner-occupied homes across a 6-square-mile area.

Historically zoned exclusively for single-family residential, the Town features ½-acre or larger lots, complemented by
schools, open spaces, clubs, and various public utilities. It is recognized for its high median household income,
architectural diversity, scenic open spaces, award-winning schools, and distinct charm.

Under California’s 8-year RHNA Cycle 6, the Town was
required to plan for 554 new housing units spanning all affordability levels. Following a two-year public engagement process—including polling, workshops, and collaboration with the State’s Housing and Community Development
department (HCD)—the Town determined that 400 of these
units could be accommodated through Accessory Dwelling
Units (ADUs). The remaining 154 units would require new housing opportunity sites.

The Property, part of the 50+ acre Tobin Clark site, was identified in the Town’s 2023–2031 Housing Element (adopted in December 2023) as the location for 100 multi-family housing units. The plan includes 44 very low-income units (0– 50% AMI), 6 moderate-income units (80–119% AMI), and 50 market-rate units (120%+ AMI), with a focus on housing staff and faculty from the adjacent College of San Mateo.

The Property is located along the southern edge of Town, bordered by the College of San Mateo, Tournament Drive, Sugar Hill Drive, and Tobin Clark Drive.

The Tobin Clark Property Conceptual Land Use Plan/Land
Cover, Town of Hillsborough 2023-2031 Housing Element
b. Approach to Managing Complex, Multi-Agency Housing Developments on Constrained Sites
Site Characteristics, Context, and Challenges
Harmonie Park Development visited the Property on August 1, 2025, led by Director of Public Works / City Engineer Paul Willis as part of a tour for RFP respondents.

The tour began near Perimeter Road, accessed via the College of San Mateo’s parking lot. The Property offers sweeping views of San Francisco and surrounding areas. It features steep terrain, seasonal streams, riparian areas including Coast Live Oaks and California Buckeye groves, and native grasslands. Portions of the Property can support housing and infrastructure as outlined in the Housing Element.
5 Five potential building pads have been identified for townhomes and multi-family units, connected by a proposed roadway to the College of San Mateo’s Perimeter Road via Athletic Loop Road.

Access negotiations with the College are crucial, as other access points are topographically challenging. Early collaboration will be vital in determining layout and feasibility.

A program-level Environmental Impact Report (EIR) prepared by MIG for the Housing Element and General Plan update identifies broad impacts and mitigation strategies. As the project advances, detailed environmental analyses and specific project-level reporting will be necessary to establish a tailored Mitigation, Monitoring, and Reporting Program (MMRP).

Utility connections for stormwater, potable water, sanitary sewer, and joint trench infrastructure must be investigated. Coordination with relevant agencies and easement holders will inform design and cost. Hillsborough’s engineering department will be an essential resource for reviewing existing utilities and identifying feasible connections.

While designated as a housing site, the Property may also serve broader community purposes. Potential enhancements include public access to open space, facilities for public safety services, and educational opportunities related to local flora and fauna.

Image of a potential access point, from College of
San Mateo / Perimeter Road
Image of a flatter portion of the Property
6 Project Management Approach
Drawing on decades of experience with constrained sites—including projects in Danville, Moraga, and Los Gatos— Harmonie Park brings extensive expertise in navigating complexity. Our past work has involved joint ventures between market-rate and affordable housing developers, multi-agency coordination, and negotiation of easements and land rights, as exemplified by the Sequoia Station project.

We approach each site individually, but shared strategies prevail: transparency, collaboration, data-informed analysis, and creative problem-solving. For the Tobin Clark Property, this approach will be critical to aligning with the Town’s objective of delivering over 50% affordable units while managing physical and financial challenges.

To enable flexibility, Harmonie Park proposes dividing the scope into key check-in points. The initial phase will serve as a due diligence report, presenting data to guide the Town’s next steps. This modular approach supports adaptive planning and avoids premature commitment to a rigid project scope. c. Approach to Building Trust and Community Engagement
As Hillsborough’s first multi-family residential development, the project may prompt skepticism from residents.

Harmonie Park is committed to fostering open, respectful dialogue while acknowledging the Town’s extensive prior outreach during the Housing Element process.

We believe resident input and local expertise are invaluable. Transparent communications and community integration will be cornerstones of our strategy.

The Housing Element process educated stakeholders on the consequences of non-compliance — such as exposure to Builder’s Remedy applications and loss of local control. Hillsborough’s timely certification preserved its authority, and the Town now has an opportunity to demonstrate good-faith delivery of promised housing targets. This is essential for retaining control in future RHNA cycles.

Community Outreach Plan
We propose a multi-faceted outreach strategy that may include:

A dedicated project webpage featuring timelines, background, and key facts Workshops tailored to various group sizes
Online surveys to gather broad feedback
One-on-one meetings with adjacent property owners and key stakeholders Co-development of community benefit options, shaped by public input Detailed Work Plan and Timeline
The following Project Schedule outlines four major phases, each with defined subphases and key milestones. This structure is designed to align with the Town’s RFP Scope of Services while incorporating strategic check-in points to ensure transparency, adaptability, and informed decision-making throughout the process.

Harmonie Park’s approach to complex projects emphasizes flexibility and responsiveness. We recognize that successful RFP execution often requires iterative adjustments as new information emerges. As the designated project manager, Harmonie Park will proactively manage these refinements within the assumed budget, ensuring continuity and alignment with the Town’s objectives.

While overall project management is included in our budget, costs associated with external consultants will be presented separately at each phase. A preliminary consultant budget framework will be developed during Phase I to guide future decisions, financial planning, and resource allocation.

Phase I: Understanding the Project – Project/Site Assessment – Predevelopment Strategy (Approx. 150 Days)
This initial phase is critical for establishing a strategic foundation for the Property’s development. Harmonie Park recognizes the Town’s interest in creating a Master Plan and will approach this phase with a focus on due diligence and early planning to assess opportunities, risks, and financial viability. Further, we will consider how the remainder Tobin Clark property will integrate with any Master Plan for the Property.

3. Detailed Work Plan and Timeline
7 View from Property towards San Francisco Bay View from Property towards San Francisco Bay Phase I A: Due Diligence (Approx. 55 Days)
Kickoff Meeting: Launch the phase with a meeting to align on goals and expectations.

Baseline Assumption: Use the Town’s Housing Element target of 100 homes and preliminary building pad locations as the starting point.

Document Review:

Analyze all existing Town documents related to the Property.

Review environmental documentation from the Town of
Hillsborough’s 2023–2031 Housing Element.

Utility & Access Assessment:

Evaluate existing utility infrastructure and access rights.

Identify needs for easements or additional property rights.

Site Constraints Identification: Determine physical or regulatory limitations affecting development.

Community & Stakeholder Input Review: Assess feedback and outreach conducted to date.

Working Session with Town Leadership: Gather input on
expectations, opportunities, and priorities.

Predevelopment Budgeting:

Develop budget estimates for Preliminary Master Planning, CEQA compliance, and future applications.

Preliminary Outreach:

Engage with College of San Mateo and City of San Mateo to identify potential easement or utility-related risks and costs.

Due Diligence Summary:

Compile findings into a summary including:

Project risks
Refined schedule
Recommended next steps
Community engagement plan
Sub-consultant budgets
Present summary to the working sub-committee for approval to proceed to Phase IB.
8 The Tobin Clark Property Biological Constraints,
Town of Hillsborough 2023-2031 Housing Element
The Tobin Clark Property Environmental
Conditions, Town of Hillsborough 2023-2031
Housing Element
Phase I B: Preliminary Master Planning (Approx. 95 Days) Authorization to Proceed: Begin upon Town’s approval following Phase IA.

Design Team Formation:

Propose and assemble a pre-development design team led by Harmonie Park.

Include a Civil Engineer and Architect for site planning and infrastructure analysis.

An aerial topographic survey will be key to determine slope and buildable areas. If the Town does not have this, we propose engaging this service through Civil Engineer to get data needed for preliminary master planning. (This and supplemental topography is noted as an optional consultant task in the budget pending research of available information.)
Preliminary Site Analysis:

Conduct engineering assessments to estimate site work and infrastructure costs.

Provide up to two test fits for alternative site design scenarios (subject to site constraints).

Feasibility Analysis:

Develop a preliminary pro forma and sensitivity analysis based on test fits.

Refine feasibility insights to inform decision-making.

Stakeholder Engagement:

Schedule a community meeting to present findings and gather feedback.

Conduct a check-in with Town Staff and the Sub-Committee.

Budget Proposal:

Present a budget for completing Phase II Master Plan.

Support Town’s determination of the go-forward strategy. 9 The Tobin Clark Property Conceptual Land Use Plan, Town of Hillsborough 2023-2031 Housing Element
Phase II: Master Plan (Approx. Total 200 days plus 12-18 months CEQA processing) Following the preliminary master planning and feasibility findings, the Town may choose one of two paths:

Independent Path: Proceed with developing the Master Plan and conducting the required environmental review on its own.

Developer Partnership Path: Initiate an RFP process to select a developer who would collaborate with the Town and potentially fund future phases of work.

If the Town opts for the developer partnership route, Harmonie Park will assist in:

Establishing RFP criteria and process for developers
Overseeing project management to ensure alignment between the Town and the selected developer The following sub-phases assume the Town proceeds independently, sponsoring both the Master Plan and the environmental review. If the Town wishes to proceed with a Developer Partnership Path, Phase III can be implemented and modified to include a developer’s involvement and funding during Phase II of the process.

Phase II A: Master Planning Administration (Approx. 100 Days) Consultant Procurement:

Develop RFPs for design and environmental services
Select a qualified design and environmental review team Technical Studies:

Initiate necessary studies to support the master plan application and CEQA review Funding Strategy:

Research and evaluate grant opportunities and public financing options Agency Coordination:

Begin negotiations with external entities (e.g., College of San Mateo) Refine easement rights and secure letters of intent as needed 10 Phase II B: Master Planning Process (Approx. 100 Days) Design Development:

Collaborate with the selected design team to refine feasibility Develop architectural and site design concepts
Community Engagement:

Continue outreach and incorporate public feedback
Financial Modeling Update on Master Plan
Town Review & Approval:

Present concepts to Town leadership for review and approval CEQA Preparation:

Use the approved Master Plan to develop the Project Summary for environmental review Phase II C: CEQA Process (Approx. 12–18 Months)
Oversight & Representation:

Harmonie Park will manage the CEQA process on behalf of the Town Environmental Review Coordination:

Collaborate with the environmental consultant to:

Develop the Project Summary
Conduct required technical studies
Public Process Management:

Manage Town noticing and community engagement
Coordinate consultant deliverables and technical reports Review all environmental report drafts
Facilitate interdepartmental coordination and comment resolution Final Presentation:

Support the presentation of the Final EIR to the Town Council 11 Phase III: Developer Selection - (Approx. 285 Days Total - Note this May Overlap with Other Phases)
Phase III focuses on identifying and securing a qualified developer to construct the Property. While the estimated timeline is approximately 285 days, this phase may overlap with earlier phases depending on when the Town of Hillsborough initiates developer engagement.

Brokerage Services Offered by Harmonie Park
Harmonie Park is a licensed California real estate broker (CA License #02235622), authorized to provide a full suite of real estate services in accordance with the California Department of Real Estate. In addition to our consulting and advisory services, Harmonie Park is fully equipped to serve as the exclusive broker for the disposition or long-term lease of the Property.

If selected as the broker, Harmonie Park would represent the Seller—the Town of Hillsborough—and deliver comprehensive, end-to-end brokerage services, including:

Strategic Advisory Services: Conducting market analysis, developing pricing strategies, and advising on optimal positioning based on the property’s characteristics and the Town’s objectives.

Marketing and Outreach: Designing and executing a robust marketing campaign, including digital and print collateral, MLS and commercial platform listings, targeted outreach to qualified developers, investors, or tenants, and coordination of property tours and presentations.

Transaction Management: Managing all aspects of the transaction lifecycle, including solicitation of offers, negotiation of terms, preparation and review of contracts, and coordination with legal counsel, escrow agents, and title companies.

Due Diligence Support: Facilitating buyer or tenant due diligence by organizing documentation in a data room, coordinating site access, and responding to inquiries in a timely and transparent manner.

Closing Coordination: Overseeing all closing activities to ensure a smooth and compliant transaction, including final documentation, regulatory checks, and post-closing follow-up.

As part of this engagement, Harmonie Park proposes that the costs of remainder Phase III services are credited against a reduced brokerage commission of 2% of the sale / land lease price. Any remaining balance would be due at the close of the transaction. This structure defers payment for Phase III services until the successful completion of the sale or lease, aligning our compensation with project outcomes.

Alternatively, the Town may choose to contract solely for the services outlined in Phase III-A and Phase III-B, excluding brokerage representation. In this scenario, Harmonie Park would be compensated through direct payment for these services, rather than through a commission structure. No credit would be applied toward future brokerage fees. 12 Phase III A: Request for Proposals (RFP) Process - (Approx. 85 Days) This sub-phase involves preparing and executing a competitive process to solicit bids from qualified developers. Key activities include:

RFP Development: Drafting a comprehensive Request for Proposals that outlines the project scope, submission requirements, evaluation criteria, and legal and financial expectations.

Pre-Bid Meeting: Hosting an informational session for interested developers to clarify project goals, address questions, and encourage competitive participation.

Q&A Factsheet: Compiling and distributing a document that addresses all questions raised during the RFP process to ensure transparency and equal access to information.

Bid Collection: Receiving and organizing formal proposals from developers within the designated submission window.

Proposal Review: Evaluating submissions based on predefined criteria such as development experience, financial capacity, alignment with community goals, and feasibility.

Developer Selection: Collaborating with the Town to identify the most suitable developer based on proposal quality, strategic fit, and long-term value.

Phase III B: Developer Negotiations - (Approx. 200 Days) Once a preferred developer is selected, this sub-phase focuses on formalizing the partnership through detailed negotiations. Activities include:

Term Sheet Review: Reviewing and refining the preliminary agreement that outlines key deal terms, including responsibilities, timelines, financial arrangements, and contingencies.

Development Agreement Review: Engaging in detailed discussions and revisions of the legally binding contract that governs the developer’s obligations, project milestones, performance standards, and compliance requirements. 13 Phase IV – Development (Timeframe TBD)
Phase IV would apply only if the Town elects to directly undertake development of the Property, rather than partnering with a private developer. At this stage, Harmonie Park will await the Town’s decision regarding whether to expand the scope of work to include bidding, construction oversight, and full project delivery services.

While Harmonie Park is fully equipped to provide these services, our current focus remains on successfully executing Phases I through III. Should the Town choose to proceed with direct development, we are prepared to seamlessly transition into this next phase and provide comprehensive support to ensure successful implementation. 14 View of Various Property Topography and Foliage
15 4. Qualifications and Relevant
Experience
16 Firm Qualification and Relevant Experience
Harmonie Park’s principals have nearly 60 years of Bay Area development experience across boutique infill projects and large-scale master planning. Our portfolio spans dozens of jurisdictions—Danville, Moraga, Los Gatos, Saratoga, Mountain View, Redwood City, Santa Clara, San Jose, Campbell, Fremont, Milpitas, Dublin, San Francisco, Pleasanton —and reflects unmatched skill in navigating interagency coordination, policy shifts, complex land-use constraints, and dynamic community engagement.

Our approach is highly localized and responsive, aiming to reflect the unique identity of each community we work in. We emphasize genuine outreach and long-term sustainability over cookie-cutter development models Our team excels in:

Multi-agency entitlement coordination (local, regional, state, and federal) Strategic land use and easement negotiations
CEQA and NEPA compliance
Affordable housing integration and Density Bonus Law execution Ground-up coalition-building with public agencies and stakeholders Below are recent examples of projects led by Harmonie Park Development. Highlights include our experience with public agencies or projects on public land involving:

Mixed-income and multi-family housing
Inter-agency collaboration
Public-Private Partnerships (P3s)
Complex site access and/or utility coordination
Community engagement in single family residential neighborhoods Magee Ranch transformed a General Plan-compliant property into a regionally beneficial development through deep coordination with multiple agencies and advocacy groups. While at SummerHill Homes, Harmonie Park’s Wendi Baker led a refined plan that preserved 90% of the land, reduced home count, and created public trail access across previously private lands. The agency coordination included:

Town of Danville: Led iterative design approvals and community input sessions Save Mount Diablo: First-ever project endorsed by this regional conservation nonprofit East Bay Regional Park District: Negotiated trail connectivity to existing parkland US Army Corps of Engineers & US Fish and Wildlife Service: Coordinated around sensitive riparian habitat and endangered species during EIR process
Bay Area Air Quality Management District: Worked through air quality modeling and mitigation strategies LAFCO: Facilitated annexation of utilities into town boundaries Contra Costa County Utilities and Transportation: Navigated utility crossings over waterways and access constraints at Diablo Road
Public engagement was multi-tiered—private meetings, walking tours, targeted neighborhood forums, and large workshops. Affordable casitas responded directly to Housing Element priorities, tailored for public safety, educators, and other essential local workers.

Project Experience
Magee Ranch - Town of Danville
69 estate homes + affordable casitas
410-acre hillside site
17 Photo Credit: Save Mount Diablo
As Moraga emerged from a lengthy development moratorium, Harvest Court became the first new residential project to advance—requiring sensitive agency coordination and landscape integration. Harmonie Park’s Principal Wendi Baker led efforts at SummerHill Homes to ensure sustainable outcomes and neighborhood compatibility.

Agency Collaboration Included:

Town of Moraga: Worked through Specific Plan updates, environmental review, and entitlement negotiations Moraga Parks & Recreation Department: Developed public trail and open space linkages Moraga Engineering Department: Managed approvals related to slope, traffic flow, and utility access Local Schools: Guided inclusion of educational markers within the public open space Regional Fire and Emergency Services: Engaged on roadway access and site safety plans The project preserved natural topography and clustered homes away from sensitive habitat zones. A pedestrian bridge created a vital link to town center commercial areas, traversing gulches and integrating new easements for community benefit. A 2-acre educational open space—with orchard trees and historic interpretation—was privately maintained but publicly accessible. A newly installed pedestrian signal enabled safe crossing over Moraga Road.

Community involvement mirrored Harmonie Park’s signature style: personalized outreach, medium-sized resident meetings, interactive workshops, and collaborative design sessions with agencies and neighbors.

Project Experience
Harvest Court - Town of Moraga
28 estate homes and 2-acre park
14-acre hillside site
18 Project Experience
The North 40 reflects a decade-long, multi-phase entitlement journey that harmonized municipal goals, regional housing policy, and community input. Harmonie Park spearheaded coordination among development partners, agencies, and community organizations for both phases.

Agency & Partner Coordination Highlights:

Town of Los Gatos: Collaborated during Specific Plan creation and Housing Element revisions; navigated Architecture & Site Review and Tentative Tract Map processes Santa Clara County VTA: Advocated for traffic improvements and Measure B funding to support school congestion mitigation via student busing pilot program
Regional Transportation Agencies: Engaged on circulation planning and infrastructure design School Districts & Philanthropy Groups (Kiwanis, etc.): Integrated concerns into project phasing and public benefit strategy
Chamber of Commerce: Focus on economic development and better complimenting Downtown Los Gatos businesses
Eden Housing: Partnership with developer of 50 extremely low and very low-income units on site The project deployed Density Bonus Law to maximize affordability while meeting objective standards for design, scale, open space, and circulation. Planning included stormwater system upgrades benefiting surrounding neighborhoods and privately owned, publicly accessible amenities like parks and community gardens.

Community engagement was persistent and adaptive—coffee shop drop-ins, backyard listening sessions, senior center meetings, and targeted outreach to underrepresented stakeholders. Harmonie Park continues to lead development efforts on a remainder 15 acres of Phase II of the North 40.

North 40 Phase I – Town of Los Gatos
319 homes (15% affordable) + 70K sf retail
20 acres on north side of Town
19 Project Experience
Mission Point is a transformative, 5+ million SF redevelopment in the heart of Silicon Valley, adjacent to Levi’s Stadium and two light rail stops. Harmonie Park serves as lead development advisor to Kylli, an overseas-based real estate firm, shaping the project’s vision and entitlements over a seven-year process. The project evolved from a single-use office park into a diverse, transit-oriented, mixed-use community designed to integrate housing, employment, natural systems, and public services across decades of phased delivery.

Agency coordination was foundational to this project’s success and complexity:

City of Santa Clara: Harmonie Park guided the team through General Plan Amendments, comprehensive Rezoning, Tentative Map approvals, and a Development Agreement. We worked closely with Planning, Engineering, and City Manager’s office to sequence infrastructure commitments.

Santa Clara Valley Transportation Authority (VTA): Partnered to integrate station-area planning, first/last-mile connections, and pedestrian/cycling infrastructure near transit stops.

Santa Clara Unified School District: Coordinated school capacity planning and mitigation measures tied to the residential component.

Local Utility Agencies: Engaged in long-range planning for stormwater, power, and water improvements—including shared infrastructure supporting the broader North Santa Clara area.

California Environmental Agencies: Oversaw CEQA compliance, including a full Environmental Impact Report examining air, traffic, greenhouse gas, and ecological impacts.

Mission Point - City of Santa Clara

48.6-acre Mixed-Use Community
20 Project Experience
Entitlement highlights:
2,600 market-rate and affordable homes, designed to meet future RHNA and Housing Element goals Up to 3M SF of flexible office/R&D space for Silicon Valley firms 100K SF of neighborhood-serving retail and restaurants
100K+ SF of public open space, including parks, trails, and plazas Dedicated childcare and community facilities
Infrastructure improvements to roads, transit stops, and utilities shared across the district Outreach efforts were proactive and iterative:

Community workshops (both in-person and virtual) across North Santa Clara Online surveys and digital engagement tools to reach diverse audiences Meetings with elected and appointed officials at the city and county levels Stakeholder engagement with non-profits, mobility advocates, and housing coalitions Mission Point reflects Harmonie Park’s expertise in master planning, infrastructure strategy, long-range entitlements, and consensus building across jurisdictions—positioning the project as a flagship model for sustainable, inclusive growth in Silicon Valley.
21 Mission Point - City of Santa Clara
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Project Experience
Harmonie Park was the lead development advisor and entitlement coordinator for Sequoia Station—one of Redwood City’s most ambitious infill redevelopment projects—anchored by a newly formed Transit District and detailed in the updated Downtown Precise Plan (DTPP). This effort transformed a legacy car-centric shopping center into a futureforward, pedestrian-oriented, mixed-use district integrating regional transit expansion, housing diversity, and public realm enhancements. An SEIR was completed to support the DTTP amendments.

The Transit District Area Plan and Sequoia Station redevelopment required intensive multi-agency coordination:

City of Redwood City: Led comprehensive DTPP amendments and entitlements; collaborated on updates to zoning, land use regulations, architectural design standards, and EIR scoping.

Caltrain: Harmonie Park negotiated future land dedication to support Caltrain’s 2040 vision—including doubling rail capacity, electrification, and grade separation—to seamlessly connect Downtown with surrounding neighborhoods.

Caltrans: Coordinated El Camino Real corridor improvements and integration with state-owned right-of-way.

SamTrans: Partnered on bus stop connectivity, multimodal transit design, and last-mile transit planning.

San Mateo County Agencies: Engaged County Transit, Housing, and Environmental teams on Housing Element conformity, air quality strategies, and CEQA review.

San Mateo County Chamber of Commerce & Downtown Business Associations: Incorporated economic development goals, small business retention, and retail programming. 22 Sequoia Station - City of Redwood City
Transit-Oriented Redevelopment
17-Acre Site
Project Experience
Project details included:
900 new homes (20% affordable), aligned with the City’s Housing Element

1.3M SF of commercial office space
170K SF of ground-floor, neighborhood-serving retail
Nearly 2 acres of privately owned but publicly accessible plazas and open space Dedicated daycare facility (10K SF)
1-acre land donation to Caltrain for expanded services
Community engagement featured layered outreach strategies over several years:

Regular large-format workshops, pop-up events, and multi-lingual neighborhood forums Virtual community room and surveys during COVID-19 for maximum accessibility Targeted stakeholder sessions with school districts, neighborhood associations, and transit users PPP (Public-Private Partnership) working groups focused on mass transit access, connectivity, and design This development was a catalyst for revising the Downtown Precise Plan and solidified Harmonie Park’s role in integrating land use, transit policy, and equitable housing in one of the region’s most transit-rich corridors. 23 Sequoia Station - City of Redwood City
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During his tenure at the San Francisco Redevelopment Agency (SFRA), Harmonie Park Development’s Don Capobres served as the lead representative on the City of San Francisco’s interagency team responsible for negotiating the initial conveyance agreement with the U.S. Navy and the first-phase development agreement with Lennar for the transformation of the Hunters Point Shipyard. This ambitious redevelopment project spans approximately 500 acres of former naval base land in San Francisco’s southeastern waterfront and is one of the largest urban infill efforts in the city’s history.

The redevelopment plan envisions over 12,000 residential units, 3 million square feet of research and development space, and 300 acres of parks and open space, designed to revitalize the Bayview-Hunters Point neighborhood and reconnect it to the city’s economic and cultural fabric. SFRA played a pivotal role in shaping the land use framework, design guidelines, and community benefits strategy, ensuring that the project aligned with broader goals of equity, sustainability, and neighborhood reinvestment.

A cornerstone of the project’s viability was the environmental remediation and management plan, overseen by the U.S. Navy under federal Superfund protocols. The complexity of the site—once home to radiological testing and heavy industrial activity—required extensive cleanup, regulatory coordination, and phased land transfers. SFRA worked closely with federal and state agencies, including the EPA and California Department of Toxic Substances Control, to ensure that parcels met stringent health and safety standards prior to redevelopment.

Equally critical was the agency’s commitment to robust community outreach. SFRA helped establish the Hunters Point Shipyard Citizens Advisory Committee (CAC), which continues to serve as a forum for public input, transparency, and accountability. Through listening sessions, stakeholder meetings, and partnerships with local organizations, the project has evolved in response to community concerns around environmental justice, displacement, and long-term health impacts.

Hunters Point Shipyard
City of San Francisco
500-acre former naval base
Project Experience
24 Principal Office Location
Harmonie Park Development is headquartered in Los Gatos, California. As a boutique developer focused exclusively on the San Francisco Bay Area, we prioritize projects that align with our expertise and values. Our high-touch, communitydriven approach emphasizes authentic placemaking, long-term value creation, and sustainability. Unlike volume-driven firms, we specialize in complex, high-barrier properties and offer comprehensive expertise across acquisition, entitlement, design, leasing, and brokerage—delivering superior project management from start to finish. a. Organizational Chart and Key Personnel Roles
Outside Consultants to report to relevant team member, with Wendi Baker as oversight.

5. Team Structure and Resumes
25 26
Project Lead – Harmonie Park’s Wendi Baker will lead the project management on the Tobin Clark property.

She leads Harmonie Park’s efforts to secure entitlements for high-profile projects across the Bay Area. Her outreach style is collaborative, aiming to translate community concerns into actionable design and policy adjustments. Her expertise is in high-barrier markets, including land planning, the environmental review process, community outreach and engagement, project scope and phasing plans, coordination of outside consultants, discussions with agencies and negotiations with the College of San Mateo and the City of San Mateo. Wendi Baker has decades of experience managing the entitlement puzzle, combining policy fluency, stakeholder diplomacy, and a sharp eye for sustainable urban design, making her uniquely positioned to lead project management for the Property.

Wendi Baker has directed the processing of numerous complex Environmental Impact Reports, including discussions with State and Federal agencies on mitigations. She has experience in creating and negotiating Development Agreements, access and easement agreements, and subconsultant scopes and contracts. She is on the Board of SV@Home and has an active role on Urban Land Institute’s Small Scale Development National Product Council.

Project Strategist: Supporting Wendi is Harmonie Park founder and partner Don Capobres. Don has over 30 years of experience in both public and private real estate sectors – a rare blend that gives him a strategic edge in navigating complex projects.

Don will primarily be focused on financial modeling, public-private partnership opportunities, project schedules, compliance with State housing laws and the Town’s Housing Element, and community outreach. Don is also a registered broker in the State of California, and if a land lease or sale is desired, Harmonie Park has decadeslong relationships with affordable and market rate builders in the Bay Area and is positioned to support the circulation of a sale/lease offering for the Town.

Project Support: Additional policy and land planning efforts can be executed by Marcia Jensen, whose tenure as a Los Gatos planning commissioner and Council Member and adjunct professor of Urban Planning at the University of Southern California provides public-sector, practical experience. Marcia is a Principal at Harmonie Advisory Partners, a Harmonie Park Development affiliate.

Site work and construction cost estimating will be supported by Greg Schank, Vice Principal of Harmonie Park and President and Founder of Schank Builders, a Bay Area-based construction firm known for executing highlevel commercial and upscale residential projects. This dual-leadership role across both Schank Builders and Harmonie Park Development creates a powerful bridge between strategic development and construction execution, enabling Harmonie Park to be a one-stop-solution for developments from entitlement through construction. His solution-based approach helps projects maximize their value and viability.

PRINCIPAL & COO
Wendi Baker
Wendi Baker is president and chief operating officer of Harmonie Park Development, a leading real estate development company focused on creating thriving, mixed-use communities in high-barrier-to-entry markets. Ms. Baker brings over two decades of experience in the greater San Francisco Bay Area real estate and planning industry. In her current role, she oversees the firm’s existing projects, client services, strategic business development, property acquisition and its daily operations. As part of Harmonie Park’s development services, Ms. Baker leads the firm in representing local, national and international developers in securing challenging entitlements for high-visibility Bay Area projects, totaling over 2,800 homes, and 5 million square feet of office, 300,000 square feet of retail and 20,000 square feet of daycare space.

RELEVANT PROFESSIONAL EXPERIENCE
Entitlement and environmental review for approximately 5 million square feet, including approximately 100K of neighborhood serving retail, up to 2,600 residential homes including 15% affordable, up to 2.2-3M SF of office/lab/R&D space, 7-acre public park and childcare. General Plan, Rezoning, Vesting Tentative Map, Development Agreement and environmental documents approved in November 2024.

Re-entitlement of Downtown Precise Plan and community outreach for 11 acres in downtown Redwood City for up to 1100 residential homes, 1.3M SF of office, and 200K sf of neighborhood serving commercial directly adjacent to a Caltrain Station.

Oversaw successful discretionary entitlement for 410-acre Magee Ranch Property in Danville, California. Conducted extensive political and neighborhood outreach, property owner negotiations, budget updates and review, California Environmental Quality Act oversight, architectural development, and coordination. In addition, worked with the Town of Danville and open space agencies for the creation and long-term private funding of over 376 acres of permanent public open space on the 410-acre development.

Spearheaded an acquisition and entitlement partnership for North 40 property in Los Gatos, California: partnering with Grosvenor Americas, an international property group, and Eden Housing, an affordable housing developer, for a mixed-use development of 320 residential units and approximately 66,000 square feet of commercial space. Obtained approval of Specific Plan in 2015, EIR and project-related entitlements.

Participated in successful entitlement on a diversity of projects in Fremont, California, including 30 estate homes on six acres in Mission San Jose; 91 podium condominiums, 78 townhomes, and 200 podium apartments in Fremont’s Downtown Area Plan and106 single-family and townhomes on 10 acres, Supported the entitlement strategy for 210 single-family and duet homes on 40 acres in Union City, California, 700 apartments on 10 acres in Milpitas, and 435 townhomes and flats in Livermore.

Acquired key properties in the Bay Area, including: 14 acres in Los Gatos 10 acres in San Jose, 12 acres in Evergreen San Jose, and 8 acres in Sunnyvale, and 410 acres in Danville, CA.

EDUCATION
San Jose State University - Masters of Urban Planning
Syracuse University - B.A. Economics and Geography

BOARDS AND COMMITTEES
Board Member: SV@Home
ULI Small Scale Development National Product Council
27 Don has over 25 years of real estate development experience in both the private and public sectors, a rare combination which offers a valuable insight and experience when collaborating with municipalities. Over the years, he has held a wide range of responsibilities, as diverse as representing the U.S. real estate development interests of Grosvenor, an international property group, and managing projects for the City of San Francisco. Don brings a unique combination of political savvy, interpersonal skills, and understanding of real estate investment fundamentals to each project he works on. As a wellrespected community leader and business partner, Don’s passion for transformative urban place-making pairs with his expertise in rental/for-sale residential, retail and hospitality, making him an exceptional choice for any team who strives for innovative solutions and progressive thinking.

Lead SFRA representative on the City of San Francisco team that negotiated the initial conveyance agreement with the U.S.

Navy and development agreement with Lennar for the development of Hunters Point Shipyard. This 500-acre Naval base conversion in San Francisco’s southeast sector will ultimately include over 12,000 residential units, three million SF of R&D space, and 300 acres of parks and open space. Entitlement work included NEPA and CEQA documentation and a comprehensive community benefits package for the Bayview-Hunters Point community of San Francisco. Development agreement with Lennar included a complex public finance package including tax increment financing and use of municipal bonds.

General Plan Update for 40 acres in Los Gatos, California for a mixed use project that included approximately 750 residential units and over 500,000 SF of commercial space.

Successful infill or brown field retail/mixed-use entitlements in Marin County, California; Detroit, Michigan; Silver Spring, Maryland; and Washington, DC
Oversaw construction management and was responsible for maintaining the development vision during construction for:
$120M mixed use building in Washington, DC which includes a 180-key hotel, 325 residential units, and 33,000 square feet of retail (under construction)
$40M contract for mixed use building in suburban Washington, DC (under construction) 100,000 square foot Safeway-anchored retail center in Marin County, CA Boutique retail and office mixed-use building in Union Square, San Francisco, CA Townhome residential in Silicon Valley
Negotiated numerous retail leases ranging from in-line shop space to a lease with Safeway for a 65,000 square foot store plus fueling station. Established strategic partnership with Manresa Restaurant (3-Michelin stars) to plan artisan market hall in Los Gatos, California.

Provided asset management responsibilities for office and retail properties

PRINCIPAL & CEO
Don Capobres

RELEVANT PROFESSIONAL EXPERIENCE

EDUCATION
The Ohio State University - MBA, Finance/Real Estate
Michigan State University - Political Economy

LICENCES
CA License #02235622
MI License #6502430977
28 PRINCIPAL

HARMONIE ADVISORY

PARTNERS
Marcia Jensen
Greg Schank

VICE PRESIDENT

HARMONIE PARK

DEVELOPMENT

FOUNDER

SCHANK BUILDERS
A two-time elected Town Councilmember and 2019-2020 Mayor of Los Gatos, Marcia is an accomplished, experienced and creative leader in the public policy arena. Over the years she has been a collaborative partner in the development and implementation of urban planning, housing, transportation and economic recovery initiatives. Her clients value that she is adept at early identification, analysis and resolution of issues through a proactive, solution-oriented approach.

Greg has over 20 years of design and construction experience with a broad range ofresponsibilitiesin upscale residential and commercial environments.

At Harmonie Park, Greg isresponsible for all design and construction operations.An award-winning construction executive, he excels atreenvisioning layout designs and execution; and managing challenging project with a solutions-based focus – from budgets and timelinesto the diverse interests of numerousstakeholders.

Harmonie Advisory Partners
offers services for public and
private sector clients who are
looking for effective solutions
to reach community land use,
re-use existing assets, and
establish design policies that
achieve both visionary and
civic goals. Our objective is to
provide our public clients with
services supported by
extensive research to
effectively guide decisionmaking.

Schank Builders constructs
outstanding commercial,
residential, and mixed-use
projects by navigating the
industry through trusted
relationships with contractors,
clear communication with
clients, and deep construction
experience.

Harmonie Park
Affiliates
29 30
c. Key Staff Availability
All key personnel referenced are available for the full duration of the project. As a boutique firm, Harmonie Park ensures senior-level involvement and continuity throughout each engagement. d. Proposed Subcontractors and Subconsultants
Initial Phase Support:

Harmonie Park will engage a civil engineer and land planner/architect to assess development feasibility and infrastructure planning. While firms have not been finalized, we will select local specialists familiar with the site conditions similar to the Tobin Clark property. We have included in the initial phase a budget for these consultants.

Design and Application Package Consultants:

During specific site design, additional consultants may be needed to support the civil engineer and architect in completing the Town’s application package, including landscape, joint trench, and lighting. During the due diligence phase of the Project, we will establish costs for completing an application package and the related team to support this effort.

Environmental Review Subconsultants:

Dependent on scope and timing, Harmonie Park may request RFPs for services during the Consultant Procurement phase, including but not limited to the below consultants, as required to support the determined level of Environmental Review:

Environmental Impact Report (EIR) consultant
Geotechnical Engineer
Environmental Engineer (Phase I)
Biologist
Transportation Engineer
We will coordinate these teams collaboratively with the Town of Hillsborough and under the direction of the EIR lead during the due diligence phase and outline costs accordingly. If the Town wishes to proceed, these subconsultants will directly contract with either the EIR Consultant or the Town directly, with management of these consultants included in our Project Management fee proposal.

Town Coordination and Legal Support:

Harmonie Park will partner with Town staff for public noticing and digital communication. We will develop the collateral, while the Town will manage distribution and web hosting. Printing/distribution costs are not included in the current scope. Legal review will be supported by Town Counsel; if external legal services are required, we welcome the Town’s recommendations for suitable firms. These services are not included in the Project Management budget.

6. Fee Proposal
31 .

Harmonie Park Development Billing Rates 2025/2026
Wendi Baker, Principal - Public Sector Hourly Billing Rate (25% discount): $300 Don Capobres, Principal - Public Sector Hourly Billing Rate (25% Discount): $300.

Marcia Jensen, Harmonie Park Advisory Partners, Principal - Public Sector Hourly Billing Rate (25% Discount): $300 Greg Schank, Vice President Construction - Public Sector Hourly Billing Rate (25% discount): $250 Note that in the proposed budget a flat fee of $300 per hour is assumed for standing meetings including the staff kickoff meeting and monthly team meetings regardless of the number of Harmonie Park staff who attend, providing effectively additional discount for additional expertise at these meetings without additional staff billing.

Each phase and subphases are to be released by the Town of Hillsborough prior to Harmonie Park commencing work.

Phase 2C is the most substantial time commitment due to the length of the CEQA process and assumed workload but can be further refined if the Town of Hillsborough will utilize their own Staff’s time to supplement hours identified in the proposal, thereby reducing Harmonie Park’s hours.

A placeholder budget has been included for consultants in Phase I based off professional experience, final proposals could vary. Consultants specific to Phase II and Phase III have not been included in this proposal and will be developed for Town review and approval per the proposal.

Additional exclusions: Town of Hillsborough Staff time, the public mailing / noticing process (procurement of owner/resident addresses, postage, printing), printing of large format plans and posterboards for community outreach efforts or Town meetings, room rentals (if needed) for community outreach, website upgrades for Project Specific webpage / links, outside legal counsel, additional consultants for Phase I if requested by Town, outside consultants for Phase II and Phase III. Approved scope additions will be billed at hourly rates as identified above.

Phase I Budget
32 Phase II Budget
33 Phase III Budget
34 7. References
35 Additional References can be provided upon request.

Magee Ranch
Seth Adams, Executive Director of Save Mount Diablo, [email protected], (925) 381-0905
North 40
Joel Paulson, Community Development Director, Town of Los Gatos, [email protected], (408) 354-6879
Sequoia Station
Alan Chamorro, Executive Vice President, LOWE, [email protected], (415) 531-5706
Mission Point
Elizabeth Klotz, Assistant City Manager, [email protected], (408) 615-2290 and/or
Elycia Knight, Development Project Manager, [email protected], (408) 615-2295

8. Insurance
36 Insurance Requirements
Harmonie Park has reviewed the requested insurance requirements and offers the following clarifications:
·Commercial General Liability: Our coverage exceeds the stated requirement, with a total of $4,000,000. However, this does not include the $2,000,000 coverage for Products/Completed Operations. After consulting with our legal counsel, we confirmed that this specific coverage is not applicable to the proposed scope of work. Harmonie Park is engaged solely in consulting services for the project and will not be performing any onsite construction. Therefore, Products/Completed Operations coverage is not necessary. ·Automobile Liability: Our current coverage is $1,000,000. If Harmonie Park is awarded the contract, we will increase this coverage to $2,000,000, in accordance with the RFP requirements. ·E&O: Our current coverage is $1,000,000. If Harmonie Park is awarded the contract, we will increase this coverage to $2,000,000, in accordance with the RFP requirements.

Other Insurance Requirements: All remaining insurance requirements outlined in the RFP are fully satisfied.

Harmonie Park will coordinate and finalize all insurance requirements with the Town if selected as Project Manager for the Property.

9. Other Information
37 Phased Structure and Strategic Flexibility
Harmonie Park has structured this response to provide the Town of Hillsborough with maximum flexibility while fully addressing the requirements of the RFP. Drawing from our experience as private developers, we have proposed a multiphased approach that reflects the natural progression of a development project and allows for informed decision-making at each stage.

This structure is designed to:

Support Adaptive Planning: By segmenting the project into distinct phases, the Town can initiate, pause, or modify specific components based on evolving priorities or findings from due diligence.

Enable Strategic “Off-Ramps”: Rather than committing to a full scope of services upfront, the Town can make incremental decisions as the broader context becomes clearer—particularly through insights gained in Phase I.

Facilitate Budget Control: Phased budgeting allows for more accurate forecasting and financial oversight, aligning expenditures with milestones and deliverables.

Phases II through IV have been scoped exclusive of outside consultant costs, recognizing that due diligence may uncover new information that affects the overall cost and scope of project management services. This approach also creates opportunities to explore partnerships or funding sources if the Town determines that additional resources are needed to move the site toward entitlement and development.

Value of Integrated Check-In Points
Throughout the phased approach, check-in points are strategically embedded to ensure transparency, collaboration, and responsiveness. These touchpoints are essential to maintaining alignment and momentum across all stakeholders.

Key benefits include:

Stakeholder Engagement: Regular check-ins keep Town leadership, community members, and other stakeholders informed and involved throughout the process.

Course Correction: These moments allow for early identification of challenges or shifts in context, enabling proactive adjustments before issues escalate.

Transparency and Trust: Frequent communication builds confidence in the process and reinforces a shared commitment to the Town’s goals.
38 Phase I: Foundational Due Diligence
Phase I includes select consulting services based on our professional judgment. While not all may be necessary, we have included survey and topographic work due to their significant impact on development feasibility and cost. These elements are essential for understanding site constraints, estimating infrastructure needs, and establishing realistic valuation and financial models.

Additionally, while preliminary CEQA work was completed as part of the Town’s 2023–2031 Housing Element, further environmental review specific to this property is required. This process can be lengthy and costly. We have proposed a dedicated sub-phase to assess the time and cost implications of CEQA compliance, with a check-in point to determine whether and how to proceed.

Phase II: Master Planning Process
The most significant sub-phase within Phase II is the management of the CEQA (California Environmental Quality Act) process. As the Master Planning effort progresses, Harmonie Park will coordinate closely with Town Staff to determine the most appropriate path forward for CEQA implementation. There is potential for the CEQA process to be funded internally by the Town or externally through a private development sponsor. Harmonie Park will assist in evaluating both options as part of the ongoing coordination. Regardless of the funding source, Harmonie Park will continue to provide comprehensive project management of the CEQA process on behalf of the Town, ensuring alignment with the overall goals of the RFP.

Phase III: Developer Selection and Optional Brokerage Services In Phase III, Harmonie Park offers the option to serve as the Town’s exclusive real estate broker for the disposition or long-term lease of the property. As a licensed California real estate broker, we are fully qualified to provide comprehensive brokerage services, including marketing, outreach, negotiation, and transaction management.

If the Town elects to engage Harmonie Park in this capacity, we propose that the cost of services provided in Phase III-A (RFP Process) and Phase III-B (Developer Negotiations) be credited against a reduced brokerage commission of 2%.

Any remaining balance would be due at the close of the transaction. This structure defers payment for Phase III services until the successful completion of the sale or lease, aligning our compensation with project outcomes and reducing upfront financial commitment for the Town.

Harmonie Park is prepared to adjust its role as Project Manager as needed, including reallocating resources between tasks. If scope changes result in additional costs, we will provide a revised proposal for Town review and approval.

We welcome the opportunity to discuss this proposal further and answer any questions. Thank you for your consideration —we look forward to the possibility of working together to advance the Town’s goals for the Tobin Clark Property.

DISCLAIMER
This material is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of the property investments, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the property in any jurisdiction. Neither this material nor anything in it shall form the basis of any contract or commitment. This material is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.

The Company has prepared this material based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. These projections should not be considered a comprehensive representation of the Company’s cash generation performance.

The financial information included in this material is preliminary, unaudited and subject to revision upon completion of the Company’s closing and audit processes.

All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document. The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

Let’s Get Started.

DON CAPOBRES, PRINCIPAL
415.710.7640
[email protected]

WENDI BAKER, PRINCIPAL
650.815.8611
[email protected]
61236.01300\40844037.1
15 EXHIBIT B
Values Statement

TOWN OF HILLSBOROUGH CITY COUNCIL, BOARDS, AND COMMUNITIES

VALUES STATEMENT
As a member of the Town of Hillsborough City Council or of a Hillsborough board or committee, I agree to uphold the Town mission statement and adhere to the following values. I will:
• Serve with integrity and be a responsible steward of taxpayer dollars and the natural environment.
• Treat everyone with respect, listen to understand, and promote civility, courtesy, and thoughtfulness in all interactions.
• Create an atmosphere where individual members, Town staff, and members of the community are free to express their ideas and work to their full potential. • Promote public and individual trust through honest and open practices and communications.
• Recognize and celebrate the diversity of our community through the pursuit of equal access, equal participation, and fair treatment for all. • Work collaboratively with others toward the common good in order to achieve innovative solutions for the public benefit.
• Maintain a balanced sense of community and quality of life through the protection and improvement of our natural and built environments.
• Respect the dignity and privacy of individuals and organizations. • Safeguard the community from the threats of natural, technological, or other threats to our safety and wellbeing.
• Avoid and discourage conduct which is divisive or harmful to the best interests of Hillsborough.
-73-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Appointing a Director and an Alternate to the Pooled Liability Assurance Network Joint Powers Authority Board of Directors SUMMARY: The Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) provides the Town with liability and property insurance. PLAN is a self-funded insurance pool serving 28 public agencies. The operations of these programs are governed by a Board of Directors consisting of one representative from each member agency.

PLAN JPA is an independent entity, covering the same services and member jurisdictions that had previously been under the Association of Bay Area Governments (ABAG) PLAN. The Town of Hillsborough's designated representatives on the PLAN Board of Directors have been the Finance Director and the alternate has been the City Manager.

The City Council must take action to reappoint its representatives on the PLAN Board. PLAN has requested a formal resolution to memorialize this appointment. It is therefore recommended that the City Council designate the following individuals as appointees to the PLAN JPA Board of Directors:
• Mandy Brown, Assistant City Manager, PLAN Board Member • William Li, Administrative Services Manager, PLAN Board Alternate FISCAL IMPACT: There is no fiscal impact with this agenda item since staff participates in PLAN JPA activities as part of their regular duties for the Town of Hillsborough.

ENVIRONMENTAL ISSUES: The proposed action 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 in the environment.

ATTACHMENTS: Resolution
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Adopt the resolution appointing a director and an alternate to the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) Board of Directors. -75-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

APPOINTING A DIRECTOR AND AN ALTERNATE TO THE POOLED LIABILITY

ASSURANCE NETWORK JOINT POWERS AUTHORITY BOARD OF DIRECTORS WHEREAS, Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) provides insurance and related services to the member entities of Association of Bay Area Governments (ABAG) PLAN; and
WHEREAS, PLAN JPA is a self-funded insurance pool serving public agencies; and WHEREAS, the operations of these programs are governed by a Board of Directors consisting of one representative from each member agency; and WHEREAS, the Town of Hillsborough designated representatives for the relevant insurance board have been the Assistant City Manager with the Finance Director acting as alternate; and
WHEREAS, it is recommended that the City Council reappoint the designees to the PLAN JPA Board of Directors.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough designates the following individuals as appointees to the PLAN JPA Board of Directors:

Name Title Designation
Mandy Brown Assistant City Manager PLAN Board Member
William Li Administrative Services Manager PLAN Board Alternate 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 13th day of October 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-76-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Consenting to the Dissolution of the San Mateo County Cities Insurance Group Joint Powers Authority Under Section 5 of the San Mateo County Cities Insurance Group Joint Powers Agreement and Approving a Dissolution Agreement to Govern the Dissolution Process
SUMMARY: The San Mateo County Cities Insurance Group Joint Powers Authority (the “Cities Group”) was formed on October 5, 1978 for the purpose of allowing its Member Agencies to pool resources to fund and administer their respective workers’ compensation programs. The Cities Group now also administers other benefits, such as life insurance, long term disability, and dental programs, on behalf of some of the Member Agencies. However, the Cities Group’s primarily purpose remains the administration of workers’ compensation programs.

The founding members of the Cities Group were the Cities of Half Moon Bay, Foster City, and Brisbane, and the Towns of Atherton and Hillsborough. The City of San Carlos was added to the membership in 1989 and the City of Dublin was added to the membership in 2004. Although the City of Brisbane withdrew from membership in the early 2000s, the Cities Group has enjoyed stable membership during its 47-year history.

However, in November 2024, the City of Foster City submitted a withdrawal notice to the Cities Group, indicating that it planned to withdraw from membership as of July 1, 2025. Pursuant to Section 4 of the Joint Powers Agreement (the “JPA”), as amended in 1997, any Member Agency that has completed at least three years of membership may unilaterally withdraw from the Cites Group on July 1 of any calendar year, after providing notice of its intent to withdraw on or before January 1 of that same year. Ultimately, Foster City’s membership was terminated August 1, 2025, pursuant to an agreed termination under Section VIII(B) of the Cities Group Bylaws, as amended in 2000. Under the Termination Agreement with Foster City approved by the Cities Group Board of Directors, Foster City assumed all liability for the past, current, and future claims it generated. The Cities Group, therefore, is no longer responsible for any claims generated by the City of Foster City.

After receiving the withdrawal notice from the City of Foster City in November 2024, four of the five other Member Agencies also submitted withdrawal notices prior to the January 1, 2025 deadline.

Unlike Foster City, however, those Member Agencies indicated that they issued their notices in order to reserve their right to withdraw from the Cities Group but had not yet determined whether they intended to withdraw as of July 1, 2025. Ultimately none of the other Member Agencies withdrew from the Cities Group, and the membership remains as follows: the City of San Carlos, the City of Half Moon Bay, the City of Dublin, the Town of Atherton, and the Town of Hillsborough. -77-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

Although the Cities Group has continued to operate successfully after the departure of the City of Foster City, the future viability of the Cities Group is in question. Because Foster City represented a disproportionately large share of the total claims handled by the Cities Group, the Group will become financially less stable and will be less attractive on the reinsurance market. With this in mind, and at the Board’s direction, Cities Group staff worked with the Board President to conduct initial research into the possibility of merging the Cities Group with another Joint Powers Agency or other public agency administering workers’ compensation programs. Unfortunately, each of the identified agencies indicated that Cities Group members wishing to move their workers’ compensation programs would have to do so individually, rather than moving all five Cities Group members as a unit.

The Cities Group Board President and staff presented this finding to the Board of Directors in February 2025 and recommended that each Member Agency conduct its own due diligence to determine where it might take its claims should the Cities Group dissolve. The Board held several discussions in the following months about the future of the Cities Group and the prospect of dissolving the Group.

On June 10, 2025, the Cities Group Board of Directors approved a resolution, which found that an orderly dissolution of the Cities Group was the preferable method of transitioning the Member Agencies out of the Cities Group, rather than having each Member Agency individually withdraw.

That resolution directed Cities Group staff to create and present to the Board a dissolution plan under which the Cities Group would cease providing claims administration and all other benefit services on behalf of the Member Agencies on or before December 31, 2025 .

In accordance with the Board’s direction, the Cities Group staff drafted a Dissolution Agreement that would govern the dissolution process and establish the on-going rights and obligations of the Member Agencies. The draft of that Dissolution Agreement was provided to each of the Member Agencies and Cities Group staff worked with representatives from each Member Agency to address questions, concerns, and objections to the terms of that Dissolution Agreement. After completing that review process with representatives of each of the five Member Agencies, the Dissolution Agreement was presented to the Board at its meeting on September 9, 2025.

DISCUSSION
At its September 9, 2025 meeting, the Board of Directors approved the resolution attached here as Attachment 1, which formally recommends to the councils of the Member Agencies that they each consent to the dissolution of the Cities Group and approve the Dissolution Agreement attached to that resolution as Exhibit A. Pursuant to Section 5 of the JPA, the Cities Group cannot dissolve unless all Member Agencies consent to the dissolution. Therefore, each of the five councils must adopt resolutions providing that consent.

Attached here as Attachment 2 is a proposed resolution that would consent to the dissolution of the Cities Group and authorize the City Manager to execute the Dissolution Agreement recommended by the Cities Group Board of Directors. If approved by all five councils of the Member Agencies, the Dissolution Agreement will govern the dissolution process and set forth the rights and responsibilities of each Member Agency during that process. Most notably, the Dissolution Agreement would require the following:
-78-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

- Each Member Agency must remain a member of the Cities Group for the duration of the dissolution process (Section 2);
- Cities Group will cease all claims operations and the provision of other benefits as of the “Transfer Date” on January 1, 2026 (Section 4);
- Each Member Agency must take responsibility for all of its past, current, and future claims as of the Transfer Date and assume all liability associated with those claims (Section 5); - As of the Transfer Date, the costs of operating the Cities Group will be split equally among the five Member Agencies as “Shared Expenses”, rather than apportioned based on claim volume (Section 6);
- At the direction of the Board of Directors, the Cities Group will conduct audits and/or other studies to determine the correct ending fund balances for each of the Member Agencies as of the Transfer Date, and those with negative balances will be required to bring those balances to $0 on or before August 1, 2026 (Section 7);
- Member Agencies with positive fund balances of the Transfer Date that are not depleted through the assessment of Shared Expenses shall be refunded the balance of those funds prior to the final dissolution of the Cities Group (Section 7);
- The Board shall select one or more Member Agencies to retain the records of the Cities Group for the periods required by statute (Section 12);
- The Member Agencies agree to waive all potential claims related to the Cities Group that they may have against one another or against the Cities Group (Section 14); and - The dissolution will occur at the time that the Board finds by adoption of an “Ending Resolution” that all of the Cities Group’s outstanding obligations have been resolved.

Several Member Agencies requested that Cities Group staff provide an estimated schedule for the dissolution process. Attached here as Attachment 3 is a preliminary estimated schedule, which anticipates the completion of the dissolution process by the end of calendar year 2026. However, pursuant to Section 5 of the JPA, the Cities Group must resolve all of its outstanding obligations before it can complete the dissolution process. The actual timeline for the dissolution, therefore, will be dictated by the pace at which the outstanding obligations of the Cities Group can be resolved.

It is important to quickly obtain the consent of the Member Agencies to the recommended dissolution so that each Member Agency and the Cities Group staff have clarity about, and can plan for, the date on which claims will no longer be handled by the Cities Group. It is also important to allow enough time for Cities Group staff to work with the Member Agencies to transfer claims to new claims administrators. For those reasons, each Member Agency must obtain council consent to the dissolution and approval of the Dissolution Agreement by October 31, 2025. -79-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

For reference, the Cities Group JPA and Bylaws, and the amendments to each, are attached here as Attachment 4.

CONCLUSION
Staff requests that the City Council adopt the proposed resolution included as Attachment 1, which will consent to the dissolution of the Cities Group and approve the Dissolution Agreement.

FISCAL IMPACT: With the execution of the dissolution agreement, the Town agrees to the repayment schedule of equity owed by August 1, 2026. Upon dissolution (12/31/2025) and final accounting/equity balancing, prior to payout deadline, the Town anticipates to pay the balance of its current negative equity, currently estimated at $646,748.13, as of March 31, 2025. Once the final accounting is complete, staff will return with the anticipated cost impact associated, payment plan details, and incorporate any impacts into the FY 2026-27 budget.

ENVIRONMENTAL ISSUES: The proposed action 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 in the environment.

ATTACHMENTS:

1. Resolution and Exhibit A Dissolution Agreement

2. Dissolution Resolution

3. Estimated Schedule for Dissolution

4. Cities Group JPA and Bylaws
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Adopt the resolution consenting to the dissolution of the San Mateo County Cities Insurance Group Joint Powers Authority under Section 5 of the San Mateo County Cities Insurance Group Joint Powers Agreement and Approving a Dissolution Agreement to Govern the Dissolution Process.
-80-
RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

CONSENTING TO THE DISSOLUTION OF THE SAN MATEO COUNTY CITIES INSURANCE GROUP JOINT POWERS AUTHORITY UNDER SECTION 5 OF THE

SAN MATEO COUNTY CITIES INSURANCE GROUP JOINT POWERS

AGREEMENT AND APPROVING A DISSOLUTION AGREEMENT TO GOVERN

THE DISSOLUTION PROCESS
WHEREAS, the San Mateo County Cities Insurance Group Joint Powers Authority, known as the “Cities Group,” is a Joint Powers Authority formed on October 5, 1978 for the purpose of allowing its membership agencies to pool resources to fund and administer their respective workers’ compensation programs; and
WHEREAS, the governance of the Cities Group and the rights and obligations of the member agencies of the Cities Group are as described in the San Mateo County Cities Insurance Group Joint Powers Agreement (“JPA”), originally adopted on October 5, 1978 and as amended, and the Bylaws of Cities Group (“Bylaws”), as amended from time to time; and
WHEREAS, prior to January 1, 2025, five of the six members of the Cities Group issued withdrawal notices pursuant to Section 4 of the JPA, as amended in 1997, indicating either intents or interests in withdrawing from the Cities Group; and
WHEREAS, on August 1, 2025, the City of Foster City withdrew from membership in the Cities Group pursuant to an Agreed Termination under Section VIII(B) of the Cities Group Bylaws; and
WHEREAS, the five remaining members of the Cities Group are the City of San Carlos, the City of Half Moon Bay, the City of Dublin, the Town of Atherton, and the Town of Hillsborough (collectively, the “Member Agencies”); and WHEREAS, in anticipation of Foster City’s withdrawal and in light of the withdrawal notices issued by the majority of the Cities Group’s membership, on June 10, 2025, the Board of Directors adopted a resolution stating its intent to recommend the dissolution of the Cities Group to the Member Agencies; and
WHEREAS, that June 10, 2025 resolution included the Board’s finding that an orderly dissolution of the Cities Group was the preferable method of transitioning the Member Agencies out of the Cities Group, rather than allowing each Member Agency to individually withdraw; and
WHEREAS, Cities Group staff worked with representatives of each of the Member Agencies to draft the Dissolution Agreement attached hereto as Exhibit A (“Dissolution Agreement”); and
-81-
ATTACHMENT 1
2 WHEREAS, the Cities Group Board of Directors reviewed the Dissolution Agreement at its meeting of September 9, 2025 and, by a 4-0-1 (one member absent) vote, adopted a resolution that formally recommended that the Council for each Member Agency consent to the dissolution of the Cities Group and approve the Dissolution Agreement; and
WHEREAS, Section 5 of the JPA requires that the Member Agencies remain members of the Cities Group and that the assets of the Group not be divided and returned to the Members Agencies until all outstanding obligations of the Cities Group have been resolved and/or each member agency executes a contract with the Cities Group to either pay off its outstanding liabilities or accept responsibility for its outstanding claims; and
WHEREAS, Cities Group shall continue to administer and adjust all pending claims until the time that they are transferred and accepted by the Member Agencies or their identified claims administrators on or before January 1, 2026; and
WHEREAS, under Section 5 of the JPA, the Cities Group may not dissolve and the Dissolution Agreement shall not be operable unless and until each of the Member Agencies consents to the dissolution.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Hillsborough that it consents to the dissolution of the Cities Group under Section 5 of the JPA and approves the Dissolution Agreement attached hereto as Exhibit A. The City Manager or their designee is authorized to execute the Dissolution Agreement on behalf of the Town.

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 13th day of October 2025, by the following vote of the members thereof:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
-82-

AGREEMENT DISSOLVING THE SAN MATEO COUNTY CITIES INSURANCE GROUP PURSUANT TO SECTION 5 OF THE SAN MATEO COUNTY CITIES INSURANCE GROUP JOINT POWERS AGREEMENT (“JPA”)
This DISSOLUTION AGREEMENT (the “Dissolution Agreement”) is hereby made and entered into by and among the members of the San Mateo County Cities Insurance Group, a California Joint Powers Authority (“Cities Group” or “Group”). Those “members” are the City of San Carlos, City of Dublin, City of Half Moon Bay, Town of Atherton, and Town of Hillsborough (collectively, the “Member Agencies” or “Parties”).

RECITALS
A. The Cities Group is a Joint Powers Authority formed on October 5, 1978 for the purpose of allowing its Membership Agencies to pool resources to fund and administer their respective workers’ compensation programs.

B. The governance of the Cities Group and the rights and obligations of the Member Agencies are as described in the San Mateo County Cities Insurance Group Joint Powers Agreement (“JPA”), originally adopted on October 5, 1978 and as amended, and the Bylaws of Cities Group (“Bylaws”), as amended from time to time.

C. The Cities Group Board of Directors has recommended, by resolution adopted September 9, 2025, that the Cities Group be dissolved.

D. Section 5 of the JPA provides that the Cities Group may be dissolved upon the consent of all Member Agencies.

E. Section 5 of the JPA requires that, upon the consent to dissolve the Cities Group, the assets of the Cities Group not be divided and returned to the Member Agencies until all outstanding obligations of the Group have been resolved and that the final disposition of assets will be made in proportion to the contributions of the then-participating Member Agencies.

F. In July 2025, the Cities Group Board of Directors approved a Termination Agreement with the City of Foster City to remove Foster City as a Member Agency (the “FC Termination Agreement”). The FC Termination Agreement requires the Cities Group to return the balance of funds contributed by Foster City to the Group, less expenses. Pursuant to the FC Termination Agreement, those funds paid by Foster City to the Cities Group are available to pay continuing costs of the Group, but the Group must reimburse an amount equal to the ending balance(s) of those funds, less expenses, to Foster City within ten years of the termination of its membership or prior to dissolution of the Cities Group.

NOW THEREFORE, in consideration of the Recitals above and the mutual covenants contained herein, the Parties agree as follows:

1. The foregoing recitals are true and correct and incorporated herein as terms of this Dissolution Agreement.

2. Dissolution. The Member Agencies hereby agree to dissolve the Cities Group pursuant to Section 5 of the JPA. The Cities Group shall not dissolve and shall continue to operate until such time that the -83-

EXHIBIT A
Board of Directors finds by adopted resolution that all obligations of the Group have been resolved (the “Ending Resolution”). Such Ending Resolution shall include a final accounting of the assets of the Group and indicate how those assets shall be divided and returned to the Member Agencies, in accordance with the JPA and this Dissolution Agreement. The Member Agencies each agree not to withdraw from nor terminate their membership in the Cities Group, until such time that the Board approves the Ending Resolution.

3. Operations During Dissolution Process. The operations and governance of the Cities Group shall continue to be governed by the provisions of the JPA and the Bylaws, except that the Cities Group’s powers shall be limited to winding up the affairs of the Group as of the Transfer Date defined in Section 4, below. The terms of this Dissolution Agreement shall also govern the operations and governance of the Cities Group and, when in conflict with the JPA and/or Bylaws, the provisions of this Dissolution Agreement shall control.

4. Transfer of Claims Operations to New Administrators or Agencies. The Cities Group shall cease all claims operations and the provision of all other benefits or services on behalf of the Member Agencies on or before January 1, 2026 (“Transfer Date”). Beginning on the Transfer Date, the Cities Group is expressly prohibited from administering claims or providing other benefits or services to the Members Agencies or others. Each Member Agency shall be responsible for, before the Transfer Date, taking all actions necessary to replace those services so that there is no interruption in claims operations or the provision of other benefits and services. Those actions will likely include but may not be limited to: retaining a new claims administrator; obtaining authorization from the Office of SelfInsurance Plans (OSIP) to accept responsibility for all existing, past, and future claims; and coordinating with Cities Group to transfer all closed and pending claims to the Member Agency or its identified claims administrator.

The Member Agencies understand and agree that the Cities Group will not retain claims administration staff beyond December 31, 2025. Any Member Agency that is unable for any reason to administer its own pending and future claims as of the Transfer Date shall be responsible for any liability or assessed penalties arising out of that inability, and that Member Agency shall indemnify and defend the Group, and the other Member Agencies, to the fullest extent allowed by law against any such liability or penalties.

5. Full Assumption of Claims Liability. On or before the Transfer Date, each Member Agency shall assume all liability for all claims generated by it, including without limitation all past, closed, pending, and future claims. Upon the transfer of claims data to the Member Agency or its designated administrator, but in no case later than the Transfer Date, each Member Agency agrees to indemnify, release from liability, defend, and hold harmless Cities Group, its Directors, officers, contractors and agents or their employees, and the other Member Agencies and their officers, contractors, agents, and employees, from and against any and all claims, suits, actions, liability, loss, damage, expense, cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, which may be brought against, or suffered or sustained by Cities Group, its Directors, officers, contractors, agents or their employees, or the other Member Agencies and their officers, contractors, -84-
agents, and employees, caused by, or alleged to have been caused by, any acts prior to the Transfer Date.

6. Shared Expenses. All claims costs and expenses shall continue to be paid out of each Member Agency’s existing reserve balances. In accordance with the JPA, the operational costs of the Cities Group shall, until the Transfer Date, continue to be apportioned to each Member Agency based on the proportional share of assessments for the provision of benefits. Upon the Transfer Date, all operational expenses incurred by the Cities Group shall be shared equally among the Member Agencies (“Shared Expenses”), except for those expenses attributable directly to a Member Agency or subset of the Member Agencies.

7. Final Accounting and Equity Balancing. After the Transfer Date, the Board of Directors shall commission studies necessary to substantiate an accurate final accounting of each Member Agency’s respective equity in or deficit to the Cities Group as of the Transfer Date. The costs associated with such studies shall be a Shared Expense of the Group. At the discretion of the Board of Directors, these studies will likely include an audit that examines: historical claims data; deposits and withdrawals; assessments paid by the Member Agencies; correspondence to the Member Agencies related to deposits and withdrawals; and compliance with standard budget and accounting practices, the JPA, the Bylaws, and actions of the Board of Directors.

Upon the conclusion of those studies, a final accounting shall be conducted to identify the fund balances of each respective Member Agency as of the Transfer Date Should it be determined that the sum of a Member Agency’s fund balance(s) is less than zero, that Member Agency shall, within 30 days of the final accounting, pay the Group the amount necessary to bring its equity in the Group to zero. The Member Agency may, however, elect to pay only $50,000 within 30 days if it is determined that the Member Agency must pay in excess of that amount to bring its equity in the Group to zero. If a Member Agency makes this election, it shall pay an additional $20,000 each subsequent month until its equity in the Group is zero. If the amount required to bring the Member Agency’s equity to zero has not been fully paid by August 1, 2026, the Member Agency shall pay the balance of that amount on that date. Any such Member Agency shall also be regularly assessed to cover its portion of the Shared Expenses through the dissolution of the Group.

If it is determined that a Member Agency’s fund balance(s) cause that Member Agency to have positive equity in the Group, the Member Agency shall be reimbursed an amount calculated to bring its equity to zero, less any Shared Expenses paid from the remaining fund balance(s), which shall be identified in the Ending Resolution and paid immediately thereafter. Should the Shared Expenses attributed to a Member Agency ever exceed the Member Agency’s equity in the Group, that Member Agency shall be regularly assessed to cover its portion of the Shared Expenses through the dissolution of the Group.

8. Executive Management. The Cities Group has no employees. Management of the Cities Group is currently provided on a contractual basis by Chrisman and Associates, with its principal, Paul Chrisman (“Chrisman”), serving as the Executive Director of the Cities Group. Chrisman shall continue to serve as the Executive Director beyond the Transfer Date unless and until the Board -85-
determines that such service is no longer necessary. As a means of reducing the cost of winding down the affairs of the Cities Group, the Board is authorized and expected to negotiate an amendment to the agreement with Chrisman and Associates to allow Chrisman to continue performing limited administrative functions on an hourly basis.

At such time that the Board of Directors determines that the remaining obligations of the Cities Group are de minimis – meaning that the day-to-day operations of the Group have ceased – the Board may authorize the Board President or other Board member to act as the Executive Director of the Cities Group in lieu of retaining Chrisman or other contracted Executive Director. In such case, the Board of Directors shall also appoint the finance director, administrative services director, or similar employee of one of the Member Agencies to manage the finances of the Cities Group and support the Executive Director in performing administrative functions. The Board President or any Board member serving as Executive Director shall not be compensated or reimbursed for time dedicated to serving as Executive Director. However, any costs incurred by the Member Agency whose employee is appointed to manage the finances of and support the administrative functions of the Cities Group, including the cost of the employee’s time, shall be reimbursed to that Member Agency and paid as a Shared Expense.

Nothing in this section shall preclude the Board, in its discretion, from retaining outside contractors or consultants to perform the executive and administrative functions of the Group in the event that such need arises and none of the Member Agencies and/or Board members agree to perform those functions. Any cost associated with retaining those contractors or consultants shall be Shared Expenses.

9. Board and Board President. Each Member Agency shall appoint one Board member, who shall serve until that person is no longer a representative of the Member Agency and/or the Member Agency has appointed a new Board member. Each year in January, the Board will nominate and vote to select a Board President that shall serve in that role until a new President is selected the following January. If the President vacates their position, the Board shall meet within two weeks of the vacancy and appoint a new Board member as President for the remainder of the current term.

10. Regular Board Meetings. After the Transfer Date, the Board shall meet no less than four times a year to review the status of the outstanding obligations of the Cities Group and take other actions necessary to resolve those obligations.

11. Resolving Obligations and Liabilities. The Board of Directors shall take all actions necessary, in its discretion, to resolve all obligations and liabilities of the Group. Those acts may include, but are not necessarily limited to, executing and/or canceling contracts; authorizing the submission of claims and/or the initiation of litigation; and accepting, denying, defending against, and/or settling claims brought against the Group, including litigated claims.

12. Records Retention. Upon the transfer of all claim files to the respective Member Agencies or their identified claims administrators, the Cities Group shall have no further obligation to retain those records. The Cities Group shall retain all of its other records for statutorily required periods. At such -86-
time that the executive and administrative functions of the Group are no longer performed by Chrisman and Associates, the Board shall select at least one Member Agency to receive and retain the business and public records of the Cities Group for the statutorily required periods, even if those periods extend beyond the dissolution of the Cities Group. The Board shall review and approve an itemization of the records that are to be purged by Chrisman and Associates rather than transferred to one or more of the Member Agencies.

13. Ending Resolution. Upon finding that all obligations of the Cities Group have been resolved, the Board of Directors shall approve the Ending Resolution by unanimous vote. Upon the approval of the Ending Resolution, the Cities Group shall be considered dissolved.

14. Mutual Waiver. As of the date that the Ending Resolution is adopted, each Member Agency waives all claims against the Cities Group and against one another with respect to the operation or governance of the Cities Group.

The Councils of each of the Member Agencies have authorized, by adopted resolutions, the dissolution of the Cities Group pursuant to the terms of this Dissolution Agreement. The signatories below have each been authorized to bind their respective Member Agencies by executing this Dissolution Agreement on their behalf. _______________________________Dated:________________________________ Town of Atherton
_______________________________Dated:________________________________ City of Dublin
________________________________Dated:________________________________ Town of Hillsborough
________________________________Dated:________________________________ City of Half Moon Bay
________________________________Dated:________________________________ City of San Carlos
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ATTACHMENT 2
-89-
-90-
Action Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Board Recommends Dissolution Agreement (9/9/2025 Board Meeting) Member Agencies Approve Dissolution Plan (Council meetings through October 2025) Transition of claims files to new administrators (Deadline 12/31/2025) Cities Group stops handling claims and benefits
Board of Directors Retains Consultant(s) to conduct costs studies Cost studies Conducted
Equity balancing (must be balanced by August 1, 2026)
Adopt repayment schedule for Foster City funds (must be complete by July 1, 2026) Identify Member Agency to retain records and transfer records Close out contract with Chrisman & Associates
Adopt ending resolution and make closeout filings with State Payout Remaining Equity to Member Agencies (and payment to Foster City) Resolution of Cost Disputes (Unknown timeline)
-91-
ATTACHMENT 3

A JOINT POWERS AGREEMENT
AMONG
Those public agencies signatory to this agreement for the purpose of establishing, operating and maintaining a Self-Insurance Program for Workers' Compensation.

WHEREAS, this agreement is entered into pursuant to the pro~isions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500, et seq.) of the California Government Code, relating to joint exercise of powers between the public agencies signatory hereto (and also those which may hereafter become signatory hereto) for the purpose of operating a program to be known and designated as THE SAN MATEO COUNTY CITIES INSURANCE GROUP hereinafter designated as the Group; and WHEREAS, it is to the mutual benefit of the parties herein subscribed and in the best public interest of said parties to join together to establish this Joint Powers Agreement to accomplish the purposes hereinafter set forth; and
WHEREAS, the development, organization and implementation of such a program is of such magnitude that it is desirable for aforesaid parties to join together in this Joint Powers Agreement in order to accomplish the purposes hereinafter set forth; and
WHEREAS, the signatories hereto have determined that there is a need by public agencies for a self-insurance system for Workers' Compensation; and WHEREAS, a feasibility study has been conducted which does recommend that the public agencies agree to self-insure under a Joint Powers Agreement that provides that the cost will be apportioned by losses and administrative expense as determined by the Governing Board; and -92-
ATTACHMENT 4
......... ·.·.··.·····.•-···-•···'·'--'····'-'·"'·""·"'"•'-'"'•""'·",.,.,,., •. •,•·•••·••,•·•••·•••••• ·············································-····· . ."s.··,•·,,..1.,,,,, •• , •••• ,,.,, WHEREAS, Title 1, Division 7, Chapter 5, of the Government Code of the State of California authorizes the joint exercise by two or more public agencies of any power conman to them; and
WHEREAS, it is the desire of the signatories hereto to jointly provide for a Self-Insurance System for Workers' Compensation for their mutual advantage and concern;

NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL ADVANTAGES TO BE DERIVED

THEREFROM, AND IN CONSIDERATION OF THE EXECUTION OF THIS AGREEMENT BY OTHER PUBLIC AGENCIES AS DEFINED, EACH OF THE PARTIES HERETO DOES HEREBY AGREE AS FOLLOWS:

1. CREATION OF THE SAN MATEO COUNTY CITIES INSURANCE GROUP - Pursuant to Section 6500 of Title 1, Division 7, Chapter 5, of the Government Code, there is hereby created a public entity, separate and apart from the parties hereto, to be known as the San Mateo County Cities Insurance Group, hereinafter designated as the Group. The debts, liabilities, or obligations of the Group do not constitute debts, liabilities or obligations of any party to this agreement.

The Group shall have the powers conman to public agencies set forth in Section 1 of this agreement, and is hereby authorized to do all acts necessary for the exercise of said common powers, including, but not limited to, any or all of the following: to make and enter into contracts; to incur debts, liabilities or obligations which shall not constitute debts, liabilities or obligations to any party to this agreement; to acquire, hold or dispose of property; to receive gifts, contributions and donations of property, funds, services and other forms of assistance from persons, firms, corporations and any governmental entity; and to sue and be sued in its own name. Said powers shall be exercised in the manner provided in the law, and except as expressly set forth herein, subject only to such restrictions upon the manner of exercising such powers as are imposed upon public agencies in the exercise of similar powers.
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2. PURPOSE - The purpose of the Group shall be to provide to the members the capabilities of self-insurance, pooling, and joint purchases of insurance; establishment and maintenance of a fund to pay self-insured losses; establishment and maintenance of a fund to pay for desired insurance coverages; claims adjustment and administration, safety engineering, and other risk management services; and to provide a self-insurance plan and system for Workers 1 Compensation claims against members and as such, to perform, or contract for the performance of, the financial administration, policy formulation, claim service, legal representation, safety engineering, and other development as necessary for the payment and handling of all Workers' Compensation claims against members as required by State law, and be required to purchase and maintain a policy of excess insurance, said Fund being used to pay the deductible portion thereof. Said payment and handling for any member shall be for all Workers' Compensation claims filed under the laws of the State of California arising out of facts occurring during the period of membership in the Group. The Group shall not pay or handle for a member any Workers' Compensation claims which arise out of facts occurring before membership commences or after membership terminates.

3. MEMBERSHIP - Each party to this agreement must be eligible for membership as defined in the Bylaws, and becomes a member on the effective date of this agreement, and is entitled to the rights and privileges, and is subject to the obligations of membership, all as are provided in this agreement. Public agencies desiring membership after initial operation has begun shall apply under the provisions of the Bylaws.

4. WITHDRAWAL - Any member, having completed three (3) years as a party to this agreement, may withdraw as a party at the end of any fiscal year provided however that such withdrawing party has provided prior written notice of its intention to withdraw to the Board of Directors of the Group no later than March 1 prior to the fiscal year of withdrawal. The fiscal year of the parties -3-
-94-
to this agreement commences on the first day of July and terminates on the 30th day of June. Refunds of the unencumbered portion of the reserve fund contributed by a withdrawing member may be made on an incremental schedule as determined by the Board. Said schedule shall commence no sooner than five years following the date of withdrawal and be completed no later than ten years from the withdrawal date. The Group shall remain responsible only for those claims of withdrawing members which were incurred while a member of the Group.

5. DISSOLUTION OF THE GROUP - At any time the activities of the Group may be suspended or discontinued upon the consent of all the parties hereto.

However, the Group shall continue to be responsible for all existing assets and liabilities. No assets may be divided or returned until all outstanding obligations of the Group have been resolved or a paid-up contract has been enacted which will remove any further obligation from the Group. Said contract may provide for the members to accept responsibility for any outstanding claims. Disposition of assets will be made in proportion to the contributions of the then participating public agencies.

6. BYLAWS - The Group shall be governed pursuant to those certain Bylaws, a copy of which is attached hereto as 11 Exhibit A11 , and by this reference made a part of this agreement as if fully set forth herein. Wherever in this agreement the Bylaws are referred to, said Bylaws shall be those set forth in Exhibit A.

Each party to this agreement agrees to comply with and be bound by the provisions of said Bylaws, and further agrees that the Group shall be operated pursuant to this agreement and said Bylaws.

A two-thirds vote of those entitled to vote shall be sufficient to amend the Bylaws, provided that a quorum is present.

7. GOVERNING BOARD - The Group shall be governed by a board composed of one person appointed by each member agency. Each such agency shall also appoint one alternate. The alternate appointed by an agency shall have the authority to attend, participate in, and vote at any meeting of the Board when the regular member for whom he is an alternate is absent from said meeting. Each member or -4- -95-
alternate of the Board shall serve at the pleasure of the agency by which he has been appointed. The successor in office of any member of the Board or alternate shall be appointed by the agency which appointed the predecessor of such member of the Board or alternate.

Each member agency shall have one vote. A vote of the majority of those entitled to vote shall be sufficient to constitute action, provided that a quorum is present except as otherwise provided herein.

8. AFFIRMATIVE ACTION POLICY STATEMENT - It is the permanent and voluntary policy of this Board to practice fair and impartial employment, recognizing applicants and employees on the basis of personal and professional merit, thereby reaffirming the dignity o_f individuals without regard to race, color, creed, national origin, ancestry, age, sex, or physical handicap in every aspect of personnel policies, practices, and treatment of personnel.

9. POWERS OF THE BOARD OF DIRECTORS - The Board shall be responsible for the ongoing operations of the Group and is hereby empowered to implement and enforce these Bylaws and such other rules, regulations and procedures as the Board shall adopt. The Board shall study and determine the best method of processing Workers' Compensation claims, and whether claim administration should be contracted for or provided for by staff. The Board shall be empowered to determine contribution rates annually as provided in the Bylaws and the method by which contributions will be paid to the Self-Insurance Fund. The Board shall also be empowered to provide for additional assessments during the year, if necessary, to allow for increased cost due to changes in the law or excessive claim costs. The Board shall insure that a complete and accurate system of accounting of the fund shall be maintained at all times consistent with established accounting procedures.

The Board shall determine the manner in which Workers' Compensation claims shall be processed. Such processing shall conform to all provisions of law now in effect or later enacted.
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10. ADDITIONAL PARTIES - Additional parties to this agreement may be added as provided in the Bylaws.

UPON EXECUTION BY ALL OF THE OFFICIALS DESIGNATED IN THE FOLLOWING, THIS AGREEMENT SHALL BECOME EFFECTIVE ON OCTOBER 5, 1978 AND SHALL CONTINUE UNTIL TERM INA TED AS HEREIN PROVIDED. INSURANCE PROTECTION UNDER THIS AGREEMENT SHALL COMMENCE EFFECTIVE 12:01 A.M. JANUARY l, 1979.
-6-
~s•?~$
Mr. Melvin A?i1eo, Mayor City of Half Moon Bay
,,,.~- ,,,, I ~ ~·· b-~ .// .,. ..
:~·~r./ 1/?l .~c~<-"'--Y~
Mr. Robert Davidson, City Manager Town of Hillsborough
-97-

AGREEMENT AMENDING THE JOINT POWERS AGREEMENT CREATING A SELF-INSURANCE PROGRAM FOR WORKERS' COMPENSATION CALLED THE SAN MATEO COUNTY CITIES INSURANCE GROUP.

It is hereby agreed by the undersigned cities that the Joint Powers Agreement creating The San Mateo County Cities Insurance Group as executed on October 5, 1978, be amended as follows:

Page six, lines five and six of said Joint Powers Agreement which read: "INSURANCE PROTECTION UNDER THIS AGREEMENT SHALL COMMENCE EFFECTIVE 12:01 A.M. JANUARY 1, 197911 shall be amended to read as follows: "INSURANCE PROTECTION UNDER THIS AGREEMENT SHAbl. COMMENCE EFFECTIVE 12:01 A.M. DECEMBER 30, 197811 • Date November 13!1 1978 . . ert, Mayor City of Foster City City of Half Moon ~ay
u.??.~~,tS)~
Mr. Robert Davidson, City Manager
Date
Town of Hillsborough
-98-

AGREEMENT ADDING ADDITIONAL PARTY TO

SAN MATEO COUNTY CITIES JOINT POWERS AGREEMENT
THIS AGREEMENT is entered into pursuant to San Mateo County Cities Insurance Group By-Laws Section VI.

By execution of this Agreement the City of San Carlos shall, and hereby does, become a party to that certain Joint Powers Agreement and By-Laws dated October 5, 1978 and Amended on November 20, 1978, and agrees to, and shall on and after May 1, 1989, be bound by all of the terms and conditions thereof.

DATED: ~ - l '2.- g4
DATED: 'J - / 'j.. - ?1 CITY OF FOSTER CITY
By~~~
CITY OF HALFj~OQN BAY
By )/\,\.evls, .~
DATED: 1ol-s1/ar I , TOWN OF HILLSBOROUGH .

Br~@_//~
DATED: :ili1fs1 I I
-99-

AGREEMENT AMENDING THE JOINT POWERS AGREEMENT

CREATING THE SAN MATEO COUNTY CITIES INSURANCE GROUP
It is hereby agreed by the undersigned that the Joint Powers Agreement creating the San Mateo County cities Insurance Group as executed on October 5, 197 8, and as amended from time to time thereafter, shall be further amended and shall provide as follows:

1. The Joint Powers Authority shall henceforth be known as the "Cities Group". All references in the Joint Powers Agreement and amendments thereto to "San Mateo County Ci ties. Insurance Group" shall henceforth refer to and be construed to mean the "Cities Group".

2. Page one, lines eighteen and nineteen shall be amended and henceforth provide: "WHEREAS, the signatories hereto have determined that there is a need by public entities for selfinsurance procedures and the purchase of insurance for the benefit of the parties hereto pertaining to employee benefit and liability programs of every kind and nature; and"

3. Page two, lines four, five, and six shall be amended and henceforth provide: "WHEREAS, it is the desire of the signatories hereto to jointly provide for self-insurance and insurance for employee benefit and liability programs of every kind and nature for their mutual benefit and advantage;"

4. Page three, lines one through seventeen shall be amended and henceforth provide: "PURPOSE - The purpose of the cities Group shall be to provide to its members the capabilities of selfinsurance, pooling, and joint purchases of insurance including but not limited to employee benefit programs of every kind and nature, as for example Workers' Compensation, long term disability, life, health, dental, vision, accidental death and dismemberment and retirement benefits. The Cities Group shall also have authority to provide general liability, property, auto liability, fidelity, crime and other insurance programs on a joint purchase or pooled self insurance basis. The Cities Group shall arrange establishment and maintenance of a fund to pay self-insured losses; establishment and maintenance of a fund to pay for desired insurance coverages; claims adjustment and administration, safety engineering, and other risk management services; and to provide a self-insurance plan and system for Workers' compensation and other benefit program claims against members and as such, to perform, or contract for the performance of, the financial administration, policy formulation, claim service, legal representation, safety engineering, and other development as necessary for the payment and handling of all employee benefit program claims against members, and be required to purchase and maintain a policy of excess insurance, said Fund being used to pay the deductible portion thereof. Said payment and -1-
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handling for any· member shall 1:le for all employee l::lenefit or liability programs estahlished by the Cities Group's Board of Directors arising out of facts occurring during the period of membership in the cities Group. The cities Group shall not pay or·. handle for a member' s··employee benefit or liability program claim which arises cut of facts occurring before membership commences or after membership terminates.

DATED: a~ /1_,, /'/tf2,, TOWN OF ATHERTON
By:~f:-~
DATED: July 30, 1992
_;2/~lt;3 DATED: _ __.:.I_~/_'., __ _ CITY" OF' FOSTER CITY DATED: Juna 15. 1993 CITY OE' HALF MOON BAY
By: ~~kJ~ ----------------
T0iili OF BILLSEOROOGE
.....--;:::- __ _
DATED: __ JU_L_Y_1_3~,-·~19~9~2- CI~Y OF SAN CA.'tUtCS
By:=:5
MAYOR
~~·
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Acrreement Amending The Joint l?owe.rs Agreement
Creating the Cities G.rouo
:rt is hereby agreed by the undersigned that the Joint Powers Agreement creating the Cities Group as e:~ecuted on October 5, 1978, and as amended from time to tL~e thereafter, shall be further •amended and shall provide as follows:

1. Page 3, Section 4. WITHDR.~WAL - P...ny member, having completed thre·e (3) years as a party to this agreement, may withdraw as a party at the end of any fiscal year provided however that such withdrawing party has a total. fund bal.a.nce in the Group exceed±:ng .its .liabi.lities val.ued on the .last day of its membership .in the ·'"same ratio as the remaining members in total, bu.t in no case :Less than 1. 5 : 1. Such w.ithdrawing party must provide aa.s 1=1re~,~:.dee prior written notice of its intention to withdraw to the Board of Directors o! the Group no later than Harah :.. th~ Janua._'7 l prior to the fisca.l year of withdrawal. The fiscal year of the parties to this agreement commences on the first day of July and tei;-minates on the 30th day of June ..

Refunds of the unencumbered portion of the reserve fund contributed by a withdrawing member may be made on an incremental schedule as determined by the Board. Said schedule shall commence no sooner than five years following the date of withdrawal and be completed no later than ten years from the withdrawal date. The Group sh.all remain responsible only for those claims of withdrawing members which were incurred while a member of the Group.

DATED: ~,pj' «S: I tr1
DP..TED :-4---~~P:-1-+-rDATED: ::'" .. ~ Jr/ct 7 __ lS--~1/ _____ _ TOWN OF ATEZR1'0N
By )<,~,-'d QJ a: hJi~
CITY OF Et,,-/:wz ~'!
Bt: .di&klfi!~-(~
CITY~F ,..,.:a~rn::

Bv: .. (V ~
CITY OF EAU" MOON BAY
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B Y L A W S
OF THE

SAN MATEO COUNTY CITIES INSURANCE GROUP

I OFFICERS OF THE BOARD OF DIRECTORS
The Board shall elect a president, vice-president and secretary/ treasurer at its first meeting; and thereafter at the first meeting held in each succeeding calendar year, the Board shall elect or re-elect its president, vice-president and secretary/treasurer.

In the event that the president, vice-president or secretary/ treasurer so elected ceases to be a member, the resulting vacancy shall be filled at the next regular meeting of the Board held after such vacancy occurs. In the absence or inability of the president to act, the vice-president shall act as president. The president, or in his absence the vice-president, shall preside at and conduct all meetings of the Board and of the Governing Board.

II MEETINGS OF THE BOARD
A. Regular Meetings
The Board shall provide for its regular, adjourned regular, and special meetings as needed provided, however, that it shall hold at least one regular meeting in each calendar quarter. The dates upon which and the hour and place at which any regular meeting shall be held shall be fixed by resolution of the Board and a copy of such resolution shall be filed with each member agency.

The place of the regular meetings shall be such public building or other place as may be designated by the Board.
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B. Ralph M. Brown Act
The Board shall adopt rules for conducting its meetings and other business. All meetings of the Board including without limitation regular, adjourned regular, and special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (comnencing with Section 54950 of the California Government Code).

C. Minutes
The secretary of the Board shall cause minutes of all meetings to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to each member agency.

D. Quorum
A majority of the members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.

III MEMBERSHIP
Any City or Special District located within the political jurisdiction of San Mateo County is eligible to apply for membership; said membership shall be subject to the limitations contained in the Bylaws, including Section VI.

IV ACCOUNTS AND RECORDS
The Group shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of law or -2-
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any resolution of the Group. Books and records of the Group in the hands of the treasurer shall be open to inspection at all reasonable times by representatives of the parties. The Board, as soon as practical after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to each of the parties. The signature of two of the three officers shall be required to expend funds. The Group shall either make or contract with a Certified Public Accountant, or Public Accountant, to make an annual audit of the accounts and records of the Group. In each case, the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and records if made by a Certified Public Accountant, or Public Accountant, a report thereof shall be filed as public record with each of the parties hereto, and also with the County Auditor of San Mateo. Such report shall be filed within twelve (12) months of the end of the fiscal year under examination.

Any costs of the audit including contracts with or employment of Certified Public Accountants, or Public Accountants, in making an audit pursuant to this section, shall be borne by the Group and shall be a charge against any unencumbered funds of the Group available for this purpose.

Additionally, the treasurer of the Group shall assume the duties described in California Govenment Code Section 6505.5 to wit:

1. Receive and receipt for all monies of the Group and
place them 1n the separate bank account as designated
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by the Board to the credit of the Group.

2. Be responsible upon his bond for the safe-keeping and disbursement of all Group money so held by him.

3. Pay, when due, out of money of the Group so held by him all sums payable by the Group.

4. Verify and report in writing on the first day of July, October, January, and April of each year to the Board
and to the parties to this agreement the amount of money he holds for the Group, the amount of receipts since his last report, and the amount paid out since his last report.

V LOSS RECORDS
The Board shall maintain or cause to be maintained accurate loss records for all risks insured against, and all claims paid. Loss reports shall be forwarded to member agencies on, at least, a quarterly basis.

VI ADDITIONAL PARTIES
Any other public agency within the political jurisdiction of San Mateo County may become a party to this agreement upon execution of an agreement between such public agency and the Group, the terms of which agreement shall be identical to the terms of this agreement.

Any public agency desiring to join the Group shall submit a properly executed copy of the Joint Powers Agreement to the Board prior to March 1. A two-thirds vote of the Joint Powers Board shall be required for acceptance of such additional member. Such participation shall begin the following July l, unless the Board shall authorize another date.
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Such additional public agencies shall forthwith pay to the Group its current contribution as determined by the Board. Thereafter, such additional party shall be considered a party to the agreement to the same extent as all of the original parties and for all purposes.

VII AMENDMENTS
Amendments to these Bylaws may be proposed by the designated representative of any member agency. The proposed amendment shall be referred to the Board for its consideration. A copy of the proposed amendment, with the Board's recommendations and reasons therefore shall be forwarded to each member agency. The Bylaws may then be amended by written agreement signed by all the parties to the Joint Powers Agreement. If twothirds of the parties to this agreement agree to an amendment, the other parties must also agree to said amendment, or they may be involuntarily terminated as parties to this agreement by using the procedure set forth in Section VIII of the Bylaws.

VI II INVOLUNTARY TERMINATION
Upon good cause being established, two-thirds of the Board shall vote for involuntary termination of a member agency.

Such involuntary termination shall be effective at the end of that fiscal year, unless the Board specifies otherwise.

IX ENFORCEMENT
The Board is hereby given authorfty to enforce· this agreement. If suit 1s necessary therefore, a defaulting member shall pay reasonable attorney fees to the Group as adjudicated by the Court.
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X INVALIDITY
Should any portion, tenn, condition, or provision of this agreement be determined by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions shall not be affected thereby.

XI FINANCE
A. Each member agency shall pay to the Group each fiscal year the annual contribution calculated pursuant to Paragraphs Band C.

For the first six months of operation beginning January 1, 1979, the sums appearing in the schedule below will be paid on January 1, 1979. In subsequent years, partial payments shall be made in advance based on an estimated annual cost calculated by the Board. Said partial payments shall be made in the first year or partial fiscal year as follows: Fifty percent (50%) in July or the first month of operation; Twenty-five percent {25%) in December or the middle month of operation; Twenty-five percent (25%) in March or three-quarters through the partial fiscal year, as determined by the Board. Partial payments for subsequent years shall be made in July, December and March at a percentage to be determined by the Board.
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--------~-, .. ,,,., ...... •••••••••--••••••••••••••••••••"••"•••••••••••••••~•'••••••••••••••••••••••••.'••••>•••••••••••••'"•'"~v•.•.-,•.•••••••• B. The member contribution schedule for the period of January 1, 1979 to June 30, 1979 shall be approximately*:

City Amount
Atherton $ 20,250
Brisbane 22,500
Foster City 60,000
Half Moon Bay 11,250
Hillsborough 30,000
The Joint Powers Authority shall have no responsibility to pay the State Fund premiums or other liabilities incurred by the member agencies before the effective date of the insurance under this agreement.

C. The yearly premium paid to the Joint Powers Authority by the member agency for the two years following the initial one-half year shall be based upon a percentage of the manual premium according to the applicable WCIRB rate as determined by the Board of the Joint Powers Authority. Thereafter each member agency's premium may be modified by decision of the Board according to the loss experience of each member defined by the WCIRB rating plan. This loss experience mechanism shall operate to ensure that each mem~er returns over a period of time to the Joint Powers Authority the funds paid out on its behalf as paid losses.

D. The Group shall operate on a fiscal year from July 1 to June 30. *To be adjusted according to actual payroll figures.
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E. Handling Funds
The Group shall have the power, authority and duty to handle all aspects of Workers' Compensation claims against members arising out of facts occurring during membership in the Group.

F. Contributions
Without in any way limiting the powers otherwise provided for in this agreement or by statute, the Group shall have the power and authority to receive, accept, and utilize property, real or personal, from any member or its agents or representatives; to receive, hold, dispose of, to construct, operate and maintain buildings and other improvements; and to receive, accept, expend and disburse funds by contract or otherwise, for purposes consistent with the provisions of the Group, which funds may be provided by any member or their agents or representatives.

G. Additional Income
The Group shall accept and deposit monies from any of the following sources earned after the date of this agreement:

1. Interest Income
2, Refund of the Group's Excess Workers' Compensation
Insurance Premiums

3. Workers' Compensation Subrogation Recoveries

4. Payments by the State of California under State
Mandated Reimbursement for Workers• Compensation
Legislation

5. Grants from any Agency or Private Company (provided
that no conflict of interest is created)
-8-
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-
---.... -....... -.. -................ · .... •.-.... , .... , .......... .

H. Debts
Should the projected expenses for a given year exceed the given assets of the pool for that year, each member shall be assessed by the Board an additional amount based upon the percentage of yearly premiums paid by each member relative to the total yearly premiums paid by all members.

I. Disposition of Property and Funds
In the event of the dissolution, complete rescission or other final termination of this agreement by all agencies then a party hereto, any property interest remaining in the Group following a discharge of all obligations, shall be returned to the current members.

J. Operating Fund
This fund shall be established and maintained out of the member contributions, and shall be for the purpose of paying for the following:

1. Insurance Premiums

2. Claims Management Expenses

3. Salaries of Administrators, if any

4. Safety Engineering

5. Data Processing Costs

6. Investigative Costs

7. Legal Costs

8. Miscellaneous
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K. Claim Fund
This fund shall be established and maintained out of the member contributions, and shall be solely for the purpose of paying Workers' Compensation claims, except that the Board may authorize a transfer from this fund to the operating fund to cover unexpected expenses.

The Claim Fund shall be the repository of the •
11 reserves 11 to be
used for future Workers' Compensation payments, averaging up to eleven (ll) years.

L. The Group shall have authority to seek and recover subrogation monies wherever possible. Such monies shall be deposited in the Claim Fund.

XII LIABILITIY
Except as otherwise provided by individual contract, pursuant to the provisions of Section 895, et seq., of 'the Government Code of the State of California, each member of the Group shall be liable for its pro rata share of all debts and liabilities of the Group, and its pro rata share of all debts and liabilities for Workers' Compensation claims against members arising out of facts occurring while a member of the Group. To achieve such purpose, each member indemnifies and holds harmless the other members for any loss, cost or expense that may be imposed upon such member in excess of such pro rata liability. (The rules therefor, as set forth in Civil Code Section 2788 are hereby made a part of these Bylaws.)
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XIII EFFECTIVE DATE
These Bylaws shall go into effect immediately upon the effective date of the Joint Powers Agreement.

XIV INVESTING OF RESERVES (Claim Fund)
The Board shall invest or cause to be invested such reserves as are not necessary for ilffllediate operation of the Claim Fund in such securities as are prudent and legal for public agencies.

The level of cash to be retained in the Operating and Claim Funds shall be determined by the Governing Board.

XV GLOSSARY
Unless the context otherwise requires, the terms used herein shall have the following meanings:

BOARD -- shall mean the governing board of the Group.

BROKER -- shall mean the broker engaged by the Board for the purpose of acquiring an insurance policy.

W.C.I.R.B. -- shall mean Workers' Compensation Insurance Rating Bureau.

CLAIM FUND -- shall mean the fund established for the purpose of paying the cost of the deductible portion of Workers' Compensation claims.

CLAIMS ADJUSTER -- shall mean the claims adjuster engaged by the Board for the purpose of determining losses and payments with respect to the Claim Fund.

CONTRIBUTION -- shall mean money paid by a member agency to the Group in return for the handling of Workers' Compensation claims.

EXPERIENCE MODIFICATION FACTOR·- shall mean a factor used in determining individual member contributions, derived from the claim activity of the member over the previous three years.
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GROUP -- shall mean the San Mateo County Cities Insurance Group created by this agreement.

LOSS REPORTS -- shall mean a Report showing a member's Workers' Compensation claims in detail including current status.

MEMBER -- shall mean an individual member agency which belongs to the San Mateo County Cities Insurance Group.

OPERATING FUND -- shall mean the fund established by the Group for the purpose of paying insurance premiums and administrative and other costs.

RESERVES -- shall mean that part of the member's contribution held by the Group to make future Workers' Compensation payments.

SELF-INSURANCE (Permissively Uninsured) -- shall mean setting aside funds to pay for losses not covered by insurance.
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Amendment to the Cities Group By-Laws as enacted by unanimous Vote of the Board of Directors at its duly noticed meeting On June 28, 2000
VIII A. Involuntary Termination
Upon the unanimous vote of all of the Board of Directors except the Director representing the member agency being terminated, a member agency may be involuntarily terminated. Upon the effective date of termination, the terminated member shall be subject to the following:

1. The terminated member shall assume full financial and administrative responsibilities for all pending and future claims against the Group or its programs which are in any way associated with the terminated member's past membership in the Group.

2. The terminated member's equity in the Group shall be reduced by all claim payments and other expenses as of the day termination becomes effective. If following the terminated member's assumption of all claim liabilities valued as of the effective day of termination the member's remaining equity is less than zero, the terminated member shall pay to the Group an amount sufficient to bring its total equity to zero. If the member's final equity is greater than zero, it shall be returned to the member in accordance with section 4. of the Joint Powers Agreement.

VIII B. Agreed Termination
Upon unanimous vote of the full Board of Directors, a member agency may be terminated by agreement. Such termination shall be conditioned upon the terminated member's duly authorized agreement to comply with the provisions of Sections VIII A. 1. and 2. hereof. In addition, the terminated member shall agree to indemnify, release from liability and hold harmless the Cities Group, its Directors, member agencies, officers, agents and their employees from liability for acts prior to the effective date of termination.

In the case of either involuntary or agreed termination, the effective date will be July 1 of each year unless the Board specifies otherwise.
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Amendment to the Ci ties Group Bylaws enacted by V:ne,,J'J1n?&!:!§Ote of the Board of Directors at its duly noticed meeting on /l/w. <? / 2004.

1. Section III is amended, and shall henceforth provide:

Any City, Special District, or other public agency
located within the State of California is eligible
to apply for membership; said membership shall be
subject to the limitations contained in the Bylaws,
including Section VI.

2. The first paragraph of Section VI is amended, and shall henceforth provide:

Town
by:

Any other City, Special District, or public agency
within the State of California may become a party
to this agreement upon execution of an agreement
between such public agency and the Group, the terms
of which agreement shall be identical to the terms
of this agreement.
of Atherton
Wn~, Date:
0 Date:

I I ' I
Date:

Date:

I I
City of San Carlos
by, f2L Gwr, Date:
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AGREEMENT ADDING ADDITIONAL PARTY TO

CITIES GROUP JOINT POWERS AGREEMENT
THIS AGREEMENT is entered into pursuant to the Cities Groq.p By-Laws Section VI.

By execution of this Agreement the City of Dublin shall, and hereby does, become a Party to that certain Joint Powers Agreement and By-Laws dated October 5, 1978 and Amended November 20, 1978, May 1, 1989, July 1, 1993 and June 30, 1997, and agrees to, and shall on and after January 1, 2005, be bound by all of the terms and conditions thereof.

Town of Atherton
By tjtrulildtf
City of Half Moon Bay
By clllw rYjxnv
Town of Hillsborough
By4fadl ~
City of San Carlos
By /{J,ri..., 8w ,k 1
/
~
City of Dublin
e;-,~c.~
l/ 1 y.-ocl Date _____ ..... f..-----
Date __ /_1_/2_t+-/_z_£_.v----'-·cj_._·
, l
Date~/~1-+-/~R-'---,)~(l'--L-+-{ __ I I I
Date _1_,_1/ __ 1(_o ____ y_· ----
Date ___ 1 .... 0 ...... /'-','--'e=----/....c..o_Y~--
-117-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Authorizing the City Manager to Execute All Documents Necessary to Join the Workers’ Compensation Program Through Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA)
SUMMARY: Effective January 1, 2026, the Town will need a new workers’ compensation provider.

Staff conducted research on possible alternative groups to provide workers’ compensation to the Town, and recommends proceeding with joining the Workers’ Compensation program offered by Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA).

Background – Cities Group (Current Provider)
The San Mateo County Cities Insurance Group (“the Cities Group”) was formed by JPA Agreement on October 5, 1978, for the purpose of allowing its members to pool resources to fund and administer their workers’ compensation programs more efficiently. For several decades, the Cities Group has contracted with Chrisman and Associates to perform claim handling and the administrative functions of the JPA. The JPA has no employees, and therefore relies on Paul Chrisman, the principal of Chrisman and Associates, to serve as the Chief Executive Officer of the JPA.

The Cities Group had been comprised of six members: San Carlos, Dublin, Half Moon Bay, Atherton, Hillsborough, and Foster City. However, on November 14, 2024, Foster City submitted a Withdrawal Notice, which becomes effective July 1, 2025. Since that time, the Cities Group Board of Directors has held several meetings to discuss whether the departure of Foster City from the group will ultimately make the JPA financially unsustainable. The consensus of the Board is that the group will not be sustainable long into the future. On June 10, 2025, the Board adopted a resolution that directs Chrisman and Associates and the Cities Group’s legal counsel, Kai Ruess, to draft and present a dissolution plan consistent with the requirements of the JPA. Although the Cities Group cannot formally dissolve until all obligations of the group are entirely resolved, the Board indicated in its resolution that it would like the dissolution plan to include a provision that requires each remaining member of the group to become responsible for all of their respective existing and future claims as of January 1, 2026.

Under Section 5 of the JPA, dissolution of the group requires consent of all existing members. Thus, the dissolution plan, once drafted, will be presented to the Cities Group Board for recommendation to each member’s respective Councils. Each of the City Councils must approve the plan for it to become effective.

Dissolution Impacts
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Agenda Staff Report - Hillsborough City Council
October 13, 2025

In FY 2024-25, the Town paid $316,058.12 for workers’ compensation insurance and safety programs to the Cities Group. An analysis completed by an outside CPA Firm reviewed the group’s banking and investment transactions to arrive at a balance sheet, effective March 31, 2025. The results show the cost for each agency to withdraw from the group, which would be a one-time cost of $646,748.13, assuming the Town would take its claims with them to a new workers’ compensation provider.

Alternatives Considered
Staff evaluated several alternatives as it relates to providing workers’ compensation, including (1) being self-insured, (2) purchasing a stand-alone workers’ compensation insurance plan, and (3) participating in an alternate joint powers authority (JPA) membership.

Both a self-insured workers’ compensation and purchase of a stand-alone workers’ compensation insurance plan would be cost prohibitive. Membership in a new joint powers authority allows the Town to participate in a pool, sharing the risk and accessing sufficient workers’ compensation insurance coverage at a competitive rate while sharing in the decision-making processes as a board member.

The Town considered various factors when identifying potential solutions, including (1) program offerings, (2) board representation, (3) public safety experience, (4) strong financials, (5) first dollar coverage, if available, and (6) overall cost. The table below shows a high-level summary of the various options researched and considered.
(1) Program Offerings – All programs provide robust resources and could accommodate the Town’s needs as it relates to claims administration and services. It is worth noting that all options (aside from Bay Cities) utilize LWP Claims Solutions to administer their workers’ compensation program. They are a known leader in this area with a substantial client list. Additionally, Foster City, who chose to self-insure, issued a Request for Proposals to identify a third-party claims administrator, and awarded it to LWP Claims Solutions.
(2) Board Representation – All programs allow for board representation from each member agency.
(3) Public Safety Experience – All programs have public safety experience, with the exception of Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA), which is a newly created program set to begin January 2026. It is our understanding that among the potential members, there are several agencies that have public safety programs which have indicated interest in joining the program.
(4) Strong Financials – All programs provided financial documents and demonstrated good accounting practices.
(5) First Dollar Coverage – Nearly all programs utilize a self-insured retention (SIR) of sorts, functioning much like a deductible in insurance claims. The SIR amount is per claim. The SIR selected impacts the annual premium charged. While NCCSIF does not have a SIR, the annual premium includes a banking layer, which functions similarly. -120-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

(6) Overall Cost – The cost to provide workers’ compensation to the Town will ultimately increase by a substantial factor, mainly due to the Cities Group organization being underfunded, and market availability. The Town was mindful of costs and prioritized stability to be able to budget effectively around known costs, rather than pursue any option that may be susceptible to volatility, year to year. Based on claim history, the recommendation was for the Town to select a self-insured retention amount of $100,000 to keep premium costs manageable. With PLAN JPA, the premium for this level is $320,688.

The summary table below contains key indicators for each alternative considered, including the existing program through Cities Group. PLAN JPA is in line with the current cost of the existing program but offers greater stability moving forward.

JPA Members (#) Coverage
Structure Premium Other Comments
Bay Cities 211

Self-Insured
Retention (SIR)
SIR $150,000: $544,642
SIR $250,000: $365,999
SIR $350,000: $292,826
SIR $500,000: $224,986
SIR $750,000: $180,297
California
Intergovernmental
Risk Authority
(CIRA)
50 Self-Insured
Retention (SIR)
SIR $5,000: $752,291
SIR $10,000: $720,868
SIR $25,000: $647,886
SIR $50,000: $552,946
SIR $100,000: $473,164
Cities Group
(Existing Program) 52 First Dollar Coverage $316,058.123 Northern California
Cities Self
Insurance Fund
(NCCSIF)
22 First Dollar
Coverage with
Banking Layer4
$657,3975
PLAN JPA 28 Self-Insured
Retention (SIR)
SIR $0: $554,379
SIR $10,000: $503,451
SIR $25,000: $460,108
SIR $50,000: $401,234
SIR $100,000: $320,688*
SIR $150,000: $266,065
New Program
Offering by
PLAN JPA for CY
2026
1 Includes 15 cities, 4 towns, one police authority, and one fire authority. 2 Does not include Foster City.
3 FY 2024-25 spend, not inclusive of any negative equity or withdrawal payments. 4 Banking Layer funding of $256,970 for own claims, up to $100,000. 5 Includes Banking Layer funding of $256,970 for claims, up to $100,000. If the Town has fewer claims, money will be returned. *Recommended SIR level for the Town.

FISCAL IMPACT: In FY 2024-25, the Town paid $316,058.12 for workers’ compensation insurance and safety programs to the Cities Group. The cost to join PLAN JPA at a Self-Insured Retention amount of $100,000 for FY 2025-26 will be $320,688, utilizing the budgeted funds designated for the workers’ compensation program.

ENVIRONMENTAL ISSUES: The proposed action 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 in the environment.
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Agenda Staff Report - Hillsborough City Council
October 13, 2025

ATTACHMENTS: Resolution
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Adopt the resolution authorizing the City Manager to execute all documents necessary to join the Workers’ Compensation Program through Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA).
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS
NECESSARY TO JOIN THE WORKERS’ COMPENSATION PROGRAM THROUGH

POOLED LIABILITY ASSURANCE NETWORK JOINT POWERS AUTHORITY (PLAN JPA)
WHEREAS, Section 6502 of Title 1, Division 7, Chapter 5 of the California Government Code (the “Joint Exercise of Powers Act”) provides that, if authorized by their legislative or other governing bodies, two or more public agencies by agreement may jointly exercise any power common to the contracting parties; and
WHEREAS, Section 6509.7 of the Joint Exercise of Powers Act provides that, if authorized by their legislative or other governing bodies, two or more public agencies by agreement may jointly exercise their common authority to invest funds in their treasuries as authorized by subdivision(p) of Section 53601 of Title 5, Division 2, Part 1, Chapter 4, Article 2 of the California Government Code; and
WHEREAS, under Section 6500 of the Joint Exercise of Powers Act, a “public agency” includes but is not limited to the federal government or any federal department or agency, the State of California, another State or any State department or agency, a county, county board of education, county superintendent of schools, city, public corporation, public district, or regional transportation commission of the State of California or another State, or any joint powers authority formed pursuant to the Joint Exercise of Powers Act; and
WHEREAS, public agencies which constitute local agencies, as that term is defined in Section 53630 of the California Government Code, are authorized pursuant to Section 53601 and 53635 thereof to invest all money belonging to, or in the custody of the local agency in certain specified investments; and
WHEREAS, the Town of Hillsborough is a city as that term is defined in the Joint Exercise of Powers Act and a local agency as that term is defined in Section 53630 of the California Government Code; and
WHEREAS, the City Council understands Town employees, on behalf and in the best interest of the City, must participate in the governance of the workers’ compensation program of Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) through its boards and committees.

NOW, THEREFORE, BE IT RESOLVED by City Council of the Town of Hillsborough as follows:
1) The City Manager is hereby authorized and directed in the name of and on behalf of -123-
2 the Town of Hillsborough to take all actions and to make and execute all certificates, requisitions, agreements, notices, consents, warrants, and other documents, which they might deem necessary or appropriate in order to accomplish the purpose of this Resolution to join the workers’ compensation program through PLAN JPA.
2) The City Manager is hereby authorized and directed to appoint Town employees to PLAN JPA’s boards and committees as deemed necessary or appropriate. 3) The Finance Director is hereby authorized to take all actions and to make and execute any and all instruments deemed necessary or appropriate in order to carry out the purposes of this resolution to join the workers’ compensation program of PLAN JPA.

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 13th day of October 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
9 CONSENT CALENDAR

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Consider Opting Into Two Class Action Settlement Agreements with Distributors of Opioids: (1) Purdue/Sackler and (2) Eight Secondary Drug Manufacturers Including Alvogen, Inc., Amneal Pharmaceuticals LLC, Apotex Corp., Hikma Pharmaceuticals USA Inc., Indivior Inc., Viatris Inc. (Mylan), Sun Pharmaceuticals Industries, Inc., and Zydus Pharmaceuticals, and Authorize the City Manager to Execute Documents to Effectuate the Settlements
SUMMARY: States across the country have brought litigation against various drug manufacturers of opioid painkillers. There are two current class action settlements that have resulted from the litigation. The first is with Purdue/Sackler which could result in settlements totaling approximately $7.4 billion nationwide. The second is with eight secondary drug manufacturers including Alvogen, Amneal, Apotex, Hikma, Indivior, Viatris (Mylan), SunPharma, and Zydus totaling approximately $720 million nationwide.

On December 13, 2021, the Town previously opted into two prior opioid class action settlements with (1) Amerisource Bergen, Cardinal Health, and McKesson and (2) Janssen (owned by Johnson & Johnson). Under the prior class action settlements, funds awarded to the Town were provided to the State and County of San Mateo for opioid remediation for the benefit of the Town.

The Town can once again opt into the current class action settlements with Purdue/Sackler and the eight secondary drug manufacturers, thereby releasing any claims the Town would have against these entities. The actual amounts to be provided are unclear at this time and are subject to the number of cities in the State that opt to sign on to these settlements. Similar to the prior class action settlements entered into in 2021, funds received would flow to the State and County of San Mateo for overall opioid remediation.

ANALYSIS:

Purdue/Sackler Settlement
On June 16, 2025, it was announced that that 55 attorney generals, representing all eligible states and U.S. territories, agreed to sign on to a $7.4 billion settlement with Purdue Pharma L.P. and its owners, the Sackler family. With the state sign-on period concluded, local governments across the country will be asked to join the settlement contingent on bankruptcy court proceedings.

Most of the settlement funds will be distributed in the first three years. The Sacklers will pay $1.5 billion, and Purdue will pay roughly $900 million in the first payment, followed by the Sacklers paying $500 million after one year, an additional $500 million after two years, and $400 million -125-
Agenda Staff Report - Hillsborough City Council
October 13, 2025

after three years. The settlement also reflects the end of the Sacklers’ control of Purdue and bars them from selling opioids in the United States.

Eight Secondary Drug Manufacturers Settlement
On July 10, 2025, attorney generals across the country secured $720 million nationwide in settlements with the eight drug manufacturers. Under this settlement, all eight defendants have agreed to proceed with a sign-on period for local governments. California could receive more than $70 million in total.

As part of the settlements, the eight defendants will pay funds to states to address the opioid crisis as outlined below:
• Mylan: $284,447,916 paid over nine years
• Hikma: $95,818,293 paid over one to four years
• Amneal: $71,751,010 paid over 10 years
• Apotex: $63,682,369 paid in a single year
• Indivior: $38,022,450 paid over four years
• Sun: $30,992,087 paid over one to four years
• Alvogen: $18,680,162 paid in a single year
• Zydus: $14,859,220 paid in a single year
In addition to these payments, several of the settlements allow states to receive free pharmaceutical products or cash in lieu of this product. Additionally, seven of the companies (not including Indivior) are prohibited from promoting or marketing opioids and opioid products, making or selling any product that contains more than 40 milligrams of oxycodone per pill, and are required to place a monitoring and reporting system for suspicious orders. Indivior has agreed to not manufacture or sell opioid products for the next 10 years, but it will be able to continue marketing and selling medications to treat opioid use disorder.

Allocation of Funding
Under both settlements, the allocation breakdown would be as follows:
• 15% of the total settlement amount would be allocated to the State of California for future opioid remediation.
• 70% of the total settlement amount would be allocated to the California Abatement Account funds to be provided to each respective County in the State for opioid remediation. • 15% of the total settlement amount would be allocated to the California Subdivision Fund for future opioid remediation and past opioid related expenses, which may include fees and expenses related to litigation.

Opting In
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Agenda Staff Report - Hillsborough City Council
October 13, 2025

Both settlements have deadlines to opt in, that are currently being extended. The Purdue/Sackler settlement deadline is October 30, 2025 and the eight secondary drug manufacturer settlement deadline was October 8, 2025, but will be extended with a new deadline that is not yet known.

Finally, the only reason the Town should not enter into the current class action settlements is if the Town felt it had its own harm or financial damages associated with the abuse of opioids justifying a direct damages lawsuit against the various entities. The Town is not aware of any direct damages the Town has incurred due to the opioid crisis.

FISCAL IMPACT: As noted above, the Purdue/Sackler settlement will yield $7.4 billion nationwide.

The eight secondary drug manufacturer settlement will yield $70 million to the State of California.

The amount that would flow directly to San Mateo County is unclear but the allocation percentages are included with the settlement documents. Overall, opting into the settlements would have no to minimal financial impact on the Town and it would be primarily limited to staff time in guiding the City Council on opting in to the settlements.

ENVIRONMENTAL ISSUES: The City Council’s decision to opt into the settlement agreements will not have an impact on the environment pursuant to the California Environmental Quality Act (CEQA) Guidelines 15061(b)(3) and 15378(b)(4) as the City Council will merely be deciding whether it wants to participate in a national settlement that would provide fiscal funding to the State and County with no connection to any specific project.

ATTACHMENTS:

1. Participation Form and State Subdivision Agreement for Purdue/Sackler

2. Participation Forms and State Subdivision Agreements for Eight Secondary Drug Manufacturers PREPARED BY: Christopher J. Diaz, City Attorney
RECOMMENDATION: Opt into two class action settlement agreements with distributors of opioids:
(1) Purdue/Sackler and (2) eight secondary drug manufacturers, and authorize the City Manager to execute documents to effectuate the settlements.
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ATTACHMENT 1
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
10 CONSENT CALENDAR

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Adopting the Town of Hillsborough 2025 Sanitary Sewer Management Plan and Authorizing the Director of Public Works to Make As-Needed Updates to the Plan, Under CEQA Guideline 15301
SUMMARY: The Town of Hillsborough ("Town") has updated its Sanitary Sewer Management Plan (“SSMP”), per State Water Resource Control Board Order No. 2006-0003-DWQ and Order No. 2006-0003-DWQ. The body of the document is organized to discuss the eleven General Waste Discharge Requirements (GWDR) elements in the order that they are presented in State Water Resource Control Board (SWRCB) Order No. 2022-0103-DWQ. The purpose of the Town’s SSMP is to describe the Town’s efforts to effectively manage its wastewater collection system. The Town has updated its SSMP to ensure continuous improvement of its sanitary sewer system infrastructure and operations, including those related to performance, maintenance, inspection, condition assessment, monitoring, spill response, reporting and identification of repair and replacement needs. The updates reflect improvements since City Council adopted the SSMP on March 11, 2019. The document is considered a living document and is fully updated and approved by the Hillsborough City Council every six years. This item was previously presented to City Council at the August 11, 2025 City Council meeting.

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

ENVIRONMENTAL ISSUES: The action is categorically exempt from the California Environmental Quality Act according to Section 15301 of the California Code of Regulations.

ATTACHMENTS:

1. Resolution

2. 2025 Sanitary Sewer Management Plan:
https://www.hillsborough.net/DocumentCenter/View/6361/FINAL-DRAFT-2025-Town-ofHillsborough-SSMP--093025?bidId= PREPARED BY: Paul Willis, Director of Public Works
RECOMMENDATION: Adopt the resolution adopting the Town of Hillsborough Sanitary Sewer Management Plan and authorizing the Director of Public Works to make as-needed updates to the plan, under CEQA Guideline 15301.
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH ADOPTING THE TOWN OF HILLSBOROUGH 2025 SANITARY SEWER

MANAGEMENT PLAN AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO MAKE AS-NEEDED UPDATES TO THE PLAN, UNDER CEQA GUIDELINE 15301 WHEREAS, the State Water Resources Control Board (SWRCB) adopted Order No. 2022-0103‐DWQ, “Statewide Waste Discharge Requirements General Order for Sanitary Sewer Systems” (GWDR) to regulate sanitary sewer collection systems that discharge to a publicly owned sewage treatment facility); and
WHEREAS, the Town of Hillsborough, as the owner and operator of the Town’s sanitary sewer collection system, which serves a population of approximately 11,000 across 6.2 square miles and discharges from the Town’s collection system into the City of San Mateo and City of Burlingame Treatment Plants, is an enrollee under the GWDR; and WHEREAS, the GWDR requires that an enrolled sanitary sewer collection system prepare and implement a Sewer System Management Plan (SSMP) documenting the enrollee’s program to properly operate and maintain its sanitary sewer system, and that the governing body approve significant updates to the SSMP; and
WHEREAS, staff has updated the Town’s SSMP in conformance with the GWDR requirements.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby adopts the Town of Hillsborough 2025 Sanitary Sewer Management Plan and authorizes the Director of Public Works to make as-needed updates to the Plan, under CEQA Guideline 15301.

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 13th day of October 2025, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
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ATTACHMENT 1
2 ABSENT: Councilmembers
ABSTAIN: Councilmembers
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ATTACHMENT 2
Attachment 2, the 2025 Sanitary Sewer Management Plan is available online at https://www.hillsborough.net/DocumentCenter/View/6361/FINAL-DRAFT-2025-Town-ofHillsborough-SSMP--093025?bidId= -366-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Accepting the Grant of a Seventeen-Foot-Wide Water Easement and a Ten-Foot-Wide Water Easement at Crocker Middle School Under CEQA Guideline 15301
SUMMARY: Crocker Middle School is redeveloping its campus, which requires relocation of a water main installed in the 1970s. No easement currently exists, likely due to informal coordination between the Town and school or limited recordkeeping at the time. The Town's Public Works Department is required by the State to maintain the water main to preserve water quality and protect the public. To provide the Town with access rights to operate and maintain the relocated water infrastructure, Crocker Middle School has offered to grant two easements:
- a seventeen-foot-wide water easement over the new water meter, and - a ten-foot-wide water easement over the new water main.

The easements ensure that the Town has the legal rights to operate, access, and maintain the water main and meter located within the property.

The subject easement documents have been reviewed for accuracy and are ready for acceptance by the City Council. Upon acceptance, the City Engineer can complete the recordation process.

The easement areas are shown and described in Exhibits A and B to the resolution.

FISCAL IMPACT: This action will not create any new financial responsibility to the Town and may relieve the Town of future maintenance costs.

ENVIRONMENTAL ISSUES: The proposed action accepting the easements is exempt from environmental review under CEQA Guideline 15301 as the easements will be used to maintain an existing water line.

ATTACHMENTS: Resolution and Exhibits
PREPARED BY: Paul Willis, Director of Public Works
RECOMMENDATION: Adopt the resolution accepting the grant of a seventeen-foot-wide water easement and a ten-foot-wide water easement at Crocker Middle School under CEQA Guideline 15301.
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RESOLUTION NO. 25-

RESOLUTION ACCEPTING THE GRANT OF A SEVENTEEN-FOOT-WIDE WATER

EASEMENT AND A TEN-FOOT-WIDE WATER EASEMENT AT CROCKER MIDDLE SCHOOL UNDER CEQA GUIDELINE 15301
WHEREAS, the Town of Hillsborough (“Town”) owns and operates the Town’s water distribution system; and
WHEREAS, the Town has determined that two easements — a seventeen-foot-wide water easement over the new water meter location and a ten-foot-wide water easement over the new water main alignment — are required on the Crocker Middle School campus, as no easements currently exist for these facilities; and
WHEREAS, Crocker Middle School, as the property owner, desires to grant these easements to the Town, and the Town desires to accept these easements as more specifically described and depicted in Exhibits A and B of Attachment 1; and
WHEREAS, the easements will ensure that the Town has the legal rights to operate, access, and maintain the water main and meter located within the property; and
WHEREAS, upon acceptance of the grant of easements, the Town will have access to operate and maintain the water infrastructure within this property.

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

1. The City Council does hereby accept the grant of a seventeen-foot-wide water easement and ten-foot-wide water easement located at Crocker Middle School, as depicted and described in Exhibits A and B.

2. The City Clerk is hereby authorized and directed to record a certified copy of this resolution with the County Recorder of the County of San Mateo.

3. The City Manager is hereby authorized to take any and all actions necessary, and execute any and all documents required, to effectuate the purposes of this Resolution including, without limitation, recordation of this resolution or execution of a certificate of acceptance of the water easements located at Crocker Middle School under CEQA Guideline 15301.

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 13th day of October, 2025 by the following vote of the members thereof:

AYES: Councilmembers ______________________________________ NOES: Councilmembers
ABSENT: Councilmembers _____
ABSTAIN: Councilmembers ____
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EXHIBIT A

ALL THAT REAL PROPERTY SITUATED IN THE TOWN OF HILLSBOROUGH, COUNTY OF SAN

MATEO, STATE OF CALIFORNIA, AND BEING A PORTION OF THE LANDS OF HILLSBOROUGH SCHOOL DISTRICT AS DESCRIBED BY GRANT DEED RECORDED IN BOOK 3360 AT PAGE 83, OFFICIAL RECORDS OF SAN MATEO COUNTY, DESCRIBED AS FOLLOWS:

PARCEL 1
A 10-FOOT-WIDE PUBLIC WATERLINE EASEMENT LYING 5.0 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED LINE:

COMMENCING AT THE MOST SOUTHERLY CORNER OF SAID LANDS OF THE HILLSBOROUGH SCHOOL DISTRICT COMMON WITH THE EASTERLY CORNER OF LOT 5 AND THE NORTHERLY

LINE OF CHATEAU DRIVE AS SHOWN AND DELINEATED ON THAT CERTAIN MAP ENTITLED “HENDERSON FAMILY SUBDIVISION” FILED OCTOBER 30, 1995 IN BOOK 126 OF MAPS AT PAGES 5 THROUGH 7, OFFICIAL RECORDS OF SAN MATEO COUNTY; THENCE COINCIDENT

WITH THE SOUTHEASTERLY LINE OF SAID LANDS ALONG A NON-TANGENT CURVE TO THE LEFT, FROM WHICH ITS RADIUS BEARS NORTH 35°25’44” WEST 481.41 FEET, THROUGH A CENTRAL ANGLE OF 02°07’43” FOR AN ARC LENGTH OF 17.89 FEET TO THE TRUE POINT OF BEGINNING OF THE LINE HEREIN DESCRIBED; THENCE LEAVING SAID SOUTHEASTERLY LINE AND ENTERING SAID LANDS THE FOLLOWING SEVEN(7) COURSES:

1. NORTH 36°47’40” WEST 57.66 FEET;

2. NORTH 25°32’40” WEST 316.02 FEET;

3. NORTH 13°50’26” EAST 37.47 FEET;

4. NORTH 25°05’26” EAST 60.68 FEET;

5. NORTH 36°20’26” EAST 26.02 FEET;

6. NORTH 25°05’26” EAST 67.15 FEET;

7. NORTH 72°03’46” WEST 41.02 FEET TO THE WESTERLY LINE OF SAID LANDS AND THE POINT OF TERMINATION OF THE LINE HEREIN DESCRIBED.

THE SIDELINES SHALL BE LENGTHENED OR SHORTENED TO TERMINATE ON THE SOUTHEASTERLY AND WESTERLY LINES OF SAID LANDS.

CONTAINING AN AREA OF 6,060 SQUARE FEET, MORE OR LESS.

PARCEL 2
A 17-FOOT-WIDE PUBLIC WATERLINE EASEMENT, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE MOST SOUTHERLY CORNER OF SAID LANDS OF THE HILLSBOROUGH SCHOOL DISTRICT COMMON WITH THE EASTERLY CORNER OF LOT 5 AND THE NORTHERLY

LINE OF CHATEAU DRIVE AVENUE AS SHOWN AND DELINEATED ON THAT CERTAIN MAP -370-

ENTITLED “HENDERSON FAMILY SUBDIVISION” FILED OCTOBER 30, 1995 IN BOOK 126 OF MAPS AT PAGES 5 THROUGH 7, OFFICIAL RECORDS OF SAN MATEO COUNTY; THENCE

COINCIDENT WITH THE SOUTHEASTERLY LINE OF SAID LANDS ALONG A NON-TANGENT CURVE TO THE LEFT, FROM WHICH ITS RADIUS BEARS NORTH 35°25’44” WEST 481.41 FEET, THROUGH A CENTRAL ANGLE OF 15°52’54” FOR AN ARC LENGTH OF 133.44 TO THE TRUE POINT OF BEGINNING OF THE EASEMENT HEREIN DESCRIBED; THENCE LEAVING SAID SOUTHEASTERLY LINE AND ENTERING SAID LANDS NORTH 23°56’08” WEST 28.87 FEET; THENCE NORTH 66°03’52” EAST 17.00 FEET; THENCE SOUTH 23°56’08” EAST 19.63 FEET TO SAID SOUTHEASTERLY LINE; THENCE COINCIDENT WITH SAID LINE, ALONG A NON-TANGENT CURVE TO THE RIGHT, FROM WHICH ITS RADIUS BEARS NORTH 53°36’49” WEST 481.41 FEET, FOR AN ARC LENGTH OF 19.35 FEET TO THE POINT OF BEGINNING.

CONTAINING AN AREA OF 414 FEET, MORE OR LESS.

APN: 028-180-030 (PORTION) DATE: JUNE 11, 2025
PREPARED BY: BRELJE & RACE, CONSULTING ENGINEERS JOB NO.: 4987.03 -371-

EXHIBIT B

PUBLIC WATERLINE

EASEMENT
Brelje&Race CONSULTING ENGINEERS
475 Aviation Blvd. Suite 120 Santa Rosa, CA 95403 707-576-1322 www.brce.com -372-

EXHIBIT B

PUBLIC WATERLINE

EASEMENT
Brelje&Race CONSULTING ENGINEERS
475 Aviation Blvd. Suite 120 Santa Rosa, CA 95403 707-576-1322 www.brce.com -373-

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

CITY COUNCIL MEETING
OCTOBER 13, 2025

AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Accepting Ten (10) Grants of a Storm Drain Easement Over Ten Properties on Shady Lane, a Private Road, Under CEQA Guidelines 15301 and 15302 SUMMARY: On September 8, 2025, City Council awarded a construction contract for the Shady Lane Storm Drain Replacement Project, which 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 were located in backyards and under private improvements, making maintenance access challenging.

The new storm drain alignment crosses over multiple properties along Shady Lane: 10 Shady Lane, 20 Shady Lane, 30 Shady Lane, 35 Shady Lane, 40 Shady Lane, 50 Shady Lane, 1395 Avondale Road, 1423 Avondale Road, 1425 Avondale Road, and 40 W. Avondale Road. The owners of each of these parcels have signed a grant of easement to the Town of Hillsborough for an easement within their respective properties. The total easement width is approximately 10 feet wide, with minor variations along the alignment. The easement dedication ensures that the Town has the legal rights to operate, access, and maintain the storm drain facilities located within the private roadway.

The subject easement documents have been reviewed for accuracy and are ready for acceptance by City Council. Upon acceptance, the City Engineer will complete the recordation process.

Separate resolutions for each of the properties are attached hereto. The areas proposed for dedication for each of the subject properties are described and depicted in separate Exhibits A and B for each property, as attachments to the resolution.

FISCAL IMPACT: This action will not create any new financial responsibility to the Town and may relieve the Town of future maintenance costs.

ENVIRONMENTAL ISSUES: The underlying Shady Lane Project was found to be exempt under CEQA Guideline 15301 as the project involves the maintenance of an existing storm drain line.

This agenda item for the City Council to accept the easements is also exempt from environmental review under CEQA Guideline 15301 as it relates to the maintenance and minor alteration of an existing storm drain line. It is also exempt, on a separate and independent basis, under CEQA Guideline 15302 as the replacement or reconstruction of an existing storm drain in a new easement area.

ATTACHMENTS: Resolution and Exhibits
PREPARED BY: Paul Willis, Director of Public Works
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Agenda Staff Report - Hillsborough City Council
October 13, 2025