The FY 2025-26 mid-year projection indicates a draw on reserves, driven by one-time impacts primarily to repair capital infrastructure caused winter storm damage and other causes, as well as dissolution cost of the Cities Group JPA for workers compensation liability coverage, and the next phase of long-term projects for Tobin Clark development and Town Hall complex.
General Fund
The General Fund is the primary fund, accounting for the direct services that the Town provides to its citizens. The General Fund budget includes funding for key services, such as public safety and recreation through the Hillsborough City School District (HRec), building and planning services, general government, and contributions to the Burlingame and San Mateo libraries for Hillsborough residents to use.
The FY 2026-27 General Fund expenditures, net of transfers, are $40.2 million, an increase of $2.5 million (7%) over the FY 2025-26 projection. The increase is primarily due to salary and CalPERS cost increases, the annual contribution to the Central County Fire Department JPA, and project funding. FY 2026-27 General Fund revenues are projected to be $42.8 million, a $3.6 million (9%) increase, primarily from property taxes and an increase in permitting and services charges for a fuller cost recovery.
The FY 2026-27 General Fund proposed budget reflects a net draw of $0.4 million on General Fund reserves.
General Fund Reserve
The FY 2026-27 Proposed Budget reflects a $26.5 million General Fund reserve, with approximately 75% maintained for contingencies by policy and the remainder held in restricted reserves for pension-related costs (held in an I.R.S Section 115 pension trust).
Water and Sewer Enterprise Funds
User rates and reserves primarily fund the Water and Sewer Enterprise Funds.
Water Fund
The FY 2026-27 Water Fund revenue is projected at $19.7 million, a $0.9 million (4.7%) increase over FY 2025-26 projection. This increase is primarily attributable to a projected rate increase effective July 1, 2026.
The Water Fund expenses are $19.9 million, representing a $1.0 million (5.3%) increase from the FY 2025-26 projection, primarily driven by increased purchased water and operating costs to account for cost-of-living adjustments in salaries and benefits. The budget reflects water usage at a similar level as FY 2025-26 and a San Francisco Public Utilities Commission (SFPUC) wholesale water rate increase of 7.4% for FY 2026-27 ($6.23 v. $5.80 per ccf.). The proposed Water Fund budget shows a draw on reserves of $0.2 million. The drawing is consistent with the rate study, and reserves are replenished over the five-year rate period.
Sewer Fund
The FY 2026-27 Sewer Fund revenue, excluding transfers and grants, is projected at $18.1 million, a $1.5 million (7.6%) decrease over the FY 2025-26 projection, due to a FY 2025-26 projected -211-
Agenda Staff Report – Hillsborough City Council
June 8, 2026
reimbursement from FEMA for the Macadamia Access project, somewhat offset by a proposed 3% rate increase effective July 1, 2026.A $1.3 million transfer in from the General Fund funds storm drain capital improvements.
The FY 2026-27 Sewer Fund expense is $20.1 million, a $3.5 million (14.8%) decrease over the FY 2025-26 projection, primarily due to higher capital spending in FY 2025-26 on the Macadamia Access project. The proposed Sewer Fund budget reflects a net deficit revenue of $0.7 million and draws on reserves and is consistent with the rate study.
FY 2026-27 Capital Plan
The FY 2026-27 Proposed Budget allocates $11.6 million for capital improvement projects (CIP) and asset replacements, enhancing infrastructure and maintaining the Town’s assets. • Storm Drains - Storm drain replacements will improve system dependability in wet weather conditions.
• Water Main Replacement - Aging water pipes will be replaced to enhance longevity, improve water quality, and increase water pressure to meet fire flow requirements and ensure earthquake resistance.
• Highline Water Project – This system will provide a reliable, cost-effective water line tied to the Harry Tracy plant a at a higher elevation. It will protect health and safety during a natural disaster and provide operations cost savings by eliminating the need to pump water uphill with the current system. The FY 2026-27 goal for this project is to secure grant funding and complete the design phase of the project.
• Sewer Priority Basins - Sewer system improvements will reduce overflows and improve the longevity of the pipes. Priority Basin replacement is also essential for the sewer system to mitigate sewer system
• Facilities - The budget funds upgrades to the fire stations. • Vehicles/Equipment—Vehicles and equipment are replaced when they have exceeded their useful.
Process
The budget process starts with the Town’s goal-setting public meeting each year. These goals and business plans set the priorities for the coming year and are incorporated into the budget proposal.
Staff develop the line-item budgets for each department and fund, and the management team creates the proposed spending plan, which is then reviewed and approved in several public meetings before the public hearing and adoption.
The Proposed FY 2026-27 Operating and Capital Budget were presented to the Financial Advisory Committee (FAC) for review and discussion at its regular meeting on April 28, 2026, meeting. The FAC recommended the Proposed Budget.
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Agenda Staff Report – Hillsborough City Council
June 8, 2026
The City Council reviewed the Proposed FY 2026-27 Operating and Capital Budget in detail at the public meeting for the Budget Study Session on May 11, 2025. All feedback has been incorporated into the budget document.
FISCAL IMPACT: The Proposed FY 2026-27 Operating and Capital Budget provide for total spending of $82,277,566 million in all funds and is supported by general fund revenues, primarily property taxes, special safety tax, and other fees and charges, user rates for water and sewer, and reserves
ENVIRONMENTAL ISSUES: The consideration of this item is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guideline 15378(b) as a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact, or as an administrative activity that will not result in direct or indirect physical changes in the environment. Any items or projects funded through the budget are not a commitment to any project, but instead, any such projects will undergo their own analysis and potential approval in the future.
ATTACHMENT(S):
1. Resolution
2. FY 2026-27 Proposed Budget document on Town website:
https://www.hillsborough.net/ArchiveCenter/ViewFile/Item/2858 PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION:
1. Open the public hearing and receive comments;
2. Close the public hearing; and
3. Adopt the resolution approving the Proposed Fiscal Year 2026-27 Operating and Capital Budget.
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RESOLUTION NO. 26-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH ADOPTING THE PROPOSED 2026-27 OPERATING AND CAPITAL BUDGET WHEREAS, the Town of Hillsborough (“Town”) is responsible for providing the community with municipal services including, but not limited to, police and fire protection, water delivery, wastewater collection, street maintenance, and building and planning inspection services, and has prepared the operating budget plan for fiscal year (FY) 2026-27 and preliminary budgets for FY 2027-28 and FY 2028-29; and
WHEREAS, the Town’s budget was prepared in accordance with the Town’s established goals, policies and procedures; and
WHEREAS, the capital improvement plan for fiscal year 2026-27 is consistent with the Town’s General Plan; and
WHEREAS, the Financial Advisory Committee has been presented in open and noticed public meetings all details of the FY 2026-27 operating budget and the capital improvement plan for FY 2026-27; and
WHEREAS, the City Council and the general public have been presented in open and noticed public meetings all the details of the FY 2026-27 operating budget and capital improvement plan; and
WHEREAS, the City Council has now completed its review of the operating and capital improvement plan for FY 2026-27.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby adopts the FY 2026-27 Operating and Capital budget and finds that as of July 1, 2026, the amount of $82,277,566 is fixed as the amount necessary to meet all municipal operating and capital requirements.
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of June 2026, by the following vote of the members thereof:
AYES: Councilmembers
NOES: Councilmembers
ATTACHMENT 1
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ABSENT: Councilmembers
ABSTAIN: Councilmembers
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
19 PUBLIC HEARING
CITY COUNCIL MEETING
JUNE 8, 2026
AGENDA STAFF REPORT
ITEM SUBJECT: Resolution Approving the Category III Grading Permit Application for the Construction of Private Improvements at 101 Robin Road Under CEQA Guideline 15303 SUMMARY: Pursuant to Hillsborough Municipal Code (HMC) Chapter 15.24, the proposed construction of private improvements at 101 Robin Road requires approval of a Category 3 Grading Permit Application. In compliance with the HMC Section 15.24.070, a public hearing by the City Council is required for Category 3 grading permits. A Category 3 permit is defined as export or import of material to a site in excess of 1,500 cubic yards.
The applicant currently holds an active grading permit for construction of the ADU and recently submitted revised plans. The proposed project includes a new addition to the existing residence, along with a new ADU, sports court and gymnasium on the 131,141 square foot lot. The proposal also includes new driveway, landscape improvements, spa and patios. The export quantity for the revised scope exceeds 1,500 cubic yards, triggering a Category 3 grading permit and requiring City Council approval.
The earthwork quantities associated with the submitted grading plan involve a total of 2,225 cubic yards of cut and 100 cubic yards of fill with approximately 2,125 cubic yards of earth material proposed to be hauled off-site. This will result in approximately 213 round trips (assuming a tenyard dump truck) to complete the off-haul from the site. The majority of the grading is associated with the new gymnasium and sports court. The designated dirt haul route for transportation of any earthwork material shall be right (west) on Robin Road, right (north) on Ralston Avenue to El Camino Real.
Pursuant to HMC Section 15.24.070(D), in considering the Category 3 Grading Permit, the City Council shall consider the City Engineer's report, and (1) compliance with applicable laws, regulations and policies; (2) compatibility with the site and the neighborhood; (3) the effect upon the neighborhood; and (4) the impact on the public health, safety and welfare.
The Project is compliant with all applicable laws, regulations, and policies, because it complies with the Town’s grading and drainage requirements, which are derived from the Hillsborough Municipal Code and National Pollutant Discharge Elimination System (NPDES) permit. The Project is compatible with the site and the neighborhood as the majority of the grading on this slightly sloped lot is located well within the property, away from property lines. The Project will have minimal effect upon the neighborhood because the drainage was designed to treat and reduce the rate of runoff of the site, there is a dedicated haul route for dirt haul, and due to the size of project area relative to the large lot size. The Project shall comply with the Town’s construction requirements and the Project will have no impact on the public health, safety and welfare. -216-
Agenda Staff Report – Hillsborough City Council
June 8, 2026
During the public review period, no public comment letters were received.
FISCAL IMPACT: There is no fiscal impact associated with this agenda item.
ENVIRONMENTAL ISSUES: The City Council hereby determines that the project is categorically exempt pursuant California Environmental Quality Act (“CEQA”) Guidelines section 15303.
Furthermore, none of the exceptions in CEQA Guidelines Section 15300.2 apply to the Project.
The City Council further directs Staff to file a Notice of Exemption pursuant to this Finding.
A Notice of Exemption would be filed upon approval of the grading permit.
ATTACHMENT(S):
1. Resolution
2. Conditions of Approval and Construction Plans
3. CEQA Notice of Exemption
4. Public Hearing Notice
PREPARED BY: Doug Belcik, Associate Civil Engineer
RECOMMENDATION:
1. Open the public hearing;
2. Receive public comments;
3. Close the public hearing; and
4. Adopt the resolution approving the grading permit application for the construction of private improvements at 101 Robin Road under CEQA Guideline 15303. -217-
RESOLUTION NO. 26-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH
APPROVING THE CATEGORY III GRADING PERMIT APPLICATION FOR THE CONSTRUCTION OF PRIVATE IMPROVEMENTS AT 101 ROBIN ROAD UNDER CEQA GUIDELINE 15303
WHEREAS, the City Council of the Town of Hillsborough (“Town”) reviewed the grading permit application for the construction of private improvements at 101 Robin Road; and
WHEREAS, the grading and drainage plans were reviewed and deemed to be acceptable by the Engineering Department; and
WHEREAS, more than an excess of 1,500 cubic yards of earthwork will be off-hauled from the site with a significant transfer of 2,125 cubic yards; and WHEREAS, pursuant to Hillsborough Municipal Code (HMC) Section 15.24.040.(B), the applicant is required to comply with applicable requirements of the California Environmental Quality Act (CEQA); and
WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code, § 21000 et seq.) and the State CEQA Guidelines (California Code of Regulations, title 14, § 15000 et seq.) (collectively, CEQA), the Town is the lead agency for the proposed project; and
WHEREAS, the project has been deemed categorically exempt from CEQA based on class 3 categorical exemption 15303 (a).
WHEREAS, the City Council’s consideration of this item has been noticed as a public hearing pursuant to the requirements of HMC 15.24.070(B).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby makes the following declarations related to the 101 Robin Road project:
1. The City Council has reviewed comments received during the public review process, before making its decision on the Project.
2. The Project complies with all other applicable standards and requirements of law.
BE IT FURTHER RESOLVED that the City Council of the Town of Hillsborough hereby:
1. Finds that the recitals set forth above are true and correct and are incorporated herein as substantive findings of this Resolution.
2. Approves the grading permit application based on the following findings and authorizes staff to issue the grading permit consistent with the timeframes noted in HMC 15.24.030(C) upon completion of the plans.
ATTACHMENT 1
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Resolution No. 26-
June 8, 2026
2 a. The City Council has considered the City Engineer’s report and agrees with the recommendation to approve the grading permit application pursuant to the following findings:
i. The City Council finds the Project is consistent with all applicable laws, regulations, and policies because it complies with the Town’s grading and drainage requirements, which are derived from the Hillsborough Municipal Code and National Pollutant Discharge Elimination System (NPDES) permit. The project also complies with any other applicable laws of the Town.
ii. The City Council finds the Project is compatible with the site and the neighborhood as the majority of the grading is located well within the property, away from property lines.
iii. The City Council finds the project will have minimal effect upon the neighborhood because the drainage is designed to reduce the rate of runoff of the site and there is a dedicated haul route for dirt haul. iv. The City Council finds the Project will have no impact on the public health, safety and welfare because the Project shall will comply with the Town’s construction requirements pursuant to Title 15 of the Hillsborough Municipal Code thereby ensuring the public health, safety and welfare is protected.
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 8th day of June 2026, by the following vote of the members thereof:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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ATTACHMENT 2
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ATTACHMENT 3
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Public Works Department
Ph. 650-375-7444 | Fx. 650-375-7415 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net/planning
TOWN OF HILLSBOROUGH
California
May 21, 2026
«OWNER_NAME»
«MAILING_ADDRESS1»
«MAILING_CITY» «MAILING_STATE»«MAILING_ZIP»
CITY COUNCIL NOTICE OF PUBLIC HEARING
ITEM SUBJECT: RESOLUTION APPROVING THE CATEGORY III GRADING PERMIT APPLICATION FOR THE CONSTRUCTION OF PRIVATE IMPROVEMENTS AT 101 ROBIN ROAD UNDER CEQA GUIDELINE 15303.
SUMMARY: The proposed project includes revisions to an existing grading permit for private improvements at 101 Robin Road. The earthwork quantities associated with the revised grading plan involve approximately 2,225 cubic yards of cut and 100 cubic yards of fill, with approximately 2,125 cubic yards of earth material proposed to be hauled off-site. Due to the amount of off-haul proposed in excess of 1,500 cubic yards, per Hillsborough Municipal Code (HMC) Section 15.24.030, a Category III grading permit is required for the proposed project, which requires an assessment of the project per the California Environmental Quality Act (CEQA) and City Council approval of the grading permit itself. The project has been deemed categorically exempt from CEQA and a Notice of Exemption would be filed upon grading permit approval.
HAUL ROUTE: The designated dirt haul route for transportation of any earthwork material shall be right (west) on Robin Road, right (north) on Ralston Avenue to El Camino Real.
The item will be considered by the City Council at its meeting on:
Monday, June 8th 2026, at 6:00 PM
To attend the meeting in person: 1600 Floribunda Avenue, Hillsborough, CA 94010 To provide Public Comment in person, complete a yellow speaker card and submit it to the City Clerk.
As a courtesy and technology permitting, the meeting will also be held virtually via Zoom Video Conference. To participate in the meeting via Zoom:
ONLINE: Visit: The Zoom link, phone number, meeting ID and passcode will be included in the agenda materials at the link below.
To provide Public Comment via Zoom: Request to speak using the “raise hand” feature in Zoom or, if calling in by phone, by pressing *9 on the phone keypad prior to the close of the public comment period.
In response, the Town will unmute the speaker and allow them to speak up to three minutes.
AGENDA MATERIALS: The City Council meeting agenda and staff report for this item will be posted on the Town’s website at https://www.hillsborough.net/agendacenter no later than Friday, June 5 th
, 2026.
ATTACHMENT 4
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Public Works Department
Ph. 650-375-7444 | Fx. 650-375-7415 | 1600 Floribunda Avenue, Hillsborough, CA 94010 | www.hillsborough.net/planning PUBLIC COMMENTS: Members of the public may provide written comments via email to the City Clerk at [email protected] or by mail/in person at 1600 Floribunda, Hillsborough, 94010. To ensure your comment is delivered to the City Council, please submit no later than 4:00 p.m. on Monday, June 8
th, 2026. To be included in the staff report published prior to the meeting, written comments must be received by 5 p.m. on Wednesday, June 3
rd, 2026.
QUESTIONS: Please direct questions to Associate Civil Engineer Doug Belcik at [email protected]
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
20 OLD BUSINESS
CITY COUNCIL MEETING
JUNE 8, 2026
AGENDA STAFF REPORT
ITEM SUBJECT: Tobin Clark Housing Site Update and Authorization for Implementation of Phase II of the Project
SUMMARY: On October 13, 2025, the City Council authorized the City Manager to execute an agreement with Harmonie Park Development for professional project management services for development of the Tobin Clark housing site. As part of that approval, Phase I began with a commitment to return to the City Council for an update prior to proceeding to Phase II. Since October, Harmonie Park has completed the work associated with Phase I, including site evaluation and financial feasibility. A full summary of the work completed as part of Phase I is included as Attachment 1.
Site Analysis
Harmonie Park worked with staff from Public Works, Building & Planning, and the City Manager’s Office to gather information about the site and conduct due diligence regarding the development of 100 multifamily housing units, as delineated in the Town’s certified Housing Element.
Preliminary Master Planning and Financial Modeling
After completing the due diligence and site analysis, the team analyzed various options for multifamily housing, as laid out in the housing element. Due to site constraints and in consideration of market demands and site adjacencies, the current iteration of the plan includes a mix of housing types as shown in Option C in the table below.
Development Housing Element Option A Option B Option C
Affordable Units 44 very low-income
6 moderate income
44 very low-income
6 moderate income
44 very low-income
6 moderate income
44 very low-income
6 moderate income
Housing Type Not specified Podium
4-stories and one
half-story over two
levels of parking*
Podium
4-stories and one
half-story over two
levels of parking*
Podium
4-stories and one
half-story over two
levels of parking*
Market Rate Units 50 market-rate 50 for sale condos 50 rental units 34 for-sale units Housing Type Not specified Podium
5-stories over two
levels of parking
Podium
5-stories over two
levels of parking
24 3-story townhomes
10 single-family
homes (1/2 acre in
size) + 7 ADUs
Total Units 100 100 100 92
Financially Feasible
(Yes/No)
Not specified No No Yes
Community
Benefits
Not specified No No Yes – to be studied
further in Phase 2.
Plan retains 12 acres
of open space.
*Contains 50 affordable units with one manager’s unit; unit mix emphasizes family housing, with a significant proportion of two- and three-bedroom units.
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Agenda Staff Report – Hillsborough City Council
June 8, 2026
Infrastructure Requirements
One of the major constraints of this site is its utilities and infrastructure needs, including site access. Phase one included looking at various alternatives to accessing utilities at various points throughout the site, what, if any, coordination is required with adjacent parcels. The existing plan and financial viability consider these limitations. The team will continue to refine these points as part of phase two.
Next Steps
In adherence with the agreement, per Council direction, “Consultant’s initial work shall be limited to Phase I as detailed in the Scope of Services. The Consultant shall only be authorized to proceed and be compensated for Phase II after the City Council in a public meeting, by a majority vote, authorizes the implementation of Phase II. If the City Council does not authorize the implementation of Phase II, Consultant shall not be authorized to conduct any Phase II work and will not be compensated for any such work.” As part of this item, staff is recommending authorization to proceed with Phase II.
FISCAL IMPACT: There is no fiscal impact associated with this item; as part of the original approval, the project budget of $539,100.00 was approved for a term through March 24, 2028, pending a return to City Council prior to moving forward with Phase II. To date, the project has been on time and under budget regarding Phase I, and a revised scope for Phase II (Attachment 2) is attached, with clarifications on project milestones.
ENVIRONMENTAL ISSUES: This informational update 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. Project Summary Prepared by Consultant Harmonie Park
2. Project Budget (Revised)
PREPARED BY: Mandy Brown, Assistant City Manager
RECOMMENDATION: Authorize implementation of Phase II of the project. -251-
1 Tobin Clark Property - Phase IA and IB Summary
Hillsborough, California
Background
This Tobin Clark Phase IA and IB Summary represents the culmination of a rigorous, multi-phase planning and due diligence process initiated in October 2025, when Harmonie Park was engaged by the Town of Hillsborough to evaluate the development potential of the Town-owned Tobin Clark site. In alignment with Phases 1A and 1B of Harmonie Park’s response to the Town’s RFP, which emphasized gaining a deep understanding of project constraints, policy context, and a disciplined, iterative planning approach—Harmonie Park undertook a comprehensive study of the property’s physical, environmental, and financial feasibility.
Objective
Our objective was centered on testing the viability of a minimum of 100 multifamily housing units, including 50 market rate and 50 affordable homes, while enabling the Town to retain ownership of the majority of the 21.51-acre property by minimizing the development footprint. This was also consistent with the Town’s Housing Element goals, which identified the Tobin Clark site as accommodating 100 homes across multiple income levels, including 44 very low-income units, 6 moderate income units, and 50 market rate income units. From our experience, successful delivery of almost 50% of the site as very low-income units would require a partnership with an affordable housing developer, who has access to funding mechanisms traditional market rate developers do not have, such as equity through low-income housing tax credit products and state and County funds. Otherwise, the burden of subsidizing 44 very low and 6 moderate affordable homes through inclusionary development would be unviable, which is why most market rate development affordable housing requirements are typically capped between 5 – 20% of units, depending on depth of affordability being delivered.
Planning; Analysis; Regroup
Initially, two market rate development scenarios paired with an affordable housing building were studied. Option A included 50 for-sale multifamily condominiums and Option B included 59 multifamily rental units. The building form for both would be a five-story podium building with two levels of structured parking partially underground. This building typology is typical for the type of density that was required to deliver the number of units that was desired paired with as little development footprint as possible. The affordable scenario included a 51-unit building that included 50 affordable and 1 market rate (manager’s unit). This building is also in a podium form with 4 full stories and one half-story over two levels of parking, utilizing the hillside to accommodate partially underground parking. Both market rate scenarios work, alongside a 51-unit multifamily building from a site-planning perspective. However, neither the market rate rental nor the for-sale scenario is financeable.
After detailed analysis—including site walks, topographic mapping, environmental review, infrastructure assessment, preliminary design, and financial modeling—it became clear that current construction costs to build a podium building with structured parking, infrastructure requirements, and competitive market dynamics were too much to overcome to produce the desired number of housing units.
ATTACHMENT 1
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2 A New Development Framework
Despite that setback, several positive conclusions were established that provided reasons to continue to evaluate the site. First, the affordable housing partnership opportunity for the 51-unit building does appear to be viable and generally competitive with tax credits assuming, amongst other things, that the infrastructure could be constructed by others. This alone was compelling. Further, while the infrastructure to serve the project is expensive, the industry has learned that townhomes have lower construction costs and higher per square foot value than multifamily stacked condominiums or rental housing in podium form, resulting in more financial capacity to fund other project expenses. In addition, the utility layouts that were designed created an additional opportunity to create custom home lots which have become another source of revenue without significantly increasing costs. This would expand the size of the development footprint but still retains over 12 acres of undeveloped land within the approximately 21.5-acre study area.
Therefore, consistent with the RFP’s directive to apply data-driven analysis, flexibility, and creative planning, Harmonie Park advanced the planning process through multiple iterations and feasibility test fits, to evolve a housing program in response to continued hurdles and site constraints. This iterative methodology—explicitly contemplated in the RFP as part of Phase I due diligence and Phase I-B preliminary master planning—allowed the team to identify a development framework that both meets the Town’s affordable housing objectives while reaching potential economic viability.
The result is a Master Plan concept comprising approximately 92 to 94 units of mixed-income homes, blending market-rate ownership housing, including estate homes, ADUs, and townhomes, with affordable rental housing. This revised program reflects a strategic recalibration from earlier concepts, aligning with the RFP’s expectation that site constraints, market realities, and policy objectives are all considered when working towards a feasible development strategy. Approximately 12 acres of public open space, including trails and other potential community benefits, is also included.
The Challenges
The site itself presents a unique set of challenges that were central to shaping the Master plan. Spanning a largely undeveloped and topographically complex landscape, the property includes slopes ranging from approximately 8% to over 60%, limited buildable areas, and biological constraints requiring avoidance or mitigation. Infrastructure is not currently in place, necessitating coordinated extension of utilities, roadway improvements, and the creation of a looped water system—conditions that significantly influence both cost and site design. Although main loop road at the College of San Mateo (“CSM”) was initially considered as a potential primary ingress and egress to Tobin Clark, it was quickly determined that utilities would need to be routed within the Tobin Clark site to connect to existing Town of Hillsborough utilities. This ultimately reduced the reliance on CSM. Access options, including Emergency Vehicle access, continue to be explored.
The Response
In response to these conditions, the final land plan organizes the site into three integrated residential components that balance density, feasibility, and neighborhood compatibility. The utilities and roadways compose approximately 1.71 acres of the property. Overall, the development area of the site -254-
3 is approximately 9.5 acres, leaving the remainder 12 acres under Town control, if desired. The remainder 12+ acres may include public open space, public trails, or other community benefits. A summary of the Master Plan is as follows:
Townhomes: The townhome parcels, consisting of approximately 1.75 acres, contain 24 three-story residences that step with the hillside, each offering approximately 2,500 square feet and three or fourbedroom layouts designed for family living. The architecture has not yet been developed, but contemplates articulated massing, layered materiality, and careful response to grade transitions.
Structures may be partially embedded into the slope, reducing perceived scale while maintaining strong indoor-outdoor connections. The townhome building type will reduce visual impact on the hillside when compared to potential 5-story (plus partially underground parking) buildings.
Custom Lots: Complementing the townhomes are 10 half-acre custom estate lots that reflect the prevailing development pattern of Hillsborough and respond directly to market analysis conducted during the due diligence process. The inclusion of these lots is a key outcome of the feasibility work, as the ability to introduce estate-scale ownership housing was identified as critical to offsetting substantial infrastructure costs. These lots provide long-term optionality for high-value custom homes and the potential integration of up to 10 accessory dwelling units. The overall expected acreage for the custom lots is approximately 5 acres.
Affordable Homes: The third component is a 50-unit affordable multifamily building, plus one manager’s unit, located on an approximately 0.81-acre parcel. Designed as a podium-style structure, this building efficiently concentrates density in the most suitable portion of the site and is configured to be competitive for the current 9% Low-Income Housing Tax Credit program. The unit mix emphasizes family housing, with a significant proportion of two- and three-bedroom units, serving households earning between 30% and 60% of area median income, satisfying the Town’s objective for very low-income homes. Other potential funding programs include San Mateo County’s measure K grants which may be able to give residents of the County preference for units. The affordable housing component directly -255-
4 advances the Town’s Housing Element obligations and fulfills the RFP’s objective of integrating meaningful affordable housing within a feasible development framework.
Open Space and Community Benefits
The Master Plan includes approximately 12 acres of open space, serving as a central and defining element of the overall plan. This space is envisioned as a cohesive and high-quality landscape asset, incorporating publicly accessible pathways, scenic viewpoints, and areas designed to support community use in Hillsborough.
A key priority of the Master Plan is the thoughtful integration of a centralized area within this open space that can accommodate community-oriented amenities—such as a community room, play areas, or similar gathering spaces—while maintaining flexibility as design concepts continue to evolve.
As planning progresses, the financial considerations associated with these community assets will be evaluated and incorporated into the overall Master Plan financial analysis. Regardless of the final configuration, these open space areas must be welcoming and accessible, supporting use by the broader Hillsborough community and reinforce strong connections between the site and its surrounding context.
Finances
Financially, the earlier site plan iterations that relied exclusively on podium buildings and multifamily housing formats were constrained by high per-unit development costs and the absence of a proven multifamily pricing benchmark within Hillsborough, where surrounding communities such as San Mateo and Burlingame offer competing inventory at lower price points. Further, these larger market rate buildings, while minimizing overall development footprint, did not integrate as seamlessly into the Hillsborough community as desired. In response, the Master Plan program introduces a market-rate component that generates a market return within a range that is feasible, while also creating a plan with a variety of home types more in scale with the existing community. Further, a financially viable market rate project enables delivery of the infrastructure package that the affordable housing component cannot fund on its own. This contribution of infrastructure in addition to land dedication by the Town will make this an attractive offering when it is ultimately made available for proposals from affordable housing developers.
A Mixed-Housing, Integrated Hillsborough Neighborhood
The progression from initial feasibility testing to a viable mixed-income plan demonstrates the effectiveness of a phased due diligence approach, with each phase—due diligence, site analysis, preliminary master planning, and financial modeling—informing subsequent decisions. The inclusion of strategic “check-in” points, as described in the RFP, allowed the Town’s subcommittee to evaluate evolving options and ultimately converge on a plan that is both achievable and aligned with housing element goals.
Next Steps – Implementation and Developer Selection Strategy Despite the many iterations studied during Phase IA and Phase IB, there is still work to be done. With the establishment of a financially viable and policy-aligned development program, the next phase of -256-
5 work transitions from feasibility to refinement, and then implementation. Specific to refinement, there is an objective to include community benefits, specifically those that would help to integrate the property with the rest of Hillsborough. Harmonie Park would explore these opportunities, including community space, public walking trails/connections, and other civic options as mentioned above.
There will need to be proforma and site plan refinement to establish a budget for this work that keeps the proposal in-line with financial viability. Therefore, additional work by the civil engineers and architects will also be necessary. This was already originally contemplated in the original RFP scope but has now been further refined based on the information generated through the first phase of analysis.
Complementing this refinement, the project now advances into a community outreach process and continued stakeholder outreach. Ultimately, a formal solicitation process to secure a developer/partner or team of developers that builds the housing remains the ultimate goal.
The immediate priority is completion of Phase II Master Planning, which will further refine the site plan, infrastructure design, architectural concepts, and financial modeling. This effort will include more refined grading and utility plans, coordination with fire and building departments, preliminary CEQA strategy and budgets, and continued engagement with the College of San Mateo. The outcome of this phase will be a fully articulated project framework, including draft project descriptions suitable for use in environmental review and developer solicitation. A modified scope and budget is below.
At this time, CEQA processing has been removed from Phase II Master Planning. This has significantly reduced the overall budget for the Project Management team at Harmonie Park. We do propose developing anticipated CEQA budgets in this next phase, which will help inform a future developer of the site.
If the Town is satisfied with the refined Master Plan, the project will proceed into a modified Phase 3A – Developer RFP Development Process, which represents a critical transition from planning to execution.
During this phase, a comprehensive Request for Proposals will be prepared to solicit qualified development partners capable of delivering the project. The RFP will clearly articulate the Town’s objectives, the approved site plan, development requirements, and evaluation criteria, ensuring alignment with both financial feasibility and community goals. A structured pre-bid process will provide transparency and clarity to potential respondents, including informational meetings and formalized responses to developer inquiries. Proposals will be collected and evaluated based on experience, financial capacity, design approach, alignment with the Town’s vision, and in compliance with the State Surplus Lands Act and other relevant laws governing public lands.
The subsequent Phase 3B – RFP Response Review and Developer Selection will focus on advancing from preferred proposal to formalized partnership. This phase includes detailed review and negotiation of term sheets, refinement of development responsibilities, and preparation of a binding development or purchase agreement. Key considerations will include allocation of risk, infrastructure responsibilities, delivery of the affordable housing component, and long-term project phasing. -257-
6 Together, these next steps reflect a logical and disciplined progression from concept to implementation.
They maintain the RFP’s emphasis on transparency, competitive selection, and strategic alignment while ensuring that the Town retains flexibility and control throughout the process. By structuring the project to enter the market with a clear, financially tested, and entitlement-ready plan, Hillsborough will be well-positioned to attract high-quality development partners and successfully deliver the affordable homes as identified in the Housing Element.
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7 Modified Scope and Budget for Phase 2 (2A and 2B) and Phase 3 (3A and 3B) Master Plan Phase 2: Tobin Clark Property
Phase 2A Master Planning Administration for the Tobin Clark Property - (Approx. 4.25 months from MidJune 2026 – October 2026) • Consultant procurement
o Civil
Refined Grading and Utility plan
Refined Stormwater Plan
Revised Engineers Estimate
Up to 4 Easement Plats and Legals for access areas
Meetings and Coordination with various public agencies as needed • Coordination with Fire Department on access, potential AMMR, and Fire Access Plan
• ADA Coordination with Building Department on Public Access and Amenities
Miscellaneous Exhibits and Services
• Establish if property in a Wildland Urban Interface (WUI) and if so, what civil code requirements would be
o Architecture
Additional Site Planning
Additional coordination
• Fire Department and / or Fire consultant
• ADA Consultant and / or Building Department
• Wildland Urban Interface (WUI) building requirement review Community Room concept plans:
• Diagrammatic Floorplan
• Reference elevation images
Townhome concept plans:
• Diagrammatic Floorplan
• Reference elevation images
Custom lot concept plans
• Diagrammatic building pad location and vehicular access Affordable building concept plans:
• Diagrammatic Floorplan
• Reference elevation images
• Consultant procurement - request scopes for technical studies for Tobin Clark Property to inform budget:
o Technical Studies
Biology, Geotech, Transportation, Air Quality, Noise
Other reports as required
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8 o CEQA Process Overall – Coordination with Housing Element CEQA consultant for overall budget and go-forward environmental process.
• Strategize and Initiate Necessary Access Negotiations o Establish size of each easement
• CSM Continued Coordination on Lot P Development
• 1 Neighborhood Meeting in Coordination with Town Staff • 1 Community Outreach Survey in Coordination with Town Staff Phase 2B Master Planning for Tobin Clark Property - (Approximately 3.5 months – Nov 2026 – Jan 2026) • Continued coordination with CSM on Tobin Clark Development • Continue/Finalize Access and Utility Negotiations to Tobin Clark • Architecture:
o Additional site planning and / or concept plan updates based on community outreach o Architectural Summary (Based on concept plans)
Description of each product type
Custom lot area
Custom building pad area
Building heights (stories)
Construction Type
Unit counts
Bedroom count
Living area
Construction Area
o Civil:
Miscellaneous Master Planning Services: Setbacks, standards and relevant changes based on architectural modifications
• Refine community benefit package
• Refined Financial Modeling
o Tobin Clark
Refined Market Analysis – Market Rate and Custom Lots Affordable Housing Process
Refined Fees
Updated / Refined Construction Costs
Updated / Refined Infrastructure Costs
• DRAFT Project Summary for CEQA and Reports
• Create Draft CEQA and Entitlement Approach
• One Neighborhood Meeting in Coordination with Staff
Phase 3: Tobin Clark Property Developer Selection – RFP Process Phase 3A - Tobin Clark Property RFP Development – 2.5 Months (Feb – April 2027) -260-
9 • 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 3B: RFP Response Review - 2 Months (April – May 2027) • Term Sheet Review: Reviewing and refining the preliminary agreement that outlines key deal terms, including responsibilities, timelines, financial arrangements, and contingencies. • Purchase Agreement Review: Engaging in discussions and revisions of the legally binding contract that governs the developer’s obligations, project milestones, performance standards, and compliance requirements.
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Town of Hillsborough Revised RFP Budget Total Hours -
Harmonie Park
Budget -
Harmonie Park
Budget -
Consultants
Estimated Revised
Total Budget -
Includes Consultants
All Phases
Previous Phase 1-3
Budget (Consultant
Budgets for Phase I,
2-3 were TBD)
Difference
Work Completed - Phase I $ - $ - $ 188,700 $ 188,700 $ - TOTAL BUDGET - Phase 2 and 3 - Includes Consultants $ 167,400 $ 242,000 $ 409,400 $ 409,500 $ 100 Phase 2: Master Plan Phase 2 A and 2 B 732 $ 108,300 $ 221,000 $ 329,300 Phase 2 A Master Planning Administration (120 days)
Consultant Coordination 48
Community Outreach 45
Compiling Technical Study Budgets 25
Funding Strategy 12
Financial Modeling 12
Agency and Stakeholder Coordination 28
Monthly Meetings, Invoicing and Progress Reports 16 $ 55,800 Consultant Budgets
Civil Engineer Budget $ 63,600
Architecture Budget $ 36,000
Additional Consultant Budget $ 11,500
Sub-Total Phase 2 A 186 $ 55,800 $ 111,100 $ 166,900
Phase 2 B Master Planning Process (100 Days)
Design Refinement and Standards 44
Community Engagement 45
Financial Modeling Update on Master Plan 25
Entitlement and CEQA Approach, Draft Project Summary 19 Agency and Stakeholder Coordination 32
Monthly Meetings, Invoicing and Progress Reports 10 $ 52,500 Consultant Budgets
Civil Engineer Budget $ 18,000
Architecture Budget $ 14,400
Additional Consultant Budget $ 11,500
Sub-Total Phase 2 B 175 $ 52,500 $ 43,900 $ 96,400
Phase 3: Developer Selection 197 $ 59,100 $ 21,000 $ 80,100 Brokerage Services (Optional, see page 12 of RFP for details) 2% of sale / land lease price Phase 3 A Developer Negotiations (85 days)
RFP Development 25
Pre-Bid Meeting 8
Q&A Factsheet 12
Bid Collection 12
Proposal Review 32
Developer Selection 12
Monthly Meetings, Invoicing and Progress Reports 6 $ 32,100 Consultant Budgets - Assumes Miscellaneous Consultant Needs Civil Engineer Budget $ 12,000
Architecture Budget
Additional Consultant Budget $ 6,000
Sub-Total Phase 2 A 107 $ 32,100 $ 18,000 $ 50,100
Phase III B Developer Negotations (200 Days)
Term Sheet Review 44
Development Agreement Review 40
Monthly Meetings, Invoicing and Progress Reports 6 27000 Consultant Budgets
Civil Engineer Budget
Architecture Budget
Additional Consultant Budget $ 3,000
Sub-Total Phase 2 B 90 $ 27,000 $ 3,000 $ 27,000
ATTACHMENT 2
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