Menlo Park City Council
March 10, 2026

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov City Council

REGULAR MEETING MINUTES
Date: 3/10/2026
Time: 6:00 p.m.

Locations: Teleconference and
City Council Chambers
751 Laurel St., Menlo Park, CA 94025
Regular Session
A. Call To Order
Mayor Nash called the meeting to order at 6:04 p.m.

B. Roll Call

Present: Combs, Nash, Schmidt (remote – Brown Act), Taylor

Absent: Wise
Staff: City Manager Justin Murphy, Assistant City Manager Stephen Stolte, City Attorney Nira Doherty, Assistant to the City Manager/ City Clerk Judi A. Herren C. Agenda Review
None.

D. Public Comment
• Tom Ziola commented on a dangerous condition for bicyclists on the 300/400 block of El Camino Real.

E. Presentations and Proclamations
E1. Proclamation: Women’s History Month (Attachment)
Mayor Nash introduced the proclamation.

Junior League of Palo Alto-Mid Peninsula President-elect Kristy Bonham and Executive Vice President Kris Bish accepted the proclamation (Attachment).

F. Consent Calendar
F1. Accept the City Council meeting minutes for February 10, 2026 (Attachment) F2. Consider the travel requests for City Councilmembers for the 2026 Progress Seminar (Staff Report #26-031-CC)
F3. Authorize the city manager to execute an amendment to the agreement with Knorr Systems Inc. for aquatics systems maintenance in an amount not to exceed $130,114.38 during fiscal year 2025-26 (Staff Report #26-032-CC)

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov ACTION: Motion and second (Taylor/ Combs), to approve the consent calendar, passed 4-0-1 (Wise absent).

G. Study Session
G1. Provide direction on the Slow Streets Program and implementation process (Staff Report #26-033-CC)
Senior Transportation Planner Catrine Machi made the presentation (Attachment). • Bill Kirsch spoke in opposition of the new Neighborhood Traffic Management Plan (NTMP) and the data driven process.
• Laura Melahn spoke in opposition of the 85th percentile metric and provided a history of accidents occurring where the community requested safety measures. • Katie Behroozi spoke in support of the Complete Streets Commission (CSC) and city staff proposed slow streets program.
• Janet Poses spoke in support of simple measures to slow traffic.

The City Council received clarification on the legacy project queue, areas of concentration criteria for bike/ pedestrian usage, speedbump cost, including location of childcare centers and schools, use of the State database, data collection processes, counting of bike/ pedestrians, evaluating projects based on the length of time on the waiting list, funding, and the 85th percentile vehicle speed metric.

The City Council discussed the roles of City Council and staff in projects, determining a point system, including Beechwood School and Belle Haven School in the Plan and adding consideration of lighted stop signs near schools.

The City Council directed staff to:
• Incorporate equitable distribution among districts
• Incorporate the development of a report to City Council summarizing the progress of the program and inclusive of a list of projects deemed not eligible, to be provided as an informational item
H. Regular Business
H1. Authorize initiation of a Proposition 218 notification process in preparation to adopt maximum solid waste rate increases for the next five fiscal years at a public hearing May 12 (Staff Report #26-034-CC)
Public Works Director Azalea Mitch and R3 Consulting Group, Inc. President Garth Schultz made the presentation (Attachment).

The City Council received clarification on the Proposition 218 protest process, Bayfront Landfill closure maintenance, Recology contract update, and inclusion of street sweeping costs in the solid waste rates.

ACTION: Motion and second (Combs/ Nash), to authorize the initiation of a Proposition 218 notification process in preparation for the adoption of maximum solid waste rate increases for the next five fiscal years City Council Regular Meeting Minutes
March 10, 2026

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov (2027 to 2031) at a public hearing May 12, passed 4-0-1 (Wise absent).

H2. Authorize initiation of a Proposition 218 notification process in preparation to adopt maximum water rate increases for the next three fiscal years at a public hearing May 12 and consider and adopt a resolution establishing procedures for compliance with Assembly Bill 2257 (Staff Report #26-037-CC)
Public Works Director Azalea Mitch made the presentation (Attachment).

The City Council directed staff to proceed with Option 1 at three years.

ACTION: Motion and second (Combs/ Schmidt), to authorize the initiation of a Proposition 218 notification process in preparation for the adoption of maximum water rate increases for the next three fiscal years (2027 to 2029) at a public hearing May 12; and adopt a resolution establishing procedures for compliance with Assembly Bill (AB) 2257, passed 4-0-1 (Wise absent).

I. Informational Items
I1. City Council agenda topics: March – April 2026 (Staff Report #26-035-CC) I2. City Council fiscal year 2025-26 work plan update (Staff Report #26-036-CC) J. City Manager Report
City Manager Justin Murphy reported out on the Spring Activity Guide opening March 14 and the City Council priority setting meeting March 21.

K. City Councilmember Reports
Mayor Nash reported out on the Peninsula Clean Energy (PCE) and Council of Cities meetings and a meeting with San Mateo County Sheriff Binder and Menlo Park Police Chief Norris.

L. Adjournment
Mayor Nash adjourned the meeting at 8:53 p.m.

Assistant to the City Manager/ City Clerk Judi A. Herren These minutes were approved at the City Council meeting April 14, 2026.

City Council Regular Meeting Minutes
March 10, 2026

Proclamation
WOMEN’S HISTORY MONTH MARCH 2026
WHEREAS, every March, Women’s History Month provides an opportunity to honor the generations of trailblazing women and girls who have built our nation, shaped our progress and strengthened our character as a people; and
WHEREAS, the 2026 theme, “Leading the Change: Women Shaping a Sustainable Future,” honors the women who have and are reimagining and rebuilding systems to ensure long term sustainability – environmental, economic, educational and societal. It recognizes the powerful leadership of women in creating a future that is rooted in equity, justice and opportunity for all; and
WHEREAS, from environmental advocacy to financial reform, from community organizing to policy innovation, women are at the forefront of driving holistic change. Their leadership is not only addressing today’s most urgent challenges – it is laying the foundation for a more resilient and inclusive tomorrow; and WHEREAS, throughout history women have opened the doors of opportunity for subsequent generations of dreamers and doers, community leaders, elected leaders, educators, first responders, service members, doctors, scientists, child care providers, innovators, entrepreneurs and essential workers in every industry, leading society towards a safer, more equitable future; and WHEREAS, this Women’s History Month, we pay special acknowledgement to the visionary leaders who have represented our community with excellence, such as San Mateo County Supervisors Lisa Gauthier, Noelia Corzo and Jackie Speier, California State Assemblymember Diane Papan and former Congresswoman Anna Eshoo; and
WHEREAS, this Women’s History Month, we also acknowledge the woman leaders within the city organization, whose leadership, mentorship, innovation and expertise are vital to Menlo Park’s growth and success; and
NOW, THEREFORE, BE IT PROCLAIMED, that I, Betsy
Nash, Mayor of the City of Menlo Park, on behalf of the City Council and City, do hereby proclaim and celebrate March 2026 as Women’s History Month in Menlo Park.

Betsy Nash, Mayor
March 10, 2026
AGENDA ITEM E-1 Page E-1.1 City Council Regular Meeting Minutes March 10, 2026

1 Slow Streets Program
Catrine Machi, Senior Transportation Planner
G1-PRESENTATION
City Council Regular Meeting Minutes March 10, 2026 Page 5 of 60 Agenda
 Background Program overview and process Complete Streets Commission Feedback Recommendation 2 City Council Regular Meeting Minutes March 10, 2026 Page 6 of 60 Background
 2004 – Neighborhood Traffic Management Program (NTMP) was established
 2020 – Transportation Master Plan (TMP) recommendation to streamline
 2020 – NTMP was paused  2022 – Complete Streets Commission provided feedback on NTMP in April
 2023 – City Council Direction to update NTMP in September 2024 – Vision Zero Action Plan (VZAP) was adopted 3 City Council Regular Meeting Minutes March 10, 2026 Page 7 of 60 Background – Why Update the NTMP?
 City Council Direction
- Return with an update on the VZAP, followed by refinement of the NTMP process
• Develop criteria and prioritization of sensitive populations• Focus on speed reduction and safety requests• Identify staff for evaluating requests and funding resources to implement project  NTMP required neighborhood petition which did not provide equal access to all residents
 Multi-year timelines require more resources
4 City Council Regular Meeting Minutes March 10, 2026 Page 8 of 60 Slow Streets Program Overview
 Successor to NTMP Neighborhood streets
- Per General Plan: Neighborhood Connector, Bicycle Boulevard, and Local Access
 Objectives
- Encourage safe speeds on neighborhood streets and maintain neighborhood circulation
- Use data-driven and equitable approach to prioritize projects  Key Changes
- Removal of the petition requirement- Batched review process- Data-driven scoring 5 City Council Regular Meeting Minutes March 10, 2026 Page 9 of 60 Program Process - Intake
 An online form will be available on the City’s website - Public outreach would involve digests, website update, coordination with Safe Routes to School task force and Complete Streets Commission  Upon submission of a safety concern by the public, staff will review and follow up as needed if more information or clarification is required to complete the intake process 6 City Council Regular Meeting Minutes March 10, 2026 Page 10 of 60 Program Process – Eligibility
Review Neighborhood streets Requests that are not eligible for the Program may be considered through other city processes - Higher Classification Roadways –
TMP, Vision Zero, CIP
- Parking Removal – Pursuant to
Municipal Code 11.24
- Other Service Requests –
Maintenance services
7 City Council Regular Meeting Minutes March 10, 2026 Page 11 of 60 Program Process – Evaluation and Prioritization
 Prioritized using a point-based system Focuses on the relative severity and frequency of safety concerns on each street segment
 Points are assigned to each project based on:
- Speeds, injury collisions, and traffic volumes- Proximity to community activity centers such as schools, parks, and pedestrian/bicycle bridges or undercrossings
- Located within an underserved community
 Speed and volume data is currently sourced from StreetLight data
8 City Council Regular Meeting Minutes March 10, 2026 Page 12 of 60 Program Process – Point-Based System
9 Metric Purpose Threshold Scoring
every mph over the +1 point speed limit
Speeding is a primary contributor to safety
Speed - 85th
Percentile
+2 points
every collision on the segment based on most recent 3 years Provides direct evidence of existing safety concerns
Injury Collisions
Increases exposure to every 500 above 750 +1 point potential conflicts Volume – Annual Average Daily Traffic
Higher concentrations Adjacent or not +1 pointof pedestrians and bicyclists Community activity centers
Supports equitable In or Out +1 pointinvestment and resource allocation Underserved community
City Council Regular Meeting Minutes March 10, 2026 Page 13 of 60 Program Process – Sample Scoring
10 Total
Score
Underserved
Community
Activity
Center
85TH AADT
%
AADT Collisions
MonThurs
85TH
%
MonThurs
Location
Street A 30 1,300
2 125
0 10
Street B 27 2,600
0 142
0 7
Street C 23 1,300
2 120 1 6
Street D 80026
2 011
0 4
Street E 23 1,500
0 020
0 2
AADT: Annual Average Daily Traffic – the average number of vehicles on a roadway segment over a year. -- 0
City Council Regular Meeting Minutes March 10, 2026 Page 14 of 60 Program Process – Sample Scoring
 Projects with points for speed that are on an emergency route will require further study and coordination
 Projects with no points for speed or collisions will not be further evaluated or prioritized
11 Total
Score
Underserved
Community
Activity
Center
85TH AADT
%
AADT Collisions
MonThurs
85TH
%
MonThurs
Location
80026
2 011
0 4
Street on
Emergency
Route
23 1,500
0 020
0 2
Street With
Low Speeds
and No
Collisions -- 0
City Council Regular Meeting Minutes March 10, 2026 Page 15 of 60 Program Process – Design
 Selected project(s) will proceed to the conceptual design phase Conceptual designs will be presented to the CSC for feedback and community input
12 Images: Examples of traffic calming measures from the VZAP Toolbox City Council Regular Meeting Minutes March 10, 2026 Page 16 of 60 Program Process – Implementation
 Projects may be advanced through three delivery pathways, depending on project location, scale and available budget - Quick Build – Smaller-scale projects that can be implemented with limited design and resources and implemented within the fiscal year - Capital Improvement Plan – Added to the projects in the next 2-3 years (e.g., Street Maintenance Program)
- Larger or more complex projects that may be incorporated into the City’s 5-Year CIP (e.g., Coleman Ave. Pilot)
 Following design finalization and resource allocation, approved projects proceed to construction or installation
13 City Council Regular Meeting Minutes March 10, 2026 Page 17 of 60 Program Process – Implementation Authority
 Municipal Code Section 11.12.010 states that the City Council may, by ordinance or resolution, establish traffic control devices - Speed humps do not require City Council action- All other devices require City Council action  Staff recommends an implementation process allowing city manager or designee to install traffic control devices
14 City Council Regular Meeting Minutes March 10, 2026 Page 18 of 60 Program Process – Implementation Example
 Capital Improvement Plan – Street Maintenance Program - Top ranked segment- Opportunity to include in the planned resurfacing project- Recommended traffic calming design – two speed humps - Estimated cost is $15,000 per speed hump, total of $30,000 15 City Council Regular Meeting Minutes March 10, 2026 Page 19 of 60 Complete Streets Commission (CSC) Feedback
 January 14 – CSC reviewed and recommended the Program to City Council with the following modifications:
- Changing the scoring on vehicle speeds over the speed limit from linear to non-linear
• Not incorporated
- Include a scoring factor to reflect bicycle and pedestrian usage on neighborhood streets
• Incorporated into Program
16 City Council Regular Meeting Minutes March 10, 2026 Page 20 of 60 Recommendation
 Staff is seeking City Council direction on the Program and the proposed implementation process to support administrative efficiency  Staff would return in April and recommend City Council’s adoption of the Program as a consent item
17 City Council Regular Meeting Minutes March 10, 2026 Page 21 of 60 18 Thank You
City Council Regular Meeting Minutes March 10, 2026 Page 22 of 60 1 Public Notification of Solid Waste Rate
Increases for 2026 through 2031
March 10, 2026
Azalea Mitch, Public Works Director
Garth Schultz, R3 Consulting Group, Inc.

H1-PRESENTATION
City Council Regular Meeting Minutes March 10, 2026 Page 23 of 60 AGENDA
 Background Rate study objectives and process Rate scenario Recommendations Proposition 218 notice Next steps 2 City Council Regular Meeting Minutes March 10, 2026 Page 24 of 60

BACKGROUND
 Solid waste services - collection of garbage, recycling, and organics provided by Recology San Mateo via Agreement with City (exp. 12/31/2035)  One of eleven public agencies of RethinkWaste in San Mateo County
 RethinkWaste owns and manages the Shoreway
Environmental Center in San Carlos
- South Bay Industries (SBI) is the contract operator- Residential and commercial solid waste and recyclable materials are processed and shipped
 Landfill management - City owns and manages the landfill at Bedwell Bayfront Park 3
City Council Regular Meeting Minutes March 10, 2026 Page 25 of 60

BACKGROUND
 Self-supporting enterprise
- Recology conducts billing and collection of rates on behalf of the City - City manages solid waste and landfill funds (two separate funds)  Single-family residential customers receive bundled services for garbage, recycling, and organics at one rate
 Multi-family and commercial customers pay separate garbage, recycling, and organics rates
4 City Council Regular Meeting Minutes March 10, 2026 Page 26 of 60

BACKGROUND
5 City Council sets the maximum rates, which are charged by Recology to customers for solid waste system services Prior to 2018, rates had not been adjusted since 2012, yielding annual shortfalls – rate revenues did not meet cost of serviceIn 2020, City Council set maximum rates for residents and businesses for calendar years 2021 through 2025Rates from 2018 through 2025 reversed prior shortfall trend and phased in rate adjustments meeting expenses City Council Regular Meeting Minutes March 10, 2026 Page 27 of 60

RATE STUDY PRINCIPLES AND PROCESS
 Collect revenues to fund solid waste system
- Collection services contract with Recology (48% of costs)- Post-collection services through SBWMA (37% of costs)- City fees (15%)  Ensure the revised rate structure to address Prop 218 - Adjusts rates based on cost of providing services to customers- Includes all operational costs and fees  Provide rate stability
- Minimize impacts to rate payers- Annual data-driven rate adjustments- Avoid future rate revenue shortfalls 6 City Council Regular Meeting Minutes March 10, 2026 Page 28 of 60

OPERATING COST PROJECTIONS
7 $16,860,114
$16,299,417 $16,669,954 $17,492,559
$18,343,338 $19,236,654 $20,174,638
$560,697 $190,160
($632,445) ($1,483,224) ($2,376,540) ($3,314,524) ($5,000,000) $0
$5,000,000
$10,000,000$15,000,000$20,000,000$25,000,000
2025 2026 2027 2028 2029 2030
Revenues at 2025 Rates Cost Projections Surplus (Shortfall) City Council Regular Meeting Minutes March 10, 2026 Page 29 of 60

OPERATING COST PROJECTIONS
 Calendar year (CY) 2026 solid waste service costs are projected to be ~$16.67M Solid waste service costs for CY 2027 – 2031 are projected to increase from ~$17.49M to ~$20.17M Costs include street sweeping and additional maintenance staff for solid waste collection
 2027 projected expenses would exceed revenues  If rates are not increased, cumulative shortfalls would exceed $3.3M by 2030
 Failure to adjust rates to meet cost of service will result in “shortfalls” owed to Recology, which incur interest if not paid by City, and which would require larger rate increases in future years 8 City Council Regular Meeting Minutes March 10, 2026 Page 30 of 60 RATE STUDY – PROPOSED RATES
 Recommended fiscal year (FY) 2026-27 maximum rates
- Based on actual 2026 Recology Compensation Application and SBWMA 2026 Shoreway Budget
- Recology 2026 increase of 1.8% compared to 2025- SBWMA 2026 increase of 5.1% compared to 2025  Recommended FY 2027-28 – FY 2030-31 maximum rates
- Estimated cost increases of 5% per year for both Recology and SBWMA – higher increases would be funded by rate stabilization funds  No adjustments to City fees
- Separate fee study justifies existing fee amounts- Maintains healthy reserves in Solid Waste and Landfill Closure Funds- Fees will need to be revisited and adjusted 2031 - 2035 9 City Council Regular Meeting Minutes March 10, 2026 Page 31 of 60

REVENUES, COSTS, AND RESERVES PER YEAR
10 -$1,000,000
$4,000,000$9,000,000
$14,000,000$19,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Rate Revenues Revenue Requirement (aka Cost-of-Service) Annual Surplus (Shortfall) Cumulative Surplus Balance City Council Regular Meeting Minutes March 10, 2026 Page 32 of 60 RATE STUDY – PROPOSED RATES
 Single-family (1-4 units) bundled rates
- 6% increases effective annually July 1, 2026 – 2030- No changes to rates for additional carts  Multi-family (>4 units) and commercial garbage rates
- 1 cubic yard and less – annual increases from 0.04% to 4.72%- No changes to rates for 2 cubic yards or more  Multi-family (>4 units) and commercial recycling rates - Annual increases ranging 3.86% to 5.07%
 Multi-family (>4 units) and commercial organics rates - Less than 1 cubic yard – annual increases from 0% to 5%- 1 cubic yard and more – annual increases from 0.19% to 6% 11 City Council Regular Meeting Minutes March 10, 2026 Page 33 of 60

PROPOSED RATES
 Single-family residential (no more than 4 units)
- Bundled service rate- Annual increases in monthly rates ranging from ~$3 to $7 (6%) - No changes to rates for additional carts 12 July 1,
2030
July 1,
2029
July 1,
2028
July 1,
2027
July 1,
2026
Current
monthly
rate
Percent of
accounts
Landfill (garbage) container size
Waste
stream
20-gallon 24.0% $50.31 $53.33 $56.53 $59.92 $63.52 $67.33 Bundled solid
waste
collection,
processing
and disposal
service
32-gallon 48.2% $58.64 $62.16 $65.89 $69.84 $74.03 $78.4764-gallon 22.3% $73.93 $78.37 $83.07 $88.05 $93.33 $98.9396-gallon 5.5% $92.21 $97.74 $103.60 $109.82 $116.41 $123.39 City Council Regular Meeting Minutes March 10, 2026 Page 34 of 60

PROPOSED RATES
 Multi-family and commercial customers
13 Service Garbage Recycling Organics
Description Current Proposed Current Proposed Current Proposed20-gallon $80.61 $83.99 N/A N/A $115.94 $115.9432-gallon $83.75 $87.27 $30.34 $31.51 $120.49 $120.4964-gallon $93.20 $96.06 $30.34 $31.51 $133.18 $133.1896-gallon $104.80 $104.84 $30.34 $31.51 $145.60 $145.601 cubic yard $127.68 $133.38 $30.34 $31.51 $182.69 $183.032 cubic yards $249.39 $249.39 $30.34 $31.51 $257.15 $272.583 cubic yards $374.08 $374.08 $30.34 $31.51 $331.61 $351.514 cubic yards $498.78 $498.78 $30.34 $31.51 $406.41 $430.796 cubic yards $781.40 $781.40 $30.34 $31.51 $557.92 $591.408 cubic yards $1,041.88 $1,041.88 N/A N/A N/A N/A City Council Regular Meeting Minutes March 10, 2026 Page 35 of 60

PROPOSED RATES
 Roll-off and Compactors Rates
- Large waste generators & construction projects- No change in rates July 1, 2026- 1.36% increase July 1, 2027- 5% increase annually on July 1, 2028, 2029, 2030  Unscheduled Service Fees
- Elective services for customers- Maximum adjustment of 6% July 1 annually through July 1, 2030- Actual adjustment to be based on change in CPI 14 City Council Regular Meeting Minutes March 10, 2026 Page 36 of 60

RETHINKWASTE MEMBER AGENCY
SINGLE-FAMILY RATE COMPARISON 32-gallon Residential monthly bundled rates (2026) 15 $0.00
$38.62 $42.64 $49.66 $52.18 $52.53 $58.64 $58.86 $61.00 $62.16 $66.86 $75.15 $0
$20$40$60$80
$100$120$140$160$180$200
North Fair
Oaks
Burlingame Foster City Belmont San Mateo San Carlos Menlo Park (current)
Redwood
City
West Bay
Sanitary
Menlo Park
(proposed)
East Palo
Alto
Hillsborough
City Council Regular Meeting Minutes March 10, 2026 Page 37 of 60

RECOMMENDATIONS
Proceed with recommended five-year solid
waste rates
Authorize initiation of the Proposition 218
notification process to adopt the maximum rate increase for the next five fiscal years at a public hearing on May 12 16 City Council Regular Meeting Minutes March 10, 2026 Page 38 of 60 PROPOSITION 218 NOTICE
 Notice will include the max proposed rates, the rate structure, the date/time of the public hearing, and instructions for how to protest the rates Notice must be mailed to all property owners and tenant solid waste customers at least 45 days before the public hearing (staff will mail to all property owners and to all mailboxes city-wide) Only property owners and customers may protest to the proposed rates Only one protest will be counted per parcel Protests must be mailed or hand delivered Rates cannot be increased if more than 50% +1 of property owners/ customers submit written protests 17 City Council Regular Meeting Minutes March 10, 2026 Page 39 of 60

NEXT STEPS TIMELINE
 March 10 City Council reviews solid waste rate study and authorizes initiation of the Prop. 218 notification process  March 13 Update rate study report and Prop. 218 notice to match City Council direction, mail the Prop. 218 notice
 May 12 City Council public hearing to hear protests and adopt resolution setting new rates for the next five years
 July 1 New rates become effective and then adjust annually for the next three years on July 1
18 City Council Regular Meeting Minutes March 10, 2026 Page 40 of 60

THANK YOU
19 City Council Regular Meeting Minutes March 10, 2026 Page 41 of 60 1 Public Notification of Menlo Park
Municipal Water Rate Increases for
2026 through 2029
March 10, 2026
Azalea Mitch, Public Works Director
H2-PRESENTATION
City Council Regular Meeting Minutes March 10, 2026 Page 42 of 60 AGENDA
 Background Rate study objectives and process Rate scenarios  Recommendations Proposition 218 process Next steps 2 City Council Regular Meeting Minutes March 10, 2026 Page 43 of 60

BACKGROUND
 Menlo Park Municipal Water
- Water service for half of the city
 Approximately 4,400 service
connections
 56 miles of distribution mains,
two reservoirs, one pump station, an emergency well
 Self-supporting enterprise
fund
- Water sale revenues pay for all
(operating and capital) system expenditures
3 City Council Regular Meeting Minutes March 10, 2026 Page 44 of 60

BACKGROUND
 100% supply from
San Francisco Public UtilitiesCommission (SFPUC)
 SFPUC supply guarantee

4.456 MGD for non-droughtfiscal years
 Bay Area Water Supply and Conservation
Agency (BAWSCA) member agency
- Alameda, Santa Clara and San Mateo
counties who purchase water on a wholesale basis from the San Francisco Regional Water System  A future study session is planned to discuss
the Urban Water Management Plan update
4 City Council Regular Meeting Minutes March 10, 2026 Page 45 of 60 RATES
 Rates have been adopted through
periodic rate studies
 Include fixed meter charge,
consumption charge, capital facility surcharge, drought surcharges, SFPUC pass-though rate and capacity charges.  In 2025, the City entered into an
agreement with Black & Veatch Corporation to develop a Water Rate Study. 5 Rate Element DescriptionFixed meter charge Based on meter sizeConsumption charge Based on water useCapital facility surcharge Based on water use Based on water use (if drought declared): six stages Drought surchargeOne-time for new/upgraded connections to the system Capacity charges City Council Regular Meeting Minutes March 10, 2026 Page 46 of 60

RATE STUDY PRINCIPLES AND PROCESS
6  Develop strategy to fund on-going
operations and planned capital expenditures
 Perform a cost-of-service analysis that
meets Prop. 218 requirements and follows industry standards - Rate revenue cannot exceed funds
require to provide the service
- Rate revenue cannot be used for any
purpose other than for which it is imposed
 Recommend a rate structure and rates  Update water capacity charges City Council Regular Meeting Minutes March 10, 2026 Page 47 of 60

OPERATING AND CAPITAL COST PROJECTIONS
7 $8,500,000
$13,547,800
FY 2027 Projected expenses
CIP Operating Expenses
 O&M expenses are projected to increase
from $13,234,900 in FY 2027 to $14,189,400 in FY 2031
- 67% SFPUC purchase, increasing costs- Two Operator-in-Training positions- Recycled water  Capital expenses
- 2018 Water System Master Plan- $90 million in needs over through 2038 City Council Regular Meeting Minutes March 10, 2026 Page 48 of 60 OPERATING COSTS – WATER PURCHASE COST

SFPUC COSTS PER CCF
8 5.9%

2.6%

5.4%

3.0% 3.1%
$5.80 $6.14 $6.30 $6.64 $6.84 $7.05
$0.00$1.00$2.00$3.00$4.00$5.00$6.00$7.00$8.00

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0%
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Rate per ccf
Percent Increase
% Change Rate, $ per ccf
City Council Regular Meeting Minutes March 10, 2026 Page 49 of 60 OPERATING COSTS – WATER SOLD
9 0
200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Hundred Cubic Feet (CCF)
Total Water Sold
Total HCF 3 per. Mov. Avg. (Total HCF)
Forecast->
2031: 2.4 million gallons / day
City Council Regular Meeting Minutes March 10, 2026 Page 50 of 60

CAPITAL COSTS
 Proposed $46 million capital projects over the next five years 10 Water supply and
storage

19.5%
Water main
replacement

16.5% Water storage reservoir & pump
station

61.9%
Water system
improvements

2.2%
Fiscal year Total cost ($)FY 2027 $3,500,000FY 2028 $8,727,000FY 2029 $27,970,000FY 2030 $5,100,000FY 2031 $800,000Total $46,097,000 City Council Regular Meeting Minutes March 10, 2026 Page 51 of 60 RATE STUDY – REVENUE OPTIONS
11 Fiscal Year Long-term debt Revenue increase Option CIP $16M FY 2029
• 2027- 2028• 2029• 2030-2031
• 4.25%• 4.25%• 5.0%
1 $46.1M
$24M FY 2029 • 2027-2028 • 2029-2031 • 8.0% • 8.25%
2 $62.6M
No Debt
• 2027• 2028-2029• 2030-2031
• 20.0%• 6.5% • 0%
3 $46.1M
No Debt
• 2027• 2028-2029• 2030-2031
• 35.0% • 10.0% • 0%
4 $62.6M
City Council Regular Meeting Minutes March 10, 2026 Page 52 of 60 RATE STUDY – RATE

OPTIONS
12 Lowest impact, proposed
 Options result in varying rate increases per year Option 1 - lowest impact - Conservative CIP, debt financing
 Higher adjustment
- Due to a 0% increase in fiscal year
2021
- Change from tiered to uniform rate
structure
 Uniform rate
- $9.39 / ccf, 2027- $9.70 / ccf, 2028- $10.23 / ccf, 2029 Notes: 1) Ccf = 100 cubic feet, 7,048 gallons2) 10 ccf is average water consumption for single family home in MPWM3) July 1, 2025 cost = $130.41 per 10 ccf month with SFPUC pass-through City Council Regular Meeting Minutes March 10, 2026 Page 53 of 60

RATE INCREASES OVER TIME
13 City Council Regular Meeting Minutes March 10, 2026 Page 54 of 60 RATE STUDY – OPTION 1, OPERATING FUND
14 $0.0$5.0
$10.0$15.0$20.0$25.0
2027 2028 2029 2030 2031
Millions
O&M Debt Service Transfer to Other Funds Capital Projects Revenue Cash Balance Target Cash Balance 2031 Cash reserve:O&M = 120 days, $4.6M (maintain debt-coverage ratio)CIP = $3M City Council Regular Meeting Minutes March 10, 2026 Page 55 of 60

RATE COMPARISON OF BAWSCA AGENCIES
10 CCF, 5/8” METER
15 $0
$50
$100$150$200$250
Fixed Monthly Charge Consumption Charge Average
Avera
ge $123.05 (without
pro
posed Menlo Park) $123.01
$150.64
• 9 other agencies purchase 100% water from SFPUC*
2026 - $130.41/month with SFPUC pass-through2027 - $20.23/month increase City Council Regular Meeting Minutes March 10, 2026 Page 56 of 60

RECOMMENDATIONS
 Three-year, rather than five-year rates
- Allows staff to assess revenue projections and return to City Council in 2029  Option 1 – Includes debt financing and offers the lowest rate increase. - Revenue bonds - backed by revenues generated by rates and require City Council approval- General obligation bonds - backed by ad valorem taxes and require 2/3 voter approval - Loans: State Revolving Fund and federal - backed by revenues generated by rates and require City Council approval
 Authorize initiation of the Proposition 218 notification process to adopt the maximum rate increase for the next three fiscal years at a public hearing on May 12 and consider and adopt a resolution establishing procedures for compliance with Assembly Bill (AB) 2257 - AB 2257 sets an “exhaustion procedure” in concurrence with the Prop. 218 process that allows for objections to be submitted and for staff to draft responses for City Council review 16 City Council Regular Meeting Minutes March 10, 2026 Page 57 of 60 PROPOSITION 218 NOTICE
 Notice will include the max proposed rates, the rate structure, the date/time of the public hearing, and instructions for how to protest and object the rates  Notice must be mailed to all property owners and tenant water customers at least 45 days before the public hearing (staff will mail to all property owners and to all mailboxes in the service area)  Only property owners and customers may protest or object to the proposed rates  Only one protest and objection will be counted per parcel  Protests must be mailed or hand delivered AB 2257 objections must be received by April 30th  Rates cannot be increased if more than 50% +1 of property owners/customers submit written protests
 Includes “pass-through language” and drought surcharges 17 City Council Regular Meeting Minutes March 10, 2026 Page 58 of 60

NEXT STEPS TIMELINE
 March 10 City Council reviews water rate study and authorizes initiation of the Prop. 218 notification process and adopts AB 2257  March 13 Update rate study report and Prop. 218 notice to match City Council direction, mail the Prop. 218 notice
 April 30 AB 2257 objection deadline for customers May 12 City Council public hearing to hear protests and adopt resolution setting new rates for the next three years
 July 1 New rates become effective and then adjust annually for the next three years on July 1
18 City Council Regular Meeting Minutes March 10, 2026 Page 59 of 60

THANK YOU
19 City Council Regular Meeting Minutes March 10, 2026 Page 60 of 60