Menlo Park City Council
June 9, 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: 6/9/2026
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 6:02 p.m.

B. Roll Call

Present: Combs, Nash, Schmidt (remote), Taylor, Wise

Absent: None
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
Staff to provide an update on item F1.

The City Council to provide a comment on items F3. and H2.

D. Public Comment
• Gerald Wluka spoke on concerns about the traffic during pickup time at La Entrada Middle School.

E. Presentations and Proclamations
E1. Proclamation: Cal Water 100-year anniversary (Attachment) Mayor Nash introduced the proclamation.

Bear Gulch District Manager Dawn Smithson accepted the proclamation (Attachment).

E2. Proclamation: Pride Month (Attachment)
Mayor Nash introduced the proclamation.

Lead Training and Peer Group Coordinator for the San Mateo County Pride Center Ishani Dugar accepted the proclamation (Attachment).

E3. Proclamation: Juneteenth (Attachment)
Mayor Nash introduced the proclamation.

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Program Assistant Anasia Juniel-Rufus accepted the proclamation (Attachment).

F. Consent Calendar
F1. Accept the City Council meeting minutes for May 12, 2026 (Attachment) City staff provided amendments to the May 12 minutes, item G2.

F2. Waive the second reading and adopt an ordinance to repeal and replace Chapter 16.79 (Accessory Dwelling Units) of Title 16 (Zoning) of the Menlo Park Municipal Code for consistency with State law and incorporating local objective standards (Staff Report #26-092-CC) F3. Award a construction contract to Bortolussi & Watkin, Inc. and authorize the city manager to execute an amended memorandum of understanding with the San Mateo County Transportation Authority for the Willow Road and Highway 101 Interchange Landscaping Project (Staff Report #26-093-CC)
The City Council discussed increasing the number of trees proposed in the project, delays resulting from plan modifications and funding.

The City Council directed staff to consider additional trees without impacting the project with the use of Bay Front Mitigation Funds.

F4. Authorize the city manager to execute an agreement for fiscal year 2026-27 with Tripepi Smith for communications support services (Staff Report #26-101-CC) F5. Authorize the city manager to execute a maintenance agreement with Priority 1 Public Safety Equipment Installation, Inc. for on-call vehicle upfitting services (Staff Report #26-102-CC) ACTION: Motion and second (Taylor/ Combs), to approve the consent calendar with the amendments to the May 12 minutes, passed unanimously.

G. Public Hearing
G1. Consider and adopt a resolution to approve a vesting tentative subdivision map to subdivide a property into 50 condominium parcels and one common area parcel in the C-1 (Administrative and Professional, Restrictive) zoning district, at 68 Willow Rd. (Staff Report #26-096-CC) Senior Planner Chris Turner made the presentation (Attachment).

Mayor Nash opened the public hearing.
• Will Oursler spoke in support of the vesting tentative subdivision map and additional housing.

Mayor Nash closed the public hearing.

The City Council received clarification on replacement of heritage trees and construction timing.

City Council Regular Meeting Minutes
June 9, 2026

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov The City Council discussed housing density in the neighborhood.

ACTION: Motion and second (Combs/ Wise), to adopt a resolution approving a tentative subdivision map to subdivide the parcel located at 68 Willow Rd. into 50 condominium parcels and one common area parcel, passed unanimously.

G2. Hold public hearing on the proposed fiscal year 2026-27 budget and capital improvement plan; hold public hearing on vacancies, recruitment and retention; and consider and adopt a resolution to amend the fiscal year 2025-26 budget (Staff Report #26-103-CC) Assistant Administrative Services Director Fenny Lei and Administrative Services Director Brittany Mello made the presentation (Attachment).

Mayor Nash opened the public hearing.
• Ken Kershner spoke in support of funding the El Camino Real protected bike lanes project. • Adrian Silva spoke in support of funding the Safe Routes to School (SRTS) consultant services. • Adina Levin spoke in support of funding the El Camino Real protected bike lanes project. • Marcy Abramowitz spoke in support of funding the quiet zone and concerns of the matching funds method to secure funding.
• Katie Behroozi spoke in support for the SRTS program and using non-public resources for holiday tree lighting.

Mayor Nash closed the public hearing.

The City Council received clarification on historic data on reserve funds for neighboring cities, vacancy rates and full-time equivalents (FTEs), deficit numbers, expenditure reductions, library and community services (LCS) reductions, SRTS contract reduction, tree lights in Santa Cruz Avenue medians, holiday tree lighting and event, reduced/suspended discretionary programs/projects and revenue increase with newly adopted master fee schedule.

The City Council discussed pool maintenance cost responsibility, utilizing the Friends of Library and Library Foundation, weed removal and maintenance, reduction in pool hours and funding, personnel and non-personnel reductions, reserve comparison with other/similar cities, the city’s bond rating and individual restrictive funds.

The City Council directed staff to proceed with:
• Reducing the SRTS (safe routes to school) consultant services provided by Alta • Continuing with the proposed LCS reductions while prioritizing staff • Reducing tree lights in Santa Cruz Avenue medians between University Drive and Doyle Drive • Reviewing whether holiday tree lighting event funds could cover the cost of tree lighting • Reducing general non-herbicide weed removal
• Reviewing post-summer pool hour reduction and gymnastics and child care fees • Reviewing personnel and non-personnel reductions to bridge the $1.8 million gap • Reviewing the freezing of vacant positions outside of core services • Reducing temporary employee hours
• Reducing overtime wherever possible
• Reviewing the Bayfront Mitigation Grant Fund restrictions and uses.

City Council Regular Meeting Minutes
June 9, 2026

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov ACTION: Motion and second (Nash/ Combs), to adopt a resolution approving budget amendments for fiscal year 2025-26, passed unanimously.

G3. Consider and adopt a resolution overruling protests, ordering the improvements, confirming the diagram/area of assessment and ordering the levy and collection of assessments for Landscaping Assessment District for fiscal year 2026-27 (Staff Report #26-094-CC) Management Analyst II Joanna Chen made the presentation (Attachment).

Mayor Nash opened the public hearing.

Mayor Nash closed the public hearing.

ACTION: Motion and second (Wise/ Schmidt), to adopt a resolution overruling protests, ordering improvements, confirming the diagram/area of assessment, and ordering the levy and collection of assessments for the Landscaping Assessment District, passed unanimously.

G4. Conduct a public hearing, rate protest hearing, and consider adoption of a resolution approving maximum increases in rates for the collection, processing, and disposal of waste, recycling, and compost materials for commercial, multi-family, and single-family customers (Staff Report #26-098-CC) – Continued from May 12, 2026 Public Works Internal Services Manager Eren Romero made the presentation (Attachment).

Mayor Nash opened the public hearing.
• Ezio Alviti spoke in opposition of the rate increase.

Mayor Nash closed the public hearing.

ACTION: Motion and second (Wise/ Nash), to adopt a resolution approving maximum increases in rates for the collection, processing, and disposal of waste, recycling, and compost materials for commercial, multi-family, and single-family customers effective July 1, 2026, with annual adjustments each July 1 for 2027, 2028, 2029, and 2030, passed 4-1 (Taylor dissenting).

G5. Conduct a public hearing, rate protest hearing, and consider adoption of a resolution approving maximum rate increases for Menlo Park Municipal Water, including pass-throughs of any increases in the costs of wholesale water from the San Francisco Public Utilities Commission, and establishing and setting water capacity charges (Staff Report #26-099-CC) – Continued from May 12, 2026
Public Works Internal Services Manager Eren Romero made the presentation (Attachment).

Mayor Nash opened the public hearing.
• Arlene Navaro spoke in opposition of the rate increase.

Mayor Nash closed the public hearing.

City Council Regular Meeting Minutes
June 9, 2026

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov ACTION: Motion and second (Combs/ Nash), to adopt a resolution approving maximum increases in rate increases for Menlo Park Municipal Water services effective July 1, 2026, with annual adjustments July 1, 2027 and 2028, including pass through of any increases in costs of the wholesale water from San Francisco Public Utilities Commission, and establishing and setting water capacity charges, passed 4-1 (Taylor dissenting).

H. Informational Items
H1. City Council agenda topics: June – July 2026 (Staff Report #26-100-CC) H2. Update on implementation of the zero emission landscape equipment ordinance (Staff Report #26-095-CC)
The City Council received clarification on enforcement methods.

The City Council directed staff to reduce staff workload through leading with an educational approach and to return to the City Council if approach is ineffective.

H3. Police department quarterly update / Q1 January – March 2026 (Staff Report #26-097-CC) (Informe de Personal #26-097-CC)
The City Council received clarification on the zero hate crimes during the quarter.

I. City Manager Report
None.

J. City Councilmember Reports
J1. Vice Mayor Wise report (Attachment)
Mayor Nash reported out on Peninsula Clean Energy (PCE) and Bay Area Water Supply and Conservation Agency (BAWSCA) meetings and the police department swearing in ceremony.

K. Adjournment
Mayor Nash adjourned the meeting at 10:11 p.m.

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

City Council Regular Meeting Minutes
June 9, 2026

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RECOGNIZING CALIFORNIA WATER'S CENTENNIAL
WHEREAS, in recognition and to honor a business that has demonstrated unwavering commitment to serving our community, the City of Menlo Park and contributing to the quality of life for our residents; and WHEREAS, California Water Service Group (Cal Water) was founded in 1926 and has served communities throughout California for one hundred years, providing safe, clean, reliable water to more than 2 million people throughout California; and
WHEREAS, Cal Water has been a trusted partner to the State of California since 1926, delivering essential water services guided by their promise to provide quality, service and value; and WHEREAS, the company has demonstrated exemplary stewardship through conservation programs and rebates that have helped customers reduce their water use by 30% between 2000 and 2020, supporting both environmental sustainability and household affordability; and WHEREAS, Cal Water has invested responsibly in infrastructure, sustainability initiatives and community wellbeing, undertaking proactive, ongoing maintenance and upgrades to deliver safe, clean drinking water and improve emergency readiness; and
WHEREAS, Cal Water has been recognized as one of "America's Most Responsible Companies" and "World's Most Trustworthy Companies" by Newsweek and as a Great Place to Work, reflecting the company's commitment to protecting the planet, caring for people and operating with the utmost integrity; and WHEREAS, through generations of employees and leadership, Cal Water has maintained its commitment to enhancing the quality of life for customers and communities, creating jobs, supporting the local economy and engaging with community organizations in our neighborhoods and throughout California; 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 recognize and celebrate the 100th anniversary of Cal Water.
~ r1o ,L- Be Nash, Mayor
June 9, 2026
AGENDA ITEM E-1
City Council Regular Meeting Minutes June 9, 2026 Page 6 of 93 r a atl
RECOGNIZING PRIDE MONTH - JUNE 2026
WHEREAS, every June Menlo Park joins the County of San Mateo and the greater Bay Area in observance of Pride Month, to honor the history of the Lesbian, Gay, Bisexual, Transgender, Queer, lntersex and Asexual (LGBTQIA+) liberation movement, and to support the rights of all residents to experience equality and freedom from discrimination; and WHEREAS, all human beings are born free and equal in dignity and rights and the City of Menlo Park is committed to supporting visibility, dignity and equality for LGBTQIA+ people in our diverse community, while also recognizing that LGBTQIA+ individuals have had an immeasurable impact to the cultural, civic and economic successes of our country; and
WHEREAS, while society at large increasingly supports LGBTQIA+ equality, it is essential to acknowledge that the need for education and awareness remains vital to end discrimination, prejudice and violence against the LGBTQIA+ community; and
WHEREAS, celebrating Pride Month influences awareness and provides support and advocacy for our local LGBTQIA+ community, and is an opportunity to take action and engage in dialogue to strengthen alliances, build acceptance and advance equal rights; and
WHEREAS, the rainbow flag, widely recognized as a symbol of pride and raised at City Hall for the month of June, and celebrates all LGBTQIA+ residents whose influential and lasting contributions to our neighborhoods make Menlo Park a vibrant community in which to live, work and visit; and WHEREAS, the theme for San Francisco Pride this year, "Resistance in Action," acknowledges the vital importance of community action, protest and education in response to attacks on the LGBTQIA+ community, especially trans people and queer people of color; 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 June 2026 as Pride Month in Menlo Park.

Je~~yor
June 9, 2026
AGENDA ITEM E-2
City Council Regular Meeting Minutes June 9, 2026 Page 7 of 93 r a
RECOGNIZING JUNETEENTH - JUNE 19, 2026
WHEREAS, during the Civil War, after the Union Army captured New Orleans in 1862, slave owners in Confederate states migrated to Texas with more than 150,000 enslaved Black persons, keeping them deprived of their freedom and basic dignity, even after President Abraham Lincoln issued the Emancipation Proclamation; and
WHEREAS, June 19, 1865 - nearly three years after President Lincoln declared all enslaved persons free - Major General Granger and Union Army troops marched to Galveston, Texas to enforce the Emancipation Proclamation and free the last enslaved Black Americans; and WHEREAS, those who were freed from bondage celebrated their long-overdue emancipation June 19, and today, our Nation commemorates Juneteenth as a chance to celebrate human freedom, reflect on the grievous and ongoing legacy of slavery and rededicate ourselves to rooting out the systemic racism that continues to plague our society as we strive to deliver the full promise of America to every American; and WHEREAS, Juneteenth, recognized as a federal holiday in 2021 and celebrated in the Black community for over 150 years, commemorates African American freedom, emphasizes education and achievement, symbolizes freedom, celebrates the abolishment of slavery and reminds all of the significant contributions of African Americans to our society; and
WHEREAS, this year, on Juneteenth, we recognize the power and resilience of Black Americans, who have endured generations of oppression in the ongoing journey toward equal justice, equal dignity, equal rights, and equal opportunity in America and pay tribute to those, then and now, who fought so long and worked so hard to make the dream of equality a reality; and
WHEREAS, the Juneteenth flag, raised at City Hall in the month of June, was created in 1977 by activist Ben Haith and the colors and symbols on the flag are representative of freedom and the end of slavery; and WHEREAS, on June 19, all are encouraged to join us at the Belle Haven Community Campus from 5- 8 p.m., to gather together, enjoy cultural entertainment, live music, family activities, delicious food and more, in celebration this important day; 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 June 19, 2026 as Juneteenth in Menlo Park.

BEi, (l. y Nash, Mayor
June 9, 2026
AGENDA ITEM E-3
City Council Regular Meeting Minutes June 9, 2026 Page 8 of 93 Chris Turner, Senior Planner
68 Willow Rd. vesting tentative
subdivision map
1 G1-PRESENTATION
City Council Regular Meeting Minutes June 9, 2026 Page 9 of 93 Project location
 Corner of Willow Road and
Willow Place
 C-1 zoning district Borders San Francisquito
Creek and Palo Alto
2 Project
Site
City Council Regular Meeting Minutes June 9, 2026 Page 10 of 93 Approved development
 Project approved by Planning
Commission May 4, 2026:
- Demolish existing office building- Construct 50 townhouse units and associated site improvements
- Below Market Rate (BMR) Housing
agreement
- Project was not appealed
 Recommended approval of
vesting tentative subdivision map
3 City Council Regular Meeting Minutes June 9, 2026 Page 11 of 93 Proposed project
 Vesting tentative
subdivision map
- Subdivide property into 50
condominium parcels and one common area parcel
- Would allow for sale of
individual units
4 Project
Site
City Council Regular Meeting Minutes June 9, 2026 Page 12 of 93 Recommendation
 Staff and the Planning Commission recommend the City
Council approve the vesting tentative subdivision map
5 City Council Regular Meeting Minutes June 9, 2026 Page 13 of 93 Fiscal Year 2026-27 budget
public hearing
June 9, 2026
G2-PRESENTATION
City Council Regular Meeting Minutes June 9, 2026 Page 14 of 93 Agenda
 Budget team Fiscal year 2025-26 budget update City Council priorities Proposed fiscal year 2026-27 budget Five-year General Fund forecast Capital Improvement Plan (CIP) City workforce vacancies, recruitment and retention trends Next steps City Council Regular Meeting Minutes June 9, 2026 Page 15 of 93 Budget team
 Stephen Stolte, Assistant City Manager Brittany Mello, Administrative Services Director Fenny Lei, Assistant Administrative Services Director Katie Lee, Interim Finance and Budget Manager Adrian Patino, Management Analyst II City Council Regular Meeting Minutes June 9, 2026 Page 16 of 93 Budget contributors
 General Administration
- Nicole Casados, Judi Herren
 Administrative Services
- Anna Peluffo, Danny Daniels
 Community Development
- Deanna Chow, Vanh Malathong, Adam Patterson, Kyle Perata, Tim Wong  Library and Community Services
- Nick Szegda, Rani Singh
 Police
- David Norris, Dani O’Connor
 Public Works
- Azalea Mitch, Eren Romero, Joanna Chen
City Council Regular Meeting Minutes June 9, 2026 Page 17 of 93 Economic overview
City Council Regular Meeting Minutes June 9, 2026 Page 18 of 93 Economic overview
 Continuing conflict in the Middle East
leading to higher energy prices and inflation
 Real GDP growth slowed sharply Declining Consumer Confidence Index and Expectation Index
 Comparatively weaker labor market in
the state with higher than national unemployment rate
 Potential state and federal funding
reductions
 Recession risk

3.6%

3.3%

1.9%
-0.6%

3.8%

4.4%

1.4% 1.6%
-1.0%

0.0%1.0%2.0%3.0%4.0%5.0%
Q2' 24 Q3' 24 Q4' 24 Q1' 25 Q2' 25 Q3' 25 Q4' 25 Q1' 26 Annualized % Change
National Real Gross Domestic Product (GDP)

4.3%

5.3%

3.3%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
United States
California
San Mateo County
Regional Unemployment as of April 2026
City Council Regular Meeting Minutes June 9, 2026 Page 19 of 93 Fiscal year 2025-26
General Fund budget
update
City Council Regular Meeting Minutes June 9, 2026 Page 20 of 93 Fiscal year 2025-26 General Fund
year-end projection Fiscal year 2025-26 is projected to have a deficit of approximately $2-2.6 million
- Projected revenues of $85 million, while projected expenditures of $87 million, resulting in an estimated $2 million shortfall. - The deficit will be offset with use of reserve in the unassigned fund balance, resulting in projected ending unassigned fund balance of 3.2 million - Projections remain in flux pending year-end closure and will be updated
 Year-end process and accruals will be completed by midSeptember City Council Regular Meeting Minutes June 9, 2026 Page 21 of 93 City Council priorities
City Council Regular Meeting Minutes June 9, 2026 Page 22 of 93 City Council priorities
During the annual priority-setting workshop March 21, the City Council identified the following priorities: Climate action - mitigation, adaptation and resilience - Reducing greenhouse gas emissions through community wide electrification program, EV charging at municipal parking lots, and more
- Advancing Environmental Justice Element priorities- Supporting the Environmental Quality Commission  Downtown vibrancy
- Providing support to businesses in locating in Menlo Park, permitting processes, and more- Addressing maintenance issues downtown- Planning for resurfacing of parking plazas 7 and 8 - Managing process for potential development of parking plazas 1, 2, and 3  Public safety (New*)
- Providing high quality safety for the entire public- Addressing staffing vacancies and assess workload- Advancing technology governance, accountability and transparency City Council Regular Meeting Minutes June 9, 2026 Page 23 of 93 City Council priorities
 Housing
- Implementing the 2023-2031 Housing Element- Enacting anti-displacement strategies- Preparing a nexus and feasibility study to update the Below Market Rate (BMR) Program - Supporting the Housing Commission
 Safe routes
- Continuing enforcement and education efforts in collaboration with Menlo Park schools, school resource officer, Safe Routes to Schools program, and traffic enforcement unit - Improving roadways with a focus on incorporating safety upgrades- Delivering on the Vision Zero Action Plan and transportation capital improvement projects with a focus on connected, multimodal networks
- Supporting the Complete Streets Commission
City Council Regular Meeting Minutes June 9, 2026 Page 24 of 93 Proposed fiscal year
2026-27 budget
City Council Regular Meeting Minutes June 9, 2026 Page 25 of 93 Proposed fiscal year 2026-27 budget
Fund Types DescriptionGeneral Fund City’s primary operating fund, reserve policy, unrestricted revenue sourcesSpecial Revenue Funds Revenues restricted to a specific purposeCapital Project Funds Revenues restricted to acquire or construct capital facilities Revenues from charges to users for services provided; similar to a private business Enterprise FundsTracks goods or services provided to other departments for reimbursement and allocates overhead and shared items. Internal Service Funds Debt Service Funds Revenues collected to pay for debt paymentsFiduciary Fund City acts as fiduciary on behalf of other  Proposed budget includes revenues and expenditures across all funds
City Council Regular Meeting Minutes June 9, 2026 Page 26 of 93 Proposed fiscal year 2026-27 budget
 The City has over 50 funds with a proposed expenditure budget of $151.5 million, not including CIP carryforward budget (prior unspent City Council budget appropriations) - General Fund: $90.5 million, all other funds: $61 million- Capital Improvement Program (CIP): $13 million new funding, approximately $60 million carryforward funding
 The proposed fiscal year 2026-27 budget includes General Fund expenditures of $90.5 million and revenues of $88 million, with a deficit of $2.5 million, balanced with use of reserve  Three additional items (AFSCME MOU, BCJPIA insurance premium adjustment and downtown development financial feasibility study), total $0.3 million City Council Regular Meeting Minutes June 9, 2026 Page 27 of 93 Fiscal year 2026-27 operating budget:
revenueThe proposed budget anticipates revenues of $88 million compared to $82 million in the fiscal year 2025-26 amended budgetKey revenue assumptions: Total Property Taxes of $37 million - Property Tax in Lieu of Vehicle License Fee (VLF) backfill revised to 0  Transient Occupancy Tax (TOT): $18.4 million
- Increase of $2.2 million from the prior fiscal year partly driven by higher tax rate from success of Measure CC in November 2024
 Sales Tax: $7.2 million
- Growth of 11% from the prior fiscal year due to adjustment in projection City Council Regular Meeting Minutes June 9, 2026 Page 28 of 93 Fiscal year 2026-27 operating budget:
expenditureThe proposed General Fund budget anticipates expenditures of $90.5 million compared to $84.6 million in the fiscal year 2025-26 amended budgetKey expenditure assumptions: Personnel - 297 full-time equivalent positions (FTEs)- General Fund supports an estimated 83% of City staff- Vacancy and turnover rate of 10%  Transfer to General Capital Improvement Fund decreased to $3.9 million as directed by City Council following May 12 study session  Transfer to vehicle replacement fund of $1.8 million
City Council Regular Meeting Minutes June 9, 2026 Page 29 of 93 General Fund revenue
and expenditure trends
City Council Regular Meeting Minutes June 9, 2026 Page 30 of 93 General Fund revenue trends
$0
$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000 $100,000,000
2022-23 (Actuals) 2023-24 (Actuals) 2024-25 (Actuals) 2025-26 Amended Budget
2026-27 Proposed
Budget
OtherUtility Users TaxBusiness LicensesPermitsSales TaxCharges for ServicesTransient Occupancy TaxProperty Taxes Other: Fines and Forfeitures, Franchise Fees, Use of Money & Property, Intergovernmental City Council Regular Meeting Minutes June 9, 2026 Page 31 of 93 General Fund expenditure trends
$0
$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000 $100,000,000
2022-23 (Actuals) 2023-24 (Actuals) 2024-25 (Actuals) 2025-26 Amended Budget
2026-27 Proposed
Budget
OtherTransfersOperating ExpensesServicesPersonnel
Other: Utilities, Repairs & Maintenance, Special Projects City Council Regular Meeting Minutes June 9, 2026 Page 32 of 93 General Fund
five-year forecast
City Council Regular Meeting Minutes June 9, 2026 Page 33 of 93 Background
 Five-year forecast provides financial outlook of revenues and expenditures for the General Fund
 Serves as a planning tool to support long-range decisionmaking Based upon current policies, economic trends and known future obligations
 Developed with input from a variety of sources, including the subject matter experts and consultants
City Council Regular Meeting Minutes June 9, 2026 Page 34 of 93 Revenue assumptions
 Property taxes: average annual growth of 4.5% Transient Occupancy Tax (TOT): 15.5% tax rate effective Jan. 1 - Does not consider planned addition of Hotel Moxy; estimated $1.9 million additional revenue beginning 2027-28
 Sales tax: average annual growth of 3% Licenses and permits: increased to reflect new Master Fee Schedule in 2026-27; average annual growth of 3% thereafter
 $1 million annual transfer from Developer Special Revenue fund through fiscal year 2028-29
- Used for Belle Haven Community Campus (BHCC) operations  Grant revenues reduced to reflect current funding levels City Council Regular Meeting Minutes June 9, 2026 Page 35 of 93 Expenditure assumptions
 Salaries and wages forecast using annual growth of 3% - Includes vacancy and turnover rate assumption of 10%, decreasing 2% annually until stabilizes at 6%
 Non-retirement benefits: average annual growth of 3%
- Health insurance premiums grow 6% annually
 Retirement benefits and unfunded actuarial liability (UAL) payment forecast using most recent CalPERS actuarial data  Services and operating expenses: annual growth of 3% Transfer to the General CIP Fund for capital projects of $3.9 million in 2026-27; remains flat in out years
City Council Regular Meeting Minutes June 9, 2026 Page 36 of 93 Operating surplus/(deficit)
80 85 90 95
100 105 110
FY26-27 Proposed FY27-28 Forecast FY28-29 Forecast FY29-30 Forecast FY30-31 Forecast Millions
Revenue v Expenditure
Total Revenues Total Expenditure
Average structural deficit of $4.4 million annually
City Council Regular Meeting Minutes June 9, 2026 Page 37 of 93 General Fund reserve impact
29 24
19 13
9 -
5 10 15 20 25 30
FY26-27 Proposed FY27-28 Forecast FY28-29 Forecast FY29-30 Forecast FY30-31 Forecast Millions
Total reserve no longer meets GFOA recommended minimumof two months’ operating expenses Unassigned reserve fully depleted
Emergency contingency reserve fully depleted
City Council Regular Meeting Minutes June 9, 2026 Page 38 of 93 Fiscal year 2026-27 Operating budget:
reserves Projected reserve levels
- Strategic pension: $0.66 million- Emergency Contingency Reserve: $10.4 million at 11% (does not meet policy minimum 15%)
- Economic Stabilization Reserve: $13.9 million at 15% (does not meet policy minimum 20%)
City Council Regular Meeting Minutes June 9, 2026 Page 39 of 93 Reserve comparison
General Fund reserve as % of operating expenditure
FY 2024-25 General Fund operating expenditure (millions) General Fund reserve* as of June 30, 2025 (millions)
City
Foster City $71.1 $62.4 114%
Belmont $31.6 $29.1 109%
East Palo Alto $33.9 $33.2 102%
San Bruno $53.4 $65.5 82%
Burlingame** $54.5 $95.9 57%South San Francisco $92.4 $162.9 57%San Mateo $106.9 $189.8 56% Menlo Park $31.3 $84.1 37%
*Only includes reserves related to pension, economic stabilization, emergency contingency and unassigned. **Burlingame is the closest benchmark based on budget size City Council Regular Meeting Minutes June 9, 2026 Page 40 of 93 Revenue generation and cost recovery
 Staff plans to further study and present revenue enhancement options for City Council consideration in the fall
- Half cent sales tax- Business license tax modernization- Reauthorization and modernization of UUT- Other revenue measures focused on capital project funding  Staff also plans to bring back updated user fee cost recovery policy in the fall
City Council Regular Meeting Minutes June 9, 2026 Page 41 of 93 Department expenditure reductions
Targeted reductions of $0.7 million incorporated by departments: Delayed technology hardware replacement cycles and transition from proactive to reactive replacement
 Reduced department supplies, contracts  Placed community funding program on hold Reduced training, conferences and memberships Shifted costs to alternative funding sources whenever possible City Council Regular Meeting Minutes June 9, 2026 Page 42 of 93 Vehicle license fee
 On June 11, printed State budget will be available for review Any inclusion of VLF backfill would likely be one-time funding since department of finance is not currently open to long term legislative fix - With 2/3 VLF backfill of $1.9 million, deficit for fiscal year 2026-27 will be reduced to approximately $0.9 million
- With 1/2 VLF backfill of $1.4 million, deficit for fiscal year 2026-27 will be reduced to approximately $1.4 million
City Council Regular Meeting Minutes June 9, 2026 Page 43 of 93 Review potential service level reductions
Seeking City Council direction on: Reviewing potential service level reductions and identifying those to move forward
- Selected reductions will be incorporated into the budget presented for adoption June 23
 Establishing target deficit to be achieved through these measures
City Council Regular Meeting Minutes June 9, 2026 Page 44 of 93 Potential service level reductions
Department Service Proposed Change
Reductions to library program offerings, (169,255)small reductions of materials and contract services Library and Community Services
Reductions to contract services for indoor (104,400)recreation programs, small reductions to materials, staffing efficiencies Library and Community Services
City Council Regular Meeting Minutes June 9, 2026 Page 45 of 93 Potential service level reductions
Department Service Proposed Change
The Safe Routes to School reduction reflects ($105,000)a decrease in consultant services provided by Alta equivalent to a half-time position Public Works
Eliminate the contract for maintaining the ($43,000)existing tree lights in the Santa Cruz Avenue medians between University Drive and Doyle Drive. Existing lights would remain in place and operational but not maintained. Failed lights would no longer be repaired or replaced.

Public Works
Fremont Park and Belle Haven Community ($70,000)Center Tree lighting Public WorksPublic Works General non-herbicide weed removal ($91,600) Landscape median and right of way ($69,800)maintenance
Public WorksPublic Works Mechanical non-herbicide weed removal ($50,000) Total ($703,055)
City Council Regular Meeting Minutes June 9, 2026 Page 46 of 93 Department budgets
City Council Regular Meeting Minutes June 9, 2026 Page 47 of 93 Fiscal year 2026-27 General Fund:
department budgets
General fund
FTEs
Expenditures
(millions)
Revenues
(millions) Department
Police $1.2 $29.2 73.00Public Works $1.8 $19.2 45.94Library and Community Services $6.1 $17.9 55.25 Community Development $6.9 $11.0 32.50
General Administration $0.05 $7.1 18.36
Administrative Services $0 $5.7 18.22Non-Departmental* $72.0 $0.5 0.00Total $88.0 $90.5 243.27 *Non-Departmental includes items not attributable to a specific department. Revenues include taxes, franchise fees, business licenses, and investment income. Expenditures include the vacancy and turnover factor, operating factor, and transfers to other funds.

City Council Regular Meeting Minutes June 9, 2026 Page 48 of 93 Capital improvement
program
City Council Regular Meeting Minutes June 9, 2026 Page 49 of 93 Capital improvement program (CIP)
 City buildings and systems
- City buildings minor
 Environment Parks and Recreation
- Aquatic center maintenance- Parks improvement minor- Sport field renovations - Sport court maintenance  Stormwater
 Streets and sidewalks
- Street resurfacing
 Transportation
- Traffic signal modifications- Transportation projects  Water
- Water main replacement- Water system improvements
Seven project categories and ongoing programs:

City Council Regular Meeting Minutes June 9, 2026 Page 50 of 93 Funding the CIP
 General Fund
- Decreased transfer from $4.9
million to $3.9 million
 Water Enterprise Fund Grants Special Revenue Funds
- Highway Users Tax (Gas Tax)- Road Maintenance and
Rehabilitation (SB1)
- Transportation Impact Fees- Construction Impact Fee- Landfill Post-Closure- Recreation In-Lieu - Downtown Public Amenity Fund - In-lieu Payment for Community Amenities
- Heritage Tree in-lieu fee- Landscape/Tree Assessment and Sidewalk Assessment Districts
- Downtown Parking Permits - Measure T
• Recreation general obligation (GO)
bonds
- Measure A & Measure W
• San Mateo County ½ cent sales tax
for transit and traffic congestion relief projects
City Council Regular Meeting Minutes June 9, 2026 Page 51 of 93 Funding the CIP
Summary of capital project requests for fiscal year 2026-27 by category Percent funded
by General
CIP
Amount of
General CIP
Fund requests
Percent
of total
requests
Funding
requested
Category
$1,070,000 8% $800,000 26% City buildings and systems
Environment $0 0% $0 0%
Parks and recreation $1,320,000 10% $500,000 16%
Stormwater $1,520,000 12% $1,520,000 49%
Streets and sidewalks $4,310,000 33% $0 0%
Traffic and transportation $1,285,000 10% $275,000 9%
Water $3,500,000 27% $0 0%
Total $13,005,000 100% $3,095,000 100%
City Council Regular Meeting Minutes June 9, 2026 Page 52 of 93 Vacancies, recruitment and
retention trends
City Council Regular Meeting Minutes June 9, 2026 Page 53 of 93 AB 2561 overview
 Assembly Bill (AB) 2561 requires public agencies to:
- Present the status of vacancies and recruitment and retention efforts during a public hearing at least once per fiscal year, before the annual budget is adopted
- Identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process  Additional reporting requirements apply if the vacancy rate meets or exceeds 20% in a bargaining unit
 Labor groups entitled to make a presentation
City Council Regular Meeting Minutes June 9, 2026 Page 54 of 93 Vacancy rates by Labor Group
Vacancy rate Vacant FTEs Budgeted FTEs Employee group
SEIU 152.25 15.75 10.34%AFSCME 57.75 6.5 11.26%POA 35
6 17.14%
PSA
9 0 0%
Confidential (Unrepresented)
9 1 11.11%
Management (Unrepresented) 29
3 10.34%
City Council
5 0 0%
Total vacancies 297 32.25 10.86%
*Vacancy data is as of the last pay period in May (May 18, 2026) City Council Regular Meeting Minutes June 9, 2026 Page 55 of 93 Vacancy Rates by Department
Vacancy rate Vacant FTEs Budgeted FTEs Department
Administrative Services 29.48
0 0%
Community Development 34 7.5 22.06%General Administration 14 3 21.43%
Library and Community Services 68.25 2.75 4.03%Police 73 9 12.33%
Public Works 73.27 10 13.65%
Total vacancies 297 32.25 10.86%
*Vacancy data is as of the last pay period in May (May 18, 2026) City Council Regular Meeting Minutes June 9, 2026 Page 56 of 93 Human Resources
 6 budgeted FTEs and 1
temporary employee
 Currently, 2.0 FTEs focused
on recruitment efforts
City Council Regular Meeting Minutes June 9, 2026 Page 57 of 93 Recruitment and retention trends
 For the period of May 1, 2025 – April 30, 2026:
- 33 total FTE recruitments- Employee Turnover Rate: 8.08%- Employee Retention Rate: 91.78%- The average tenure of employees is 8.30 years; the median tenure is 5 years
 Additional information in the staff report and Attachment F Methodology TotalNew hires 33Promotions
5 Advancements in a flexibly-staffed job series
3 Total positions filled 41
City Council Regular Meeting Minutes June 9, 2026 Page 58 of 93 Planned and ongoing recruitment and
retention efforts Hiring incentives for lateral police officers and police academy graduates
 Conducting a citywide employee engagement survey and focus groups
 Developing new/revised classifications to meet evolving operational needs
 Conducting a citywide classification and compensation study Collaboration with City departments and external community partners to attend career and resource fairs
City Council Regular Meeting Minutes June 9, 2026 Page 59 of 93 Next steps
City Council Regular Meeting Minutes June 9, 2026 Page 60 of 93 City Council direction
 Staff requests direction from the City Council:
- Provide direction on budget strategies and/or service level reductions to incorporate into the fiscal year 2026-27 budget for adoption June 23 - Adopt resolution approving budget amendments for fiscal year 2025-26
 Consider information related to vacancies, recruitment and retention trends in compliance with AB 2561
 Proposed budget available online: menlopark.gov/budget June 23 City Council meeting agenda items:
- Adopt the fiscal year 2026-27 budget that incorporates any direction provided this evening
City Council Regular Meeting Minutes June 9, 2026 Page 61 of 93 Questions
City Council Regular Meeting Minutes June 9, 2026 Page 62 of 93 1 Landscaping Assessment
District
Joanna Chen, Management Analyst II
G3-PRESENTATION
City Council Regular Meeting Minutes June 9, 2026 Page 63 of 93 Agenda
 Background Services provided Fee proposal Recommendation 2 City Council Regular Meeting Minutes June 9, 2026 Page 64 of 93 Background
 1982: Voters approved Measure N to form the Landscaping Assessment District (District)
 1983: City established the District to provide proper street tree maintenance
 1990: City added an assessment for the repair and
maintenance of sidewalk, curb, gutter, and parking strips damaged by city tree roots  1998: Voters approved a ballot measure to increase the District fees
3 City Council Regular Meeting Minutes June 9, 2026 Page 65 of 93 Services provided
 City street tree maintenance
- Routine maintenance every five years- Inspections, trimming, planting, debris removal, and removal requests
- Funding: District and General Fund
 Sidewalk, curb, gutter, and parking strip
repair and replacement program
- Public right-of-way sidewalks damaged by
city trees
- Funding: District and Highway Users Tax
Fund
4 City Council Regular Meeting Minutes June 9, 2026 Page 66 of 93 Fiscal year 26-27 fee proposal
 The amount increase per single family equivalent accounts for:
- Additional tree care services to address pests and diseases- Increase in agreement costs for tree maintenance, debris removal, and sidewalk repair/replacements
- Rising construction costs = fewer sidewalk locations repaired  Annual action is required by the City to continue the collection of assessments
5 Fiscal year 26-27
rate Increase Fiscal year 25-26 rate Assessment
Tree $96.94 $7.74 (8%) $104.68Sidewalk $57.82 $4.62 (8%) $62.44 City Council Regular Meeting Minutes June 9, 2026 Page 67 of 93

RECOMMENDATION
Consider adoption of a resolution Overruling protests, ordering improvements, confirming the diagram/area of assessment, and ordering the levy and collection of assessments for fiscal year 2026-27 6 City Council Regular Meeting Minutes June 9, 2026 Page 68 of 93

THANK YOU
7 City Council Regular Meeting Minutes June 9, 2026 Page 69 of 93 1 Eren Romero, Internal Services Manager
Public Hearing of Solid Waste Rate
Increases for July 1, 2026 – June 30, 2031
G4-PRESENTATION
City Council Regular Meeting Minutes June 9, 2026 Page 70 of 93 AGENDA
 Background Rate study and proposed rates Rate assistance program Protests Recommendation  Next steps 2 City Council Regular Meeting Minutes June 9, 2026 Page 71 of 93

BACKGROUND
 Feb. 24 Staff presented an informational item to update the City Council on the Solid Waste 5-Year Rate Study.
 March 10 Staff recommended solid waste rate increases for the next five fiscal years. March 16 Proposition 218 notices were mailed out. Due to errors, however, the notices had to be mailed out again which required rescheduling of thepublic hearing.  May 12 Staff recommended that the City Council open the public hearing, receive and consider comments as part of the public record, take no finalaction on the proposed solid waste rates, and continue the public hearing toJune 9. 3 City Council Regular Meeting Minutes June 9, 2026 Page 72 of 93

RATE STUDY
4  Strategy to fund on-going operations
- Solid waste collection- Management of landfill at Bedwell Bayfront Park  Based on a cost-of-service analysis that meets Prop. 218 requirements - Rate revenue does not exceed the cost required to provide the service  Recommended the revenue needed for operations and rate stability Recommended the rates for next five years City Council Regular Meeting Minutes June 9, 2026 Page 73 of 93

PROPOSED RATES
 Single-family (1-4 units) bundled rates
- 6% increases effective annually July 1, 2026 – 2030- Averaging an additional $3 to $4 per month- 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% 5 City Council Regular Meeting Minutes June 9, 2026 Page 74 of 93

RATE ASSISTANCE PROGRAM
 On Dec. 8, 2020, the City Council approved a rate assistance pilot program to provide discounts to qualified households.
- 50% on the monthly fixed meter charge for Menlo Park Municipal Water customers
- 20% monthly discount for Recology customers - Funded by the General Fund and renewed by City Council annually  This fiscal year
- Budgeted $15,000
- Provided $10,345 in discounts for 99 households- Eligible households – 30% Area Median Income 6 City Council Regular Meeting Minutes June 9, 2026 Page 75 of 93

PROTESTS
 Written protests may be submitted up to the close of the public hearing.
 After the City Council closes the public hearing:
- The City Clerk will provide a final number of protests received. - If the number of protests received is more than 50% of the total parcels served (10,398), there would be a “majority protest.” - The City would not be authorized to approve the proposed rates under Prop. 218, if there was a “majority protest.”
7 City Council Regular Meeting Minutes June 9, 2026 Page 76 of 93

RECOMMENDATION
Consider adoption of a resolution:  Approving maximum increases in rates for the collection, processing, and disposal of waste, recycling, and compost materials for all customers effective July 1, 2026, with annual adjustments each July 1 for 2027, 2028, 2029 and 2030 8 City Council Regular Meeting Minutes June 9, 2026 Page 77 of 93

NEXT STEPS
 Receive protests and close the public hearing.  Receive City Council direction.  With rates approved:
- Staff would update the solid waste rates webpage and work with Recology on updating rates.
- New rates become effective and then adjust annually for the next five fiscal years July 1.
9 City Council Regular Meeting Minutes June 9, 2026 Page 78 of 93 Thank you
10 City Council Regular Meeting Minutes June 9, 2026 Page 79 of 93 1 Public Hearing of Menlo Park Municipal
Water rate increases for July 1, 2026 –
June 30, 2029
Eren Romero, Internal Services Manager
G5-PRESENTATION
City Council Regular Meeting Minutes June 9, 2026 Page 80 of 93 AGENDA
 Background Rate study and proposed rates Rate assistance program Protests and objections Recommendation  Next steps 2 City Council Regular Meeting Minutes June 9, 2026 Page 81 of 93

BACKGROUND
 Feb 24 Staff presented an informational item to update the City Council on the Water Rate Study.
 March 10 Staff recommended water rate increases for the next three fiscal years. March 16 Proposition 218 notices were mailed out. Due to errors, however, the notices had to be mailed out again which required rescheduling of thepublic hearing.  May 12 Staff recommended that the City Council open the public hearing, receive and consider comments as part of the public record, take no finalaction on the proposed water rates and continue the public hearing toJune 9.  May 25 Water rate objection deadline.
3 City Council Regular Meeting Minutes June 9, 2026 Page 82 of 93

RATE STUDY
4  Strategy to fund on-going operations and planned capital expenditures Based on a cost-of-service analysis that meets Prop. 218 requirements - Rate revenue does not exceed the cost required to provide the service  Recommended the revenue needed for operations and capital needs Recommended the rates and water capacity charges for next three years City Council Regular Meeting Minutes June 9, 2026 Page 83 of 93

PROPOSED REVENUE OPTION
 Lowest revenue increase to customers, allows for long-term debt financing to support the capital program and meets cost obligations. 5 Fiscal year Result/Impact Revenue increase Option
 Lowest rate impact to
customers
 Debt financing of
$16M by 2029
 Meets cost
obligations

4.25% 2026-27 & 2027-28
Uniform rates and
capital improvement
plan 2028-29 4.5%
City Council Regular Meeting Minutes June 9, 2026 Page 84 of 93

PROPOSED RATES
 Uniform rates Estimated monthly bill total and annual rate increase for a single-family home.
6 Proposed water rates for 5/8” meter
Approximate % increase per year
Fiscal year Total amount billed for 10 ccfs
2026-27 $150.64 15.5%
2027-28 $157.04 4.2%
2028-29 $164.11 4.5%
ER1
City Council Regular Meeting Minutes June 9, 2026 Page 85 of 93 Slide 6
ER1 [@Natalie A. Bonham]is this right?
Eren Romero, 2026-06-04T23:52:14.153
NB1 0 [@Eren Romero] These are the same amounts that we have used the March 10th PP and based on the rate model they are correct. These do not include SFPUC passthroughNatalie A. Bonham, 2026-06-05T06:44:01.483 City Council Regular Meeting Minutes June 9, 2026 Page 86 of 93

RATE COMPARISON OF BAWSCA AGENCIES
10 CCF, 5/8” METER
7 $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 June 9, 2026 Page 87 of 93

CAPACITY FEES
 One-time development fees for new connections Fees fund the costs of existing and future water system facilities for new development
 Not subject to Prop. 218 requirements Proposed to increase by approximately 17% 8 City Council Regular Meeting Minutes June 9, 2026 Page 88 of 93

RATE ASSISTANCE PROGRAM
 On Dec. 8, 2020, the City Council approved a rate assistance pilot program
- 50% on the monthly fixed meter charge for Menlo Park Municipal Water customers
- 20% monthly discount for Recology customers - Funded by the General Fund and renewed by City Council annually  This fiscal year
- Budgeted $12,000- Provided $10,043 in discounts to 84 households- Eligible households – 30% Area Median Income 9 City Council Regular Meeting Minutes June 9, 2026 Page 89 of 93

OBJECTIONS AND PROTESTS
 The City received zero (0) objections.  Written protests may be submitted up to the close of the public hearing.
 After the City Council closes the public hearing:
- The City Clerk will provide a final number of protests received.- If the number of protests received is more than 50% of the total parcels served (4,250), there would be a “majority protest.” - The City would not be authorized to approve the proposed rates under Prop. 218, if there was a “majority protest.”
10 City Council Regular Meeting Minutes June 9, 2026 Page 90 of 93

RECOMMENDATION
Consider adoption of a resolution:
- Approving maximum increases in rates for Menlo Park
Municipal Water services effective July 1, 2026, with annual adjustments each July 1 for 2027 and 2028; - Approving pass through of any increases in costs of the wholesale water from San Francisco Public Utilities Commission (SFPUC); and - Establishing and setting water capacity charges.
11 City Council Regular Meeting Minutes June 9, 2026 Page 91 of 93

NEXT STEPS
 Receive protests and close the public hearing.  Receive City Council direction.  With rates approved:
- Staff would update the water rates webpage and work with utility biller to include information on monthly water bill statements. - New rates become effective and then adjust annually for the next three fiscal years on July 1.
12 City Council Regular Meeting Minutes June 9, 2026 Page 92 of 93

THANK YOU
13 City Council Regular Meeting Minutes June 9, 2026 Page 93 of 93