The revised estimates for General Fund revenues are projected to be $53.6 million or $0.5 million (0.9%) higher than the Adopted Budget of $53.1 million. The following Table 1 demonstrates General Fund revenues for the FY 2024-25 actuals, FY 2025-26 adopted budget, and mid-year revised FY 2025-26 budget projections:
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Table 1 - General Fund Revenue Detail
FY 2025-26 Mid-Year Budget
FY 2025-26 General Fund Revenues Adjustments for Council Approval The following revenues are projected to reflect changes over the FY 2025-26 Adopted Budget and recommended for budget adjustment, this includes two department revenue amendment requests, more detail on those are included within Attachment 2:
• Property Tax is the City’s largest revenue source at 34% of operating revenues less transfers. Property Tax is showing an increase of $261,970 or 1.5% due to new projections from HdL. As part of forecasting services, HdL analyzes property valuation changes, including any appeals or pending litigation and settlements that may affect property tax distributions. The revised projection reflects updated valuation data and expected adjustments to the tax roll, resulting in a modest increase to the City’s anticipated property tax revenues for the fiscal year.
• Sales Tax and Measure Y Sales Tax is the City’s second-largest revenue source, there is an approximately two-months lag of when the City receives Sales Tax revenues from the State. A decrease to Sales Tax of $116,000, or -3.6%, was based on the current year’s activity and the most recent projections from HdL, the City’s sales tax advisor.
The local sales tax is showing decreases in seven out of the ten business types compared to the prior year, with the largest percentage decreases occurring in the Cannabis related types based on year-to-date revenue trends. However, we did factor in an increase to Measure Y of $54,900 due to new projections from HdL indicating adjustments to the County pool allocation. Measure Y also had better returns with growth in ecommerce and new car purchases by locals supporting gains. • Transient Occupancy Tax has an increase of $626,221 or 26.6% for projected actuals with the mid-year review, largely due to STR Tax catchup payments from previous cycles. TOT for hotels also showed favorable increases. STR amounts for the current cycle are trending closer to the projected decrease incorporated with the ordinance change.
• Franchise Tax is reduced $181,110 or -13.4% due to correcting the Recology payments to match the agreed upon terms, they remain flat each year with no increase. • Utility Users Tax has increased $776,762 or 27.1% due to updated projections based on actuals, gas and electric rate increases across varying tiers and customer types.
This revenue source does experience some refund or exemption requests, which can change from year to year.
• Vehicle License Fee is reduced $771,845 or -14.3% due to the State withholding 1/3 of 9 Packet Pg. 214
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the backfill owed to the City. During the budget process, Council approved Budget Strategy #2, that earmarked fund balance reserves in case the VLF backfill was not received. The City has joined the County, and other Cities in the County to sue the State for the withheld funds.
• Cannabis Tax is reduced $100,000 or -12.5%, based on receipts for each cannabis operator, cannabis is still trending down statewide as well. Currently, there is no active interest from potential operators in the remaining available cannabis use permits. • Intergovernmental is reduced by a net of $37,404 due to a reduction in Senior Services Old Americans Act funding of $106,300, partially offset by an increase due to the recently received Cannabis Grant of $68,896. PBR’s revenue reduction budget request form can be found in Attachment 2, they have submitted matching cost reductions in order to offset this revenue decrease.
• Investment Earnings is showing a slight increase of $17,000. Administrative Services - Finance has submitted a revenue enhancement budget request to reflect the anticipated net revenue increase from engaging an investment advisor to maximize the use of idle cash beyond current staff capacity. The additional revenue is expected to cover consultant fees of approximately $3,000 per month, resulting in ongoing revenue generation while enhancing the strong interest earnings experienced in recent years. • Charges for Services is showing a decrease of $76,700 due to projections based on actual STR permits processed. This downswing relates to the TOT-STR renewal process, and the fact that renewals went down in both coastal and non-coastal areas.
FY 2025-26 General Fund Expenditures
Expenditure projections were reviewed based on five categories: personnel costs, contractual services, materials & supplies, transfer out for operating, and transfer out for capital listed below.
Table 2 - General Fund Expenditure Detail
FY 2025-26 Mid-Year Budget
Previously Approved Changes to the FY 2025-26 Budget
At every Council meeting, staff brings agenda items for the Council's consideration and approval. Some of these items require amendments to the original budget. During the mid-year budget review process, Finance staff incorporate all previously approved budget amendments year-to-date into the FY 2025-26 Revised Budget. These previously approved adjustments, along with year-end purchase order carryforwards, increased the General Fund appropriation by $1.6 million; previously approved department amendments are listed in Attachment 1. 9 Packet Pg. 215
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Mid-year Amendments
During the mid-year budget review process, staff makes a number of minor cleanup changes and adjustments within the department's budgets. Money is moved from various individual line items with savings to other line items within a department budget. This is done when a line item may go over its original budget amount. These changes are considered routine as they have minimal effects on the overall budget and remain within the FY 2025-26 Council-approved funding level. Again, only the year-end estimates in expenditures categories in excess of the adopted budget by 5% and $25,000 in each cost center are being proposed for a mid-year budget adjustment.
Mid-year appropriation amendments net to an increase of $289,576. Combined with the previously approved amount of $1,695,673, brings the total General Fund revised expenditure and transfer total to $55.2 mil, which is a 2.7% increase over the adopted budget. Adopted budget estimates for salaries and benefits were updated to account for Council approved MOU changes and various benefits updates. All other changes are listed below in the mid-year adjustments section. There are three mid-year department budget requests in the General Fund. The department mid-year requests include:
• $81,947 in total for the Police Department. Reclassing a part-time evidence clerk into fulltime due to a recent resignation of staff, to which there was a failed recruitment for the current part-time vacancy, $33,947 (cost for the remaining four (4) months of the fiscal year), with on-going costs in future years. Additionally, a one-time cost of $48,000 for the replacement of evidence storage equipment to preserve the chain of custody and maintain compliance for evidence requiring cooling or freezing, thus preserving evidence integrity. • $87,008 to transfer in from the Facilities Reserve in order to cover emergency remediation done for the mold at the Police Station and the asbestos at the Pacifica Library. The Facilities Reserve has a current balance of $205,000.
• Reclassification of the limited term Economic Development and Housing Specialist into permanent, in order to support the Economic Development Workplan recently presented to Council. $0 effect to this current year as this position is currently budgeted and vacant, ongoing costs to future years.
Overall, FY 2025-26 General Fund operating expenditures and transfers are proposed to be amended with a net increase of $1,985,249, or 3.7% over the adopted budget. More details on the department requests can be found in the budget request forms located within Attachment 2.
Finance recommended amendments and department requests originating from the other NonGeneral Fund funds, that have an impact on the General Fund are denoted and summarized in the Other Funds list in Section 2.
2. Status of Non-General Fund Revenues and Expenditures in FY 2025-26 Revised Budget Non-General Funds include the following categories.
• Enterprise Funds, including Sewer Operating and Capital and Beach Parking funds • Special Revenue and Capital Funds, including Gas Tax and Street funds, Drainage, General Capital, Housing and Park in lieu funds, PB&R Roy Davies Trust fund, Tree Replacement, Disaster Accounting and others.
• Internal Service Funds, including Motor Pool Operating and Replacement funds, Dental 9 Packet Pg. 216
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Benefit funds, and Risk Management (Workers' Comp and General Liability) funds. • Debt Service Fund
Non-General Fund Other Funds FY 2025-26 Revenues and Transfers-In In the mid-year revised FY 2025-26 Budget, revenues totaled $38.9 million or 41.97% of the City's $92.5 million total revenue budget. The non-general fund revenues are projected to increase by a net of $833,671 or 2.2% as shown in Attachment 3.
The following non-General Fund revenues are projected to reflect material changes over the FY 2025-26 Adopted Budget and are recommended for budget adjustment:
Special Revenue and Capital Funds:
• Gas Tax (Fund 210) after review of funds received, Measure M is projected to decrease by $220,000 due to funding levels typically received by this revenue source. The County indicated that this funding source should remain relatively flat. Gas Tax fund will be further analyzed with preparation of the FY 2026-27 CIP budget. • Street Improvement (Fund 213) after review of funds received, the revenue estimate received from Recology was reduced by $63,790 to match the agreement, this fee remains flat and does not increase annually.
• Tree Replacement (Fund 229) the Tree Replacement fund is supported by donations and fees, however work over the previous two years has caused this fund to end in a negative balance at the end of FY 2024-25, and it requires contribution from the General Fund in the amount of $55,867 to ensure the fund does not remain negative.
Non-General Fund Other Funds FY 2025-26 Expenditures and Transfers-Out In the mid-year revised FY 2025-26 Budget, expenditures totaled $59.5 million, or 51.9% of the City's $114.7 million total expenditure budget. These expenditures are proposed to be amended by a net of $5.5 million or 10.0% over the adopted expenditures budget. This includes $3.5 million from previously approved by Council items (Attachment 1), and $2.0 million from department requests and finance review as summarized below.
Summary of previously approved items:
At every Council meeting, staff brings agenda items for the Council's consideration and approval. Some of these items require amendments to the original budget. During the mid-year budget review process, Finance staff incorporated all previously approved budget amendments year-to-date into the FY 2025-26 Revised Budget. These adjustments increased the Other Funds appropriation by $1.9 million as further described in Attachment 1, which contains the list of previously approved items with Council dates and resolution numbers; year-end purchase order carryforwards are included in the previously approved totals of Attachment 4, but not detailed. Adopted budget estimates for salaries and benefits were updated to account for Council approved MOU changes and known benefits updates, which impacted most funds. All other changes are listed below in the mid-year amendments section.
Mid-year amendments:
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• Supplemental Law Enforcement Services Fund (Fund 207): An additional $59,775 to fund the purchase of equipment with existing fund balance in order to support front-line law enforcement services.
• Gas Tax (Fund 210): An additional budget appropriation of $40,000 is needed to maintain traffic signals and streetlights.
• Street Improvement (Fund 213): An additional budget appropriation is requested in the amount of $38,570, for sidewalk shaving, ADA compliance, and repair flashing beacons in Manor Plaza.
• Wastewater (Fund 518):
o $150,000 for the Linda Mar Stormwater Pump (C0047) electrical wiring replacement, to be funded by the 2017 Bond funds.
o $89,900 transfer from P0040 - CCWRP Headworks Rehab project to the P0033 CCWRP Repair and Replace project, in order to replace the Sequencing Batch Reactor (SBR) mixing pump. Net zero effect.
o $85,000 transfer from project C0051Linda Mar Peralta Project to equipment maintenance in order to support procurement of a Spydercrane. Net zero effect. • Risk (Fund 667): A request of $20,000 for the installation of a security camera system at the Corporation Yard that houses important City assets such as vehicles and heavy machinery, following a recent attempted break-in, of which a police report has been filed.
• Motor Pool (Fund 672): Accounting entry needed to support the previously approved Council action for use of the 2017 Bond Revenue for eligible purchase of Wastewater maintenance vehicles in the amount of $992,814 from Fund 518. As well as a replacement of a PD vehicle totaled in a crash earlier this year in the amount of $42,780, and a truck bed and tool box replacement for an in-service vehicle $26,000, both funded by the General Fund.
Additional information on individual non-general fund mid-year budget requests are presented in Attachment 2.
Capital Improvement Program
There are no other adjustments to the Capital Budget, aside from the project transfers listed above. The Capital expenditures will be further reviewed by staff during the FY 2025-26 CIP Budget development process that is now being prepared by the Public Works Department.
3. Projected Fund Balance Structure
After incorporating all mid-year budget adjustments described in this report, the General Fund is projecting a $(1.5) million deficit. However, during the labor negotiations process, Council approved use of salary savings of up to 5% to help offset increases. After incorporating the Budget Strategy #2, using previously assigned fund balance for anticipated withholding of VLF funds by the State, only 2.0% of salary savings for the FY 2025-26 revised budget was needed. 9 Packet Pg. 218
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Table 3 - FY2025-26 REVISED BUDGET (MID-YEAR)
NET GENERAL FUND FY 2025-26 PROJECTED SURPLUS (DEFICIT) The FY 2025-26 revised budget amounts have been updated from the adopted budget figures following the independent audit of FY 2024-25. Under GASB 54, this balance consists of the following components: non-spendable items or portions of fund balance that cannot be liquidated, restricted amounts for use by outside agencies, committed amounts by Council action such as emergency/contingency reserves, and assigned balances to pay off unfunded liabilities and fund infrastructure improvements.
As shown in Table 4 below and Attachment 5, the mid-year budget review reflects restricted reserves and operating contingencies at $6.7 million, leaving an unassigned projected balance of $14.3 million. This unassigned amount represents 26% of the General Fund operating expenditures (excluding one-time and capital transfers). This is an increase of $4.1 million from the Adopted Budget, adjusted by the beginning fund balance.
The General Fund balance complies with the Government Finance Officers Association of the US and Canada (GFOA) recommendation for government entities to meet the minimum unassigned reserve recommendation of at least two months of operating expenditures ($9.2 million or 16.67%). This minimum reserve recommendation is being met before considering any additional assigned reserves previously set aside by Council policy, as listed in the table below. 9 Packet Pg. 219
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Table 4 - FY 2025-26 REVISED BUDGET (MID-YEAR)
GENERAL FUND (ASSIGNED & UNASSIGNED BALANCES)
A major contributing factor to the healthy unassigned fund balance is prudent fiscal management by the City Council and demonstrated financial discipline by the City Manager and all City Departments in keeping their operations within their limited budget means. This projected General Fund balance will be used as a starting point in preparation for the new FY 2025-26 Budget.
Staff will continue monitoring remaining fund balances and reevaluate strategies for future use of these funds as part of the FY 2026-27 budget development. Please refer to the attached summary schedule presented in Attachment 5 for additional information on the City's Revised FY 2025-26 projected fund balances across all funds.
The City of Pacifica prides itself on an open, inclusive, and comprehensive budget process.
This process traditionally takes place over the course of several months and involves several Council study sessions. The City Council will hold a Strategic Planning workshop on March 7, 2026, which will provide a critically important roadmap for the organization as it updates the framework for the City's short and long-term priorities and objectives. Subsequently, staff will translate the Council’s vision into the workplan for the upcoming year to be later reflected in the City Manager’s Recommended FY 2025-26 Budget that will be brought forward for the Council’s adoption in June 2026.
ALTERNATIVE ACTION:
The City Council is being asked to adopt a resolution amending the FY 2025-26 Budget. No reasonable alternative action is identified.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
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A balanced and structurally sustainable budget is consistent with all the City Council's goals.
FISCAL IMPACT:
As part of the FY 2025-26 mid-year review, General Fund revenues are amended to $53.65 million, an increase of $462,794 or 0.9%, and General Fund operating expenditures are amended to $55.2 million, a net increase of $1,985,249 or 3.7% over the FY 2025-26 Adopted budget.
As part of the FY 2025-26 mid-year review, the Other Funds revenues are amended to a combined total of $38.8 million, a 2.2% increase, and expenditures are amended to a combined total of $59.5 million, a 10.0% increase.
ORIGINATED BY:
Finance Department
ATTACHMENT LIST:
Attachment 1 - City Council Previously Approved Budget Amendment (PDF) Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (PDF) Attachment 3 - FY 2025-26 Summary of Revenues and Transfers In by Fund (PDF) Attachment 4 - FY 2025-26 Summary of Expenditures and Transfers Out by Fund (PDF) Attachment 5 - FY 2025-26 Fund Balance Summary by Fund (PDF) Attachment 6 - FY 2025-26 Service Enhancements Progress (PDF) 9 Packet Pg. 221
Pacifica City Council 11 March 09, 2026
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA ADOPTING THE FISCAL YEAR 2025-2026 MID-YEAR OPERATING AND CAPITAL BUDGET WHEREAS, the City Council adopted the FY 2025-26 Operating and Capital Budget on June 23, 2025; and
WHEREAS, the Adopted FY 2025-26 budget was a balanced expenditure plan that ensured the maintenance of adequate reserves; and
WHEREAS, City Staff has completed a mid-year budget review to validate budget assumptions and conduct an analysis of the year-to-date revenues and expenditures; and WHEREAS, the City Council has reviewed the Mid-Year Budget analysis and requested budget adjustments; and
WHEREAS, the table included herein summarizes the mid-year amendments needing Council approval; and
WHEREAS, the previously approved items and year-end carryforwards are reflected in the staff report and attachments; and
WHEREAS, the staff report and attachments provide further detail of mid-year analysis and department requests, including project and fund transfers; and WHEREAS, the City of Pacifica now desires to adopt the revised Fiscal Year 2025-26 Operating and Capital budget as shown in Attachment 5;
NOW, THEREFORE, THE CITY COUNCIL HEREBY RESOLVES: The City Council of the City of Pacifica hereby approves the mid-year adjustments to the FY 2025-26 budget.
The citywide revenues, transfers, and appropriations are amended as follows:
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• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 9
th day of March, 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney 9 Packet Pg. 223
Action Item Reso. No. Date Department GL Account
Revenues Expenses Transfers Net
General Fund (Fund 101)
Acceptance of Cannabis Tax Fund Grant 66-2025 8/11/2025 Police 101210-43207-G0058 (68,896) (68,896) Acceptance of Cannabis Tax Fund Grant 66-2025 8/11/2025 Police 101212-50100-G0058 22,128 22,128 Acceptance of Cannabis Tax Fund Grant 66-2025 8/11/2025 Police 101212-57001-G0058 46,768 46,768 $ (68,896) $ 68,896 $ - $ -
NPDES Stormwater (Fund 216)
San Pedro Creek TMDL 75-2025 8/25/2025 WWTP 216411-51206-00351 65,000 65,000 San Pedro Creek TMDL 75-2025 8/26/2025 WWTP 216412-51206-00351 ($65,000) (65,000) $ - $ - $ - $ -
Davies Trust (Fund 227)
Construction Contract for the Playground
Equipment Improvement Project
109-2025 12/8/2025 PW-Eng 227411-51206-26400 $1,830,000 1,830,000 Construction Contract for the Playground
Equipment Improvement Project
109-2025 12/8/2025 PW-Eng 326411-51206-26400 $109,072 109,072 $ - $ 1,939,072 $ - $ 1,939,072
Total General $ - $ 68,896 $ - $ -
$ (68,896) $ 1,939,072 $ - $ 1,939,072
$ (68,896) $ 2,007,968 $ - $ 1,939,072
*Prior year purchase order carryforwards are also included in the previously approved column in Attachments 3 and 4.
Total Non-General:
Total All Funds:
Total General Fund
Total NPDES Stormwater Fund
Total Davies Trust Fund
Attachment 1
City of Pacifica
FY 2025-26 Mid-Year Budget
City Council Previously Approved Budget Amendments
Fiscal Impact
9.a
Packet Pg. 224 Attachment: Attachment 1 - City Council Previously Approved Budget Amendment (6166 : Mid-Year FY 2025-26 MID-YEAR BUDGET
REVENUE ADJUSTMENT REQUEST
PROGRAM: Parks, Beaches & Recreation - Senior Services
REQUEST TITLE: Senior Services Older Americans Act (OAA) Grant Revenue Reduction Is this One-Time ☐ or Ongoing ☒?
Request Summary
The Parks, Beaches and Recreation Department is requesting a revenue adjustment to reflect a reduction in Older Americans Act (OAA) grant funding received through San Mateo County. This reduction results in a projected $106,300 revenue shortfall in FY 2025-26, almost 30% of Senior Services funding, and will be off-set by expenditure reductions in the Senior Services division budget.
Factors Driving the Request for Change
San Mateo County has reduced the City of Pacifica’s FY 2025-26 allocation of Older Americans Act (OAA) grant funding. These funds support key Senior Services programs, including activities and services that help maintain quality of life and promote independence for older adults in the community.
As a result of this funding reduction, the Senior Services program is experiencing a $106,300 shortfall in anticipated revenue compared to the adopted budget. This adjustment request is necessary to ensure the City’s budget accurately reflects the revised grant allocation and to align expenditures with available funding.
Impact of Change
If approved, this amendment will reduce projected revenue by $106,300 and will require corresponding expenditure reductions within the Senior Services program. The department will retain the revenue loss through spending reductions, which may result in a slight reduction in program capacity, service levels, or availability of some senior activities. Specifically, expenditure reductions will be implemented through a combination of reduced program supplies, events and trips, part-time salaries, and staff trainings. The department will prioritize maintaining core senior services.
Alternatives
Alternatives include identifying additional General Fund support to backfill the revenue loss, reducing other departmental program expenses to offset the shortfall, or reducing senior services expenditures as proposed. Due to overall budget constraints, the department is recommending expenditure reductions within the Senior Services program to align with available funding.
Cost Summary
This request reduces adopted FY 2025-26 revenue by $106,300 to reflect the updated San Mateo County OAA allocation. Department expenditures will be reduced by the same amount to balance the program budget. This amendment does not request additional funding and is intended to align the budget with actual grant revenues received. For FY2026-27, PBR will determine wholistically what reductions will be associated with this ongoing revenue reduction.
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 1 Enhance Organizational & Fiscal Stability ☒
City Manager Priority Improve / steward City infrastructure, streets and facilities
☐
Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 225 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 Mid-Year Revenue Adjustment Request Page 2 of 2
Line Item Description Fund Org Number Object Code Total Amount Revenue
F-Senior TITLE III B Transp 101 101530 43530 (16,600)
F-Senior TITLE III C1 CONGRE 101 101530 43531 (40,000)
F-Senior TITLE III C2 MOW 101 101530 43532 (49,700)
Total Revenue $ (106,300)
Offsetting Expenses
Event/Trip Expenses 101 101531 52012 (8,100)
Salaries – Part-Time 101 101511 50101 (5,000)
Conference Registrations 101 101510 52200 (8,000)
Food/Supplies Purchases 101 101532 52013 (15,000)
Department Expense 101 101533 52008 (5,200)
Food/Supplies Purchases 101 101533 52013 (50,000)
Events/ Trip Expenses 101 101534 52012 (15,000)
Net Revenue Adjustment $ (106,300)
9.b
Packet Pg. 226 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET AMENDMENT
REVENUE REQUEST FORM – PROGRAM CHANGE FORM
PROGRAM: General Government – Finance & Administrative Services REQUEST TITLE: Investment Advisory and Cash Management Services Is this One-Time ☐ or Ongoing ☒?
Request Summary
This request proposes funding for investment advisory, active cash management, and cash flow modeling services to optimize interest earnings, improve clarity on cash flows, and support long-term financial planning. If approved, the City is projected to earn approximately $26,000 in additional interest revenue beginning in Q4 of FY 2025-2026, reduced by $9,000 in service fees for a net profit of approximately $17,000, with additional net revenue gains projected in future years as services continue on an ongoing annual basis. There is additional interest-earning potential that is possible while still conforming with our Investment Policy and State Laws, prioritizing safety and liquidity, and still managing to bring in a positive yield. Given the City’s future structural deficit, enhancing revenues where reasonably possible is necessary.
Factors Driving the Request for Change
• Active cash management and professional investment advisory services are projected to generate higher net interest earnings than currently projected
• Current interest rate volatility increases the need for diversified and laddered portfolio strategies • Structured cash flow modeling improves liquidity forecasting and optimizes investment durations while meeting liquidity needs
• Enhanced oversight strengthens compliance monitoring, reduces fraud risk, and improves internal controls
Impact of Change
• Increased net interest revenue and improved yield stability • Reduced exposure to interest rate risk
• Improved forecasting confidence and cash deployment efficiency • Greater clarity on future cash flows for long-term planning • Improved operational efficiency through enhanced reporting and analysis, reducing internal staff time required for investment monitoring and forecasting • Enhanced interest income performance versus the current strategy’s projections. • Greater forecast accuracy driven by more predictable interest income relative to current budgeted investment income.
Priority Tracking (1-10) Council Strategic Goal
Department Priority 1 Enhance Organizational & Fiscal Stability ☒ City Manager Priority Improve / steward City infrastructure, streets and facilities
☐
Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 227 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 Base Budget Revenue Adjustment Page 2 of 2
Alternatives
The City can continue passive cash management practices, resulting in lower interest earnings, increased exposure to interest rate volatility as well as rely on existing forecasting practices without formal cash flow modeling, reducing long-term financial planning precision and liquidity insight but staff does not recommend this.
Cost Summary
The proposed fee structure is 9 basis points (0.09%) on assets under management (AUM). Fees fluctuate proportionally based on assets under management, with no minimum. Estimated monthly fee:
approximately $3,000, estimated Q4 FY 2025-2026 cost: $9,000, and estimated annual FY2026-27 cost:
approximately $34,000 (subject to AUM levels).
The City does not currently utilize a professional investment advisor and therefore has no existing advisory expense; however, the proposed services are projected to generate net positive revenue in excess of the annual fee. Q4 FY 2025-26: ~$26,000 in additional interest revenue – $9,000 in fees = $17,000 net benefit. FY 2026-27: ~$138,000 in additional interest revenue – $34,000 in fees = $104,000 net benefit.
Line Item Description Fund Org Number Object Code Total Amount Revenue
Investment Earnings in FY2025-26 Q4 101 101100 45100 26,000.00 Total Revenue $ 26,000.00
Offsetting Expenses - Service Fees 101 101100 51206 (9,000.00) Net Revenue Adjustment $ 17,000.00
9.b
Packet Pg. 228 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
EXPENSE AMENDMENT REQUEST
PROGRAM: Police Department
REQUEST TITLE: Reclassify the Property and Evidence Clerk Position & Evidence Room Equipment Is this a Capital Project? Yes ☐ / No☒ If Yes, is this New ☐ or Previously Approved CIP☐? Is this One-Time ☐ or Ongoing ☒?
Request Summary:
The Pacifica Police Department conducts annual property and evidence room audits as required by California State Law, Department policy, and established law enforcement best practices. During the 2024 Property Room audit, it was identified that the Department’s property and evidence storage systems are at risk of falling out of POST and DOJ compliance, specifically regarding the proper storage of environmentally-sensitive evidence.
The current refrigeration and freezer units are more than 20 years old, deteriorating and no longer reliable to maintain strict temperature controls. This presents a significant risk to the preservation and integrity of critical evidence. Additionally, the existing shelving units and storage systems within the property room are outdated and do not meet modern safety and efficiency standards. The antiquated shelving creates potential workplace safety concerns and limits accessibility for personnel. Furthermore, for property and evidence too large to be stored within the designated property room, the Department currently utilizes a section of one bay within its three-bay garage facility. This area is accessible to all employees. Current professional standards require that evidence storage areas be secured and accessible only to limited, authorized personnel to maintain chain of custody and evidence integrity.
To address these deficiencies, staff propose replacing outdated refrigeration and freezer units, upgrading shelving systems within the property room, and constructing a secured, fenced enclosure within the garage bay to restrict access to oversized evidence. The installation would include controlled entry and minimal industrial shelving to properly accommodate oversized property and evidence.
The Pacifica Police Department also respectfully requests approval to reclassify the Property and Evidence Technician Clerk position from part-time to full-time status. This position has been budgeted as part-time for approximately 30 years; however, over the past three decades the scope, complexity, and demands of the position have increased due to evolving legal requirements, increased evidentiary standards, and the growing volume of both physical and digital evidence.
During the department’s most recent property room audit, it was noted that a substantial volume of evidence requires purging, including narcotics, firearms, and miscellaneous property. This backlog has created storage limitations within the property room and may result in compliance issues and potential exposure to litigation if evidence is not processed and destroyed in a timely and legally compliant manner.
Additionally, law enforcement agencies have experienced a substantial increase in digital evidence, which requires specialized training, careful handling, and strict adherence to chain-of-custody protocols. A fullPriority Tracking Council Strategic Goal Department Priority
(based on number of forms, 1 being the highest priority) 1 Enhance Organizational & Fiscal Stability ☒
City Manager Priority Improve / steward City infrastructure, streets and facilities ☐ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 229 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 Mid-Year Expense Amendment Request Page 2 of 3 time Property and Evidence Technician would also assist the Records Division in managing the high volume of Public Records Act (PRA) requests, which frequently require extensive review and redaction.
Most law enforcement agencies within San Mateo County have added personnel to manage the growing demands associated with evidence processing and digital data management. In contrast, this position has remained part-time for three decades. Since the current incumbent has given notice of retirement, a recruitment for the current part-time classification was conducted. Reclassifying the position as full-time will significantly improve recruitment efforts and attract qualified candidates.
Investment in updated property and evidence infrastructure and staffing is critical to maintaining operational standards, safeguarding evidence, and ensuring compliance with legal and professional standards.
Factors Driving the Request for Change:
• Increased workload and complexity of evidence management over the past 30 years, while the position has remained part-time
• Backlog of evidence and limited storage space, creating compliance risks and potential liability • Growth in digital evidence, requiring specialized handling, tracking, and training • High volume of Public Records Act (PRA) requests, requiring extensive review and redaction support
• Recruitment challenges, including a recent failed part-time recruitment and improved competitiveness with full-time status
• Regulatory Compliance Requirements – Annual audits identified deficiencies that could place the Pacifica Police Department at risk of non-compliance with California State Law, Department policy, and recognized law enforcement best practices regarding evidence storage and security. • Preservation of Evidence Integrity – Aging refrigeration and freezer units (over 20 years old) are no longer reliably maintaining required temperatures, increasing the risk of degradation, contamination, or loss of critical temperature-sensitive evidence. • Chain of Custody and Security Concerns – Oversized evidence currently stored in a garage bay is accessible to all employees, which does not meet current standards requiring restricted access to protect evidentiary integrity and limit liability.
• Workplace Safety Improvements – Outdated and antiquated shelving systems create accessibility challenges and potential safety hazards for personnel. Modern storage systems would improve ergonomics, reduce injury risk, and enhance overall safety. • Operational Efficiency and Capacity – Updated shelving, secure enclosures, and improved organization will increase storage capacity, streamline workflows, improve accountability, and support more efficient property and evidence management.
Impact of Change:
• Improved compliance and reduced liability risk through timely evidence purging and proper destruction practices
• Elimination of evidence backlog and better space management within the property room • Enhanced handling and oversight of digital evidence, ensuring proper chain-of-custody and security
• Increased operational efficiency, including additional support for Public Records Act (PRA) requests and redaction
• Improved recruitment and retention, resulting in greater continuity and stability in evidence management operations
• Improved Legal Defensibility – Ensures evidence is stored in compliance with state law and professional standards, reducing the risk of evidence suppression, case dismissal, or legal challenges related to improper storage or chain-of-custody issues.
9.b
Packet Pg. 230 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 Mid-Year Expense Amendment Request Page 3 of 3
• Enhanced Evidence Preservation – Reliable refrigeration, freezer units, and modern storage systems will protect temperature-sensitive and oversized evidence from degradation, contamination, or loss, maintaining evidentiary value.
• Increased Security and Accountability – Securing oversized evidence within a restricted-access enclosure will limit access to authorized personnel only, strengthening chain-of-custody controls and reducing potential liability.
• Safer Work Environment – Upgraded shelving and improved layout will reduce workplace hazards, improve ergonomics, and create safer, more efficient access for staff handling property and evidence.
• Greater Operational Efficiency and Capacity – Modernized storage infrastructure will increase usable storage space, streamline organization, and support more effective property and evidence management as case volume and storage demands grow.
Alternatives:
Although staff does not recommend this option, the alternative would be to maintain the position as parttime and delay the proposed property and evidence room improvements. However, given the increasing workload, recent failed recruitment, and identified storage deficiencies, this approach could place the City at risk of falling out of compliance.
Cost Summary:
Staff is estimating the cost for the evidence refrigerators, security fencing, and forensic storage solutions not to exceed $48,000. This would be a one-time cost to the organization.
The total annual payroll cost for the current part-time Property and Evidence Technician Clerk position is $53,796, while the total annual payroll cost for the proposed full-time position is $155,635.56, resulting in an annual cost increase of $101,839.85. The cost for the remaining months of the current fiscal year is estimated at $33,947.
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Reclass to Full-Time position 101 101218 50100 51,879.00 Current benefited part-time position 101 101218 50101 (17,932.00) Total Cost of Position Reclass 33,947.00
Contractual Services 101 101215 51206 48,000.00
Net Operating Costs $ 81,947.00
9.b
Packet Pg. 231 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
BUDGET TRANSFER REQUEST
PROGRAM: Public Works – Building Maintenance
REQUEST TITLE: Transfer from Reserve Fund to Public Works for Emergency Facilities Maintenance Is this One-Time ☒ or Ongoing ☐?
Request Summary
The amount of $88,000 will be replenished in the Building Maintenance Contractual Services budget, which was utilized for the emergency removal of asbestos and emergency removal of mold in City-maintained facilities.
These funds will be sourced from the Facilities Maintenance & Replacement Reserve.
Factors Driving the Request for Change
Under the direction of the City Manager, expenditures for emergency work on the Library and Police Station for these issues would be eligible to be replenished through the Facilities Reserves with Council Approval. Due to the need for asbestos remediation, Building Contractual Services funds were initially used to cover two emergency projects at City-maintained facilities: Pacifica Police department and the Hilton Library. The work required for the Pacifica Police Department totaled $73,980. This amount covered the expenses related to the abatement and repair of damage in the lobby caused by a roof leak. This intervention was executed as a priority, as the lobby serves as a high-traffic area accessible to the public. The asbestos remediation work at Hilton Library totaled $14,245. Following a routine maintenance inspection, an assessment identified asbestoscontaining floor tiles that required proper abatement. The remediation was completed in conjunction with repairs to flooring impacted by a water leak originating from the kitchen sink.
Impact of Change
The transfer requested will reimburse costs incurred for these unplanned facility repairs and restore available funding within the Building Contractual Services account, allowing planned maintenance and facility projects to proceed as scheduled. This action is consistent with the City’s financial policies, as the reimbursement will be made from Facilities Reserves designated for this purpose, lowering the balance to $117,992 from $205,000.
Alternatives
The emergency work was already conducted and has been concluded. This transfer would ensure that the costs are covered by the appropriate resources.
Cost Summary
The Police Department building costs totaled $73, 980. The Hilton Library remediation costs totaled $14, 245.
The ERMA Grant of $1,127 reduced to the total costs to $87,008 which will be transferred from the Facilities Maintenance Reserves to the Public Works Building Contractual Services line-item where the costs were expensed to.
Line Item Description
From Org
Code
From
Object-Project
From
Amount
To Org
Code
To
ObjectProject
To
Amount
Transfer Out From the Facilities
Maintenance & Replacement
Reserve 101 33002 (87,008)
Transfer to PW Building
Contractual Services 101414 51206 87,008
Total Transfers $ (87,008) $ 87,008
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 1 Enhance Organizational & Fiscal Stability ☒
City Manager Priority Improve / steward City infrastructure, streets and facilities ☐ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 232 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
EXPENSE AMENDMENT REQUEST
PROGRAM: General Government - City Manager’s Office - Economic Development REQUEST TITLE: Reclassify the ED & Housing Specialist Position from Limited Term to Permanent Is this a Capital Project? Yes ☐ / No☒ If Yes, is this New ☐ or Previously Approved CIP☐? Is this One-Time ☐ or Ongoing ☒
Request Summary
This request seeks a mid-year budget amendment to reclassify the existing limited-term Economic and Housing Development Specialist position to a permanent position, at fully costed salary of $198,581. The position is currently Limited Term, and will expire on July 1st, 2026. The position has remained unfilled following the departure of the incumbent in October 2025. The Economic and Housing Development Specialist position is essential to implementing Pacifica’s recently developed Economic Development Work Plan and supporting the new Economic and Housing Development Manager. Without this position, the execution of the Economic Development Workplan, including critical day-to-day tasks like business outreach and business district support, leasing efforts to fill vacancies, Pacifica event support and postevent analysis maintenance of partnerships to provide small business technical assistance, and continued permit counter improvements, amongst other activities—will be slowed, delaying the Economic Development group’s goals and ultimately the City’s progress on fiscal stabilization. Converting this position into permanent full-time, would allow the City to go out with the recruitment and bring the organizational capacity to the level needed to execute the Economic Development Workplan.
Factors Driving the Request for Change
Pacifica’s Economic Development program is operating at a critical juncture. The City has recently adopted a comprehensive Economic Development Work Plan calling for immediate action across four goal areas: Catalyst Projects, Business Attraction, Business Retention, and Planning & Policy Development. However, at present, the City’s Economic Development function is supported by 1.5 FTE - one Economic and Housing Development Manager, 0.5 FTE Management Analyst II (shared with the City Manager’s Office), and the currently vacant limited-term Specialist position. The limited-term Specialist position has not been filled given the short amount of time between the new Economic Development and Housing Manager’s hiring in January 2026 and the Specialist position’s expiration on July 1, 2026. Given the depth and breadth of its workplan, Economic Development is operating with limited staffing capacity and will need a permanent Specialist position to ensure that day to day department activities carry on.
Additionally, the nature of economic development work, as described above, aligns more closely with the skillset and operational focus of a Specialist classification than the analytical duties typically associated with a Management Analyst role. Establishing a permanent full-time Specialist classification would also support broader organizational recruitment and retention efforts by creating a clearer career pathway within the City’s economic development function. While this request does not presume or guarantee Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 1 Enhance Organizational & Fiscal Stability ☒ City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☒
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☒
9.b
Packet Pg. 233 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 Mid-Year Expense Amendment Request Page 2 of 2 internal advancement, having a permanent classification structure supports workforce stability and professional development opportunities over time.
If Pacifica’s Economic Development Department is able to act more quickly and perform at a higher standard, the City’s General Fund should benefit from subsequent increases in property, TOT, and sales taxes. For example, targeted outreach and leasing support to fill existing commercial vacancies would directly increase sales tax activity and may also generate other economic activity and additional revenues through business license taxes, permitting activity for tenant improvements.These increases would help to offset the cost of the permanent position.
Impact of Change
The Specialist will aid the Economic Development and Housing Manager in all of their larger efforts on complex revenue-generating projects, while also being wholly responsible for tasks like small business visits, community event support and leasing efforts. Approval of this amendment will provide permanent and continuous staffing capacity to implement the Economic Development Work Plan, a crucial scope of work supporting long-term fiscal sustainability for the City.
At the same time, staff recognizes the City’s challenging fiscal outlook, ongoing recruitment and retention constraints, and the projected structural deficit in future years that may require additional restructuring and difficult budget decisions ahead. This request is presented with those constraints in mind, recognizing that strategic investment in economic development capacity can contribute to long-term revenue stabilization.
Alternatives
The Council could choose to continue the limited-term Specialist position for another year to give staff a chance to conduct recruitment. However, a limited-term classification is unlikely to attract a strong competitive applicant pool. It would also leave the Economic Development program understaffed at the end of the limited term, when the long-term nature of the work extends well beyond a single fiscal year.
The urgency of the Economic Development Department’s Work Plan implementation, and the nuanced, complex and technical nature of the Department’s work call for a permanent Specialist position.
Cost Summary
The table below represents the projected FY2026-27 fiscal impact across all funds. There is no fiscal impact to the current FY2025-26 budget because the position is currently vacant, resulting in salary savings in the current year. If approved, the position allocation would remain in the FY2026-27 base budget rather than being removed during the budget development process, and the City would be able to proceed with recruitment immediately. If approved for FY2026-27, the funding allocation between the General Fund and Housing Fund will be slightly adjusted from the current 60% / 40% split to an 80% / 20% split to better reflect the anticipated program workload and economic development focus of the position. The table below reflects the projected FY2026-27 salary allocation.
Line Item Description Fund
Org
Number
Object
Code Total Amount
Operating Expense
Economic and Housing Dev Specialist 80% 101 101140 50100 158,865.00 Economic and Housing Dev Specialist 20% 221 221100 50100 39,716.00 Total Operating Costs $ 198,581.00
9.b
Packet Pg. 234 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
EXPENSE AMENDMENT REQUEST
PROGRAM: Police Department
REQUEST TITLE: Fund 207 SLESF Equipment and Supplies
Is this a Capital Project? Yes ☐ / No☒ If Yes, is this New ☐ or Previously Approved CIP☐? Is this One-Time ☒ or Ongoing ☐
Request Summary:
Staff is requesting a budget amendment to appropriate available restricted fund balance within Fund 207 Supplemental Law Enforcement Services Fund (SLESF) to support eligible law enforcement expenditures in accordance with state guidelines. The requested appropriation will allow the Police Department to utilize previously received SLESF allocations for allowable front-line law enforcement services and related operational needs. This action does not increase overall City expenditures and does not impact the General Fund. As of FYE 6/30/2025, the fund balance in Fund 207 was $560,504.
Factors Driving the Request for Change:
The City has accumulated restricted SLESF fund balance from prior fiscal year allocations that has not yet been appropriated into the current fiscal year budget. SLESF funds are legally restricted for front-line municipal police services and must be used in accordance with state requirements. Appropriating the available fund balance ensures the funds are deployed for their intended purpose and remain compliant with “supplement, not supplant” provisions. Additionally, timing differences between revenue receipt and expenditure planning require formal appropriation authority in order to expend the restricted funds during the current fiscal year.
Impact of Change:
This amendment increases the expense budget within Fund 207 and is fully offset by the use of restricted fund balance. There is no impact to the General Fund or other City funds. The appropriation reduces restricted SLESF fund balance but maintains the fund’s fiscal integrity and compliance with state requirements. The expenditures supported by this amendment enhance front-line law enforcement services consistent with the purpose of the SLESF program.
Alternatives:
No reasonable alternative exists. The requested expenditures are eligible under the SLESF program guidelines, and sufficient restricted fund balance is available in Fund 207 to support the appropriation.
Delaying or declining the amendment would postpone deployment of restricted funds intended to support public safety services.
Cost Summary:
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Departmental Expense 207 207211 52008 59,775.00
Total Operating Costs
Net Operating Costs $ 59,775.00
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 2 Enhance Organizational & Fiscal Stability ☒
City Manager Priority Improve / steward City infrastructure, streets and facilities ☐ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 235 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
EXPENSE AMENDMENT REQUEST
PROGRAM: Public Works – Streets & Traffic Maintenance
REQUEST TITLE: Traffic Signal and Streetlight Repairs
Is this One-Time ☐ or On-going ☒
Request Summary
This request is to add additional funds to our traffic signal and streetlight response budget. The current budget is $52,000 and will be exhausted before the end of the fiscal year. The repair and maintenance cost for traffic signals and streetlights is $1,000 per light, and we receive an average of two service requests per week.
Factors Driving the Request for Change
The proposed increase in the budget for traffic signals and streetlights is a crucial step toward enhancing the safety and well-being of our community. By allocating these additional funds, we can significantly improve illumination and visibility at intersections and pedestrian crossings, creating a safer environment for motorists and pedestrians. This investment demonstrates our commitment to public safety and to providing a secure, navigable space for everyone in our community. The average cost of servicing an individual light is $1,000; therefore, the current budget is projected to be exhausted by February.
Maintaining these lights is a critical safety issue, as it is essential to protect our residents in high-traffic areas. The current budget is projected to be exhausted by the end of February. The constant influx of service requests, combined with the lack of contingency for major accidents, is concerning.
Impact of Change
If approved, this will allow the department to continue addressing safety issues and provide more data to effectively tackle this issue in the upcoming fiscal year's budget allocation.
Alternatives
The are no reasonable alternatives at this time as the repair and maintenance work must continue.
Cost Summary
Line Item Description Fund Org Number Object Code Total Amount Operating Expense
Repairs & Maintenance 210 210412 52029 40,000.00
Total Operating Costs $ 40,000.00
Net Operating Costs $ 40,000.00
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 3 Enhance Organizational & Fiscal Stability ☐
City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 236 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 BASE BUDGET
EXPENSE REQUEST – PROGRAM CHANGE FORM
PROGRAM: Public Works - Engineering Division
REQUEST TITLE: Manor Rectangular Rapid Flashing Beacons & Sidewalk Shaving – ADA Compliance Request Summary
Engineering would like to make a request for the Manor Plaza Rectangular Rapid Flashing Beacons project and The Sidewalk Shaving for ADA compliance project. The request is to contract with St. Francis Electric for $23,570 for the Manor Plaza Rectangular Rapid Flashing Beacons. This entails installing new poles with rectangular rapid flashing beacons and appropriate signage to replace the nonfunctioning inground flashing lights at the Manor Plaza midblock crosswalk. As for the Sidewalk Shaving for ADA compliance, a contract with Precision Concrete Cutting (PCC) is needed to address sidewalk uplift and other identified tripping hazards in the Vallemar and Rockaway Beach neighborhoods. The estimated cost for this work is estimated to be $15,000. Staff will evaluate each location to determine the appropriate corrective measures needed to mitigate the hazards.
Factors Driving the Request for Change
For the Manor Plaza Rectangular Rapid Flashing Beacons, a one-time request would address a safety issue as the in-ground flashing lights have stopped working. Several requests have come to both Field Services and Engineering to make this midblock crosswalk safer for pedestrians.
Sidewalks in the Vallemar and Rockaway Beach neighborhoods are experiencing uplift caused by City tree roots, resulting in uneven surfaces and identified tripping hazards. These conditions present a potential liability risk to the City. Precision Concrete Cutting offers several cost-effective methods to immediately mitigate these hazards by removing vertical displacement and restoring a safer walking surface. Additional City funding is requested to address these locations promptly and reduce exposure to claims while improving pedestrian safety. This would be a pilot project with PCC.
Alternatives
The alternative currently is to wait until next fiscal year, but the safety of the Manor crosswalk and Vallemar and Rockaway Beach sidewalks are a high concern and can be addressed this current fiscal year.
Cost Summary
Line Item Description Org Code Object Code Project Number Total Amount Operating Expense
Contractual Services 213411 51206 26399 23,570.00
Contractual Services 213412 51207 26400 15,000.00
Total Operating Costs $ 38,570.00
Net Operating Costs $ 38,570.00
Priority Tracking (1-10) Council Strategic Goal
Department Priority 4 Enhance Organizational & Fiscal Stability ☐ City Manager Priority Improve / steward City infrastructure, streets and facilities
☒
Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐ ☐ Ongoing (Annual) ☒ One-time
9.b
Packet Pg. 237 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
BUDGET TRANSFER REQUEST
PROGRAM: Public Works - Waste Water Treatment Plant
REQUEST TITLE: Linda Mar Stormwater Pump Station – Electrical Design Is this One-Time ☒ or Ongoing ☐
Request Summary
Equipment in the Linda Mar Stormwater Pump Station is nearing the end of its useful life. Replacement of the existing electrical equipment and wiring is necessary for reliable operation of the pump station and flood protection in the Linda Mar neighborhood.
Factors Driving the Request for Change
Funds are not currently present in Project C0047 for this task. Funds are available as part of the 2017 Wastewater Revenue Bond, currently held in Fund 518; and we intend to transfer funds to C0047 to accomplish this goal. Pump station equipment has been inspected recently and found to be in worse condition than anticipated. Beginning the design of replacement electrical equipment in the current fiscal year as opposed to waiting until the FY 2026-27 budget cycle will allow the project to progress and reduce the risk of equipment failure and improve reliability.
Impact of Change
The transfer will draw down and utilize funds from the 2017 Wastewater Bond. Beginning this project now will be in line with the Council’s Goals of:
• Improvement and Stewardship of City Infrastructure, Streets and Facilities. The sooner this project is initiated, the sooner new equipment can be installed, and flood projection can be improved. • Pursuing Climate Change Adaptation and Mitigation.
• As per Reso # 69-2025, this project is an eligible use of the bond funds, as approved by Council.
Alternatives
Delaying this effort and beginning this project in the FY2026-27 budget cycle will increase the risk of equipment failure.
Cost Summary
The 2017 Bond Revenue funds were drawn down to be spent on eligible uses, and this project has been determined to be eligible within the description of the restrictions.
Line Item Description
From Org
Code
From
ObjectProjectFrom
Amount To Org Code
To
ObjectProjectTo
Amount
Transfer from 2017 Bond
Revenue 518 34000 (150,000)
Transfer to Fund 518 518452 51206-C0047 150,000
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 1 Enhance Organizational & Fiscal Stability ☐
City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☒ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 238 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
BUDGET TRANSFER REQUEST
PROGRAM: Public Works – Waste Water Treatment Plant
REQUEST TITLE: Spydercrane Purchase
Is this One-Time ☒ or Ongoing ☐
Request Summary
The Wastewater Division is requesting to make a one-time purchase of a Spydercrane which will aid in maintenance and operations of the Calera Creek Water Recycling Plant. This purchase will be made before the 2026 summer maintenance period, before the fiscal year end. Final fill costs still need to be determined; but WWTP is requesting up to $85,000 to procure a Spydercrane or equivalent piece of equipment.
Factors Driving the Request for Change
• The WTTP relies on a forklift for much of its lifting and maintenance of pumps, which is not as safe as a dedicated crane
• The Spydercrane equipment will be able to access all the areas of the plant and provides a much safer and more efficient way of lifting the various pumps and equipment from confined spaces and tanks
• The crane will increase efficiency of inspections operations across all five City pumps Impact of Change
• Improvement of staff safety and efficiency
• Less reliance on expensive crane contracting costs
• This crane is versatile in that it can be used and has ability to access indoor areas and the roof, which is needed for better ongoing maintenance
• This procurement is in line with our Council goals of Improvement and Stewardship of City Infrastructure, Streets and Facilities and Enhancing Organizational and Fiscal Stability.
Alternatives
The Wastewater Division can continue to maintain the plant using the forklift and crane rental services.
This will delay safety improvements and potential cost savings from reductions in rental fees.
Cost Summary
Our staff are in the process of determining the final costs of the Spydercrane units, early estimates are around $85,000. These funds are requested to be transferred from account 518452-51206-C0051: Linda Mar Peralta Project to 518451-51215. There are some cost savings in the C0051 project available to be used for this purpose.
Line Item Description
From Org
Code
From
Object-Project
From
Amount
To Org
Code
To
ObjectProjectTo
Amount
Transfer from Project
C0051 518452 51206-C0051 (85,000)
Transfer to Fund 518
Vehicle and Equipment
Maintenance 518452 51215 85,000
Total Transfers $ (85,000) $ 85,000
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 3 Enhance Organizational & Fiscal Stability ☐
City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☒ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 239 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
BUDGET TRANSFER REQUEST
PROGRAM: Public Works – Wastewater Treatment Plant
REQUEST TITLE: Replacement of SBR Mixing Pump Equipment Is this One-Time ☒ or Ongoing ☐
Request Summary
The Wastewater Division will pursue a one-time replacement of one of the SBR mixing pumps which has exceeded its service life and has become uneconomical to service and maintain due to long lead times and expensive overseas part sourcing. The WWTP team has found a viable replacement in a Sulzer brand pump which will cost $44,900 new as compared to the Ebara which cost $114,000. This replacement is anticipated to take place in June of 2026.
Factors Driving the Request for Change
• Sequencing Batch Reactor mixing pumps are near end of service life, expensive and timely to repair • The City has experienced two failures of these critical pumps in the past 6 months • The new pump will cost $44,900 and will incur additional cost at time of installation Impact of Change
• Significant cost savings going from a $114,000 Ebara pump to a $44,900 Sulzer brand. This is anticipated to reduce operations and maintenance costs in the future. • Cheaper replacement parts and faster lead times will reduce cost and reduce Plant process downtimes • These mixing pumps are critical to the Operations of the Calera Creek Water Recycling Plant and all 5 pumps must be operational for the Plant to handle maximum daily flows of 20 million gallons per day (MGD).
Alternatives
The Wastewater Division can continue to maintain and conduct emergency repairs to the SBR mixing pumps until the replacement cost can be built into next fiscal year’s budget, however this increases the risk of pump failure and loss of wastewater treatment efficiency.
Cost Summary
One new pump will cost $44,900, anticipated costs for construction / installation is $45,000, for a total project cost of $89,900. Funds are present in Account C0040: CCWRP Headworks Rehabilitation and Improvement Project (Headworks), and major construction on the Headworks project is not anticipated to begin until the FY2026-27 budget cycle, therefore we are requesting funds to be moved to Project P0033:
CCWRP Repair and Replace.
Line Item Description
From Org
Code
From
Object-Project
From
Amount
To Org
Code
To
Object-Project
To
Amount
Transfer from Project P0040 518452 51206-P0040 (89,900) SBR Mixing Pump Purchase
and Installation 518452 51206-P0033 89,900
Total Transfers $ (89,900) $ 89,900
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 2 Enhance Organizational & Fiscal Stability ☒
City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 240 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY2025-26 MID-YEAR BUDGET
EXPENSE AMENDMENT REQUEST
PROGRAM: Public Works and Self-Insurance General Liability REQUEST TITLE: Risk Grant Funds for Corp Yard Security System Is this One-Time ☒ or Ongoing ☐?
Request Summary
Public Works is requesting funding to install a security system at the Department of Public Works Corp.
Yard. This proposal is a priority for overall building and personnel safety.
Factors Driving the Request for Change
The Corporate Yard is a public facility that houses valuable City property, equipment, and tools necessary for daily operations. This includes high-value machinery and specialized equipment relied upon by staff to provide essential services. An assessment of the facility determined that the existing security system is outdated and in need of replacement. Enhancing security measures will help safeguard City-owned assets and staff equipment located at the site. The facility currently houses over $200,000 in staff personal tools utilized for work, as well as approximately $4,000,000 in publicly funded vehicles and heavy equipment. Updating the security system will help ensure these assets are appropriately protected and support the continued reliability of City operations.
Impact of Change
This project will implement a modern security system, including cameras and burglar alarms, at the Corporation Yard, which houses Field Services, the Auto Shop, Engineering, and Equipment Garage.
The upgraded system will enhance facility security and support the protection of City property and operational areas.
Alternatives
Without these improvements, the facility would continue to operate with outdated security infrastructure, which may limit the City’s ability to adequately monitor and protect critical equipment and operational areas.
Cost Summary
There will be a one-time installation cost of $25,785 plus a contingency of $4,000, with a net cost of $29,785. There will also be monthly ongoing monitoring costs of $45 to be budgeted annually. The SelfInsurance General Liability Risk Fund 667 will cover the cost partially at $20,000. The remainder of the cost will be funded by the existing Public Works budget.
Line Item Description Fund Org Code Object Code Total Amount Partial Installation cost for security system 667 667190 51206 20,000.00 Total Cost $ 20,000.00
Net Cost Adjustment $ 20,000.00
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 5 Enhance Organizational & Fiscal Stability ☐
City Manager Priority Improve / steward City infrastructure, streets and facilities
☒
Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 241 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
BUDGET TRANSFER REQUEST
PROGRAM: Transfer from 101999-59672 to 672999-49101
REQUEST TITLE: Transfer to Motor Pool for PD Vehicle Replacement Is this One-Time ☒ or Ongoing ☐?
Request Summary
The City’s Motor Pool division purchased a vehicle for the Police Department that needed to be replaced due to a vehicle accident. A transfer request of $42,780 from the General Fund to the Motor Pool Fund is requested in order to cover the purchase of this vehicle.
Factors Driving the Request for Change
Following a waiver of the three-bid process and following City of Pacifica’s Administrative Policy #76, Purchasing Policy, section 7.2, the City Manager under his authority approved the purchase of a 2025 Dodge Durango Pursuit vehicle on August 25, 2025, in the amount of $45,558. A transfer is needed from the General Fund to cover this vehicle specifically used by the Police Department. The vehicle that was damaged in the accident produced insurance coverage of $10,799.
Impact of Change
This would correct the expenditure budget for Motor Pool Fund 672 and allow for year-end processing to more accurately reflect the balance of the fund.
Alternatives
There are no reasonable alternatives to this request at this time as the previously approved purchase has already been made.
Cost Summary
Cost Transfer Out from the General Fund of $42,780 and appropriate the use of these funds in the Motor Pool Fund 672.
Line Item Description
From Org
Code
From
Object-Project
From
Amount
To Org
Code
To
ObjectProjectTo
Amount
Transfer Out from Fund 101 for
purchased Police Vehicle 101999 59672 (45,558)
Transfer Out from Fund 101 for
purchased PD Vehicle Up-Fit
Cost 101999 59672 (8,021)
Coverage from Insurance 10,799
Transfer to Fund 672 from GF 672999 49101 42,780
Total Transfers $ (42,780) $ 42,780
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 2 Enhance Organizational & Fiscal Stability ☒
City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 242 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 MID-YEAR BUDGET
EXPENSE AMENDMENT REQUEST
PROGRAM: Public Works – Motor Pool
REQUEST TITLE: Additional Funds for Vehicle Maintenance Is this a Capital Project? Yes ☐ / No☒ If Yes, is this New ☐ or Previously Approved CIP☐? Is this One-Time ☒ or Ongoing ☐
Request Summary
The requested funding will cover the repair of a damaged hoist on a dump bed truck. This repair is critical to restoring the vehicle's full functionality and ensuring safe, reliable operation. Additionally, the funds will be used to purchase and install proper toolboxes to securely store and protect valuable tools and equipment. Investing in secure, weather-resistant storage will safeguard our assets from damage and theft, improve organization, and enhance overall operational efficiency.
Factors Driving the Request for Change
Due to the age and extensive usage of these vehicles, maintenance costs have increased significantly, and the current budget cannot tolerate this additional cost. However, these vehicles remain essential to our operations and are assigned to staff who require fully functional vehicles to perform their responsibilities effectively. Given their critical operational necessity, it is imperative to allocate additional funding to complete the required repairs. Ensuring that these vehicles are safe, reliable, and fully operational will enable our new team members to fulfill their duties without interruption, thereby enhancing overall service efficiency.
The current concern regarding the dump bed truck involves a malfunctioning bed hoist. This component is critical to the truck's operational capacity and enables effective unloading of heavy materials. The flatbed truck will be converted into a utility truck. This vehicle requires several utility boxes to securely store and protect the tools and equipment required for job-site operations. Delays in the changes requested will prevent staff from having the necessary equipment to perform their job duties.
Adding additional funds for these vehicles will provide much-needed repairs to extend their service life.
The dump bed truck requires a replacement truck bed lift because the current lift is non-operational due to weather-related rust. The cost associated with this replacement is $21,000. The flatbed truck needs utility boxes to properly store tools and other equipment, with an expected cost of $5,000.
Impact of Change
This would allow us to continue utilizing these vehicles, extending their service life, and providing vehicles to workers to complete their maintenance obligations. They would add an additional $26,000 to the vehicle maintenance account, funded by the General Fund.
Priority Tracking Council Strategic Goal
Department Priority
(based on number of forms, 1 being the highest priority) 6 Enhance Organizational & Fiscal Stability ☐
City Manager Priority Improve / steward City infrastructure, streets and facilities ☒ Council Action Prioritize protection and development of affordable housing
☐
Council Accepted Pursue climate change adaptation and mitigation. ☐ Council Rejected Broaden public communications and collaboration ☐
9.b
Packet Pg. 243 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) FY 2025-26 Mid-Year Expense Amendment Request Page 2 of 2 Alternatives
A viable alternative is to explore long-term leasing options for similar-style work trucks. This option offers the benefit of acquiring a new vehicle that is less likely to require significant repairs due to prior heavy use.
Drawbacks to this option are that there is no leasing option for a truck with a dump bed, as it is a specialized vehicle, and it doesn’t support the current maintenance backlog, and will further delay maintenance in the queue.
Cost Summary
The total cost will reflect the asking amount of $26,000, transferred in from the General Fund unassigned fund balance to the Motor Pool – Replacement Fund 672.
Line Item Description Fund Org Number
Object
Code Total Amount
Operating Expense
Lift Bed Hoist 672 672470 52023 21,000.00
Tool Boxes 672 672470 52023 5,000.00
Total Operating Costs $ 26,000.00
Net Operating Costs $ 26,000.00
9.b
Packet Pg. 244 Attachment: Attachment 2 - FY 2025-26 Department Mid-Year Budget Request Forms (6166 : Mid-Year Budget Review FY 2025-26) Fund Name FY 2024-25
Actual
FY 2025-26
Original
Budget
Previously
Approved
Mid-Year
Adjustments
FY 2025-26
Revised Budget
% Change
over
Adopted
101 GENERAL FUND 51,993,184 $ 53,186,106 $ 68,896 $ 393,898 $ 53,648,900 0.9%
SPECIAL REVENUE & CAPITAL FUNDS
207 Supplemental Law Enf Serv 243,378 150,000 - - 150,000 - 209 Measure A 1,430,586 1,491,000 - - 1,491,000 -
210 Gas Tax 2,301,058 2,495,064 - (220,000) 2,275,064 -9% 211 Measure W 637,340 739,058 - - 739,058 -
213 Street Improvement 1,741,390 655,000 - (63,790) 591,210 -10% 216 NPDES Stormwater 260,876 210,700 - - 210,700 -
221 Housing Action Fund 1,725,757 - - - - -
224 Housing In-Lieu 25,264 - - - - -
225 Parking In-Lieu 12,025 1,764 - - 1,764 -
227 Davies Trust 150,648 - - - - -
228 PB&R 184,490 - - - - -
229 Tree Replacement 2,000 - - 55,867 55,867 -
238 Disaster Accounting 4,176,642 - - - - -
312 Highway 1 Improvement 89,741 5,000 - - 5,000 -
314 Manor Drive Improvement 1,306,574 - - - - -
315 Aircraft Noise Project - - - - - -
319 Planned Local Drainage 29,247 25,000 - - 25,000 -
322 General Capital Improvement 975,816 595,000 - - 595,000 - 323 Frontierland Remediation 13,141 75,000 - - 75,000 - 326 Parks and Playfield 353,800 100,000 - - 100,000 -
331 Pacifica Library 5,074 - - - - -
Total Special Revenue & Capital
Funds 15,664,847 6,542,586 - (227,923) 6,314,663 -3%
DEBT SERVICE FUNDS
440 Debt Service Fund 483,867 1,968,546 - - 1,968,546 - Total Debt Service Funds 483,867 1,968,546 - - 1,968,546 -
ENTERPRISE FUNDS
518 Sewer Utility 21,576,556 22,263,040 - - 22,263,040 - 535 Beach Parking 413,082 525,000 - - 525,000 -
Total Enterprise Funds 21,989,638 22,788,040 - - 22,788,040 -
INTERNAL SERVICE FUNDS
665 Self Insurance - Dental Plan 125,796 302,616 - - 302,616 - 666 Self Ins - Workers Comp 647,779 1,457,211 - - 1,457,211 - 667 Self Ins - General Liability 2,969,718 3,317,713 - - 3,317,713 - 671 Motor Pool - Operating 1,242,400 1,244,030 - - 1,244,030 - 672 Motor Pool - Replacement 1,401,329 225,000 - 1,061,594 1,286,594 472% 674 Fire Equip Replacement 133,000 125,000 - - 125,000 - Total Internal Service Funds 6,520,022 6,671,570 - 1,061,594 7,733,164 15.9% Total Other Funds (non-General
Fund) 44,658,374 37,970,742 - 833,671 38,804,413 2.2%
Total All Funds $ 96,651,557 $ 91,156,848 $ 68,896 $ 1,227,569 $ 92,453,313 1.4% Attachment 3
City of Pacifica
FY 2025-26 Mid-Year Budget
Summary of Revenue & Transfers In by Fund
9.c
Packet Pg. 245 Attachment: Attachment 3 - FY 2025-26 Summary of Revenues and Transfers In by Fund (6166 : Mid-Year Budget Review FY 2025-26) Fund Name FY 2024-25
Actual
FY 2025-26
Original
Budget
Previously
Approved
Mid-Year
Adjustments
FY 2025-26
Revised
Budget
% Change
over
Adopted
101 GENERAL FUND $ 48,097,986 $ 53,217,898 $ 1,695,673 $ 289,576 $ 55,203,147 3.7%
SPECIAL REVENUE AND CAPITAL FUNDS
207 Supplemental Law Enf Serv 92,383 137,219 - 59,775 196,994 43.6% 209 Measure A 2,317,814 2,382,873 - - 2,382,873 -
210 Gas Tax 2,233,259 2,136,430 477,626 40,000 2,654,056 24.2% 211 Measure W 1,144,714 436,000 - - 436,000 -
213 Street Improvement 2,056,167 305,858 - 38,570 344,428 12.6% 216 NPDES Stormwater 393,172 461,100 30,359 - 491,459 6.6% 221 Housing Action Fund 764,992 626,485 - - 626,485 -
224 Housing In-Lieu - - - - - -
225 Parking In-Lieu - - - - - -
227 Davies Trust 100,000 - 1,830,000 - 1,830,000 -
228 PB&R 97,074 43,637 - (31,757) 11,880 -72.8%
229 Tree Replacement 6,699 - - - - -
238 Disaster Accounting 1,184,240 125,000 - - 125,000 - 293 Housing Successor - - - - - -
312 Highway 1 Improvement 26,337 39,048 - (47) 39,001 - 314 Manor Drive Improvement 541,388 - - - - -
319 Planned Local Drainage 2,442 2,100 - - 2,100 -
322 General Capital Improvement 2,898,173 547,987 - 65,273 613,260 11.9% 323 Frontierland Remediation - - - - - -
326 Parks and Playfield 3,393 - 109,072 - 109,072 -
331 Pacifica Library - 50,000 - - 50,000 -
Total Special Revenue & Capital
Funds 13,862,248 7,293,737 2,447,057 171,815 9,912,609 35.9%
DEBT SERVICE FUNDS
440 Debt Service Fund $ 2,462,490 2,573,945 - - 2,573,945 - Total Debt Service Funds 2,462,490 2,573,945 - - 2,573,945 -
ENTERPRISE FUNDS
518 Sewer Utility $ 21,890,171 37,328,362 658,105 848,470 38,684,936 3.6% 535 Beach Parking $ 505,888 568,576 - (1,980) 566,596 - Total Enterprise Funds 22,396,060 37,896,938 658,105 846,489 39,251,532 3.6%
INTERNAL SERVICE FUNDS
665 Self Insurance - Dental Plan 67,236 302,616 - - 302,616 - 666 Self Ins - Workers Comp 1,057,306 1,457,211 - - 1,457,211 - 667 Self Ins - General Liability 2,634,829 3,343,042 - 14,358 3,357,400 - 671 Motor Pool - Operating 1,232,537 1,270,813 22,497 (91,418) 1,201,891 -5.4% 672 Motor Pool - Replacement 1,113,250 - 414,803 1,061,594 1,476,397 - 674 Fire Equip Replacement - - - - - -
Total Internal Service Funds 6,105,158 6,373,682 437,300 984,534 7,795,516 22.3% Total Other Funds (non-General Fund) 44,825,956 54,138,302 3,542,461 2,002,838 59,533,602 10.0% Total All Funds $ 92,923,941 $ 107,356,200 $ 5,238,134 $ 2,292,414 $ 114,736,748 6.9% Attachment 4
City of Pacifica
FY 2025-26 Mid-Year Budget
Summary of Expenses & Transfers Out by Fund
9.d
Packet Pg. 246 Attachment: Attachment 4 - FY 2025-26 Summary of Expenditures and Transfers Out by Fund (6166 : Mid-Year Budget Review FY 2025-26) Fund Name Fund Balance
6/30/2025
Revenues &
Transfers In
Revised Budget
Expenditures &
Transfers Out
Revised Budget
Revenue Over
(Under)
Expenditures
Projected
Fund Balance
6/30/2026
101 GENERAL FUND $ 22,635,647 $ 53,648,900 $ 55,203,147 $ (1,554,247) $ 21,081,400
SPECIAL REVENUE FUNDS
207 Supplemental Law Enf Serv 560,504 150,000 196,994 (46,994) 513,510 209 Measure A 544,394 1,491,000 2,382,873 (891,873) (347,479) 210 Gas Tax (322,366) 2,275,064 2,654,056 (378,992) (701,358) 211 Measure W 115,960 739,058 436,000 303,058 419,018
213 Street Improvement 1,248,430 591,210 344,428 246,782 1,495,212 216 NPDES Stormwater 51,156 210,700 491,459 (280,759) (229,603) 221 Housing Action Fund 2,708,634 - 626,485 (626,485) 2,082,149 224 Housing In-Lieu 290,966 - - - 290,966
225 Parking In-Lieu 138,490 1,764 - 1,764 140,254
227 Davies Trust 2,448,609 - 1,830,000 (1,830,000) 618,609 228 PB&R 2,117,428 - 11,880 (11,880) 2,105,548
229 Tree Replacement (55,867) 55,867 - 55,867 -
238 Disaster Accounting 10,095,537 - 125,000 (125,000) 9,970,537 293 Housing Successor 372,513 - - - 372,513
312 Highway 1 Improvement 711,911 5,000 39,001 (34,001) 677,910 314 Manor Drive Improvement 266,060 - - - 266,060
315 Aircraft Noise Project 448 - - - 448
319 Planned Local Drainage 336,837 25,000 2,100 22,900 359,737 322 General Capital Improvement (564,926) 595,000 613,260 (18,260) (583,186) 323 Frontierland Remediation 151,351 75,000 - 75,000 226,351 326 Parks and Playfield 594,866 100,000 109,072 (9,072) 585,794 331 Pacifica Library 58,437 - 50,000 (50,000) 8,437
Total Special Revenue & Capital Funds 21,869,372 6,314,663 9,912,609 (3,597,946) 18,271,426
DEBT SERVICE FUNDS
440 Debt Service Fund 679,452 1,968,546 2,573,945 (605,399) 74,053 Total Debt Service Funds 679,452 1,968,546 2,573,945 (605,399) 74,053
ENTERPRISE FUNDS
518 Sewer Utility 34,576,545 22,263,040 38,684,936 (16,421,896) 18,154,649 535 Beach Parking (52,828) 525,000 566,596 (41,596) (94,424) Total Enterprise Funds 34,523,717 22,788,040 39,251,532 (16,463,492) 18,060,225
INTERNAL SERVICE FUNDS
665 Self Insurance - Dental Plan 338,147 302,616 302,616 - 338,147 666 Self Ins - Workers Comp 613,000 1,457,211 1,457,211 - 613,000 667 Self Ins - General Liability 1,011,278 3,317,713 3,357,400 (39,687) 971,591 671/2 Motor Pool 2,246,549 2,530,624 2,678,288 (147,664) 2,098,884 674 Fire Equip Replacement 207,852 125,000 - 125,000 332,852 Total Internal Service Funds 4,416,825 7,733,164 7,795,516 (62,352) 4,354,473 Total Other Funds 61,489,366 38,804,413 59,533,602 (20,729,189) 40,760,177 Total All Funds $ 84,125,013 $ 92,453,313 $ 114,736,748 $ (22,283,436) $ 61,841,577 *
** Negative balances will be reviewed during the budget development process and at year-end to reduce and/or eliminate deficit in these funds Attachment 5
City of Pacifica
FY 2025-26 Revised Budget (Mid-Year)
Summary of Fund Balances
Enterprise Funds and Internal Service Funds include capital investments and depreciation, the above does not represent cash balance
9.e
Packet Pg. 247 Attachment: Attachment 5 - FY 2025-26 Fund Balance Summary by Fund (6166 : Mid-Year Budget Review FY 2025-26) Attachment 6
FY 2025-26 Service Enhancement Updates
FY 2025-26 Service Enhancement Updates....................................................................... 1 Police Department....................................................................................................... 1 Community Development Department.......................................................................... 1 City Clerk’s Office........................................................................................................ 3 Parks, Beaches, and Recreation Department................................................................. 4 Economic Development Department ............................................................................ 4 Finance and Administrative Services Department .......................................................... 5 Wastewater Treatment Plant ........................................................................................ 5 Police Department
Service Enhancement Update From Department
6) Portable Radio
Replacement
All of the City’s new portable radios have arrived and have been distributed to staff. This enhancement has dramatically improved communications throughout the Pacifica Police
Department.
Community Development Department
Service Enhancement Update From Department
2) Coastal Access &
Resilience Program
and Shoreline
Adaptation Program:
Supports long term
coastal hazard and
sea level rise
planning through
robust community
engagement and
technical analysis,
as required by the
certified Local
Community Development held a study session with City Council on January 23, 2026, to provide an overview of the Shoreline Adaptation Program and Coastal Access and Resiliency
Program, steps to initiate the Special Shoreline Resilience Areas, and get input on the community engagement related to the City’s shoreline adaptation planning. Council appointed an Ad Hoc Subcommittee to provide guidance on community engagement for the preparation of an RFP.
Staff are also preparing a grant application for Senate Bill 1 Sea Level Rise Adaptation Planning (Track 1) for submittal in FY 25/26 Q3 to fund community engagement planning and activities, development of the Coastal Access and Resiliency Program and
9.f
Packet Pg. 248 Attachment: Attachment 6 - FY 2025-26 Service Enhancements Progress (6166 : Mid-Year Budget Review FY 2025-26) 2 Coastal Land Use
Plan (LCLUP).
initial stages of the Shoreline Adaptation Plan/Program, and initiation of the Special Shoreline Resiliency Areas. Coastal Quest, the non-profit working with Ocean Protection Council, is providing technical assistance on the proposal and
application.
7) Climate Action and
Resilience Plan
Implementation:
Funds a part time
program manager
and an 11-month
civic spark fellow to
support community
engagement and
implementation of
climate goals.
The City Council adopted the Climate Action and Resilience Program (CARP) on July 14, 2025, wrapping up two years of coordination, collaboration, and work by staff and the Climate Action & Adaptation Taskforce. Community Development hired a CivicSpark fellow to assist with early implementation of the CARP, and staff, including the part-time program manager and a fellow, successfully launched the newly formed Climate Action and Resiliency Committee in FY 25/26 Q3.
8) Triennial Building
Code Update:
Required update to
adopt the 2025
California building
standards code by
the state mandated
deadline of
December 31, 2025.
Community Development held two City Council study sessions on the 2025 California Building Codes and Standards, known as the Triennial Building Code Update, prepared local amendments, and adopted code updates in November 2025. The updates went into effect on January 1, 2026.
10) Local Coastal Land
Use Plan – General
Implementation &
Ord. Updates:
Develops an
overarching
implementation
plan and update
zoning regulations
to reflect the newly
certified LCLUP.
Community Development hired a CivicSpark fellow to assist with the early implementation of the LCLUP. In FY25/26 Q2,
Community Development submitted three Local Coastal Plan Amendments to the Coastal Commission for certification – Outdoor Commercial Activities, Short-Term Rentals, and the Sharp Park Specific Plan. The Short-Term Rental Ordinance is expected to go to a Coastal Commission hearing Q4. Staff and the CivicSpark fellow continue to work on Local Coastal Plan Amendments to align the City’s Implementation Plan with the certified LCLUP, as well as the efforts described under the Shoreline Adaptation Program above.
Fund 221 - Housing
Element Program HE-I3 – Public Sites.
Community Development engaged a consultant to begin work on HE-I-3, Master Planning for Public Sites, and have developed a workplan and budget. City staff and the consultant are also working with the Partnership for the Bay’s Future fellow and community partners (HEART of San Mateo and Pacifica Resource Center) on developing an inclusive community engagement plan.
Preliminary outreach to stakeholders will begin in FY2025-26 Q4.
9.f
Packet Pg. 249 Attachment: Attachment 6 - FY 2025-26 Service Enhancements Progress (6166 : Mid-Year Budget Review FY 2025-26) 3 Fund 221 - Housing
Element
Implementation,
General – On-Call
Services.
Community Development worked with Partnership for the Bay’s Future fellow and our on-call consultant to develop an internal tracking tool to assist with monitoring and documenting progress, as well as developing CDD’s workplan. This tool was essential in pulling together information related to the City’s 14 Housing Element Programs for our 2025 Housing Element Annual Progress Report. Other accomplishments include holding a joint CC/PC study session with the HEART of San Mateo regarding updates to the Inclusionary Housing and Density Bonus
Ordinances and preparing draft legislation to bring forward in FY2025-26 Q4.
City Clerk’s Office
Service Enhancement Update From Department
11) Library
Modernization
Project Support -
$50,000 (Ongoing) –
Continues strategic
communications,
outreach, and web
hosting support
through external
consultants for the
Library
Modernization
Project.
The Library Modernization Project initiative aligns with City Council Strategic Plan FY2025-26 Goals under Goal “2.
Improve and steward City infrastructure, streets, and facilities” and Strategy “2C. Broaden community awareness of Library projects”. Council direction for the FY2025-26 Budget shifted the requested $50,000 (Ongoing) expense from the General Fund, City Manager’s Office, Contractual Services to the special expense account 331411.52106 for the Library Fund / Contractual Services within the Engineering Division. The City entered the current Agreement with Southwest Strategies (dba BergDavis Public Relations) for this effort in November 2024 and the term of the Agreement was extended through June 30, 2026 by Amendment 1 to the Agreement. Actual expenditures and projected expenditures for FY2025-26 for this effort are within the budgeted amount for FY2025-26. This expense is categorized as an ongoing expense, but the special fund account 331411.52106 balance remaining will be exhausted with the FY 2025-26 budgeted amount, so the continuing
expense to be budgeted at the same level for FY2026-27 would need to identify additional revenue funding for the special fund account or budget the expenses to the General Fund, City Manager’s Office (or City Clerk’s Office), Contractual Services as was done for the prior FY2024-25 for these
expenditures. Continued public relations and outreach will be necessary to achieve the community support needed for any potential future ballot measure for construction funding needed for this capital improvement project.
9.f
Packet Pg. 250 Attachment: Attachment 6 - FY 2025-26 Service Enhancements Progress (6166 : Mid-Year Budget Review FY 2025-26) 4 Parks, Beaches, and Recreation Department
Service Enhancement Update From Department
9) Childcare Services:
Aligning Revenue
with Operational
Needs
This enhancement is moving forward as planned. The Child Care program continues to utilize the increased part-time staffing allocation as intended, which has helped align staffing levels with actual enrollment demands and operational needs. The
associated revenue continues to support the staffing adjustments as approved at budget adoption.
1) Support for
Expanded Senior
Programs, Training,
and Public
Outreach
Since this enhancement was submitted and approved, San Mateo County Older Americans Act (OAA) funding was reduced, resulting in a significant revenue shortfall. As a result, the planned expansion of senior programs, staff training, and increased public outreach efforts has not been feasible at this time, as the division has needed to focus on maintaining existing service levels through expenditure reductions. The specifics of this change will be part of the mid-year budget request for a reduction of revenue and the associated spending.
Economic Development Department
Service Enhancement Update From Department
3) Conduct
Feasibility
Evaluation of
District-Based
Financing
This item is delayed and will be re-requested at budget adoption with General Fund allocation. Development Impact Fee (DIF) funds have been allocated; however, work cannot begin due to current staff capacity constraints. Although a consultant has been selected, staff resources are prioritized toward Beach Boulevard, preventing project initiation at this time.
5) Economic
Development
Division
Reorganization
This request has been completed as the Economic and Housing Development Manager has been hired and started in this role as of January 2026.
12) Implementation of
New STR
Ordinance
Requirements
All STR-related information, including both the prior and current ordinances, operational requirements, the list of permitted STRs by zone, information on how to report STR nuisances, and the two newly created online portals with step-by-step application instructions and FAQs, is publicly available on the City’s website.
This complies with the ordinance requirements and reflects an education-first approach to implementation. City of Pacifica maintains this information on the Short-Term Rental Program webpage. Staff is also working on developing a consistent
9.f
Packet Pg. 251 Attachment: Attachment 6 - FY 2025-26 Service Enhancements Progress (6166 : Mid-Year Budget Review FY 2025-26) 5 signage template which, once completed, will be shared with all permitted STRs.
While information and reporting resources are publicly available, the City does not publish active Code Enforcement records for any type of violation on its website. STR-related enforcement matters are handled in the same manner as all other code violations, consistent with the City’s long-standing
administrative practices.
Finance and Administrative Services Department
Service Enhancement Update From Department
13) Transfer to Motor
Vehicle Fund
The $200k transfer from the General Fund to the Motor Pool Fund was completed successfully in order to build balance for future purchases.
6) Cost Allocation
Plan, User Fee
Study and
Development
Impact Fee Study
All three phases of the study are underway. The Cost Allocation Plan will be ready to be incorporated into the FY 26-27 budget process. The Development Impact Fee and User Fee portions of the study are slightly behind schedule. Public outreach is planned to be started in Q4.
Wastewater Treatment Plant
Service Enhancement Update From Department
Fund 518 – Hurricane
Vacuum Rental
This item remains in progress. The equipment will be rented rather than purchased, with the rental scheduled to align with the dry season maintenance period. The rental is anticipated to occur in April or May of the current fiscal year and the project remains on track.
9.f
Packet Pg. 252 Attachment: Attachment 6 - FY 2025-26 Service Enhancements Progress (6166 : Mid-Year Budget Review FY 2025-26)
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
3/9/2026
1 SUBJECT:
Consideration and Adoption of Resolution Appointing Yulia Carter as Interim City Manager and Approving the Employment Agreement between the City of Pacifica and Yulia Carter for Interim City Manager Services
RECOMMENDED ACTION:
Adopt Resolution Appointing Yulia Carter as Interim City Manager and Approving the Employment Agreement between the City of Pacifica and Yulia Carter for Interim City Manager Services.
STAFF CONTACT:
Michelle Marchetta Kenyon, City Attorney
BACKGROUND/DISCUSSION:
The current City Manager, Kevin Woodhouse, is retiring as of March 11, 2026. The City Council is in the final stages of a recruitment process for a permanent City Manager that will not be completed prior to Mr. Woodhouse’s retirement. As a result, the City is in need of appointing an Interim City Manager until a permanent City Manager has started employment with the City.
Following an interview and subsequent deliberations for the Interim City Manager position, the City Council has chosen to appoint Yulia Carter as Interim City Manager until a permanent City Manager is appointed.
In accordance with Government Code section 54953(c)(3), the City Council is to receive an oral summary report of the salary and compensation, including fringe benefits, paid to any local agency executive prior to taking final action. Under the terms of this Interim Agreement, the Interim City Manager would be entitled to receive the following compensation and benefits: A monthly salary of $24,666.67 which equates to an annual salary of approximately $296,000, the same holidays, sick leave and long term disability benefits, retirement benefits, insurance benefits including but not limited to life, health and dental coverage, and vacation in the same manner provided to her as Assistant City Manager, as detailed in Resolution No 65-2025 approving compensation and benefits for Unrepresented Management and Confidential Employees Group. .
Yulia Carter has more than 20 years of experience in local government leadership, including the past five years with the City of Pacifica where she has served in executive management roles supporting citywide operations and strategic initiatives. Ms. Carter currently serves as the Assistant City Manager and, over the course of her tenure with the City, has provided executive leadership and coordination across key operational and administrative functions, including Finance, Human Resources, Information Technology, Risk Management, and Economic Development. During this time, she has supported the City Manager and City Council in advancing citywide strategic initiatives, budget development, labor negotiations, and complex policy and operational projects.
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Throughout her career, Ms. Carter has held progressively responsible leadership roles overseeing finance, strategic planning, organizational development, and municipal operations across a variety of local government organizations. Prior to joining the City of Pacifica, Ms.
Carter served as Assistant City Manager for the City of Sausalito, Deputy City Manager for the City of Half Moon Bay, Administrative Services Director for the Town of Los Altos Hills, Risk Manager and Senior Management Analyst for the City of San Carlos, and Budget Manager/Fiscal Officer for the City of Kansas City, Missouri.
She has also completed public policy executive programs at Stanford University’s Local Governance Summer Institute and the University of California, Berkeley Executive Program in Strategic Management. A copy of Ms. Carter’s resume is attached.
Ms. Carter’s employment as Interim City Manager would begin on March 12, 2026. The Council is asked to approve the attached Resolution, which appoints Yulia Carter as Interim City Manager and authorizes the Mayor to execute the attached Employment Agreement with Yulia Carter for Interim City Manager Services.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
“A Strong Workforce Infrastructure” includes strategies to address employee retention and attraction challenges, engaging staff in decision-making, and recognizing staff.
FISCAL IMPACT:
Approval of this Employment Agreement will result in cost savings during the Interim City Manager period. The monthly salary of the Interim City Manager will be approximately $1,500 less than the compensation currently provided to the City Manager. In addition, the Assistant City Manager position will not be backfilled during the interim period, resulting in additional salary savings to the City of about $21,113 per month.
ORIGINATED BY:
City Attorney's Office
ATTACHMENT LIST:
Attachment A: Employment Agreement Between the City of Pacifica and Yulia Carter for Interim City Manager Services (PDF)
Attachment B: Resume of Yulia Carter (PDF)
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RESOULUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPOINTING YULIA
CARTER AS INTERIM CITY MANAGER AND APPROVING THE EMPLOYMENT
AGREEMENT BETWEEN CITY OF PACIFICA AND YULIA CARTER FOR INTERIM CITY
MANAGER SERVICES
WHEREAS, the City of Pacifica (“City”) has a need to hire an Interim City Manager; and WHEREAS, Yulia Carter (“Interim City Manager”) possesses the skills and expertise necessary to perform these services; and
WHEREAS, the City desires to enter into an Employment Agreement with Yulia Carter to set forth the terms and conditions of her Interim City Manager’s duties as Interim City Manager; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pacifica hereby appoints Yulia Carter as Interim City Manager and approves the Employment Agreement Between City of Pacifica and Yulia Carter for Interim City Manager Services in substantially the same form attached hereto as Exhibit "A" and authorizes and directs the Mayor to execute same for and on behalf of the City of Pacifica. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 9
th day of March, 2026, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Christine Boles, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney 10 Packet Pg. 255
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EXHIBIT A
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4939-0788-9044 v6
EMPLOYMENT AGREEMENT BETWEEN CITY OF PACIFICA AND
YULIA CARTER FOR INTERIM CITY MANAGER SERVICES
THIS AGREEMENT between the CITY OF PACIFICA ("City") and YULIA CARTER ("Employee") is executed this 9th day of March, 2026.
RECITALS
WHEREAS, City desires to retain the services of Employee to serve as the Interim City Manager.
WHEREAS, Employee desires to serve as Interim City Manager of the City of Pacifica.
WHEREAS, the City Council, as appointing power, and Employee desire to agree in writing to the terms and conditions of Employee's employment as Interim City Manager.
AGREEMENT
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. DUTIES.
(a) City agrees to employ Employee as Interim City Manager of the City of Pacifica to perform the functions and duties specified in the ordinances and resolutions of City and to perform other legally permissible and proper duties and functions as the City Council may from time to time assign. (b) Employee shall perform her duties to the best of her ability in accordance with the highest professional and ethical standards of the profession and shall comply with all general rules and regulations established by City. (c) Employee shall not engage in any activity which is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement and annually thereafter, Employee must complete disclosure forms required by law.
2. TERM.
(a) The term of this Agreement shall be from March 12, 2026 (“Effective Date”) until the position of City Manager is permanently filled by the City Council, unless terminated earlier by either party in accordance with the provisions set forth in Paragraph 3 or by the event of the death or permanent disability of Employee. (b) Employee agrees to remain in the exclusive employ of City during the term of this Agreement and not to be otherwise employed during the term of this Agreement.
(c) In the event this Interim City Manager position extends beyond the end of the current fiscal year, the City and Employee agree to re-open the terms of this contract.
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Packet Pg. 257 Attachment: Attachment A: Employment Agreement Between the City of Pacifica and Yulia Carter for Interim City Manager Services (6167 :
4939-0788-9044 v6 - 2 -
3. RESIGNATION AND TERMINATION.
(a) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from her position as Interim City Manager of City. Employee may terminate this Agreement by submitting written notice of her resignation to City. Employee shall give the City thirty (30) days written notice of her intention to resign.
(b) Employee serves at the pleasure of the City and nothing herein shall be taken to prevent, limit or otherwise interfere with the right of the City to terminate the services of Employee as Interim City Manager with or without cause.
There is no express or implied promise made to Employee for any form of continued employment as the Interim City Manager.
(c) In the event the City requests Employee to resign from her position as Interim City Manager, or the Employee chooses to do so, the Employee shall have the option of returning to her position as Assistant City Manager on the same terms and conditions of employment that Employee received prior to the effective date of this Agreement, including any cost of living adjustments normally received for Employee’s position as Assistant City Manager during Employee's tenure as Interim City Manager.
4. COMPENSATION AND BENEFITS.
(a) City agrees to pay Employee for her services rendered pursuant hereto as Interim City Manager an annual salary of Two Hundred Ninety Six Thousand Dollars ($296,000) payable in installments at the same time as other employees of the City are paid.
(b) City will provide Employee with the same holidays, sick leave and long term disability benefits, retirement benefits, insurance benefits including but not limited to life, health and dental coverage, and vacation in the same manner provided to her as Assistant City Manager as detailed in Unrepresented Management and Confidential Employees Resolution No 65-2025.
5. INDEMNIFICATION.
City shall defend, save harmless, and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as Interim City Manager. City will compromise and settle any such claim or suit and the amount of any settlement or judgment rendered thereon. Said indemnification shall extend beyond termination of employment, and the otherwise expiration of this Agreement, to provide full and complete protection to Employee as described herein, for any acts undertaken or committed in her capacity as Interim City Manager, regardless of whether the notice of filing of a lawsuit for such tort, claim, demand, or other legal action occurs during or following Employee's employment with City as Interim City Manager. Further, following employment with City, City agrees to pay Employee reasonable consulting fees and travel expenses in the event Employee serves as a witness, advisor and or consultant to City regarding any pending litigation involving City.
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Packet Pg. 258 Attachment: Attachment A: Employment Agreement Between the City of Pacifica and Yulia Carter for Interim City Manager Services (6167 :
4939-0788-9044 v6 - 3 -
6. CONFLICT OF INTEREST PROHIBITION.
It is further understood and agreed that because of the duties of the Interim City Manager within and on behalf of the City of Pacifica, and its citizenry, the Employee shall not, during the term of this Agreement, individually, as a partner, joint venturer, officer or shareholder, invest or participate in any business venture conduction business in the corporate limits of the City of Pacifica except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the City. For and during the term of this Agreement, Employee further agrees, except for a personal residence or residential property acquired or held for future use as her personal residence, not to invest in any other real estate property improvements within the corporate limits of the City of Pacifica, without the prior consent of the City Council.
7. OTHER TERMS AND CONDITION OF EMPLOYMENT.
The City Council, by resolution, shall fix any other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with provisions of this Agreement or law.
8. GENERAL EXPENSES.
City recognizes and agrees to pay the job-related expenses incurred by Employee in the course of her duties. .
9. NOTICES.
Any notices required by this Agreement shall be in writing and either given in person or by first class mail with postage prepaid and addressed as follows:
TO CITY: Mayor
City of Pacifica
170 Santa Maria Avenue
Pacífica, CA 94404
TO EMPLOYEE: Yulia Carter
Address on file with Human Resources
10. ATTORNEY'S FEES.
In the event of any mediation, arbitration or litigation to enforce any of the provisions of this Agreement, each party shall bear its own attorney's fees and costs.
11. ENTIRE AGREEMENT.
This Agreement is the final expression of the complete agreement of the parties with respect to the matters specified herein and supersedes all prior oral or written understandings. Except as prescribed herein, this Agreement cannot be modified except by written mutual agreement signed by the parties.
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Packet Pg. 259 Attachment: Attachment A: Employment Agreement Between the City of Pacifica and Yulia Carter for Interim City Manager Services (6167 :
4939-0788-9044 v6 - 4 -
12. ASSIGNMENT.
This Agreement is not assignable by either City or Employee.
13. SEVERABILITY.
In the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the parties, the remainder of the Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portion of the Agreement.
14. EFFECTIVE DATE.
This Agreement shall be deemed effective on the Effective Date.
IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed on its behalf by its Mayor. It has also been executed by the Employee on the date first above written.
CITY OF PACIFICA
By:____________________________
Christine Boles
Mayor
EMPLOYEE
By:____________________________
Yulia Carter
APPROVED AS TO FORM:
By:____________________________
Michelle Marchetta Kenyon
City Attorney
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Packet Pg. 260 Attachment: Attachment A: Employment Agreement Between the City of Pacifica and Yulia Carter for Interim City Manager Services (6167 :
1 EXECUTIVE SUMMARY: Innovative and results-driven municipal executive with more than 20 years of progressive leadership experience in city management, fiscal stewardship, and organizational development. Proven record of leading complex, multidisciplinary departments, including Finance, Human Resources, IT, and Economic Development, across large, mid-size, diverse, and coastal communities. Highly skilled in strategic planning, labor relations, and community engagement, with awardwinning accomplishments in financial reporting, smart-city innovation, strategic workforce development.
PROFESSIONAL EXPERIENCE
City of Pacifica April 2021 – Present
Assistant City Manager Supervised 10 staff; General Fund Budget: $53.2M Key Duties:
Provided executive leadership and direct oversight for Economic Development, Finance, Information Technology, Human Resources, and Risk Management departments. Served with delegated authority to lead citywide operations and initiatives, policy implementation, and interdepartmental coordination in the City Manager’s absence. Facilitated the City’s strategic planning and goal-setting initiatives, managed labor negotiations, budget development, key economic development initiatives, business improvement districts, and complex special projects across multiple departments.
Key Accomplishments:
• Led labor negotiations and closed eight labor agreements in record time, improved compensation structure and retention by negotiating and implementing targeted equity adjustments through creative funding strategies. • Played a key leadership role in advancing major strategic initiatives, including the General Plan updates, Local Coastal Use Plan, Short-Term Rental Ordinance, technology/systems upgrades and ERP implementation, etc. • Launched the development of the City’s virtual assistant Rose AI, which won the MISAC Innovation and Helen Putnam Awards for the first of its kind implementation in California, enhancing public access and transparency. • Developed a citywide training academy and ongoing internship program to support workforce development and succession planning; served as liaison to various committees/commissions and represented the City, various Boards. • Spearheaded Vision 2025 & Beyond, an award-winning long-range fiscal sustainability program combining strategic planning, innovative economic development with robust community engagement to ensure long-term fiscal sustainability. Launched Shop Pacifica e-gift card program and Workcation tourism campaigns, boosting local revenues and economic resilience in marketing the City as a coastal destination. • Oversaw the City’s financial reporting and redesigned the format and processes into award-winning budget documents and ACFRs, securing multiple GFOA and CSMFO excellence awards. • Conducted tax studies that led to the passage of a 0.25c Transaction and Use Tax (2022) and an increase in Transient Occupancy Taxes (2024), making a significant milestone in Pacifica’s recent history.
City of Sausalito November 2018 – April 2021
Assistant City Manager / Administrative Services Supervised 12 staff; General Fund Budget: $19.0M Key Duties:
Managed administrative operations, including Finance, HR, Risk Management, IT, and Property Management. Led the City’s General Plan update and strategic planning efforts. Launched and implemented citywide Economic Development Program.
Key Accomplishments:
• Launched an Economic Development Program to attract businesses, foster growth in the local economy, and boost the hospitality industry.
• Optimized a multi-million-dollar property management program, acquired new properties, renegotiated leases, set market rates, and increased revenues. Developed and managed a citywide COVID relief program. • Advanced fiscal sustainability through implementation of modified zero-based budgeting and service-level–driven financial decision-making, resulting in award-winning budget and ACFRs.
YULIA CARTER / 650-740-2604 / [email protected]
10.b
Packet Pg. 261 Attachment: Attachment B: Resume of Yulia Carter (6167 : Interim City Manager Appointment and Employment Agreement - Carter) 2 • Managed Sewer Rate Study, Cost Allocation Plan, and Development Impact & User Fees to ensure General Fund recovery and implemented a new tax structure for Transient Occupancy and Business License Taxes. • Redesigned strategic planning process, assisted Council with development of a multi-year Strategic Plan, including the City's Mission, Vision, Goals, and Strategies and a staff-driven Implementation Action Plan (IAP) accountability tool.
City of Half Moon Bay April 2015 – November 2018
Deputy City Manager / Administrative Services Supervised 10 staff; General Fund Budget: $18.6M Key Duties:
Oversaw citywide financial management and budgeting, human resources, information technology, risk management, emergency preparedness, and strategic planning. Represented the City on regional and professional boards and provided senior executive leadership on complex policy, operational, and organizational matters.
Key Accomplishments:
• Introduced modified zero-based budgeting, ensuring fiscal responsibility and transparency, and prepared awardwinning financial reports. Implemented Popular Annual Financial Reports (PAFRs), the first city in San Mateo and Santa Clara Counties, earning GFOA recognition and improving public engagement. • Audited top revenue sources, and improved revenue assessments, collections, and discoveries for all lodging establishments, resulting in over $700,000 in back taxes and over $300,000 in additional annual revenues. • Strengthened emergency preparedness and risk management practices citywide and managed grants. • Developed a bilingual Open Government Financial Transparency platform, enhancing public engagement and accessibility with instructional videos in English and Spanish to reach the City’s large Latino population. • Assisted with the development and implementation of the Half Moon Bay NET (Network-Engage-Transform) Citizens' Academy as a community-building tool.
Town of Los Altos Hills September 2012 – April 2015
Administrative Services Director Supervised 4 staff; General Fund Budget: $12.0M Key Duties:
Managed all administrative services, including Finance, IT, HR, and Risk Management. Served as a liaison to the 11-member Finance and Investment Committee, engaged in all Town initiatives, prepared Budget, and managed general operations.
Key Accomplishments:
• Led key projects, including budget reorganization, fee studies, cost allocation plan, ERP implementation, restructuring the City Attorney’s contract, developed policies and procedures, managed RFPs • Conducted complex financial analysis and developed and implemented the concessionaire operation management model for the Westwind Community Barn.
City of San Carlos April 2007 – September 2012
Risk Manager / Senior Management Analyst Supervised 3 staff; General Fund Budget: $62M Key Duties:
Managed Risk Management Division, including risk, safety, and liability programs. Assisted with Budget preparation and provided analytical support to the City Manager on a variety of strategic projects and initiatives. Served on the labor negotiation team with six bargaining groups, engaging in concession bargaining.
Key Accomplishments:
• Improved risk management policies, reduced liabilities and enhanced safety standards, placed the City in the top tier of the insurance pool for implementation of risk management best practices. Secured over 250K in grant funding, • Played a key role in the outsourcing of services during the recession by developing service delivery options and managing implementation, including contracting park maintenance to a private provider, transitioning police services to the San Mateo County Sheriff’s Office, and sharing fire services with the City of Redwood City, resulting in significant cost savings and operational efficiency.
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Packet Pg. 262 Attachment: Attachment B: Resume of Yulia Carter (6167 : Interim City Manager Appointment and Employment Agreement - Carter) 3 • Prepared various RFPs and managed high-priority projects, including new tax measure studies, consolidation of services, ADA Transition Plan, needs assessment and implementation of ERP system, citywide grant management program, organizational studies, and strategic planning.
City of Kansas City, Missouri June 2003 – May 2007
Budget Manager / Fiscal Officer Supervised 3 staff; General Fund Budget: $550M Key Duties:
Completed the nationally recognized L.P. Cookingham Management Fellowship. Advanced from Management Analyst I–III to Fiscal Officer (IT Department), served as CMO liaison to public safety, water services, community development, IT, and internal audit departments, overseeing approx. $300M of the budget. Secured multiple budget excellence GFOA awards, strengthened fiscal accountability and data-driven decision-making, improved operational program efficiencies. Created the “Citizens’ Budget,” an award-winning, resident-focused financial document that became an ongoing publication.
EDUCATION
• Stanford University, Stanford, CA – LGSI Public Policy Executive Program (2021) • University of California, Berkeley, Berkeley, CA – Berkeley Executive Program in Strategic Management (2011) • Hauptmann School of Public Affairs, Park University, Parkville, MO – Master of Public Administration, with Honors • Voronezh State University, Voronezh, Russia – BA in History, Political Science, and Intercultural Communication
AWARDS AND RECOGNITION
• League of California Cities Helen Putnam Award for Excellence for the RoseAI virtual assistant initiative, advancing innovation, accessible and efficient municipal service delivery (2025). • California Association for Local Economic Development (CALED) Grand Prize Program Excellence Award (2024) for Vision 2025 & Beyond initiative (2024).
• Municipal Information Systems Association of California (MISAC) Innovation Award for groundbreaking Rose AI Virtual Assistant search and voice tool (2024).
• Government Finance Officers Association (GFOA) Award for Excellence in Government Financial Reporting (8 awards, multiple agencies).
• Government Finance Officers Association (GFOA) Budget Excellence Awards (15 awards, multiple agencies). • California Society of Municipal Finance Officers (CSMFO) Budget Excellence Awards and recognition in CSMFO Magazine (6 awards across multiple agencies)
• ICMA Garvey Award Recipient (2006), ICMA Young Professional Scholarship Winner (2005), Outstanding International Student Representative for the State of Missouri Award (2003).
PROFESSIONAL CONTRIBUTIONS
• League of CA Cities Governance, Transparency and Labor Relations Policy Committee Member • Vice Chair of ICMA Global Engagement Committee
• Advisory Board Member for the Local Governance Summer Institute at Stanford (LGSI) • Collaborated with Stanford students over the course of two years, co-teaching the Government in Action course and guiding the Electric Vehicle Strategic Plan project to promote sustainable governance. • Presented at the Local Governance Summer Institute (LGSI) Executive Program on strategic planning and fiscal sustainability, 2024, 2025.
• Presented on "Leading in Uncertain Times" at the Taituara Local Government National Conference in New Zealand, representing ICMA, November 2023.
• Presented on “Digital Transformation” at Sustainable Urban Development Seminar in Eswatini, representing ICMA, September 2025.
• Participated in international professional local government exchanges and study tours in the Netherlands, South Africa, Ireland, Slovakia, China, Philippines, New Zealand, Eswatini, and Saudi Arabia.
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Packet Pg. 263 Attachment: Attachment B: Resume of Yulia Carter (6167 : Interim City Manager Appointment and Employment Agreement - Carter)
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
3/9/2026
1 SUBJECT:
City Manager’s Farewell Report
RECOMMENDED ACTION:
The City Manager’s “Farewell Report” is intended to provide observations about numerous Pacifica issues by reflecting on numerous accomplishments and emphasizing challenges and opportunities facing Pacifica moving forward. This is an informational item only, no action required by the City Council.
STAFF CONTACT:
Kevin Woodhouse, City Manager
(650) 738-7409
[email protected]
BACKGROUND/DISCUSSION:
INTRODUCTION
The City Council meeting on March 9 will be my last meeting prior to my retirement March 11.
After 8.5 years of serving as Pacifica’s City Manager, approximately 350 special and regular City Council and community meetings, and preparation/review of multiple-thousands of staff reports to the City Council, I wanted to provide some farewell observations prior to my departure. Some of my observations are about the collective accomplishments over the past eight years that City Council members, Commission/Committee members, other community volunteers, City Attorney’s Office, and especially City staff have achieved. I am grateful for and humbled by these accomplishments and the privilege I have had to lead the organization during a period of continuous improvement in Pacifica. My observations about accomplishments are intended also to provide perspective and focus on challenges and opportunities facing Pacifica now and into the future.
In the Council-Manager form of government, city managers are in the unique position of hearing and understanding the broad range of perspectives of elected officials, professional staff, and community members, and the many layers and intricacies of issues related to economic, legal, political, and technical/professional considerations. It is based on this knowledge and experience, and with humility and respect for my responsibility to transparently transfer my observations to my successor, Councilmembers, staff and the community, that I submit this Farewell Report.
TOPICS
• Financial Sustainability
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Pacifica’s financial condition is its single largest challenge and is a driver of, or at least interrelated with, the many other challenges identified in this report. Pacifica’s historical, current, and projected financial sustainability challenges have been well-articulated in recent study sessions and budget documents. In the 8 annual budgets that I have overseen, the City has successfully balanced the budget while maintaining overall levels of service and delivering strategic service enhancements by adding a modest amount of staff positions in every department. The most recent budge, FY 2025-26, was technically balanced; however, the balance was achieved through one-time policy decisions and fund shifts, including reallocating ERAF revenues, applying a one-time debt service offset, and suspending the annual Pension Trust contribution, rather than through ongoing, structurally aligned revenues and expenditures. As a result, the General Fund is not yet structurally balanced on a long-term basis.
Revenues
Ongoing Revenues have increased by more than $3.2 million through two voter-approved revenue measures - Measure Y Transactions and Use Tax and Measure M Transient Occupancy Tax Increase. The Cannabis Business Program and diligent auditing of the Business License Tax have also increased ongoing revenues by more than $780,000. And new Development Impact Fees - Parking In-lieu and Parks - are in place to increase revenues for those purposes as new and re-development occur. A study is also underway to review and potentially right-size to cost-recovery levels and align with industry best practices many of our development impact and user fees. In addition, the City has successfully brought in more than $40 million in grant funding between 2017 and 2025.
Two sources of revenue are at risk beginning this fiscal year and continuing into future years - Vehicle License Fee In-lieu revenue the state has started to take away, and decreases in Transient Occupancy Tax revenue due to policy changes to the Short-term Rental Program.
Expenditures
As is the case for every city and business, the cost of doing regular business increases year-over-year due to unavoidable economic drivers. Pacifica has historically contained expenditures by eliminating positions and service levels in previous decades and, as a result, operates with staffing levels 15% lower on average organization-wide than comparable cities in our same labor market. In addition, compensation levels for employees remains 10-20% lower on average than comparable cities. This workforce deficit has necessitated prudent staffing and labor union-negotiated compensation increases over the past eight years to not fall even further behind competitors. These modest increases, while modestly increasing on-going expenditures, have been essential to maintaining service levels expected by the community while attempting to stave off an organizational downward spiral Pacifica is teetering on the edge of.
Financial Best Practices
While prudently balancing the budget from year to year, the City has accomplished numerous public financing best practices. First, in 2017 the City had a simplistic General Operating Fund Reserves Policy, but no reserves funding. We since have expanded the Reserves Policy, began funding the reserves at incremental levels, and have now achieved reserve funding levels recommended by the Government Finance Officers Association (GFOA). The City also achieved an AA+ bond-rating during refinancing of bonds in 2019. 11 Packet Pg. 265
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And the City has achieved unmodified opinions on its Annual Comprehensive Financial Report (ACFR) for numerous years straight. With enhancements to its Annual Budget process and document, the City has achieved awards of excellence for both its ACFR and Annual Budget for several years in a row, a first in Pacifica’s history.
Looking Forward
Many cities are currently faced with significant financial challenges. Sales tax revenue is down, economic stress is high, and the laws and politics related to voter-approved revenue measures are becoming more challenging year by year. Pacifica’s challenges are exacerbated because expenditures (and therefore services) have already historically been “cut to the bone,” and our single largest revenue source, property taxes, has not kept pace with the normal increases to the cost of doing business, due to little to no new and redevelopment. Additionally, the magnitude of the structural deficit, $3 to $6 million dollars over the next two years, 6% to 12% of General Fund revenues, is significant when looking at the amount of revenue different strategies might possibly generate and on what timeline.
As covered in the recent Revenue Generation study sessions, Pacifica needs to continue its comprehensive, strategic, and multi-layered approach to containing expenditures and increasing revenues. For the mid- to long-term, strategies to improve operational efficiencies such as through technological improvements, Economic Development efforts to improve sales and hotel tax revenues, and Community Development efforts to facilitate appropriate levels of new and re-development will be necessary. For the immediate-term, a voter-approved revenue measure is likely to be necessary, or else significant reductions in services will be required.
• Economic Development
Over the past 8 years, we have strategically grown the Economic Development (ED) Program from one manager (which was vacant when I arrived in 2017) to 2+ staff: analyst, manager, and part of Assistant City Manager focus. The growth of the program began when I created the Chief Financial Sustainability Officer position, which attracted Ms. Carter to Pacifica to serve as both ED Manager and Finance & Administrative Services Director, before she later became Assistant City Manager. The Council’s recent approval of a reclassified Economic and Housing Development Manager position is an important strategic change that reflects the importance of Housing as an economic driver in the city while also enhancing broad ED strategies.
In 2024, the City was awarded the California Association for Local Economic Development Award of Excellence for the Vision 2025 & Beyond Initiative. Vision 2025 combined financial forecasting, economic studies identifying short and long-term opportunities and support for local businesses, revenue enhancements, including the successful passage of a ½ cent Transaction and Use Tax, robust public engagement, and finally telling Pacifica’s story of many major priority projects and initiatives that are currently underway.
The ED Program is critical to Pacifica’s future. The scope and near-term focus of the ED Program was comprehensively articulated in a recent Study Session with the City Council, and includes actions related to housing/mixed-use developments, revitalizing commercial centers, other economic opportunity sites, and catalyst projects for the West Sharp Park downtown district. I won’t reiterate those details here, other than to emphasize that Economic Development needs to be a multi-layered approach with a very strategic focus for 11 Packet Pg. 266
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how limited staff time is spent, and the ED Workplan provides this focus. • Plan Pacifica
Completing a comprehensive General Plan Update, Local Coastal Land Use Plan Update, Sharp Park Specific Plan, and Housing Element, altogether branded as “Plan Pacifica,” has been a major focus for the City. Modernization of critical policy and land-use documents brings clarity of requirements and certainty about process for property owners who are interested in making improvements and developers who are interested in investing in Pacifica. These foundational plans were major undertakings for the City and took many years to update, including significant public engagement in the process. However, they are also just the beginning point of many follow-up implementation actions that are necessary.
Those implementation actions will drive the majority of the Community Development Department’s workplan for years to come, on top of CDD’s non-discretionary processing timelines and workload for development applications per state law.
The implementation of these plans will require new and innovative approaches to community engagement to be able reach and hear from all segments of the Pacifica community and to achieve collective understanding about the economic, environmental, legal, and social values and vision at stake for Pacifica’s future. In order to balance robust public engagement with available staff and financial resources and the need for efficient decisionmaking by the City Council, the community engagement process will need to articulate, and the community respect and honor, the milestones when the City Council must make its decisions and move forward. Otherwise Pacifica risks repeating its history of planning processes that take way too long to complete, create risks to local control, and suck up limited staff and financial resources that need to move on to other priority projects. • Climate Action and Coastal Adaptation & Resilience
As a coastal community with 6 miles of coastline and neighborhoods that have pre-Coastal Act development right up to or near the shoreline, coastal adaptation and resilience is a major challenge for Pacifica. In addition, global climate change is exacerbating environmental impacts, and Pacifica is committed to doing its part to reduce greenhouse gas emissions. In addition to the important “Plan Pacifica” policy documents discussed above, the City’s new Climate Action & Resilience Plan and newly formed Climate Action & Resilience Committee are focused on actions the City can take to reduce our greenhouse gas emissions. The challenge with implementation is mostly a financial one (see the Financial Sustainability section of this report), relating both to capital project funding and prioritization of staffing resources.
Regarding coastal adaptation and resilience, Pacifica’s Local Coastal Land Use Plan, certified by the Coastal Commission in 2025, has moved Pacifica into a leadership role in California regarding long-term planning for shoreline adaptation policy and strategies. As mentioned in the “Plan Pacifica” section above, important implementation tasks such as developing the Shoreline Adaptation Program and Coastal Access Resilience Program will require major staff time and funding resources to complete.
Pacifica’s successful LCLUP certification has also placed the City in a leadership role for how cities can and will need to work collaboratively with Coastal Commission staff on these types of important coastal adaptation and resilience matters. 11 Packet Pg. 267
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• Infrastructure and Capital Improvement Program
Pacifica’s coastal environment, aging infrastructure, and financial sustainability challenges that prevent annual on-going funding for the Capital Improvement Program (CIP) are a major concern for Pacifica’s future. Not unlike many cities, Pacifica has infrastructure replacement needs that are financially out-of-reach for a small community - more than $370 million for Pacifica. But some notable progress has been made:
➢ Civic Center: Renovation of the Civic Center campus, complete with public-use park space and meeting rooms for community groups, has been a great benefit to the organization and the community.
➢ Streets Improvement Program: Implementation of a 5-Year Maintenance Program with deployment of a variety of treatment options has improved the City’s Pavement Condition Index in recent years. In addition, numerous successful grant applications have allowed for significant streets, sidewalks, and bike lane improvements in many areas of town.
➢ Beach Boulevard Infrastructure Resiliency Project, Pier, and Esplanade Infrastructure Protection Projects: Progress has been made on these important coastal resilience projects, with millions of dollars in federal, state, and City funding invested. However, more funding is needed. These projects are essential both to protecting critical infrastructure (water, wastewater, other utilities, and roads), as well as to the public’s access to the shoreline.
➢ Wastewater Projects: As an enterprise business line with funding from wastewater fees, major progress has been made to make Pacifica’s wastewater program an industry leader in recent years. The major Wet Weather Equalization Basin has proved successful in preventing sanitary sewer overflows, on-going replacements of sewer mains are benefitting the environment, as are upgrades to pump stations, and major upgrades to equipment and systems at the Calera Creek Water Recycling Plant are improving the treatment of wastewater. Both divisions, Collections and Plant Operations, have received numerous industry awards in recent years. ➢ Parks Replacements: Utilizing Roy Davies Trust funds, Parks impact fee funds, and other sources, the Priority Parks project is underway to upgrade four parks. When staff and funding resources allow, pursuing development of a Parks Master Plan would be helpful to prioritize future parks improvements. ➢ Libraries: Replacement of the Sharp Park Library and upgrades to the Sanchez Library are important social infrastructure projects for the community. They are expensive projects, and will require a combination of funding strategies, including a voter-approved bond measure (or revenue measure that can be bonded against) to fund a share of these facilities. The Library Advisory Committee, Council, and staff have been engaged in public information and education efforts to build awareness and support of the importance of modernized library facilities.
Many cities in our region have been able to build into their structurally balanced budget annual CIP funding from their General Operating Fund. Pacifica has not been able to do that regularly at any significant level of funding, therefore many projects in the CIP are unfunded and rely solely on special funds, development impact fees, or grant funding.
Identifying at least $1 million in General Operating Fund funding for the annual CIP would be 11 Packet Pg. 268
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an aspirational goal for Pacifica’s financial future.
Development impact fees can be a major source of funding for the CIP, however development projects are necessary in order to collect these fees. This ties back to the importance of new and re-development to Pacifica’s financial future. • Organizational Culture and Community Trust
An organization the size of Pacifica (approximately 200 full-time employees) allows for employees to get to know each other professionally and to develop strong working bonds because employees wear many hats and their responsibilities intersect often in the course of business. This inter-woven fabric of the organization allows for both bottom-up and topdown creation of a strong organizational culture to reinforce values of respect, empathy, trust, teamwork, ethics, public service excellence, continuous improvement, as well as fun and celebration. These are the values that make the Pacifica organization strong, and they are especially important when employees are over-worked, underpaid, and at times face criticism from the community, Councilmembers, or Commission/Committee members. This culture and these values don’t just naturally occur; they require deliberate focus and effort to strengthen.
Strengthening this culture, as well as continuously working to gain the community’s trust is an important on-going focus for Pacifica’s future. Unfortunately, in today’s political and social context, a culture of grievance and mistrust of the expertise of trained professional employees has trickled down from the federal to the local level, even in Pacifica. Difficult and divisive issues (and Pacifica has many) must continue to be approached in a manner to facilitate dialogue and understanding, with all opinions fairly heard and considered.
Complete agreement on difficult issues is not possible, but honoring and respecting a fair process and the City Council’s decision-making authority is important if meaningful levels of trust are to be achieved and maintained in a community. • The Pandemic
A notable disruption in recent years was the global Coronavirus Pandemic. Pacifica was able to effectively navigate through this difficult period of uncertainty and, with the help of American Rescue Plan Act funding, was able to manage the economic impacts. It was difficult on the organization and the community. San Mateo County and all cities in the County did an exceptional job of coordinating information and actions, and this close coordination has helped strengthen regional coordination and partnerships for the better. • Strategic Planning and Workplan Stability
An industry best-practice that I emphasized beginning in 2017 was to conduct goal-setting early in the annual budget development process, followed by creation of detailed workplans for each priority and periodic updates to track and report progress transparently to the Council and community. In 2023 the timing was right to undertake a more comprehensive and true Strategic Plan development process, to include Mission, Vision, Values, Goals, and Strategies.
The Strategic Plan serves as a stabilizing guidance document for the organization and an important communication tool to the community. For local government work to be effective 11 Packet Pg. 269
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and ensure prudent use of resources, it is important for there to be stability and consistency from year to year in the delivery of major programs and projects. So many of the complex programs and capital projects that fall to local governments to deliver take many years to develop and implement. Therefore, consistent policy direction from Councilmembers from year to year and across Council transitions, or clear and fact-based explanations for when program or project changes might be needed and in the best interest of the community, are critical to efficient and effective service delivery. The Strategic Plan provides the framework to annually discuss, renew, or refine priorities, and provide continuity and stability for the organization and prudent use of resources. This best-practice is essential to continue in Pacifica.
• Other Topics
There are numerous highly visible topics Pacifica faces that I chose not to discuss in this report because they are complicated and controversial policy topics that do not lend themselves to a concise summation or observation, and there have been numerous reports and City Council discussions about these topics. Nonetheless, they present challenges for Pacifica into the future, and more progress will need to be made on them. A partial list of these topics include:
➢ Over-sized vehicles on streets and in the state beach parking lot, vehicle habitation, homelessness, and future funding for the Temporary Safe Parking Program; ➢ Builder’s Remedy/SB 330 housing applications, the impact of complex state housing laws and processing timelines on an understaffed Community Development Department, Housing Element implementation, and the time and resource impact of appeals of development projects;
➢ Short-term Rental Ordinance implementation and enforcement; ➢ Coastal high surf and storm impacts on an understaffed Public Works Field Services Division, and the impact of complex coastal capital projects on an understaffed Engineering Division;
Technology improvements is another topic important to Pacifica’s future,but is less visible because it is more internal organization focused. However, once implemented, technology improvements are intended to improve organizational efficiencies and therefore services to the community. Pacifica has implemented many new and modernized systems in recent years, with many more forthcoming for systems in departments such as project application and permit tracking systems in Community Development, GIS for all departments, agendamanagement systems and imbedded video for Council meeting recordings in order to move away from the archaic and inefficient practice of verbatim meeting minutes, continuation of improvements to financial and HR systems, enhanced AI technology, cybersecurity best practices, and more.
CONCLUSION
I appreciate the opportunity to reflect on and provide observations publicly about these numerous major topics before I leave Pacifica. Challenging years lie ahead, but major progress has been made to position Pacifica to confront these challenges. I am confident I am leaving Pacifica a better place in which to live, work, and play than when I arrived, and better equipped 11 Packet Pg. 270
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for the challenges ahead.
It has been my honor and privilege to serve as Pacifica’s City Manager these past 8.5 years.
I’m am grateful to all of the Councilmembers I have worked with, all of the dedicated and hardworking staff, and all other volunteers passionate about Pacifica.
ALTERNATIVE ACTION:
This report is information only and no action is required.
RELATION TO CITY COUNCIL STRATEGIC PLAN:
This report relates to City Council’s entire Strategic Plan.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
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