"The City With a Heart"
Rico E. Medina, Mayor
Sandy Alvarez, Vice Mayor
Tom Hamilton, Councilmember, District 2
Michael Salazar, Councilmember, District 3
Marty Medina, Councilmember, District 4
AGENDA
SAN BRUNO CITY COUNCIL SPECIAL MEETING
January 30, 2026
1:00 PM
IN PERSON* MEETING LOCATION
San Bruno Recreation and Aquatic Center, Community Room 251 City Park Way
San Bruno, CA 94066
*Please turn off all electronic devices before the start of the meeting to prevent disruptions*
PUBLIC COMMENT: In person attendees who want to provide public comment, will be asked to fill out a speaker card and turn it into the City Clerk. Public comment may also be emailed to [email protected] . Comments received via email will not be read
aloud during the meeting.
ACCESSIBILITY: In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or modifications to participate in this meeting should contact the City Clerk’s Office 48 hours prior to the meeting at (650) 6167061 or [email protected] .
*Any disclosable public writings related to an open session item on a regular meeting agenda and distributed by the City to at least a majority of the City Council less than 72 hours prior to that meeting are available for public inspection at the City Clerk's Office at City Hall located at 567 El Camino Real, San Bruno, California during normal business hours. In addition, the City may also post such documents on the City’s Website at sanbruno.ca.gov/AgendaCenter .
1. CALL TO ORDER
2. ROLL CALL
3. STUDY SESSION
Public comment will be requested after each topic in this section a. Receive Preliminary General Fund Forecast and Update on FY26 and Carried Over Council Strategic Initiatives, FY26Q3
b. City Council’s Annual Strategic Initiatives & Prioritization Retreat
4. ADJOURNMENT – The next Regular City Council Meeting will be held on February 10, 2026 at 7:00 pm.
POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on January 29, 2026, by 12:00 pm. 1 of 9
City Council Strategic Initiatives Planning Meeting
Staff Report
CITY OF SAN BRUNO
DATE: January 30, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre
PREPARED BY: Nick Pegueros; Brian Adam
SUBJECT: Receive Preliminary General Fund Forecast and Update on FY26 and Carried Over Council Strategic Initiatives, FY26-Q3
BACKGROUND:
As part of the annual budget process, the City Council adopts priority initiatives each year.
These initiatives range from targeted efforts on specific issues, such as downtown beautification, to broad, ongoing programs like wildfire mitigation and education. For the fiscal year 2025-26 (FY26), the Council approved a total allocation of $3.8 million, substantially funded by Measure G, for six projects. In addition to FY26 priorities, five top priorities were approved in FY25, along with an additional four projects approved prior to FY25.
To support that process, this report also includes a preliminary budget forecast.
DISCUSSION:
Summary of Preliminary General Fund Forecast
The preliminary forecast anticipates an operating deficit ranging from $2.5 in fiscal year 2026-27 to $5.5 in fiscal year 2030-31. With growth in expenditures far outpacing growth in core revenue, the challenge in the upcoming fiscal year will be to identify the appropriate balancing measures necessary to maintain a stable General Fund.
Key factors and assumptions
Within the forecast, City staff incorporated several key assumptions likely to have a material impact on either resources or requirements. These assumptions are early assessments and will be adjusted as new information is available, specifically as the budget process commences.
Assumptions and the potential impact on the General Fund’s operations include:
Structural property tax questions. The forecast assumes continued growth, though at a slower rate than in recent years. This reflects growing indications that commercial property is undergoing substantial change, along with uncertainty around several funding sources. Two sources of funding are at risk, both due to the State’s obligations to local educational agencies. These sources – excess educational revenue augmentation fund (ERAF) and in-lieu vehicle license fee (VLF ) – are redirected from local agencies to school agencies to meet their required funding levels. The City has joined a lawsuit against the State for the State’s failure to backfill its VLF In-Lieu obligations fully. In fiscal year 2024-25, the State owes the City $1.0 million. It is anticipated that $2.8 million is at risk for fiscal year 2025-26 and fiscal year 2026-27. The County continues to seek 2 of 9
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legislative remedies, and the VLF shortfall has been included in previous State budgets; however, the actual timing of the payments has lagged several years, serving as a signal of the endangered nature of this revenue stream.
Maintenance of current services. The forecast assumes providing largely the same services as those approved in the adopted budget. Service offerings over the period are not substantially changed; staffing levels and associated revenues and expenditures are assumed to continue operating under current conditions, except in cases where a known change is pending and reasonably quantifiable.
The primary factor contributing to the deficit growth over the next five years is higher than budgeted personnel costs due to labor contract agreements. While previous forecasts predicted annual personnel cost increases of 4 percent, a recent contract agreement with one of the City's six bargaining units significantly exceeded this expectation. To address these increased costs, staff plans to recommend that the City Council allocate a portion of Measure G funding to cover the additional expenses, thereby balancing the budget and maintaining services.
No service rollover. A critical distinction between budgeted services and services delivered is a function of staff capacity. The City currently has over 25 vacancies, which hinders staff’s ability to fulfill all service-level commitments in the adopted budget. In a given period, City staff will attempt to use other sources, such as contractors and outside vendors, to deliver services where unavailable through regular staff. The forecast attempts to incorporate capacity through use of historical data and treats any services undeliverable due to capacity constraints as foregone instead of deferred, as in capital infrastructure projects.
No known one-time sources or needs. There are no substantial one-time revenues, either in resource availability or requirements included in the forecast.
Known and anticipated future events. Changes in revenue and expenditure streams, where known or reasonably anticipated, are included in the forecast in the respective years where impact is realized. Major drivers of this are sales and property tax changes due to stages of development or redevelopment. For instance, redevelopment of the Tanforan shopping center will result in a medium-term decrease to the associated baseline revenue level, followed by an increase in property and sales taxes once the property is fully redeveloped. The timeframe of the Tanforan redevelopment is uncertain and the forecast does not assume any property tax or sales tax revenue recovery in the five-year timeframe.
Staff will present the 5-year forecast at the goal-setting session on January 30th. An updated forecast is expected in March after finalizing revenue and expenditure figures for fiscal year 2026-27.
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Initiative Summary Table
Initiative Status Percent
complete
Initial
Year
Finalize improvement plans for Florida Park Complete 100 FY25 Assess the fiscal feasibility of the Transit Corridor Plan Complete 100 FY25 Employee compensation study Complete 100 FY25
Comcast transition/ Stabilize CityNet's fiscal sustainability Complete 100 FY25
Communications and Engagement Program Complete 100 FY26 Citywide Wildfire Mitigation Project & Public Education Program Complete 100 FY20
Crestmoor Wildfire Mitigation Project Complete
100 FY20
Downtown beautification In
progress 98 FY25
Improve lighting at overflow parking lot and Diamond near RAC In progress 75 FY26
Strategic Analysis of City-owned Properties In
progress 70 FY26
Install/replace/repair broken Downtown Parking lot lights In progress 50 FY26
"Cleanup San Bruno" litter and illegal dumping abatement In progress 50 FY26
Renovate City Offices In
progress 50 FY23
Create a climate action plan In
progress 50 FY24
Implement online permitting In
progress 33 FY20
Phase 2A Regulated Output Streetlight Retrofit On hold 0 FY26 FY25 Top Priority Initiatives
As part of the fiscal year 2024-25 (FY25) budget, the City Council strategically narrowed its priorities to five key initiatives, thereby channeling staff resources towards the most impactful and essential projects. All FY25 top priority initiatives were considered complete at Council’s regular meeting on November 12, 2025. Those updates are rehearsed below:
Florida Park improvements
Finalize improvement
plans for Florida Park Completed 100%
complete Approved FY25 Lead: Community
Services
Florida Park has been completed. The entire project is chronicled on the Department's Park Project Updates web page. City Council accepted the project as completed and authorized the filing of Notice of Completion with the San Mateo County Record's Office.
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Downtown beautification
Downtown
beautification
In progress;
scheduled for
completion in
January 2026
Approved FY25 Lead: Community Services
The City installed banners all throughout downtown earlier this calendar year in February. It completed the Request For Proposal process this summer to identify a quality contractor to perform landscaping work. The work is tentatively planned for completion in January 2026.
Comcast Transition / CityNet’s fiscal sustainability
Comcast
transition/Stabilize
CityNet's fiscal
sustainability
Completed 100%
complete
Approved
FY25
Lead:
City Manager’s Office,
Admin. Services &
CityNet
In early 2025, the City Council approved the sale of CityNet to Comcast. The transition commenced this summer and is projected to be completed by November 30, 2025. Since October, CityNet staff have been undergoing training for their new roles as stipulated in the City's side letter agreement with the labor groups of the affected employees. The full transition for residents has been finalized, with the final closure of operations conclude by December 31, 2025. Final disposition of CityNet assets not including in the sale to Comcast and the closure of the CityNet Fund are anticipated to be completed by June 30, 2026.
On the recommendation of staff, Council considered this item complete during their regular meeting on November 12, 2025.
Employee classification and compensation study
Employee
compensation
study
Completed 100% complete,
as amended
Approved
FY25
Lead: Admin.
Services
The compensation study has been finalized, and its data will be utilized in labor negotiations for new agreements with the City's six bargaining units. At the recommendation of staff, the City Council postponed the organization-wide classification study during their regular meeting on November 12, 2025.
Transit Corridor Plan fiscal feasibility
Assess the fiscal
feasibility of the
Transit Corridor
Plan
Completed 100%
complete
Approved
FY25
Lead: Community
Dev.
TCP feasibility analysis was completed, and it was part of the Council's launch of the Land Use/Housing/Economic Development initiative on July 22, 2025, that will be a major undertaking to include extensive community engagement, General Plan amendments, Specific Plan and zoning amendments, environmental impact report, establishment of funding mechanisms for infrastructure and services, overhauling the development review process, and ballot measure(s) to amend Ordinance No. 1284.
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FY26 Top Priority Initiatives
As part of the fiscal year 2025-26 (FY26) budget, the City Council identified several new initiatives in areas of significant community benefit. These initiatives aim to address key issues and improve the quality of life for residents.
Analysis of City-owned properties
Strategic Analysis of
City-owned
Properties
In
progress 70% complete Approved
FY26
Lead: Community
Services
On 9/10/25, the City signed a contract with a consultant to perform strategic analysis of City- owned properties.
The analysis is currently underway. Scope was expanded to include analysis of operational needs for the Police Department, potentially informing any new acquisitions or capital investments to support the department. The consultant is working with specific City teams to provide more in-depth analysis of City properties.
“Clean-up San Bruno” litter and illegal dumping abatement "Cleanup San
Bruno" litter and
illegal dumping
abatement
In
progress 50% complete Approved
FY26
Lead:
Police
The Public Works and Police staff are actively coordinating to address and prevent illegal dumping on both City-owned and other jurisdictional properties within San Bruno. From this collaboration, a video was posted early in January 2026 with significant engagement from the community.
The Public Works Department was unsuccessful in identifying a potential communications consultant. However, the Department is partnering with the City Manager’s Office and the reactivated Beautification Task Force to engage residents and promote this initiative on social media.
Communications and Engagement Program
Communications and
Engagement
Program
Transition
ed to
operations
100% complete Approved
FY26
Lead:
City Manager’s Office
City Council has received presentations on the contracted survey and the communications plan.
Staff recommend the initiative be considered complete because it has been transitioned to operations, and the CMO will continue to implement action items.
Improve lighting at RAC overflow parking and Diamond in City Park Improve lighting at
overflow parking lot
and Diamond near
RAC
In
progress 75% complete Approved
FY26
Lead:
Community
Services
Solar streetlights have been ordered for RAC overflow parking lot. Staff have incorporated this effort into the RAC Landscaping Capital Improvement Project. The required work will be put out to bid by FY26 Q4.
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Phase 2A Regulated Output Streetlight Replacement
Phase 2A Regulated
Output Streetlight
Retrofit
On hold
Project on hold
pending mid-year
budget amendment
Approved FY26
Lead:
Public
Works
The funding for this project is on hold pending a mid-year budget update from staff. Currently, there are no issues with the remaining streetlights, and it may be worthwhile requesting that PG&E fund a portion of this work instead of it being self-funded by the City.
Staff are in preliminary discussions with PG&E to fund this effort via on bill financing or through energy savings grants. There is motivation from their operational side to make this happen. Staff are garnering support to make a regional request with a few of the cities still on the regulated output circuit.
Targeted downtown light repair and replacement
Install/replace/repair
broken Downtown
Parking lot lights
In
Progress 50% complete Approved
FY26
Lead:
Public Works
As of October 21, 2025, all malfunctioning downtown parking lot lights were repaired. Staff are confirming specifications for new poles. Work is still on track to be completed by June 2026.
Prior Year Carryover Initiatives
The City Council adopted budget includes several initiatives previously approved by City Council, however, those projects progress at a slower rate due to staff capacity and focus on top priority initiatives.
City Office Renovation
Renovate City Offices In
progress 50% complete Approved FY23
Lead:
Community
Dev.
The following areas of City Hall have been completed:
City Manager's Office and Executive Assistant to the City Manager One section of the Administrative Services Department
All but one section of the Community Development Department The Public Works Department
Private offices along the Linden side of City Hall for the City Manager's Office, City Attorney's Office, and Administrative Services Department The following areas are in the design phase:
The remainder of "south wing" of City Hall, including the Administrative Services Department area, break room, mail room, and other spaces Conference Rooms 115 and 101
Public lobby and hallway
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Climate Action Plan
Create a climate
action plan
In
progress 50% complete Approved FY24 Lead:
Community Dev.
The plan will be the culmination of a year’s worth of ongoing community engagement, workshops, and surveys. A public review draft is anticipated in spring 2026, with the tentative adoption date by mid-summer 2026
Citywide Wildfire Mitigation Project & Public Education Program + Crestmoor Wildfire Mitigation Project (no update)
Citywide Wildfire
Mitigation Project &
Public Education
Program
Transitioned
to operations
Remove from
initiatives list
Approved
FY20
Lead:
Fire
This initiative is ongoing and part of the Fire Department’s regular work and community engagement. In addition to regular education and community sessions, work completed in FY25 includes:
48 days of California Conservation Corps work for defensible space in Crestmoor Canyon with 20-25 members per day.
Clearance of approximately 1.2 miles of fire roads.
Creation of interactive map on Fire Department website to inform citizens of Crestmoor Canyon
On the recommendation of staff, Council considered this item complete during their regular meeting on November 12, 2025.
Online Permitting (no update)
Implement
online
permitting
In
progress
Building permits complete;
Planning permits nearing
completion; Engineering currently
in implementation
FY20
Lead:
Community
Dev.
Online permitting is available for all types of Building Permits. The system is being expanded for Planning and Public Works permits. Future phases will include modules for Fire permits and Code Enforcement tracking.
Next Steps
Staff intend to bring another quarterly update on strategic initiatives during FY26-Q4.
FISCAL IMPACT:
All initiatives, except for the Phase 2A RO Streetlight Retrofit project, have enough funding to complete their scopes. Staff plan to recommend funds for the RO Streetlight project in the FY26 mid-year budget amendments.
ENVIRONMENTAL IMPACT:
The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.
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RECOMMENDATION:
Receive Preliminary General Fund Forecast and Update on FY26 and Carried Over Council Strategic Initiatives, FY26-Q3
ATTACHMENTS:
1. N/A
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