DOWNTOWN ZONING
ADJUSTMENTS
SEPTEMBER 8, 2026
CITY COUNCIL
AGENDA
I. Objective
II. Background
III. Recommendations
IV. Next Steps
V. Long Term Plan
VI. City Council Direction
2 3
Present the Downtown Zoning Adjustments and receive direction from City Council
OBJECTIVE
4 ZONING MAP EXCERPT:
Central Business District (C-B-D)
Part of City Council FY27 Priorities
May 19, 2026 Joint Study Session
July 21, 2026 Planning Commission Study
Session
BACKGROUND
San Mateo Ave
5 EXTERIOR IMPROVEMENTS
AND OTHER AESTHETICS
Interest in maintenance and
compliance
Annual Code Compliance checks
Enforcement of existing
storefront visibility regulation
Council priority originally based
in part on increasing private
investment in exterior
improvements to buildings
May 2026 discussion of
expanding expectations for
exterior improvements
New standard for lighting levels, particularly to address excess brightness
ADJUSTING ALLOWED USES
6 Use Classifications
Permitted P Anywhere, everywhere – no discretion
Prohibited - Nowhere – no discretion
Conditional C Case-by-case - discretion
Categories of Proposed Changes
Dependent on ground floor or upper floors
Separating certain uses from general Retail
Adjusting Personal Services
Land Use CBD Proposed CBD TOD-S TOD-1 TOD-2 MX-R
Business Services P (upper) C (Ground), P (upper) P P P P Office P (upper) C (Ground), P (upper) P P P P
Research and Development * P (upper) C (Ground), P (upper) P P P P Restaurants P (ground) P (ground), C (upper) P P P P
Retail Sales and Services P (ground)
P (ground), C (upper)
Separate Grocery Stores,
Liquor Stores, and Smoke Shops
P P P C
Grocers P C C C C C
Liquor Stores P C C C C C
Smoke Shops P - - - C -
Personal Services, Downtown Focus P C (ground), P (upper) P P P P Personal Services, Instructional Focus C C (ground), P (upper) C P P P Personal Services, General - C (ground or upper) C P P P 7 * Note: Make R&D with higher biosafety/haz mat
levels automatically a C in all districts P = Permitted C = Conditional
- = Prohibited
Existing
New
LEGEND
ADJUSTING ALLOWED USES
Legal Non-Conforming (LNC)
Use, structure, feature that is
prohibited now, but was permitted
when established
8 AMORTIZATION
Public
Welfare
Owner
Rights
LNC continues in perpetuity
Owner Rights given more
consideration than Public
Welfare
Fair for the Public?
LNC ceases after an
amortization period
Opportunity for
balancing both interests
Public
Welfare
Owner
Rights
LNC ceases immediately
Public Welfare given
more consideration than
Owner Rights
Fair for the Owner?
Public
Welfare
Owner
Rights
Amortization
Regulatory tool to phase out LNC, a
grace period that allows the owner
recovery of investment
Recommend Amortization for Smoke Shops and “Bright Light” Regulations 9 Topical Areas Potential Change 5/19 Joint
Session
7/21 PC
SS
9/8 CC
Question Ord?
Exterior
Improvements
and Other
Aesthetics
Expand requirements for exterior improvements
Annual Code Compliance for exterior maintenance/repairs Enforce storefront visibility regulation
Create lighting regulations (brightness)
Y
Adjusting
Allowed Uses
Adjust ground and upper floor allowances ? Y
Separate Grocers, Liquor Stores, Smoke Shops from Retail ? Y Adjust Personal Service allowances ? Y
Amortization
Require LNC businesses to be phased out
Require prohibited Smoke Shops to be phased out? ? Y
Require existing “bright light” improvements be phased out? ? Y Incentives Maintain less-than-cost-recovery fees for planning applications
SUMMARY
10 EXPECTED OUTCOMES
Opportunity for businesses that are
less retail in nature to show they can
provide and maintain an active
frontage in order to be allowed
Opportunity to ensure businesses that
may have greater impacts on the area
can mitigate those impacts
Opportunity to avoid or phase out less
desired uses
Minor improvements to aesthetics
through maintenance of private
building exteriors, reduced blockage of
storefront windows, phasing out of
“bright lights”
No expectation this will change owners that choose to leave tenants spaces vacant 11 Original Schedule Current Schedule
May 19 Joint SS
May 19 Joint SS
July 21 PC SS
Sept 8 City Council SS
Late Summer PC hearing Tentative November PC
hearing
Early fall City Council
hearing
Tentative January City
Council hearing
Effective date = winter
(Dec)
Tentative effective date =
end of winter (end of Feb)
Receive City Council feedback on
Downtown Zoning Adjustments
Develop language for text
amendments
Package Downtown Zoning
Adjustments with prepared
amendments required by the
Housing Element and ALUCP
NEXT STEPS
12 WE HAVE THE PLAN(S),
WE NEED THE FUNDING STRATEGY
Elevate San Bruno to
incentivize investment, to
increase population. Funded
by GP Maintenance Fund
City supports limited events,
needs funding and resources
for more
Anchor tenant is only going to
come if there is a reason for
them to come
Expand customer base
(new housing, hold
events, anchor tenant)
Major improvements to
Centennial Plaza and Posy
Park, in part due to DIF. Other
modest improvements
Public art moving forward, in
part due to Art Fund. Limited
resources to expand
Conceptual Streetscape Plan
exists, need funding to
implement the rest
TCP concept to redesign
ECR/San Mateo Ave, needs
funding for design
development
Conceptual wayfinding in
Streetscape Plan, needs
funding
Maintain paid parking
program, parking lots
Make more comfortable
(streetscape, art,
maintenance)
Make it easier to get to,
and around (wayfinding,
parking)
13 FUNDING STRATEGY PRIORITIZATION
Shovel ready design drawings
open opportunities for
funding (grants, earmarks)
Dialogue with major
business/property owners for
contributions
Opens opportunity for
dialogue with property
owners
Shovel Ready Design
Drawings
Spending greater staff
resources for the opportunity
for a major community
benefit
vs
Losing the economies of scale
by having staff resources
spent on several different
incremental tasks with
modest gains
A City that finds ways to invest
in the public realm will be
more attractive to a real
estate investor
Bang for the Buck Catalyzing Action
Consider streetscape funding strategy development as a future Council priority 14 Topical Areas Potential Changes Needing City Council Feedback Adjusting
Allowed Uses
Adjust ground and upper floor allowances?
Separate Grocers, Liquor Stores, Smoke Shops from Retail? Adjust Personal Service allowances?
Amortization
Require prohibited Smoke Shops to be phased out?
Require existing “bright light” improvements be phased out?
REQUESTED CITY COUNCIL DIRECTION
Council Policies
and Procedures
Study Ses s ion
September 8, 2026 - Prepared by Brian Adam,
Assistant to the City Manager
1 Age n d a
I. Objective
II. Background
III. Discussion
IV. Recommendation
V. Questions
2 Objective
• Hold a study session to
identify what the City
Council would like the
Ad Hoc Subcommittee
to consider for
proposed updates to
the Council Policies and
Procedures
3 Ba c kground
May 2023 - Council policies last updated
January 2026 - Council suggests updating policies
July 2026 – Council creates Ad Hoc Subcommittee
TODAY , September 8, 2026 – Study session
October 27 – Ad Hoc Subcommittee returns with proposal
4 What P & P Do
Outlines council
conduct and
responsibilities
Provides guidelines
for public
participation
Enhances meeting
efficiency and
transparency
5 Why Review P & P?
Statutory
changes
Reflect updates
in policy
Support
continuous
improvement
6 Staff proposed changes
• Outlined in the packet,
recommended changes
align policies with the
updates to the Brown Act
• Staff refrained from other
proposals since they are
policy considerations for
council
7 R ecommendation
•Discuss council’s desired priorities or
changes to the policies and procedures for
the Ad Hoc Subcommittee to begin
preparing a set of proposed changes
8 Questions
9 Caltrain
Overview and
Budget
San Bruno City Council
September 8
Caltrain Connects
• 77 miles connecting San
Francisco, San Mateo, and
Santa Clara counties
• 31 stations across 20
communities
• Over 160 years of continuous
rail service
• 82% favorability rating voters
• 91% favorability with riders
2 Caltrain Recent Awards
• APTA’s Outstanding Public Transportation
System Achievement (2026)
• APTA Rail Safety Award (2026 & 2025)
• Time 10 Most Influential Transportation Companies
of 2026
• Adwheel Grand Award "Driving is for Dodgers"
Campaign (2026)
3 Caltrain is Part of Everyday Life
• Provides millions of rides
to get people to work,
school, and events
• Reduces traffic on major
highways like US-101
• Connects communities
across the Peninsula
• Supports access to jobs
and opportunities
• Nearly 40% of the Bay
Area population live
in the 20 cities served
directly by Caltrain.
4 Every Day, Caltrain Provides Regional Benefits
Less Traffic:
• Removes the equivalent of
~3 freeway lanes of traffic
at peak times.
• US-101 traffic is 93% of
pre-pandemic levels at rush
hour.
Stronger Economy:
• Higher property and activity
values near
Caltrain stations.
• Contributes to downtown
activations and local tax
bases across the corridor
• Caltrain corridor economic
driver of the state / country.
Cleaner Air
• Reduces greenhouse gas
emissions with 100%
renewable electric service
• Improves air quality and
reduces noise
5 Partnerships on
Major Initiatives
● Corridor Crossing Strategy
• Website page here
● Transit Oriented Development
● Redwood City Transit District
● Battery Electric Multiple Unit Train
● Diridon Station Business Case
● Portal (SF Downtown Extension)
Innovative, Cost Effective:
Safety Enhancements
Worked with technology providers to improve audio
and visual directions by tracks
6 Improved Service
• Faster: Express and local trains
• More Frequent:
- Every 15-20 mins weekday rush hour
- Every 30 mins, every station, 7 days a week
(compared to once an hour)
- 20% more service (26% equity priority stations)
• Better Experience: Free wi-fi, outlets at every
seat, bathrooms, digital displays, quieter inside
and outside the trains
• On-Time Performance: over 95%
7 8
Growing Ridership
• Since electrification: fastest growing transit system US (APTA); over 25% growth year over year; weekend highest ever; Giants/Sharks/Warriors 30%-50%+ increase from previous season • $1 Youth Fare: offering families and riders under 18 a cost-effective way to ride • Diversified ridership: 37% low income; 10% youth, seniors, or people with disabilities 8 9
Caltrain Ridership Trends by City
9 Welcome City Partnerships
• Go Pass Program: City benefits economic, parking
and traffic relief, GHG reductions
• Creative partnership: themed trains, Destination Downtown 10 Caltrain Fiscal Outlook and Ridership
1111
0 10,000
20,000
30,000
40,000
50,000
60,000
70,000
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26* FY27*
Average Weekday Ridership
Total FY Ridership
Total Fiscal Year and Average Weekday Ridership (FY19-27) Total Annual Ridership Average Weekday Ridership
Caltrain Ridership Trends
12Sources: Caltrain Annual Ridership Reports; Caltrain Fare Media-Based Ridership Estimates. *FY26 and FY27 projected.
Ridership demand continues to grow in response to Caltrain’s electrified service improvements.
Notes: FY19-25 Actuals; FY26-27 revenue is preliminary.
DRAFT
Role of Fares in
Caltrain’s Business
Fares No Longer Cover the Same Share of Costs
• 2019, fare revenue comprised over 70% of operating revenue • Today, while still nation leading, fare revenue accounts for 33% of operating revenue. 13 14
FY26 Budget
FY25 Forecast
Why Does Caltrain Have a $75M Annual Operating Deficit? Commute Patterns
Shifted
Sustained, significant
changes in work patterns
across San Francisco and
Silicon Valley since the
pandemic.
Ridership &
Revenue Less Than
Before
Fewer riders meant lower
fare, parking, rental, and
advertising income.
Costs Rose
With Inflation
Operating costs grew
faster than revenue
across the transit
industry.
Electrification
Raised Fixed Costs
51 miles of new 25KV
electrical infrastructure to
maintain.
Combined result: These factors and the exhaustion of one-time COVID related funding sources have compounded to create a structural operating deficit that cannot be resolved through cuts or self-generated revenue alone.
Cost Containment Strategies
• Strategic hiring freeze
• Comprehensive cost reduction efficiency program
• FY27: Line by line review, held operator contract
to previous level
• Implemented crew scheduling efficiencies
• Recouping costs for electricity returned to the grid
through regenerative braking
• Develop and evaluate battery storage plan
• MTC study on cost containment: $70M in savings
15 • Federal Transportation Administration Triannual Review (August 2026) - No findings Non-Fare Revenue Strategies
16 Property Holdings
Revenue
Advertising
RevenueParking Revenue
Energy Storage
Solutions
Fiber Optic Cable and
Telecommunications
Leasing
Optimize parking
pricing across the
corridor
Expand on-train and
station advertising
program with new
electrified fleet
Explore battery
storage to capture
regenerative
braking energy and
reduce costs
Leverage right-of-
way for
telecommunications
infrastructure
revenue
Increase revenue
from Caltrain’s
property portfolio
through leasing and
development
Exploring new revenue sources
Short Term Long Term
Schedule
Continue FY26 Service Levels
Maintain current service level using one-time State Loan funds through FY27.
March 2026:
State Loan
FY2028FY2026
Continue FY26 Service Levels
Service CutsPlan and Prepare for Service Cuts
FY2027
June 2026: Caltrain Board
Adopts FY27 Budget and
Framework for No External
Funding Scenario
November 2026:
General Election
Summer 2027: Measure
Funds Flow for FY28
17 Fiscal Year 28+
1818
Current Service vs. Potential Cuts in a No External Funding ScenarioToday: Frequent Service 7 days a week Potential Service Cuts (FY28+) Frequent Weekday Service
Trains every 15 minutes peak; every 30 off-peak
Weekend Service
Trains every 30 minutes Saturday and Sunday
Long Hours of Service
Trains from ~5 AM to ~1 AM
Special Event Service
Extra trains support concerts, games and more
Hourly Weekday Service
Once per hour all day
No Weekend Service
All Saturday and Sunday trains eliminated
Early Shutdowns
End operations by 9 PM
No Special Event Service
Eliminate all special event trains
Station Closures
Close more than one-third of all stations. Potential for full-service suspension if no external funding continues.
19 Why Cuts Make the Problem Worse (Downward Spiral)
Cut Service
Reduced frequency
and span of service
delivers most savings.
Fewer Riders
Fewer riders due to
inconvenient service,
reducing ridership by
a projected 60% to
70%
Less Revenue
Less fare, parking,
advertising, leasing
revenue offsets
cost savings
Creates Cycle
Difficult to
Reverse
Deficit persists,
forcing
further reductions
Ridership could decrease significantly,
with losses compounded by other
agencies' contemplated cuts.
1 2 3 4
20 Regional Transit – Connected Implications
• Specific cuts are not certain yet.
• Contemplated cuts to other agencies in
conjunction would increase Caltrain’s
ridership loss.
• If no external funding, passenger service
could stop and focus exclusively on
maintenance and safety of the corridor
and assets.
• Once shut down, minimum 2-4 years to
resume Caltrain passenger service.
21 Critical Inflection Point
No External Funding Scenario
Even Significant Cuts Won't Solve
the Deficit
Cutting service drives away riders,
reducing operating revenue in
a downward spiral, offsetting much
of the savings from cuts. Significant
deficit remains.
Reduce to hourly service
Eliminate weekend service
End service at 9:00 PM
Close ~1/3 of stations
Cut segments of service
Cuts to administrative costs
Eliminate special event service
Suspend all Caltrain service
Ridership & Revenue Are Growing
Caltrain will continue to grow
ridership, generate revenue, and find
cost savings — but growth and cuts
cannot close the gap.
22 Important Crossroads
23 FOR MORE INFORMATION
WWW.CALTRAIN.COM
24