DOWNTOWN ZONING
ADJUSTMENTS
SEPTEMBER 22, 2026
CITY COUNCIL
AGENDA
I. Objective
II. Background
III. City Council Direction
2 3
Finalize direction from the City Council on the Downtown Zoning Adjustments
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
September 8, 2026 City Council Study Session
5 Topical Areas Potential Change 5/19 Joint
Session
7/21 PC
SS 9/8 CC SS 9/22
Question
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)
Adjusting
Allowed Uses
Adjust ground and upper floor allowances
?
Separate Grocers, Liquor Stores, Smoke Shops from Retail ? Adjust Personal Service allowances ?
Amortization
Require LNC businesses to be phased out
Require prohibited Smoke Shops to be phased out?
Require existing “bright light” improvements be phased out? Incentives Maintain less-than-cost-recovery fees for planning applications
SUMMARY
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
8 Original Schedule Current Schedule
May 19 Joint SS
May 19 Joint SS
July 21 PC SS
Sept 8 City Council SS
Sept 22 City Council SS
Late Summer PC hearing Tentative December PC
hearing
Early fall City Council
hearing
Tentative February City
Council hearing
Effective date = winter
(Dec)
Tentative effective date =
spring (end of March)
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
9 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?
REQUESTED CITY COUNCIL DIRECTION
September 22, 2026
DOWNTOWN PAID PARKING
PROGRAM UPDATE
Joseph Toney, Assistant City Manager
Matt Lethin, Police Chief
Nick Pegueros, Administrative Services Director & CFO
Ana Morales, Parking Program Manager
Matthew Lee, P .E., Public Works Director
City Council Study Session
AGENDA
I.
Study Session Goal
II.
Program Background
III.
Program Operations
IV.
Program Financials
V.
Downtown Economics
VI.
Options
VII.
Next Steps
VIII.
Feedback
2 3
STUDY SESSION GOAL
Reconfirm Goals and Share Program Health
Reconfirm a shared understanding of the Program’s goals along with current financial position, utilization, costs, and funding gap.
Assess Performance and Program Baseline
Review what actual data shows about revenue, customer behavior, operating costs, and on
-
street/off
-
street demand.
Stabilize the Program Finances
Provide direction on a near
-
term approach to strengthen the
existing Program Financials and inform future adjustments.
4 PROGRAM
BACKGROUND
5 Adopted February 12, 2013
o
Encouraged consideration
of paid parking
o
Called for pricing strategy
aimed at achieving 85%
occupancy in all areas
•
With h
igher
pricing in
high
-
demand areas and
lower pricing in lower
-
demand areas to
maintain parking
availability and turnover
Accepted January 22, 2019
o
Documented the imbalance
between high
-
demand on
-
street and underused off
-
street parking
o
Recommended paid
parking downtown to
encourage short
-
term
parking and increased
turnover on San Mateo Ave,
while directing long
-
term
parkers into lots
6 Resolution 2023-115:
• Adopt rates and
regulations for paid
parking
• Grant authority to Police
Chief to set meter rates
• Establish target 85%
utilization
• Establish discount
parking permit program
for downtown
businesses
OCTOBER
2023
APRIL
2024
Implement
paid parking
program
JANUARY
2025
Resolution 2025-06:
Adopt all City-
recognized holidays
MAY
2025
Resolution 2025-48a:
• Eliminate paid parking downtown
between 8-10AM for on-street parking
• Transfer authority from Police Chief to
City Manager to set meter rates
• Amend LAZ agreement to add
dedicated meter technician
JUNE
2025
Resolution 2025-64:
• Eliminate paid parking
restrictions on El Camino Real
(21 kiosks); keep 2-hour
parking limit
• Include a $0.50 rate for off-
street parking lot spaces if
using coins and include pass
through of transaction fee for
credit card payment
OCTOBER
2025
Resolution 2025-103:
Authorize Five-Year
General Services
Agreement with
ParkMobile
FEBRUARY
2026
Implement
ParkMobile
TIMELINE
Program administration
transferred from Police
to Public Works
• Resolution 2023-41:
Create parking enterprise
fund
• Resolution 2023-42:
Execute contract with LAZ
for parking enforcement
and meter mgmt.
• Resolution 2023-43:
Execute contract with T2 for
metered parking kiosks
APRIL
2023
PROGRAMMATIC
CHANGES
7 Changes Estimated
Revenue Impact
1 Adopt discounted off-street parking
permit program for business owners and
employees, including complimentary
annual off-street permits
$50,760
2 Eliminate paid on-street parking between
8:00 AM and 10:00 AM $110,000
3 Add discounted $0.50 one-hour off-street
parking option and absorb the $0.10
credit card transaction fee
$32,100
4 Remove paid parking on El Camino Real $27,000
Estimated Total $219,860
7 Resolution No. 2023-115
Resolution No. 2025-48a
Resolution No. 2025-64
Resolution No. 2025-64
8 PROGRAM
OPERATIONS
9 PROGRAM STRUCTURE
10 Parking
Enforcement
Municipal Code Violations
for Downtown Paid Parking
Program
o 7.26.050: Unpaid Meter Parking
o 7.26.060: Additional Unpaid Meter
Parking
o 7.26.070: Meter Parking Over Time
Limit Within the Block
Citywide
Downtown
11 GREEN ZONE
SCENARIO
$7,250
Paid Green Zone Conversion
Estimated annual
revenue per space
Projected annual impact by
number of green zone spaces:
Spaces Convert an Unpaid/Free
Green Zone to Paid
1 $7,250
2 $14,500
3 $21,700
4 $29,000
5 $36,200
6 $43,500
UTILIZATION TRENDS
90 91 83
58 64 60
40 50
60 70
80 90
100
April May June
On-street Off-street 85% goal
88.3%
3-month average on-street utilization
60.7%
3-month average off-street utilization
85%
Utilization target
12 Turnover achieved for peak time on-street parking
GOAL MET
13 SAN MATEO COUNTY COMPARISON
*
*
* Includes upcoming rate increases
14 PROGRAM
FINANCIALS
15 Initial Program Projections
As presented April 2023
$593,952
$3,018,120 $3,018,120 $3,018,120
$486,254 $565,283 $579,197 $593,529
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY24 FY25 FY26 FY27
Revenue Expenditures
Estimated operating gap:
($0.56M)
$1.16
$1.72
($0.56)
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
Revenue Expenditures Gap
Millions
16 Outstanding loan estimate:
$2.42M
FY27 Adopted Budget
17 REVENUES & TRANSACTIONS
$160,536
$648,659 $578,387
$621,972
$568,724
93,464
382,101 377,387
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY23-24 FY24-25 FY25-26
Paid Parking Revenue Citation Revenue Transactions
Revenue
Transactions
FY24
Actual
FY25
Actual
FY26 Actual
(unaudited)
Paid Parking Program
Unpaid Meter Parking 117,288 602,704 556,669
Additional Unpaid Meter Parking 2,409 2,108 389
Meter Parking Over Time Limit w/in Block 2,100 17,170 11,574 Other LAZ Enforcement
Street Cleaning 307,695
350,325 334,480
Fire Lane 17,513 21,772 38,534
Overtime Parking (2-hour parking on El Camino Real) 3,488 29,114 53,005 Yellow Curb - Loading Zone 3,310 7,806 40,521
Total $453,803 $1,030,999 $1,035,172
18 Citation Revenue History
19 FY27 Budgeted Expenditures
Excludes unfunded loan repayment & equipment replacement Contractual services $0.68M
Intergovernmental $0.36M
Professional services $0.30M
Internal service charges $0.26M
Salaries + benefits $0.09M
Materials + training $0.02M
FY27 Expenditure Estimate: $1.72M
20 Expenditures History
FY24 Actuals
FY25 Actuals
FY26 Actuals, unaudited
FY27 Budget
$0.00
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
$432,179.07
$638,889.97
$862,236.17
$1,717,547.00
FY24 Actuals FY25 Actuals FY26 Actuals, unaudited FY27 Budget 21 DOWNTOWN
ECONOMICS
22 DOWNTOWN STOREFRONT ACTIVITY
145
Total Storefronts
125
Open
20 (14%)
Vacancy
Economic
Development
23 24
WHERE WE
ARE NOW
25 Program Goal
Is the primary goal of the Downtown
Parking Program to continue to
prioritize convenient on street parking
availability to support businesses?
Program Funding
To what extent should the Downtown
Parking Program revenues cover the
cost of operating the program?
Parking Revenue Usage
Should the City maintain two parking
program accounting structures
(Citywide & Downtown) or just one?
Should profits be reinvested in
Downtown?
Next Steps
Feedback on Next Steps
POLICY CONSIDERATIONS
25 26
OPTIONS
FOR CONSIDERATION
27 OPTION 3
Two-Year Glidepath
Year 1 General Fund
Cost:
$337,687
RECOMMENDED
OPTION 2
Full Revenue Package
No General Fund
Support
Fastest cost recovery
OPTION 1
No Changes
General Fund Cost:
$557,547
Remain as is
28 OPTION 1
No Changes
General Fund
Cost:
$557,547
Remain as is
o Current rates
o Current paid areas
o Current hours
o Current green
zones
o Current business
permit policies
Preserves
o Operating funding
solution
o Long-term debt
o Cost recovery
Defers
Additional Annualized Revenue: $0
29 OPTION 2
Full Revenue
Package
No General Fund
Support
Fastest cost
recovery
Restore Policy
Changes
$219,860
Targeted Rate
Increase
$341,157
6 Paid Green
Zones
$43,500
Estimated Additional Annualized Revenue:
$604,517
YEAR 1:
Stabilization
Data Collection:
o Transactions, parking revenue,
citations, utilization, permits,
enforcement, customer behavioral
changes, downtown conditions
OPTION 3
Two-Year
Glidepath
Year 1 General
Fund Cost:
$337,687
RECOMMENDED
YEAR 2:
Use data to make decisions on:
o Rate adjustments
o Green zone changes
o Permit policy changes
o Enforcement changes
o Other programmatic changes
30 Estimated Additional
Annualized Revenue:
$219,860
Estimated Additional
Annualized Revenue:
Year 1 + TBD
NEXT STEPS
31 Year 2:
Propose measured
rate adjustments to
cover program
costs
Year 1:
Confirm Actual
Revenues
Return with consent
item to reverse four
programmatic
changes to
generate projected
$220K
32 FEEDBACK