Agenda packet — San Carlos City Council, November 25, 2024

CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
November 25, 2024 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still recommended by the California Department of Health. To maintain public health and safety, please do not attend in person if you are experiencing respiratory symptoms (e.g. cough, runny nose, and/or sore throat).

Provide Public Comment. To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation :

Observe via:
Zoom. https://us02web.zoom.us/j/88256140939; or call 16699009128 and enter the Meeting ID #: 882 5614 0939
Meeting Webportal . www.cityofsancarlos.org/agenda Local TV. Comcast Channel 27 and AT&T Uverse Channel 99 Provide Public Comment. If you plan to make a public comment on any item on the posted agenda, please observe the meeting via Zoom (see above access information), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely as authorized by Assembly Bill 2449.

MAYOR: John Dugan
COUNCIL: Ronald Collins, Sara McDowell, Adam Rak, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

6. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so. Each speaker is limited to two minutes.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as allowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public discussion and input at that time.

7. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the October 28, 2024 City Council Regular Meeting Minutes. c. Adopt a Resolution Accepting the Annual Report for the Year Ended June 30, 2024 on Development Impact Fees, Reaffirming Necessity for Development Impact Fees, and Making Findings Related to Impact Fee Balances and InLieu Fees. d. Adopt a Resolution Accepting the City of San Carlos's Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2024. e. Accept the Fiscal Year 202425 First Quarter Investment Report for the Period Ending September 30, 2024.
f. Accept the Fiscal Year 202425 First Quarter Financial Report for the Period Ending September 30, 2024.
g. Deny Claim of Thomas Feledy.
h. Adopt a Resolution Authorizing the City Manager to Execute an Agreement for Engineering Design Services with Schaaf & Wheeler for the Annual Storm Drain Improvement Project in the Amount of $128,850 and Authorizing a 20% Contingency Budget in the Amount of $25,770 for a Total NotToExceed Contract Amount of $154,620.
i. Adopt Resolutions Appropriating $20,000 from the General Capital Fund (Fund 0025) Unassigned Fund Balance and Amending the Public Projects Agreement with Beals Martin and Associates, Inc. for the Landslide Repair at 995 Crestview Drive – Project #C2318; and Appropriating $50,000 from the General Capital Fund (Fund 0025) Unassigned Fund Balance and Amending the Public Projects Agreement with Central Pacific Engineering, Inc. for the Landslide Repair at 3144 Brittan Avenue – Project #C2319.
j. Adopt a Resolution Authorizing the City Manager to Execute Amendment 1 to the Agreement with Chrisp Company to Increase the Contract by $25,000 to a Notto Exceed Amount of $325,000 for the 2023 OnCall Traffic Striping and Marking Project C9417.
k. Adopt a Resolution Approving the Updated Elected Officials Salary and Benefit Resolution to Reflect Ordinance 1610 Changes to the San Carlos Municipal Code Section 2.08.020 and Adopting the Updated Comprehensive Master Salary Schedule for Fiscal Year (FY) 202425 in Accordance with Title 2 of the California Code of Regulations Section 570.5 and the California Employees Retirement System (CALPERS).

8. REPORTS TO COUNCIL
Reports to the Council are updates on key City Projects by City Staff and City Council Subcommittees. They are informational in nature, and no action will be taken on these items at this meeting.
a. Receive a Presentation on the Community Benefits Map.

9. NEW BUSINESS
a. Consideration of Adopting a Resolution Approving Childcare Grant Requests and Appropriating an Additional Budget Amount from the Child Care Grant Fund (Fund 26) Unassigned Fund Balance as Needed to the Newly Established Childcare Grant Program to Utilize Funds Collected through the Childcare Development Impact Fees to Increase Childcare Spaces Within the City of San Carlos. b. Consideration of Adopting a Resolution Stating the City Council's Position of No Confidence in Sheriff Christina Corpus and Calling on Sheriff Corpus to Resign.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In compliance with the Americans with Disabilities Act and Title VI, and as outlined in the City’s Reasonable Accommodations Policy, if you need special assistance or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 8024222 or via email at cityclerk @cityofsancarlos.org. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

1 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
November 25, 2024 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Remote Participation :

Councilmembers may participate in this meeting remotely as authorized by Assembly Bill 2449.

MAYOR: John Dugan
COUNCIL: Ronald Collins, Sara McDowell, Adam Rak, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

6. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so. Each speaker is limited to two minutes.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

2 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
November 25, 2024 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Remote Participation :

Councilmembers may participate in this meeting remotely as authorized by Assembly Bill 2449.

MAYOR: John Dugan
COUNCIL: Ronald Collins, Sara McDowell, Adam Rak, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

6. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so. Each speaker is limited to two minutes.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

3 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
November 25, 2024 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both inperson at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

InPerson Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Remote Participation :

Councilmembers may participate in this meeting remotely as authorized by Assembly Bill 2449.

MAYOR: John Dugan
COUNCIL: Ronald Collins, Sara McDowell, Adam Rak, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

6. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so. Each speaker is limited to two minutes.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Adopt a Resolution Accepting the Annual Report for the Year Ended June 30, 2024 on Development Impact Fees, Reaffirming Necessity for Development Impact Fees, and Making Findings Related to Impact Fee Balances and In-Lieu Fees.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution accepting the annual report for the year ended June 30, 2024 on development impact fees, reaffirming the necessity for the development impact fees, and making findings related to impact fee balances and in-lieu fees.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with accepting this report.

BACKGROUND:

This administrative report serves as the City’s annual report on development impact fees, as required by Government Code section 66006 and in accordance with the Mitigation Fee Act, specifically Government Code section 66001(d). It includes details of the City’s park in-lieu fees, which are governed by Government Code section 66477, and addresses the City’s other in-lieu and linkage fees for informational purposes.

ANALYSIS:

The City has a number of Development Impact Fees (DIFs) including the traffic impact fee, park facility development fee, affordable housing impact fee, commercial linkage fee, sewer capacity charge, childcare development fee, and the sewer connection pass-through fee. Detailed descriptions of these fees are available to the public on the City’s website and in their respective sections of the Municipal Code.

In California, state legislation sets certain legal and procedural parameters for charging of DIFs.

This legislation was passed as Assembly Bill (AB) 1600 by the California Legislature. Government Code section 66006(b) states the following requirements with respect to DIFs:

For each separate account or fund established, the local agency shall, within 180 days after the last day of each fiscal year, accept the report and make available to the public the following information for the fiscal year:

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A.A brief description of the type of fee in the account or fund.

B. The amount of the fee.

C. The beginning and ending balance of the account or fund.

D. The amount of the fees collected and interest earned.

E. An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with the fees.

F. An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.

G. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.

H. The amount of refunds made (pursuant to Government Code section 66001(e)) due to sufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made (pursuant to Government Code section 66001(f)) due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

In addition, the Mitigation Fee Act requires local agencies to adopt “five-year findings” in accounting for development impact fee proceeds.

The following findings are made as required by the Government Code Section 66001:

1. The purpose to which each Development Impact Fee is collected for has been identified.

2. There is a continued need for the improvements and there is a reasonable relationship between the fee and the purpose for which it is charged.

3. The sources and amounts of funding anticipated to complete the financing of capital projects have been identified and will be deposited into the appropriate account upon receipt or during the normal capital improvement program budget cycle. For the fiscal year 2023-24 ended June 30, 2024, none of the impact fees collected by the City have been held for a period greater than five years.

4. A copy of the Resolution will be posted on the website and forwarded to the Administrative Services Director for use in overseeing these monies.

5. These findings are based, in part, on information provided in the City’s Capital Improvement Program.

The attached report contains details to satisfy the requirements of Government Code section 66006 and 66001. Once accepted by the City Council, it will be made available to the public on the Financial Reports and Policies page of the City’s website. It also describes the City’s park land dedication in-lieu fee, which is governed by Government Code section 66477, and the City’s affordable housing in-lieu fee and parking in-lieu fee. The report shows these fees grouped by fund.

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Many projects have been either partially or fully funded over the past five fiscal years through the City’s DIFs and in-lieu fees. These include the San Carlos Ave Pedestrian Safety Improvements Phase III project ($2.4 million) through the traffic impact fee; the Park Bathroom Replacement project ($1.2 million) and Installation of New Sports Field Lighting at Flanagan and Stadium Fields project ($1.5 million) through the park land dedication in-lieu fee and park facility development fee; the Cherry Street Below Market Rate Housing project ($3.1 million) and the Affordable Housing Site Acquisition/Construction project at 1800 El Camino Real and 1131-1133 Eaton Avenue ($12.4 million) through the commercial linkage fee and affordable housing in-lieu fee; and sewer system improvements ($4.5 million) through collection of the sewer capacity charge.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution accepting the Annual Report for the year ended June 30, 2024 on development impact fees and making findings related to impact fee balances and in-lieu fees; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Development Impact Annual Report FY 2023-24

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS ACCEPTING THE ANNUAL REPORT FOR THE YEAR ENDED JUNE 30, 2024 ON

DEVELOPMENT IMPACT FEES, REAFFIRMING THE NECESSITY FOR

DEVELOPMENT IMPACT FEES, AND MAKING FINDINGS RELATED TO IMPACT FEE BALANCES AND IN-LIEU FEES.

WHEREAS, Government Code Sections 66000 et seq., commonly known as the Mitigation Fee Act, regulate the imposition, collections, expenditure, and reporting of development impact fees; and
WHEREAS, Government Code Section 66006 requires that certain information be made available to the public regarding development impact fees on an annual basis; and WHEREAS, Government Code Section 66001 requires that local agencies adopt “five- year findings” in accounting for development impact fee proceeds; and WHEREAS, Government Code Sections 66477 et seq. regulate the imposition, collections, and expenditure of park in-lieu fees; and
WHEREAS, the City of San Carlos assesses a number of development impact fees – traffic impact fee, park facility development fee, commercial linkage fee, childcare development fee, and sewer capacity charge; and
WHEREAS, the City of San Carlos also collects a number of in-lieu fees – park land dedication in-lieu fee, affordable housing in-lieu fee, and parking in-lieu fee; and WHEREAS, the City Council of the City of San Carlos has read and considered the Development Impact Fees and In-Lieu Fees Annual Report for the year ended June 30, 2024; and
WHEREAS, the following findings have been made as required by the Government Code Section 66001:

1. The purpose to which each development impact fee is collected for has been identified.

2. There is a continued need for the improvements and there is a reasonable relationship between the fee and the purpose for which it is charged.

4. A copy of the Resolution will be posted on the website and forwarded to the Administrative Services Director for use in overseeing these monies.

5.These findings are based, in part, on information provided in the City’s Capital Improvement Program.

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NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of San Carlos hereby accepts the Development Impact Fees and In-Lieu Fees Annual Report for Fiscal Year 2023-24 and reaffirms the necessity for development impact fees and has made findings related to impact fee balances and in-lieu fees.
* * * * *
I, City Clerk Crystal Mui, hereby certify the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November, 2024 by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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City of San Carlos
Development Impact Fees and In-Lieu Fees – Annual Report Fiscal Year Ended June 30, 2024
This Administrative Report serves as the City’s annual report on development impact fees, as required by Government Code Section 66000-66008, and on park in-lieu fees, as required by Government Code Section 66477. This report also includes the City’s other fees not governed by these specific Government Code sections.

Development Impact Fees
The City of San Carlos assesses several development impact fees – Traffic Impact Fee, Park Facility Development Fee, Commercial Linkage Fee, Sewer Capacity Charge, Childcare Development Impact Fee, and the Silicon Valley Clean Water (SVCW) Sewer Connection Pass- through Fee.

Local governments often charge fees as a condition of approval for development projects to fund public improvements to compensate for the demands that the developments have on public infrastructure. These fees are commonly known as development impact fees. In 1989, the State Legislature passed Assembly Bill 1600 (AB 1600), which added Sections 66000 et seq. to the California Government Code, commonly known as the Mitigation Fee Act. As required by law, these fees are segregated and accounted for in a separate fund. Per AB1600, each fee collected to mitigate a specific impact must be spent within five years of collection. If the fee is held over this five-year period due to specific circumstances or insufficient collection for the need improvements, the City Council must take specific findings to continue holding the fees, otherwise, the fees are subject to refund. For the FY 2023-24 ended June 30, 2024, none of the impact fees collected by the city have been held for a period greater than five years. Government Code Section 66001 requires the city to make available to the public certain information regarding these fees for each fund within 180 days after the end of each fiscal year.

In-Lieu Fees
In-lieu fees are fees that are also collected by the city instead of requiring developers to provide or construct specified improvements or amenities with their projects. The City of San Carlos assesses a few in-lieu fees – Park Land Dedication In-Lieu Fee, Affordable Housing In-Lieu Fee, and Parking In-Lieu Fee.

This report summarizes the following information for each of the development impact fee programs and in-lieu fees, categorized by the funds in which the fees are collected:
•A brief description of the fee program
•A schedule of fees, where applicable, or reference to it in the City’s Municipal Code •Beginning and Ending fund balances of the fee program
•Total fees collected and the interest earned, if applicable •Disbursement information

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The table below shows the summary of the development impact and in-lieu fees for Fiscal Year 2023-24:

Fund 25
Traffic Impact Fee
City of San Carlos Municipal Code Chapter 8.50 establishes a Traffic Impact Fee to fund transportation improvements to help accommodate new residents and businesses brought to San Carlos as a result of new development projects. The Traffic Impact Fee is accounted for in the General Capital Project Fund (0025) restricted account.

Traffic Impact Fee Schedule
Category Fee Basis
Office $8,545.00 Per 1,000 Square Foot
Lab $3,641.00 Per 1,000 Square Foot
Manufacturing $4,978.00 Per 1,000 Square Foot
Warehouse $1,412.00 Per 1,000 Square Foot
Restaurant (High Turnover) $72,591.00 Per 1,000 Square Foot Retail $28,308.00 Per 1,000 Square Foot
Single Family Residential $7,356.00 Per Dwelling Unit
Apartment $4,161.00 Per Dwelling Unit
Condominium $4,161.00 Per Dwelling Unit
Hotel $4,458.00 Per Room
Medical Office $25,708.00 Per 1,000 Square Foot

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Traffic Impact Fee Collection and Expenditure Schedule
June 30, 2020 – June 30, 2024
The total ending balance as of the end of Fiscal Year 2023-24 was $1,364,950 and no Traffic Impact Fees funds have been held longer than five years. The San Carlos Ave Pedestrian Safety Improvements Phase III project and the Brittan Avenue Sidewalk Improvements (Between Rogers Ave & Sunset Drive) are currently identified in the capital improvement five-year plan as a recipient of funds. The City is continuing to collect fees for future projects.

Fund 26
Child Care Development In-Lieu Fee
On June 27th, 2022, the City Council introduced Ordinance 1585 adding Chapter 8.52 to the San Carlos Municipal Code, establishing a Childcare Development Impact Fee program for new nonresidential developments in the City. On August 22, 2022, the Council completed the second reading of Ordinance 1585, which became effective 30 days thereafter.

Child Care Development Fee Schedule
Child Care Development Fee Collection and Expenditure Schedule June 30, 2020 – June 30, 2024
Fiscal Year 2020 2021 2022 2023 2024
% of Project funded by Fee to date
Commence Approximate DateBeginning Fund Balance 2,528,117$ 1,944,714$ 2,079,368$ 2,563,740$ 2,685,997$ Revenues Interest Earnings 70,043 451 (57,986) 29,030 140,694 Impact Fees 233,761 512,067 542,358 93,227 992,344 Transfer inTotal Revenues 303,804 512,518 484,372 122,257 1,133,038 ExpendituresHolly St/101 Interchange Study 887,207 377,865 - - 100.0% CompletedSan Carlos Ave Pedestrian Safety Improvements Phase III 2,401,150 36% In progressBrittan Avenue Sidewalk Improvements (Between Rogers Ave & Sunset Drive) 52,935 3% In progressTotal Expenditures 887,207 377,865 - - 2,454,085 Revenues over (under) Expenditures (583,403) 134,653 484,372 122,257 (1,321,047) Fund Balance June 30 1,944,714$ 2,079,368$ 2,563,740$ 2,685,997$ 1,364,950$

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The total ending balance as of the end of Fiscal Year 2023-24 was $1,090,502 and no Child Care Development Fees funds have been held longer than five years. This in-lieu fee will continue to be collected to build the fund balance, and potential projects will be identified as the fund balance reaches an appropriate level. The Council has adopted a Child Care Grant Program with a $250,000 annual funding amount beginning in FY 2024-25 that these funds will be used toward.

Fund 27
Park Land Dedication In-Lieu Fee
Park In-Lieu Fees are assessed pursuant to the Quimby Act under Government Code Section 66447. Under the Quimby Act, local governments may require the dedication of land for parks or the payment of fees in-lieu of land dedication as a condition of subdivision map approval.

The Park Land Dedication In-Lieu Fee is collected and expended to purchase land, buy equipment, or construct improvements in neighborhood parks and recreation facilities serving such subdivisions. The fee is accounted for in the Park In-Lieu Fund (0027).

Calculation of Subdivision Park Land Dedication In-Lieu Fee The Municipal Zoning Code section 17.32.030 requires new subdivisions to pay Park and Recreation land dedication fees in-lieu of land dedication: Fee = A x B x C A = The acreage required per dwelling unit within the proposed subdivision for park and recreational facilities from this title (see Table 17.32.030), e.g. 0.00475 B = The number of dwelling units in the proposed subdivision, e.g. 18 C = The fair market value per acre of land in the proposed subdivision, e.g. $18,708,871 Fee Example Calculation: Fee = (0.00475) x (18) x ($18,708,871) = $1,599,608.47

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However, Code section 17.32.030 caps these fees at 50% of the highest in-lieu fee collected by the City for single-family residential subdivisions since March 1, 1976 (on an average, per dwelling basis). The highest fee collected for a single-family subdivision since 1976 was $38,084.63 per unit (in 2016: 2 lot subdivision at 1985 Carmelita).

Park In-Lieu Fee = 50% x ($38,084.63) = $19,042.32 per unit Total Fee = $342,761.76 ($19,042.32 x 18 units)
Park Facility Development Fee
Park Facility Development Fees are assessed pursuant to Law of the City of San Carlos (Ord. 1007 § 1 (part), 1988) per Municipal Code section 3.34. The fee is accounted for in the Park In-Lieu Fund (0027) and is used for the acquisition, development, renovation, and replacement of parks and recreational areas and their development, including equipment for recreational purposes.

The Park Facility Development Fee for Fiscal Year 2023-24 = $2,692 per bedroom Park Land Dedication In-Lieu Fee and Park Facility Development Fee Collection and Expenditures Schedule
June 30, 2020 – June 30, 2024
The total ending balance as of the end of Fiscal Year 2023-24 was $914,223 and no Park Facility Development Fees funds have been held longer than five years. This in-lieu fee will Fiscal Year 2020 2021 2022 2023 2024
% of Project funded by Fee to date
Commence Approximate DateBeginning Fund Balance 2,519,269$ 1,533,928$ 1,585,257$ 2,055,962$ 1,053,022$ Revenues Interest 40,565 321 (40,831) 18,948 48,684 Park Facility Development Fees 149,647 194,212 150,248 95,455 34,914 P&R Dedication in-Lieu Fees 114,254 152,388 571,270 342,762 -Total Revenues 304,466 346,921 680,687 457,164 83,598 ExpendituresChilton Park Improvements 44,781 269,095 185,482 104 100% CompletedPark Bathroom Replacement 1,200,000 - - - 100% CompletedHighland Park Tennis Court Resurfacing - 24,500 - 100% CompletedShade Structure Improvements 45,026 26,497 - - 100% CompletedInstallation of New Sports Field Lighting at Flanagan and Stadium Fields - - - 1,460,000 62% In progressNorth Crestview Park New Master Plan 145,049 36% In progressParks Master Plan 3,052 0.5% In progressTrail Improvements, expansion and connections 74,296 9% In progressTotal Expenditures 1,289,807 295,592 209,982 1,460,104 222,397 Revenues over (under) Expenditures (985,341) 51,329 470,705 (1,002,940) (138,799) Fund Balance June 30 1,533,928$ 1,585,257$ 2,055,962$ 1,053,022$ 914,223$

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continue to be collected to build the fund balance, and potential projects will be identified as the fund balance reaches an appropriate level.

Fund 28
Parking In-Lieu Fee
City of San Carlos Municipal Code Chapter 18.20 establishes a Parking In-Lieu fee to fund programs to reduce parking impacts including acquisition, development, and maintenance of parking facilities located in the parking assessment district; transportation system management projects (Ord. 1537 (Exh. C (part)), 2018; Ord. 1438 § 4 (Exh. A (part)), 2011); transit or paratransit passes, coupons, and tickets to be made available at a discount to employees and customers and to promote and support incentives for employee ride-sharing and transit use.

The full schedule defining the requirements for parking spaces can be found in Municipal Code section 18.20.040.

Parking In-Lieu Fee Collection and Expenditures Schedule June 30, 2020 – June 30, 2024
The total ending balance as of the end of Fiscal Year 2023-24 was $233,696 and no Parking In-Lieu Fees have been held longer than five years. The balance remaining in this fund has been budgeted to be transferred and applied against project C1816 Parking Occupancy Study and project C2206 East Side Innovation District Parking Strategy in FY 2024-25.

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Fund 29
Commercial Linkage Fee
The City of San Carlos Municipal Code Chapter 8.51 establishes a development impact fee for fund construction, acquisition, or financing of new existing multi-family affordable housing projects. The purpose of the Commercial Linkage Fee is to encourage the development and availability of housing affordable to a broad range of individuals and families with varying income levels within the city as mandated by State law, California Government Code Section 65580.

The Linkage Fee applies to commercial projects including changes in use, additions to floor area, and new developments as noted below.

Commercial Linkage Fee Schedule
Category Fee
Retail, Restaurant, & Personal Service $ 5.00 per net new square footHotel $10.00 per net new square footOffice, Medical Office, Research & Development $20.00 per net new square foot Affordable Housing In-Lieu Fee for Residential Development Per Municipal Code section 18.16.030, for all residential ownership developments of five or more dwelling units, at least twenty percent of the total units shall be Below Market Rate (“BMR”) units restricted for sale to and occupancy by low-income households unless the residential development is exempt under Section 18.16.040. For all residential rental developments of seven (7) or more dwelling units, at least fifteen percent (15%) of the total units shall be below market rate units restricted for rent to and occupancy by low and very low- income households unless the residential development is exempt under Section 18.16.040.

At least fifteen percent of the total units in a residential rental development shall be below market rate units, of which ten percent shall be affordable to very low-income households and five percent affordable to low-income households.

For a residential ownership development of one (1) dwelling unit, or for an addition of one thousand (1,000) square feet or more to an existing dwelling unit that may be sold individually, the builder shall pay an in-lieu fee or construct an accessory dwelling unit.

For a residential development that creates one (1) additional lot, or two (2) to six (6) rental dwelling units and/or lots, or two (2) to four (4) ownership dwelling units and/or lots, or for a residential development that triggers a decimal fraction of less than one-half (0.5), the builder shall pay an in lieu fee for the fractional unit requirement or build a below market rate unit affordable to a low-income household.

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For residential rental developments, the following table applies:

Commercial Linkage and Affordable Housing In-Lieu Fees deposited in the Housing In-Lieu Fund (0029) shall be used in accordance with the City’s Housing Element, or subsequent plan adopted by the City Council to maintain or increase the quantity, quality, and variety of affordable housing units or assist other governmental entities, private organizations, or individuals to do so. Permissible uses include, but are not limited to, land acquisition, new construction, and other pursuits associated with providing affordable housing. It may also be used to cover reasonable administrative or overhead related expenses associated with the administration of the program.

For Partial Fee based on Applicable Project Size:Step 1: Find line for Total Units in project under Column AStep 2: Go to Column H for Partial Fee Obligation per square footStep 3: Multiply figure in Column H by the actual average square feet per unit in project

A B D F G H
TotalUnits BMR 20%Obligation LowUnits
PartialLow UnitObligation
Incremental Partial Fee ObligationPer Avg. Sq. Ft.

Cumulative Project Partial Fee ObligationPer Avg. Sq. Ft. TotalUnits1 0.20 0.00 0.20 4.22 4.222 0.40 0.00 0.40 11.82 23.63 23 0.60 0.00 0.60 19.41 58.24 34 0.80 0.00 0.80 27.01 108.04 45 1.00 1.00 - - - 56 1.20 1.00 0.20 42.20 42.20 67 1.40 1.00 0.40 42.20 84.40 78 1.60 2.00 - - - 89 1.80 2.00 - - - 910 2.00 2.00 - - - 1011 2.20 2.00 0.20 42.20 42.20 1112 2.40 2.00 0.40 42.20 84.40 12

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Commercial Linkage and Affordable Housing In-Lieu Fees
Collection and Expenditures Schedule
June 30, 2020 – June 30, 2024
The total ending balance as of the end of Fiscal Year 2023-24 was $3,206,459 and no Commercial Linkage and Affordable Housing In-Lieu Fees funds have been held longer than five years. The fund balance and continued collection of fees will be used to fund the acquisition of property on the north side of Cherry Street between Laurel and Walnut for potential assemblage with the adjacent property to create new, affordable rental housing. On June 26, 2023, the City Council approved Resolution 2023-085 authorizing the execution of a financing agreement to purchase property on 1800 El Camino Real and 1131-1133 Eaton Avenue for affordable housing. The property sale finalized in October 2023 which utilized $12,472,850 in commercial linkage and affordable housing in-lieu funds.

Fund 6
Sewer Capacity Charge
San Carlos Municipal Code Chapter 13.04 establishes a sewer capacity charge to recover costs for the City’s sewer system infrastructure and assets that provide benefit to the new or expanded connection. Water and sewer capacity charges are governed by California Government Code section 66013. The sewer capacity charge applies based on the estimated Fiscal Year 2020 2021 2022 2023 2024
% of Project funded by Fee to date
Commence Approximate DateBeginning Fund Balance 6,698,196$ 8,114,932$ 9,448,459$ 12,098,079$ 12,123,575$ RevenuesInterest 230,955 8,242 (230,761) 213,852 163,964Commercial Linkage Fees - 1,943,280 4,004,180 264,684 4,134,120Affordable Housing in-Lieu Fees (BMR) 4,141,141 418,210 306,089 187,560 78,300Total Revenues 4,372,096 2,369,732 4,079,508 666,096 4,376,384 ExpendituresRegional Housing Contribution 105,000 154,500 157,600 132,300 168,800 100%AnnualCherry Street BMR 2,768,175 1,056 398,296 (73,378) 7,199 25%In progressAdministrative & Overhead Expenses 75,470 121,986 129,509 952,194 340,441 100%AnnualStudy Land Use and Regulatory Options 6,715 260,862 214,507 339,114 - 100%CompletedLow & Moderate Income Housing Units - 497,801 529,976 (1,027,777) - 100%Units Sold1232 Cherry Street Building Demolition - - - 347 189,510 76%In progress817 Walnut St - - - 310,000 - 100%Completed817 Walnut Oven Installation - - - 7,800 114,700 61%In progressAffordable Housing Site Acquisition/Construction - - - - 12,472,850 18%In progressTotal Expenditures 2,955,360 1,036,205 1,429,888 640,600 13,293,500 Revenues over (less than) Expenditures 1,416,736 1,333,527 2,649,620 25,496 (8,917,116) Fund Balance June 30 8,114,932$ 9,448,459$ 12,098,079$ 12,123,575$ 3,206,459$

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increase in volume of wastewater discharge from each new or expanded connection and shall be adjusted annually based on the change in the Engineering News-Record Construction Cost Index (20-Cities Average) from the March 2016 Index. The fee is accounted for in the Sewer Enterprise Fund (0006).

Sewer Capacity Charge Schedule

Sewer Capacity Charge Collection and Expenditures Schedule June 30, 2020 – June 30, 2024
The total ending balance as of the end of Fiscal Year 2023-24 was $0. The fund balance and continued collection of sewer capacity charge will be used for improvement and expansion of sewer facilities, including the collection system, and any other purpose allowed by State and Federal law.

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Sewer Connection Fee
In accordance with Municipal Code section 13.04.025 paragraph F, the City also collects the sewer connection fees adopted by Silicon Valley Clean Water (“SVCW”) from new or expanded connections to the sewer system in conformance with the City’s obligations under the Joint Powers of Authority Agreement between the City and SVCW. The current adopted rate is $7.91 per gallon per day.

Sewer Connection Fee Pass-Through Collection and Disbursement Schedule June 30, 2020 – June 30, 2024
The total fund balance as of the end of Fiscal Year 2023-24 was $517,152 and no Sewer Connection Fee funds have been held longer than five years.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Adopt a Resolution Accepting the City of San Carlos's Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ending June 30, 2024.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution accepting the City of San Carlos’s Annual Comprehensive Financial Report (ACFR) for the fiscal year (FY) ending June 30, 2024.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with accepting the FY 2023-24 ACFR.

BACKGROUND:

The financial statements of the City of San Carlos for the fiscal year ending June 30, 2024 were prepared by the Administrative Services Department staff and examined by an independent auditing firm Badawi and Associates, in accordance with Governmental Accounting Standards Board (GASB) Statement 34. It is the opinion of the auditors that the financial statements present fairly, in all material respects, the respective financial position of the City as of June 30, 2024, and that the financial statements were prepared in conformity with generally accepted accounting principles (GAAP).

The Administrative Services Department incorporates the financial statements into the ACFR, the purpose of which is to present an easily readable and organized report of the financial transactions of the City. The ACFR provides members of the public with a wide variety of information needed to evaluate the financial condition of the City. The final step in the formal process of preparing these financial statements is to transmit them to the City Council for acceptance.

ANALYSIS:

During its audit, Badawi and Associates also assessed the City’s internal controls over financial reporting in order to determine whether the City’s audit procedures are appropriate for the purpose of expressing opinions on the financial statements. Badawi and Associates did not find any deficiencies and issued a clean report. The Transmittal Letter and the Management, Discussion and Analysis (“MD&A”) sections of the ACFR summarize the financial results for the fiscal year ending June 30, 2024.

The change in net position, compared to the previous fiscal year, was an increase of $37.2 million.

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As of June 30, 2024, the citywide net position was $407.3 million.

The City’s General Fund revenues increased by $3.6 million, or 5.8%, compared to the prior fiscal year amount of $62.3 million. General Fund revenues, including property taxes, use of money and property, licenses and permits, and transient occupancy taxes increased compared to the prior year.

The City’s General Fund expenditures totaled $53.8 million, an increase of $4.5 million, or 9.1%, from prior year expenditures of $49.3 million. The increase in expenditures was primarily caused by increases in public safety contracts, increases in salaries and benefits per negotiated employee agreements, and a one-time payment of $3.0 million to CalPERS towards the City’s unfunded pension liability.

The net increase in fund balance for the year ending June 30, 2024 in the General Fund was $4.5 million and the ending fund balance was $59.0 million.

Additional details and information regarding the other operating and capital funds can be found in the attached financial statements, MD&A, and notes to the financial statements.

In parallel with the main financial audit, the auditors also carried out an Award Examination, in relation to the State and Local Fiscal Recovery Funds (SLFRF) the City previously received under the American Rescue Plan Act (ARPA), to determine that all compliance requirements have been met for the year ended June 30, 2024. After performing the examination, the auditors issued an opinion that the City had complied, in all material respects, with the necessary specified requirements of the award during the year ended June 30, 2024.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution accepting the City of San Carlos’s Annual Comprehensive Financial Report for the fiscal year ending June 30, 2024; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. FY 2023-24 Annual Comprehensive Financial Report

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS ACCEPTING THE CITY OF SAN CARLOS’S ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDING JUNE 30, 2024.

WHEREAS, the City of San Carlos contracted with the audit firm Badawi and Associates to conduct an audit of the City’s financial records in accordance with Governmental Accounting Standards Board Statement 34; and

WHEREAS, the financial statements for the fiscal year ending June 30, 2024, as prepared by said firm, have been completed; and

WHEREAS, it is recommended that the City Council accept the financial statements, known as the Annual Comprehensive Financial Report.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby accepts the City’s Annual Comprehensive Financial Report for the fiscal year ending June 30, 2024. * * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Accept the Fiscal Year 2024-25 First Quarter Investment Report for the Period Ending September 30, 2024.

RECOMMENDATION:

Staff recommends that the City Council review and accept the Quarterly Investment Report (“Report”) for the first quarter of fiscal year (FY) 2024-25 ending September 30, 2024.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with accepting the Report.

BACKGROUND:

On June 10, 2024, the City Council approved the Annual Investment Policy (“Policy”) per Resolution No. 2024-059. In accordance with the Policy, the City Administrative Services Director is responsible for investing the unexpended cash used for funding operations of the City of San Carlos (“City”).

The investment of funds for the City is directed by the goals of safety, liquidity, and yield. The authority governing investments for municipal governments is set forth in the California Government Code, sections 53601 through 53686 (Code). Effective January 1, 2023, per section 53646 (b)(1) of the Code, the Investment Committee serving as the legislative body will have the quarterly reports for its review within forty-five (45) days following the end of the quarter. Thus, this Report and its attachments are furnished for review and information.

Beginning in FY 2016-17, the City included the checking account balance as part of this Report.

Although a checking account is not a typical investment account, this balance is included to show the total cash on hand for the quarter. The City typically maintains $1 million to $3 million, and a larger balance at the end of the calendar year, in the checking account to meet cash disbursement needs. Transfers are usually made into the investment accounts during the quarter to account for receipts that exceed disbursements.

Investment Strategy
The City’s investment priorities, in order, are “Safety, Liquidity, and Yield,” while meeting the cash flow needs of the City through prudent investment of unexpended cash.

Compliance with Policy
Historical cash flow trends are compared to current cash flow requirements on an ongoing basis to ensure the City’s investment portfolio will remain sufficiently liquid to enable the City to meet

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all reasonably anticipated operating requirements. As of September 30, 2024, the portfolio contains sufficient liquidity to meet the next six months of expected expenditures by the City.

As of September 30, 2024, the City has no investment instruments with a maturity date longer than one year. All investments are in highly liquid accounts, using the State of California and County of San Mateo investment pools, and are in compliance with the Policy.

The primary objective of the Policy of the City of San Carlos is “safety of principal”. The permitted investments section of the Policy also states:

Local Agency Investment Fund (LAIF), which is a State of California managed investment pool, and San Mateo County Investment pool, may be used up to the maximum permitted by California State Law. A review of the pool/fund is required when they are part of the list of authorized investments, with the knowledge that the pool/fund may include some investments allowed by statute but not explicitly identified in this investment policy.

The City’s Investment Committee, consisting of Jeff Maltbie, City Manager; Inge Tiegel, City Treasurer; and Rebecca Mendenhall, Administrative Services Director, has reviewed and approved this Report.

ANALYSIS:

The Investment Portfolio (Attachment 1) indicates that on September 30, 2024, City funds in the amount of $168,395,989 were invested, producing a weighted average yield of 4.14% for this quarter. The amount in the checking account was $3,001,417. The LAIF, the City’s benchmark for comparison of investment yield, was 4.56% for the quarter. The investment yield, net of administrative fees, for the County Pool was 3.86%. The allocation of the investment portfolio balance to various City funds and various sub-categories of General Fund fund balance is included on page 3 of the attachment
Below is a summary of the changes from the last quarter.

The portfolio balance at the end of the first quarter is $171,397,406, a decrease of approximately $12.9 million. The decrease in the portfolio balance is due to the timing of the cash receipts and cash payments. The City draws on the investment portfolio throughout the year for normal operating activity, typically with the more significant levels of draw occurring in the first quarter (July through September) and fourth quarter (April through June). The City’s cash position typically improves in late December and April due to the receipt of property tax collections from San Mateo County.

The decrease in the first quarter was driven by several major distributions: (1) $5.1 million paid to San Mateo County Sheriff’s Office for police services for the first half of FY 2024-25; (2) $2.6 million payment to CalPERS for the annual Unfunded Actuarial Liability (UAL) payment; (3) $2.3

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million principal and interest payment to Silicon Valley Clean Water (SVCW) bonds; (4) $2.1 million operating expenditure and debt principal contributions to SVCW; (5) $2.1 million contribution for the Belmont-San Carlos Fire Department FY 2024-25 UAL; (6) $1.6 million general liability and property member contribution to PLAN JPA; and (7) $0.8 million spent on Cherry Street Below Market Rate Housing for the first quarter. These drawdowns were partially offset by $2.0 million in sales taxes, $2.0 million from charges for services, $1.4 million vehicle- in-lieu revenues, $0.9 million from licenses and permits, and another $1.2 million in other taxes and revenues.

Below is a comparison of quarterly cash position for the past three years.

Below is a summary of the changes in the total investment interest earnings from the prior quarter.

Qtr Ended
09/30/24
Qtr Ended
06/30/24
Increase
(Decrease)
Investment Portfolio 168,395,989$ 182,364,900$ (13,968,911)$ Weighted Avg Yield 4.14% 4.11% 0.03%
Accrued Interest Earnings 1,834,704$ 1,913,431$ (78,727)$ The decrease in interest earnings this quarter occurred due to the lower portfolio balance compared to the prior quarter despite slightly higher interest rates. Interest in the investment accounts was $1,834,704 and $11,143 for the checking account.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Accept the Quarterly Investment Report for the fourth quarter of Fiscal Year 2024-25 as of September 30, 2024; or

2. Do not accept the Report; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
$100
$120
$140
$160
$180
$200
Sept 30 Dec 31 March 31 June 30
FY 25
FY 24
FY 23
Cash Position of Investments
($ in millions)

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Q1 Investment Report FY 2024-25

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Accept the Fiscal Year 2024-25 First Quarter Financial Report for the Period Ending September 30, 2024.

RECOMMENDATION:

Staff recommends that the City Council accept the Quarterly Financial Report (“Report”) for the third quarter of fiscal year (FY) 2024-25 ended September 30, 2024.

FISCAL IMPLICATIONS:

There is no financial impact associated with accepting this report.

BACKGROUND:

In May 2023, the City Council approved financial policies formalizing long standing practices. The policies were established to ensure that the City's finances are managed in a manner that will: (1) continue to provide for the delivery of quality services; (2) maintain and enhance service delivery as the community grows, in accordance with the General Plan; (3) guarantee a balanced budget annually assuring that the City is operating within its means; and (4) establish reserves necessary to meet known and unknown future obligations.

A key component of these policies includes the preparation of a quarterly financial report. This report provides an executive summary of the City’s current financial status as it relates to the adopted operating budget.

Attached is the Report for the first quarter that reflects the City’s overall General Fund financial position as of September 30, 2024. Included in the Report is an update on the General Fund balance, analysis of revenues earned to date, and expenses incurred for the first three months of the fiscal year.

ANALYSIS:

Revenues
The Report for the first quarter is prepared on a cash basis; therefore, only revenue received by September 30 is reflected. Since revenue is received on many different schedules depending on type, it is useful to compare the year-to-date (“YTD”) actual amounts to the prior year’s actual amounts.

Overall, fiscal YTD revenues were approximately $7.49 million, or $0.57 million and 7% lower than last year, at the end of the first quarter and represented 13.1% of budget. As discussed in the attached Report, revenues from property tax, sales tax, charges for services, licenses &

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permits, use of money & property, and other revenues were lower than the prior year. This is mostly due to the timing of receipt of tax revenue and permit revenue related to large-scale development projects. While the Federal Reserve again reduced the Fed Funds Rate recently, helping to temper the cost of financing, inflation levels continue to run higher than the 2% target which is resulting in households spending on essential items.

Vehicle License Fee (“VLF”) and other taxes were higher compared to quarter one of last year.

As discussed in the attached Report, this was due to the City receiving the countywide VLF shortfall payment for FY 2022-23 in the current year. Interest rates remain a positive driver as well.

Expenditures
Expenditures are recorded when paid, using the cash basis method of accounting. Overall, expenditures were $16.19 million, or 26.1%, of the budget, and $0.6 million higher compared to quarter one of the prior year. This was due to higher police and fire contract costs, higher CalPERS contributions related to the legacy Belmont-San Carlos Fire Department, and higher negotiated salaries and benefits costs. Additional details can be found in the attached Report.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Accept the Quarterly Financial Report for the first quarter of FY 2024-25 ended September 30, 2024; or

2. Do not accept the Quarterly Financial Report; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Q1 FY25 Financial Report

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CITY OF SAN CARLOS
First Quarter of Fiscal Year 2024-25
The City has completed the first quarter of the fiscal year (“FY”) 2024-25 ended September 30, 2024. This report summarizes the activities of the City’s General Fund, which is the primary operating fund of the City and is used to account for most operating activities. This report is not meant to be inclusive of all finance and accounting transactions. It is intended only to provide the Council and the public with an overview of the state of the City’s general fiscal condition.

GENERAL FUND FINANCIAL POSITION
The General Fund is comprised of budgeted operating revenues of $57,243,090 and operating expenditures of $62,010,040 for FY 2024-25. Expenditures in the General Fund account for direct services provided to the residents of San Carlos, including General Government services, Police services, Fire services, Parks and Recreation, Community Development and Public Works.

TOP SEVEN GENERAL FUND REVENUES
The City’s seven main revenue sources accounted for approximately 92.8% of the General Fund’s year-to- date total operating revenue in FY 2024-25.

Overall, these key operating revenues largely performed as projected based on payment schedules, past trends, and the expectation of continuing economic growth. Any significant variations in the different revenue categories compared to the first quarter of the prior year and the budget are noted below:
•Property tax. Most of the City’s property taxes are received in December and April. The property taxes received through the first quarter were $29,000 lower compared to the first quarter of last GENERAL FUND FY 2023-2024 FY 2024-2025
numbers in 000's
Revised
Budget
1st Qtr
YTD Actual % of budget
Revised
Budget
1st Qtr
YTD Actual % of budget
Revenues 55,339$ 8,058$ 14.6% 57,243$ 7,490$ 13.1% Expenditures 62,073 15,615 25.1% 62,010 16,193 26.1%
Net Alloc & Transfers (4,005) (6,889) 172.0% (579) 1,068 -184.5% Net Change in Fund Balance (10,739) (14,446) 134.5% (5,346) (7,635) 142.8% Balance, Start of Year 54,472 54,472 100% 58,985 58,985 100% Balance Year-to-Date 43,733$ 40,027$ 91.5% 53,639$ 51,350$ 95.7% REV BY TYPE FY 2023-2024 FY 2024-2025
numbers in 000's
Revised
Budget
1st Qtr
YTD Actual % of budget
Revised
Budget
1st Qtr
YTD Actual % of budget
Property Tax 17,979$ 66$ 0.4% 19,464$ 37$ 0.2% Sales Tax 13,064 2,105 16.1% 13,331 1,972 14.8%
Charges for Services 5,123 2,380 46.5% 5,168 2,078 40.2% Vehicle In Lieu 3,911 609 15.6% 3,407 1,364 40.0%
Other Taxes 6,301 169 2.7% 6,589 179 2.7%
Licenses & Permits 2,590 1,683 65.0% 2,668 835 31.3%
Use of Money and Property 2,975 498 16.7% 3,235 487 15.1% Other Revenues 3,396 548 16.1% 3,381 538 15.9%
Total Revenues 55,339$ 8,058$ 14.6% 57,243$ 7,490$ 13.1% Quarterly Financial Report

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fiscal year due to timing of receipt of property taxes from San Mateo County. We expect that the property tax payments will be on target with budget this year. •Sales Tax. Revenues for the quarter were $133,000 lower than in the same period of the prior year.

Although the Federal Reserve recently reduced the Fed Funds Rate, helping temper the cost of financing, personal consumption remains insipid as consumers continue to focus on essential household items over more expensive purchases.
•Charges for Services. Revenues were at 40.2% of the full year’s budget and compared to the first quarter of the prior year, there was a decrease of $302,000 mainly due to the timing of building plan check and inspection fee revenues which can vary from year to year due to the timing of large- scale development projects.
•Vehicle in-lieu (VLF). The revenue received in this fiscal year was $755,000 more than the prior year mainly due to the receipt of the county-wide shortfall from fiscal year 2022-23. •Other Taxes. These include Transient Occupancy Tax (“TOT”) and Franchise fees. Total revenue was $10,000 higher than in the first quarter of the prior year. The budgeted Other Tax revenues for the full year are $288,000 more than the prior year.
•Licenses & Permits. Revenues were $848,000 lower than at the same point in the prior year and have achieved 31.3% of this year’s budget. Similar to Charges for Services, this revenue category can vary from year to year due to the timing of development projects. •Use of Money and Property. This revenue stream was $11,000 lower than in the first quarter of the prior year due to a change in the way the city’s Wells Fargo checking account earns interest. •Other Revenues. This revenue category includes business registration fees, vehicle code fines, various cost reimbursements, and grants. It was slightly lower ($10,000) compared to the first quarter of the prior year.

GENERAL FUND EXPENDITURES
In June 2023, the City Council approved several program changes and additional staffing changes for FY 2024-25 that were necessary to implement the strategic plan objectives, support the continued high level of development activity, manage the infrastructure projects, and advance the increased communication needs. As a result, the total expenditures for the first quarter of the current fiscal year were 3.7% higher than last year. As shown in the table below, expenditures are generally on target for the first quarter of the fiscal year when compared to budget. Any significant variations are noted below.

•General Government. Expenditures were $50,000 higher than the first quarter of the prior year primarily due to higher equipment maintenance costs related to software cloud migration, increased legal support for Public Record Requests and higher recruitment consultant costs. •Community Development. Expenditures were $77,000 less than the prior year due to the timing of professional services costs.
•Fire. Expenditures were $404,000 greater than in the first quarter of the last fiscal year. This was primarily due to increases in costs for contracted fire services from the City of Redwood City ($134,000 for the quarter) and an increase in the annual pension payment related to the former Belmont-San Carlos Fire Department ($238,000).
•Police. Expenditures were greater than the same period last year by $358,000 due to the cost increases in the agreed law enforcement services contract with the San Mateo County Sheriff’s Office and an increase in the annual pension payment to CalPERS. •Parks and Recreation. Expenditures were $103,000 higher compared to last year mainly due to increases in staff salaries and benefits costs, increased program field trip ticket costs and higher special event insurance premiums.

EXP BY DEPT FY 2023-2024 FY 2024-2025
numbers in 000's
Revised
Budget
1st Qtr
YTD Actual % of budget
Revised
Budget
1st Qtr
YTD Actual % of budget
General Government 14,036$ 2,301$ 16.4% 11,103$ 2,351$ 21.2% Community Development 8,709 1,658 19.0% 8,980 1,581 17.6% Fire 12,245 4,304 35.1% 12,900 4,708 36.5%
Police 12,891 4,061 31.0% 13,638 4,419 32.4%
Parks & Recreation 5,064 1,357 26.8% 5,387 1,460 27.1%
Public Works 9,128 1,934 21.2% 10,002 1,674 16.7%
Total Expenses 62,073$ 15,615$ 25.2% 62,010$ 16,193$ 26.1%

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•Public Works. Expenditures were $260,000 lower than the prior year primarily due to the timing of professional service costs in Engineering, Street Maintenance, Park Maintenance and City Hall Maintenance.
•Salaries and benefits. Expenditures were $804,000 greater than in the first quarter of last year due to increases in negotiated salary and benefit costs.
•Professional Services. Expenditures were lower by $229,000 compared to the prior year due to the timing of invoices received.
•Other Operating. Expenditures were $4,000 higher in the first quarter when compared to the same period in the prior year, mainly due to miscellaneous expenditures such as training, conferences, office supplies and utilities.
•Capital Outlay costs were $1,000 less than quarter one in the last fiscal year due to reduced equipment and fuel purchases.

FOR MORE INFORMATION
This summary is based on detailed information produced by the City’s Finance Division. If you would like additional information or have any questions about this report, please call (650) 802-4213.

EXP BY TYPE FY 2023-2024 FY 2024-2025
numbers in 000's
Revised
Budget
1st Qtr
YTD Actual % of budget
Revised
Budget
1st Qtr
YTD Actual % of budget
Salaries/Benefits 26,682$ 7,916$ 29.7% 24,942$ 8,720$ 35.0% Professional Services 30,656 6,809 22.0% 32,065 6,580 20.5% Other Operating 4,552 870 19.1% 4,814 874 18.2%
Capital Outlay 183 20 10.9% 189 19 10.1%
Total Expenses 62,073$ 15,615$ 25.2% 62,010$ 16,193$ 26.1% Total City-wide FTEs 101 95 94.1% 103 98 95.1%

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Deny Claim of Thomas Feledy.

RECOMMENDATION:

Staff recommends that the City Council deny the claim of Thomas Feledy as recommended by the Sedgwick representative.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

This item is coming before the Council to act on the claim submitted by Thomas Feledy (“Claimant”). Staff recommends that the City Council deny the claim based on Sedgwick’s guidance.

The Tort Claims Act. California Government Code Sections 900, seq., mandates that all claims for money or damages against a public entity must be presented in writing to the public entity prior to filing suit. Generally, claims concerning personal injury, wrongful death, damage to personal property, or damage to crops must be presented to the public within six (6) months of the accrual of the claim. All other claims, principally claims on contracts and damage to real property, are subject to a one-year statute of limitations for presentation of the tort claim. Once a tort claim is received by the public entity, the entity has forty-five (45) days to act on the claim. A claim can be settled or rejected. If no action is taken within 45 days, the claim is deemed rejected by operation of law on the last day.

Claims Processing in San Carlos. When the City receives a claim, the claim is immediately forwarded to claims examiners at Sedgwick for investigation. After Sedgwick investigates the claim, Sedgwick provides a recommendation to the City on the handling of the claim.

About Sedgwick. Sedgwick is a leading global provider of technology-enabled risk, benefits and integrated business solutions. In July 2019, Sedgwick acquired York Risk Services Group (“York”). York was originally hired through the Pooled Liability Assurance Network Joint Powers Authority (“PLAN JPA”), and Sedgwick will continue claims administration services to provide claims administration services to the City. The City Council approved the City’s participation in the PLAN JPA (previously known as the Association of Bay Area Government Pooled Liability Assurance Network or “ABAG PLAN”) on November 27, 2017 and designated the Administrative

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Services Director and Senior Management Analyst as primary and alternate PLAN JPA Board members
ANALYSIS:

The Claimant filed a claim against the City for property damages. The Claimant alleges that his vehicle drove over a pothole on May 23, 2024, while attempting to park in front of 566 Wellington Avenue. The Claimant further alleges that his vehicle was damaged by the protruding edge of the pothole. He is seeking $1,816.53 for damages to his vehicle.

This does not appear to be a case of liability against the City as the City had no prior actual or constructive notice of the condition causing the damages. Government Code Section 835 provides immunities when there was no known prior notice to the City of a “hazardous condition”.

For this reason, Sedgwick recommends formal rejection of Thomas Feledy’s claim.

The Council’s rejection of this claim does not prevent City staff or the staff of Sedgwick from continuing to work with the Claimant to resolve the dispute.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Deny claim of Thomas Feledy; or

2. Do not deny claim of Thomas Feledy; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Feledy, T. Claim Form

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute an Agreement for Engineering Design Services with Schaaf & Wheeler for the Annual Storm Drain Improvement Project in the Amount of $128,850 and Authorizing a 20% Contingency Budget in the Amount of $25,770 for a Total Not-To-Exceed Contract Amount of $154,620.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute an agreement for engineering design services with Schaaf & Wheeler for the Annual Storm Drain Improvement Project (“Project”) in the amount of $128,850; and authorizing a 20% contingency budget in the amount of $25,770 for a total not-to-exceed contract amount of $154,620.

FISCAL IMPLICATIONS:

There are no fiscal impacts and no additional funding is needed at this time. Funding for the Project comes from C9531, which has an available budget of approximately $899,574 in fiscal year (“FY”) 2024-25. There is sufficient budget to award and complete the Project with contingency.

BACKGROUND:

Staff annually assesses the storm drain system to identify deficiencies in order to prevent and resolve drainage or maintenance issues. These deficiencies include undersized and/or deteriorated storm drain mains and structures; reverse grades or not enough grade along the street to guide storm runoff to an existing storm system; minor flooding issues; and blockages in existing storm pipelines and inlets due to root infiltration or debris.

Staff evaluated deficient sites and determined potential repairs. Sites were prioritized according to several factors including severity, impact to local residents and businesses, and cost-to-benefit ratio.

ANALYSIS:

Staff issued a written request for proposals (RFP) for the Project in July 2024 and received the three proposals listed below.

Consultant Proposal Amount
Schaaf & Wheeler $128,850
Bellecci and Associates $175,980
Mott MacDonald $299,719

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After evaluation, staff recommends executing an agreement for engineering design services with Schaaf & Wheeler in the amount of $128,850 and authorizing a contingency budget in the amount of $25,770.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to execute an agreement for engineering design services with Schaaf & Wheeler for the Annual Storm Drain Improvement Project in the amount of $128,850; and authorizing a 20% contingency budget in the amount of $25,770 for a total not-to-exceed contract amount of $154,620; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Schaaf & Wheeler Proposal

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE CITY MANGER TO EXECUTE AN AGREEMENT FOR ENGINEERING

DESIGN SERVICES WITH SCHAAF & WHEELER FOR THE ANNUAL STORM DRAIN IMPROVEMENT PROJECT IN THE AMOUNT OF $128,850; AND AUTHORIZING A 20% CONTINGENCY BUDGET IN THE AMOUNT OF $25,770 FOR A TOTAL NOT-TO-EXCEED CONTRACT AMOUNT OF $154,620.

WHEREAS, staff annually assesses the storm drain system to identify deficiencies in the interest of preventing and resolving drainage or maintenance issues; and WHEREAS, these deficiencies include undersized and/or deteriorated storm drain mains and structures; reverse grades or not enough grade along the street to guide storm runoff to an existing storm system; minor flooding issues; and blockages in existing storm pipelines and inlets due to root infiltration or debris; and
WHEREAS, staff issued a written Request for Proposal in July 2024 to interested parties for the Annual Storm Drain Improvement Project; and
WHEREAS, after evaluation, staff recommends executing an agreement for engineering design services with Schaaf & Wheeler in the amount of $128,850 and authorizing the expenditure of a 20% contingency in the amount of $25,770.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to execute an agreement for engineering design services with Schaaf & Wheeler for the Annual Storm Drain Improvement Project in the amount of $128,850; and authorizing a 20% contingency budget in the amount of $25,770 for a total not to exceed contract amount of $154,620.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Adopt Resolutions Appropriating $20,000 from the General Capital Fund (Fund 0025) Unassigned Fund Balance and Amending the Public Projects Agreement with Beals Martin and Associates, Inc. for the Landslide Repair at 995 Crestview Drive – Project #C2318; and Appropriating $50,000 from the General Capital Fund (Fund 0025) Unassigned Fund Balance and Amending the Public Projects Agreement with Central Pacific Engineering, Inc. for the Landslide Repair at 3144 Brittan Avenue – Project #C2319.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolutions appropriating $20,000 from the General Capital Fund (Fund 0025) Unassigned Fund Balance and amending the public projects agreement with Beals Martin and Associates, Inc. for the landslide repair at 995 Crestview Drive – Project #C2318; and appropriating $50,000 from the General Capital Fund (Fund 0025) Unassigned Fund balance and amending the public projects agreement with Central Pacific Engineering, Inc. for the landslide repair at 3144 Brittan Avenue – Project #C2319.

FISCAL IMPLICATIONS:

An appropriation of $70,000 is needed from the Fund 0025 Unassigned Fund Balance in fiscal year (FY) 2024-25 for the landslide repairs at 995 Crestview Drive and 3144 Brittan Avenue in order to complete the projects and account for any additional unforeseen field conditions that may come up. The available project budgets are shown below.

Project Location Original Contract Requested
Appropriation
Amended Contract
995 Crestview Drive $62,411.78 $20,000 $82,411.87
3144 Brittan Avenue $301,198.80 $50,000 $351,198.80
The additional appropriations are needed as the available project budgets include encumbered costs for geotechnical engineering consultations, inspection services for the projects, and other contract change order costs to date.
995 Crestview Drive – Project #C2318
Available Project Budget $39,888.57
Geotechnical Consultations and Inspection Services $23,900.00 Contract Change Orders Costs to Date $5,559.00
Remaining Funds $10,429.57

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3144 Brittan Avenue – Project #C2319
Available Project Budget $81,792.54
Geotechnical Consultations and Inspection Services $49,400.00 Contract Change Orders Costs to Date $16,180.00
Remaining Funds $16,212.54
BACKGROUND:

Staff is bringing this item to the City Council to amend the public projects agreement with Beals Martin and Associates, Inc. and Central Pacific Engineering, Inc. to increase the contract amounts to fund additional unforeseen repairs to the landslide sites.

During the 2022-23 winter storms, the city experienced extended periods of heavy rains which oversaturated the ground causing surface flooding and leading to multiple landslides throughout the city within the right-of-way and adjacent to private property.

Construction for the landslides began during the summer of 2024. During construction, the contractors discovered that the field conditions had changed from the initial landslide and additional repair work was needed outside of the original scope of work.

Landslide at 995 Crestview Drive – The contractor noticed the landslide site had expanded from the time the landslide occurred to when construction started. The contractor encountered unsuitable soil which required over-excavation to reach solid bedrock. Once the bedrock was exposed, a new subdrain system was installed beyond the original limits of work to prevent runoff from ponding which would cause further landslide damage.

Landslide at 3144 Brittan Avenue – During excavation, the contractor encountered unsuitable soil that was overly saturated due to a natural spring that ran through the project limits. As a result, the contractor needed to over-excavate the area in order to reach dry soil to properly install the bench that would stabilize the hillside and meet compaction requirements. As part of the over- excavation, the contractor also needed to bring in additional fill material to restore the hillside to its original condition.

ANALYSIS:

The contractors provided estimates to perform the additional work and complete the projects in the amounts of $20,000 for the 995 Crestview Drive Project and $50,000 for the 3144 Brittan Avenue Project. ENGEO, Inc., the City’s on-call geotechnical engineering consultant and inspector for the projects, recommended that the additional work be completed for safety reasons and to prevent future slides from occurring within the limits of both projects.

Staff requests the contingency balance be increased up to the project budgets for any other unforeseen conditions that may contribute to additional work outside the original scope of work needed to complete the projects.

Therefore, staff is requesting that City Council authorize the City Manager to execute amendments to the public projects agreements with Beals Martin and Associates, Inc. and Central Pacific Engineering, Inc. to perform additional landslide repairs and increase the contingency amounts up to the project budgets to address the unforeseen conditions.

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ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt Resolutions appropriating $20,000 from the General Capital Fund (Fund 0025) Unassigned Fund balance and amending the public projects agreement with Beals Martin and Associates, Inc. for the landslide repair at 995 Crestview Drive – Project #C2318; and appropriating $50,000 from the Fund 0025 Unassigned Fund balance and amending the public projects agreement with Central Pacific Engineering, Inc. for the landslide repair at 3144 Brittan Avenue – Project #C2319; or

2. Do not adopt the Resolutions; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution - 995 Crestview Drive

2. Resolution - 3144 Brittan Avenue

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROPRIATING $20,000 FROM THE GENERAL CAPITAL FUND (FUND 0025)

UNASSIGNED FUND BALANCE AND AMENDING THE PUBLIC PROJECTS AGREEMENT WITH BEALS MARTIN AND ASSOCIATES, INC. FOR THE LANDSLIDE REPAIR AT 995 CRESTVIEW DRIVE – PROJECT #C2318.

WHEREAS, during the 2022-23 winter storms, the city experienced extended periods of heavy rains which oversaturated the ground causing surface flooding and leading to multiple landslides throughout the city within the right-of-way and adjacent to private property; and WHEREAS, during construction, Beals Martin and Associates, Inc. (“Contractor”) discovered that the field conditions had changed from the initial landslide and additional repair work was needed outside of the original scope of work; and WHEREAS, the Contractor noticed the landslide site had expanded from the time the landslide occurred to when construction started; and
WHEREAS, the Contractor encountered unsuitable soil which required over-excavation to reach solid bedrock; and
WHEREAS, once the bedrock was exposed, a new subdrain system was installed beyond the original limits of work to prevent runoff from ponding which would cause further landslide damage; and
WHEREAS, the Contractor provided an estimate to perform the additional work and complete the project in the amount of $20,000; and
WHEREAS, ENGEO, Inc., the City’s on-call geotechnical engineering consultant and inspector for the project, recommended that the additional work be completed for safety reasons and to prevent future slides from occurring within the project limits; and WHEREAS, staff requests the contingency balance be increased up to the project budget for any unforeseen conditions that may contribute to additional work outside the original scope of work.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby appropriates $20,000 from the General Capital Fund Unassigned Fund Balance and amends the public projects agreement with Beals Martin and Associates, Inc. for the Landslide Repair at 995 Crestview Drive – Project #C2318.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:

AYES, COUNCILMEMBERS:___________________________________________ NOES, COUNCILMEMBERS:___________________________________________

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ABSENT, COUNCILMEMBERS:___________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROPRIATING $50,000 FROM THE GENERAL CAPITAL FUND (FUND 0025)

UNASSIGNED FUND BALANCE AND AMENDING THE PUBLIC PROJECTS AGREEMENT WITH CENTRAL PACIFIC ENGINEERING, INC. FOR THE LANDSLIDE REPAIR AT 3144 BRITTAN AVENUE – PROJECT #C2319.

WHEREAS, during the 2022-23 winter storms, the city experienced extended periods of heavy rains which oversaturated the ground causing surface flooding and leading to multiple landslides throughout the city within the right-of-way and adjacent to private property; and WHEREAS, during construction, Central Pacific Engineering, Inc. (“Contractor”) discovered that the field conditions had changed from the initial landslide and additional repair work was needed outside of the original scope of work; and WHEREAS, the Contractor encountered unsuitable soil that was overly saturated due to a natural spring that ran through the project limits; and WHEREAS, the Contractor needed to over-excavate the area in order to reach dry soil to properly install the bench that would stabilize the hillside and meet compaction requirements; and WHEREAS, as part of the over-excavation, the Contractor also needed to bring in additional fill material to restore the hillside to its original condition prior to the landslide that was not originally included in the scope of work; and
WHEREAS, the Contractor provided an estimate to perform the additional work and complete the project in the amount of $50,000; and
WHEREAS, ENGEO, Inc., the City’s on-call geotechnical engineering consultant and inspector for the project, recommended that the additional work be completed for safety reasons and to prevent future slides from occurring within the project limits; and WHEREAS, staff requests the contingency balance be increased up to the project budget for any unforeseen conditions that may contribute to additional work outside the original scope of work.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby appropriates $50,000 from the General Capital Fund Unassigned Fund balance and amends the public projects agreement with Central Pacific Engineering, Inc. for the Landslide Repair at 3144 Brittan Avenue – Project #C2319.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:

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________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute Amendment 1 to the Agreement with Chrisp Company to Increase the Contract by $25,000 to a Not-to-Exceed Amount of $325,000 for the 2023 On-Call Traffic Striping and Marking Project C9417.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute Amendment 1 to the agreement with Chrisp Company to increase the contract by $25,000 to a not-to-exceed amount of $325,000 for the 2023 On-Call Traffic Striping and Marking Project C9417 (“Project”).

FISCAL IMPLICATIONS:

There is no fiscal impact or no additional appropriation is necessary. The Project has an available budget of $300,000 in fiscal year 2024-25 and the additional contract amount can be allocated from these funds.

Original Contract Amount Appropriation Amended Contract Amount $300,000 $25,000 $325,000
BACKGROUND:

The Project is an annual program that consists of repainting traffic striping and markings at various locations throughout the city. Work typically includes striping, signage, or marking changes that are initiated by staff, suggested by the public, or approved by the Planning and Transportation Commission. The Project allows staff to keep traffic striping and markings legible to maintain public safety and minimize liability.

On April 10, 2023, the City Council awarded the Project to Chrisp Company in the amount of $253,795 and authorized the expenditure of $46,205 contingency (approximately 15%) up to the Project budget of $300,000 via Resolution No. 2023-042.

ANALYSIS:

Staff received guidance from the City Council to add a new task for the lane reconfiguration at Howard Avenue from El Camino Real to Old County Road. This task required on-call professional engineering support from Kimley-Horn Associates to review the signal timing and flow at seven intersections as required by Caltrans. It also required design of the lane reconfiguration and coordination with Caltrans. The lane reconfiguration will change one through lane to a left-through

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lane in the westbound direction of Howard Avenue and add a designated Class II bike lane on Howard Avenue between El Camino Real and Old County Road in line with the Bicycle and Pedestrian Master Plan. The current striping is faded due to heavy volume at the task site and this additional task will bring the striping up to date.

In order to implement this additional task, this item is brought to City Council as the action exceeds the authority of the City Manager and staff is requesting that the contract be increased by $25,000 to a not-to-exceed amount of $325,000 to support this final task for the Project.

Staff anticipates returning to City Council in early 2025 for Project acceptance, completion, and closeout.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to execute Amendment 1 to the agreement with Chrisp Company to increase the contract by $25,000 to a not-to-exceed amount to $325,000 for the 2023 On-Call Traffic Striping and Marking Project C9417; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AUTHORIZING THE CITY MANGER TO EXECUTE AMENDMENT 1 TO THE AGREEMENT WITH CHRISP COMPANY TO INCREASE THE CONTRACT BY $25,000 TO A NOT-TO-EXCEED AMOUNT TO $325,000 FOR THE 2023 ON-CALL TRAFFIC STRIPING AND MARKING PROJECT C9417.

WHEREAS, the On-Call Traffic Striping and Marking Project (“Project”) is an annual program that consists of repainting traffic striping and markings at various locations citywide; and WHEREAS, the Project consists of striping, signage, or marking changes that are initiated by staff, suggested by the public, or approved by the Planning and Transportation Commission in order to maintain public safety and minimize liability; and WHEREAS, on April 10, 2023, City Council award the Project in the amount of $253,795 and the authorized the expenditure of $46,205 contingency (approximately 15%) up to the Project budget of $300,000; and
WHEREAS, the City Council directed staff to add a new task for the lane reconfiguration at Howard Avenue from El Camino Real to Old County Road, which required professional engineering support from Kimley-Horn Associates to review the signal timing and flow at seven intersections as required by Caltrans; and
WHEREAS, the lane reconfiguration will change one through lane to a left-through lane in the westbound direction of Howard Avenue and add a designated Class II bike lane in line with the Bicycle and Pedestrian Master Plan; and
WHEREAS, there are sufficient funds available in the Fiscal Year 2024-25 Project budget to cover the additional contract request of $25,000.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council authorizes the City Manager to execute Amendment 1 to the agreement with Chrisp Company increasing their contract by $25,000 to a not-to-exceed amount to $325,000 for the 2023 On-Call Traffic Striping and Marking Project C9417.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:

AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Adopt a Resolution Approving the Updated Elected Officials Salary and Benefit Resolution to Reflect Ordinance 1610 Changes to the San Carlos Municipal Code Section 2.08.020 and Adopting the Updated Comprehensive Master Salary Schedule for Fiscal Year (FY) 2024-25 in Accordance with Title 2 of the California Code of Regulations Section 570.5 and the California Employees Retirement System (CALPERS).

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution approving the updated Elected Officials Salary and Benefits Resolution to reflect Ordinance 1610 changes to the San Carlos Municipal Code Section 2.08.020 and adopting the updated Comprehensive Master Salary Schedule in accordance with Title 2 of the California Code of Regulations Section 570.5 and the California Employees Retirement System (CALPERS).

FISCAL IMPLICATIONS:

There is no additional appropriation needed at this time. Ordinance 1610 was adopted in January 2024 and the Adopted Budget includes appropriate funding.

BACKGROUND:

On January 8, 2024, Ordinance 1610 was introduced in accordance with modifications by Assembly Bill (AB) 329 to Government Code Section 36516. It was then passed and adopted by the City Council at a regular meeting held on January 22, 2024, with an effective date of February 22, 2024.

ANALYSIS:

Effective December 09, 2024, City Councilmembers shall receive a monthly salary increase from $560.00 to $950.00 per month. This salary change requires an update to the Elected Officials Salary and Benefit Resolution and the Comprehensive Master Salary Schedule for FY 2024-25.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution approving the updated Elected Officials Salary and Benefit Resolution to reflect Ordinance 1610 changes to the San Carlos Municipal Code Section 2.08.020 and adoption of the updated Comprehensive Master Salary Schedule in accordance with

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Title 2 of the California Code of Regulations Section 570.4 and the California Employees Retirement System; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Elected Officials Salary Benefit Resolution

3. Fiscal Year 2024-25 Comprehensive Master Salary Schedule

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RESOLUTION NO. 2024 – ____

ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

APPROVING THE UPDATED ELECTED OFFICIALS SALARY AND BENEFIT RESOLUTION TO REFLECT ORDINANCE 1610 CHANGES TO THE SAN CARLOS MUNICIPAL CODE SECTION 2.08.020 AND ADOPTING THE UPDATED COMPREHENSIVE MASTER SALARY SCHEDULE FOR FISCAL YEAR (FY) 2024-25 IN ACCORDANCE WITH TITLE 2 OF THE CALIFORNIA CODE OF REGULATIONS SECTION 570.5 AND THE CALIFORNIA EMPLOYEES RETIREMENT SYSTEM (CALPERS).

WHEREAS, Section 2.08.020 of the Municipal Code was last amended in January 2024 following Senate Bill (SB) 329 which amended Government Code Section 36516 et seq. and increased the amount of City Councilmember salary allowed for general law cities and became effective on January 1, 2024; and
WHEREAS, SB 329 allows for a maximum amount for City Councilmember salaries for a general law city with a population under 35,000 at a rate of $950 per month; and WHEREAS, Ordinance 1610 was introduced at the January 08, 2024 and passed and adopted by City Council of the City at a regular meeting held on the January 22, 2024; and WHEREAS, is it now necessary to update the Elected Official Salary and Benefit Resolution to reflect the changes in Ordinance 1610; and
WHEREAS, is it now necessary to update Comprehensive Master Salary Schedule for FY 2024-25.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby adopts the Elected Officials Salary and Benefit Resolution and the Updated Comprehensive Master Salary Schedule for FY 2024-25 in accordance with Title 2 of the California Code of Regulations Section 570.5 and the California Employees Retirement System (CALPERS). * * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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CITY OF SAN CARLOS

ELECTED OFFICIALS
Salary and Benefit Resolution
December 09, 2024

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2 CITY OF SAN CARLOS

ELECTED OFFICIALS
Salary and Benefit Resolution

1. DEFINITION
Elected officials include City Council members and City Treasurer.

2. COMPENSATION
Effective December 9, 2024, City Councilmembers shall receive a monthly salary of $950.00 as allowed under Government Code Section 36516 and as approved by Ordinance Number 1610. The City Treasurer shall receive a monthly salary of $560.00 as allowed under Government Code Section 36516 and as approved by Ordinance Number 1534.

3. BENEFITS
A. Retirement
An elected official has the right to choose optional CalPERS1 membership. The election of optional membership may be filed at any time while a compensated elected official holds the office and the office is not otherwise excluded by law or excluded by an agency’s contract. Once elected, the membership remains in effect for all future service in an elected official position with the same employer unless there is a significant break in employment.

Once membership is established, it may be terminated only upon permanent separation from employment covered by CalPERS and subsequent withdrawal of retirement contributions. While a CalPERS member, the elected official may contribute or receive credit for any previous eligible service in the elected official position.

If CalPERS membership is not chosen, the elected official may be enrolled in the City’s 457 Deferred Compensation plan and the City will make an employer contribution of one (1) dollar a month.

B. Health Plans
An elected official may choose to enroll in a health plan offered by CalPERS through PEMHCA2 if the official has elected to participate in one of the two retirement options listed above. The City’s contribution for health coverage under the Section 125 Cafeteria plan will equal that of the Management Group.

C. Alternate Medical Benefit
Eligible elected officials who have health insurance coverage through another source and can provide the City with documentation of this coverage are eligible to receive an alternate medical benefit equal to the Management group employee only contribution. Alternate medical benefit payments will be deposited directly into the elected official’s 457b Deferred Compensation Plan or another legally allowable deferred compensation plan via payroll deduction. Elected officials may waive the alternate medical benefit. 1 California Public Employees’ Retirement System
2 Public Employees’ Medical and Hospital Care Act

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3 The elected official shall sign a waiver form provided by the Human Resources Department.

The elected official must understand that re-enrollment in the City sponsored CalPERS Plan is subject to the limitations/exclusions/time period instituted by CalPERS. Elected officials are eligible to re-enroll during the CalPERS open enrollment period. Upon the effective date of the re-enrollment, payments pursuant to this subsection 3.C cease.

D. Dental
The City shall provide a Dental Plan for eligible elected officials and their dependents and shall pay a maximum monthly amount of one hundred seventy-five dollars ($175.00).

E. Vision
The City agrees to contribute up to thirty dollars ($30.00) per month per elected official towards the cost of a vision plan covering the elected official only. Such plan shall include annual frames, lenses and examinations.

F. Life Insurance and Accidental Death & Dismemberment (AD&D) The City shall provide for each eligible employee life insurance in the amount of Two Hundred Thousand Dollars ($200,000). The premium for the amount over $50,000 is subject to Federal and State taxes.

G. Longevity Pay
Elected officials who are elected before January 1, 2009, who retire from the City and who have completed at least ten (10) years of total (continuous and non-continuous) City service immediately preceding such retirement shall be eligible for a monthly payment equal to that of the Management Group. Effective beginning January 1, 2009, this amount shall increase by the same percentages and at the same time as the City’s Section 125 Plan contributions increases for active employees selecting employee-only coverage.

Newly first-time elected officials elected on or after January 1, 2009, will not be eligible for longevity pay as defined in the Management Group.

H. Employee Assistance Program
Elected officials are eligible to participate in the City’s Employee Assistance Program.

I. Reimbursements
Elected Officials may receive City reimbursement for attendance at events when they are representing the City. This reimbursement includes registration fees, meals and transportation for officials only. Transportation involves the cost of plane fare or mileage reimbursement for the use of a personal vehicle. Mileage reimbursement is based on the IRS mileage applicable at the time of travel.

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4 CITY OF SAN CARLOS

ELECTED OFFICIALS

MONTHLY BASE SALARY RATE
Effective December 09, 2024
Classification Monthly Base Salary
City Councilmember $950.00
Effective December 10, 2018
Classification Monthly Base Salary
City Treasurer $560.00

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Receive a Presentation on the Community Benefits Map.

RECOMMENDATION:

Staff recommends that the City Council receive a presentation on the community benefits map and provide any additional direction and feedback to staff.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with receiving this presentation. The cost of the mapping program, Mapme, is approximately $600 per year and there are sufficient funds in the adopted budget to cover the cost.

BACKGROUND:

The City negotiates community benefits with developers which can include physical improvements, monetary contributions, or a service to the community. Many community benefits are not generally well known to the community. To ensure that the community is aware of the benefits available, the Council directed staff to create a user-friendly map to graphically highlight all the benefits currently available to the community.

ANALYSIS:

Staff developed an interactive map with icons to help users easily identify the types of community benefits currently available for public use. The map is accessible from the “Community” menu on the City’s website at www.cityofsancarlos.org/communitybenefits.

The table below lists all the community benefits that are currently available and accessible by the public.

Address/Location Benefit
333 El Camino Real Public plaza, seating, fountain feature 633 Elm Street Public walkway connecting Elm and Walnut streets, public plaza with fountain and fireplace
657 Walnut Street Public walkway and mall public plaza with water fountain feature
777 Walnut Street Public walkway connecting Walnut Street to public parking lot
959-999 Skyway Road Public parking, public walkway connecting to Bay Trail 655 Skyway Road Free use of conference room by non-profits

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As more community benefits are made accessible to the public, they will be added to the map.

The table below lists community benefits that will be added to the map in the future.

Address/Location Benefit
1030 Brittan Avenue Public walkway and bike path from Brittan Avenue to bridge going across Pulgas Creek
405 Industrial Road Public walkway, landscaping improvements 501 Industrial Road Free use of conference room and event space 642 Quarry Road Public plaza, pickleball & bocce courts, event space, dog park, and garden
841 Old County Road Public courtyard and parking
887 Industrial Road Sidewalk, crosswalk improvements, public art, Class 3 bike lane improvements
Staff welcomes the Council’s review, input, and further direction on how to improve the community benefits map. After implementing recommended changes and improvements, staff will use social media and other forums to share the map with the community.

Respectfully submitted by:

Al Savay, Community Development Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager

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CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Consideration of Adopting a Resolution Approving Childcare Grant Requests and Appropriating an Additional Budget Amount from the Child Care Grant Fund (Fund 26) Unassigned Fund Balance as Needed to the Newly Established Childcare Grant Program to Utilize Funds Collected through the Childcare Development Impact Fees to Increase Childcare Spaces Within the City of San Carlos.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution approving childcare grant requests and appropriating an additional $250,000 from the Child Care Grant Fund (Fund 26) Unassigned Fund Balance to the newly established Childcare Grant Program to utilize funds collected through the Childcare Development Impact Fees to increase childcare spaces within the City of San Carlos.

FISCAL IMPLICATIONS:

Fund 26, the Childcare Development Impact Fee Fund, is the source of grant funding to local childcare centers (commercial and in-home). To date, the City has collected Childcare Development Impact fees in the amount of $1,033,530. The approved budget for grant expenditures from this fund for fiscal year (FY) 2024-25 is $250,000. Staff recommends an additional allocation of $250,000 for FY 2024-25 from the Fund 26 Unassigned Fund balance to increase the total program budget to $500,000.

At the close of the Childcare Grant Program NOFA (See Attachment 2) on October 18, 2024, the City received five strong applications, each meeting the baseline grant requirements and requesting the maximum $100,000 grant amount, totaling $500,000 in requests. Increasing program funding for FY 2024-25 would enable these childcare providers to complete their capital improvement projects more quickly, thereby expanding childcare spaces in San Carlos sooner.

Funding for future fiscal years would come from the remaining current funds as well as replenishment from Childcare Development Impact Fees collected from future applicable developments.

BACKGROUND:

One of the City Council’s (“Council”) ongoing strategic goals is to increase access to childcare by reducing regulatory and financial barriers to the creation and expansion of childcare facilities in the city. At the end of 2022, the City Council adopted the Childcare Development Impact Fee (Ordinance 1585 and Resolution 2022-104), which was authorized under the Mitigation Fee Act

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and applies to new nonresidential development. A nexus study was also prepared to determine the appropriate fee levels and plans for how to use the funds. One of the proposed uses of funds was the development of a Childcare Grant Program.

In August 2024, the Council established the City of San Carlos’ Childcare Grant Program. The program was designed in accordance with the City’s Childcare Development Impact Fee Ordinance (Ord. 1585) and to support the 2024 San Carlos Strategic Goals and Objectives. The program aims to encourage and support the creation and expansion of quality childcare spaces available to residents and employees in San Carlos.

Eligible applicants for the Childcare Grant Program must be local childcare providers (commercial, in-home, or non-profit) located within City limits. Applicants must demonstrate financial viability, provide a valid business registration, and agree to use the funds exclusively for capital improvements to expand childcare spaces. Priority is given to providers who serve infants, create a larger number of childcare spaces, accept vouchers, or accommodate children with special needs. See attachment 2 for the full Childcare Grant Program NOFA which includes the qualification criteria, permissible uses of the grant funds, funding priorities, and other requirements.

ANALYSIS:

Eligible Applicants:

The NOFA for the childcare grant program was open from August 26, 2024 to October 18, 2024.

Five local childcare providers submitted competitive applications. They included three for-profit commercial centers, one non-profit center, and one in-home provider. After preliminary review, all five applicants met the baseline qualifications and are eligible for the maximum grant amount of $100,000 each (See Attachment 3). If all applicants receive funding, a total of 75 net new childcare spaces are anticipated across these providers. Below is a summary of the proposed capital improvements at each center:
•Learn and Play Montessori (for-profit commercial) seeking funding for new floors, shelves, capital materials, and fire alarm system.
•Happy Campers (for-profit commercial) seeking funding for ADA bathrooms, five kids toilets, fire sprinklers, electrical, and HVAC.
•Challenge School (for-profit commercial) is seeking funding for an ADA toilet, toddler playground, and air conditioning.
•The Children’s Place (non-profit) is seeking funding for fire alarm improvements, construction materials for expansion, and classroom furnishings. •Little Troopers Childcare (in-home) is seeking funding to build a structural extension of the playroom.

Recommendation:

Staff recommends increasing the Childcare Grant Program budget for FY 2024-25 from $250,000 to $500,000. This adjustment would enable each of the five applicants to receive the full $100,000

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grant, allowing them to complete their capital improvement projects and accelerate the expansion of childcare spaces in San Carlos.

Next Steps:

If the Council approves an additional $250,000 allocation for the Childcare Grant Program, staff will initiate the grant award notification and distribution process. This will include:
•Informing qualified applicants of their approved grant amounts •Assisting applicants with necessary documentation, including executing the Agreement for Receipt of Grant Funds
•Distributing grant funds
•Monitoring project completion and tracking the increase in childcare spaces ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution Approving Childcare Grant Requests and Appropriating an Additional $250,000 to the Newly Established Childcare Grant Program to Utilize Funds Collected through the Childcare Development Impact Fees to Increase Childcare Spaces Within the City of San Carlos; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Al Savay, Community Development Director

Approved for submission by:

_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Childcare Grant Notice of Funding Availability

3. Grant Applications

4. Links to Additional Documents

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

APPROVING CHILDCARE GRANT REQUESTS AND APPROPRIATING AN ADDITIONAL $250,000 TO THE NEWLY ESTABLISHED CHILDCARE GRANT PROGRAM TO UTILIZE

FUNDS COLLECTED THROUGH THE CHILDCARE DEVELOPMENT IMPACT FEES TO INCREASE CHILDCARE SPACES WITHIN THE CITY OF SAN CARLOS.

WHEREAS, in August 2022, the City Council adopted Ordinance 1585 and Resolution 2022-104 under the authority of Sections 66000 et seq. of the California Government Code (“Mitigation Fee Act”), establishing a Childcare Development Impact Fee for new nonresidential development in the City of San Carlos as part of the 2022 City Council Strategic Goals to help encourage and support the creation and expansion of quality childcare spaces available to residents and employees in San Carlos; and
WHEREAS, the City Council reprioritized childcare in the 2024 Strategic Goals and Objectives, with a key objective to develop a plan to utilize the childcare funds collected through the Childcare Impact Fees; and
WHEREAS, the implementation measures associated with the Childcare Development Impact Fees include the establishment of a Childcare Grant Program; and WHEREAS, on August 2024, the City Council established the Childcare Grant Program available to any childcare provider (commercial, in-home, and non-profit) located within the City of San Carlos; and
WHEREAS, the Childcare Grant Program would provide funds for capital improvements that lead to the expansion of childcare spaces in accordance with the Childcare Development Impact Fee requirements; and
WHEREAS, the total available funding for the grant program for fiscal year 2024-25 is $250,000 and the maximum grant award limit per applicant is $100,000; and WHEREAS, the Notice of Funding Availability (NOFA) for the childcare grant program, open from August 26 to October 18, 2024, received competitive applications from five local providers—three for-profit commercial centers, one non-profit center, and one in-home provider— all of whom met the baseline qualifications and are eligible for the maximum grant amount of $100,000 each; and
WHEREAS, staff recommends increasing the Childcare Grant Program budget for FY 2024-25 from $250,000 to $500,000 because this adjustment would enable each of the five applicants to receive the full $100,000 grant, allowing them to complete their capital improvement projects and accelerate the expansion of childcare spaces in San Carlos; and WHEREAS, if the Childcare Grant Program budget increase to $500,000 is approved for FY 2024-25 and all applicants received funding, approximately 74 net new childcare spaces are anticipated across these providers.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to execute the Agreement of Receipt of Grant Funds with the following

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childcare providers for the following amounts, thereby approving the additional appropriation of $250,000 for a total of $500,000 to the newly established Childcare Grant Program for FY 2024-25, to utilize funds collected through the Childcare Development Impact Fees. The childcare grant approvals include:

1. Learn and Play Montessori: $100,000

2. Happy Campers: $100,000

3. Challenge School: $100,000

4. The Children’s Place: $100,000

5. Little Troopers Childcare: $100,000
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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Links to Additional Documents
Note: These are clickable links. If a paper copy is requested, please email [email protected].

1. Ordinance 1585: An Ordinance of the City Council of the City of San Carlos Adding Chapter 8.52 to the San Carlos Municipal Code Establishing a Childcare Development Impact Fee for New Nonresidential Developments in the City of San Carlos

2. Resolution 2022-104: A Resolution of the City Council of the City of San Carlos Establishing the Childcare Development Impact Fee Levels for New Nonresidential Developments in San Carlos and Adopting the Updated Childcare Impact Fee Nexus Study prepared by Economic & Planning Systems Inc. for the City of San Carlos dated September 9, 2022

3. Childcare Impact Fee Nexus Study (September 9, 2022)

4. City of San Carlos 2024 Strategic Plan

CITY COUNCIL

STAFF REPORT
MEETING DATE: November 25, 2024
ITEM TITLE: Consideration of Adopting a Resolution Stating the City Council's Position of No Confidence in Sheriff Christina Corpus and Calling on Sheriff Corpus to Resign.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution stating the City Council’s position of No Confidence in Sheriff Christina Corpus and calling on Sheriff Corpus to resign.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

On September 28, 2010, the City entered into a Law Enforcement Services Agreement (“Agreement”) with the County of San Mateo Sheriff’s Office with an effective date of October 31, 2010. The Agreement includes police management, patrol, investigation, traffic enforcement, community and school services, as well as support service components. The Agreement also maintains minimum staffing levels for patrol and provides for the same quick response times previously provided by the San Carlos Police Department. The contract was originally approved for a term commencing October 31, 2010 through June 30, 2015 and has been renewed for two additional five year terms. The existing Agreement expires on June 30, 2025.

ANALYSIS:

On November 13, 2024, the San Mateo County Board of Supervisors released a 400-page independent investigation (“Report”) of the Sheriff. The Report was prepared by Retired Judge LaDoris H. Cordell who interviewed 40 current and past sworn and civilian employees. The Report sustained several allegations including that Sheriff Corpus and her Executive Team have engaged in retaliation and intimidation, exceeded and/or abused their authority, and that the Sheriff has uttered and texted racial and homophobic slurs in the workplace. Per the Executive Summary of the Report, “Lies, secrecy, intimidation, retaliation, conflicts of interest, and abuses of authority are the hallmarks of the Corpus administration. Sheriff Corpus should step down and Victor Aenlle’s employment with the Sheriff’s Office should be terminated immediately. Nothing short of new leadership can save this organization that is in turmoil, and its personnel demoralized.”
On November 18, 2024, San Mateo County Congressional and Legislative leaders issued a statement calling for Sheriff Corpus to resign. Their joint letter stated: “Our county can no longer afford the chaos and failed leadership of Christina Corpus.” The letter was signed by

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Congressman Kevin Mullin 15th District, Congresswoman Anna Eshoo 16th District, Senator Josh Becker 13 th District, Assemblymember Marc Berman 23 rd District and Assemblymember Diane Papan 21st District.

On November 19, 2024, the San Mateo County Board of Supervisors introduced an Ordinance calling for a special election for the purpose of voting on an amendment to the County Charter granting the Board of Supervisors the authority, until December 31, 2028, to remove an elected sheriff for cause.

Since Sheriff Corpus took office in January 2023, at least 106 sworn staff have left the agency and approximately half of those individuals were not eligible for retirement which is highly unusual.

There has been significant turnover in the executive staff including the Undersheriff and two Assistant Sheriffs that the Sheriff either hired or promoted. In addition, the Deputy Sheriff’s Association overwhelmingly adopted a no confidence action in the Executive Director of Administration. While the Sheriff’s office has been able to maintain the staffing levels as outlined in our Agreement, it is uncertain if this will be sustainable given the continued staffing issues and turmoil at the Sheriff’s Office.

Public safety is of utmost importance to our community. The City Council has always held high standards in the relationship with the Sheriff’s Office. The findings that were sustained in the Report do not reflect the standards that our community wants in their law enforcement personnel.

As a result, it is the City Council’s desire to approve a vote of no confidence in Sheriff Corpus and a call for her to resign from the position.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution stating the City Council’s position of No Confidence in Sheriff Christina Corpus and calling on Sheriff Corpus to resign; or

2. Do not adopt a Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS STATING THE CITY COUNCIL’S POSITION OF NO CONFIDENCE IN SHERIFF CHRISTINA CORPUS AND CALLING ON SHERIFF CORPUS TO RESIGN.

WHEREAS, on September 28, 2010, the City entered into a Law Enforcement Services Agreement (“Agreement”) with the County of San Mateo Sheriff’s Office with an effective date of October 31, 2010; and
WHEREAS, the Agreement includes police management, patrol, investigation, traffic enforcement, community and school services, as well as support service components; and WHEREAS, the contract has been in place for almost 15 years, commencing with a term of October 31, 2010 through June 30, 2015, and has been renewed for two additional five year terms; and
WHEREAS, on November 13, 2024, the San Mateo County Board of Supervisors released a 400-page independent investigation (“Report”) of the Sheriff sustaining several allegations including that Sheriff Corpus and her executive team have engaged in retaliation and intimidation, exceeded and/or abused their authority, and that the Sheriff has uttered and texted racial and homophobic slurs in the workplace; and
WHEREAS, on November 18, 2024, San Mateo County Congressional and Legislative leaders issued a statement calling for Sheriff Corpus to resign as a result of the Report; and WHEREAS, on November 19, 2024, the San Mateo County Board of Supervisors introduced an Ordinance to amend the County Charter granting the Board of Supervisors the authority to remove and elected official for cause; and WHEREAS, since Sheriff Corpus took office in January 2023, at least 106 sworn staff have left the agency and there has been significant turnover in the executive staff; and WHEREAS, public safety is of the utmost importance to our community; and WHEREAS, the findings that were sustained in the Report do not reflect the standards that our community wants in their law enforcement personnel.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby states the City Council’s position of No Confidence in Sheriff Christina Corpus and calls on Sheriff Corpus to resign.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 25th day of November 2024, by the following vote:

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________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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San Carlos City CouncilNovember 25, 2024

San Carlos City Council
November 25, 2024