Agenda packet — San Carlos City Council, March 10, 2025

CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
March 10, 2025 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: Sara McDowell
COUNCIL:John Dugan, Neil Layton, Adam Rak, Pranita Venkatesh

1. CALL TO ORDER

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 pursuant to Assembly Bill 2449.

MAYOR: Sara McDowell
COUNCIL:John Dugan, Neil Layton, Adam Rak, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE
Led by Eagle Scout Devon Foster

4. CHANGES TO THE ORDER OF THE AGENDA

5. REPORT FROM CLOSED SESSION

6. PRESENTATIONS
a. Present a Proclamation to Devon Foster with Scouts BSA Troop 61, Upon Receiving His Eagle Scout Award.

7. 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.

8. 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.

9. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the February 6, 2025 City Council Special Meeting Minutes. c. Approve the February 10, 2025 City Council Special Meeting Minutes. d. Reappoint Kelly Hickey to the Economic Development Advisory Commission for the Term Ending June 30, 2028.
e. Reappoint Madhura Kumar to the Economic Development Advisory Commission for the Term Ending June 30, 2028.
f. Reappoint Mark Stogner to the Parks, Recreation and Culture Commission for the Term Ending June 30, 2028.
g. Appoint Russ Bertetta to the San Carlos Museum of History Board for the Term Ending June 30, 2028.
h. Appoint Parks, Recreation and Culture Commission (PR&C) Alternate Member Alexandra Seeber as a PR&C Voting Member to a Full Term from July 1, 2025 to June 30, 2028.
i. Appoint Elaine Kistenmacher to the Parks, Recreation and Culture Commission for a Full Term from July 1, 2025 to June 30, 2028.
j. Deny Claim of Kevin Booth.
k. Adopt Resolutions of the City Council of San Carlos and the Housing Authority Authorizing the City Manager and the Housing Authority Chair to Execute an Amendment to the Wheeler Plaza Development Reciprocal Easement, Joint Maintenance, and Use Agreement in Connection with the 1244 Cherry Street Affordable Housing Project Lot Line Adjustment.
l. Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Promissory Note with Cherry Street Commons LP Associated with the 1244 Cherry Street Affordable Housing Project.
m. Adopt a Resolution Authorizing the City Manager to Transfer $4 Million from the Unfunded Liability Reserve to Pay Down the California Public Employees Retirement System ("CalPERS") Unfunded Accrued Liability (UAL) and Apply the $4 Million Payment to the Shortterm Amortization Bases in Fiscal Year (FY) 2024

25. n. Deny Claim of Anusha Sethuraman.

10. 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 Report on the Results of the 2025 Community Satisfaction Survey Conducted by True North Research.

11. STUDY SESSION
a. Receive a Presentation and Provide Direction to Staff on Site Furnishings, Paving Design and Materials, Special Elements, Lighting, Planting Palette, and Design Choices for the Water Feature on the 700 Block of Laurel Street and Harrington

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 Report on the Results of the 2025 Community Satisfaction Survey Conducted by True North Research.

12. NEW BUSINESS
a. Consideration of Adopting a Resolution Adopting the Pulgas Creek Watershed Management Plan.

13. 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.

14. 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 [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Reappoint Kelly Hickey to the Economic Development Advisory Commission for the Term Ending June 30, 2028.

RECOMMENDATION:

Staff provides no recommendation, as commission and board appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with reappointing commissioners.

BACKGROUND AND ANALYSIS:

On August 16, 2022, the City Council appointed Kelly Hickey to the Economic Development Advisory Commission (EDAC) for a full term ending June 30, 2025. She has expressed interest in continuing her service on EDAC for another term. Attached is her attendance report covering her tenure to date.

According to San Carlos Municipal Code §2.24.060, commission members may serve two threeyear terms. Thus, Commissioner Hickey is currently eligible for one additional three-year term.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Kelly Hickey to EDAC for a full term ending June 30, 2028; or

2. Do not reappoint Kelly Hickey to EDAC and direct staff to recruit to fill the seat beginning July 1, 2025; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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

1. Hickey Attendance Report

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Reappoint Madhura Kumar to the Economic Development Advisory Commission for the Term Ending June 30, 2028.

RECOMMENDATION:

Staff provides no recommendation, as commission and board appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with reappointing commissioners.

BACKGROUND AND ANALYSIS:

On June 11, 2021, the City Council appointed Madhura Kumar to the Economic Development Advisory Commission (EDAC) to fill a term ending June 30, 2022. On March 14, 2022, the Council reappointed Commissioner Kumar to a full term ending June 30, 2025.

Commissioner Kumar has expressed interest in continuing to serve on this commission. Attached is his attendance report covering his tenure to date.

Per San Carlos Municipal Code §2.24.060, commission members may serve two three-year terms, up to a maximum of six consecutive years. However, time served to fill an unexpired term does not count toward this limit. Thus, Commissioner Kumar is eligible for one additional threeyear term.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Madhura Kumar to EDAC for a term ending June 30, 2028; or

2. Do not reappoint Madhura Kumar to EDAC and direct staff to recruit to fill the seat beginning July 1, 2025; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk
Approved for submission by:

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_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Kumar Attendance Report

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Reappoint Mark Stogner to the Parks, Recreation and Culture Commission for the Term Ending June 30, 2028.

RECOMMENDATION:

Staff provides no recommendation, as commission appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with commission appointments.

BACKGROUND AND ANALYSIS:

On August 28, 2024, the City Council appointed Mark Stogner to the Parks, Recreation and Culture Commission (PR&C) as an alternate member. Shortly after, on September 23, 2024, the City Council appointed him as a voting member to fill an unexpected vacancy on the PR&C, with a term ending June 30, 2025.

Commissioner Stogner has expressed interest in continuing his service on PR&C for another term. Attached is his attendance report covering his tenure to date.

According to the San Carlos Municipal Code §2.24.060, Commission members may serve two three-year terms, for a maximum of six consecutive years. However, time served to fill an unexpired term does not count toward this limit. Thus, Commissioner Stogner is eligible to serve two additional three-year terms.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Mark Stogner to the Parks, Recreation and Culture Commission for a term ending June 30, 2028; or

2. Do not reappoint Mark Stogner to the Parks, Recreation and Culture Commission and direct staff to recruit to fill the seat beginning July 1, 2025; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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

1. Stogner Attendance Report

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Appoint Russ Bertetta to the San Carlos Museum of History Board for the Term Ending June 30, 2028.

RECOMMENDATION:

Staff provides no recommendation, as commission appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with commission appointments.

BACKGROUND AND ANALYSIS:

As of June 30, 2025, the City Council’s appointed representative on the San Carlos Museum Board of Trustees, Molly Barton, will have served for six consecutive years. Per San Carlos Municipal Code Section §2.24.060, she will not be eligible for reappointment.

On August 28, 2024, the City Council interviewed Russ Bertetta, who expressed interest in a seat on the Museum Board. Since there were no vacant seats at the time, the Council approved adding Mr. Bertetta to the Eligibility List.

The Council now has the option to appoint Mr. Bertetta from the Eligibility List to the Board. He has confirmed his continued interest in serving on the Museum Board.

Attached is Mr. Bertetta’s 2024 application.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Appoint Russ Bertetta to the Museum of San Carlos History Board for a term ending June 30, 2028; or

2. Do not appoint Russ Bertetta to the Museum of San Carlos History Board and direct staff to recruit to fill the seat beginning July 1, 2025; or

3. Provide staff with alternative direction.

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Respectfully submitted by:

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

1. Bertetta 2024 Application

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Appoint Parks, Recreation and Culture Commission (PR&C) Alternate Member Alexandra Seeber as a PR&C Voting Member to a Full Term from July 1, 2025 to June 30, 2028.

RECOMMENDATION:

Staff provides no recommendation, as commission and board appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with reappointing commissioners.

BACKGROUND AND ANALYSIS:

Two Commissioners on the Parks, Recreation, and Culture Commission (PR&C) will reach the end of their terms on June 30, 2025.

Alexandra Seeber, who has served as an alternate on the PR&C since her appointment on September 23, 2024, has expressed interest in transitioning to a voting member seat for a term from July 1, 2025, to June 30, 2028. Attached is her attendance report covering her tenure to date.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Appoint Alexandra Seeber to serve as a voting member on the PR&C for a full term beginning July 1, 2025 and ending June 30, 2028; or

2. Do not appoint Alexandra Seeber and direct staff to recruit to fill the seat beginning July 1, 2025; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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

1. Seeber Attendance Report

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Appoint Elaine Kistenmacher to the Parks, Recreation and Culture Commission for a Full Term from July 1, 2025 to June 30, 2028.

RECOMMENDATION:

Staff provides no recommendation, as commission and board appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with reappointing commissioners.

BACKGROUND AND ANALYSIS:

Two Commissioners on the Parks, Recreation, and Culture Commission (PR&C) will reach the end of their terms on June 30, 2025.

On August 28, 2024, the City Council added Elaine Kistenmacher to the PR&C Eligibility List. She has expressed interest in being appointed to serve for a full term from July 1, 2025 to June 30, 2028. Attached is Ms. Kistenmacher’s commission application from 2024.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Appoint Elaine Kistenmacher to serve as a voting member on the PR&C for a full-term beginning July 1, 2025 and ending June 30, 2028; or

2. Do not appoint Elaine Kistenmacher and direct staff to recruit to fill the seat beginning July 1, 2025; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ALTERNATIVES:

1. Kistenmacher 2024 Application

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Deny Claim of Kevin Booth.

RECOMMENDATION:

Staff recommends that the City Council deny the claim of Kevin Booth as recommended by the City’s claim administrators at Carl Warren.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

This item is coming before the Council to act on the claim submitted by Kevin Booth (“Claimant”).

Staff recommends that the City Council deny the claim based on Carl Warren’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, it is immediately forwarded to claims examiners at Carl Warren for investigation. Upon completing the investigation, Carl Warren provides the City with a recommendation on how to proceed with the claim.

About Carl Warren. Carl Warren is a leading national third-party administrator (TPA) that specializes in property and casualty claims management, subrogation recovery, and litigation management. Effective January 1, 2025, Carl Warren was hired by Pooled Liability Assurance Network Joint Powers Authority (“PLAN JPA”) to provide claims administration services to the member cities. 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 Services Director and Senior Management Analyst as primary and alternate PLAN JPA Board members.

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ANALYSIS:

The Claimant filed a claim against the City for property damages. The Claimant alleged that his vehicle was damaged while driving on Holly Street. The Claimant alleges, that on November 26, 2024, while traveling on Holly Street towards the U.S. Highway 101 north ramp, he heard a loud thud and felt the car slide. Claimant further alleges that the incident caused his front wheel to become detached from the lower control arm of his vehicle.

The claim was received on December 9, 2024; however, the Claimant did not provide the amount of the claim or state how the City is responsible for the occurrence. Staff contacted the Claimant and a notice of insufficiency was sent on December 11, 2024, informing the Claimant of the insufficient claim. Staff has not received an amended claim since that time. For these reasons, staff recommends formal rejection of Kevin Booth’s claim.

The Council’s rejection of this claim does not prevent City staff nor the staff of Carl Warren from continuing to work with the Claimant to resolve the dispute.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Deny claim of Kevin Booth; or

2. Do not deny claim of Kevin Booth; 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. Booth, K. Claim Form

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Adopt Resolutions of the City Council of San Carlos and the Housing Authority Authorizing the City Manager and the Housing Authority Chair to Execute an Amendment to the Wheeler Plaza Development Reciprocal Easement, Joint Maintenance, and Use Agreement in Connection with the 1244 Cherry Street Affordable Housing Project Lot Line Adjustment.

RECOMMENDATION:

Staff recommends that the City Council and Housing Authority authorize the City Manager and Housing Authority Chair to execute an amendment to the Wheeler Plaza Development Reciprocal Easement, Joint Maintenance, and Use Agreement (“JUA”) in connection with the 1244 Cherry Street affordable housing project lot line adjustment.

FISCAL IMPLICATIONS:

There are no fiscal impacts. The City would continue making monthly payments towards the joint maintenance costs as contractually obligated by the original JUA. The City currently pays 23.85% of common improvement costs and the funds come from the Public Works budget.

BACKGROUND:

In 2023, the City of San Carlos and HIP Housing entered into a disposition, development, and loan agreement (DDLA) to redevelop 1244 Cherry Street, along with neighboring City and Housing Authority-owned properties, into a 33-unit affordable housing development. Under this agreement, the City will make both financial and property contributions towards the development of the new project, known as Cherry Street Commons.

As outlined in the DDLA, the City and Housing Authority conveyed the property to Cherry Street Commons LP in December 2024. The property was then combined into a single, larger parcel under Cherry Street Commons LP ownership, as shown in Exhibits A and B of Attachment 4. To formalize this change, a lot line adjustment (LLA) was completed.

Cherry Street Commons is located adjacent to the Wheeler Plaza Development, a mixed-use complex with 109 condominiums and five ground-floor commercial units. As part of the Wheeler Plaza project, a JUA was established among three parties: the City of San Carlos, the Wheeler Plaza Residential Owners Association (“HOA”), and the Wheeler Plaza commercial owners. This agreement ensures shared maintenance and management of common infrastructure, including the access system, building and landscaping, electrical system, exterior, fire alarm and sprinkler systems, garage venting, and roof area. The agreement applies to Lots 1, 2, 3, and 4, as detailed in Exhibits A and B of Attachment 4.

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The Cherry Street Commons lot line adjustment impacted Lot 4, which is subject to the JUA. As a result, the JUA requires an amendment to reflect the lot line adjustment and facilitate the construction of Cherry Street Commons.

ANALYSIS:

The JUA amendment includes the minor changes below:
• Redefining Lot 4 to reflect the lot line adjustment and updating associated rights and obligations
• Outlining Cherry Street Commons project responsibilities, including utility relocation, alley and sidewalk reconfiguration, construction compliance, and easements and access rights • Reaffirming the City of San Carlos' obligations, such as maintaining the alleyway and storm drain easement
As outlined in the JUA, amendments require four votes from the JUA Committee, which consists of two representatives from the Wheeler Plaza HOA, two City representatives (Community Development and Public Works Directors), and one from the commercial entities. The City, Wheeler Plaza HOA, and Cherry Street Commons team have been actively coordinating to establish and implement the JUA Committee, ensuring all parties understand their roles and obligations. Additionally, the City has mailed invitations to the commercial entity, inviting them to participate in the committee.

The JUA Committee meeting is scheduled for March 12, with the primary agenda item being consideration of the JUA amendment approval. Approving this amendment is imperative for Cherry Street Commons to finalize financing and begin construction, supporting both the DDLA agreement and the affordable housing project. The amendment also emphasizes the partnership between the Wheeler Plaza development and the upcoming Cherry Street Commons, ensuring long-term collaboration and project success.

The proposed resolution would authorize the City Manager and City Attorney to approve minor non-substantive amendments necessary to close the transaction.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt Resolutions of the City Council of San Carlos and the Housing Authority Authorizing the City Manager and Housing Authority Chair to execute an amendment to the Wheeler Plaza Development Reciprocal Easement, Joint Maintenance, and Use Agreement in connection with the 1244 Cherry Street Affordable Housing Project lot line adjustment; or

2. Do not adopt Resolutions; or

3. Provide staff with alternative direction.

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Respectfully submitted by:

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

1. City Resolution

2. Housing Authority Resolution

3. Proposed JUA Amendment

4. JUA Amendment Exhibits

5. 2019 JUA

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RESOLUTION NO. 2025 – ____

A RESOLUTION OF THE CITY COUNCIL OF SAN CARLOS

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE

WHEELER PLAZA DEVELOPMENT RECIPROCAL EASEMENT, JOINT MAINTENANCE, AND USE AGREEMENT IN CONNECTION WITH THE 1244 CHERRY STREET AFFORDABLE HOUSING PROJECT LOT LINE ADJUSTMENT.

WHEREAS, in 2023, the City of San Carlos and HIP Housing entered into a disposition, development, and loan agreement (DDLA) to redevelop 1244 Cherry Street, along with neighboring City and Housing Authority-owned properties, into a 33-unit affordable housing development. Under this agreement, the City will make both financial and property contributions towards the development of the new project, known as Cherry Street Commons; and WHEREAS, as outlined in the DDLA, the City and Housing Authority conveyed property to Cherry Street Commons LP in December 2024, after which it was combined into a single, larger parcel under Cherry Street Commons LP ownership and formalized through a lot line adjustment (LLA); and
WHEREAS, the Cherry Street Commons lot line adjustment impacted Lot 4, which is subject to the Wheeler Plaza Reciprocal Easement, Joint Maintenance, and Use Agreement (“JUA”) which was established among three parties: the City of San Carlos, the Wheeler Plaza Residential Owners Association (“HOA”), and the Wheeler Plaza commercial owners; and WHEREAS, the JUA requires an amendment to reflect the lot line adjustment and facilitate the construction of Cherry Street Commons; and
WHEREAS, as outlined in the JUA, amendments require four votes from the JUA Committee—comprised of two representatives from the Wheeler Plaza HOA, two City representatives, and one from the commercial entities—and to facilitate this process, the City, Wheeler Plaza HOA, and Cherry Street Commons team have been actively coordinating to establish and implement the committee; and
WHEREAS, approving this amendment is essential for Cherry Street Commons to finalize financing and begin construction, while also reinforcing the partnership with Wheeler Plaza to ensure long-term collaboration as neighboring residential developments and project success in alignment with the DDLA agreement and affordable housing goals.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to execute an amendment to the Wheeler Plaza Development Reciprocal Easement, Joint Maintenance, and Use Agreement in connection with the 1244 Cherry Street affordable housing project lot line adjustment.

IT IS FURTHER RESOLVED that the City Manager and City Attorney are authorized to approve minor non-substantive amendments necessary to close the transaction. * * * * *
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 10th day of March 2025, 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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RESOLUTION NO. HA – ____

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SAN CARLOS

AUTHORIZING THE CHAIR OF THE HOUSING AUTHORITY TO EXECUTE AN

AMENDMENT TO THE WHEELER PLAZA DEVELOPMENT RECIPROCAL EASEMENT, JOINT MAINTENANCE, AND USE AGREEMENT IN CONNECTION WITH THE 1244 CHERRY STREET AFFORDABLE HOUSING PROJECT LOT LINE ADJUSTMENT.

WHEREAS, in 2023, the City of San Carlos and HIP Housing entered into a Disposition, Development, and Loan Agreement (DDLA) to redevelop 1244 Cherry Street, along with neighboring City- and Housing Authority-owned properties, into a 33-unit affordable housing development. Under this Agreement, the City will make both financial and property contributions towards the development of the new project, known as Cherry Street Commons; and WHEREAS, as outlined in the DDLA, the City and Housing Authority conveyed property to Cherry Street Commons LP in December 2024, after which it was combined into a single, larger parcel under Cherry Street Commons LP ownership and formalized through a Lot Line Adjustment (LLA); and
WHEREAS, the Cherry Street Commons lot line adjustment impacted Lot 4, which is subject to the Wheeler Plaza Reciprocal Easement, Joint Maintenance, and Use Agreement (JUA) which was established among three parties: the City of San Carlos, the Wheeler Plaza Residential Owners Association (HOA), and the Wheeler Plaza commercial owners; and WHEREAS, the JUA requires an amendment to reflect the lot line adjustment and facilitate the construction of Cherry Street Commons; and
WHEREAS, as outlined in the JUA, amendments require four votes from the JUA Committee—comprised of two representatives from the Wheeler Plaza HOA, two City representatives, and one from the commercial entities—and to facilitate this process, the City, Wheeler Plaza HOA, and Cherry Street Commons team have been actively coordinating to establish and implement the committee; and
WHEREAS, approving this amendment is essential for Cherry Street Commons to finalize financing and begin construction, while also reinforcing the partnership with Wheeler Plaza to ensure long-term collaboration as neighboring residential developments and project success in alignment with the DDLA agreement and affordable housing goals.

NOW, THEREFORE BE IT RESOLVED, that the Housing Authority of the City of San Carlos hereby authorizes the Chair of the Housing Authority to execute an amendment to the Wheeler Plaza Development Reciprocal Easement, Joint Maintenance, and Use Agreement in connection with the 1244 Cherry Street affordable housing project lot line adjustment.

IT IS FURTHER RESOLVED that the Housing Authority Chair and Legal Counsel are authorized to approve minor non-substantive amendments necessary to close the transaction. * * * * *

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I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the Housing Authority of the City of San Carlos at a scheduled meeting thereof held on the 10th day of March 2025, by the following vote:
________________________________________
SECRETARY of the San Carlos Housing Authority
APPROVED:
___________________________________
CHAIR of the San Carlos Housing Authority
AYES, BOARD MEMBERS:

NOES, BOARD MEMBERS:

ABSENT, BOARD MEMBERS:

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Promissory Note with Cherry Street Commons LP Associated with the 1244 Cherry Street Affordable Housing Project.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute an amendment to the $12,860,000 promissory note with Cherry Street Commons, LP to amend the repayment terms of the loan.

FISCAL IMPLICATIONS:

Adoption of the Resolution would result in deferred annual loan payments of principal or accrued interest in an amount equal to 50% of residual receipts and all loan payments would be deferred until the loan term expiration in 55 years. The amendment of the loan would reduce the overall cost and ensure the long-term success for the new affordable housing project currently underway.

BACKGROUND:

In 2023, the City and HIP Housing entered into a disposition, development, and loan agreement (DDLA) to redevelop the property at 1244 Cherry Street, along with neighboring City and Housing Authority (HA) owned property, into a larger, 33-unit affordable housing development. Under the terms of the agreement the City will make both financial and property contributions towards the development of the new affordable housing project, known as Cherry Street Commons.

ANALYSIS:

As outlined in the DDLA, a $12,860,000 promissory note was executed in December 2024, originally requiring annual payments of principal or accrued interest in an amount equal to 50% of residual receipts. The proposed amendment defers all payments until the loan term expires in 55 years, aligning with the purpose of the DDLA and the project. Notably, the City does not receive annual payments for other affordable housing loans, such as the 817 Walnut project. Given the tighter-than-expected financing market, the Cherry Street Commons project is actively seeking ways to reduce costs and finalize its financing to begin construction. Amending the promissory note’s repayment terms will support this effort and ensure the long-term success of the affordable housing project.

ALTERNATIVES:

The alternatives available to the City Council include:

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1. Adopt a Resolution authorizing the City Manager to execute an amendment to the promissory note with Cherry Street Commons LP associated with the 1244 Cherry Street Affordable Housing Project; 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. Proposed First Amendment to Promissory Note

3. Promissory Note

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RESOLUTION NO. 2025 – ____

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

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE

PROMISSORY NOTE WITH CHERRY STREET COMMONS LP ASSOCIATED WITH THE 1244 CHERRY STREET AFFORDABLE HOUSING PROJECT.

WHEREAS, in 2023, the City and HIP Housing entered into a disposition, development, and loan agreement (DDLA) to redevelop the property at 1244 Cherry Street along with neighboring City and Housing Authority owned property into a larger, 33-unit affordable housing development. Under the terms of the agreement, the City will make both financial and property contribution towards the development of the new affordable housing project, known as Cherry Street Commons; and WHEREAS, as outlined in the DDLA, the $12,860,000 promissory note was executed in December 2024, originally requiring annual payments of principal or accrued interest in an amount equal to 50% of residual receipts. The proposed amendment would defer all payments until the loan term expires in 55 years; and
WHEREAS, given the tighter-than-expected financing market, the Cherry Street Commons project is actively seeking ways to reduce costs and finalize its financing to begin construction; and WHEREAS, approving the amendment to the promissory note’s repayment terms will support the purpose of the DDLA and ensure the long-term success of the Cherry Street Commons affordable housing project, thus serving an important public purpose.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to execute the promissory note amendment. * * * * *
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 10th day of March 2025, 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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165.160/635421

FIRST AMENDMENT TO

AMENDED AND RESTATED PROMISSORY NOTE
(Cherry Street Affordable Housing Project)
This FIRST AMENDMENT TO AMENDED AND RESTATED PROMISSORY NOTE (this “Amendment”) is dated as of February 1, 2025, by and between Cherry Street Commons, L.P., a California limited partnership (“Borrower”), and City of San Carlos, a municipal corporation (“Lender”).

WITNESSETH:

WHEREAS, Borrower executed and delivered that certain Amended and Restated Promissory Note dated December 1, 2024 (the “Note”) in favor of Lender to evidence a loan to Borrower in the principal amount of Twelve Million Eight Hundred Sixty Dollars ($12,860,000) (the “Loan”);
WHEREAS, Borrower and Lender wish to enter into this Amendment to amend the repayment terms of the Loan; and
WHEREAS, capitalized terms used and not defined herein shall have the meanings ascribed to such terms in the Note.

NOW, THEREFORE, in consideration of the foregoing premises and the terms and conditions hereof, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree that the Note is amended as follows:

1. Special Definitions. Section 5(b) of the Note is hereby deleted in its entirety and shall be indicated as “Reserved.”

2. Annual Payments. Section 5(c) of the Note is hereby deleted in its entirety and replaced with the following:
“Notwithstanding anything to the contrary contained in the Loan Documents or elsewhere, no annual payments of principal or accrued interest shall be required and all payments are deferred until the expiration of the Term, unless due and payable earlier in accordance with the provisions hereof.”

3. Governing Law. This Amendment shall be governed and interpreted in accordance with the laws of the State of California.

4. Full Force and Effect; No Default. Except and to the extent modified and amended hereby, each and every provision of the Note is, and shall remain unchanged and in full force and effect, and constitute lawful and binding obligations of Borrower, duly authorized by all necessary action, and enforceable in accordance with their respective terms.

5. Binding Nature; Counterparts. Each and every term and provision of this Amendment shall be binding upon Borrower, and shall inure to the benefit of Lender, and their

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Amendment to Multifamily Note 2 Isla Vista Apartments
165.160/635421
respective successors and assigns. This Amendment may be executed, acknowledged, accepted and consented to by counterpart signature pages.

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Amendment to Amended and Restated Promissory Note S-1 Cherry Street 165.160/635421
IN WITNESS WHEREOF, Borrower and Lender have executed this Amendment as of the date and year first above written.

BORROWER:

Cherry Street Commons, L.P.,
a California limited partnership
By: Eden Cherry Street LLC
a California limited liability company,
its co-general partner
By: Eden Investments, Inc.
a California nonprofit public benefit corporation, its
sole member/manager
By: ________________________
Name: Andrea Osgood,
Its: Chief of Real Estate Development and Vice President By: HIP Housing Development Corporation,
a California nonprofit public benefit corporation,
its co-general partner
By: __________________________
Name: Kate Comfort Harr
Its: Executive Director
[Signatures Continue on the Following Page]

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Amendment to Amended and Restated Promissory Note S-2 Cherry Street 165.160/635421
LENDER:

CITY OF SAN CARLOS,
a California municipal corporation
By: _______________________________
Jeff Maltbie,
City Manager
Attest: _______________________________
Crystal Mui,
City Clerk
Approved as to Form:

By: _______________________________
Greg Rubens,
City Attorney

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Transfer $4 Million from the Unfunded Liability Reserve to Pay Down the California Public Employees Retirement System (“CalPERS”) Unfunded Accrued Liability (UAL) and Apply the $4 Million Payment to the Short-term Amortization Bases in Fiscal Year (FY) 2024-25.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to transfer $4 million from the Unfunded Liability Reserve to pay down the California Public Employees Retirement System (“CalPERS”) Unfunded Accrued Liability (UAL) and apply the $4 million payment to the short-term amortization bases in fiscal year (FY) 2024-25.

FISCAL IMPLICATIONS:

As of June 30, 2024, the Assigned Fund Balance Reserve balance associated with Unfunded Liabilities is $7 million.

Approval of this Resolution will generate projected gross savings in the amount of $6.1 million through 2041, or operating budget savings of $459,000 ($408,000 General Fund and $51,000 Wastewater Fund), on average, over the next ten years.

BACKGROUND:

On June 13, 2011, the City Council approved Resolution 2011-040 classifying the various components of fund balance as defined in Governmental Accounting Standards Board (GASB) Statement 54. In accordance with that Resolution, the City Council designated the City Manager as the City official to determine and define the amounts of those components of fund balance that are classified as Assigned Fund Balance Reserves as defined by GASB 54. The Unfunded Liability Reserve was established several years ago to help offset the costs of pension and pension liabilities. The reserve was created from prior year surpluses which are typically generated from salary and benefit savings from vacant positions. At the end of June 30, 2024, an additional $3 million was added into this reserve from savings generated throughout the year.

The CalPERS Public Employees’ Retirement Fund (PERF) has experienced fluctuations in investment returns over the last several years. In addition to the volatility in the investment returns, the CalPERS Board has made changes in the discount rate assumptions. Both factors drive the annual pension obligations of the City.

The City also continues to pay for 52.9% of the UAL of the Belmont-San Carlos Fire Department (BSCFD). Since this is an inactive plan, it will be fully paid off or closed in FY 2033-34. However,

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this means that any volatility in CalPERS’ investment returns or changes in the CalPERS assumptions will be applied over the remaining years, which will decrease as we approach FY 2033-34. As an example, if CalPERS earns 0% investment returns in FY 2024-25, the BSCFD UAL is projected to increase by $5 million. This additional cost would be amortized over a shorter period and would increase our costs beginning in FY 2027-28 by $828,000. Since we share these costs with the City of Belmont, any prepayment would need to be coordinated and may not be feasible.

The City Council has previously approved one-time payments in the amount of $5 million in FY 2017-18, $7 million in FY 2020-21, and $3 million in FY 2023-24 to reduce the UAL that is impacted by the changes in the discount rate and investment returns in the CalPERS PERF.

ANALYSIS:

The Additional Discretionary Payment (ADP) to CalPERS in the amount of $4 million would eliminate $6.2 million in future pension payments and would help smooth out the volatility in the CalPERS UAL payments with our Miscellaneous Tier 1 (Misc Tier 1) Pension Plan.

The City’s CalPERS UAL is made up of layers called amortization bases, and each of these amortization bases represents portions of UAL debt with a specific term and associated repayment schedule. Paying off the shorter bases (with estimated savings through 2041) would maximize near-term savings. A benefit of paying off the shorter bases is the associated savings would be more concentrated in the near term, which would provide more impact for managing the projected peak in UAL payments through FY 2036 (based on the current payment schedule). The line in the chart below depicts the current projected UAL payments associated with the Misc Tier 1 Pension Plan, adjusted for the $4 million ADP, for comparison.

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Given the uncertainty of future changes in the CalPERS discount rate and their investment returns, it is recommended that the one-time payment of $4 million be applied to pay-down shorter amortization bases to maximize the projected payments savings in the next ten years.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to transfer $4 million from the Unfunded Liability Reserve to pay down the CalPERS UAL and apply the $4 million payment to the short-term amortization bases in FY 2024-25; 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

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RESOLUTION NO. 2025 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AUTHORIZING THE CITY MANAGER TO TRANSFER $4 MILLION FROM THE

UNFUNDED LIABILITY RESERVE TO PAY DOWN THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (“CALPERS”) UNFUNDED ACCRUED LIABILITY (UAL) AND APPLY THE $4 MILLION PAYMENT TO THE SHORT-TERM AMORTIZATION BASES IN FISCAL YEAR (FY) 2024-25.

WHEREAS, the Unfunded Liability Reserve was established several years ago to offset the costs of pension and pension liabilities; and
WHEREAS, the balance in the Unfunded Liability Reserve as of June 30, 2024 is $7 million; and
WHEREAS, the CalPERS Public Employees’ Retirement Fund (PERF) has experienced fluctuations in investment returns over the last several years and CalPERS has made changes to the discount rate assumptions; and
WHEREAS, the one-time payment to CalPERS would eliminate $6.2 million in future pension payments in the Miscellaneous Tier 1 Pension Plan; and WHEREAS, approval of this Resolution will generate estimated operating budget savings in the amount of $459,000, on average, over the next ten years.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to transfer $4 million from the Unfunded Liability Reserve to pay down the CalPERS UAL in FY 2024-25 and apply the $4 million payment to the short-term amortization bases.
* * * * *
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 10th day of March 2025, 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: March 10, 2025
ITEM TITLE: Deny Claim of Anusha Sethuraman.

RECOMMENDATION:

Staff recommends that the City Council deny the claim of Anusha Sethuraman as recommended by the City’s claim administrators at Carl Warren.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

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

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Management Analyst as primary and alternate PLAN JPA Board members.

ANALYSIS:

The Claimant filed a claim against the City for property damages. The Claimant alleged that on September 22, 2024, a big jag in the curb caused her tires to burst while she parked her car on Chestnut Street. Claimant seeks $750 for the cost to repair her tires.

This does not appear to be a case of liability against the City. According to Section 12.04.020 of the San Carlos Municipal Code, property owners are responsible for the maintenance and repair of the sidewalk and are responsible for bodily injury or property damage resulting from failing to keep the sidewalk which includes the curb and gutter in a non-dangerous condition. For that reason, Carl Warren recommends formal rejection of Anusha Sethuraman‘s claim.

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

ALTERNATIVES:

The alternatives available to the City Council include:

1. Deny the claim of Anusha Sethuraman; or

2. Do not deny the claim of Anusha Sethuraman; 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 Sethuraman, A. Claim Form.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Receive a Report on the Results of the 2025 Community Satisfaction Survey Conducted by True North Research.

RECOMMENDATION:

Staff recommends that the City Council receive a report on the results of the 2025 Citizen Opinion Survey conducted by True North Research.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with receiving this report.

BACKGROUND:

It is the City’s mission to provide high-quality services and facilities to our residents in an equitable, sustainable, transparent, responsive, and friendly manner in order to foster an inclusive, safe, and healthy community now and in the future.

To achieve the City’s mission, the City Council updates the City’s strategic plan annually. The strategic plan identifies current issues, needs, and interests that are of strategic importance to the quality of life of the community beyond the City’s day-to-day operations and initiatives.

The City’s strategic goals are based upon the community’s needs and interests, informed by the City Council’s knowledge and understanding of the community’s needs, and defined by City staff’s expertise in providing local government management and services.

In addition to offering multiple tools for community engagement on a range of topics and issues within the city, the City conducts two different community surveys. The first type of survey, and the focus of this report is a Citizen Opinion Survey, which is conducted every two years and serves as a performance measurement tool to understand residents’ needs and priorities and measure how well the City is performing. The second type of survey is the Community Characteristics Survey and was last conducted in 2024. The Community Characteristics Survey is designed to provide the City with a better understanding of the San Carlos community itself, including its priorities and lifestyles.

The 2025 Citizen Opinion Survey was administered between January 17 and January 25, 2025, to a random sample of 680 adults. The 2025 Citizen Opinion Survey Summary Report dated February 2025 (“2025 Report”) is included as Attachment 1. For comparative purposes, the 2023 Citizen Opinion Survey Summary Report dated February 2023 (“2023 Report”) is included as Attachment 2. Survey reports are posted on the City’s website at cityofsancarlos.org/residents/community-surveys.

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ANALYSIS:

Both the 2023 and 2025 Citizen Surveys and Summary Reports were conducted and prepared by True North Research, an experienced firm that conducts statistically significant surveys. The 2025 survey was administered to a random sample of 680 adult respondents who reside within San Carlos and followed a mixed-method design that employed multiple recruiting methods (email, text, and telephone) and multiple data collection methods (telephone and online).

In comparison to the 2023 Report, all key performance metrics remained stable or increased, and many specific service areas witnessed statistically significant increases in resident satisfaction.

Some of the key results and observations from the 2025 Report are listed below:

1. San Carlos residents continue to be satisfied with the City’s overall efforts to provide services and with the quality of life in San Carlos. When asked to rate the City’s overall performance in providing municipal services, 86% of residents surveyed in 2025 indicated that they were satisfied with the City’s performance (Figure 5, page 12). Overall satisfaction has remained remarkably consistent for over a decade, ranging between 83% and 88%, since 2014.

2. The City’s performance providing municipal services has also contributed to a high quality of life for residents. 94% of residents surveyed in 2025 rated the quality of the life in San Carlos as “excellent” or “good”, which is the highest level recorded since 2016 (Figure 1, page 9). This sentiment was widespread, with nine in ten respondents in every identified resident subgroup rating the quality of life in San Carlos as “excellent” or “good”.

3. There were notable changes in community satisfaction with specific City services compared with 2023. Key improvements are highlighted below:
• Satisfaction with the City’s efforts to maintain storm drains, sewers, and creeks (+21%) (Figure 9, page 16)
• Satisfaction with City-provided resources and facilities available to residents during PG&E power shut-offs (+15%) (Figure 9, page 16)
• Satisfaction with preserving community character and appearance through building and planning permits, inspections, and code enforcement (+10%) (Figure 9, page 16)
• Satisfaction with how well the City of San Carlos listens to residents when making important decisions (+9%) (Table 6, page 24)
• Satisfaction with the City’s responsiveness to resident concerns (+7%) (Table 6, page 24)

4. Per Figure 8 on page 14 of the 2025 Report, “Importance of Services,” 95% of respondents once again rated “providing fire protection, prevention, and emergency medical services” as the most important service from a list of 23 services. More than 90% of respondents indicated the following services were “extremely important” or “very important”: providing safe streets (93%), maintaining storm drains, sewers, and creeks (93%), maintaining a low crime rate (92%), preparing the City for fire, police, and public works emergencies and disasters (92%), and providing trash collection and recycling services (90%).

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At the other end of the spectrum, providing more public parking downtown (36%) was viewed as the least important service among those tested.

1. Per Table 3 on page 17 of the 2025 Report, “Satisfaction with Services by Study Year,” respondents expressed increases in satisfaction for 22 of the 23 service areas, with 10 of those increases being statistically significant.

2. Per Figure 11 on page 22 of the 2025 Report, “Alternative Transportation Safety,” the majority of residents feel safe in each scenario, with 95% of residents who ride public transit reporting they feel safe while doing so (55% “very safe”) and 77% of bicyclists reporting feeling safe while riding on local streets (22% “very safe”), while 77% of respondents who walked across intersections feeling safe, (29% saying “very safe”).

3. Per Figure 12 on page 23 of the 2025 Report, “Agreement with Statements About San Carlos,” 84% of residents said that they trust the City of San Carlos, 83% agreed that the City manages its finances well, 77% felt the City is responsive to residents’ needs. Per Table 6 on page 24, “Agreement with Statements About City by Study Year,” there was a higher level of agreement across all statements in 2025, with statistically significant increases over the 2023 levels recorded for listening to residents when making important decisions (+9%) and being responsive to the needs of residents (+7%).

4. Per Figure 19 on page 28 of the 2025 Report, “Satisfaction with Communication by Study Year,” 82% of respondents indicated they were satisfied with the City’s efforts to communicate with residents through electronic and print newsletters, social media, email, the City's website, and other means. The results for this question were statistically consistent with those recorded in 2023.

5. Per Figure 27 on page 34 of the 2025 Report, “Funding Priorities,” the top five “high” or “medium” priorities according to respondents were fire protection services (97%), infrastructure maintenance and repair (95%), street maintenance and repair (93%), park and landscape maintenance (89%), and police services (85%).

Recreation programs and services narrowly missed out on being a top five priority, coming in at number 6 with 81.3% of respondents ranking it as a top priority.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Accept the results of the 2025 Community Opinion Survey; or

2. Do not accept the results of the 2025 Community Opinion Survey; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Nil Blackburn, Assistant City Manager

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

1. 2025 Citizen Opinion Survey

2. 2023 Citizen Opinion Survey

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Receive a Presentation and Provide Direction to Staff on Site Furnishings, Paving Design and Materials, Special Elements, Lighting, Planting Palette, and Design Choices for the Water Feature on the 700 Block of Laurel Street and Harrington Park.

RECOMMENDATION:

Receive a presentation and provide direction to staff on site furnishings, paving design and materials, special elements, lighting, planting palette, and design choices for the water feature on the 700 block of Laurel Street and Harrington Park.

FISCAL IMPLICATIONS:

There are no fiscal impacts associated with Council discussing and providing direction on the details for the site furnishings, paving design and materials, special elements, lighting, planting palette, and design choices for the water feature associated with improvements to the 700 block of Laurel Street and Harrington Park. Funds for this process, developing design engineering (i.e. “shovel ready” drawings), were appropriated by the City Council on October 28, 2024 through CIP Fund C2215 – Downtown Implementation. At this time, no funds have been appropriated for construction of improvements to downtown streets.

BACKGROUND:

Design-Engineering for Improvements to the 700 Block of Laurel Street and Harrington Park. Tonight’s meeting is the second in a series of four City Council Study Sessions scheduled to develop the Schematic Design for the 700 Block of Laurel Street and Harrington Park.

Project Overview.

The scope of this project includes implementation of the proposed Downtown Streetscape Master Plan, which is currently underway and scheduled for the City Council’s adoption on April 28, 2025.

During previous meetings with the City Council on September 23, 2024 and June 10, 2024, the Council expressed a strong desire to implement and begin construction on a portion of the proposed Downtown Streetscape Master Plan. On October 28, 2024, the Council authorized WRT, Inc. to prepare design engineering drawings for the 700 block of Laurel Street plus Harrington Park, with the direction to begin construction on Harrington Park sometime in 2025.

The 700 Block of Laurel Street plus Harrington Park comprise Phase 1 of the Downtown Streetscape Master Plan’s proposed street redesigns. Phase 1 is broken down into two subphases: Phase 1A consists of Harrington Park and Phase 1B consists of the entire span of the 700 block of Laurel Street, from Cherry to Olive Streets. Phase 1A and 1B will be designed

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as one complete project, however construction of Phase 1A is anticipated to commence in 2025, while construction of Phase 1B (Laurel Street) is undetermined at this time. See Figure 1 below.

Figure 1. Phase 1 Downtown Streetscape Implementation: 700 Block Laurel and Harrington Park Schematic Design Process (700 Laurel Street & Harrington Park).

A total of four study sessions with the City Council are anticipated to develop the final schematic design for the 700 block of Laurel Street and Harrington Park. All study sessions will be announced to the community who are invited to attend and share feedback. 1) February 10, 2025: Completed. The goal of this meeting was to ensure the program elements are in the right place before continuing to develop detailed design drawings (See City Council input in Attachment 3).
2) March 10, 2025: The purpose of tonight’s Study Session is to confirm site furnishings, paving design and materials, special elements, lighting, planting palette, and to receive the Council’s input on design choices for the water feature.
3) April 28, 2025: This Study Session will confirm the designs for the water feature and introduce options for the pavilion.
4) Date To be Determined: The fourth Study Session will present the final schematic design to be used for the next phase of design development drawings. In addition, staff will present a cost estimate.

Site Furnishings, Paving Design and Materials, Special Elements, Lighting, Planting Palette, and Design Choices for the Water Feature.

The proposed design, character, and details of the site furnishings, paving design and materials, specific elements, lighting, planting palette and design choices for the water feature (Attachment 1) are derived from the Downtown Streetscape Master Plan project (Attachment 2).

Tonight’s discussion will focus on:

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1) Site furnishings – including public seating, custom benches, bollards, news racks, bicycle racks, and drinking fountains
2) Paving and design materials – for plaza and walkway treatments 3) Special elements – including art pieces, sculptural and interactive elements, and murals 4) Lighting – including pedestrian lighting and specialty lighting 5) Planting palette – ground cover landscaping and trees/tree grates 6) Design choices for the water feature
Staff’s goal is to leave the March 10 Study Session with clear City Council direction on the site furnishings, paving design and materials, special elements, lighting, planting palette, and design choices for the water feature in order for the project team to stay on schedule and break ground on Phase 1A by the end of 2025.

NEXT STEPS:

Following tonight’s Council’s direction, staff and the consultant team will continue to refine the site furnishings, paving design and materials, special elements, lighting, planting palette, and the Council’s preferred design choice for the water feature. At the next study session, scheduled for April 28, 2025, the project team will present the water feature for confirmation of design, and introduce the design options for the pavilion.

Respectfully submitted by:

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

1. Schematic Design Details: Site Furnishings, Paving Design and Materials, Special Element, Lighting, Planting Palette, and Design Choices for the Water Feature

2. Materials Palette From Downtown Streetscape Master Plan Project

3. City Council Input from First Schematic Design Meeting of February 24, 2025

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 10, 2025
ITEM TITLE: Consideration of Adopting a Resolution Adopting the Pulgas Creek Watershed Management Plan.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution adopting the Pulgas Creek Watershed Management Plan.

FISCAL IMPLICATIONS:

There are no fiscal impacts and no additional funding is needed.

BACKGROUND:

The Pulgas Creek Watershed Management Plan (“Watershed Plan”) stems from the East Side Innovation District Vision Plan, which was adopted by the City Council in 2021.

In fall 2023, the project team initiated a vision planning process for the Pulgas Creek Watershed that included a review of previous community outreach efforts by the East Side Innovation District Vision plan, as well as engaged City stakeholders including the Planning Division, Department of Public Works, and the Parks and Recreation Department. The vision planning process included workshops with multiple City stakeholders to identify key goals to guide the development of the Watershed Plan. The four goals for the Watershed Plan include:
• Develop a plan based on the needs of the San Carlos community by providing accessible information and opportunities for partnership, review, and feedback • Create design guidelines and preliminary concepts that optimize the ease and accessibility for operations and maintenance, while meeting established performance levels • Provide guidance on policy refinement and standard development to integrate climate change and flood resiliency into existing processes that best prepare the San Carlos community for the future
• Identify opportunities for multi-beneficial projects that enhance, protect, and preserve the watershed while also increasing recreational opportunities for the public.

The Watershed Plan was developed to summarize the analysis of the watershed and recommend flood management and climate change resiliency strategies that could be incorporated into the Pulgas Creek Watershed. Although the focus was on the Pulgas Creek Watershed, strategies from the Watershed Plan can be considered and implemented throughout the City of San Carlos.

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ANALYSIS:

During the Watershed Plan development process, the project team collected flow monitoring data from eleven different locations in the Pulgas Creek Watershed, including Brittan Creek, Upper Pulgas Creek, and Lower Pulgas Creek, to understand the watershed's existing hydraulics and hydrology. Through data analytics, site visits, and review of different flood events records, the project team identified the most prevalent flooding risk factors, including sedimentation, trash and debris, insufficient storm drain capacity, elevated groundwater levels, and high tides. The impacts of climate change, including sea level rise, increased storm frequency and intensity, and groundwater level rise, can also contribute to more frequent landslides and flooding.

To address the most prevalent risk factors including climate change, the Watershed Plan identifies three different strategy categories, which include:
• Improvement Strategies - improvements that should be pursued throughout San Carlos and integrated into other City planning documents
• Policy Changes - recommended changes to the municipal code, operating procedures, and other policies that will continue to enhance, protect, and preserve the watershed. • Community Partnerships - highlight existing programs, proposed programs, and educational documents that provide opportunities to engage and partner with the San Carlos community
The Watershed Plan further identifies how each of the stakeholder groups, including the City, developers, businesses, and residents, can take an active role in implementing the Watershed Plan strategies. Each stakeholder group will have a different role in collaboratively implementing the Watershed Plan strategies.

For City implementation, the Watershed Plan recommends the following:
• Develop Capital Improvement Projects which consider the feasibility of:
o Implementing a native plant pilot program as part of the Parks Master Plan o Implementing a floodplain detention basin in Arguello Park and Big Canyon Park as part of the Parks Master Plan
o An underground detention basin in Burton Park as part of the Parks Master Plan o An underground detention basin adjacent to El Camino Real • Integrate with other City Planning Documents and Projects. The City should consider implementing low impact development (LID) in parks, streets, and open spaces in standalone projects and integrated into City master plans such as the Parks Master Plan, Streetscape Master Plan, and district-specific master plans • Implement Policy Changes such as:
o Consider developing potential revisions to Chapter 18.14 - Stream Development and Maintenance Overlay District to set the minimum creek setback to 35 feet for new development within commercial and industrial zoning districts along the creeks.

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o Consider developing and adopting a Sea Level Rise Overlay District and a Shallow Groundwater Rise Overlay District utilizing OneShoreline’s Planning Policy Guidance.
• Implement Proposed Programs. The City should consider implementing programs to expand awareness and education of how the community can participate in maintaining the watershed including implementing a Property Owners Education Program, integrated artwork, interpretive signage, and other programs around the city.

The Watershed Plan strategies were presented to the public through a virtual public meeting on October 1, 2024, and a presentation to the Parks, Recreation, and Culture Commission on October 2, 2024. In addition to the public meetings in October 2024, the draft Watershed Plan was published online in January 2025 along with a survey to solicit the community’s feedback on the Watershed Plan. A total of 113 responses have been received through the survey.

On February18, 2025, the Watershed Plan was presented to the Planning and Transportation Commission. Feedback received from the Commission emphasized the need for clear communication and education for creekside property owners, as well as public art to enhance awareness of stormwater facilities. A public comment that the Watershed Plan did not address water quality was received at the commission meeting. The focus of the Watershed Plan is flood management and climate change resiliency. Storm water quality is already addressed in a separate dedicated countywide program that the City is a part of called the San Mateo Countywide Water Pollution Prevention Program. Through this program, the City works closely with the Regional Water Quality Control Board and the Environmental Protection Agency, the authorities on contaminated site remediation.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the Pulgas Creek Watershed Management Plan; 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. Pulgas Creek Watershed Management Plan

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RESOLUTION NO. 2025 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS ADOPTING THE PULGAS CREEK WATERSHED MANAGEMENT PLAN.

WHEREAS, the Pulgas Creek Watershed Management Plan (“Watershed Plan”) stems from the East Side Innovation District Vision Plan, which was adopted by the City Council in 2021; and
WHEREAS, the Watershed Plan recommends flood management and climate change resiliency strategies that could be implemented throughout the City of San Carlos; and WHEREAS, a vision planning process included review of existing outreach efforts and engagement of City stakeholders to identify four goals for the Watershed Plan; and WHEREAS, the project team collected flow monitoring data and evaluated the existing hydraulics and hydrology of the watershed to identify the most prevalent flooding risk factors and climate change impacts; and
WHEREAS, to address the risk factors climate change strategies were developed under three main categories: improvement strategies, policy changes, and community partnerships; and
WHEREAS, the Watershed Plan recommends that the City develop capital improvement projects, including consideration of the feasibility of implementing native plant programs and flood detention basins as part of the Parks Master Plan; and
WHEREAS, the Watershed Plan recommends integrating low impact development in parks, streets, and open spaces in stand-alone projects and City master plans; and WHEREAS, the Watershed Plan recommends implementing policy changes such as revisions to Chapter 18.14 Stream Development and Maintenance Overlay District of the Municipal Code, and developing and adopting a Sea Level Rise Overlay District and Shallow Groundwater Rise Overlay District; and
WHEREAS, the Watershed Plan recommends that the City consider implementing programs to expand awareness and education for how the community can participate in maintaining the watershed.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby adopts the Pulgas Creek Watershed Management Plan.
*****
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 10th day of March 2025, 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 CouncilMarch 10, 2025

San Carlos City Council
March 10, 2025