San Carlos City Council
April 27, 2026

CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
April 27, 2026 7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org

AGENDA
This meeting will be conducted both in-person 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.

In-Person Participation:
•
Location.

City Hall – 600 Elm Street, Council Chambers.

•
Provide Public Comment.

T o address the City Council, 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 1-669-900-9128 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, 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 Government Code 54953.8.

1 MAYOR:

Pranita Venkatesh

COUNCIL:

John Dugan, Neil Layton, Sara McDowell, Adam Rak

1. CALL TO ORDER

2. TELECONFERENCE ANNOUNCEMENTS BY COUNCIL

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. REPORT FROM CLOSED SESSION

6. PRESENTATIONS

a.

Present

Proclamations

Recognizing

San

Carlos

Earth

Day

Art

Competition
Winners: Kylie Clark, Alisa Filina, and James Pinillos. b.

Receive

a

Presentation

from

The

San

Francisco

Peninsula

on

its

2025–2028
Strategic Plan.
c.

Receive

a

Presentation

from

SamTrans

on

the

Connect

Bay

Area

Local
Investment Plan.

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.

2 9.

CONSENT CALENDAR

a.

Motion to Waive Reading of All Ordinances.
b.

Approve the City Council March 9, 2026 Special Meeting Minutes. c.

Approve the City Council March 16, 2026 Special Meeting Minutes. d.

Approve the City Council March 23, 2026 Special Meeting Minutes. e.

Declare

a

Summer

Recess

and

Authorize

Cancellation

of

the

Two

July

City
Council Meetings.
f.

Accept

and

Authorize

the

Filing

of

the

Housing

Successor

Agency

Annual

Report
for Fiscal Year 2024-25.
g.

Deny Claim of Joshua Lim.
h.

Adopt

a

Resolution

Appropriating

$86,000

from

the

Park-in-Lieu

Fund

27 Unassigned

Fund

Balance

to

the

Conceptual

Design

of

a

Community

and

Aquatic
Center

Project

(C2331)

and

Authorizing

the

Execution

of

an

Amendment

in

the
Amount

of

$86,000

to

the

Professional

Services

Agreement

with

Good

City
Company

for

a

T otal

Contract

Amount

Not

to

Exceed

$160,999

for

Park

Master
Plan and Community and Aquatic Center Design Project Consulting Services. i.

Adopt

a

Resolution

Consenting

to

the

Change

in

Ownership

of

Lessee

Pertaining
to the Ground Lease for City-Owned Property at 525 Skyway Road. j.

Adopt

a

Resolution

Authorizing

the

City

Manager

to

Assign

T emporary

Assignment
Pay for the Vacant Management Analyst Position in Public Works.

10. PUBLIC HEARING

a.

Consideration

of

Adopting

a

Resolution

Authorizing

Adjustments

to

the

Cost

of
Services

Schedule

(“User

Fees”),

Park

Facility

Development

Fee,

Sewer

Capacity
Charge,

Childcare

Development

Impact

Fee

and

Traffic

Impact

Fee

for

Fiscal

Year
2026-27, and Adding Four New Fees to the User Fee Schedule.

11. STUDY SESSION

a.

Receive

a

Report

Regarding

Parking

of

Recreational

Vehicles,

Campers,

Trailers,
or

Boat

Trailers

on

City

Streets,

Provide

Direction

on

a

Preferred

Policy

Approach,
and

Direct

Staff

to

Return

with

Ordinance

Amendments

and/or

an

Implementation
Plan for the City Council’s Consideration.

3 12.

NEW BUSINESS

a.

Consideration

of

Adopting

a

Resolution

Approving

a

Memorandum

of
Understanding

(MOU)

with

the

City

of

Belmont

to

Improve

the

Emergency

Access
Gate Between Crestview Drive (San Carlos) and Hallmark Drive (Belmont). b.

Consideration

of

Adopting

a

Resolution

Approving

the

City

Manager

Employment
Agreement.

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.

a.

Consideration

of

Agendizing

an

Item

to

Discuss

the

Walnut

Street

Development
Proposed by MidPen Housing and San Mateo County.

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)

802-4222

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.

4 San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Special Meeting
Collaboration Room, City Hall
600 Elm Street, San Carlos, CA 94070
March 9, 2026 6:00 PM

MINUTES

ROLL CALL

City Council Present: Pranita Venkatesh, Mayor
Adam Rak, Vice Mayor
Sara McDowell, Councilmember
John Dugan, Councilmember
Neil Layton, Councilmember

Staff Present: Nil Blackburn, Interim City Manager
Crystal Mui, City Clerk
Amy Newby, Parks and Recreation Director
Gregory Rubens, City Attorney
Al Savay, Community Development Director

1. CALL TO ORDER

Mayor Venkatesh called the meeting to order at 6:00 p.m.

2. PUBLIC COMMENT

None.

3. CLOSED SESSION

a. Conference with Real Property Negotiators Blackburn, Newby, Rubens, Savay, and Simon to Discuss Price and Terms of Payment Concerning the Real Property Located at 535 Old County Road, San Carlos, CA 94070 (APN: 046-112-530). (Government Code Section 54956.8).

b. Conference with Legal Counsel Anticipated Litigation (Closed Session Pursuant to Govt. Code Section 54956.9(D)(2)-(5) - 1 Case

c. Closed Session Regarding the Appointment of a Public Employee Pursuant to Paragraph (1) of Subdivision (b) of Government Code Section 54957 for City Manager.

d. Conference with Labor Negotiators Black and Mason - (Closed Session Pursuant to Govt. Code Section 54957.6) - City Manager.

4. REPORT FROM CLOSED SESSION

None.

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5. ADJOURNMENT
The meeting adjourned at 7:15 p.m.

Crystal Mui
City Clerk

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San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Special Meeting
Collaboration Room, City Hall
600 Elm Street, San Carlos, CA 94070
March 16, 2026 5:45 PM

MINUTES

ROLL CALL

City Council Present: Pranita Venkatesh, Mayor
Adam Rak, Vice Mayor
Sara McDowell, Councilmember
Neil Layton, Councilmember
John Dugan, Councilmember

Staff Present: Crystal Mui, City Clerk
Gregory Rubens, City Attorney
Rebecca Mendenhall, Administrative Services Director

1. CALL TO ORDER

Mayor Venkatesh called the meeting to order at 5:45 p.m.

2. PUBLIC COMMENT

Gail Ghose, resident, noted that the senior group that she is part of has concerns regarding the Harrington Park project and requested information on the approved design and associated costs.

Council directed staff to follow-up with Ms. Ghose.

3. CLOSED SESSION

a. Conference with Labor Negotiators Black and Mason - (Closed Session Pursuant to Govt. Code Section 54957.6) - City Manager.

4. REPORT FROM CLOSED SESSION

None.

5. ADJOURNMENT

The meeting adjourned at 7:15 p.m.

Crystal Mui
City Clerk

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San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Special Meeting
Collaboration Room, City Hall
600 Elm Street, San Carlos, CA 94070
March 23, 2026 5:30 PM

MINUTES

ROLL CALL

City Council Present: Pranita Venkatesh, Mayor
Adam Rak, Vice Mayor
John Dugan, Councilmember
Neil Layton, Councilmember
Sara McDowell, Councilmember

Staff Present: Nil Blackburn, Interim City Manager
Rebecca Mendenhall, Administrative Services Director
Crystal Mui, City Clerk
Angie Rodriguez, Human Resources Manager
Gregory Rubens, City Attorney

1. CALL TO ORDER

Mayor Venkatesh called the meeting to order at 5:30 p.m.

2. PUBLIC COMMENT

None.

3. CLOSED SESSION

a. Conference with Labor Negotiators Blackburn, Cue, Mendenhall, Rodriguez and Rubens (Closed Session Pursuant to Government Code Section 54957.6) – Management Group, Confidential Group, Local 829 American Federation of State, County and Municipal Employees (“AFSCME”), and Teamsters Unit.

b. Public Employee Performance Evaluation - Closed Session Pursuant to Government Code Section 54957(B)(1) - City Attorney.

c. Conference with Labor Negotiator Blackburn– (Closed Session Pursuant to Govt. Code Section 54957.6) – City Attorney.

4. REPORT FROM CLOSED SESSION

None.

5. ADJOURNMENT

The meeting adjourned at 7:00 p.m.

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Crystal Mui
City Clerk

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Declare a Summer Recess and Authorize Cancellation of the Two July City Council Meetings.

RECOMMENDATION:

Staff recommend that the City Council declare a summer recess and authorize the cancellation of its July 13 and 27, 2026 regular meetings.

FISCAL IMPLICATIONS:

There are no fiscal implications, and no additional funding is needed.

The City is billed at a flat monthly rate for broadcasting City Council and Planning & Transportation Commission meetings, so canceling the July meetings would not yield any cost savings.

BACKGROUND:

Since 2012, the City Council has annually declared a summer recess, canceling two of its regular meetings during the summer months.

In 2023, the City Council requested that Council and all Commissions observe a summer recess in July to better align with the San Carlos School District’s summer schedule.

In preparation for this summer’s proposed cancellations, staff have been and will continue to schedule agenda items accordingly and provide timely public notification of any cancellations.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Declare a summer recess and authorize the cancellation of the City Council’s July 13 and 27, 2026 regular meetings; or

2. Do not cancel the City Council’s July 13, 2026 regular meeting and authorize the City Manager to cancel the July 27, 2026 regular meeting if it is not needed; or

3. Do not cancel the City Council’s July 13, 2026 regular meeting nor authorize the City Manager to cancel the July 27, 2026 regular meeting if it is not needed; or

4. Provide staff with alternative direction.

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Respectfully submitted by:

Crystal Mui, City Clerk
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager

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SUCCESSOR AGENCY TO RDA

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Accept and Authorize the Filing of the Housing Successor Agency Annual Report for Fiscal Year 2024-25.

RECOMMENDATION:

Staff recommend that the City Council accept and authorize the filing of the Housing Successor Agency Annual Report for fiscal year (FY) 2024-25.

FISCAL IMPLICATIONS:

There are no fiscal implications, and no additional funding is needed.

BACKGROUND:

The City of San Carlos is the Housing Successor Agency to the former San Carlos Redevelopment Agency (“Redevelopment Agency”), which was dissolved on February 1, 2012.

Each Housing successor agency is required to prepare an annual report on how it is meeting requirements imposed by Health and Safety Code Section 34176.1.

The annual report is required to contain the following: (1) a summary of housing successor duties; (2) the balance of the Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”); (3) an inventory of properties held in the Housing Asset Fund; and (4) reports on the City’s performance thus far in meeting the income and age proportionality requirements of Health and Safety Code Section 34176.1.

ANALYSIS:

The City is meeting all requirements imposed by Health and Safety Code Section 34176.1. The City’s progress on major requirements is summarized below.

Housing Asset Fund Activity
As of June 30, 2025, the Housing Asset Fund had a fund balance of approximately $9 million, which includes a deficit cash balance of $159,851. This deficit cash balance was offset by the City’s Housing In-Lieu Fund, which has an ending balance of $995,646. The remaining fund balance is comprised of notes receivable and land value.

The Housing Successor received $37,747 in revenues in FY 2024-25, comprised of deposits of interest income and rents.

The City spent $228,428 in Housing Asset Funds on administrative expenses in FY 2024-25, which included professional services, property management fees, and building maintenance.

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No funds were spent on rapid rehousing in FY 2024-25.

The current five-year compliance period began on July 1, 2024 and extends through June 30, 2029. As of June 30, 2025, the Housing Successor has not expended Housing Asset Funds on housing development activities during the current compliance period.

Real Property Assets and Loans Receivables
The City, as housing successor, owns four properties that had a book value of $12,353,542 as of June 30, 2025. The 633 Elm Street Unit #305 was transferred from the former Agency, while two properties, 633 Elm Street Unit #405 and 1001 Laurel Street Unit #207, are Below Market Rate units purchased by the Housing Successor in FY 2016-17 and FY 2017-18. The 817 Walnut real property asset includes the progressive value of donated capital assets.

In FY 2019-20, the City entered into a disposition, development, and loan agreement (DDLA) with a developer to ground lease the 817 Walnut property to allow for new affordable development. In addition, the City loaned funds to the developer over several years to complete the development.

No additional principal was added to the loan in FY 2024-25, however, additional accrued interest amounted to $327,902. With this, the total loans receivable held by the City increased to a total of $10,425,586.

FY 2024-25, the Successor Agency forgave the $100,000 zero-interest loan originally issued in 1995 for the acquisition of 1244 Cherry Street. The loan forgiveness supported redevelopment of the site as part of the Cherry Street Commons affordable housing project.

Expenditure Proportionality Requirements
Expenditures from the Housing Asset Fund must meet specific proportionality requirements by income level and age. The City is meeting all requirements as detailed below:
Administrative and monitoring expenses are capped at $200,000, adjusted annually for inflation based on the Consumer Price Index, or 5% of the statutory value of real property and loans and grants receivable (“Portfolio”), whichever is greater. oAlthough HCD did not publish the administrative limit at the time of this report, if the same methodology and index is applied from the previous year, the $200,000 limit adjusted for inflation in FY 2024-25 is $270,700. The Housing Successor’s FY 2024-25 portfolio value was $22,779,128, 5% of which is $1,138,956. This greater value is the Housing Successor's FY 2024-25 annual limit for administrative expenditures, which is well above the annual expenditures of $228,428. Up to $500,000 may be spent annually on rapid rehousing solutions for homelessness.

The Housing Successor did not spend any funds on this category in FY 2024-25. If Housing Asset Funds are spent on housing projects and programs, within each five-year compliance period:
oAt least 30% must be spent on extremely low-income households (earning up to 30% of the Area Median Income);
oNo more than 20% may be spent on low-income households (earning 60-80% of the Area Median Income); and

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oNo monies may be spent on moderate or above moderate-income households (earning more than 80% of the Area Median Income).
The current five-year compliance period began on July 1, 2024 and extends through June 30, 2029. As of June 30, 2025, the Housing Successor has not expended Housing Asset Funds on housing development activities during the current compliance period. No more than 50% of rental housing units assisted by the City or the former Redevelopment Agency in the prior 10 years may be restricted to seniors. None of the extremely low-income or very low-income units assisted by the Housing Successor at 817 Walnut are restricted to seniors.

Excess Surplus
The Housing Asset Fund is subject to excess surplus requirements, which are designed to ensure that Housing Asset Funds are being spent and not underutilized. Excess surplus is defined as “an unencumbered amount in the account that exceeds the greater of one million dollars, or the aggregate amount deposited into the account during the housing successor’s preceding four fiscal years, whichever is greater.” San Carlos had no excess surplus for FY 2024-25.

If the City has an excess surplus in the future, it must be spent or encumbered within three fiscal years. If the City fails to comply, the City would need to transfer any remaining excess surplus to HCD within 90 days after the end of the third fiscal year.

Conclusion
The City is meeting all requirements imposed by Senate Bill 341 and related legislation. It will continue to maintain assets transferred from the former Redevelopment Agency as required by law.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Receive and authorize the filing of the Housing Successor Agency Report for FY 2024- 25; or

2. Do not receive and authorize the filing of the Housing Successor Agency Report for FY 2024-25; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Al Savay, Community Development Director
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Housing Successor Agency Annual Report for Fiscal Year 2024-25

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HOUSING SUCCESSOR ANNUAL REPORT
City of San Carlos
Fiscal Year 2024-25

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TABLE OF CONTENTS INTRODUCTION ............................................................................................................................. 1 THE CITY AS HOUSING SUCCESSOR ............................................................................................ 1 SCOPE OF THIS HOUSING SUCCESSOR ANNUAL REPORT .......................................................... 1 ASSETS TRANSFERRED TO HOUSING SUCCESSOR .................................................................... 1 BACKGROUND ............................................................................................................................... 2 LEGAL REQUIREMENTS PERTAINING TO HOUSING SUCCESSORS .............................................. 2 PERMITTED USES OF HOUSING ASSET FUNDS ............................................................................ 3 LIMITS ON THE ACCUMULATION OF HOUSING FUNDS (EXCESS SURPLUS) ................................ 5 HOUSING ASSET FUND ACTIVITY ................................................................................................. 6 EXPENDITURES ............................................................................................................................. 6 SENIOR HOUSING LIMIT COMPLIANCE ........................................................................................ 7 DEPOSITS AND FUND BALANCE .................................................................................................... 7 EXCESS SURPLUS ......................................................................................................................... 8 TRANSFERS TO OTHER HOUSING SUCCESSORS ......................................................................... 9 HOUSING SUCCESSOR PORTFOLIO .............................................................................................. 9 PROPERTY DISPOSITION STATUS ............................................................................................... 11 HOMEOWNERSHIP UNIT INVENTORY ........................................................................................... 11 APPENDIX 1 – HOUSING ASSET TRANSFER FORM ...................................................................... 13 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS .................................. 14 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS ..................................... 15

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San Carlos Housing Successor Annual Report 2024-25 1
INTRODUCTION This Housing Successor Agency Annual Report (“Annual Report”) presents information on Fiscal Year (“FY”) 2024-25 expenditures and activities as required by Health and Safety Code (“HSC”) Section 34176.1(f), including but not limited to a housing successor’s compliance with certain expenditure activities over the year as well as a five-year planning period. This Annual Report is required of any housing successor to a former redevelopment agency. THE CITY AS HOUSING SUCCESSOR The City of San Carlos (“City”) is the Housing Successor Agency (“Housing Successor”) to the former San Carlos Redevelopment Agency (“Agency”). The Housing Successor is responsible for maintaining housing assets transferred from the former Agency. Its main goal is to provide affordable housing for City of San Carlos (“City”) residents. The Annual Report is an addendum to the City’s Housing Element Annual Progress Report. Both are due to the California Department of Housing and Community Development (“HCD”) by April 1 annually and must be accompanied by an independent financial audit. The City’s audited financial statements will be posted on the City website when available. SCOPE OF THIS HOUSING SUCCESSOR ANNUAL REPORT This Annual Report is limited to the City’s activities as it relates to its role as a housing successor. This may include, but is not limited to, financial activities, property disposition, loan administration, monitoring of covenants, and affordable housing development. This Annual Report describes compliance with various annual, five-year, and ten-year housing expenditure and production requirements. FY 2024-25 is the first year of the current five-year compliance period for income proportionality, which spans July 1, 2024 and ends June 30, 2029. ASSETS TRANSFERRED TO HOUSING SUCCESSOR Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the Agency were transferred to the Housing Successor. The Housing Successor prepared and submitted to the California Department of Finance (“DOF”) an inventory of housing assets to be transferred from the former Agency. The inventory was enumerated on a Housing Asset Transfer Form (“HAT”) which included:

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San Carlos Housing Successor Annual Report 2024-25 2

1. Real Properties; 2. Personal Property; 3. Loans Receivables; and 4. Rents/Operations. All items on the HAT were reviewed and approved by DOF on September 5, 2012. Once approved by DOF and as directed by law, the Housing Successor transferred these assets to the Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”, Fund 31). The Housing Successor inherited four real properties and other assets from the former Agency; over time, these assets will be disposed or retired in accordance with state law and any applicable agreements. A copy of the HAT is provided as Appendix 1.

BACKGROUND This section summarizes the legal requirements for use of housing successor assets that are addressed in this Annual Report. LEGAL REQUIREMENTS PERTAINING TO HOUSING SUCCESSORS In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1: 1. Expenditures and housing production are subject to income and age targets. 2. Housing successors may not accumulate an “excess surplus,” or a high cash balance based on certain thresholds. 3. Properties must be developed with affordable housing or sold within five to ten years of the California Department of Finance approving the Housing Asset Transfer Form. Appendix 2 provides a detailed summary of the reporting requirements that are addressed in this Annual Report.

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San Carlos Housing Successor Annual Report 2024-25 3
PERMITTED USES OF HOUSING ASSET FUNDS Pursuant to HSC Section 34176.1, Housing Asset Funds may be spent on: • Administrative costs for operation of the housing successor agency. The law allows a housing successor to spend the greater of: o $200,000 per year adjusted for inflation, or o 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater. At the time of this report, HCD has not published the administrative limit for FY 2024-25. Although HCD has not yet published the update for FY 2024-25, applying the same methodology and index HCD has previously used would yield a limit adjusted for inflation for FY 2024-25 of $270,700. The Housing Successor’s FY 2024-25 Portfolio value was $22,779,128, 5% of which is $1,138,956. Therefore, the FY 2024-25 administrative cost limit for the San Carlos Housing Successor is the higher figure of $1,138,956. • Homeless prevention and rapid rehousing services up to $500,000 per year if the former Agency did not have any outstanding housing inclusionary or replacement housing production requirements. The Housing Successor qualifies because the former Agency had a surplus of affordable housing production units upon dissolution. • Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets. Five-Year Income Proportionality: Any Housing Asset Funds may be spent on development of affordable housing projects affordable to low-, very low-, and extremely low-income households. “Development” is defined in HSC Section 33413 as new construction, acquisition, rehabilitation, or the preservation of affordable housing developments. Over each successive five-year compliance period beginning in 2014, at least 30 percent of such development expenditures must assist extremely low-income households (30% AMI), while no more than 20 percent may assist low-income households (between 60-80% AMI).

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San Carlos Housing Successor Annual Report 2024-25 4
The balance of the funds may be used on very low-income households (defined as households earning between 30% and 60% of AMI). The Housing Successor was compliant with Housing Asset Fund income proportionality expenditure requirements during the first five-year compliance period from January 1, 2014, through June 30, 2019. The current (second) five-year compliance period is July 1, 2019 to June 30, 2024. Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period. Should a housing successor not spend at least 30% of its development expenditures for extremely low-income households, or exceeds the amount spent on low-income households, future expenditures are subject to greater restriction until these proportionality targets are met. Specifically, if a housing successor is unable to spend at least 30% of its development expenditures on extremely low-income units, it is required to increase this spending to 50% until compliant with the 30% threshold; a housing successor that spends more than 20% of its development expenditures on low-income units cannot spend any further funds on low-income developments until it is at or below the 20% threshold. As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of this Annual Report. Ten-Year Age Proportionality on Units Assisted: If more than 50% of the total aggregate number of rental units produced by the City, Housing Successor, or former Agency during the past 10 years are restricted to seniors, the Housing Successor may not spend more Housing Asset Funds on senior rental housing. It is important to stress that Housing Successor expenditure and production requirements are measured on different timeframes: • One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance evaluated annually and resets every year.

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San Carlos Housing Successor Annual Report 2024-25 5
• Five-Year Limit: Expenditures by Income Level. Compliance evaluated over a fixed five-year period set by law, the current period being July 1, 2019 to June 30, 2024. • Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance evaluated based on a rolling ten-year period that is different every year, the current period being FY 2014-15 to 2024-25. Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category. LIMITS ON THE ACCUMULATION OF HOUSING FUNDS (EXCESS SURPLUS) State law limits how much cash a housing successor may retain and, if it fails to commit and spend these dollars in a reasonable timeframe, ultimately penalizes the housing successor by requiring unspent funds to be transferred to HCD for use on State housing programs. HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Funds based on the greater of the following: • $1,000,000, or • The total amount of deposits made into the Housing Asset Fund over the preceding four years. Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program. The concept of excess surpluses carries over from the era prior to dissolution of Redevelopment Law, when redevelopment agencies often were receiving substantial amounts of deposits from the mandatory housing set-aside of 20% of tax increment revenues. Today, excess surpluses are generally less common because housing successors no longer receive deposits comparable to the pre-dissolution period.

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San Carlos Housing Successor Annual Report 2024-25 6
As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.

HOUSING ASSET FUND ACTIVITY This Annual Report describes Housing Successor related activity in the Housing Asset Fund based on audited numbers by an independent auditor. The Housing Successor entered FY 2024-25 with a negative Housing Asset Fund cash balance and expended approximately $228,428 during the year on administration costs. EXPENDITURES The Housing Successor complied with all applicable Housing Asset Fund expenditure limits in FY 2024-25. No housing development expenditures were made during FY 2024-25, the first year of the current five-year compliance period. Accordingly, income targeting thresholds were not triggered, as shown in Table 1 below. Table 1: Housing Asset Fund Expenditures • Administrative costs of $228,428 did not exceed the annual limit for FY 2024-25. The annual limit for administration expenditures in FY 2024-25 is $1,138,956, which represents 5% of the City’s current statutory value of real properties and loan receivables. • No homeless prevention or rapid rehousing expenses were made in FY 2024-25.

Fiscal Year 2024-25 Housing Asset Fund Expenditures
San Carlos Housing Successor
Admin/ Rapid Ext. Low Other Ext. LowVery Low Low
Compliance Period ExpendituresMonitoringRehousingRental UnitsUnits ≤30% AMI>30% <60%60-80% AMI Total Expenditures $228,428 $0 $0 $0 $0 $0 $0
SB 341 Limitation2 $1,138,956$500,000 >30% <70% >30% N/A <20% Compliant (Yes/No) Yes Yes N/A N/A N/A N/A N/A
1 The Admin/Monitoring and Rapid Rehousing amounts are annual Limits. Expenditures by income level are five-year limits2 The Successor has complied with the Annual Limits each year of the compliance period Source: Low and Moderate Income Housing Fund Trial Balance Summary by Fund (6/30/25) and City Response to Data Request Five-Year Period (2024-25 through 2028-29)Annual Limits1

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San Carlos Housing Successor Annual Report 2024-25 7
• The current five-year compliance period began on July 1, 2024 and extends through June 30, 2029. As of June 30, 2025, the Housing Successor has not expended Housing Asset Funds on housing development activities during the current compliance period. The Housing Successor will continue to monitor expenditures to ensure compliance with all statutory income targeting requirements over the course of the 2024-2029 compliance period. Failure to comply with the extremely low-income requirement in any five-year compliance period means the Housing Successor will have to ensure that 50 percent of remaining funds be spent on extremely low-income rental units. Exceeding the expenditure limit for low-income households earning between 60-80% AMI in any five-year reporting period means the Housing Successor will not be able to expend any funds on these income categories until in compliance. SENIOR HOUSING LIMIT COMPLIANCE The Housing Successor complies with the limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. The Housing Successor, City, and former Agency assisted the 817 Walnut street affordable housing development in the prior ten years. The extremely low-income or very low-income units assisted by the Housing Successor at 817 Walnut were not restricted to seniors as shown in Table 2. Table 2: Deed Restricted Units Assisted in last 10 Years, FY 2024-25 DEPOSITS AND FUND BALANCE The Housing Successor deposited $37,747 into the Housing Asset Fund during FY 2024-25. Revenues were from interest income and rents as shown in Table 3.

Property1,2 Senior Units % Non-Senior
Units % Total Units
817 Walnut Street 0 0% 24 100% 24
Total 0 0% 24 100% 24
Total Deed-Restricted Senior Units: 0%
1 This list only includes units identified as senior-restricted living in the Housing Element.2 This list only includes units that had a ground lease executed within the last 10 years.

Source: City of San Carlos

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San Carlos Housing Successor Annual Report 2024-25 8
Table 3: Housing Asset Fund Deposits, FY 2024-25
The Housing Asset Fund balance as of June 30, 2024, was approximately $9 million as summarized in Table 4. Of this amount, the cash balance was in a deficit of $159,851. Table 4: Housing Asset Fund – Ending Balance as of June 30, 2025 EXCESS SURPLUS The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered cash balance that exceeds the greater of either $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. As shown in Table 5, the Housing Successor did not have an excess surplus at the end of FY 2024-25.

Balance Type Amount
Investment Income -$
Interest Income 2,119$
Rents 35,628$
Miscellaneous -$
Total 37,747$
Source: City of San Carlos
Balance Type Amount
Cash (159,851)$
Notes Receivable 1,900,139
Loans Receivable 8,525,447
Accounts Receivable 364,186
Accounts Payable -
Miscellaneous -
Land Held for Resale1 972,829
Deferred Revenue (2,594,727)
Deposits due from Tenants (1,529)
Ending Balance 9,006,494$
Source: City of San Carlos, Fund 31 accounting records
1Excludes the value of 817 Walnut reported in Table 6 that is accounted for outside of Fund 31.

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San Carlos Housing Successor Annual Report 2024-25 9
Table 5: Excess Surplus Calculation FY 2024-25
TRANSFERS TO OTHER HOUSING SUCCESSORS There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1. HOUSING SUCCESSOR PORTFOLIO The Housing Successor Portfolio includes four properties and four loans receivable transferred from the former Agency. The Portfolio had a value of $22,779,128 as of June 30, 2025, as detailed in Table 6.

Step 1: Determine Unencumbered Cash Balance From Financials FY 24-25 Beginning Cash Balance (74,308)$
Less: Encumbered Funds
Unencumbered Amount (74,308)$
$1 Million, or 1,000,000$
Last 4 years' deposits 355,238$
2023-24 38,102$
2022-23 53,130$
2021-22 29,843$
2020-21 234,163$
Result: Larger Number 1,000,000$
Step 3: Excess Surplus is Amount Step 1 Exceeds Step 2, if Any (1) Unencumbered Amount (74,308)$
(2) Less: Larger Number From Step 2 1,000,000$
Excess Surplus None
Source: City of San Carlos
Step 2: Determine Greater of $1M or Last 4 Deposits

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San Carlos Housing Successor Annual Report 2024-25 10
Table 6: Portfolio Value of Real Properties and Loans Receivable FY 2024-25 The City, as housing successor, owns four properties that had a book value of $12,353,542 as of June 30, 2025. The 633 Elm Street Unit #305 was transferred from the former Agency, while two properties, 633 Elm Street Unit #405 and 1001 Laurel Street Unit #207, are Below Market Rate units purchased by the Housing Successor in FY 2016-17 and FY 2017-18. The 817 Walnut real property asset includes the progressive value of donated capital assets. In FY 2019-20, the City entered into a DDLA with a developer to ground lease the 817 Walnut property to allow for development of new affordable housing. The City treats the value of improvements as a real property asset, which includes accrued deprecation. In addition, the City loaned funds to the developer over several years to complete the development. No additional principal was added to the loan in FY 2024-25, however, additional accrued interest amounted to $327,902. The total loans receivable held by the City in FY 2024-25 was $10,425,586. In FY 2024-25, the Successor Agency forgave the $100,000 zero-interest loan originally issued in 1995 for the acquisition of 1244 Cherry Street. The loan forgiveness supported redevelopment of the site as part of the Cherry Street Commons affordable housing project.

Asset Amount
Real Properties
633 Elm Street Unit #305 354,999$
633 Elm Street Unit #405 377,987
1001 Laurel Street #207 239,843
817 Walnut Street 11,380,713
Subtotal 12,353,542$
Loans Receivable
Laureola Oaks 1,606,177$
1244 Cherry Street -
717 Cedar 293,962
817 Walnut Street 8,525,447
Subtotal 10,425,586$
Total Portfolio Value 22,779,128$
Source: City of San Carlos, Fund 31 and Fund 90 accounting records

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San Carlos Housing Successor Annual Report 2024-25 11
PROPERTY DISPOSITION STATUS HSC Section 34176(e) requires that all real properties acquired by the Agency prior to February 1, 2012 and transferred to the Housing Successor be developed for affordable housing purposes or disposed of within five years from the date DOF approved the HAT, or September 5, 2017. The City has met this requirement. The Agency transferred four real properties to the City on the HAT: • 817 Walnut Street: The property was formally transferred to the City via a grant deed dated January 5, 2015. In FY 2019-20 the City entered into a DDLA with Walnut Street L.P. to redevelop the site from a 6-unit to a 24-unit apartment complex, of which 6 units are affordable to extremely low-income households. • 633 Elm Street, Unit 305: This condominium unit continues to be operated as affordable housing and is leased to a low-income tenant. • 657 Walnut Street: This 7-unit multi-family apartment complex was transferred from the Housing Successor to a developer in January 2017 for the Wheeler Plaza development project. The sales proceeds were deposited to the Housing Asset Fund. • 1245-1265 San Carlos Avenue: This is a commercial property that was included on the HAT in error. It was subsequently included in the Successor Agency’s Long Range Property Management Plan and sold pursuant to a compensation agreement approved by DOF and affected taxing entities.

HOMEOWNERSHIP UNIT INVENTORY Table 7 presents an inventory of homeownership units assisted by the Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies

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San Carlos Housing Successor Annual Report 2024-25 12
Table 7: Homeownership Unit Inventory

Address # Units
Covenant
Recorded
Covenant
Expires
3327 Brittan #7 1 1/13/07 1/13/52
641 Cedar Street #101 1 8/5/06 8/5/51
641 Cedar Street #202 1 6/14/06 6/14/51
633 Elm #106 1 3/20/02
633 Elm #107 1 2/12/00
633 Elm #206 1
633 Elm #207 1 1/21/00
633 Elm #215 1 4/27/00
633 Elm #216 1 1/14/00
633 Elm #305 1
633 Elm #306 1 1/21/00
633 Elm #307 1 4/2/05
633 Elm #316 1 1/28/00
633 Elm #405 1 12/21/02
618 Walnut #303 1 11/18/04
618 Walnut #305 1 8/17/01
#102 1 7/2/19 7/2/64
#105 1 11/15/18 11/15/63
#106 1 8/18/06 8/30/51
#107 1 9/21/06 9/29/51
#109 1 1/2/07 1/12/52
#203 1 6/20/06 6/29/51
#204 1 6/20/06 6/29/51
#205 1 6/20/06 6/29/51
#207 1 11/16/05 12/3/50
#209 1 8/2/06 8/22/51
#213 1 11/27/07 1/12/53
#218 1 11/27/07 12/12/52
#222 1 3/29/07 4/13/52
#225 1 1/8/08 1/22/53
#322 1 6/20/06 6/28/51
#325 1 6/20/06 6/29/51
#203 1 9/11/18 9/11/63
#304 1 8/10/18 8/10/63
#306 1 8/13/18 8/13/63
Total Restricted Units 35
Source: City of San Carlos
777 Walnut Street
In perpetuity w/
Resale Purchase
Option
Pacific Hacienda
1001 Laurel Street

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San Carlos Housing Successor Annual Report 2024-25 13
APPENDIX 1 – HOUSING ASSET TRANSFER FORM The Housing Asset Transfer Form is attached as a separate document.

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San Carlos Housing Successor Annual Report 2024-25 14
APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT REQUIREMENTS Health and Safety Code Section 34176.1(f) Housing Asset Fund Revenues & Expenditures Total amount deposited in the Housing Asset Fund for the fiscal year. Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”). Statement of balance at the close of the fiscal year. Description of Expenditures for the fiscal year, broken out as follows: • Homeless prevention and rapid rehousing • Administrative and monitoring • Housing development expenses by income level assisted Description of any transfers to another housing successor for a joint project. Other Assets and Active Projects Description of any project(s) funded through the ROPS. Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing). Other “portfolio” balances, including: • Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund • Value of loans and grants receivable Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low and Moderate Income Housing Fund. Obligations & Proportionality Description of any outstanding production obligations of the former Agency that were inherited by the Housing Authority. Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle. Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Authority, or the City within the past ten years compared to the total number of units assisted by any of those three agencies. Amount of any excess surplus, and, if any, the plan for eliminating it.

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San Carlos Housing Successor Annual Report 2024-25 15
APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS Housing Asset Fund Expenditure Requirements Health and Safety Code Section 34176.1 Expense Category Limits Allowable Uses Administration and Compliance Monitoring $ 1,138,956 maximum for FY 2024-25 (limit varies each year) Administrative activities such as: • Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration • Compliance monitoring to ensure compliance with affordable housing and loan agreements • Property maintenance at Housing Successor-owned properties Capped at $200,000 adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater. Homeless Prevention and Rapid Rehousing Solutions $500,000 maximum per fiscal year Services for individuals and families who are homeless or would be homeless but for this assistance, including: • Contributions toward the construction of local or regional homeless shelters • Housing relocation and stabilization services including housing search, mediation, or outreach to property owners • Short-term or medium-term rental assistance • Security or utility deposits • Utility payments • Moving cost assistance • Credit repair • Case management • Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless. Affordable Housing Development No spending limit, but must comply with income and age targets “Development” includes: • New construction • Acquisition and rehabilitation • Substantial rehabilitation • Acquisition of long-term affordability covenants on multifamily units • Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years

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San Carlos Housing Successor Annual Report 2024-25 16
Housing Asset Fund Expenditure Requirements Health and Safety Code Section 34176.1 Expense Category Limits Allowable Uses Income Targets Every five years (currently FYE 2025-2029), Housing Asset Funds must meet income targets: • At least 30% on extremely low income rental households (up to 30% AMI or “Area Median Income”) • No more than 20% on low income households (60-80% AMI) Moderate and above moderate income households may not be assisted (above 80% AMI). Failure to comply with the extremely low income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance. Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income categories until in compliance. Age Targets For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors. If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Deny Claim of Joshua Lim.

RECOMMENDATION:

Staff recommend that the City Council deny the claim of Joshua Lim as recommended by the City’s claim administrators at Carl Warren.

FISCAL IMPLICATIONS:

There are no fiscal implications, and no additional funding is needed.

BACKGROUND:

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

Staff recommend 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.

Claim 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 Assistance Network Joint Powers Authority (PLAN JPA) to provide claims administration services to 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 (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:

Claimant filed a claim against the City for property damages. Claimant alleges that on March 8, 2026, Claimant was driving on Brittan Avene when he drove over a pothole at the intersection of Brittan Avenue and El Camino Real. Claimant reports that one tire was damaged as a result and is seeking $175 in reimbursement.

This does not appear to be a case of liability against the City as the City did not have prior notice of the pothole. Government Code section 835 provides immunities when there was no known prior notice to the City of a “hazardous condition”. For that reason, Carl Warren recommends formal rejection of Joshua Lim‘s claim. Public Works staff patched the pothole promptly following notification.

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 Joshua Lim; or

2. Do not deny claim of Joshua Lim; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Lim, J. Claim Form

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Adopt a Resolution Appropriating $86,000 from the Park-in-Lieu Fund 27 Unassigned Fund Balance to the Conceptual Design of a Community and Aquatic Center Project (C2331) and Authorizing the Execution of an Amendment in the Amount of $86,000 to the Professional Services Agreement with Good City Company for a Total Contract Amount Not to Exceed $160,999 for Park Master Plan and Community and Aquatic Center Design Project Consulting Services.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution appropriating $86,000 from the Park- in-Lieu Fund 27 Unassigned Fund Balance to the Conceptual Design of a Community and Aquatic Center Project (C2331) and authorizing the execution of an amendment in the amount of $86,000 to the professional services agreement with Good City Company for a total contract amount not to exceed $160,999 for the Parks Master Plan and Community and Aquatic Center Design Projects consulting services.

FISCAL IMPLICATIONS:

Funding for the Parks Master Plan and conceptual design of a Community and Aquatic Center in the amount of $200,000 was appropriated in the adopted fiscal year (FY) 2023-25 Capital Improvement Program budget. An additional appropriation of $86,000 is necessary for project management consulting services for the Parks Master Plan and Community and Aquatic Center Design Projects.

BACKGROUND:

The Parks and Recreation Department initiated the Parks Master Plan and Conceptual Design of a Community and Aquatic Center projects in June 2024 with consulting firm Gates + Associates, and project management support from Good City Company. The process has included community engagement, inventory and analysis, needs assessment, study sessions with the City Council and City commissions, development of the Draft Parks Master Plan, updates to the General Plan Parks and Recreation Element, as well as California Environmental Quality Act (CEQA) review.

Community outreach and engagement was very widespread and included three separate rounds of community outreach which included in-person community meetings, online surveys, stakeholder focus groups, pop-up events, Parks, Recreation and Culture and Planning Commission presentations, and City Council study sessions.

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The City Council, at its October 27, 2025 meeting, provided input on park site and facility recommendations in the Parks Master Plan and requested the selection of a site for a community and aquatic center continue on a path separate from the Parks Master Plan process.

ANALYSIS:

The City executed a contract with Good City Company on April 1, 2024, for project management services for the Parks Master Plan which included conceptual designs of a community and aquatic center. The process has included more public outreach, community engagement, and public meetings than initially anticipated and therefore additional services are needed.

The scope of services with Good City Company includes project management; bi-weekly team meetings; participation in all project-related community meetings; oversight of project and consultant quality control; and provision of administrative support, including the preparation of staff reports and presentations. Approval of the contract amendment will ensure that planning projects proceed without delay.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution appropriating $86,000 from the Park-in-Lieu Fund 27 Unassigned Fund Balance to the Conceptual Design of a Community and Aquatic Center Project (C2331) and authorizing the execution of an amendment in the amount of $86,000 to the professional services agreement with Good City Company for a total contract amount not to exceed $160,999 for the Parks Master Plan and Community and Aquatic Center Design project consulting services; or

2. Do not adopt a Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Amy Newby, Parks & Recreation Director
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Resolution

2. Good City Company Proposal

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RESOLUTION NO. 2026 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROPRIATING $86,000 FROM THE PARK-IN-LIEU FUND 27 UNASSIGNED FUND

BALANCE TO THE CONCEPTUAL DESIGN OF A COMMUNITY AND AQUATIC CENTER PROJECT (C2331) AND AUTHORIZING THE EXECUTION OF AN AMENDMENT IN THE AMOUNT OF $86,000 TO THE PROFESSIONAL SERVICES AGREEMENT WITH GOOD CITY COMPANY FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $160,999

FOR PARKS MASTER PLAN AND COMMUNITY AND AQUATIC CENTER DESIGN PROJECT CONSULTING SERVICES.

WHEREAS, the Parks and Recreation Department initiated the Parks Master Plan and Conceptual Design of a Community and Aquatic Center Projects in June 2024; and WHEREAS, the City executed a contract with Good City Company to provide project manager consulting services for both projects; and
WHEREAS, the process has included community engagement, inventory and analysis, needs assessment, study sessions with City Council and City commissions, development of the Draft Parks Master Plan, updates to the General Plan Parks and Recreation Element, as well as California Environmental Quality Act (CEQA) review; and

WHEREAS, community outreach and engagement was very widespread and included three separate rounds of community outreach which included in-person community meetings, online surveys, stakeholder focus groups, pop-up events, Parks, Recreation and Culture and Planning Commission presentations, and City Council study sessions; and

WHEREAS, the City Council, at its October 27, 2025, meeting provided input on park site and facility recommendations in the Parks Master Plan and requested the selection of a site for a community and aquatic center continue on a separate path; and

WHEREAS, the scope of services with Good City Company includes project management; bi-weekly team meetings; participation in all project-related community meetings; oversight of project and consultant quality control; and provision of administrative support, including the preparation of staff reports and presentations; and

WHEREAS, approval of the contract amendment will ensure that planning projects proceed without delay.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby appropriates $86,000 from the Park-in-Lieu Fund 27 Unassigned Fund Balance to the Conceptual Design of a Community and Aquatic Center Project (C2331) and authorizes the execution of an amendment in the amount of $86,000 to the professional services agreement with Good City Company for a total contract amount not to exceed $160,999 for the Parks Master Plan and Community and Aquatic Center Design Project consulting services. * * * * *

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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 27th day of April 2026, 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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Good City Company | www.goodcityco.com

March 24, 2026

Amy Newby, Parks and Recreation Director
600 Elm Street
San Carlos, CA 94070

RE: Proposal to extend Parks Master Plan Project Manager Consulting Services

Dear Amy,

Good City Company appreciates the opportunity to provide Parks Master Plan Project Manager consulting services for the City of San Carlos (City) in accordance with the Agreement for Professional Services effective April 1, 2024. We have enjoyed working with your team on this project for the past two years and appreciate the opportunity to continue to do so.

Based on our conversation, we propose to continue to provide Project Management consulting services for the Parks Master Plan process a s well as Community and/or Aquaitc Center project management services. We anticipate the Parks Master Plan and General Plan update will be adopted in May/June this year and that the Community and/or Aquatic Center design and selection process may continue for an additional nine months. As such, we propose to extend the scope of services for a period of 12 months.

Our proposal for this initiative includes the following:

Project Management: Lisa Costa Sanders, Principal , will be the project manager. As the project manager, Lisa will serve as an extension to City staff, coordinating all aspects managing the Project Team towards the successful adoption of the Master Plan, General Plan and preparation of conceptual plans for a community and/or aquatic center.

Project Meetings : Organize and facilitate bi -weekly check -in meetings to ensure clear communication among the City, Good City, and the Project Team, share progress, and address issues promptly.

Public Meetings: Good City will also support the City and Project Team in stakeholder, community meetings, public hearings, and other events as necessary (in person or virtually).

Quality Control : Ensure the Consultant’s deliverables are presented and align with the City’s objectives for the plans’ scope of work.

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Good City Company | www.goodcityco.com

Preparation of Staff Reports: Prepare written staff reports, related attachments, and PowerPoint presentations for Boards and City Council.

The estimated monthly hours and fees are detailed below. The estimate below is based on 2026 billing rates, which are subject to change on January 1st of each year.

Team Member Role Hourly
Rate
Hours /
Week
Total Monthly
Hours Monthly Fee
Lisa Costa Sanders Principal $280 4 16 $4,480

We anticipate this assignment to last approximately 18 months. The total estimated fee based on 18 months at $4,480 per month is $80,640.

Should you have any questions regarding our proposal, please do not hesitate to contact me at (650) 333-0248 or [email protected]. Thank you for your consideration. We look forward to the opportunity to continue working with the Parks and Recreation Department.

Sincerely,

Lisa Costa Sanders, Principal and Co-Owner
Good City Company

Attachments:

Billing Rate Sheet

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Adopt a Resolution Consenting to the Change in Ownership of Lessee Pertaining to the Ground Lease for City-Owned Property at 525 Skyway Road.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution consenting to the change of ownership of lessee pertaining to the ground lease for City-owned property at 525 Skyway Road.

FISCAL IMPLICATIONS:

There are no fiscal implications, and no additional funding is needed.

BACKGROUND:

The City executed a ground lease in November 2003 with 525 Skyway Road, LLC (“Lessee”), which most recently operated as Izzy’s Steakhouse Restaurant. In July 2023, the ownership of the Lessee changed following the death of its sole owner, Robert Samuel DuVall. At that time, fifty percent (50%) of the ownership interest transferred to DuVall Family Restaurant Group LLC, with Samantha DuVall Bechtel, daughter of Mr. DuVall, as its sole member. The remaining fifty percent (50%) ownership interest transferred to Mr. DuVall’s longtime business partner, Joseph R. Kohn.

Izzy’s closed in October 2025 after two decades of operations. In December 2025, the Lessee notified the City of another change of ownership. Mr. Kohn transferred his entire ownership interest to DuVall Family Restaurant Group LLC., under Samantha DuVall, which now holds one hundred percent (100%) of the ownership interests in the Lessee.

ANALYSIS:

Per Section 16 of the Ground Lease, the City Council must consent to the change in ownership.

The DuVall Family Restaurant Group LLC has been in the restaurant business since 1987 and currently owns Izzy’s Steakhouse in San Francisco. Staff recommend approving the change of ownership interest to the DuVall Family Restaurant Group LLC as allowed in the ground lease.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution consenting to the change of ownership of lessee pertaining to the ground lease for City-owned property at 525 Skyway Road; or

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2. Do not adopt the proposed; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Al Savay, Community Development Director
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Resolution

2. Notice of Change in Ownership

3. Ground Lease

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RESOLUTION NO. 2026 – ____

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

CONSENTING TO THE CHANGE OF OWNERSHIP OF LESSEE PERTAINING TO THE GROUND LEASE FOR CITY-OWNED PROPERTY AT 525 SKYWAY ROAD.

WHEREAS, in November 2003, the City executed a Ground Lease with 525 Skyway Road, LLC (“Lessee”), which most recently operated Izzy’s Steakhouse Restaurant; and WHEREAS, in July 2023, the ownership changed (due to the death of its sole owner), from Robert DuVall to fifty percent (50%) of the ownership interest transferred to DuVall Family Restaurant Group LLC, with Samantha DuVall Bechtel, daughter of Mr. DuVall, as its sole member and the remaining fifty percent (50%) transferred to Mr. DuVall’s longtime business partner, Joseph R. Kohn; and
WHEREAS, in October 2025, Izzy’s closed operations and in December 2025, the Lessee notified the City of another change in ownership where Mr. Kohn transferred his entire ownership interest to DuVall Family Restaurant Group LLC., under Samantha DuVall, which now holds one hundred percent (100%) of the ownership interests in the Lessee; and WHEREAS, per Section 16 of the Ground Lease, the City Council must consent to the change of ownership and consent shall not be unreasonably withheld.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby consents to the change of ownership of lessee pertaining to the ground lease for City-owned property at 525 Skyway Road.
* * * * *
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 27th day of April 2026, 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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Docusign Envelope ID: 7C5546D5-AD4B-4859-AF §3-19DBBB9419A9 December 22, 2025

VIA FEDEAL EXPRESS
City Hall, City of San Carlos
600 Elm Street
San Carlos, California 94070
Attention: Property Management/ City Leases
Re: Notice of change of ownership of Lessee
To whom it may concern:

Reference is made to that certain lease (“Lease”) between the City of San Carlos (“City”) and 525 Skyway Road LLC, a California limited liability company (“Lessee”) whereby City leased the property located at Parcel No. 3-046-250-030 to Lessee. Capitalized terms used herein have the meanings given them in the Lease.

On or about July 29, 2023, Lessee notified the City, pursuant to that certain letter dated July 29, 2023 (the “July 2023 Letter”) attached hereto as Exhibit A, that the ownership of Lessee had changed due to the death of its 100% owner, Robert Samuel DuVall. As explained in the July 2023 Letter, following Mr. DuVall’s passing, his interests in Lessee were distributed as follows:
(a) fifty percent (50%) to DuVall Family Restaurant Group LLC, a Delaware limited liability company of which Mr. DuVall’s daughter, Samantha DuVall Bechtel, is the sole member (“DuVall Family Restaurant Group LLC”), and (b) fifty percent (50%) to his longtime business partner, Joseph R. Kohn (“Mr. Kohn”).

This letter is to notify you of a further change in the ownership of Lessee. Mr. Kohn’s entire interest has been transferred to the DuVall Family Restaurant Group LLC. Accordingly, the DuVall Family Restaurant Group LLC, of which Samantha DuVall Bechtel is the sole member, now owns one hundred percent (100%) of the ownership interests in Lessee.

We are providing this letter to give you notice of the change in ownership of Lessee and, pursuant to Section 16 of the Lease, seek written consent of the San Carlos City Council to the ownership change.

Please let us know if you have any questions or require additional documentation in connection with the ownership change of the Lessee described above. We could appreciate if you notify us at [email protected] when the San Carlos City Council has approved the transfer.

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Docusign Envelope ID: 7C5546D5-AD4B-4859-AF53-19DBBB9419A9 Best regards,
525 Skyway Road LLC,
a California limited liability company
/—Docusigned by:

By, SAmaited DUEL BELAPEL
Name: Samantha DuVall Bechtel
Title: Sole Member

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Docusign Envelope ID: 7C5546D5-AD4B-4859-AF53-19DBBB9419A9

EXHIBIT A
[to be attached]

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City Hall, City of San Carlos
600 Elm Street
San Carlos, CA 94070
Attn: Property Management/ City Leases
RE: Notice of Change of Ownership of Lessee
Date: July 29 . 2023
To whom it may concern,
This letter and notice refers to the lease between the City of San Carlos and 525 Skyway Road LLC whereby the City of San Carlos has leased the property located at Parcel No. 3-046-250-030 to 525 Skyway Road LLC (the “Lease”).

On or about September 11, 2003, the City of San Carlos entered into a written lease agreement with Robert Samuel DuVall, dba DuVall Properties for Parcel 3 as shown on that certain map entitled “Parcel Map, City of San Carlos, San Mateo County California” filed in the office of the County Recorder of San Mateo County, State of California, on November 13, 1996 in Book 69 of Parcel Maps at Page(s) 53 and 54, which lease had an initial lease term ending October 31, 2007 and 7 additional option terms of 5 years each (the “San Carlos Lease”). The San Carlos Lease was assigned from Robert Samuel DuVall, dba DuVall Properties to 525 Skyway Road LLC by written agreement dated August 1, 2011. Robert Samuel DuVall owned 100% of the interests in 525 Skyway Road LLC.

This letter is to notify you that the ownership of 525 Skyway Road LLC is changing. Robert Samuel DuVall is deceased and, after his death, his interests in 525 Skyway Road LLC were distributed as follows: (i) fifty percent (50%) to DuVall Family Restaurant Group LLC, a Delaware limited liability company of which Robert S. Duvall’s daughter, Samantha Du Vall Bechtel, is the sole member and (ii) fifty percent (50%) to his long time business partner Joseph R. Kohn. Additionally, all covenants and conditions of the Lease will remain with 525 Skyway Road LLC (the “Lease Assignee”), who will continue to assume all liabilities and requirements thereunder and execute an assignment agreement in form and substance reasonably satisfactory to the San Carlos City Council.

We are providing this letter to give you advance notice of the change in ownership of lessee and, pursuant to Section 16 of the Lease, seek written consent of the San Carlos City Council to the ownership change.

Please let us know if you have any questions or require additional documentation in connection with the ownership change of the lessee described above. We would appreciate it if you would notify us at [email protected] and [email protected] when the San Carlos City Council has approved the transfer.

Best,
fee
Joseph R. Kohn
Agent of 525 Skyway Road LLC

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LEASE
THIS LEASE, dated ~-~---for reference puipose·s only, is made by and Qetween the CITY OF SAN CARLOS (the "City"), hereinafter sometimes called the "Lessor", and ROBERT SAMUEL IJUV ALL dba DUVALL PROPERTIES, hereinafter called the 11Lessee11

WITNESSETH
WHEREAS, the City is the owner in fee of that certain property located in the City of San Carlos COJIU>tising approximately 1 9816 acies of unimproved land area located at Holly and the East side ofU S 101 Interchange, said property being referred to heremafter as the "Property"; and
WHEREAS, the City is vested with the complete and exclusive power, and it is in the City's best interest to lease the Property upon such terms and conditions as the City Council shall prescribe
NOW, TIIBREFORE, for and in consideration of the faithful performance by the City and Lessee of the tenns, covenants, and cond1t1ons hereof, and of the payments herein provided to be made by Lessee, the City and. Lessee hereby agtee as follows 1 Lease and Description of the Property The City hereby leases to Lessee, ~d Lessee hires and takes from the City, the Propertyj Parcel No. 3~046.:.250;.QJ0, which is located itl the City of San Carlos~ County of San Mateo, State of California, and more particularty described in Exhibit A; attached hereto and by this reference mcorporated herein The Property together with the improveroents to be constructed thereon ate sometimes hereinafter referred to as the 11Premises1' •
This Lease is subject to (1) all easements,. covenants conditions, reservations, restrictions, rights of way, liens, encumbrances, and other matters of record, (2) all matter discoverable by ·physical inspection of the Property or which would be discovered by an accurate survey oftbe Property; (3) all matt~rs which as of the date hereof are known to Lessee or of which Lessee has notice, constructive or otherwise, and (4) all rights rese1ved in the attached Exhibit A 2 Eifective Date: Term; Lease Year
2 1 Basfo Term This Lease is effective as of the Effective Date The original term of this Lease shall~ four (4)years commencing on November I, 2003 and ending on October 31, 2007

2.2 Option Term Lessee shall have the option to extend the fixed teon of this Lease by seven (7) additional terms of five (5) years each (hereinafter the ••option terms11) on the ~ Clzlos\Lcw:$\IIJIJLoF "'PG

EXHIBIT D

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•. '
following ba~i.s:

1. Lessee is not Jtl default undet the Lease
2 .Lessee has given twelve (12) months written nntice to exercise the .option prior to expiration of the basic teim
2 J Lease Year The term "lease year'~ shall mean each co~utive twelve (12) months beginning on NO'\Tember 1, 2003 •
3 Use of Premises
3 1 Reqµired. and Permitted Uses 'rhe Property-shall be used by Lessee for the operation of a "full service restaurant'' with bar
3 2 Com.p1iance with Law Indemnity. Less~ shall not us(, or permit the Premis~ or any part thereof, to be used i~ whole or in part for purpose other than as hereinabove set forth, no1 for ~Y use in viola~on of any present or future laws, ordinances, geperal rules, or regulations at any time applicable thereto or ·any pub.lie ,or governmental autho-rity, including the City of San Carlos, relating to the public health, safety, or welfare, including all restraints on -air and water pollution, and preventing or cleaning up hazardous and toxic wastes Lessee hereby expressly agrees at all times during the tenn of this Lease, • its own cost, to maintain and operate· the.

Preiµises in a clean, safe. and sMitaty cQDditi(ll\ an4 Lessee shall at all iimes :taithfully obey and comply wlth all laws, rules, and regulations applicable hereto ~opt-ed by federal, state, -local~ or other govemmeptal bodies or departtnertts or officer.s thereof and applicable to -the Premises; provided, however, that Lessee may reasonably and in good faith contest apy such law, rule, or regulation through apptopriate proceedings and~ during such contest~ Lessee need not comply therewith; and provided further. that Lessee shall at all times tea,scu:mbly pr-otect the interest of the· City under this Lease, shall indemnify, defend, ·a® hold hannless. the City fl)! all liabilities, losses, or exp~ses actually and reasonably incurred as a 1esult of said contest, and shall promptly comply with any sucli contested b.Jv.,1 rule or regulation if any ·such ·cont~ is resolved a,gainst Les.see 3 .3 Standards of O:Q,efation. Lessee shall operate-the ·1 estaurant in a first class manner.

4. Rental; Rental R.ev1.ew
follows:

Annual Base Rent : Shall be paya_ble to the City in equal monthly installments as Years l through4
Yea1S 5 through 9
Years 10 through 14
Y w.s lS through 19
2 $53,625
$58t963
$64,691
$71.408

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Y ~s zo through 24
Years 25 through 29
Years 30 through 34
Years 35 through 39
$78,512
$86,364
$95,000
$104,.5000
4 2 Additional Rent In addition to the annual base ·rent, the. Lessee shall pay three percent {3%) of gross receipts to the City on or before the sixtieth {601h) day after the end of each lease year, in accord with the following schedule· 3% on gross receipts in excess of:

Years 1 through 4
Years 5 through 9
Years 10 through 14
Years J 5 through 19
Years 20 through 24
Years 25 through 29
Years 30 through 14
Years 15 through 39
$2,145,000
$2,359,500
$2,595,450
$2,854 ,995
$3,140,495
$3?454,544
.$3,799;998
$4,179,998

4.3 Lessee's Gross Receipts. Lessee's Gross Receipts means gross sales of alt food, merchandise or services sold, leased, licensed, or .delivered in or from the Premises by Lessee, whether for cash or on oredit Gross Receipts shall includ~ any amounts Lessee receives from vending machines in the Premises. Gross Receipts from credit card transactions shall include only the actual amount received by Lessee from the credit card issuer Gross R;eceipts shaU not include, o:r if included there shall be deducted? the following:
1, The selling price of all merchandise returned by ~ustorners and ·accepted for full credit, or the amount of discounts, refu~ds, and allowances made 011 $Uch merchandise

2. Metcband~e which is promotional and for which no profit h,as been marked up
3 Sums and credits received in the settlement of claims for loss of or damage to merchandise,

4. Any $UfilS paid to thtid partl.es for th.e. use or rental of vending machines
5 Gift certificates, 01 shnilar vouche1s, untll such time as they shall have been conve1ted into a sale by redemption •
6 Sales and use ta"l!:es, gross receipts taxes, and other similar taxes now or in the Q,\Qtioo\Sen c..too\Lwos\lflbLsl' wpd 3

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I I
tbture imposed on mom rents 01 the sale of ~~cban,dise .or services

7. Sales offurtures, trade fixtures. 01 personal property which are not merchandise

4.4 AnguaJ .Accounting. On oJ be.ft>re the sixtieth (60th) day after the end of each lease year~ Lessee shall render to the City, in a form reasonably satisfact-ory to the City, an account of all business transactions relevant to the calcularum of Gross Receipts, Lessee shall keep or cau.re to be kept at its home office .ttue an~ a~cur~ books and records showing all of such business transacJions and, upon request from the City shall •e available those l,ooks and ~cords at the Pr~ses . Said boob and records shall be retained fbl' at least four (4) years after occurrence of the tr~ons to which they relate The City shall have the right·not more than once pet base year, through its. representatives a1ld at all reasonable times; upon at least seven (7) days' prior written notice to Lessee. to .inspect such books and reco1ds, iJlcluding State of Callfomia salea tax return records, ~ Lessee hereby a,rees to make or cause to be inllde such books and records available to the City or tts authorized repre,entatives upon request This paragraph shall not prevent. the City from qbtaining copies of such book,& an<t records Qr inspections of such books and records upon issuance of a pr~ subpoena, 4 5 Late Charge. Arry payment of annual base rent or additipnal rent which remains due and unpaid under the terms of this Lease fm a p.eriod often (10) days ilfte1 notice from the City shall be subject to a late charge. for violatio,i of this Lease and fur damages, of F~ Hundred DQllats ($500 .. 0Q) t.he City shall apply arty moale.! received ft~m Lessee first t9 any acr.rued dellnquency diarges' and then to ~my. other rental or pther ·Stilji$ then due lteteunder The late eharges _provided by this paragrap·h ate _in addition to all other remedies that the City may have that are provided by t ... Lease or otherwise by law to enforce payment of any rental .or other sum that has bee().J'D.e due and has not beea paid including interest at the rate often peroc,nt {10%) per annum on any outstanding rental pa:ynient$ more than thh1y {30) days de1inqt1ent.

4. 6 Accord and Sati~tion. No paytnent by Lessee or receipt by the City of a lesser amount ()f mQllthly tent or any other sum due heretW,der, shall be d~ed to be othet th8t1 on account Qfthe eatliest due rent or payment, nor shall any endorsement 0r·statement on any check or any letter aCCOlllpanying any $Uch check Qr payment be deemed .an accord and satisfaction, and the City may accept such check or payment and pursue any other ·remedy available in this ·Lt.ase$ a.t law or in equity The City may accept any partial payment from Lessee without i~dation of any .contractual ,notice requir.ed to be given herein (to the CJdent sach -CC>n,tractual notice is r~ed) and with.out invalidation of any not.ice required to be given pur$uantto Califorrua Code of Civil Procedure Section l 161, et sea, or of any successor statute thereto •

5. Standard qf S.ervice Rates and Charges Lessee shall construct; fiunish, maintai~ and operate tho Project and provide all other services and facilities offered in connection therewith, iii a first-class manner and as J?fOvided in. paragraphs. :3.3 an4 9.3-·ofthis Lease. 4 9.i
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6 Condition of Property Lessee agrees to accept the Property in its existing condition, "as is
11 The City shall not be Qbligated to make any improvements, alt-erations, or additions thereto Lessee acknowledges that the City shall not be responsible for any subsurface condition Qf the Property, including, without limitation, the condition of the soil and underground W/lter condition.

7. Maintenance of the Improvements.
7 1 Lessee's Doty to Repair Lessee agrees that during the entire term of this Lease. at its own ·cost and expense, 1t shall k~p artd maintainthe Pren11ses, including all buildings, structures,. related facilities, fencing, landscaping, utility lines, walkways, and other improvements thereon, apd the street tie-.ins an.d the curbs, gutters, public access m ea and side.walks contiguous to the Property, in first--class order, repair, and condition as defined in thjs L~e. Lessee shall perfollll; at its own cost and expense, any and all ml{i.ntenance, reparu, rehabilitation, or reconstruction thereto, whether required by structutal failure or deterioration or by operations of Lessee or otherwise The City shall have no maintenance or repair obligations ·of any kind with respeet to the Premises or ~ch other items that Lessee is required to keep @d mai,ntain. 7,2 Extended Term, It is recognized that because of the length of the term of this Lease, especially if the Option terms are exercised, it may be necessary for Lessee to perfonn certain substantial maintenMce, repair, rehabilitation, or rec.onstruction (hereinafter collectivdy :referred to as ''repair" or
11 repairs
1 i) of the improvements in ordt;r to ensure that the improvements are kept hi ti.est-class order, repair, and c.ondition; and particularly so that the e~erior appearance thereof does not detract from the general appearance of the developments neat the Premises,

7.3 Definition.ofFirst-Class.Order. Re!)air. and Condition "FtrSt-selass order., repair, and c0ndition
11 , as used herein, shall mean the maintenance, repair, renovation, or replacement ofbuildings, -equipment, furniture, fixtures, landscaping. and appurtenances necess.u-y to keep the Premises in efficient and attractive condition, given the nature and age of the improvements, at any time during the term of this Lease, The City and Lessee do ·not mtem;l by the immedi~tely preceding sentence that a property item is not fust-clas.s tnetely because of ordinary and reasonable wear and tear that does not materially and substantially 1 educe the attractiveness or utility of the item given the n.a:ture and age of the improvements ,at any time during the term of this Lease

7..4 City Inspection If the City shall reasonably determine that any tepair of the improvements 01 other structures located on the Premises, including, but not limited to, the painting thereat: is necessary so that the exterior appearance thereof does not det1act from the general appearance ofthe surrounding area Lessee sliall perfm m such repair or, if it disagrees, elect to submit the matter to binding aibitrat1on according to California la.w If Lessee for a penod of forty~flve (45) days after written notice from the City sb41.1 fail, neglect, or refuse to perform, or to commence ~d continuously and diligently proceed tn good faith to complett; any requited repair 01 maintenance, the City may perform such repair or maintenance and Lessee shall Q'\Clbes\San CUlosU-\H1buf wpd 5
, J 1 • '

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reimburse the City within thirty (30) days aft,er receipt of notice from the· City demanding payment fur the cost thoteof, including the Citys reasonable admi.ni•ve overhead. In perfomung such repair~ the Cny shall interfere as little.as reasonably practicable with Lessee's operations on the Premises. lJ1 the alternative,' the C.ity may seek inj\tnctive I elief from the coort to compel Lessee to comply with its obligation regarding :mamteruuice of improvements 7 S Waiver. Lessee hereby expressly waives the right tQ make repairs at the expense of Lessor and the benefit of the pi:ovisions of Sections 1941 and 1942 of the Civil Code of the State of California relating thereto. The City shall not be obligated to make any repairs, IJteratio.ns, additions. improvements. en betterment to the Premises during the term of this Lease.

8. nt1e to Improvements. Lessee shall have title to the improv~. and all other ·structures, buildings, and other improvements installed~ relocated) constructed, or erected by Lessee upon the Propiarty during the term of this Lease, and SU<.'h title shall remain in Lessee ~ the teitn of this Leas~ $Id opo.n termination of this Leue whet• by expiration of its tenn, c_anceliation or o~erwise, tide thereto shall pass to -~ vest in the Lessor The improvements, and all Qther structures, buildings, and other improvements .installed, relocated, -cpnstructed. or erected by Lessee upon the Premises shall rem.a.in upon and. l>e surrendered with the Premises as part theieof upon terJnination of dus Lease Neither the improvements nor any other structure, ·building. or improvement 1elocated, constructed, or installed upon tlie Premises during the term of this Lease shall be removed from the Premises by Lessee at any time without the prior wtitten consent of the City~ which CO.D$enf shall not be upreasonably withheld jn the case of small,. t~raty .muctureJJ ere~ on.the Pranises or an_y portion thereof. Title to ell fixture$. equipment, iurnishings, 4ttd trade fixtutes placed by Lessee upon the Pr~s ·shall remain in Lessee, and replacements, s.ubstitutio~ anc;l modifications thereof may be mad~ by Lessee throughout the term of t1us Lease, provided at the option of the City, exercised at least $ix (6) months prior to termination, title t~o. except signs and 811)' items with Lessee's neme or logo thereo~ shall pass'to Leaor at the termi~tion of this Lease and payment by-the City·tQ the Lessee of the market valu~ thereof based on the price Lessee could reeovet in a bona fule sale on the disposition and liquidation Qf all such personal property in a single sal~ and ,if the City1s -option is duly ·exeroised, Lessee shall ilOt remove the -~ upon temtlnation of this Lease. ~ warrants ml represents to Lessor thatat the time tha.t the City is entitled to become the absoi1,1te owner of the improvements. including all personal property 4$ provided abQ.ve, the title thereto sball be clear and· good and free of any Ii~ns, encumbrances, ot -other cha;rges or olaqns_ Lessee agrees to Jtotify the City of its option right at leal!t twelve (1~) months prior to said rights. conung into effect.

9. ;Lessor's Nonrewonsibility Lessor. during business hours. of Lessee, shall have the right to go 1n, enter upon, and insp~t the Premises and to post and keep pos-ted the1 eonJ ai1d in any space. notices that Lessor will ·not be r~sponsible for a,iy alterations, add~o.tts, improvements, construction, repair, or work or labor performed m conneotipn tk~rewith or arty si.mdar notices provided for by law, which notices sha11 be of such character as Lessor may determine or which Les$or may feel necessary for its protection or for the protection of said Property or a,ny interest

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therein against meehanics' or materialmen'-s hens of-any character 10 Signs, Outside Displays Lessee shall not install, paint, inscribe, or place any signs. or placards upon the exterior of the Prenuses or upon the interior of the Premises if inteQded to be viewed from the exterior thereof, without the prior written consent of the City according to tbe prevailing sign ordinance The City agrees not unreasonably to withhold or .delay consent to ·such signs which state the iuune of the tenant or tenants or the type of businesses cpnducted on the Premises and that otherwise comply With the applicable sign policies in the City of San Carlos.

Lessee .agrees, at its own expense, to remove or paint over to the satisfaction of the City promptly upon termination of this Lease any and all signs or placards installed~ painted, inscribed, or placed by .it in or upon the interior or exteiior of the Premises, and should Lessee fail to so remov~ or paint over such signs, or placatd$, the City may do so at the expense of Lessee and Lessee shall reimbutle the City for the cost thereof upon .demap.d
11 Taxes and Assessments Lessee shall pay when due all property taxes and assessments on the Property subject to the Lease in accordance with the provisions of the Lease. Lessee understands that un~er certain conditions its control of the Property may give rise to the imposition of a ,possessory interest tax on said Property Lessee agrees to pay when due any such poss~sory interest tax: attributable to its control of the Piop.erty l l . l Lessee's Duty to Pay The property interests created by this Lease may be subject to ;property taxation and the Lessee hereµnder 1n whom the possessory interest is ·vested may be subJect to the payment of property taxes Levied on such interest Lessee agrees to pay before delinquency aU lawful taxes, assessments, fees. or charges which at any time may be levied by the state, county, city, ·or any tax or assessment levying body upon any activity canied on under this Leas~. ~Y interest in t.his Lease, or any possessory right which Lessee may have. in or to any property covered hereby by reason of its use or occupancy thereq( or otherwise, as well as all lawful taxes, assessments, fees, and charges on goods, merchandise, fixtures, appliances, equipment, and property owned by Lessee in or about said Premises Lessee -shall not be responsible for the paymertt.¢fincreases m ta'ie resulting from a change in ownership of the Property if such change in ownership occur~ ,during the first ten (1 0) years ofthe lea~ term.

11.2 Sg~ial Assessments. In addition thereto., if during the term of this Lease an assessment, whetlrer general or special,_ is levied against the Premises, Lessee shall pay directly-or to Lessor the entire amount' thereof, except, with respect to any assessment which can be payable in annual installments, Lessef shall pay such amount .of the assessments that come due duting the Lease term If Lessee shall fail to pay any such truces or assessment, Lessor shall have the right to pay the same. in which case Lessor shall add the sum thereof to Lessee's next monthly rental payment, together with interest at the maximum rate permitted by law.

11. 3. Special Taxes The parties recognize that, dunng the te1m of this L~e or any ex.tension .thereof, the present real property tax may be wholly or partly replaced or supplemented by another form of tax In such event, Lessee shall further pay any such tax, levy, Q-\Cit!a\!,an Cldoo\1...-'llabLsf wrcl 7

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or assessment (other than federal, state, -01 city and co:unty :net inconie taxes or ~~ gift, or other similar taxes) w.bicb. now or in, the f\Jtµre and whether or net now customaJ'}' or within tho -contemplation of the parties hereto, may be charged to LeS$or and is• (i) levied upon, allocable to, or measured by the reQtal payable heceunder~ (ii) levied upon the business of owning and operating rental properties to the extent such tax is applicable to the Premises; (u) levied upon Of with respect to the possession. leasing, operatiort, management. or occupancy by Lessee of the Premises· or any portion thereof, or (iv) leVied up9~ or measured by the value of Lessee's personal ,property ()r leasehold improvements.
l l 4. Right to Cgntt;!t Lessee may at no cost to the City reasonably contest the legal validity or amount of any t•es. u.sessm~ts, or charges for Wbi<th Lessee ls re~slble, and institute such proceedings as Lessee considers necessary; provided, however, that J.es.se.e shall at all times protect the City and the P~ises fro.Ill foreclosure of any lien. and that the City shall not be required to join in .uiy proceecling or oontest brought by :i.t,uee. 12 .. Fire apd Earthguak~ tnsurance,
1,Z 1 Lessee to Insure. Lessee shall carry with insuta.n.~ oompani~ accep~ble to the City and qualified to do busin* in the S~e of California builder's ri,k. m•mu:ioa, ·ilt its own cost and expense. at all times durirtg C()ttstruction of the improvements and until Le.sse,e has filed with the City a certificate o.r certificates of fue. and extended insuran9e coverage on the • itnptovetnents, ,as completed, in an amount not less than one hundred peteent (100%.) of the full n,p~Ceµ)_ent oost of tho lmprovem$11S' Lessee promptly shall provide to the City at the CityS .request oer#fted copies of the policy or policies. The certtficate or certificates shall state that the insurance coverage sh~ not be canceled or excluded on ac'COWlt of completion; .occupancy, 01 .use ofthe impro.vemen~ unle$S and until (1) the City is given at least thirty .(30) days' prior written notice of ~cellation after completion of 0,0nsttu~tion or (2) there is on file with the City with respect to the same improvements, the policy-or policies required in this Paragraph 15 evidencing_ fire and extended insuran® coverage. Lessee agrees to maintain, at its own -tost and ·expense, dtuing the entlr'e tenn of this Lease, a policy or policies of insurance against loss or dame.Bes by fire with ~ed coverage .endorseinents coveting all buildu:rg., and hnprov~ts ( ekcluding only paving, ·pilings, and landscaping ·and foundations below the lowest surface of the ground) placed or erected upon the Premises, in an amount equal to one hundred percent (100%} of the full replacement cost of~ such building&. and ittipro~ts . Lessee hereby warrants that the said one lnmdred perGeD.t (100%) full replaccm1ent cost co~e shall include any UlOJ-eased CQsts of construction resulting from changes in applicable building code1 and r~gulations.

1.2 2 .Earthquake Insurance The City may re.quire Lessee to carry earthquake insurance in such amounts as may from time to tune be commonly an.d r-80nably requited by imtitutional lendws in the case of property similarly .situated, due regard being given to the site and the type of tlle improvement& on the Property, and prpvided that such insurance is available at commercially reasonable rates.
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12. 3 City Shall Be Second Insured The City shall be named an insured on the foregoing policies, During any time that any Lender (as ·defined in paragraph 19) holds any interest in the leasehold estate created hereby, such policy or policies shall name th~ Lessee, the City, and such Lender as insured as their interest may appear In any case under this Lease that Lessee is required or elects to restore the Premises after damage or destructiort, the City agrees promptly to execute all adjustment documenu ang to endorse any proceeds to Lessee and/or Lender. Lessee agrees to keep the City :full advised during the adjustment process Ifin any ~ under this Lease or by law Lessee is permitted to elect to terminate this Lease ort accpunt of damage or destruction. Lessee agrees to promptly execute all adjustment documents and to endorse any proceeds to the City subject to the rights of Lessee and any Lender as described in Paragrap~ 19_ In the case where Lessee is required under this Lease to restore the Premises, and subject to the rlghts of any Lender hereinaftet described, the pi-oceeds of insurance shall be held by a depository agreed upon by Lessee, Lender, and the City as trust funds to be used for the purpose of restoring the improvements damaged ·by such fii e or other casualty Les$ee agrees to use good faith reasonable efforts, to have all Lenders agree in relevant Joan documents to have insurance proceeds a_pplied to restoration of the Premises and shall promptly notify the City in writing if a Lender will not so agree Lessee also agrees that if, nevertheles.s, a Lender will not so agree but reserves the power to apply all 01 portions of such proceeds a:gainst its loan, then in the ev..ent of a loss Lessee shall use diligent, good faith reasonable efforts (which efforts may include legal action), as determined by Lessee in consultation with Lessee•s legal counsel and the City, to cause all proceeds of1nsurance to 'be applied to restoration, but not so as· to jeopardi7.e Lessee's interest in the leasehold estate in the good faith reasonable judgment of Lessee's attorney.

12.4 Eviqence of Insurance· A certificate 01 c.ertificates evidencing such fire and extended coverage insurance sha11 be filed with the City upon the completion ofconstructi.on of improvements and prior to canceU~tiQn of building risk covera:g~ and said certificate or certificates shall provide that such insuram:e coverage will not be canceled or reduced without at least thirty (30) days' prior written notice· to the City If such cover~ge is canceled or reduced, Lessee shall, within fifteen (15)-days after re9eipt ofwritten notice from the City of such cancellatio~ or reduction in coverage, but in no event late,i than the effective date ofcancellation or 1eduction, :6le with the City Manager· a certificate or certificates showing that the required insuiance has been reinstated 01 provided through another insurance company or companies. On failure to so file such certificate or certificates, Lessee shall be in substantial default of this Lease. and at lts option the City may, but .1s not obligated to, procure without further notice to Lessee the requiI ed insurance at Lessee"s expense I\Od Lessee shall pay to the City the City's cost of procurement of such insurance upon receipt of bilhng from the City for sai4 cost. 12 5 Waiver of Subrogation Lessee shall ebtafo from its iQsureis (to the extent reasonably o];)tainable) under all policies of insurance maintained by Lessee for builder's risk and fue. insurance coverage (i.ticlllding earthquake cover age) at any time during the temi of this Lease, endorsements providing a waiver of all rights ofsu:brogation whlch the insurer may have against the City
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13. Damage .or Destruction ofgnprove,ments. . .
l3 1 Lessee's Duty to Rebuild If; during the term of this Lease, any of the hnpn;wements. including any othei buildings or structure~ located t;tpon the Properiy., shall be damaged or destroyed by fire or other insured ca,sualty, Lessee agrees to reston~ the improvements or other ~dldings or structures so dam1Lged ot destroyed 'With due diligence: t() a good and tenantabie oondition; provided:. further, tbat if Lessee shall then have in effect all of the msurance required to be canied pursuant to Paragr~ph 16 of tlus Lease. (i) Lessee's obligations to rebuild the improvements so damaged or destrnyed shall be limited to the amount of insurance proceeds DJJld.e available t_o Lessee therefor from all source-, including the City and a:nyLencler, plus any deductible, and (ii) in no ¢vent shall Le:isee be .in any way obligated to expend its own funds therefor beyond the amount of the agreed deductible, if any.

13.2 Uninsured CasuaJty. If, during the term of this Lease_ any of the improvemen.U;, or any othei• buildings or sttuctures at any time located upon the Pl'Qperty, are­ totally or $Ubstantia:11y dtunaged or destroyed by a cause other than Lessee's wiUtui or intentional and wrongful acts or omissions; or by a cause tluu is not required to be insured against. hereunder, then within one hundred twenty (120) days after such <lamage or destruction, Lessee shall elect by written ~tice to the C'rty eithei to repair, reconstruct~ or replace sµch im,prQvemen.t~ or other buildings or structures, or to temtinat~ this Lease as of the date of such damage or d~ction Any of the improvements, or such oiher buildings or structur-es located on the Property, shall be deemed substantially damaged or destroyed if the cost of reconsttuctiQn thereof ex:ceeds twenty­ five percent (25%) of the repJ,acement cost of the a.ffected improvem~ts or other building.or • structure If Lessee elects not to tennip<:1-te the Lease. or if the improventents, or .such other buildings or structures. are not substantially da(Ifclged or destroyed, as he.rein .defined, LesSee shall repair, reconstruct. qr re,plaqe such Improvements. or other buildings and stn:actures .so ~amaged or destroyed With due diligence and at its sole GC)st ~nd expense Lessee's election to terminate .sha11 not be effective, except as approved by CitY council resofutiQn, if before the casualty the City bas given Lessee notice of default and Lessee has not cured each such default The City may, by written notice to Lessee given within thirty (30) days of the date notice oftertninationis given by L$see to-the City. require Lessee, at Lessee's sole cost !Uld ~onse, withtn ninety (90) days of receipt of such notice from the Chy, to demolish part or all of the damaged portions of the Premises and place the Premises in a secure and safe condition; provided., however, that in no event shall Lessee be obligated to . repair ot restore any portion of the Premises. :For purposes of this Lease $.11.1,1~ured oasua:lty shall Jne.!ln a oasua1ty·for which Lessee is not Tequired to an4 does not maintain insurance undet • P.aragraph l 6-0fthis Le~--, and any casualty for which Lessee is required to maintain ins1;1rance under Paragraph 16 shalt be deemed an insured casualty whether ol' not lessee actually maintains such insuran(;e,c.ove1age 14 Jndemniffoation. Hold .Harmless, and Liab11ity Insurance 14 1 (a) Indemni:ficat1on and Hold Harmless,, It IS. an express condition of this Lease ~t th¢ City, the meo.:ibers of the City Council, and their pfficers, employee8:, and agents sb:all be

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:free from any and all liabilities. and claims for damages and/or suits for or by reason of any death or deaths or any injury or injuries to any person or persons or damages to property ofany kind whatsoever, whether the person or property ofLessee, its agents or employees, or third persons, from any cause or causes whatsoever while in or upon the Premises or any pmt thereof during the term of this Lease. or occasioned by any occupancy or use of the Premises or any activity carried on by Lessee in connection thetewith, and Lessee hereby covenants tUtd agrees to indemnify, defend, and t-0 save hannless the City from all liabilities, charges, expenses (including counsel fees) and costs on account of or by reason of any such death 01 deaths, injury, or injuries, liabilities, claims, suits, or losses, however occurring, or damages growing out of the same, provided, however, that this sentence shall not apply to death or deaths, injury or injuries, liabilities, claims, suits, or losses in any way caused by any negligent or intentional or Willful actions or omissions of the City or its agents, officers. or eJDployees 14,l(b) Indemnification and Hold Hai:mless ByCity, The City hereby covenants and agrees to indemnify, defend, and to save harmless Lessee from all liabilities, charges, expenses (including counsel fees) and costs on account of or by reason ofany death. injury, liability, qlaims, suits, losses or damages .in any way caused by any negligent or Intentional or willful actions ot ontlssions of the City or its agents, officers or employees

14.2 Liability Insurance. Lessee shall maintain in force during the term of tbis Lease public liability and property damage insurance., including personal injury, broad form property damage, blanket contractual, completed operations; products, liquorliabUity, and owned and non-owned automobiles, with such coverage and llmits as may be reasonably requested by the City from tune to time, but in no event for less than the sum of Five Milli op Dollars ($5 ,.000, 000 00) •combined single limit; and Lessee agrees that ( a) the City shall be named as an additional insured under such liability insurance policy or poli(;i.es and (b) each such policy or. policies shall provide that any exclusion of coverage fot claims by Lessee's employees against Lessee .shall.not apply to claims by Lessee's employees against an additional insured such as the City All such policies ·shall be endorsed with a severability of in,terest or cross-liability end9111ement The insurance shall he placed with an insurance carrier Ucensed to do business in the .State of California, with its license in good standing, and the insurance carrier shall have ,a Best rating of A-6 or better.

A certificate or certificates1 in a form reasonably satisfactory to the City, evidencing such iusurance coverage, shall be filed with the City prior to the commencement .of the term of this Lease, and said certjficate(s) shall provide that such insurance coverage will not be canceled or reduced without .at least thirty (30) days• prior w11tten notice to the City. At the City's request from time to time Lessee promptly shall provide. to the City complete copies of liability insurance policies maintained pursuant to this Lease At least fifteen (15) days prior to the expiration ofany such policy, a certificate showing that such insurance coverage has been renewed or extended shall be :filed with the City If such coveiage is canceled or reduced, Lessee shall, within fifteen {15) days after receipt of written notice ftom the City of such cancellation 01 reduction in coverage but in no event later than the effective date of cancellation or reduction, file with the 11 9.i
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City Manager a certificete showing that the required insurance has been reinstated or provided through another insurance compariy 01 companies Upon failure to so .file such oertiiioate, the City lllay with(JU-t further notice and at :its option eithet ( 1) e;,cercise the Citys rights as pl'0'\1ided in Paragn1ph 22 of this Lease ("Def'ault"), or (2) procure such iosuranee coverage at Lessee's expense and Lessee shall promptly reimburse the City for suob expense.

14. 3 Sublessees Lessee shall include provisions in each sublease and concession and/or license agreement (herein
11 subleaseu) that Lessee enters into with respect to the Premises th~ (1) the sqblessee agrees to indemnify, defend, and hold bannless. the City, the te$J)ective meml>ers of the City councils, and the City's offlceis, eznployees, and ag<mts in the ~ manner as Lessee agrees to indemnify and hold hatmless the City in accordance with Paragraph 18 .1 above, and (2) the sublessee agrees to maintain at all times during the term of the sublease liability insurance with the coverages described m Paragraph 18 .2, in an amount not less than Five Million.

Dollars ($5~000,000.00) e<:>m.b.ined single limit, and which names the City an additional insured~ provided, however. where appropriate to the use permitted under the sublease, Lessee may delete from requiied coverage completed operations, products, and liquor liability. 1 S. Liens -@!!d Bngumbrances
15,l No Liens. Except as otbemise expressly provided in thi~ Lease, Lessee shall pay foa all laho1 don~ and materlals furrushed in the repair, replaoem:en4 development, or improvement of the .Property a_nd adjacent lan;d ·by Lessee and shall keep the Premises and such adjacent I~ ·and Lessee's posse.ssoty .interest in the Premises, free and cl~ of any lien or encumbrance-ofany kind whatsoevet created by tessee. Ifany such hen is so filed, Le$s(re, shall promptly either cause such. lien to 'be released Qf record or dJ118ently c<>iltest the claim relating to such lien, provided that if such contest is resolved ag~nst Lessee, Lessee shall prnmptly cause such lien to be rel~erl Qf record, and ifteSJJee fails so to do. the 'City shall have the right and option, but not the duty, to pay or <>therwise discharge, stay, or prevent the execution of any judgment or lien or both If the City exercises such option, the City shall not be deemed to have waived the Oty's right to declare a default of this Lease pursuant to Paragraph 22 hereo( and Lessee shall reimburse the City for aU sums etpended 1n connection with any suehjudgment or lien, or both, including the City's reasonable attorneys fees and CO,$ts, ~gether with any delinquency charge provided for in Paragrltph 4 8 of this Lease, and said reimbursement shall be due and payable ten (lO) days from the date the City gives to Lessee written notice of any such payments, mes, or costs ,

15.2 Permitted Lessee_ Encumhtances ~~see .shall have the right from time to time, at its ®le discretion (but upon at least thhty (30) days' pnor written notfoe to the City enclosing a copy of all of the proposed notes. deeds of trust;. assignments and other documents evide.ncing_the amount o.fthe p1oposed indebtedness or loan a,id the agreeJn.ents concerning repayment, discharge, and security therefor substantially in finalform), to encumbe1 Lesseets interest in the-leasehold estate created by this Lease Lessee also without prior notice may encumber-~r lease Les~ee's ti ade fixtures. Lessee's equipment, .and Les11ee'$ q:thet personal 12 9.i
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property, by one or more mortgages, deeds of trust, or other security instrument (including, without limitation an assignment ofthe 'rents, issues, and profits generated on or by the Premises) constituting liens on the leasehold estate created by this Lease to secure repayment of any loan to, and associated obligations of Lessee (Any :iuch mortgage deed of trust,. or other seetJrity instrument and any obligation relating thei eto is hereinafter referred to as a ''Leasehold Mortgage" A Leasehold Mortgage mcludes all notes, deeds oftrust, assignments, and other documents evidencing the amot,tnt of an indebtedness or loans and the agreements concerning the tepayi;nent, discharge, and security therefor The mortgagee or beneficiary of such Leasehold Mortgage is herein referred to as a "Lender'' ) Lessee shall p;rovide. to the City, together with said thirty (30) d,aysf prior written noti,ce where required by this paragraph, Lessee's certification of the name of each existing Lender and the current dolla1 amount of the obligation secured by each existing Leasehold Mortgage Lessee shall have no right to require the City to encumber the Citys fee interest in the Property. All Leasehold Mortgages shall be subprdinate to this lease,

15. 3 Lender's Protection Anything hereinafter contained in this paragraph 19 to the contrary notwithstanding, a tender shall not be ep.titled to aoy notice or copy of any notice from the City to Lessee umier this Lease, and a Lender's consent shall not be required pursuant to the provisions of tlus Lease hereinafter set forth,. unless the Lender has provided, by written notice to the City. the address or addresses to which such notice, copy of such notice, or request for consent shall be sent, which address or addtesses may be changed by the Lender from time to time by written notice to the City Lessee shall promptly provide the City with a fully executed, complete copy of any Leasehold Mortgage and ~my and all amendments thereto, Each Leasehold Mortgage shall contain a provision that all notices of default, foreqlosure, apd sale shall be given to the City as well as a copy of all reconveyance documents when a Leasehold Mortgagee has been paid off. During the continuance of any Leru;ehold Mortgage and until Jqch time as the lien of any Leasehol(l Mortgage has been extiqguished, the following provisions (hereinafte1 "Lender Provis10ns") :shall apply. •
1$.J 1 Notwithstanding any default by Lessee in the perfonnance or observance of any agre~rnent covenant, o:r condition of tlus Lease. on the part ofLessee to be performed or observed, the City shall have no right to terminate this Lease t1nless an event of default shall have occurred and be continuing, the City shall have given Lender notice of such event of default. and Lender shall have failed within thirty (30) days a,fter Lessee's .right to cure penod has expired to remedy such defat.ilt or acquire Lessee"s leasehold estate Qreated hereby or commence foreclosure or other appropriate proceedings in the natµre thereof all as set forth in this Paragraph 15. 15 J,2 Lender .shall have the right, but not the ob1igation, at any time prior to termination of this Leas_e, to pay .all of the rents due hereunder, to effect any insurance, to pay any taxes and assessments, to make any repairs and improvements, to do any other act 01 thing required ofLessee hereunder, and to do any act or thing not in violatiqn of the provisions of this Lease which may be necessary ,and proper to be done in the performance and Qbservance of the agreements, covenants, and conditions be1 eof to prevent tenmnatmn of this Lease All payments so made and all things so done and performed by Lender shall be as effective to prevent a 13 9.i
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.. ..
termination of this Lea.seas the same would have been if D;1J1.de, don.e; ~ performed by Les$ee instead ofby Lender
IS. 3. 3 Should any event of default under thi$ Le~se occur; the City shall take .no action to temrinate this Lease or exercise any other retnedy hereunder uni~ it first gives ootice of such event or default to Lender and, if such event of default is a failure t0 pay a mon.etary obligation ofLessee, unless Lender shall fail to cure such default within thirty (30) days after such notice~ or, if such event of default is not a failur~ to pay a monetary obligation of Lessee. the City shall take no action to tenninate·this Lease or exercise any other remedy hereundenmless Lender .shall fail, wi~ ·sixty ( 60} days of receipt ofsaid written np~ either to remedy such default or, if such default cannot be cured by Lender without Lender obtaining possession of the P1 emil;es or title to Lessee's leasehold estate, to obtain title to the leasehold estate in lieu of foreclosure, or to commence foreclosure or other appropriate ·procee@lg~ in the ~tut.e tb,ereof and thereafter diligently pros~ such proceedings to. completion. in which C4$e such event of default shall be remedied or deemed remedied •n accordance with this Lease; provided~ however, tbat Lender shall mail .or deliver .to the City a duplicatce copy of any and all written notices and documents pert1limng to obtaining title in lieu of foreclosure or to foreclosure ot such o~ a,ppmpr1-e proceeding. wlucb Lender may from time .to time give to or serve upon ~ssee and such copy sh.» be mailed or delivered to the City at the same thµe ~ch notices or documents ate given or serveo by Lender. All tights of the City to te.tminate this L,ease as the result of the occurrence of any such event of defaµ1t shall be subject to, and cQnditioned upon, the City having fitst given Lender notice of such event of default and Lender's having failed to remedy such default or acquire Lessee's leasehold estate created hereby or conu.nen,i;e fo~~e or other appropri.ate proceedings in the nature ther~of as s,;t forth in an.d within the time specffi.«t by thi$ subparagraph
15 3 .4 Any event of dtfault under this Lease which in the nature thoreof.cannot be remedied' by ~der or caunot be remedied without Lender .obtainmg possession of the Premises shall be deemed to be remedied if (1) within sixty (60) days • receiving notice from the City setting forth the nature of such event of default, or pripr thereto, Lender shall ha,ve acquired Lessee's leasehold estate created hereby or sha1l have commenced tbreoloae or other appropriate proceecUfigs in the nata,re thereof, (2) Lendei shall diligently prosecute any such proceedings to completion. and (3) Lender shall have fully cw-ed any other event of def-ault arising nom iailure to pay or petf'opn any monetary obligatio.ns hereunder within. such 60-day period and shell thereaftei' continue to perform all such mo~etary obligations in acc:;ordance with Ute tenns of this L~ase, and (4) Lender shall, after·gairting,possession ofthe Premises, perfurn,. all other obligations of Lessee aa and when the same are due in accordance with the te1ms of this Lease ls 3. 5 If Lender is prohibited by anv process or 1ujunction issued by any court 01 by reason of any aetion by any court having jurisdiction of ~y banktuptoy or insolvency procee(iing involving Lessee from conunenci11g or pros~uting foreclosure or other appropriate proceedings in .the nature the~ot: the times specified in this Lease .for commencing or prosecuting such foreclosure ot other proceedi~ shall be extend.ed for the pe110d of such prQhibitiou, 14 9.i
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provided that Lender shall have fully cured any defat1lt in the payment of any monetary obligations ofLessee under this Lease and shall continue to pay currently such monetary obligations as and wh~n the same fall due.

15. 3 6 The City shall mail or <ieliver to Lender a duplicate copy ,of any and all notices in writing pertaining to a breach of a covenant 01 condition of this Lease or to any default of Lessee hereunde1 which the City may from time to time give to or serve ppon Lessee pursuant to the provisions of this Lease, and such copy shall be mailed or delivered to Lender at the same time such notices are given 01 served by the City. No such notice by the City to Lessee hereunder shall be deemed to have been given unless and until a copy thereofshall have been mailed to or delivered to Lender.
15 .3. 7 Foreclos11re of a L~ehold Mortgage, or any sale thereunder, whether by judicial proceedings 01 by virtue of any power contained in said Leasehold Mortgage, or any conveyance of the leasehold estate created hereby from Lessee to Lender through, or in lieu of, foreclosure or other appropriate proceedings in the nature thereofshall not require the .consent of the City 01 constitute a breach of any provision of or a default under this Lease., and upon s~ch foreclosute, sate; or conveyance the City shall recogruze Lender or any other such foreclosure sale purchaser or such transferee, as Lessee hereunder (but only if duplicate copies of all written nonces and documents given to and served upon Lessee have been provided to the City as· required by this Lease). In the event Lender becomes Lessee under.this Lease, Lender shall be liable for the obligations of Lessee only for th.e per10d of time that such Lender remains Lessee, and the City shall not unc easonably withhold its consent to any su.bsequent ~ssignment of thjs Lease by Lender.
1 $ 3 .8 Should the City terminate this Lefl.se by reason of any default by Lessee here4nder, the City shall, upon request by Lender given within thirty (30) days after such termination, itnmedtate1y execute and deliver a new lease of the Premises to Lender, or its nominee, purchaser. assignee, or transferee, for the remrunder of the tenn of this Lease with th.e same agreen1ents~ covenants, and conc,iit.ions (,xcept for any requirements wW.eh have been fulfilled ~Y Les!!ee pnor to tertninatio.n) as ate contained h~rein .and any amendments hereto and with priority equal to that hereof, provided, boweve1, that Lender shall promptly cure any d~lts of Lessee susceptible to cure by Lender and shall ~s a condition to ex¢cution and delivery of such new lease pay to the City any and all tent and all other sums, to the ~ent such rent .and other $U111S are reasonably ascertainable, payable to the City by Lessee pursuant to this Lease and which absent termination would have accrued during the period ·from the date of termination of this Lease to the date of execution and delivery of such new· lease, and shall agree in such new lease to pay promptly upon reasonable determihatton and written notice frornthe City all other rent and other sums that, absenttennination, would have accrued during such period Upon execution and delive1y of such new lease, the City, at the expense of the Lender or any new lessee, as the case may be, ~hall take SQCh action a$ shall be ner;essary to remove Lessee named herein from the Premises IfLende1 assigns such new lease in acco1dance wt~h the terms. of this paragraph, Lender shall be relieved of all bability arismg out of acts 01 events (lCCllmng after the date of the . , 15 9.i
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assignment
15 .3. 9 The City and Lessee shall cooperate in including in this Lease by suitable amendrnent from tun~ to time any provisions which may reasonably be requested by any propo~ed Lender for the purpose1 of im.plementmg the Lender protecticm provi$ioos contained in this Lease and allowing such Lender reasonable means to protect or preserve tiµ, lien of any Leasehold Mortgage on the o.ccurrence of a default unde1 the terms of this Lea$e The City and Lessee each agree to execute and deliver (and to, acknowledg4'1 if necessary, for recording purposes) any agreement nec;,essary to effect any si.wh amendment, provided. however, that any such atnendrnent shall not in an,y way affceet the term or r-ent under this Lease 01 otherwise in any material respect adversely affect any rights of the City hereunder,
15,310 Nothing in this subpa1agQ1Ph shall p1event the Ci~y from taking ·whatever action it deems reaso.t)able or approp~jate pursuant to app~ble codes and ordinances to remedy health or safety violations occurring.on the Property
15 .3 _ l l All protections afforded aey lender undet this Sectiop and its subsections shall be afforded to any franchisor of either restaurant in the project, ptovided the fianchisot has given notice to the Clt;y,. the address or addresses to which such notice, copy of such notice, I>r request for consent shall be sent, which address or addresses may be changed by the :franchisor from time to time by written notice to the City
16 Assignment.and Sublettmg

16.1 Geneiat Except as hereinafter in tlu$ paragraph expressly provided. artd except as expressly provided in Paragraph 15, Lessee shall not, either dirdy or indirectly, volun~rily or involuntarily, assign, hypothecate,. encumber. or transfer this Lease or any interest therein or right granted thereby or sublet the whole or any part of the Premises, or ltcense the use of saine, or su;ffer any other person or entity to occupy, use, or manage ( except managemeQt by Lessee's employees) the same, in whole or In ,part, without the prim written consent of the City .evidenued by resolution ofits City Council. which consent ~ not unreaa0llably be withheld.

The standards f.or reasonable approval are ~s follows.
a Financial soundness. at least equal to a financial net worth or five million dollars.(SS,ooo,eao oo)
b Demonstrated experience and success in owning and operating a restaurant, similar to that being assigned a sublet
c. Agreement to operate the restaurant m a manner at least equal to the operating st.andards in this Lease, and in accordance with the Disposition and Development Agreement Neither this Lease nor any tntere~t therein or right granted thereby shall be assignable or ~~abLsl'wpcl 16

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transferable in proceedings in attachment, garnishment, or execution against Lessee, or in voluntary or involuntary proceedings in 'bankruptcy or insolvency or receivership taken by or against Lessee or by any process of law and possession of the whole or any part of the Premises shall not be divested from Lessee in such proceedings or by any process of law, without the prior written consent of the City evidenced by resolution ofits City Council. Except as hereinafter provide4, .no occµpancy or, use of the Premises or exercise of any right granted by this Lease by #UlY prospective transferee, sublessee, or assignee shall occu1 before the City's written consent to the tia:nsfet, sublease, or assignment. Any breach of the pwvisions of this paragraph shall constitute a default and shall cause this Lease to termi~te immediately at the option of the City without further notice to Lessee. Lessee shall not be deemed to be in default if Lessee causes an attachment or execution to be removed within fifteen (15) days of levy, or if Lessee causes an involuntary proceeding in bankruptcy to be dismissed or receiver to be removed within thirty (30) days of the date of commencement of said proceeding or appointment of said receiver • 16 2 Definition An assignment within the meamqg of this paragraph shall include, but is not funited to, the following
16,2.1 IfLessee is other than a corporationa the transfer of the Lease or any of Lessee•s interests therein to a corporation that is not wholly owned or corttrolled by Lessee;

16.2 2 If Lessee consists of more than one person or entity, or a combination of a person or persons and an entity or entities, a purpo1ted assignment, voluntary, involuntary, or by operation of law of any interest in the Lec1se from one or more suoh persons or entities, to any other person or personsJ or entity or entities whether oi not such other per:ion or persons or entity 01 . entities are Lessee,
l6 2 3 If Lessee i& a partnership, a withdrawal or change, voluntary, involuntary or 1:>yoperation oflaw, of any general parlr1er, or the dissolution of the partnership~ 16 24 If Lessee is a corporation, any disSC\ltttton, merge1, consolidation.: or other reorganization ofLessee, or the sale or other transfer of a controlling percentage ofthe capital stock ofLessee, or the sale of more than fifty percent (50%) of the value of the assets of Lessee whether in one conveyance or cumulatively in the aggregate in more than one conveyance The pfuase ''controlling percentage" means the ownership or, and the right to vote, stock posses.sing at least 1ifty pei cent (50%) of the total combined votmg power of all classes ofLe~see's capital stock issued, outstanding, artd er,ititled to vote £or the election of directors. This subparagraph shall n~t apply to a corporation the stock of which is traded through an exchange or over the counter or to any transfer, distribution, or contribution ofa controlling percentage of the capital stock ofLessee (i) by any corpmate shareholder of Lessee to one or more of its own shareholders, or (ii) by any shareholde1 of Lessee to another corporation the capital stock of wluch such shareholder owns a controUing percentage Le~see shall give the City written notice of such transfers, distribution, and contribution
l7

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16.3 Consent to Assignment The Cityis consent to or waiver pfits option to temmiate. this Lease m. the event ofa default® account of any assignmen~ trans&r, occupation, or use requiring prior written City con.sent shall not be con~trued or deetned tQ be a waiver of the restrictions hereinabove contain~d or to be a eonse.nt to or waiver of objections .to any subsequent assigmn~ trapsfer, or occupation 01 use by another person The City's consent to a proposed assignment. or subletting shall not be deemed .effective unless and \lntJi there is tiled with the.City fully exewted and coJilplete copies of all doci:mients used to e.ffectUate the assignment or subletting and a document in iecordal>le tbnn signed by the assignee whereby assignee expressly shall assume all covenants and conditions of tlis Lease. Lessee shall not be relieved of any obligations undet this Lease by reason of any as~ent or transfer :unless the City in. its .sole and Q.bsolute discretion pmvidesby re~lutionthat Lessee shall be relieved of said obligations. 16 4 Speeial Circumstances Lessee and the City acknowledge and agree that the dghts retained by ·atld .F.P1ted ~ the City pursuant to this paragx aph coll$titute il m,1terial part of the oottsiderati.on for entering into this ~ase and constitute a material and substantial induQemeot to the City to enter into this Lease at the rental. for the tenns, and upon the other covenants and oonditions contained in this Lease, and that the acc;:eptability of Lessee, and of any sublessee, assign~e, or other transferee of any right m interest in this Lease; involves 1he ~ercise of broad diseretion, by the City in protecting and promoting the interests of the City. Therefore, Lessee agrees that it shall not he unreasonable for the City to withhold:its consent to an, assignment, sublease; or other trartsfeJ by Lessee in the ~vent that the City makes the reasonable, good faith determination that the making of s1,1ch proposed assignment. S1;1blea.se, or other transfer is not in accordance with this Lease, or that the p.ropos·ed ass1gnee, sublesse~. or other tr~ will not use the P1eniises 01 otherwise maintain and/ot operate the Premises in the manner provided in this ~se.

16.5 Qther-Prgvisions A12plicable to All Sµbleates and Assigum.en,ts. Unless otherwise provided by resolution adopted by the City Council.; no subletting or assignment, even with the O:tY'a consent. shall relieve Lessee ofits rental or ,other obligatio~ to be performed by Lessee h~der, and Lessee shall .continue to be liable as a pnncipal and not as J guarantor or surety, to ti,.e same extent as though no assignment or sublettuag had been. niade, Lessee immediately and irreVQcably assigns to the City, as security for Lessee's o\:>ligadons under this .

Lease, all rent from any subletting of all or a part of the Premises as permitted by this Lease, and the City, as a11signee and as attorney-in-fact for ~see, 01 a receiver forLessee appointed on the City's application, may co.lleot such rent and ~ply it toward Lessee's obligations under this Lease, ptOV1ded, h9w-ever, that, until the ocewrence ef an act of de(a1,1lt by Lessee; Lessee shall haw the right to collect such rent; further provided that such assignment to the City .shall be auhordin,ate t9 any assignment made pursuant to an approved Leasehold Mortga~e (see Paragraph 19) and shall not defeat the rights .of any Lender who holds an assignment .of r~nts as security, Lessee agrees­ that it shall immediately notify the City in writing of any can..cellation or !$lJl:render of any subiease NQ lllaterial modification of any sublease, assigotnen.t or other transfer after the City1s initial C(}I)Sent shall be effective without the prior written approval of the City as evidenced by resolution of1ts City Council, wl:uch consent shall not be unreasonably withheld Th~ t-est of 18 9.i
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11unreasonableness" shall constitute the City's determination that such action by the Lessee shall not render the Project, Property, and/or the restaurants' operation below the operational standards of Lessee.

17. Hazardous Substances Fumes and Odors: Disposal ofOatbage: Annoying and Injut ious Conduct No goods, merchandise, che:micals, or materials shall be kept, stored or sold in or on the Premises whith ar-e in any way explosive or hazardous, and no offensive or dangerous tiade, business Ot occupation shall be carried on therein or thereon, and nothing shall be done on the Premises, other than as is provided for in Paragraph 3 of this Le~e. which will increase the rate of or suspend the insurance upon the Premises or other structures ofthe City► and no machinery or appat'atus shall be used 01 operated on the ·premises which will in any way injure the Premises or adjacent buildings~ provided, howevei, that nothing in this Paragraph 21 contained shall preclude Lessee from bringing, keeping or usmg on of about the Premises materials, supplies, equipment and machinery as are appropriate oi customary in carrying on its said business, or from carrying on its business in all respects as is generally usual .. Lessee agrees to conduct its operations upon the Premises so as to reduce to the minunurn that is reasonably practicable the emanation from the Premises of fumes and odors. Lessee agrees to handle and dispose .of its trash, garbage ,and refuse in a sanitary manner and not to pile any boxes, cartons, barrels, trash, debris ot refuse in 01 about the Premises-Lessee shall provide its own facilities within the Premises for the cleaning ofgarbage cans and shall make adequate provision upon the Premises in order that no r~se, containers, boxes, cartons or the like will be visible (Tom ~y direction outside the Premises. Lessee shall not, without the advance written consent of the Cjty, install any exterior clecoratio.ns or painting or lnstall any radio or television antennae, loudspeake1s, sound amplifiers, or any devices on the exterior walls of the Premises. No loudspeakers, radios or other means of broadcasting shall be u:sed by Lessee without the prior written consent ofthe City, in a manner that would allow the devices to he heard outside the Premises The prohibition on hazardous substances in this paragraph should not apply to fuel, solvents, cle~g compounds and chemica:ls. detergents, paints, pesticides, fertilizers, and other substances commonly utilized by a restaurant in the ordinary course ofbusirtess. provided. that such substan.ces are properly and safely stored and used, in compliance with all applicable laws.

18. Defaults
18 1 Events of Default The City1s rights under this paragraph ate subject to the Lender provisions of this Lease_ It is mutually covenanted 11nd agreed and this Lease is made upon the ccmditiort. that ifthe rents or other sums which Lessee herein agrees to pay, or any pait thereof. shall be unpaid on the· date the same shall become due and payable, or if default be made in any of the other tenns, agreements, conditions or .covenants herein contained on the part of Lessee, or should Lessee abandon or cease to use the Premises for ·putpo$es required by this Lease at any time except when prevented by fir~. earthquake, wars, strike, gove11llliental intervention, or othe1 reason beyond it'ii control, then and in any such event, at its option, the City may declare this Lease forfeited, whereupon the City may exercise all rights of entry and te .. entry upon the demised PreIDises.

Q~Oillo$11.ascs1Habl.sP .wpil 19
,
' J •• 1_J

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18.2 Cure Period Lessee shall no.t bE: consideu~d to be in default fot purposes of this paragraph until the ~iration of ten ·(l 0) days (in the e&se af a failure iri the payment oi rent or other sums herein provlded to be made. by Less.ee) or thirty (.30) days (in all &th.er instance-s) after written notice by th.e City to Lessee and if, during such t'(}lt (10) day Qr thi:rty (30) day perio~ u the case may be, such failure, or condition in violation of the provisions ofthis Lease shall ha.Ve been cwed or obviated by Le-e. then upon paym_ent, petfotmance or satisfaction of such term, covenant er conditio&,. any right of the Lessor to terminate this Lease or re-enter upon the demised Premises by reason of such failure shalt cease. If any ¢onditio:n (except failute to pay rent or other sums) which would entitle the City to declare a default is of such nature that it cannot be remedied within thirty (30) days, such ·declaration of default, terltlination and nght of re,-entty or exercise of other rights of Lessor, shall be postpQned as 1¢ng as the Lessee shall have commenced the elimination of such condition within said thirty (30) days and shall then be continuously and diligently proceeding reasonably and in good faith to ()Ure the same. 19 Measure ofpamages. In the event ~J the City terminates this Lease and Les.sees right to possession ofthe Premise&, m the manner provided by law; the City shall be entitled to recover from. Lessee possession of the Premises and the following'. 193. l l'he worth ·at the time of award of th~ unpaid rent and sums equivalent to rent required to be paid by Lessee under this Lease that had been earned at the time of tennination.
19 .3-2 The worth at the time of award ofthe, amount by which the unpaid rent arul sl.l.Jtlil equivalent to rent required to be paid by Lessee under the Lease that would have been earned after wrmina.tion until the time of award e,«:eeds the amount of such ,ental fo:ss that Lessee proves coutd have been reasonably avoided;
19 3 3 The worth at the time ofa.ward of the amount by which the unpaid rent and s1.arns equiv~ent to rent required to 1>e paid by L~see under this Lease for the balance ofthe term after the time of award exceeds the {lID.OUilt of such rental loss, that Lessee prpves c<ndd be reasonably avoided~ and
19 J .4 Other amounts pennitted by law to compensate the· City for detriment ptoxnnately caused by Lessee's default or which in the ordinary course of events would be likely .to result therefrom, includ~g. but not limited to:, the .casts and ~enses incur-red by the City (i) in retakittg possession of the Premises., (ii) in ,cleaning and making repair of "1d alterations to the Premises reasonably necessary to 1 etum the Premises to good condition for uses pentutted by ·this Lease and .in othe.rwise preparing the Premises fat reletting,. (iii) m removing► transporting, and storing any of Les*s pto.petty left at th.e Premises although the City shall have no obligation to remove, transport, or &tore any of such property, and (iv) in reletting the Premises., including but not linnted to, brokerage conunissions. advertising costs, afid attorneys' fees 20 Right of Enta as Agent In any and all eases ip which provision is made for the 20 9.i
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temtination of this Lease, except by forfeiture, or for exercise hy the City of right of entry or reentry upon. the Premises, or in ca$e of abandonment ot vacating of the Premises by Lessee, and the City may not elect to invoke a forfeiture of said Lease, Lessee hereby irrevocably appoints the City the agent of Lessee to enter upon the Premises and remove any and all persons and/or property whatsoever ,situated upon the P1 exnises, and :Place all or any portion of said property, except such _property as tnay be forfoited to the Ctty, in storage for account of and at the expense of Lessee~ and in such case the City may telet the Premises upon such terms asto it may deem fit, and if a sufficient sum shall not thus be realized after paying expense ofsuch reletting artd collecting to satisfy the rent and· other sums herein agreed to be paid, LC-$see agrees to satisfy and pay aq.y deficiency, and to pay expenses of such reletting and collecting, and Lessee hereby exempts and agrees to save harmles$ the City from any ·cost, Joss or damage arising out ofor caused (except to the extent caused by the active negligence ofthe City or its officers. agents. employees or contractors) by any such entry or re-entry upon Said Pt-emises and/or r®}oval (}f persons and/or property and storage of such property by the City or its agents 21 Surrender and Holding Ove1. Lessee cov<mants that at the expiration of the term of this Lease or upon its earlier teimination it will quit and sunender the Premises in .good state and condition, reasonable wear and teat and damage by the elements excepted given the nature and .age of the improvements. The City ·shall have the right upon such termination to enter upon and take possession of lill the Premises Should Lessee with the City's consent hold over the use of the Premises after this Lease has been tenninated in any manner, such holding over shall be deemed merely a tenancy from month .. to-month and at a rent to be :fixed from tim~to-time by the City, payable monthly in advance, but otherwise on the same tei:ms and con,ditio11s as herein .set forth; provided, however, that rent may be fixed by-:the City from tim."e-to .. tune by givi_pg to Lessee at le8.$t thirty (30) days' written notice of said rent prior to the first clay of the month. It is understood and .agreed that nothing contained in this Lease shall give Lessee any :right to occupy the Premises at any time after expiration of the term of this Lease or its earlier terminatiott. and that this Lease shall not create any right in Lessee for relocation assu:;tance or payment from the City upon expiration or the term of this Lease or upon its earlier termination or upon the tennination of any holdover tenancy pursuant to this paragraph Less.ee acknowledges and agrees that upon ·such expiration or tennination. lt shall not be entitled to, and expressly hereby waives, any relocation assistance or payment pursuant to the provismns of Title- l, Division 7, Chapter 16, of the Government Code of the State of California (Sections 7260, et seq) and pursuantto aity other law or regulation effective now or at any time ln the future with respect to any relocation of its business or activities upon th~ expiration of the term of this Lease or upon its earlier tenninafion or upon the tertninati3n of any holdovet tenancy pur$uant to this paragraph

22. Duty to Guard Goods :Lessee !iliall assume the $Ole responsibility for the safekeeping ofand risk ofloss to all property, stock merchandise and equipment stored or located upon or • • used in cooneqtion with the said Premises
23 Waivers. No waiver by either party at any time of any of the te1ms, conditions or covenants or agreements of this Lease or of any forfeitme shall be deemed or taken as· a waiver at 21 9.i
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,any tim,e ther~er of the siµne or ofany other term, condition 01 covenant or agrown~t hereiiJ contained; .nor of the strict and prompt perform$1:oe thereof No delay; ~lure or omission of the City to re-;eoter the Premises or to exercise any right, power or ,prlv.ilege, or option, ansing from any default, nor any ~bsequent acceptance of rent then ot thereaft.er accrued shall impair any suoh right, power, privilege or option or be construed a waiver of any sµch default .or relinquishment thereat: or acquie$Cenc¢ therein. and no notice by the City .shall be required to restore or revive time as of the essence after wai,ver by the City of default in one or more instance& No option, right, power1 remedy or privilege of the City shall be oonstnied as being exhausted by the exercise thereofin one or more instances It is agreed that each and all ofthe rights, p~s, optioni or remedies given .to the City by this Lease are ~wnulative, and no one of them shall be ex~lusive of the other ot exclusive of any remedies provided by law, and that exercise of one right, power, ·option or remedy by the City shall not impair its rights to .any other ri,ght. power option or remedy.
24 _Right to IliSJ)eot Premises. The City or its duly authorized representatives. agents and 9ther persons for it, imty enter upon the Premises at any and all reasonable times and upon reasonable prior notice (except in emergencies) during the term of this.Lease for the purpose of determining whjther or not Lessee is eorn;plyjng l\iith the wnns and conditi-Ons hereof or fur an.y other purpose incidental to rights of the City The City shall not unreasonably interfere with th¢ use and occupancy of Lessee or suhlessee during such entry . . 25 Agent for Service of Process, It is expressly agreed and understood that if Lessee is not a resident of this state; or is an JSSOoiation or partnership without a meniber or partner residen.t of this state, or is a foreign corporation, then. ip any such event L~ssee ~hall ffl,e with the City· a designation of a natur~ person residing in the county of San Mateo~ State of Caltfort1U4 giving the person's name. 1 es4dence and business address as Lessee's agent for the ,purpose of iervioe .of proces$ in any court action betWeen~see and the City arising-Out of oi: based u,pon this Lease, and the delivery to such agent of a copy of any pr~ess in any such action shall constitute v~d service upon such Lessee, and it is further expressly agreed, covenanted .and stipulated that if for any .. eason service. ofsuch p.rooess upon such agent is not ·possible. the:n in such event LCJSee may be personally $.erved with ,such proee&$ out of this state, and that such servic~ shalt constitute valid service upon such L~ssee; and it is further expressly agreed that Lessee is amenable to the process so served, submits to the jurisdiction of the court so acquired, and waives any and all objection ~ protest thereof

26. Estoppel Certificates Lessee or the City, as the ~se. rnay·be, "$hall execute, acknowledge and deliver to the othei and/or Lender, promptly upon request, its certificate ~ing (a) that this Lease is unmodified and in full force and effect ( or, ff there have been modifications, that this Lease i.:s in full fure:e and effect. as-modlfied, and stating the modifications), (b) the dates, if any, to which the rent have been paid, ( c) whether there are then existing arty charges, offsets or defenses against the enforcement ·by the City or ;Lessee ofany .agreement, covenant or condition her~f on the part ofthe City or Lessee to be pe1fonned or obs.erved (and, if so. specifying the same), anq ( d) whether .thet e are th.~n existing any defaults by 122

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the City 01 Lessee in the performance or ol,)servarice by the City 01 Lessee of any agreement, covenant or condition hereof" on the part of the City or Lessee to be perfonned or observed and whethei any notice has been given to the City or Lessee of any defil.\llt which has not been cured (and, if so, specifying the same). In addition, Lessee at the reasonable request of the City, promptly shall instruct each Lender forthwith to provide to the City written certification of the current dollai amount or the obligation se.cUl ed by each existing Leasehold Mortgage to which Le~see is a party.

27. Force Majeure In the event that Lessee or the City is delayed, directly Or indirectly, from the performance of any act or thing required to be done or performed under the tenns or conditions hereof by acts of God, accidents, fire, floods, mclement weather, governmental action, . restrictions, •priorities or allocations of any and all kinds, ·strikes or labor difficulties of any and all kinds. shortages of or delay in the delivery of materials, acts of war, .riot and civil 'commotion, or by an,y othe1 cause beyond the control of Lessee 01 the City, as the case may be, such failure shall not be deemed to be a breach of this Lease or a violation of any such covenants· or conditions and the time within which Lessee or the City must perfonn any such act shall be extended by a period of time equill to the period of delay arising from any of such causes Notwithstanding any provision of this Paragraph 30 or any other provision of this Lease to.the contrary. it is understood and agreed thl:\t there shall.be no abatement ot: ordelay in the commencement ot payment of any sum due to the City under this Lease- Le&see shall. ·however, he entitled to sa1d extension only upon satisfaction of the following conditions (l). not later than ten (l 0) business days after Lessee acquires knowleclge of such a delay, Lessee ·Shall give written .notice thereof to the City, setting forth the facts giving .rise to such delay and the ·extension that Lessee believes may be necessary and is requesting Qn account ofsuoh delay, (2} the City shall within twenty {20) days of receipt of said written notice from Less~ state to Lessee by written notice Whether the Lessee's request for extcmsion is granted and, ifso, the number of (jays of extension; and (3) no extension shall exceed thirty (30) days~ and for any fu.rthe1 extensions for a particular delay Lessee shall give additional such written. nonces to the City not more than twenty (20) days after expiration of the last effective extension pertod granted by the City with respect to such delay, and the City shall reply thereto Within the time and in the manner pl ovided in (2) above lf the City fails so to reply to .any ofLessee
1 s Wl itten notices w1ihin said twenty (20) day period, the City shall be deemed to have granted to Lessee the shorter of (I) the period of ~ension requested by Lessee and (2) thirty (30) d~ys. The City shall not unreasonably withhold 01 delay the granting of any such extension requested by Lessee
28 Eminent Domain Proceedings
28 1 Total Taking. If the whole of the. Preni1ses should be taken by any public 01 quasi-public authority under the power or threat of eminent domam for any public use 01 purported public use; then, in such event. on the earlier of the date title to the Premises vests in such public 01 quasi-public authority, or the date on which said public or quasi-public agency takes possession of the Premises, this Lease shall terminate with respect to the City's and Lessee's future obligations hereu.nder, but 'said termination shall not affect the City's and Lessee's rights to Qc\Cibt$\Sa.n~ll'labLs~ wpd 23

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any com.pei:1sation or damages fot, on the accO'Unt of, or arising out of such taking For any period of time prior to termination during whieh Lessee (involuntarily on account of such taking or a.ny proceedings celate.d thereto) :does not have full use of the Premises, the annual base rent due hereunder shall be equitably reduced In the event of such a taking, subject only to contrary provisi~rts i,n any loan documents ofLesse~•s Lender, the City shall be entitled to receive all sums in the award of dam.ages and compensation arising by reason of s.ucb taking except .that Les$ee and/or any Lender shall be entitled to recover an amount therefrom equal to the fair market value ofLessee's leasehold interest in the :eremises (as of the date of valuation of said taking).

28.2 Partial Talcing: Tm,nination If a substantial portion of the Premises should be ~n .so as to impaiI materially the use of .the Premises as contemplated by the Leas~ then on the earlier -of the date title to such portioo of the Premis~ vests in such public or quasi-public. agency. or the date on which such public or quasi-public agency takes possessiorJ of such portion of the ·Premisru; and Lessee no longer bas .full possession of such, this Lease shall t-enninate with re$pect to th~ Citts and Less~c's future obligations 11.eumnder~ but said termtnation shall not affect the City1s or ~seets rights to any compensation Ot damages for, _Qn account of, .or arising out of such taking For any period (as .ofthe date of valuation of said talcing) of time prior to tennination during which Lessee (involuntarily on account of $Uch taking any proceedings r~lated thereto) does not have fiJI1 use· of the Premises~ the annual base rent dije hereundet shall ,be equitably reduced In the event of such a taldng. subject t-0 tonttary provisions·in any1oan document of Lessee'~ Lender, the City shall be entitled to receive all St.Jnis in the award of dam~ges tllld eom~nsation ari~ing by reaso.n of such taking except that .L~see· and/or any Lender shall be entitled to receive an amount therefrom equal to the fair m:arket value of.Lessee's leasehold interest in the Premises {as of the date of valuation of said taking) ''Compensation .IUl(I damages" fur the purpose of this paragraph shall include all compensation and damages inoluding severance damages witbout and bof'Qre any reduction for any benefit tQ the retmdrtder-

28. 3 '.Partial , Taldng. No Termina~on, Reconstruction If a taking shall occor which doe~ not resµlt in termination of this Lease, but which require{; the pqrtion of the P1emises not so taken tQ be teconstn.J.cted and restored so as to be constttut~ an architecturally co.nwlete unit suital)le for use by Lessee. all compensation. and damages payable for 01· on tcC0Unt ot $UCB taking shall be p,ayable to Lessee and/or its Lender and shall be used to recon~ruct and restore the portion ot the Premises not so taken to !'-ll ~ohitc;cturally complete unit suitable for the use by Lessee~ _provided, howeve,, that Lessee's and/or Lender'.s obligation so to reconstruc.t $1d restore the Premises shall he limfted solely to the amount .of such co:Mpensation and damages made available to them pursuant to this paragraph, and annµ:al base rent payable by .Leasee hereunder 1ball be equitabiy reduced. The balance of any compensation and damages remaining after1he rooonstructt.on and restoration contemplated by nus paragraph shall be distributed to the City, subJect to con~acy _p1ovisions in axiy loan docu.ment of Lessee~ Lender, except that Lessee and/or Lender shall be entitled to receive an am,aunttherefrom equlll to the fllir market value of Lessee's leasehold interest in the portion of the P1emises taken {as oftbe date of vall,18.tion of said taking) 28 4 Partial Taking: No Termination: No Reeorwructlon. lf a takfug shall o¢cur 24 9.i
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which does not result in a termination of this Lease, and which does not require any portion of the Premises not so taken to he reconstructed and restored so as to constitute an architecturally complete unit suitable for use by Lessee, the pmceeds shall be distributed as per the last ·sentence of Paragraph 28 3
28 -S Taking ofLeasehold Estate No taking of Lessee's leasehold estate in. the Premises or any part thereof without a taking of the fee shall te1mmate or give Lessee the right to summder this Lease, nor excuse the taker of such leasehold estate, including any successor in interest thereto, from tun performance of the covenants for the payment e>f rent ·and other charges or any other obligations hereunder capable of performance by the taker of such leasehold estate, including any successor in interest thereto, after any such taking, but in such case, all compensation. and damages payable for or on account of such taldng shall be payable ~o and be the sole property of Lessee. During ' any period of time that Lessee is not in possession of the Premises, or any portion thereof as a result of the talcing of any pqrtion of its leasehold estate hereunder, but oi,.ly during such period oftiroe, (1) Lessee shall not be obligated to pay orin any way ·be liable for the payment of any rental .or to perform any of the other obligations or covenants othei wise to be performed by 1t hereunder with respect to, but only with respect to the portion of the Premises affected by such taking, (2) the City shall look solely to the taker of such leasehold interest, including the successors in interest thereto and any party then in possession of all or such portions of the Premise$ affected by such taking, for the payment ofrental and the petfonnance of the other obligations and covenants hereunder wrth respect to such portion of the Premises, and (3) as betweett City .and Lessee, City shall not forfeit or terminate this Lease for breach by the taker of such leaseholcl intere~t, including its successors 1n interest thereto and any party then in possession, ofany obligation' or eovem,pt hereunder, including the obligation to pay rental 28 t>· Relocation Benefits and Goodwill. Anything contained in this paragraph to the contrary notwithstanding, ·all ;compensation, damages, reimbursements or other benefits payable to Lessee or Lessee's subtenants, licensees and :concessionaires for .01 irt connection with any relocation, displacement, inability to relocate, loss of business or loss of goodwill resulting from or in .connection with any .taking covered by this paragraph shall be payable to and be the sole property of Lessee or Lessee's subtenants, licensees and con~sionaires, as appropriate. 28 7 Trade Fixtures and Equipment In the event of any tal<lng of all or any portion of the Premises, Lessee shall be entitled to 1·eceive all compensation and damages arising from such talcing and payable for or on account ofLessee•s t1ade fixtures, furniture and equipment at any time located on the portion of the Premises so taken. 28 8 Reduction in Annual Base Rent .Arbitration If the parties cannot agree upon the amount of any reduction ofannual base rent, as may be contemplated by this paragraph, the same shall 'be determined by arbitration conducted in accordance with the Commercial Arbittation Rules of the American Atbttratton .A:;sociation (the
0 Arbitratioi1 Rules
11 ), aJid judgment upon the
award rendered by the arbitrators may be entered in any court having jurisdiction The arbitration shall be by a single arbitrator chosen in accordance with the Arbitration Rtiles The arbitrator shall Q:,Cabto\Sen Cedoo~abLsF.'Wpd 25

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, JJ •
';. --'tt:·-:._~t.,•.,.·-~•,~· .-.~ '.,•'.•S.~ • .;_,·1o.,. _:;,,~{.:..- -.il•.;..~~~~,'w.( 'i~.:ti..,li!A.. -t:..:.,.~...._,.,. .• ..._. .... ;,_ l ·.,:, .:. • .r.... -~ ... - - .. -- have no power to ~()dify any of the provision$ of this tease and hisjuri'sdietiort-is limited accordingly Baoh party hereby consents to the Qtnry of judgment by ~y court havmgjuri~diction in accordance with the decision of the arbitrntor No change in the Arbitration. Rules which woutd deprive a party of the rights to he represented by counsel, t-0 present evidence, or to cross-examuie witnesses presented by the other party shall be effective in any arbitration proceeding :arising out of this agreement. Any arbitration provided fot hol'Qin shall be conducted in the County of San Mateo.
2~.9 Qity'sReservation of Power of Eminent Domain. Lessee ~oknowiedges the Citys reserved powex upon payment .of just o,ompens~tiQn to exercise iti power. of etninent domain as to the leasehold estate created hereunder; provided, however. that the foregoing ·acknowledgment shall not be deemed or construed to prejudice or waive.any rights of Lessee to. thallenge at object t-0 any attempt by the City so to exetcise such power. Notwithstanding the foregoing, the City _shall not exe.rofso its power ¢ eminent do.main for the purposes of allowing the restaurant(s) to he operated by the City, or~ other person 01 entity, for its ot theft proprieuuy benefit • •

29. Waiver ofOaims Unless the City is inviol!Jtion o-fthls Paragtaph. the Le$seehereby waives any claim against the City and its City Council, offi~;. agents or employees, fur damage or los:s caused by any claim,. suit or proceedings dnectly ol indirectly attacking the validity ofthis Lease or any part· thereof or right. granted thereby or .asserting any right -or interest in the Prenuse.s inco~istent with rights granted te Lessee by this ~ase, or by any judgment 01 awaid in any suit or proceeding decla.rlng tins Lease null. void OJ voidapl(\, or d*ying the .sarne, or any part thereat: from being carried out; provi,ded~ however, that sucli waiver shall not apply or run to llll}' damage or lo~ in any way caused by any suit Qt proceeding directly or indirectly attacKing the validity of this Lease whtch suit or proceeding is based in whole pr in part upoD, an alleged "confbct of interest" of any elected or =appointed official, offic.et, agent or tmiployee of the City or its City Coqn~il, including any trconfllct of inte~t
1 ~ or other ma.tt~r alleged to violate or violating
Callforrtla Government Code Sections 1090 or 1092 .. The C'fW and L~ each agree -that it shall not in any way attempt to have this Lease declat~d null ot void and that it shall 1 easonably cooperate with the other to defend the validity QfthisLease and .of the rights and obligations gtlUlted by this Lease,
;30 :Extensions of.Time the City shall have the right to grant reasonable extensipns of time to Le$'See for .anf puipose Qt foJ the performance of &J\Y obligation o-fi:.es~ee ~nder 31 Successors. Each and every of the pro-visions, agreements, terms, covenants and conditions herein contained to be performed, fulfilled, observed and kept shall be binding upon the successors and assigns of the parties hereto, and the rights hereunder, and all lights. privileges and benefits am.ing under this Lease and in favor .of either party sbwl be ava;ilabie in favor of the successors and assigns thereof; respectively; provided no assigmrtent by or through L-e$See in violation of the provisions of this Lease shall vest any rights in such assignee or successor. ~•~abLsfwpd 26

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32. City CounciL The term i•C1ty Council
11 as used in this Lease shal1 mean the duly elected
or appointed members of the C'ity Council of the City of San Carlos as presently constituted, or any successor thereof

33. Time of Essence. Time is hereby expressly declared to be of the essence ofthis Lease.

34. Notices Any notice requited or permitted to be given Lessee may be given to it at 3o fde;.1 RD iM . ~ ~Of!&d ~. '71//~rovided, however, that if Lessee shalt give notice in writing to the City of any change in said address. then and in such event such notice -shall he given to Lessee at the changed address specified in such notice Any notice permitted or requ1red to be served upon the City may be served upon it at City Hall 600 Elm Street, SlUi Carlos~ California 94070; provided however that if the City shall give notice in writing to L~see ofany change. in said addres~ then and 'in such event such notice shall be given to the City at such substituted address. Any 1.1otices, statements, and billings hereIJnder may be served upon a party personally by United States mail (registered or certified or e°"press), and shall be deemed to be given and received, except where a specific provision expressly prnvides that a notice shall be actually received. on the earlier of the date of actual receipt or the third business day follow~ng the mailing.
35 Memorandum of Lease. This Lease may be recorded at the option of either party The parties shall ex.ecute a Memorandum of Lease in form and substance as required by a title cotnpa11y insuring Lessee's leasehold estate or the interest of .any Lender and sufficient to give constructive notice of the Lease to subsequent purchasers and mortgagees, but the Memorandum of Lease shalt not be recorded until the time of the closing of the original eonstructiort financing for the Project.

36. Quiet Possession, Lessee, upon performing its obligahons hereunder, shall have the quiet and undisturbed possession of the Premises through the term of this Lease

37. Attorney's Fees and Costs. Ifthe .Lessee or the City commences any action or proceeding against the othet arising out of or in .connection with this Lease, the prevailing party shall be entitled to have and 1ecover from the losing party reasonable attorney's fees and costs of suit.

38. Lease the Entire Agteemerit Other Agreements. The Lessee agrees that the provisions of this written Lease constitute the entire agreement between the Lessee and the City regarding the Premises and the parties' rights and obligations wUh respect theteto No representation, covenant, or other matter, oral or written, that is not expres~ly set forth in tlus Lease shall be a part ot: modify or affect this Lease; provided, however, that this Lease may be modifie4 ifthe modification is in writing and authouzed l:>y ordinance or resolution of the City Council. 39 Severability The unenforqeability~ invalidity or megality or any proviSion ofthis Lease 27 9.i
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" IT .... ...! .;.i• •• ;:.-...; .~ -~ • : •• ..~ ·.:
shall no.t render the other provisions unenforceable, invalid or iliegal, except when the rights of the Ciey, or Lessee are matenally and adversely affected

40. Applicable_Law and Venue This Lease shall be construed 1U1d interpreted in accord~ with the laws of the State of Cf,l;hforni~ Except as provided in this L~ all di&pµtes that cannot be 1ettled amicably by the parties shall be detennined by a competent state court in San Mateo County, C8lifomta,, which state court shall be the only agency with any authority to 4etennin~ any such dii;pute

41. Agreement in Multiple Copies. This Lease is e?reCUt~ ~n ttlUltiple copies, each copy of which shall be deemed an origin.al.
.IN WITNESS THEREOF, the parties hereto have caused these presents to be executed.

LESSOR
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EXHIBIT A
LEGAL DESC).UPTION OF PROPERTY:

Habana•
Parcel 3 as shown on that certain map entitled '"PARCEL MAP, CITY OF SAN CARLOS, SAN MATEO COUNTY, CALIFORNIA". filed in the office of the Counfy Recorder of San M,ateo County, State ofCalifomiai on November 13, 1996 in Book 69 of Parcel Maps at Page(s) 53 and 54 APN 046-250-030
Q;\Cill!s\,';an Culo.\Lmos\Hab,1.$1' wpd 29
,,
-~· .... '_. ~· •• ...... ~ --

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HABANA;
$(:ibcs\San~\l.t.lsos\H,ab1..or· .. p<1

EXHIBITB

DESCRIPTION OF PROJECT
"~STAlJMNT"
+/- 7 ,20.0 square foot building
Full service wlth bar and banquet facility
Seats +/- 285
+/- 265 Parking st~ls
Hours of operation At least 5.00 pm. to 11:00 pm.
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project in accordance with the respective franchise operating manuals of Burger King and Houtihan's, c,r of any respective appHcable successor franchisots 4 Rental, Rental Review
4_ 1 Pre-Tenn Rent: Shall be due fl-om the date the first restaurant receives its Certificate of Occupancy, or has one-hundred eighty (180) days ~p1re from issuance of a Building pe1 mtt, whichever occurs first, in an amount equal to a perc;:entage of the Annual Base Rent payable for Years one through five (1 - 5)
3 as follows Burger Kmg 35%, Houlihan's 65% During the Pre-Term Refit period, no additional rent shall be due under Paragraph 4 2. Initial rents shall commence when the basic tenn of the Lease conunertees under Paragraph 2. L Annual Base Rent Shall he payable to the City in equal monthly installments, shall be as follows.

Years 1 through 5 $75,000 petyem
Years 6 through 10 $8!2;500
Years 11 through 15 $90,712
Years 16 tluough 20
Years 21 through 25
Years 26 tbrough 30
Years 31 through 3 5
Yeais 36 thrnugh 40
Years 41 through 4 5
$99,525
$109.,808
$120,788
$B2,867
$146,154
$160,769

4.2 Additional Rent In addition to the annual base tent, the Lessee shall pay three petce11t 0%) of gross receipts to the City in .accord with the following schedule 3% on gross tecejpts in excess of

EXHIBIT A

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• I I
-. ,, ,..,.

Years 1 through $
Years 6 through 10
Yeats 11 through 15
Years· 16 through 20
Years 21 tht-ough 25
Yeats 26 through 30
Years '.H through 35
Years 36 tht-0t.1gh 40
Years 41 through 45
Sl.noo.ooo per year
$3.30(),000
$3,630,000
$~,993,000
'$4,392,300
$4,831,530
$5;314,683
$5,846,151
$6,430,766

4. 3 Lessee's Gross Receipts Lessee's Gt QSs Receipts means gross sales of a.ti food~ mercha~dise or services sold, leased, licensed, or deliveied 1n or from the Premises by Lessee, whether for cash or on c1 edit Gross Recelpts shall include any amounts Lessee receives from vending machines m the l'remises. Gross Receipts ft'om credit card transactions shall inQ!ude only the actual ameunt received by Lessee from the credit ~4 issuer.

Gtoss Receipts shall not include, or u included there sh.all be deducted, tbe fol'lowing
l The seU:ing price uf all merchandise returned by customers and accepted for full Ciedit, or the amount of discounts, refunf.is; and allowances made on such merchandise

2. Merchandise which ts promotional and for which no profit has been
ma.rkedup
3 .$urns and credits received in the 11ettlernent of claims for loss of or damage to merchandise
4, Any sums paid to thud parties for the use or rental of

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SFSTATION REVIEW
Epic Dining Midsummer 2003
Habana, M02, Rex Cafe
~.:
'
By ·Tracie Broom
Newcomer HabanEl ha$ settled nicely Into the San Francisco dining scene, MC2 recently underwent an Identity redesign, arid the fellows who run Rex Qafe introduced: a new menu. We thought We Should check It all out: •
Habana
After opening to great reviews and lots of bus1n~. Hel>ar,a is dotng· well serving upscale Cuban4nspired cuisine and lethal Mojltos on the Van Ness Corridor comer once occupied by Rocco's. While the usual crowd ohlde:r locals still frequents restaurateur Sam OuvaH's pet concept (Duvall .channels Hemingway from top to bottom), a fresh croWd has poured In to sampfe the tush, wrought lron .. taden environs, the quite delicious food, and the well-executed cocktails. Mld-twenUes girls in stilettos forklnto perfectly seasoned calamari ($9) flied with bay scallops, gr,een beans and onions, while Pac Hejghts matrons ln Ross Dress-For-Less prints. gab owr tuna, scallop ,,nd shrimp ceviches ($8-$9 each) that range from so-so to $OUlfUI, My lady fireffghter friend and I tov,d the guava-glazed BBQ rfbs ($18) in partloular, Which ,pair magnlftcently with the aged rum cocktails and comfy chairs at Habana. While the much-touted Ro1»1 Nueva ($19), a glossy, marinated skirt steak, was fairJy stellar, the accompanying shredded beef tago.ut left something ·to be desired. Ttie kicky Caesar ($7), wtth chipotle dressing and not-too-fishy boquerones, was well­ balanced and frankly, absolutely, perfect
After a glorious coconut flan ($7}, we enjoyed some strong Cuban coffee and a couple offyne old& n1m& of the uncommon variety, took a tour of the multitudlnoue wall tchotchkes With the gregarious Mr Duvall, and decided that we'd -have to return with a group of6-8 to

EXHIBIT B

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enjoy the VIP table With Jts fanta!W ~nopy and pnme front and center spot, ~bana ,nay be yet anothe( pricey watering bole with a hip cQncept and good food, but hey, ¢works, we, like it, and so do '!he. • good•time foodie mends r kndW who've gene there
Habana
2080 van Ness Ave
San Francisco~ CA 94109
41,, 441.2822
Van Ness "Corridor
Nuevo Li;ttino Cujsme
$$$
MC2
Feeling a ln:tle bit ciblted, a particular1y urbane friend of mine and I decided to investigate tbe hubbub over MC2's new menu format and pricing Chic, sleek. and a touch "fast week," MC2 combines the cornforting-minimalism of the dot com days with a refre'1hing d~ of tavtsh, -over-the~top concept and cu1$il\e that puts the "major market" feeling in your Left CQast evening. WJth GM Brian Hawam's ultra~ professional, friendly guidance, we sampled Chef Todd Davies' gorgeous menu, includlng a sophisticated, crtspy-thln tarte flambee ($8), :a welcoming asian pea., and gorgonz.ola souffle ($10), and a just­ nght pl~e of housHmoked Sitlmon with colt'!meal-scalli:On tnadeJeinet, f.rout caviar and horseradish crerne talche {$12).

Davres worked atthe Lark Creek Inn and Flying Saucer (RI P ), and it shows. MC2promotes a.dear littfe •de.sign--your-own-menu" concept, which at first r:riade us wary of smai portions and nigh prices, bUt the place really romanced us With ht,gh design, am't>i~nt Ughtlng, and great dishes like seared halt~ cheeks ·Wjtb chive mashed potatoes and chardonnay butter {$13 fur a small plate, $23 for a large plate), grilled rack of lamb wifh favas ($16 or $28), ancl roasted squ~b with a s,pinaoh-musbroom tart and dried fig vtnaigtett$ ($14, $25)-. A ~urse Chefstaslingtnenu is promoted h--1]y, .,._nd at $65 ($95 with paired wines), it is ~sunable forthis ca:Uber cuis1qe.

With OJ nights, bartendfng contests and the. like, MC2 lookS to keep a young oqtlo.ak, whJle il$ dinner atmosphe,re and l'ilenu <:aters to the upsaate lawyer with a yen for Scand1navtan-rn$ets-8OMA-to1t style. A three--eoure, $20.03 pfiX-.fixe lunth lures tocaldulgne.rs, end cocktails Hke the Manhattan Project and The CosrtlO$ bring in the highbrow drinkers Alf ,fn au, a great place to get your city on in style.

We like!
MC2
470 Pacific Avenue -@Montgomery
San Francisco, 0A 94133
415.956.0666
Hiistonc ~ct
c~rnum--French Cuisine
$$$
)lex: Cafe
My fun-loving, radio indutrtry friend an~ I had heard ,th~t Rex Cafe was a grea.t place to have cock,talls and calamari after work, sh<)uld we find

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·ourselVes up on Polk Street looking for an easy, breezy sit-<town with good preppy ·people-watchlflg. This, we've now confirmed, ls true; the cate's open-frQnt architecture does lend a somewhat New Orleans feel to the place, and the clIentele is, Indeed. preppy. What we didn't know is that Rex's own!:lrs, Bob and Danielle, offer a full men1,1 of American comfort food with a French flounsh, some ofwhlch is very successful, and some of Which is fair to -middling. Whlle the gratineed artichoke was a tad bland; we rightly enjoyed a zesty g.rilled shnmp appetizer. ~imllarly, as the pork chop entree did not stun, the scallops In another dish were cooked perfectly! Word on the stteet Is that the Yankee pot roast is a perennial favorite, and the pi'le of steaming mussels delivered to a table of young bucks looked like a bowlful of good times. On a Mojlto kick, we tried Rex's and found them to be truly ou~tandlng. Our server was a total doll, We ran 'into a -eouple of people we knew, and all In all, we had a nice time. The reason to go? Versatfllty. You can eat cheap and easy, oryou can linger over a fancy mea1~1t·s up .to you.
«<Ba~to ftestaurantr.

Rex Cafe
2323 Pc,lk St. @Green
San Francisco, 0A94109
415.441.2244
Russian Hill
Californian Cuisine
$$
•
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Ci!) 1888 • 2002 SF Station, Alf Rights Re•erv•d· Terms and Conqlhom,, Please !lend ql.18at1ons & commem:■ to. webmaster
restaurants ...

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9.i
April 27, 2026

Packet Pg. 86

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Packet Pg. 87

CITY OF SAN CARLOS AGENDA ITEM. ti f/ (.6)

MEMORANDUM
To· Clty Council
From: Robert J. Lanzone, City Attorney
Date· September 11. 2003
Re· Houlihan's/Burger Kin9 Lease
Cm A.noRNFt
9311 LAUREL S'l REIT Surrt 0
PO 110)(. ,065
SJ\1'I CAIU,.O~ C .-\l.lFQ8N,IA~70•3Q85
I l!UJ'f)ON£ {MO) S~J.'1-111
E-m,ul Rlanw.nc~dcl <;:o!P
In 1996 the City entered into a Development Agreement (ODA) and Ground Lease for approximately 2 acres of City property (formerly part .of the old sewer plant site) with San Carlos Properties, LLC for construction of Houlihan'·s and Burger King restaurants.

The restaura11ts were constructed and the City has been receiving rent per a fi~d schedule (l:,xhiblt A) since November 1, 1997 (the Effective-Oat&). The rent has been $75,000 a year for the first 5 yearsi .. The rent includes provisjon for a percentage of tross receipt$ .. However, the restaurants together never exceeded the ·$3,000,.000 -th:reahol<i.

HoUlihan'·s closed earHer lh1s year The restaurant facility belongs to Sari ciarlos Properties LLC, our Ground Lessee, and we unde-rstand it cost over$750i000 to build the improvements. The Ground Lessee n.ow propose$t.O ~el! the Houlihan's facility and have the 1.89CS Ground Lease effectively "divided" into two separate leases wi:th San CarlOs Properties LLC retaining the Ground Lea$e for Bur-ger 1<1n9 and the buyer of HouHhan's restaurant factlity being the other lessee
The proposed buyer of Houlihari's ls Sam DuV~H1 a reetauranteur from San Francisco. Mr; DuVaU has spent a hfetrme iri the restaurant business $nd currently owns:

1. Izzy's Steakhouse in San Franc1scoi

2. Izzy's Steakhouse in Corte Madera, and
3 Habana (Cuban) Restaurant in San Francisco.

Mr. DuVaU's concept for th~ Sctn Carlos site 1s another Cuban/South Am~1can food -Q!lcibel\SanClllmlMBMC>$\Coantlaul~,.,Jld l

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re.staurant. with Cuban decor and an Ernest Hemingway theme. Attached are reviews of the Habana Restaurant m San Francisco (Exhibit B) which are very positive. Mr. DuValrs business partner, Joseph R Kohn, is the chef for Habana in San Francisco, and will directly manage the San Carlos restaurant
Staff has examined financial records for Mr DuVaU .and has determined that his current restaurants are all operating successfully. Mr. Duvall has a net worth in excess of $4 mlllion. The City has further security in terms of the restaurant building which on default would go to the City under the Ground Lease. Presently, the Lessee will be Mr.

DuVall, but we indicated we will not deny an assignment to a single purpose LLC established for this restaurant • •
The 1996 Lease has been divided into two leases, each identical to the original 1996 Lease with the exception of the rent amounts Which have been aUocated based on size of each respective parcel' 65% ~ Houlihan's and 35% Burger King Attached are the documents effecting this transaction: •
1 The Second Amendment to Lease (Exhibit C) which amends the 1996 Ground Lease and leaves San Carlos ProperHes LLC as the ground lessee of only the Burger King parcel (#2-046-"25Q .. Q20) with a 35% shc:ire of the 1996 Lease rent schedule.

The City sta·nds to gain on receiving additional rent on the percentage of gross receipts due to each restaurant now standfng on its own. •

2. The Restaurant Parcel Ground Lease (Exhibit D) ls identical to the 1996 L~asej except 'it now will be with Mr. D1:Nall 1 Qhd has a 65% share of the 1996 rental ·amounts. The term .of the Lease.remains the same
Reeornmended Action: Move authorization for the City Manager to execute the Second Amendment to Lease and the RestaL1rant Parcel Ground Lease. / I .~
Z ,
~ .-
/ t/11/ t:,,,. ,_-
RJL:jm
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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Assign Temporary Assignment Pay for the Vacant Management Analyst Position in Public Works.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution authorizing the City Manager to assign temporary assignment pay for the vacant Management Analyst position in the Public Works Department.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with this action as the Management Analyst position is already fully budgeted.

BACKGROUND:

The Public Works Management Analyst has been on a leave of absence since September 2025.

The incumbent has recently confirmed that continued leave is necessary. To ensure continuity of departmental functions, Public Works assigned an employee from another classification to temporarily perform the duties of the Management Analyst.

Since October 27, 2025, the employee has been receiving temporary out-of-class compensation at five percent above her regular rate of pay, consistent with the Confidential Group Salary and Benefit Resolution’s provisions for temporary assignments of more than four but fewer than thirty consecutive workdays.

Because the temporary assignment has continued well beyond 30 days and is anticipated to extend further, staff now seek formal Council authorization to compensate the employee within the salary range established for the Management Analyst classification based on the language in the Confidential Group Salary and Benefit Resolution. Section 3, Pay for Temporary Appointment to a Higher Classification, of the Confidential Group Salary and Benefit Resolution states, “For temporary assignments greater than 30 days, the City Manager may recommend to Council a salary rate within the existing range of the new classification.” ANALYSIS:

The employee temporarily serving in the Management Analyst capacity has provided consistent, effective support to the Public Works Department. The duties being performed align with those of the higher classification and warrant compensation within the appropriate range.

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Placement at Step 1 is not only consistent with Confidential Group Salary and Benefit Resolution, but it also ensures equitable compensation for higher-level responsibilities and maintains continuity of operations during the incumbent’s extended leave.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to assign temporary assignment pay for the vacant Management Analyst Position in Public Works; 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:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2026 – ____

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

AUTHORIZING THE CITY MANAGER TO ASSIGN TEMPORARY ASSIGNMENT PAY FOR THE VACANT MANAGEMENT ANALYST POSITION IN PUBLIC WORKS.

WHEREAS, the Public Works Management Analyst has been on a leave of absence since September 2025, and the employee has recently confirmed that continued leave is necessary; and WHEREAS, to ensure continuity of departmental operations, an employee from another classification has been temporarily assigned to perform the duties of the Management Analyst position; and
WHEREAS, Section 3 of the Confidential Group Salary and Benefit Resolution states that for temporary assignments greater than 30 days, the City Manager may recommend to the City Council a salary rate within the existing range of the higher classification; and WHEREAS, the temporary assignment has exceeded 30 consecutive workdays and is anticipated to continue due to the incumbent’s extended leave; and WHEREAS, placement at Step 1 of the Management Analyst salary range is consistent with the Confidential Group Salary and Benefit Resolution and provides equitable compensation for the higher-level duties being performed.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to assign temporary assignment pay for the vacant Management Analyst position in Public Works.
* * * * *
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 27th day of April 2026, 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: April 27, 2026
ITEM TITLE: Consideration of Adopting a Resolution Authorizing Adjustments to the Cost of Services Schedule (“User Fees”), Park Facility Development Fee, Sewer Capacity Charge, Childcare Development Impact Fee and Traffic Impact Fee for Fiscal Year 2026-27, and Adding Four New Fees to the User Fee Schedule.

RECOMMENDATION:

Staff recommend that the City Council approve a Resolution authorizing adjustments to the City of San Carlos Cost of Services Schedule (“User Fees”) and certain impact fees for fiscal year (FY) 2026-27, and adding four new fees to the User Fee Schedule.

FISCAL IMPLICATIONS:

If adopted, these User Fees and impact fees will result in a net revenue increase of approximately $197,275 across all City Funds (excluding Fire fees) based on estimated activity determined during a fee study in 2022. The study completed in 2022 did not include Fire fees as these are tied directly to the Redwood City Fire Department.

The table below shows how this estimated revenue increase would be split among the departments and funds for the User Fees, as well as the split among the four impact fees. The new fees would be effective July 1, 2026, as a minimum 60-day notice is required for new development fees in accordance with California Government Code Section 66017. These fees have been incorporated into the FY 2026-27 budget.

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*Note - excludes Fire as fees were not part of 2022 user fee study.

BACKGROUND:

All fee changes must be approved by the City Council. The proposed changes are coming before the City Council for consideration this evening.

Existing User Fee Schedule
Every spring, staff review the costs of providing fee-related services. The proposed fee schedule was derived from a comprehensive fee study performed by NBS Municipal Advisors (“NBS”) in June 2022. The study includes a full analysis of the total cost of providing services, including all applicable direct, indirect, and overhead costs associated with individual services. Such a study is usually only performed every three to five years.

As indicated in Resolution 2022-079 approved on June 27, 2022, the City Council chose to use the San Francisco – Oakland – San Jose (Bay Area) Urban Wage Earners and Clerical Workers Consumer Price Index (“CPI-W”) as a guideline for future annual increases. This index measures monthly inflation changes experienced by a subset of workers – clerical and hourly wage earners.

Staff recommend increasing the User Fees (except those individually highlighted in the Analysis section) by 1.7% which is the year-over-year increase reflected in the February 2026 CPI-W index. The rate reflects changes to a basket of consumer goods and is lower than expected due to modest shelter increases offset with declines in transportation-related categories such as used car prices. The proposed User Fee schedule is included as Exhibit A to the Resolution.

User Fees Additional Revenue split by Fund
Department /
Division
Estimated
Annual
Current Fee
Revenue
Estimated
Annual
Recommend
ed Fee
Revenue
Additional
revenue
General
Fund
Waste-
water
Fund
Capital
Fund
Park-in-
Lieu
Fund
Child
Care
Fund
TOTAL
Administrative Fees $ 45,133 $ 91,733 $ 46,600 46,600 $ 46,600 $ Planning $ 1,474,578 $ 1,499,678 $ 25,100 25,100 $ 25,100 $ Public Works
Engineering $ 867,114 $ 870,173 $ 3,059 14,084 $ (11,025) $ 3,059 $ Building $ 6,630,410 $ 6,728,755 $ 98,346 98,346 $ 98,346 $ Police $ 141,240 $ 143,730 $ 2,490 2,490 $ 2,490 $ Recreation
(permits/processing) $ 128,932 $ 130,236 $ 1,304 1,304 $ 1,304 $ Total $ 9,287,406 $ 9,464,305 $ 176,898 $ 187,923 $ - $ (11,025) $ - $ 176,898 Impact Fees
Park Facility Development Fee 1,243 $ 1,243 $ 1,243 $ Sewer Capacity Charge 16,027 $ 16,027 $ 16,027 $
Traffic Impact Fee 2,644 $ 2,644 $ 2,644 $
Child Care Development Impact Fee 462 $ 462 $ 462 $ Total $ 20,376 $ - $ 16,027 $ 2,644 $ 1,243 $ 462 $ 20,376 GRAND TOTAL $ 197,275 $ 187,923 $ 16,027 $ (8,381) $ 1,243 $ 462 $ 197,275

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Impact Fees
In accordance with the Municipal Code, four impact fees are also adjusted on an annual basis by applying the appropriate indices. These fees are described below and a summary of the changes are shown in Exhibit B to the Resolution.
1) Park Facility Development Fee. “The fee shall be increased annually by the percentage increase of park construction costs cited in the Engineering News Record, for the San Francisco Bay Area.” For FY 2026-27, this would result in an increase of 0.49%. 2) Sewer Capacity Charge. “The sewer capacity charge shall be adjusted annually based on the change in the Engineering News Record – Construction Cost Index (20-Cities Average) from the March 2016 Index.” For FY 2026-27, this would result in an increase of 2.72%, based on a 12-month comparison.
3) Traffic Impact Fee. “The amount of the Traffic Impact Fee shall be adjusted annually based on the Construction Cost Index published by the Engineering News Record” as approved under Ordinance #1562. For FY 2026-27, this would result in an increase of

0.49%.
4) Childcare Development Impact Fee. “The amount of proposed fee shall be established by the City Council resolution and not exceed the fee established by the adopted Impact Fee Nexus Study dated July 14,2021 or subsequent nexus studies which shall be adjusted annually based on the Construction Cost Index published by the Engineering News Record or a reasonable replacement index” as approved under Ordinance #1585. For FY 2026-27, this would result in an increase of 0.49%.

ANALYSIS:

Exceptions to CPI increases, Adjustments and New Fee Requests As noted previously and based on prior practice, staff recommend increasing the User Fees (except those noted below) for FY 2026-27 by 1.7% CPI-W using the February index in accordance with prior practice. After seeking input from each department, the following exceptions to an increase, adjustments, and new fee proposals were received and have been incorporated into the proposed FY 2026-27 schedule of fees:

Fire Department
Fire prevention fees were separate from the fee study’s scope of review, since these services are contracted from the City of Redwood City. As done in prior years, staff recommend adopting Fire fees based on the Redwood City User Fee Schedule upon its effective date, as applicable.

Parks and Recreation
Adult Community Center Room Rental Kitchen Fee - Staff recommend increasing this fee to better reflect the staff time required before and after kitchen rentals and to encourage renters to reserve the kitchen only when it is necessary. It is also more in line with the rate charged by other cities. The recommended rate is $100 per rental, up from $50 currently.

Janitorial Services – Staff recommend an increase in this fee (2.3%). The fee is based on the contracted janitorial service costs, and the service agreement was renewed on February

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23, 2026. With the renewal, the recommended fee is $225 per event or the actual cost incurred.

Security Guard Fee – Private Rentals Serving Alcohol – Staff recommend an increase to this fee (7.5%). The fee is based on the hourly rate of the contracted security services. The service agreement was renewed April 1, 2026, bringing the recommended fee to $72 per hour or the actual cost incurred.

San Carlos Library Community Room Rental Fee – Staff do not recommend an increase in this fee to prevent it from becoming cost prohibitive. The fee covers maintenance needed for the community rooms. The current and recommended fee is $72 per rental.

Corn Hole Game Area, Chestnut Picnic Site (add-on) – Staff do not recommend an increase in this fee ($25 per event) to keep it comparable to other jurisdictions. This fee is an add-on to a picnic rental permit.

Facility Rental Application Fee - Staff do not recommend an increase in this fee. This is a fee to ensure that the applicant for any application submitted is genuine with their intent. The current and recommended fee is $25 per rental application.

NEW Sports League Field Use Fee – Staff recommend updating the duration covered by the existing fee and introducing a new optional add-on for a secondary season as not all sports clubs use the fields for the same number of months during the year. The current season fee will remain at $86 per player but will now cover a 6-month period. Participants who wish to extend their field use may opt into a secondary 3-month season for an additional $43 per player.

Sports League Maintenance Fee – Staff do not recommend an increase to this fee. This fee was added as part of Resolution 2025-068, adopted on June 23, 2025. It partially offsets the maintenance costs associated with sports field use, and adjustments are made as direction is received from the school districts regarding annual use and related expenses. The current and recommended fee remains at $34 per player.

Sports Tournament Request Permit Fees – Staff do not recommend an increase to this permit fee to prevent it from becoming cost prohibitive for community organizations to hold sporting events. The current and recommended fee is $350 for a new event application and $300 for a repeat event application.

Public Works
Downtown Employee Parking Permit Program – During the March 23, 2026 City Council meeting, the Downtown Prosperity Team presented the idea of temporarily waiving Downtown Employee Parking Permit fees during the Harrington Park Refresh and Centennial Plaza Transformation projects as a means of supporting businesses operating near the construction zones. The waiver would be implemented in two phases: a one-year fee waiver for businesses impacted by the Harrington Park Refresh project and then a two-year fee waiver for businesses impacted by the Centennial Plaza Transformation. During each phase, impacted businesses would be able to request free parking permits for up to twenty-five percent of their on-site employees for use on the second floor of the Wheeler Plaza Parking Garage.

Employees with valid permits would be allowed to park anywhere on the second floor without citation during this period, coordinated with Sheriff’s Office enforcement. Based on business license data, this would result in approximately 91 permit spaces for Phase 1 and 109 permit

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spaces for Phase 2 (both of which are within the 139-space capacity of the second floor of the Wheeler Plaza Parking Garage). The number of permits would be capped at 139. The existing approximately 18 Downtown Employee Parking Permit holders who work along San Carlos Avenue and currently park in either Wheeler Plaza or the SamTrans Garage will be transferred to the SamTrans Garage and would similarly be offered free permits during this period.

NEW Traffic Control (TCP) Review Fee – A Traffic Control Plan (TCP) is required to be submitted to the City for review of utility encroachment permits and development projects. The review ensures that construction activities maintain safe and accessible conditions. The fee covers staff time to assess compliance with City standards and to coordinate consultant review when applicable. The amount is based on approximately one hour of Engineering staff time and will be adjusted by CPI every year. The recommended fee is $215 per review.

Parklet Program – Staff recommend that, in cases where the City mandates the removal of a parklet, the permit holder may request a prorated refund reflecting the unused portion of the six-month permit period.

Community Development
Protected Tree Fees – Staff continue to recommend no increase in the following fees. The arborist hourly rate that informs the fee structure remains unchanged under the City’s current multi-year service contract. In addition, due to the sensitivity of tree-related fees and to avoid excessive charges, staff recommend maintaining the existing, modestly subsidized fee level.

Dead Tree – $100 per project
Risk or Health Rating – $500 per project
Species – $500 per project
Development – $500 + Planning Division Staff Hourly Rate Utility Interference – $500 per project
Arborist Fee – $200 Per Hour
Emergency Removals – No Charge
Protected Tree Notice – $150 Each
Tree Protection Plan Review (Depending on complexity of application, additional arborist fees may be incurred at an hourly rate.) – $750 per project (5 or fewer trees) and $1,250 per project (6 or more trees)
Beekeeping Fee – This fee was introduced for FY 2024-25. Staff does not recommend an increase for FY 2026-27. The current fee is $150 and covers approximately 50% of staff’s time. The City Council also approved a $100 reduction in the permit fee if the applicant provides proof that they have taken a beekeeping class.

Police Services
Processing Police Officer Subpoena – Staff recommend expanding this fee to reflect both state and federal requirements for law-enforcement subpoena compliance. This is an expansion of the existing fee for state court proceedings. Clarifying the fee schedule to explicitly include both state and federal subpoena fees ensures alignment with applicable law, improves cost recovery, and provides clearer guidance to staff and the public.

Civil Witness Subpoena – Set at $275 per day, as established in California Government Code Section 68096, applicable to officer appearances in state court proceedings.

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NEW Criminal Witness Subpoena – Recommended no fee. California Penal Code §1326, subpoenas in criminal cases fall within the court's authority. These subpoenas are issued to ensure that witnesses provide testimony in public prosecutions. Law enforcement officers are regarded as public employees acting in their official capacity.

As a result, there is no fee charged for a subpoena to compel an officer’s appearance.

NEW Federal Witness Subpoena – Set at $40 per day, as established in Title 28 United States Code Section 1821, applicable to federal cases.

Accident Report – Staff do not recommend an increase in this fee. This fee is kept stable and aligned with the other police bureaus to keep them from being cost prohibitive. It will be kept under observation and should only be periodically adjusted.

Crime Report – Staff do not recommend an increase in this fee. This service is public-facing and often required for legal, insurance or immigration purposes therefore keeping them stable and aligned with other bureaus ensures accessibility. The fee will be kept under observation and should only be periodically adjusted to align with other police bureaus.

Visa/Police Clearance Request Form – Staff do not recommend an increase in this fee.

Similar to the police report fee, this service is public-facing and often required for legal, insurance or immigration purposes therefore keeping them stable and aligned with other bureaus ensures accessibility. The fee will be kept under observation and should only be periodically adjusted to align with other police bureaus.

Administrative Services
Wheeler Plaza Electrical Vehicle (EV) Charging Fee – Staff recommends increasing the EV charging fee to ensure full recovery of operational and maintenance costs. The City of San Carlos owns and operates five ChargePoint EV charging stations (three single port and two double port) located at the Wheeler Plaza Parking Garage and is responsible for establishing and periodically updating the charging rates. The current rate of $0.25/kWh has remained unchanged since 2022. Following a review of average annual energy costs, station usage, maintenance and software expenses, and associated administrative costs, detailed in the table below, staff recommend adjusting the EV charging rate to $0.51/kWh.

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Impact Fees
As noted above, it is also recommended that four impact fees (Park Facility Development Fee, Sewer Capacity Charge, Traffic Impact Fee, and Childcare Development Impact Fee) be increased using the appropriate indices in accordance with the Municipal Code (see Exhibit B to the Resolution - Impact Fees FY 2026-27).

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing adjustments to the City of San Carlos Cost of Services Schedule (User Fees), Park Facility Development Fee, Sewer Capacity Charge, Childcare Development Impact Fee and Traffic Impact Fee for Fiscal Year 2026-27, and adding four new fees to the User Fee Schedule; 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:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution - Proposed User Fee Schedule FY 2026-27 Exhibit B to Resolution - Impact Fees FY 2026-27

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RESOLUTION NO. 2026 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AUTHORIZING ADJUSTMENTS TO THE COST OF SERVICES SCHEDULE (“USER FEES”),

PARK FACILITY DEVELOPMENT FEE, SEWER CAPACITY CHARGE, CHILDCARE DEVELOPMENT IMPACT FEE AND TRAFFIC IMPACT FEE FOR FISCAL YEAR 2026-27, AND ADDING FOUR NEW FEES TO THE USER FEE SCHEDULE.

WHEREAS, the City Council adopted Resolution 2017-050, establishing certain fees for City services, and
WHEREAS, the City Council adopted Resolution 2018-052, authorizing index-linked adjustments to the cost of services schedule, Park Facility Development, and Sewer Capacity Charge impact fees for fiscal year (FY) 2018-19, and granted authority to the City Manager to waive user fees for non-profit agencies at his/her discretion, and WHEREAS, the City Council adopted Resolution 2019-026, authorizing index-linked adjustments to the cost of services schedule, Park Facility Development, and Sewer Capacity Charge impact fees for FY 2019-20, and establishment of a cost of service fee for industrial and commercial inspections for compliance with provision C.4 of the Municipal Regional Stormwater Permit (MRP); and
WHEREAS, the City Council adopted Resolution 2020-027, authorizing index-linked adjustments to the cost of services schedule, Park Facility Development, and Sewer Capacity Charge impact fees for FY 2020-21, and incorporating the cost of service fee for a Sidewalk Vendor Permit Program into the cost of services (user fee) master schedule subjecting it to future index-lined adjustments; and
WHEREAS, the City Council adopted Ordinance 1560, adding Chapter 15.60 – Construction Time Limits, to Title 15 of the San Carlos Municipal Code for construction time limits and penalties; and
WHEREAS, the City Council adopted Ordinance 1562, amending Chapter 8.50 – Traffic Impact Fee to Title 8 of the San Carlos Municipal Code and allowing the annual adjustment based on the Construction Cost Index published by the Engineering News Record; and WHEREAS, the City Council adopted Ordinance 1585, adding Chapter 8.52 – Child Care Development Impact Fees to Title 8 of the San Carlos Municipal Code and allowing the annual adjustment based on the Construction Cost Index published by the Engineering News Record; and
WHEREAS, the City Council wishes to revise said fee schedule at this time; and WHEREAS, the City Council wishes to use the San Francisco - Oakland - San Jose (Bay Area) Urban Wage Earners and Clerical Workers Consumer Price Index (CPI-W) as a guideline for future annual increases for user fees; and
WHEREAS, the City Council wishes to use the Engineering News-Record Construction Cost Indices for future increases to the Park Facility Development, Childcare Development and Traffic Impact fees; and

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WHEREAS, the City Council wishes to use the Construction Cost Index (20-cities average) for future increases to the Sewer Capacity Charge; and WHEREAS, for Fire Department Fees, fire prevention fees were separate from the Fee Study’s scope of review since these services are contracted from the City of Redwood City. As done in prior years, the City Council wishes to adopt the fire user fees based on the Redwood City User Fee Schedule upon its effective date, as applicable; and WHEREAS, the City Council wishes to add a Secondary Season Sports League Field Use Fee; and
WHEREAS, the City Council wishes to add a Traffic Control (TCP) Review Fee; and WHEREAS, the City Council wishes to add a Criminal Witness Subpoena Fee; and WHEREAS, the City Council wishes to add a Federal Witness Subpoena Fee.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby approves the amended User Fees (Exhibit A) and the amended Impact Fees (Exhibit B), effective July 1, 2026.
* * * * *
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 27th day of April 2026, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibits:

A. Proposed User Fee Schedule FY 2026-27
B. Proposed Impact Fee Schedule FY 2026-27
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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City of San Carlos
Proposed
User Fee Schedule - FY2026-27

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FEE SCHEDULE PAGE
Schedule of Administrative Fees 3
Schedule of Community Development Department, Planning Division Fees 4 Schedule of Public Works Department Fees 10
Schedule of Community Development Department, Building Division Fees 14 Schedule of Police Department Fees 21
Schedule of Parks and Recreation Department Fees 22

CITY OF SAN CARLOS

COST OF SERVICES FEE SCHEDULE
Table of Contents

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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Administrative Services Fees
(Effective on July 1st, 2026)
Returned Check and eCheck [1]
First Item Per First Check 25 $
Each Additional Item Per Subsequent
Check 35$
Credit Card and eCheck Charges Each Transaction Actual Cost Copy Charges: Per Page $.10/page
Copy Charges - CD Per CD $0.50/CD
Copies of City Subdivision Ordinances, Zoning Ordinances, Comprehensive Annual Financial Report, Municipal Code Book, Standard Bid Specifications, Standard Detail, Work Program Free/website, or
Copy Charge
Document Certification Per Request Fee Waived
Agenda or Minutes Subscription Free/website, or
Copy Charge
Research Per Hour, or
Fraction Thereof 218$
Wheeler Plaza Electrical Vehicle Charging Fee Per kWh $0.51/kWh For services requested of City Staff for which no fee is listed in this Master Fee Schedule, the City Manager or Department Director shall determine the appropriate fee based on the following hourly rates for staff time:

Finance Division Staff (Per Hour) Per Hour 218 $
City Clerk Department Staff (Per Hour) Per Hour 218 $
[Notes]
[1] Fee set by California Civil Code Ch. 522 Section 1719. Additional charges may apply if not paid within 30 days of receipt of written demand for payment letter
Proposed Fee /
DepositService Fee Unit / Type
Notes
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Planning Division Fees (Effective on July 1st, 2026)
Appeal, Planning and Transportation Commission Per Appeal 2,255$ Appeal, City Council Per Appeal 2,255$
Attorney's Fees
Support to Planning projects that require Deposit Per Project Actual cost / + $2,500 minimum deposit
Support to Projects on a "Fixed"/"Flat" Fee Basis Per Project Actual Cost - 2 Hours Minimum
Below Market Rate (BMR), Housing Plan Per Project 2,364$ Below Market Rate (BMR), Builder Alternative Per Project 2,364$ Below Market Rate (BMR), Housing Agreement Per Project 3,039$ CEQA
Document Filing Per Project 338$
Categorical Exemption
City Processing Fee Per Project 675$
Department of Fish and Game / County Recording Fees Per Project Actual Cost of DFG / County Fees
Initial Study/Negative Declaration/Mitigated Negative/EIR City Processing Fee Per Project Actual Cost with
$3,000 deposit
Consultant Review Per Project Actual Cost with
$5,000 deposit
Mitigation Monitoring Per Project Actual Cost with
$1,000 deposit
Cell Tower Application [3]
6409 Application Each 1,351$
Other Applications Each Actual Cost / T&M
Creek Exception/Stream Overlay District Review
City Processing Fee Per Project 5,065$
Consultant Review Per Project Actual Cost of
Consultant Study
Service Fee Unit / Type
Notes
Proposed Fee /
Deposit
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Planning Division Fees (Effective on July 1st, 2026)
Service Fee Unit / Type
Notes
Proposed Fee /
Deposit
Compliance Review - Single Family
Single Family, New Home/Notification Per Project 11,821$ Single Family, First Floor Addition/Notification Per Project 8,443$ Single Family, Second Floor Addition/Notification Per Project 11,821$ Single Family, First Floor Addition (Staff) Per Project 3,378$ Single Family, Second Floor Addition (Staff) Per Project 5,065$ Design Review - Deviation from Objective Design Standards (Planning and Transportation Commission) Per Project [8] 4,053$ Design Review (MR, M/U, Comm, IND) - Staff Review /
Approval
New Building Per Project 20,264$
Major Alteration Per Project 14,185$
Minor Alteration Per Project 10,807$
Minor Deviation from Objective Design Standards Per Project 1,351$ Design Review (MR, M/U, Comm, IND) - Planning and
Transporation Commission Review / Approval
New Building (Planning and Transportation Commission) Per Project 23,979$ Major Alteration (Planning and Transportation Commission) Per Project 17,900$ Minor Alteration (Planning and Transportation Commission) Per Project 14,522$ Major Deviation from Objective Design Standards Per Project [8] 10,132$ Design Review (Other)
A - Frames Per Project 169$
Accessory Structures (Includes large decks) Per Project 2,026$ Architectural Peer Review Per Project $3,000 Initial Deposit Mills Acts Designated Projects
City Processing Fee Per Project 2,026$
Historic Consultant Review Per Project [4] $5,000 Initial Deposit Miscellaneous (awnings, trash, replacement materials, site plan review, landscape) Per Project 675$
Outdoor Uses Dining & Retail Sales Per Project 2,026$
Sign Program Per Project 6,754$
Signs - (Planning Commission) Per Project 5,065$
Signs (Staff) Per Project 1,351$
Temporary Banner Per Project 338$
Minor Alterations Per Project 1,351$
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Planning Division Fees (Effective on July 1st, 2026)
Service Fee Unit / Type
Notes
Proposed Fee /
Deposit
Document Imaging Per 1/2 Hour - 1/2
Hour Minimum 169$
Domestic Fowl and Non-Household Pets Per Project 2,026$ Excessive Noise Compliance Permit Per Project 675$
Final Inspection, Single-Family Per Project 675$
Final Inspection, Other Per Project 1,351$
General Plan Amendment Per Project 13,510$
Grading and Dirt Haul Certificate Per Project 3,378$
Historic Preservation
City Processing Fee Per Project 675$
Historic Assessment - Consultant Review Per Project Actual Cost with $2,000 deposit
Mills Act Contract Per Project 5,065$
Interdepartmental Plan Review
Building Per Project
See Building Fee
Schedule for Per
Review Charge
Engineering Per Project
See Engineering Fee
Schedule and / or
Hourly Rates Apply
Fire Per Project See Fire Fee
Schedule
Police Per Project
See Police Fee
Schedule and/or
Hourly Rates Apply
Economic Development - Housing Per Project Planning Hourly Rate Applies
Other City Commission Review Per Project 1,351$
Plan Check for Building Permits
Major (New Multi-Family, Mixed-Use, Commercial,
Industrial) Per Project 4,053$
Moderate (New Single-Family, Commercial
additions/alterations) Per Project 1,689$
Minor (Single-Family Additions, Accessory Dwelling Units) Per Project 1,014$ Accessory Dwelling Units (Not a Part of The Previous
Approval) Per Project 1,014$
Pre-Application Development Review
General/Initial Questions Per Project No Charge
Major Per Project [2] 10,132$
Minor Per Project [1] 6,754$
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Planning Division Fees (Effective on July 1st, 2026)
Service Fee Unit / Type
Notes
Proposed Fee /
Deposit
Protected Tree Fees
Protected Tree Removal Permit / Pruning Permit: Below flat fees are based on requested reason for removal. Depending on complexity of application, additional arborist fees may be incurred at an hourly rate.

Dead Tree Per Project 100$
Risk or Health Rating Per Project 500$
Species Per Project 500$
Development Per Project
$500 + Planning
Division Staff Hourly
Rate
Utility Interference Per Project 500$
Arborist Fee Per Hour 200$
Investigative Report Each $500 Initial Deposit
Illegal Tree Removal (additional arborist report fees apply) Penalty Double the
Application Fee, plus
assessed penalties
per Muni Code
Protected Tree Notice Each 150$
Tree Replanting Fee Per Tree [7] See Public Works Fee
Schedule
Emergency Removals Per Tree No Charge
Tree Protection Plan Review (Depending on complexity of application, additional arborist fees may be incurred at an hourly rate.)
Per Project $750 (5 or fewer
trees)
$1,250 (6 or more
trees)
Beekeeping Fee Per Project [10] 150$
Public Notice Fee
City Processing Fee Per Hearing 675$
Restrictive Covenants Each 675$
San Mateo County Recording Fees
City Processing Fee Each 675$
County Fee Each Per County fee
schedule
Subdivisions
Subdivision, Major (5 or more lots) Per Project 27,018$ Subdivision, Minor (up to 4 lots) or for Condominium Maps Per Project 4,053$ Lot Line Adjustment, Parcel Mergers Per Project 1,351$
Conditional Exceptions Per Project 6,754$
Lot Verification Per Project [5] 675$
Map Extension Per Project 1,351$
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Planning Division Fees (Effective on July 1st, 2026)
Service Fee Unit / Type
Notes
Proposed Fee /
Deposit
Transportation Demand Management (TDM) Plan
City Staff Review Per Project 4,728$
Consultant Review Per Project $700 Initial Deposit
Transportation Demand Management (TDM) Review
Annual Each $500 Initial Deposit
5-Year Each $500 Initial Deposit
Consultant Review Deposit / Actual
Cost $700 Initial Deposit
Use Permits
Conditional Use Permit- Planning Commission Per Project [8] 10,132$ Minor Use Permit - Zoning Administrator Per Project [8] 5,065$ Use Permits (Development Standards) Per Project [8] 4,053$ Temporary Per Project [8] 2,702$
Amendment Per Project [8] 4,053$
Variance Per Project 13,510$
Waivers Per Project 1,351$
Zoning Administrator Determination Per Project 2,702$
Zoning Ordinance Amendment
Major Rezone/PD/Map and Text Per Project 27,018$
Moderate Rezone/PD/Map and Text Per Project 13,510$
Minor Rezone/PD/Map and Text Per Project 6,754$
Minor staff review
ABC/DMV Zoning Affidavit Review Per Project 675$
Business Registration Per Project 114$
Home Occupations Per Project 114$
Home Occupation Revocation Hearing Per Project 2,702$
Massage Per Project 1,014$
Other Zoning Affidavit Review Per Project 1,351$
Parking Calculation Per Project 1,014$
Search and Determination Per Project [6] 675$
Code Compliance Per Project 1,351$
Technology Fee Per Permit 0.4% of Total
Permit Fee Amount
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Planning Division Fees (Effective on July 1st, 2026)
Service Fee Unit / Type
Notes
Proposed Fee /
Deposit
General Plan Maintenance and Update - Staff SupportPer Project [9]

0.65% of Building
Project Valuation
for all New
Construction and
Additions; Fee is
Applied on Building
Permit
General Plan Maintenance and Update - Contract ServicesPer Project [9]

0.09% of Building
Project Valuation
for all New
Construction and
Additions; Fee is
Applied on Building
Permit
Credit Card and eCheck Charges Each Transaction Actual Cost SB-9 Application
No Lot Split Each 11,821$
Lot Split Each 11,821$
For services requested of City Staff for which no fee/deposit is listed in this Master Fee Schedule, the City Manager or Department Director shall determine the appropriate
fee/deposit based on the following hourly rates for staff time involved in the service.

Planning Division Staff Per Hour 338$
[Notes]
[10] $100 reduction in the permit fee if they provide proof that they have taken a beekeeping class [9] Total General Plan Surcharge fee capped at $370,000 for building project valuations of more than $50 million [6] Not charged for public records requests
[1} Includes up to 2, 1-hour meetings with multiple departments [2] Other City department fees/deposits may apply
[3] Governed by FCC, section 6409
[4] Fees for historical consultants apply
[5] Public Works fees apply
[7] Per the City's Tree Ordinance, the arborist may request a fee in lieu of tree replanting if there is no possibility to plant on site [8] Existing required fees are waived if a Child Care Center is the applicant 9 of 24

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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Public Works Department Fees
(Effective on July 1st, 2026)
Final Map Review
(Includes up to 3 Reviews)
Parcel (4 lots or less)
City Processing Fee Per Project 2,691$
Consultant Review Per Project Deposit / Actual
Cost
Subdivision (5 or more lots)
City Processing Fee Per Project 3,122$
Consultant Review Per Project Deposit / Actual
Cost
4th and Subsequent Review
City Processing Fee Per Submittal 322$
Consultant Review Per Submittal Deposit / Actual
Cost
Civil Plan Check [1]
(Includes up to 3 Reviews)
Minor Projects
City Processing Fee Per Project 2,153$
Consultant Review Per Project Deposit / Actual
Cost
Moderate Projects
City Processing Fee Per Project 4,198$
Consultant Review Per Project Deposit / Actual
Cost
Major Projects
City Processing Fee Per Project 6,136$
Consultant Review Per Project Deposit / Actual
Cost
4th and Subsequent Review
City Processing Fee Per Submittal 538$
Consultant Review Per Submittal Deposit / Actual
Cost
Utility Companies Plan Check: [2]
Minor Each 215$
Moderate Each 431$
Major Deposit / Actual
Cost 753$
Construction Inspection (Including Utilities) [3]
Minor Projects (1-3 inspections) Per Project 485$
Moderate Projects (4-5 inspections) Per Project 807$
Major Projects (6-10 inspections) Deposit / Actual
Cost
Deposit / Actual
Cost
Additional Inspection Each 161$
Proposed Fee /
DepositService
NotesFee Unit / Type
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Public Works Department Fees
(Effective on July 1st, 2026)
Proposed Fee /
DepositService
NotesFee Unit / Type
Post Construction Stormwater Device MonitoringPer Device, Every 5 Years 431$
Dirt Hauling Per CY 2.37$
Planning & Building Dept. Plan Check:

Planning Referral
City Processing Fee Per Project 1,077$
Consultant Review Per Project Deposit / Actual
Cost
Building Referral, Review of On-site Civil Per Project 431$ Debris Box/Storage Container Permit
Duration up to two weeks Per Permit 97$
Monthly Per Permit 322$
Encroachment Permit Administrative Fee Per Permit 107$
Outside Sewer Agreement Fee Deposit / Actual
Cost Deposit $5,000
Community Banner (Hang & Remove):
for-profit organization Each 215$
non-profit organization Each No Charge
Wide Load Processing Each [5] 16$
Sidewalk Dining or Outdoor Display Approval
Initial Each Initial Review 322 $
Annual Each Annual
Review 322$
Temporary NO PARKING Signs Per Sign 1$
Semi-Annual Permit Parking in City Lots
Downtown Employee Parking Program Per Six Month
Permit [7] Temporarily
Waived
East San Carlos Parking Permit Program-Residential Part of the Program Each No Charge
East San Carlos Parking Permit Program-Business part of the Program
Per Six Month
Permit 39$
Exception to the Winter Moratorium on Grading Per Week-long Request 107$
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Public Works Department Fees
(Effective on July 1st, 2026)
Proposed Fee /
DepositService
NotesFee Unit / Type
"Street Cut" fee per Ordinance Section 12.08.310.C.2 Per Opening 676$ Video Review of Existing Sewer Lateral Each 161$
Starting Work Without a Permit Per Permit Actual Cost
Grading Bond Policy (per 12.08.100)
<1,000 CY Per City Policy
Valuation of
Improvements +
20% Contingency
>1,000 CY Per City Policy
Valuation of
Improvements +
20% Contingency,
plus Performance
Bond
Industrial / Commercial Business Stormwater C.4 Inspection Fee
Per Hour -
Minimum 1.5
Hours
215$
Technology Fee Per Permit

0.4% of Total
Permit Fee
Amount
Credit Card and eCheck Charges Each Transaction Actual Cost Parklet Program
Encroachment Permit Administrative Fee Per Permit [6] 107$ Encroachment Permit - Downtown Area Per Permit / Per 6
Months [6] 1,052$
Encroachment Permit - Other Areas (Industrial Arts, etc.)Per Permit / Per 6 Months [6] 1,052$
Cleaning Fee Per Linear Foot /
Per 6 Months[6] 14.45$
Traffic Control (TCP) Review Fee
City Processing Fee Per Project 215$
Consultant Review Per Project Deposit / Actual
Cost
Tree Replanting Fee Per Tree [4] 1,552$
For services requested of City Staff for which no fee is listed in this Master Fee Schedule, the City Manager or Department Director shall determine the appropriate fee based on the following hourly rates for staff time involved in the service.

Maintenance Staff per hr. 277$
Engineering Staff per hr. 215$
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Public Works Department Fees
(Effective on July 1st, 2026)
Proposed Fee /
DepositService
NotesFee Unit / Type
[Notes]
[1] Minor
One (1) single family residence
o < 1000 CY of grading
o >= 1000 CY of grading
Moderate
Abandonment of R/W or Easement
Two or more (2+) single family residences (<1 acre)
o C.3 Regulated
o Not C.3 Regulated
multi-family/mixed-use/commercial/industrial (< 1 acres) o C.3 regulated
o Not C.3 regulated
Major
Two or more (2+) single family residences (>= 1 acre)
Multi-family/mixed-use/commercial/industrial (>= 1 acres) Major project - new main line installation or replacement including sewer, storm, water, gas, and electric, major point repair, major development projects including offsite improvements. [7] Parking is waived for up to 25% of on-site employees during the Harrington Park Refresh and Centennial Plaza Transformation projects.
[2] Minor project - point repair or maintenance, service line repair or replacement, replacement of overhead utilities, traffic control only,
Moderate project - installation of overhead utilities, installation of equipment at a specific location (not linear),
Major project - installation or replacement of underground utilities, [3] Minor project - sewer lateral repair or installation (outside of roadway), sidewalk, curb, gutter, driveway, traffic control (only), minor utility point repair, installation or maintenance (above ground), discharge, minor roadway improvement,
Moderate project - sewer lateral repair or installation (within roadway), soil boring, moderate utility point repair, installation or maintenance (underground),
[4] Amount of fee for the 24th box tree is subject to change based on actual vendor cost [5] Set by Title 21 of California Code of Regulation Section 1411.3 [6] When removal of a parklet is ordered, the City will prorate the fee 13 of 24

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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Less Than $5,000
Building Permit Fee base fee under $5,000 348$
Plan Check Fee base fee under $5,000 291$
Building Permit Fee base fee @ $5,000 348$
each add'l $1,000 or
fraction thereof 34.84$
Plan Check Fee base fee @ $5,000 291$
each add'l $1,000 or
fraction thereof 24.68$
Building Permit Fee base fee @ $25,000 1,045$
each add'l $1,000 or
fraction thereof 32.51$
Plan Check Fee base fee @ $25,000 784$
each add'l $1,000 or
fraction thereof 24.39$
Building Permit Fee base fee @ $50,000 1,858$
each add'l $1,000 or
fraction thereof 32.51$
Plan Check Fee base fee @ $50,000 1,393$
each add'l $1,000 or
fraction thereof 24.39$
Building Permit Fee base fee @ $100,000 3,484$
each add'l $1,000 or
fraction thereof 9.88$
Plan Check Fee base fee @ $100,000 2,613$
each add'l $1,000 or
fraction thereof 7.41$
Building Permit Fee base fee @ $500,000 7,432$
each add'l $1,000 or
fraction thereof 7.43$
Plan Check Fee base fee @ $500,000 5,574$
each add'l $1,000 or
fraction thereof 5.57$
Building Permit Fee base fee @ $1,000,000 11,148$
each add'l $1,000 or
fraction thereof 8.37$
Plan Check Fee base fee @ $1,000,000 8,361$
each add'l $1,000 or
fraction thereof 6.27$
$25,000 - $49,999
$50,000 - $99,999
$100,000 - $499,999
Proposed Fee /
DepositFee Unit / Type
NotesService
Building Permits (single Family Residential)
$5,000 - $24,999
$500,000 - $999,999
$1,000,000 and Up
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Proposed Fee /
DepositFee Unit / Type
NotesService
Less Than $10,000
Building Permit Fee base fee under $10,000 581$
Plan Check Fee base fee under $10,000 929$
Building Permit Fee base fee @ $10,000 581$
each add'l $1,000 or
fraction thereof 77.42$
Plan Check Fee base fee @ $10,000 929$
each add'l $1,000 or
fraction thereof 30.97$
Building Permit Fee base fee @ $25,000 1,742$
each add'l $1,000 or
fraction thereof 41.80$
Plan Check Fee base fee @ $25,000 1,393$
each add'l $1,000 or
fraction thereof 37.16$
Building Permit Fee base fee @ $50,000 2,787$
each add'l $1,000 or
fraction thereof 46.45$
Plan Check Fee base fee @ $50,000 2,322$
each add'l $1,000 or
fraction thereof 37.16$
Building Permit Fee base fee @ $100,000 5,109$
each add'l $1,000 or
fraction thereof 15.10$
Plan Check Fee base fee @ $100,000 4,180$
each add'l $1,000 or
fraction thereof 10.45$
Building Permit Fee base fee @ $500,000 11,148$
each add'l $1,000 or
fraction thereof 17.66$
Plan Check Fee base fee @ $500,000 8,361$
each add'l $1,000 or
fraction thereof 16.72$
Building Permit Fee base fee @ $1,000,000 19,973$
each add'l $1,000 or
fraction thereof 8.87$
Plan Check Fee base fee @ $1,000,000 16,722$
each add'l $1,000 or
fraction thereof 3.30$
Building Permits (Multi-Family Residential / Commercial / Industrial) $100,000 - $499,999
$10,000 - $24,999
$25,000 - $49,999
$50,000 - $99,999
$500,000 - $999,999
$1,000,000 - $9,999,999
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Proposed Fee /
DepositFee Unit / Type
NotesService
Building Permit Fee base fee @ $10,000,000 99,866$
each add'l $1,000 or
fraction thereof 9.99$
Plan Check Fee base fee @ $10,000,000 46,449$
each add'l $1,000 or
fraction thereof 8.37$
Building Permit Fee base fee @ $20,000,000 199,732$
each add'l $1,000 or
fraction thereof 3.99$
Plan Check Fee base fee @ $20,000,000 130,058$
each add'l $1,000 or
fraction thereof 3.87$
Building Permit Fee base fee @ $50,000,000 319,571$
each add'l $1,000 or
fraction thereof 4.79$
Plan Check Fee base fee @ $50,000,000 246,181$
each add'l $1,000 or
fraction thereof 4.93$
Permitted Values for Construction:
per sq. ft. 232$
Interior Remodels per sq. ft. 117$
per sq. ft. 48$
Decks per sq. ft. 39$
Commercial Shell per sq. ft. 57$
Tenant Improvements per sq. ft. 57$
Electrical Permit
Residential: New Single Family
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per sq. ft. 0.09$
Residential: Addition & Remodel
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per sq. ft. 0.09$
Residential: New Multiple Family
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per sq. ft. 0.09$
Commercial: New Shell Building
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per sq. ft. 0.09$
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Permit 3,000 sq. ft. min. 2,322$
Each additional sq. ft.per add'l sq. ft. 0.52$
Swimming Pool, Spa, or Hot Tub Per Permit 278$
Commercial: Complex Tenant Improvements (Car Washes, Dry Cleaners, Laundries, Labs, R&D, Biotech, Restaurants, Spray Booths, Hazardous Areas)
New Residential and Additions
Garages and Accessory Structures
Commercial: Addition, Remodel, Tenant Improvement
$10,000,000 - $19,999,999
$50,000,000 and Up
$20,000,000 - $49,999,999
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Proposed Fee /
DepositFee Unit / Type
NotesService
Temporary Power Pole Per Permit 278$
Main Electrical Service Per Permit 278$
Per Permit 116$
New or Replacement Sub-Panel Per Permit 278$
Miscellaneous Electrical Permit Per Permit 232$
PV Solar Fee Per Permit 348$
Plumbing Permit
Residential: New Single Family
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Residential: Addition & Remodel
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Residential: New Multiple Family
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Commercial: New Shell Building
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Permit 3,000 Sq. Ft. Minimum 2,322$
Each additional sq. ft.per add'l sq. ft. 0.52$
Miscellaneous Plumbing Permit Per Permit 232$
Swimming Pool, Spa, or Hot Tub Per Permit 232$
Water Heater Replacement Per Permit 117$
Gas Piping Extension for New FAU or HVAC Per Permit 116$ Mechanical Permit
Residential: New Single Family
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Residential: Kitchen & Bath Remodel Per Permit 116$
Commercial: New Shell Building
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Permit 1,700 sq. ft. min. 232$
Each additional sq. ft.per add'l sq. ft. 0.09$
Permit 3000 sq. ft. min. 697$
Each additional sq. ft.per add'l sq. ft. 0.16$
New FAU or HVAC Installations Per Permit 372$
Replacement FAU or HVAC Per Permit 232$
Miscellaneous Mechanical Per Permit 232$
Commercial: Complex Tenant Improvements (Car Washes, Dry Cleaners, Laundries, Labs, R&D, Biotech, Restaurants, Spray Booths, Hazardous Areas)
Commercial: Addition, Remodel, Tenant Improvement
Commercial: Complex Tenant Improvements (Car Washes, Dry Cleaners, Laundries, Labs, R&D, Biotech, Restaurants, Spray Booths, Hazardous Areas)
New or Replacement Circuit for HVAC or Other
Commercial: Addition, Remodel, Tenant Improvement
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Packet Pg. 118

CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Proposed Fee /
DepositFee Unit / Type
NotesService
Miscellaneous Building Fees
Grading Permit Fee for Swimming Pools Per Permit 116$
Grading Permit Fee for Other than Swimming Pools Per Permit 116$ Accessibility Plan Check of Building Permit 1 hour min. 232$ Each additional houreach add'l hr. 232$
Imaging Fees per page (standard size) Per Page 2.32$
Imaging Fees per page (oversize) Per Page 4.64$
Planning Application Review Per Permit 232$
During Normal Business Hours 1 hour min. 232$
Each additional houreach add'l hr. 232$
Outside Business Hours 2 hour min. 501$
Each additional houreach add'l hr. 250$
Code Enforcement-City Attorney 1 hour min. [1] 333$
Each additional houreach add'l hr. [1] 333$
Dirt Haul Permit n/a reference PW fee
schedule
Municipal Code Violation Fees
First Violation Per Violation 100$
Per Violation 200$
Per Violation 500$
GEO Plan Review / Soils Report Review n/a Actual Cost per Geologist
Per Instance 116$
Additional Plan Check Fee Per Hour 232$
Re-Inspection Fee Per Hour 232$
Demolition Per Instance 232$
Address Change Per Instance 232$
Green Building Review Per Review 232$
Energy Calculation Review Fee Per Review 116$
Apartment Inspection Annual Fee
Per Residential Building Per Year 290$
Per Dwelling Unit within each Building Per Year 14.66$
Strong-Motion Instrumentation and Seismic Hazard Mapping Fee (SMIP) Residential Per Project 0.013% of Project
Valuation
GIS Mapping: New Construction, Addition, Alteration
Second Violation of the Same Ordinance within 36-mths
Add'l Violation of the same ordinance within 36-mths
Fees for Second and Each Additional Re-inspection:
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Proposed Fee /
DepositFee Unit / Type
NotesService
Commercial Per Project 0.028% of Project
Valuation
SB1473 Building Standards Fee
$1 - 25,000 or fraction thereof per permit 1$
$25,000.01 - 50,000 or fraction thereof per permit 2$
$50,000.01 - 75,000 or fraction thereof per permit 3$
$75,000.01 - 100,000 or fraction thereof per permit 4$
Every $25,000.01 or fraction thereof above $100,000 each add'l $25,000.01 or fraction thereof 1$
Per Permit

0.4% of Total
Permit Fee
Amount
Per Project [3]

0.65% of Building
Project Valuation
for all New
Construction and
Additions; Fee is
Applied on
Building Permit
Per Project [3]

0.09% of Building
Project Valuation
for all New
Construction and
Additions; Fee is
Applied on
Building Permit
Construction Time Limits Extension Fee
Fees for Additional Extensions
1st 60 Day Extension Per Project [2] 0.5% of Total
Value of Project
2nd 60 Day Extension Per Project [2] 1.0% of Total
Value of Project
3rd 60 Day Extension Per Project [2] 1.5% of Total
Value of Project
Construction Time Limits Completion Penalties
Period of Time That Projects Remain Incomplete Beyond Applicable Time Limits 30 Day Grace Period Per Project $0
31st Day Through 60th Day Per Project

0.01% Per Day of
Total Value of
Project
61st Day Through 120th Day Per Project

0.015% Per Day
of Total Value of
Project
121st Day & Every Day Thereafter Per Project

0.02% Per Day of
Total Value of
Project
General Plan Maintenance and Update - Staff Support
General Plan Maintenance and Update - Contract Services Technology Fee
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Packet Pg. 120

CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Community Development Department, Building Department Fees (Effective on July 1st, 2026)
2%
Proposed Fee /
DepositFee Unit / Type
NotesService
Credit Card and eCheck Charges Each Transaction Actual Cost Building Division Staff Per Hour 232$
Each Additional Hour Each add'l hr. 232$
[Notes]
[2] The Building Official may waive an extension fee in the event he/she finds the complexity or size of the project requires a greater time than allotted or the reason for the extension request may be considered beyond the owner's control [3] Total General Plan Surcharge fee capped at $370,000 for building project valuations of more than $50 million For services requested of City Staff for which no fee is listed in this Master Fee Schedule, the City Manager or Department Director shall determine the appropriate fee based on the following hourly rates for staff time involved in the service:
[1] Subject to change per City Attorney contract
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Police Department Fees
(Effective on July 1st, 2026)
Accident Report [1]
Property damage only per report 10 $
Property damage with injuries per report 10 $
Fatality per report 10 $
County Jail Booking Fee County fee
Crime Report per report 10 $
False Alarm Response
First Response first call Fee Waived
Subsequent Calls per call 231 $
Impounded Vehicle [2]
Towed for criminal offenses per instance 114 $
Towed for all other offenses (abandoned, blocking
driveways, etc.) per instance 114$
Unruly Gatherings
First Call - $
Subsequent Calls per hour 345 $
Alarm Permit
New initial fee Fee Waived
Processing Permit for Excessive Cats & Dogs per instance 114$ Processing Police Officer Subpoena
Civil Witness Subpoena per day [3] $ 275 Criminal Witness Subpoena per day No Fee
Federal Witness Subpoena per day [4] $ 40 Tape of Radio/Video Transmission, Digital or Hard-copy
Photographs Per Request actual cost of
materials
Credit Card and eCheck Charges Each Transaction Actual Cost Visa/Police Clearance Request Form Per Request 40$
Non-Sworn Staff Members of the Police Department: per hour 114$ Sworn Staff Members of the Police Department: per hour 345$ [Notes]
[1] CA VC 20012 allows for recovery of the actual cost of providing accident report copies
[2] Towing charges are separate
[3] As set by GC 68096
[4] As set by 28 U.S.C. § 1821
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass-through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

Proposed Fee /
DepositService Fee Unit / Type
Notes
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Parks and Recreation Department Fees
(Effective on July 1st, 2026)
Parks, Facility, Room, and Amenity Rentals
Adult Community Center Room Rentals 3-hour minimum
Park View Room [2] R 93$ 887$ 115$ NR 111$ 1,065$ 138$ NP 65$ 621$ 81$ Patio Room [2] R 73$ 531$ 115$ NR 87$ 637$ 138$ NP 52$ 372$ 81$ Park View Patio Room [2] R 115$ 1,102$ 115$ NR 138$ 1,322$ 138$ NP 81$ 771$ 81$ Game Room [2] R Not Available 531$ 115$ NR Not Available 637$ 138$
NP Not Available 372$ 81$
Chestnut Room [2] R 73$ 531$ 115$ NR 87$ 637$ 138$ NP 52$ 372$ 81$ Loft [2] R 73$ 531$ 115$ NR 87$ 637$ 138$ NP 52$ 372$ 81$ Rental Application Fee : $25 (non-refundable; will be applied to the rental fee) Patio Fee with ACC rental : $50 (may only be rented in conjunction with the Patio Room, Parkview Room, or Game Room) Kitchen Fee : $100 R, NR and NP (limited use; restrictions apply - information included in the rental packet) Youth Center Facility Rentals 2-hour minimum
Gym (Full) [2][3] R 122$ 335$ 132$ NR 146$ 442$ 159$ NP 85$ 234$ 93$ Gym (Half) [2][3] R 75$ Not Available Not Available NR 90$ Not Available Not Available NP 53$ Not Available Not Available Dance Studio [2][3] R 66$ 228$ 75$ NR 79$ 274$ 90$ NP 46$ 159$ 53$ Arts & Crafts Room [2][3] R 53$ 205$ 66$ NR 64$ 238$ 87$ NP 37$ 144$ 46$ Homework Room [2][3] R 53$ 205$ 66$ NR 64$ 238$ 87$ NP 37$ 144$ 46$ Rental Application Fee : $25 (non-refundable; will be applied to the rental fee) Kitchen Fee : $25 R, NP and NR (limited use; restrictions apply - information included in the rental packet) Additional Services as Required Per Rental (Adult & Youth Centers):

Facility Attendant $34 Per Hour $34 Per Hour
Janitorial Services $225 Per Event or
Actual Cost
$225 Per Event or
Actual Cost
Insurance Actual Cost Actual Cost
Deposit - Parkview, Patio, Billiard Rooms n/a $500 Per Event Deposit - Patio, Chestnut Rooms, Gym n/a $250 Per Event Security Guard Fee - Private Rentals Serving Alcohol $72 Per Hour or Actual Cost
$72 Per Hour or
Actual Cost
Service
Notes
Category
(R=Resident,
NR=Non-
Resident,
NP=Non-Profit)
Proposed Fees
Weekday Hourly
(Mon-Fri 5PM)
Weekend (Fri 5PM -
Sun)
Weekend Hourly
Additional
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Parks and Recreation Department Fees
(Effective on July 1st, 2026)
San Carlos Library Community Room Rental $72 Per Rental n/a Picnic Sites Rentals (March - October)
Laureola West Side Picnic Area, Laureola Park[4] 163$ Per Event Playground Picnic Area, Burton Park [4] 163$ Per Event Les Mundell Grove, Burton Park [4] 110$ Per Event Chestnut Picnic Area, Burton Park [4] 110$ Per Event Corn Hole Game Area, Chestnut Picnic Site (add-on) 25 $ Per Event Tot Lot Picnic Area, Burton Park [4] 85$ Per Event Arguello Park: Sunny Site, Shady Site [4] 85$ Per Event Crestview Park Picnic Area [4] 85$ Per Event Bocce Ball
Court 1, Burton Park 20 $ Per Hour Court 2, Burton Park 20 $ Per Hour Rental Application Fee 25 $ Each Special Event Permit
New Request [1] 407$ Per Event Repeat Request [1] 381$ Per Event City Staff On-Site Time During Event See Hourly Rate Per Hour Athletics
Light Use (Fields) 33 $ Per Hour Field Use Fee
R-NP 29$ Per Hour
NR-NP 36$ Per Hour
Sports League Field Use Fee:

Full Season - 6 months
San Carlos Youth Softball (Girls) 86 $ Per Player Youth Baseball 86 $ Per Player Soccer 86 $ Per Player
Secondary Season - 3 months add-on
San Carlos Youth Softball (Girls) 43 $ Per Player Youth Baseball 43 $ Per Player Soccer 43 $ Per Player
Sports League Maintenance Fee:

San Carlos Youth Softball 34 $ Per Player Youth Baseball 34 $ Per Player Soccer 34 $ Per Player
Baseball / Soccer Sports Tournament:

New Request Permit Fee 350 $ Per Event Repeat Request Permit Fee 300 $ Per Event Tennis:

Resident Tennis Club 16 $ Per Hour, Per Court Non-Resident Tennis Club 23 $ Per Hour, Per Court Snack Shack Use
Fall Season (August 15 - November 30) 313 $ Per Season Spring Season (March 1 - May 31) 313 $ Per Season Snack Shack Use (Outside of Primary Youth Sports Seasons) Rental Fee (Mon - Sun) 52 $ Per Week Service
Notes Primary Rate Unit
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CITY OF SAN CARLOS
COST OF SERVICES (USER FEES) FY 2026-27 Proposed
Schedule of Parks and Recreation Department Fees
(Effective on July 1st, 2026)
Miscellaneous
Park Fitness Group Rental 28 $ Per Hour Administrative fees (apply to class registration only)
Registration 11 $ Per Registrant Refund 11 $ Per Registrant Neighborhood Block Party Permit (Up to 2 Block Parties Per Year) Fee Waived Community Events - City Sponsored
Including but not limited to: Farmers Market, Hometown Days, Art & Wine Faire, Night of Holiday Lights, Goblin Walk, Concerts, Downtown Block Party, etc.

Fees charged for City-sponsored Community Events shall be set at the discretion of the Parks and Recreation Director and shall not exceed the estimated and reasonable cost of conducting the event
Per City Council authorization on February 28, 2022, Hometown Days booth fees with the exception of San Mateo County Health Department permit County Health Department permit fees and equipment rental fees will be waived for all non-profit organizations PW Maintenance Staff 277 $
Full-Time 200 $
Part-Time 34 $
Recreational Programs
Fees imposed for recreational programs offered by the City shall be set at the discretion of the Parks and Recreation Director, not to exceed the cost of the individual programs. The City's full cost of implementing an individual program may be calculated as follows:

Program Cost of Service = [ (A x B) + C + D + E + F + G ] A = Estimated time for City staff to implement the individual program.

B = Applicable hourly rates for the staff functions involved in the implementation of the individual program (below).

C = Actual cost incurred by the City for any outside service provider involved in the individual program.

D = Actual Cost incurred by the City for any specific materials acquired for use during the individual program E = Prevailing facility rental and/or field use fees imposed by the City and reflected in its Master Fee Schedule F = Prevailing department / City administrative fee
G = Actual costs incurred by the City to rent and/or use facilities/fields from other entities The calculated cost of service above represents the maximum fee that could be imposed by the City for an individual recreation program. The City may recover between 0% and 100% of the cost of service. Cost recovery targets may vary by individual program, at the discretion of the Parks and Recreation Director as determined during the seasonal development of the City's program offerings. The City may also set differential fee for resident and non-resident participants as long as neither fee exceeds the cost of service. Any person with a home San Carlos mailing address is considered a resident. A San Carlos PO Box or business address will not be taken as proof of residency. A non-resident is someone who lives in another City. Non-resident fees will be charged at 20% of the class fee up to a $20 maximum per class. [Notes]
[1] In addition to Parks and Recreation staff time, time is spent by other City departments. Breakdown of other departments time and hourly rate information involved in approving special event permits is as follows:
20 minutes of Public Works staff time at $215 per hour; 20 minutes of Police staff time at $114 per hour;
10 minutes of Planning staff time at $338 per hour, and; 10 minutes of Building staff time at $232 per hour.
[2] Includes facility staff. Additional charge for janitorial services and insurance as needed. [3] Facility rental available for Youth related events only [4] Additional Charge for Insurance as Needed
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this department/division. Additionally, the City will pass- through to the applicant any discrete costs incurred from the use of external service providers if required to process the specific application.

Primary Rate Service
Notes Unit
24 of 24

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Impact Fees - FY26-27 Proposed Changes
PARK FACILITY DEVELOPMENT FEE (Municipal Code Chapter 3.34) E. Annual Increase. The fee set forth in subsection B of this section shall be increased annually by the percentage increase of park construction costs cited in the Engineering News Record, for the San Francisco Bay Area, as determined by City Engineer.

Existing Proposed
Fee per bedroom 2,709$ 2,722$
ENR City Cost Index Annual Change (March 2025 to March 2026) 0.49% SEWER CAPACITY CHARGES (Municipal Code Chapter 13.04)
E. The sewer capacity charge shall be adjusted annually based on the change in the Engineering News-Record Construction Cost Index (20-Cities Average) from the March 2026 index.

Existing Proposed
RESIDENTIAL (charge per residential dwelling unit)
Single Family 14,534$ 14,929$
Multi-Family
(includes
Duplexes,
Apartments,
Condos & Co-op
Projects) 6,723$ 6,906$
NON-RESIDENTIAL (charge per 100 gpd of estimated wastewater discharge) Commercial,
Retail,
Professional,
Institutional &
Industrial Users 100 gpd 7,649$ 7,857$
1gpd 76$ 78.00$
ENR Construction Cost Index Change (see note below - March 2025 to March 2026) 2.72% Note - the % change for the FY26-27 Sewer Capacity Charge was calculated from the change in the CCI from March 2025 to March 2026 TRAFFIC IMPACT FEE (Municipal Code Chapter 8.50)
E. Annual Increase. Effective October 28, 2020, per Ordinance 1562, the amount of the Traffic Impact Fee shall be $6,196 per p.m. peak hour trip, adjusted annually based on the Construction Cost Index published by the Engineering News Record.

Land Use ITE Trip Rate Unit Existing Existing Calculated Fee Proposed Proposed
Calculated Fee
Office 1.151000 sf 7,477$ 8,599$ 7,514$ 8,641$ Research & Development 0.491000 sf 7,477$ 3,664$ 7,514$ 3,682$ Manufacturing 0.671000 sf 7,477$ 5,010$ 7,514$ 5,034$ Warehousing 0.191000 sf 7,477$ 1,421$ 7,514$ 1,428$ Restaurant 9.771000 sf 7,477$ 73,050$ 7,514$ 73,412$ Retail 3.811000 sf 7,477$ 28,487$ 7,514$ 28,628$ Single-Family 0.99Unit 7,477$ 7,402$ 7,514$ 7,439$ Multi-Family (Condos/Apts) 0.56Unit 7,477$ 4,187$ 7,514$ 4,208$ Condo/Townhome 0.56Unit 7,477$ 4,187$ 7,514$ 4,208$ Hotel 0.6Rooms 7,477$ 4,486$ 7,514$ 4,508$ Medical Office 3.461000 sf 7,477$ 25,870$ 7,514$ 25,998$ ENR Construction Cost Index Change (March 2025 to March 2026) 0.49% CHILD CARE DEVELOPMENT IMPACT FEE (Municipal Code Chapter 8.52) E. The child care development fee shall be adjusted annually based on the Construction Cost Index published by the Engineering News Record Reduced Feees for Nonresidential DevelopmentUnit Existing Proposed Office/Research & Development (R&D) per sq. ft. 5.03$ 5.05$ Retail per sq. ft. 2.52$ 2.53$
Hotel per sq. ft. 1.61$ 1.62$
Industrial per sq. ft. 1.61$ 1.62$
ENR Construction Cost Index Change (March 2025 to March 2026) 0.49%

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Receive a Report Regarding Parking of Recreational Vehicles, Campers, Trailers, or Boat Trailers on City Streets, Provide Direction on a Preferred Policy Approach, and Direct Staff to Return with Ordinance Amendments and/or an Implementation Plan for the City Council’s Consideration.

RECOMMENDATION:

Receive a report regarding parking of recreational vehicles, campers, trailers, or boat trailers (“recreational vehicles” or “RVs”) on City streets, provide direction on a preferred policy approach, and direct staff to return with ordinance amendments and/or an implementation plan for the City Council’s consideration.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with this report, and no additional funding is needed at this time. Future fiscal impacts may include costs associated with signage and personnel costs associated with enhanced enforcement and outreach services.

BACKGROUND:

Beginning around February 2025, the San Carlos Bureau of the San Mateo County Sheriff’s Office (“Sheriff’s Office”) experienced an increase in reports of recreational vehicle-related activity, primarily in San Carlos’ commercial area east of El Camino Real. The recurring complaints, from both businesses and residents, were primarily related to long-term parking and habitation of recreational vehicles on public streets. Attachment 1, titled Public Comments Received, includes a sampling of the types of concerns expressed by residents and businesses.

Based on four recent counts of recreational vehicles by Sheriff’s deputies, approximately 15 to 20 recreational vehicles occupy on-street, public parking spaces for extended periods of time. The most frequently impacted areas are on Commercial Street, Old County Road, Bing Street, Branston Road, and surrounding streets.

Below is a summary of recreational vehicle-related complaints in 2025:
65 dispatched calls for service
134 Inform San Carlos submissions
80 recreational vehicles tagged for abandonment
7 recreational vehicles towed

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Between January 1, 2025 and April 7, 2026, the San Carlos Bureau issued warnings and $50 citations for violations of San Carlos Municipal Code § 8.40.040(B) including:
348 citations (of which, 44% were paid)
3 warnings
In addition to residents and businesses, both City code enforcement and law enforcement have expressed concern over the increase in the number of recreational vehicles parking long term in the City. Some of the reported impacts of long-term parking of recreational vehicles include:
Limited parking availability for employees, customers, service vehicles, and deliveries in commercial areas
Trash accumulation, improper waste disposal, environmental concerns, and potential storm drain dumping when recreational vehicles do not have proper access to utilities or waste facilities
Generator noise during business and nighttime hours
Storage of gas cans or propane tanks outside of vehicles Unsafe use of electrical extension cords
Theft of utility services
Visual blight
Existing Laws. Current regulations related to recreational vehicle parking in the city include:

Municipal Code Section 8.40.040 – Recreational Vehicles Municipal Code Section 8.40.040 specifically addresses recreational vehicle parking on City streets. Under this section, RVs are prohibited from parking on any public street between the hours of 10:00 p.m. and 6:00 a.m. This section includes a limited exception for City residents who are departing for or returning from a trip, outing, or vacation, allowing temporary overnight parking adjacent to their residence for loading and unloading purposes, no more than twice in a seven- day period. This section also includes an exception where the Police Chief may allow temporary use of a recreational vehicle for up to 14 days.

In addition, Section 8.40.050 authorizes the City to tow and impound vehicles found in violation and establishes a $50 fine for violations of this chapter.

Municipal Code Section 8.41.040 – Campers, Trailers, and Boat Trailers Municipal Code Section 8.41.040 applies similar restrictions to campers, trailers, boats, and boat trailers. This section likewise prohibits these vehicle types from parking on public streets between 10:00 p.m. and 6:00 a.m., subject to limited resident and permit exceptions, and authorizes the City to tow and impound vehicles found in violation. The citation is $50.

Municipal Code Section 10.32.400 and California Vehicle Code Section 22651(k) – 72-Hour Parking Rule
Municipal Code Section 10.32.400, together with applicable provisions of the California Vehicle Code, prohibit any vehicle from remaining parked continuously in the same location for 72 or more consecutive hours. This section authorizes the City to tow and impound vehicles found in violation.

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The impound fee is $114. The tow fee is $3,500. Both fees are the responsibility of the vehicle owner, however, if the owner does not retrieve their vehicle, the responsibility falls on the Sheriff’s Office.

ANALYSIS:

Enforcement and Limitations
The Sheriff’s Office conducts daily patrols and marks vehicles with 72-hour warning stickers when applicable. Night patrol teams issue $50 overnight parking citations when feasible. Despite these enforcement efforts, the total number of recreational vehicles currently parked in San Carlos at any given time remains at approximately 15 to 20, indicating that vehicles are frequently moving, but staying within San Carlos.

While the existing code provisions provide enforcement mechanisms, the City has not been successful in reducing the number of recreational vehicles parked in east San Carlos for the following reasons:
The existing overnight parking restrictions (10:00 p.m. to 6:00 a.m.) do not address extended daytime parking, which is the primary concern expressed by businesses who rely on daytime customer and employee parking.
The 72-hour parking rule can be easily circumvented by relocating vehicles short distances within the same general area, allowing long-term occupancy to continue. Vehicles that are determined to be unoccupied may be subject to towing; however, occupied vehicles cannot be towed, which limits enforcement options in many cases.

Furthermore, the Sheriff’s Office contract with Action Tow states that when the towed vehicle is left impounded for over 30 days, the Sheriff’s Office will be charged $3,500.

Approximately twice over the past year, the Sheriff’s Office has had to pay the $3,500 fee. The $50 citation is less expensive than RV storage fees or alternative housing arrangements, reducing the deterrent effect of the fine. In fact, 44% of recreational vehicle citations were paid in 2025.
The Sheriff’s Office has only one deputy assigned to the east side area during nighttime hours, which constrains the amount of overnight enforcement that can reasonably occur.

Anecdotal Information about Recreational Vehicle Occupants in San Carlos Personal details about recreational vehicle occupants cannot be disclosed publicly. Many occupants also generally avoid contact with law enforcement and outreach services, so it is difficult to gather information.

However, staff have determined that there are many possible reasons for why people live in recreational vehicles. For example, due to high regional housing costs, some use a recreational vehicle as temporary or more affordable housing. A smaller number of recreational vehicle occupants are more transient or choose the lifestyle for mobility. They may avoid shelters for various reasons. Recreational vehicles may be viewed as preferable to a shelter because inhabitants may:
Enjoy their own space, privacy, security, and mobility Have belongings requiring storage
Be averse to communal living

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Desire to maintain independence
Possess behavioral health challenges
Not be ready to transition to structured housing
Not be permitted to keep pets or use alcohol/drugs at the shelter Not be sheltered with their partner or spouse
Need to sell or store their recreational vehicle
Benefit from consistent shelter and weather conditions if shelters do not provide permanent access
Outreach to Individuals
The Sheriff’s Office patrol deputies (“deputies”) and Psychiatric Emergency Response Team (PERT) work in partnership with LifeMoves’ Homeless Outreach Team (“LifeMoves”) case managers assigned to San Carlos to contact recreational vehicle occupants in San Carlos.

When conducting outreach, deputies, PERT, and LifeMoves travel to each recreational vehicle, knock on the door, and identify themselves in attempt to connect with the occupant and offer referrals to housing or shelter. Still, it is challenging to contact occupants because many attempt to avoid contact.

For example, on March 24, 2026, PERT and LifeMoves counted and attempted to contact the occupants of 21 RVs to share resources with them. Of 21 RVs, the occupants of two opened their doors to have conversations with LifeMoves, and the occupant of a third RV actively fled as staff approached their recreational vehicle.

Efforts to contact individuals remain ongoing but depend on the individual and the case. Deputies and PERT may engage with the same individual multiple times over weeks or months, offering services during each contact to build trust and encourage acceptance of assistance. Despite these efforts, some individuals choose not to accept services (see “Anecdotal Information about Recreational Vehicle Occupants in San Carlos” section above).

LifeMoves provides ongoing outreach efforts at their discretion and tracks their findings. If individuals engage with LifeMoves, there is a process for accessing shelter and housing resources, which can feel tedious and lengthy.

As for outcomes, outreach success varies. Some individuals do accept services and transition into shelter or housing, particularly after repeated contacts. However, it is more common for multiple engagements to be required, and not every individual ultimately accepts assistance.

Overall, progress tends to be gradual and dependent on individual readiness and resources.

Actions Taken by Neighboring Cities
Staff undertook a comprehensive review of both the City’s current regulatory framework and the approaches used by neighboring jurisdictions, who like San Carlos have seen increased rates of recreational vehicles parking in their cities.

As part of this analysis, staff contacted the Cities of Belmont, Redwood City, San Mateo, and Menlo Park, as well as the County of San Mateo, to better understand how surrounding agencies have addressed long-term parking and habitation of recreational vehicles.

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The table summarizes each jurisdiction’s regulations and enforcement practices, with more details explained in-depth below.

Jurisdiction Primary RV Enforcement Tools
Utilized
Recent Change to
Regulations or Enforcement
San Carlos 72-hour parking limit
Prohibition on parking RV from
10:00 p.m. to 6:00 a.m.
-
Belmont 72-hour parking limit
Prohibition on habitation in a
vehicle
No noticeable increase in RVs
and no plans to change
regulations
Redwood City 72-hour parking limit
Ordinance prohibiting oversize
vehicle parking from 8:00 p.m.
to 5:00 a.m.

Considering increasing
signage
Menlo Park 72-hour parking limit
Ordinance prohibiting oversize
vehicle parking from 2:00 a.m.
to 5:00 a.m.

Yes, increase in enforcement
in 2025 and nighttime
ordinance
San Mateo 72-hour parking limit
24/7 oversize vehicle
restriction in residential zones
No vehicle habitation
ordinance
Yes, increase in enforcement
in 2025
County of San
Mateo
72-hour parking limit
Signage along County
highways prohibiting oversize
vehicle or trailer parking
No noticeable increase in RVs
and no plans to change
regulations

City of Redwood City
Prior to 2020, Redwood City had 100+ RVs and oversized vehicles parked citywide. In response, the City of Redwood City adopted citywide overnight parking restrictions (8:00 p.m. to 5:00 p.m.), enhanced law enforcement presence by conducting enforcement one to two times per week during late-night hours, and established a temporary safe parking program. Redwood City now reports there are between 10 to 15 recreational vehicles citywide.

Redwood City’s temporary RV Safe Parking Program (“Program”) operated from 2020 through 2023 and served 91 households, with approximately 60 percent transitioning into permanent housing prior to program closure. Its City Council approved the Program as a two-year pilot and initially allocated $1.7 million in funding for it, with LifeMoves operating the site and providing casework. The City does not currently have plans to reinstate the Program.

Redwood City staff emphasized that clear signage and repeated noticing to recreational vehicle occupants would help identify problems early, address issues quickly, and keep vehicles moving.

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City of San Mateo
The City of San Mateo prohibits oversize vehicles from parking in residential areas 24/7 and has a citywide prohibition on living or sleeping in vehicles.

For several months in 2025, the City of San Mateo began increasing enforcement through repeated warning notices and flyers, direct outreach to occupants, coordination with service providers, and clear notice regarding enforcement escalation. They would let them know that the ordinance had changed and enforcement was going to increase, they offered resources, and they warned occupants that when it was their last chance to comply.

Following these outreach efforts, the number of recreational vehicles in San Mateo declined from approximately 60 vehicles to 20 vehicles.

City of Menlo Park
Menlo Park amended its municipal code in February 2025 to prohibit oversized vehicles from parking anywhere in the city between 2:00 a.m. and 5:00 a.m.

Before the ordinance took effect, staff conducted significant outreach to spread awareness that the ordinance was becoming more restrictive. They conducted outreach in writing and via door knocking with local social service agencies to ensure that occupants had the opportunity to accept housing resources. They ensured that they connected with each oversized vehicle occupant on at least three occasions before the ordinance took effect.

City of Menlo Park also installed signage in the areas where RVs were frequently parking.

The day the ordinance went into effect, approximately 40 oversize vehicles departed the city. As of March 2026, the City of Menlo Park has not had to issue a citation.

City of Belmont and County of San Mateo
The City of Belmont and the County of San Mateo have not reported noticeable increased cases of recreational vehicles in their jurisdictions, nor did they express having future plans to amend their regulations.

Across all neighboring jurisdictions, there are a few consistent lessons learned:
Clear ordinance language alone is insufficient
Repeated notice of laws and regulations significantly improve compliance Social service outreach and coordination is critical
Visible signage easily informs recreational vehicle occupants of where they should not park
Consistency in enforcement is essential to avoid simple relocation instead of reduction of long-term parking of recreational vehicles
Potential Policy Approaches
Based on staff research and the operational lessons learned from neighboring cities, several potential policies and options have been identified for the Council’s consideration. The Council may choose to pursue one, none, or a combination of these approaches. Once feedback and

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direction is provided by the Council, staff will return with an ordinance amendment and/or an implementation plan for the City Council’s consideration.

Description Pros Cons
1 Citywide 24/7
prohibition of
recreational vehicles
Clearly restrictive,
addresses businesses’
concerns, easier for
Sheriff’s Office to enforce
Very restrictive
2 Increased fines Improved deterrence May not change behavior 3 Increased outreach and
service coordination
Addresses root causes
empathetically
Expensive, requires more staff
time, could be a lengthy
process
4 Increase overnight
parking restriction to
8:00 p.m. to 8:00 a.m.

Potentially easier for
Sheriff’s Office to
enforce.

Doesn’t address daytime
parking concerns posed by
businesses
5 Industrial/commercial
area 24/7 prohibition of
RVs or oversize
vehicles
Clearly restrictive, and
easier for Sheriff’s Office
to enforce. Addresses
businesses’ concerns
Some businesses work with
oversize vehicles and could be
affected by this regulation.

Exceptions may need to be
made for vehicles that are
actively loading.

Could encourage RVs to park in
residential areas.
6 Time-limited (such as
12-hour, 24-hour, or 2-
hour) daytime parking
in industrial/commercial
area
May dissuade
recreational vehicle
occupants
2-hour parking limitation could
hurt businesses who value all-
day on-street parking
7 Provide safe parking lot Offers an alternative
place for occupants to
park
Expensive, reportedly causes
increased crime and therefore
is not recommended by
Sheriff’s Office or neighboring
law enforcement
ALTERNATIVES:

The alternatives available to the City Council include:

1. Receive a report regarding parking of RVs on City streets, provide direction on a preferred policy approach, and direct staff to return with ordinance amendments and/or an implementation plan for the City Council’s consideration; or

2. Provide staff with alternative direction.

Respectfully submitted by:

Quinne Woolley, Management Analyst
Nil Blackburn, Interim City Manager

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Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Public Comments Received

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Public Comments Received
From: Jennifer Rosse < >
Sent: Monday, March 16, 2026 6:17 PM
To: C
ity of San Carlos <[email protected]>
Subject: Re: City of San Carlos News Release - Captain Mike Tabak Selected as Chief of Police Services
Thanks for this update.

Is he the person to contact about the growing number of RVs parked in East San Carlos that people are living in?
What is his contact info?
Thank you,
Jennifer
On Mon, Mar 16, 2026 at 3:02 PM City of San Carlos <[email protected]> wrote:

City of San Carlos News Release
Captain Mike Tabak Selected as Chief of Police Services (SAN CARLOS, CA, March 16, 2026) — Captain Mike Tabak has been selected as the next Chief of Police Services for the City of San Carlos. Captain Tabak will assume the role from Chief Mark Myers, who was recently promoted to Assistant Sheriff of Operations for the San Mateo County Sheriff’s Office.

Captain Tabak brings nearly 20 years of distinguished law enforcement service to the role, returning to San Carlos where he previously served as a Deputy Sheriff. “The City of San Carlos greatly values Captain Tabak’s community-focused approach to policing and his previous experience serving the City, ” remarked Nil Blackburn, Interim City Manager. “I am confident that his steady leadership and proven commitment to community partnerships will continue to strengthen public safety in San Carlos. ”

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A lifelong San Mateo County resident, Captain Tabak began his career with the San Mateo County Sheriff’s Office as a correctional officer, before going on to serve as a Deputy Sheriff in Millbrae, San Carlos, and unincorporated Redwood City. After achieving the rank of Detective, Captain Tabak distinguished himself as a leader in community policing and local mental health initiatives, collaborating with Behavioral Health and Recovery Services (BHRS) to lead the Psychiatric Emergency Response Team (PERT) in San Carlos.

Reflecting on his appointment, Captain Tabak shared his gratitude and enthusiasm for the opportunity to serve San Carlos. "I am truly honored to serve as the Chief of Police Services for the City of San Carlos, a community I've had the pleasure of serving throughout my career, ” said Captain Tabak. “It's a big job, but I'm confident that with the support of the City, the Sheriff, and the great people who work here, we're going to make positive strides in policing that reflect local values. I very much look forward to meeting and collaborating with the San Carlos community. "

City leadership also expressed strong support for Captain Tabak’s selection. “I look forward to working with Captain Tabak and continuing to strengthen our partnership with the San Mateo County Sheriff’s Office, said San Carlos Mayor Pranita Venkatesh. “Captain Tabak’s previous leadership with PERT and his ability to build trust and work collaboratively with the community align with our values here in San Carlos. Those qualities make him an excellent choice to lead our Police Bureau forward. ”

# # #

*You are receiving this message because you are subscribed to the News Releases E-News group.

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From: Tony Barulich <[email protected]>
Sent: Friday, January 30, 2026 9:30:00 AM
To: Pranita Venkatesh <[email protected]>
Cc: Sara McDowell <[email protected]>; Adam Rak <[email protected]>; John Dugan <[email protected]>; Neil Layton
<[email protected]>; [email protected] <[email protected]>; Robert Willis <[email protected]>; Nate Kramer <[email protected]>; *City Council <[email protected]>
Subject: RV Parking on Bransten Rd. San Carlos

Dear Mayor and City council members,
My name is Tony Barulich and I am a business owner at 1017 Bransten Rd. in San Carlos. We have been dealing with the Sheriff's department and code enforcement for the last 5 years (and more) about the problematic issue of RV campers parking and living on our street. It seems like a Cat and Mouse issue that the RV dwellers seem to know how to play very well. Currently there are 4 campers that have dug in their heals and are not moving.

They leave garbage outside, run generators at all times of the day and night, and are a blight on our business neighborhood. They are usually accompanied by additional cars they use to get around town while leaving their campers in the same spot for days and weeks.

More importantly they are taking up parking that should be for our employees and customers.

I want to start a campaign to limit parking on our street to either 12 or 24 hours. This will give our Sheriff's department the ability to cite these violators. I am sure I can get most of the business owners to back this campaign. I am looking for your counsel and support to get this started. Your kind response and attention to these issues is greatly appreciated.

Respectfully,

Tony Barulich
President
Camco Furnace
1017 Bransten Road
San Carlos, CA 94070

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Phone: (650) 593-1064

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Inform San Carlos Submissions From 03/20/25 to 03/20/26 Request
Type Description Address
Date
Created
Abandoned
Vehicle
Good morning,

We have had 3 motorhomes parked in front of our business for over a week now. We reach out to the city every week and you tag them, and they move for a day and come right back. There has to be something more the City can do!!! This has been an ongoing issue since about October!!! I noticed Sign's on Old County Road that state no RV or Overnight Parking. Why can't these signs be posted in this whole area!!!

Also the Black Truck Trailer I reported last week is still here! You came out and tagged it, but it hasn't moved whatsoever!!

I have lived in San Carlos for over 20 years now and have worked at this address for 12 years. I have never seen anything as bad as this has been for the past 6 or so months.

I feel the east side of El Camino in San Carlos get's neglected.

These vehicle's wouldn't last a day if they were on the west side of El Camino.

PLEASE MAKE SOMETHING HAPPEN
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
03-26
11:17:16
Abandoned
Vehicle
This RV has been on the street for several weeks. It does not appear occupied or in running condition.
1000
Bransten
Rd, San
Carlos, CA
94070, USA
2025-
03-31
11:26:14
Abandoned
Vehicle
Several RV's, including long trailers, continue to park on Bing and adjacent streets all along this area for extended periods of time. It is problematic during weekdays as just a single RV would take up at least 2 street parking spaces for the people that work here. A trailer can take up to 4-5 spaces on the street. Employees all along this area are struggling to find parking. Please enforce extended parking from RV's and trailers. Thank you.
981 Bing St,
San Carlos,
CA 94070,
USA
2025-
04-15
11:21:16
Abandoned
Vehicle
WE HAVE 2 MOTORHOMES/RV ON THE BING ST SIDE OF
OUR BUSINESS. THE OLDER LOOKING MOTORHOME HAS
BEEN PARKED HERE SINCE LAST THURSDAY THE 10TH

AND THE NEWER LOOKING MOTORHOME//TOUR BUS

LOOKING RV HAS BEEN PARKED HERE SINCE SOMETIME
OVER THE PAST WEEKEND.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
04-18
12:32:39
Abandoned
Vehicle
WE HAVE 2 MOTORHOMES/RV ON THE BING ST SIDE OF
OUR BUSINESS. THE OLDER LOOKING MOTORHOME HAS
BEEN PARKED HERE SINCE LAST THURSDAY THE 10TH

AND THE NEWER LOOKING MOTORHOME//TOUR BUS

LOOKING RV HAS BEEN PARKED HERE SINCE SOMETIME
OVER THE PAST WEEKEND.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
04-18
12:33:29

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Abandoned
Vehicle
Abandoned RV on Old County Rd at border of Redwood City. Old County Rd, San
Carlos, CA,
USA
2025-
04-26
22:37:34
Abandoned
Vehicle
THIS RV HAS BEEN PARKED HERE FOR 2 WEEKS NOW!!!!
IT'S PARKED ON THE BING ST SIDE OF OUR BUSINESS.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
04-30
08:59:56
Abandoned
Vehicle

THE RV IN THE MIDDLE OF THE PHOTO HAS BEEN HERE

ABOUT A WEEK AND A HALF AND THE RV PARKED BEHIND
THE PRIUS JUST ARRIVED SOMETIME OVER LAST NIGHT.

THESE ARE PARKED ON THE BING STREET SIDE OF OUR
BUSINESS.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
04-30
10:18:02
Abandoned
Vehicle
Multiple RV's parked on the whole block of Commercial Street between Old County & Industrial Rd
Commercial
St, San
Carlos, CA
94070, USA
2025-
05-05
07:03:55
Abandoned
Vehicle

THE NEWER LOOKING RV HAS BEEN PARKED HERE ON

THE BING STREET SIDE OF OUR BUSINESS SINCE

SOMETIME OVER THE WEEKEND AND THE OLDER
LOOKING RV HAS BEEN HERE SINCE MONDAY. I DON'T

UNDERSTAND WHY THE CITY CAN'T STAY ON TOP OF
THESE RV'S!! WE HAVE TALKED TO THE OTHER

BUSINESSES AROUND US AND THEY ARE FRUSTRATED
ALSO!! THESE RV'S ARE A DAILY PROBLEM AND ARE
TAKING UP EMPLOYEE AND CUSTOMER PARKING. PLEASE
POST SIGNS ABOUT NO RV OR OVERNIGHT PARKING!! LIKE

THE ONES POSTED ON OLD COUNTY ROAD AND BING
STREET!
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
05-07
10:19:46
Abandoned
Vehicle
Abandoned RV in the Lucky Supermarket parking lot 1133 Old County Rd. Please tow away!
Old County
Rd, San
Carlos, CA,
USA
2025-
05-15
00:34:59
Abandoned
Vehicle
Abandoned RV on Old County Rd at border of Redwood City.

Please tow away!
Old County
Rd, San
Carlos, CA,
USA
2025-
05-15
00:41:57
Abandoned
Vehicle
old RV 1063 Old
County Rd,
San Carlos,
CA 94070,
USA
2025-
05-20
07:16:43
Abandoned
Vehicle
THESE 2 RV'S HAVE BEEN PARKED ON THE BING ST SIDE
OF OUR BUSINESS SINCE SOMETIME OVER THE WEEKEND.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
05-22
10:46:53

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Abandoned
Vehicle
ON THE BING STREET SIDE OF OUR BUSINESS 2 OF THESE

RV'S HAVE BEEN PARKED HERE SINCE LAST WEEKEND
MAY 30TH. A 3RD ONE ARRIVED OVER THIS WEEKEND AND
THEY DROPPED IT IN THE MIDDLE OF THE 2 BIG RV'S. CAN

THE CITY PLEASE STEP UP THIER EFFORTS AND ENFORCE
THESE RV'S. WE SHOULDN'T HAVE TO EMAIL EVERY
COUPLE DAYS ABOUT THEM. NOT ONLY ARE THEY AN

EYESORE BUT THEY ARE TAKING UP PARKING FOR ALL
BUSINESSES AROUND US. AND TO ADD WHAT HAPPENED

IN SAN JOSE A COULPE WEEKS AGO WHERE THE RV
CAUGHT ON FIRE AND THE PERSON INSIDE DIED. PLEASE
PUT A STOP TO THIS!
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
06-09
08:59:23
Abandoned
Vehicle
Toyota Truck with Camper & Trailer attached that is leveled on blocks. Has been parked here for over a week. There are plastic bags in gutter with what looks like to be used for human feces.

Looks like someone is living in the box trailer.

There are also additional RV & Trailers parked abandoned on Commercial Street between Old County & Industrial again. One trailer has cones around it with its push out partially out. 930
Commercial
St, San
Carlos, CA
94070, USA
2025-
06-18
08:03:58
Abandoned
Vehicle

THIS RV HAS BEEN PARKED IN FRONT OF OUR BUSINESS
SINCE THURSDAY THE 3RD. AGAIN, NOT ONLY ARE THESE

AN EYESORE BUT THEY TAKE UP CUSTOMER AND

EMPLOYEE PARKING FOR OUR BUSINESS AND THE
SURROUNDING BUSINESSES. ALSO WANT TO ADD THESE
ARE A SAFETY HAZARD.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
07-07
11:13:29
Abandoned
Vehicle
This is a deralect RV with no plates that has regulary been parked over the past few months. Why can't they be cited or towed? 1000
Bransten
Rd, San
Carlos, CA
94070, USA
2025-
08-11
12:03:45
Abandoned
Vehicle
This RV has been parked in front of 136 Beverly Dr. for most of the summer. It was moved for a day or two on three different occasions in July/August when street repairs were being done on Beverly Drive. It has been parked in the same location since August 13th after the last street repair. I'm not sure if anyone is living in the RV but there is an thin outdoor electrical cord running from the house to the RV on the public sidewalk which presents a possible trip or electrocution hazard. I believe it also presents a traffic hazard due to the width of the RV and our narrow street. 136 Beverly
Dr, San
Carlos, CA
94070, USA
2025-
08-25
11:46:00
Abandoned
Vehicle
This car has been parked here for several weeks as you can tell by the dust and dirt. In general, Bransten road has seen a large increase in long term parking or abandoned vehicles. Including two derelict RV's, and derelict Jaguar that are a hazard and an eye sore. Parking is always tough, these vehicles make it worse. 1000
Bransten
Rd, San
Carlos, CA
94070, USA
2025-
09-12
12:02:34
Abandoned
Vehicle
THIS RV HAS BEEN PARKED HER FOR A WEEK NOW. IT'S

PARKED BETWEEN PACE SUPPLY AND DEVILS CANYON ON
BAYPORT.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
09-24
11:14:55

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Abandoned
Vehicle
THIS WHITE GMC SUV HAS COME BACK WITH RV TRAILER. I

EMAILED A LITTLE OVER A WEEK AGO BUT YOU GUYS

LAGGED IN RESPONE AND THEY ENDED UP LEAVING
BEFORE YOU SENT SOMEBODY OUT. THIS TIME THEY
CAME BACK SOMETIME OVER THE WEEKEND. THEY ARE

GETTING BOLDER AND ARE PARKED RIGHT IN FRONT OF
OUR BUSINESS. NO, THEY ARE NOT BLOCKING ARE

DRIVEWAY BUT MAN IT'S AN EYESORE NOT ONLY FOR US

BUT OUR CUSTOMERS THAT ASK ON A DAILY BASIS ABOUT
IT. WE CONSTANTLY HAVE BIG TRUCKS PULLING IN AND

OUT OF THIS DRIVEWAY AND THE TRAILER IS BLOCKING
THE VIEW TO THE STREET. THESE RV'S HAVE

DISSAPPERED FOR AWILE AS THEY USE TO PARK ON THE

BING STREET SIDE OF OUR BUSINESS BUT IN LAST

COUPLE OF WEEKS, THEY ARE PARKING ON BAYPORT
AVE. PLEASE GET THIS TAKEN CARE OF.

THANK YOU
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
10-01
10:38:58
Abandoned
Vehicle

ANOTHER RV ARRIVED SOMETIME OVER MONDAY

EVENING AND ITS PARKED ON BAYPORT AVE ACROSS
FROM OUR BUSINESS. LICENSE PLATE . PLEASE
TAKE CARE OF THIS.
1691
Bayport
Ave, San
Carlos, CA
94070, USA
2025-
10-01
10:45:16
Abandoned
Vehicle
i made a ticket last wednesday and the RV is still on the street, we cannot see when turningnout of our parking lot
930
Commercial
St, San
Carlos, CA
94070, USA
2025-
12-08
07:43:56
Abandoned
Vehicle
White Recreational Vehicle 965 Center
St, San
Carlos, CA
94070, USA
2025-
12-16
08:09:49
Abandoned
Vehicle
Trailer has been here since the weekend and looks be broken down, unable to be towed away. The person living inside has started to throw trash in front of our place of business and needs to move immediately.
1300
Industrial
Rd,San
Carlos, CA
94070
2026-
01-06
10:54:40
Abandoned
Vehicle
Ford E350, Sundancer. This RV has been parked there for 6 weeks.
1655 Old
County
Rd,San
Carlos, CA
94070
2026-
01-14
10:33:09
Abandoned
Vehicle
This thing has been here for over a week. They need to go.

Sketchy black RV with tweakers going in and out.

Commercial
St, San
Carlos, CA
94070, USA
2026-
01-21
08:50:27
Abandoned
Vehicle
RV and car in front of it have been parked since December. This is hindering trash pickup and employee/vendor street parking. 1001 Center
St, San
Carlos, CA
94070, USA
2026-
01-22
08:37:57

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Abandoned
Vehicle
The car and trailer have been parked on the street for 3-4 days.

This area continues to bes a parking spot for RV's and trailers.

Can you get them to move on?
389
Glenwood
St, San
Carlos, CA
94070, USA
2026-
01-29
16:50:53
Abandoned
Vehicle
This RV parks on this street all the time and there are signs that clearly say no parking after 8pm
Bing St &
Old County
Rd, San
Carlos, CA
94070, USA
2026-
02-09
20:32:04
Abandoned
Vehicle
There are several RV's parked in front of 1000 and 1010 Commercial St. The boat had been abandon for more then six months a violation of San Carlos city code. There are also several RV's with people living in them which also haven't moved in months and in violation of several city codes.

This is the second complain regarding the same vehicles. The first complaint advised it was addressed however no vehicle was tagged, moved or towed, not one!! Not sure what I need to do to get this issue addressed, but it's becoming a problem for our properties in the area and nothing is being resolved.
1000
Commercial
St, San
Carlos, CA
94070, USA
2026-
04-01
16:07:39
Abandoned
Vehicle
This RV has been parked here for weeks, it makes truning south on Old County from Bransten a hazard as it block the view of on coming south bound traffic.
789 Old
County Rd,
San Carlos,
CA 94070,
USA
2026-
04-03
13:12:14
Abandoned
Vehicle
There are 4-5 abandon RV's and one abandon boat that have been parked on the south side of commercial Street just east of Old County Road. This is now the third request to get some assistance from the Sheriffs Office with having these RV's and boat moved or towed.

Dan Ortman has replied now two times saying these vehicles have been marked as abandoned however no vehicles have been moved or towed. The RV's and boat are in the exact same place they were when I first reported this complaint months ago. One of the RV's is now on the sidewalk blocking it with all types of garbage and the boat has been in the same place for months.

As a retired Police Officer of over 25 years this is a little frustrating that this matter has not been addressed when Dan Ortman advised it has been addressed and marked. It may have been marked but there was no follow through to have these vehicles removed or towed within the parameters of the law.

I'm well aware that there are numerous complaints city wide regrading these issue and may take time to address but this particular issues has persisted for months with no action. 1000
Commercial
St, San
Carlos, CA
94070, USA
2026-
04-16
12:26:29

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Consideration of Adopting a Resolution Approving a Memorandum of Understanding (MOU) with the City of Belmont to Improve the Emergency Access Gate Between Crestview Drive (San Carlos) and Hallmark Drive (Belmont).

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution approving a memorandum of understanding (MOU) between the City of San Carlos and the City of Belmont to share costs and responsibilities for improvements to the Crestview-Hallmark emergency access gate.

FISCAL IMPLICATIONS:

No additional appropriations are required at this time as costs associated with this action will be absorbed by the existing operating budget.

BACKGROUND:

Crestview Drive in San Carlos sits along a narrow ridge corridor with open space and residential structures on both sides that functionally create a wildland–urban interface (WUI) condition. The adjacent areas are the Pulgas Ridge Open Space Preserve (managed by Midpeninsula Regional Open Space District) to the west and City-owned open space lands and parkland to the east.

These areas are dense with vegetation, trails, and significant wildfire fuel loads.

North of the City of San Carlos (”San Carlos”) and City of Belmont (”Belmont”) border, Crestview Drive becomes Hallmark Drive in Belmont. The area east of Hallmark Drive is generally referred to as the Waterdog Lake Open Space and is equally dense with vegetation and trails.

On the Belmont side of the border, between the two cities, sits a 12-foot, wrought iron gate that was required by Belmont as a condition of development for the Hallmark subdivision in 1975 (”Crestview-Hallmark gate”). The Final Subdivision Map was approved in 1975, and the gate design was approved by the San Carlos Fire Chief to allow passage of emergency vehicles.

According to Belmont, the gate is currently owned and maintained by the Belmont Heights Civic Improvement Association (BHCIA), but documentation of gate ownership and maintenance responsibilities is not available.

Due to the dense vegetation and significant wildfire fuel loads that border Crestview and Hallmark Drives, the gate serves as critical emergency access and evacuation point in the event of a wildfire.

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In the wake of the January 2025 wildfires that tore through WUI zones in Los Angeles County and demolished entire neighborhoods, Redwood City-San Carlos Deputy Fire Chief Greg DaCunha ("DC DaCunha”) impressed upon Assistant City Manager Nil Blackburn (”ACM Blackburn”) the critical need to improve the Crestview-Hallmark gate for the residents on both sides of the gate.

In March 2025, ACM Blackburn reached out to Belmont City Manager Afshin Oskoui (”CM Oskoui”) to kick off discussions for improving emergency vehicle access at the Crestview- Hallmark gate. In April 2025, the San Carlos City Council adopted the 2025 Strategic Plan, which included an objective under the Climate Change Mitigation, Adaptation, and Resilience goal to ”prepare for emergencies and engage and educate the community about emergency preparedness and response.” An action item, “to partner with the City of Belmont to upgrade emergency vehicle access” at the Crestview-Hallmark gate was added to the 2025 Strategic Work Plan.

ANALYSIS:

The current Crestview-Hallmark gate configuration provides approximately nine inches of clearance on each side of a fire engine. While emergency vehicles can pass through, the constrained width limits maneuverability and does not allow for simultaneous ingress and egress during an emergency. The gate must be wide enough to allow ingress for emergency vehicles and egress for evacuating residents in the event a wildfire.

During initial outreach with Belmont, ACM Blackburn learned that improving emergency access at Crestview-Hallmark border had been attempted by Belmont dozens of times over the past 15 years. However, due to concerns voiced by residents and members of the BHCIA, plans to improve the gate were repeatedly abandoned.

To understand the Belmont community’s concerns, DC DaCunha and Public Works Director Steven Machida (“PWD Machida”) engaged in several meetings with their fire and public works peers in Belmont, and helped represent and lead both cities’ staff at a BHCIA meeting on May 21, 2025 to hear residents’ concerns and answer questions.

Listed below are the three primary concerns posited by the BHCIA and San Carlos and Belmont’s response.

1.Gate Width - BHCIA members questioned the need to widen the gate as long as a fire engine had enough room to pass.

San Carlos and Belmont’s Response – In a wildfire emergency, visibility could be compromised and seconds matter. Staff confirmed that dual-direction movement is critical to allow emergency access and resident evacuations and avoid choke-points.

2.Costs and Maintenance – BHCIA members did not want to bear the responsibility for improving and maintaining the gate. In past conversations between Belmont and the BHCIA, Belmont had suggested that the BHCIA should be responsible for the costs of improvement and maintenance.

San Carlos and Belmont’s Response – According to San Carlos staff, the benefits of providing emergency ingress and egress far outweigh any costs. The total one-time cost to improve gate access is estimated to be about $45,000. San Carlos and Belmont are prepared to evenly split the costs of improving emergency access for the safety and

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welfare of the surrounding community. The attached MOU (Attachment 2) clarifies that the cities, and not the HOA, will share project costs.

3.Security and Gate Use – BHCIA members expressed concern that efforts to improve emergency access would lead to an initiative to open the gate to through traffic permanently and change the nature of their quiet neighborhood. They also expressed concern that improvements to the gate could trigger state action to designate the area as a public thoroughfare.

San Carlos and Belmont’s Response – Access to the gate will be controlled by a multi- lock system. The gate will only be opened for an emergency. Emergency personnel (fire and police) from both cities will have access to secured padlocks. As to concerns that related to state action that may be triggered, staff haven’t found any information to substantiate this concern.

On November 19, 2025, Belmont staff held a follow-up meeting with the BHCIA to discuss gate design and other topics. According to Belmont, the BHCIA is now amenable to improvements to the Crestview-Hallmark gate. In response, Belmont prepared the MOU (Attachment 2) for San Carlos’ approval. The key terms of the MOU state:

Both San Carlos and Belmont will contribute 50% of the total estimated cost of $45,000 to improve the gate to provide enhanced emergency access. This includes the cost of the gate, installation, tree stump removals, boulder removal, planter relocation, and curb, gutter and sidewalk improvements, and 15% project contingency. Plans shall be approved by the San Carlos Public Works Director and Fire Chief, or their designees.
Belmont will construct the gate and improvements.
Belmont will maintain the gate and perform any emergency repairs. Belmont will provide advance notice to the City of San Carlos for non-emergency maintenance and receive approval from San Carlos prior to non-emergency work taking place. The notice shall include an itemized cost estimate with supporting documentation.

San Carlos and Belmont shall share 50% of the cost of any required maintenance (including staff time and materials).
Each City will be responsible to mark and maintain NO PARKING signs in front of the gate in their respective cities. Enforcement of the NO PARKING restrictions will occur within each City’s respective jurisdiction.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution approving an MOU with the City of Belmont to improve the emergency access gate between Crestview Drive and Hallmark Drive; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

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Respectfully submitted by:

Nil Blackburn, Interim City Manager
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Resolution

2. Proposed MOU with City of Belmont
Exhibit A to MOU - Gate Plan
Exhibit B to MOU - Estimate

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4 0
1 9
RESOLUTION NO. 2026 – ____

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

APPROVING A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE CITY OF

BELMONT TO IMPROVE THE EMERGENCY ACCESS GATE BETWEEN CRESTVIEW DRIVE (SAN CARLOS) AND HALLMARK DRIVE (BELMONT).

WHEREAS, Crestview Drive in San Carlos lies along a narrow ridge corridor within a wildland–urban interface (WUI), bordered by dense open space on both sides—including Pulgas Ridge Open Space Preserve to the west and City-owned lands to the east—and north of the San Carlos–Belmont boundary becomes Hallmark Drive, adjacent to the similarly vegetated Waterdog Lake Open Space; and
WHEREAS, a 12-foot wrought iron gate (“Crestview-Hallmark gate”) sits on the Belmont side of the border between the two cities, required by Belmont as a condition of the Hallmark subdivision’s 1975 approval; the gate design was approved by the San Carlos Fire Chief to allow emergency vehicle access; and
WHEREAS, according to Belmont, the gate is currently owned and maintained by the Belmont Heights Civic Improvement Association (BHCIA), but documentation of gate ownership and maintenance responsibilities is not available; and
WHEREAS, the current Crestview-Hallmark gate configuration provides approximately nine inches of clearance on each side of a fire engine. While emergency vehicles can pass through, the constrained width limits maneuverability and does not allow for simultaneous ingress and egress during an emergency. The gate must be wide enough to allow ingress for emergency vehicles and egress for evacuating residents in the event a wildfire; and
WHEREAS, the current Crestview-Hallmark gate provides only nine inches of clearance on each side of a fire engine, limiting maneuverability and preventing simultaneous ingress and egress; and
WHEREAS, sufficient width is needed to allow emergency vehicle access and resident evacuation during a wildfire, particularly given the dense vegetation and significant fuel loads along Crestview and Hallmark Drives, which make the gate a critical emergency access and evacuation point; and

WHEREAS, on November 19, 2025, Belmont staff held a follow-up meeting with the BHCIA to discuss gate design and other topics. According to Belmont, the BHCIA is now amenable to improvements to the Crestview-Hallmark gate; and WHEREAS, in response, Belmont prepared the MOU for San Carlos’ approval with the following key terms:

Both San Carlos and Belmont will contribute 50% of the total estimated cost of $45,000 to improve the gate to provide enhanced emergency access. This includes the cost of the gate, installation, tree stump removals, boulder removal, planter relocation, and curb, gutter and sidewalk improvements, and 15% project contingency. Plans shall be approved by the San Carlos Public Works Director and Fire Chief, or their designees.

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4 0
1 9
Belmont will construct the gate and improvements.
Belmont will maintain the gate and perform any emergency repairs. Belmont will provide advance notice to the City of San Carlos for non-emergency maintenance and receive approval from San Carlos prior to non-emergency work taking place. The notice shall include an itemized cost estimate with supporting documentation.

San Carlos and Belmont shall share 50% of the cost of any required maintenance (including staff time and materials).
Each City will be responsible to mark and maintain NO PARKING signs in front of the gate in their respective cities. Enforcement of the NO PARKING restrictions will occur within each City’s respective jurisdiction.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby approves a memorandum of understanding (MOU) between the City of San Carlos and the City of Belmont to share costs and responsibilities for improvements to the Crestview-Hallmark emergency access gate.
* * * * *
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 27th day of April 2026, 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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HALLMARK-CRESTVIEW GATE

BELMONT & SAN CARLOS

MEMORANDUM OF UNDERSTANDING
Summary: A barrier has existed at the terminus of Hallmark Drive and Crestview Drive since 1976. Although the gate was never accepted by either city for ownership or maintenance, both Belmont and San Carlos have an interest in the functionality of the gate during emergency events affecting the Hallmark-Crestview area. The objective of this MOU is to establish common expectations between to the two cities for sharing the cost of upgrading the gate for enhanced access of emergency response equipment, evacuations, during emergencies and for maintenance responsibilities going forward.

TERMS

1. Belmont and San Carlos will each contribute 50% of the total costs of upgrading the gate to a standard 20’ double fire access gate to provide enhanced access of emergency response equipment, evacuations, during emergencies. Costs shall include staff time and materials, estimated to be $44,374.88 (see Exhibit 1 – Plan and Exhibit 2 - Estimate). San Carlos’ contribution shall not exceed 50% of the approved project cost, in an amount not to exceed $25,000, unless expressly authorized in writing by San Carlos.

2. Belmont will provide an itemized invoice to San Carlos for their share of the work upon completion of the work and include actual costs incurred by Belmont, including back up documentation for all costs.

3. The Gate shall be constructed within the jurisdictional boundary of Belmont.

4. Belmont will be responsible for constructing the new gate and related improvements at the end of each cul-de-sac. Belmont will be responsible for construction compliance and site safety. The plans shall be approved by the San Carlos Public Works Director and Fire Chief or their designee.

5. Belmont Public Works crews will maintain the gate as needed to ensure functionality for its intended purposes, subject to Sections 5 and 6 of this Agreement.

6. Belmont will provide advance notice to the City of San Carlos for non-emergency maintenance and receive approval from San Carlos prior to non-emergency work

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taking place. The notice shall include an itemized cost estimate with supporting documentation. San Carlos and Belmont shall share 50% of the cost of any required maintenance (including staff time and materials).

7. Emergency repairs will be completed by Belmont Public Works. After completion of emergency repairs, Belmont will submit an itemized invoice to San Carlos with supporting documentation.

8. The gate will remain closed except during an emergency when either City’s first responders deem it necessary to open the gate for purposes of an evacuation or for emergency response equipment and access.

9. Emergency personnel from both cities will hold keys to the gate.

10.No keys to the gate will be provided to residents unless the resident is a first responder or employee of either City.

11.Each City will be responsible to mark and maintain NO PARKING in front of the gate in their respective cities. Enforcement of the NO PARKING restrictions will occur within each City’s respective jurisdiction.

12.This agreement will remain in effect for an initial period of five years from the effective date. Prior to the end of the initial period and subsequent periods (if applicable), the parties shall meet and confer to determine future maintenance and cost-sharing needs and contributions, and shall agree to extend or terminate this agreement.

13.If at any time during the duration of this agreement, the gate needs to be replaced, the parties shall in good faith negotiate and cooperate on the design and cost for the replacement gate.

14.Belmont to maintain insurance for general liability in an amount acceptable to San Carlos and name the City of San Carlos as an additional insured. Each City will indemnify, defend and hold harmless the other from claims arising out of its own negligent acts or omissions.

15.Either party can terminate this agreement with a 90-day written notice. Upon termination, each City shall remain responsible for its share of costs incurred prior to the effective date of termination. No further cost sharing shall be required unless agreed to in writing.

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Date and signature blocks

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Item Labor Source QTY Cost/Unit Cost
Fab/Install Gate All Fence 1 $10,070 $10,070
Stump Removal, Rock removal, planter relocation In House 1 $7,000 $7,000 Total $17,070
Item Caltrans Item Code Qty Cost/Unit Cost (Caltrans)
Hot Mix Asphalt (Type A) (Tons) 390132 13 596.47 7,754.11$ Remove Concrete (Curb, Gutter, and Sidewalk (CY) 731850 9 699.03 6,291.27$ Minor Concrete (Curb, Gutter, and Sidewalk) (CY) 731510 2.5 1753.81 4,384.53$ Total 18,429.91$
Mobilization 10% $3,549.99
Contingency 15% $5,857.48
Total $44,907.38
PCC/HMA Work (in-house)
Gate Installation
Soft Costs

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 27, 2026
ITEM TITLE: Consideration of Adopting a Resolution Approving the City Manager Employment Agreement.

RECOMMENDATION:

Staff recommend that the City Council adopt a Resolution approving the City Manager Employment Agreement.

FISCAL IMPLICATIONS:

There are no fiscal implications, and no additional funding is needed.

BACKGROUND:

Last year, Jeff Maltbie announced his intention to retire from his position as City Manager of the City of San Carlos after more than 30 years of public service. Mr. Maltbie’s last day of active service as City Manager was January 16, 2026.

In anticipation of Mr. Maltbie’s retirement, the City Council formed an ad-hoc subcommittee consisting of Council Member Sara McDowell and Vice Mayor Adam Rak. The Human Resources Division released a request for proposals (RFP) on July 30, 2025, for qualified executive search firms to lead a comprehensive recruitment process. Five firms were recommended for the sub- committee to interview. On October 15, 2025, the City Council approved a contract with Teri Black of Teri Black & Co., LLC to serve as the Executive Recruiter for this comprehensive search.

The recruitment activities included advertising, traditional and electronic marketing, extensive personal outreach, and the use of social media. Advertisements for the city manager recruitment were placed in the following publications and websites to attract a diverse candidate pool of qualified applicants:
International City/County Management Association website and e-newsletter PublicCEO.com
Western City website
Californiacitynews.com
League of Women in Government
Local Government Hispanic Network
National Forum for Black Public Administrators
International Network of Asian Public Administrators
Municipal Management Association of Northern California Municipal Management Association of Southern California

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The recruitment opened on December 23, 2025, and closed on January 25, 2026. The City received 33 applications for the position. Applicants were identified and screened by Teri Black & Company, LLC and the candidates who were considered the most ideally qualified for the City Manager opportunity were interviewed by the City Council in March 2026.

ANALYSIS:

As a result of the interview process, the City Council identified Kathy Kleinbaum as the top candidate at its meeting of March 9, 2026. Ms. Kleinbaum has more than two decades of municipal experience including her most recent roles of Assistant City Manager for the City of Belmont and Assistant City Manager for the City of San Mateo.

The proposed employment agreement is the result of discussions among the City Council. The proposed City Manager’s employment agreement reflects a salary and benefit package comparable to City Managers in other Bay Area agencies. Key features of the agreement include:
Start Date: May 11, 2026
Annual Salary: $373,500
Term: 3 years
Deferred Compensation: City to make payments of $1,150 per month into a qualifying 457 plan
Life Insurance: Term life insurance in the amount of $400,000 Auto Allowance $250 per month
Performance Evaluations: Council shall review and discuss the employee's performance and set performance goals for the employee on an annual basis with the assistance of a mutually agreed upon professional facilitator in or around March of each calendar year. Severance Pay: Twelve (12) months of employee’s monthly base pay plus the equivalent of twelve (12) months of COBRA benefits for employee and family. Pension, Health, and Welfare Benefits: City will provide Employee the same benefit programs, including medical, dental, life insurance, disability plans and post-employment benefits, on the same terms as offered to the City's current Management Group employees.

Before taking final action on the City Manager’s Employment Agreement, Government Code Section 3511(d), requires that the City Council orally report a summary of its recommended action in open session.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution approving the City Manager Employment Agreement; or

2. Do not accept the Resolution; or

3. Provide staff with alternative direction.

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Respectfully submitted by:

Gregory Rubens, City Attorney
Approved for submission by:
____________________________
Nil Blackburn, Interim City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution - City Manager Employment Agreement

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RESOLUTION NO. 2026 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS APPROVING THE CITY MANAGER EMPLOYMENT AGREEMENT.

WHEREAS, City Manager Jeff Maltbie announced his retirement effective at the end of day on January 16, 2026, and that his last day actively serving in the position will be the same day; and
WHEREAS, the City Council initiated a recruitment for a new City Manager. After receiving and reviewing numerous applications for the position, a short list of candidates was prepared, and the City Council interviewed candidates for the position; and WHEREAS, Kathy Kleinbaum was selected by the City Council to serve in the capacity of City Manager; and
WHEREAS, the City Council desires to appoint Kathy Kleinbaum to the position of City Manager and Kathy Kleinbaum desires to accept the appointment, and the City Council desires to execute an employment agreement to outline the salary, benefits, and other terms of employment for service as City Manager, a copy of which is attached hereto as Exhibit A; and.

WHEREAS, prior to approval of this Resolution the City Council orally reported a summary of its recommendations on the City Manager Employment Agreement in open session.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby approves the attached City Manager Employment Agreement. * * * * *
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 27th day of April 2026, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A – City Manager Employment Agreement
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SAN CARLOS AND KATHERINE KLEINBAUM

This Employment Agreement ("Agreement") is entered into by the City of San Carlos, a municipal corporation (hereinafter "City" or "Employer"), and Katherine Kleinbaum, ("Employee"). City and Employee may be collectively referred to herein as the "Parties." Recitals
A. Council desires to employ Employee in the position of City Manager and to provide for terms and conditions of employment for Employee; and
B. Employee desires to provide services as the City Manager for the City of San Carlos under the terms and conditions set forth herein; and
C. Employee is qualified to provide such services to the City.

Terms of Agreement
In consideration of the mutual covenants contained herein, the Parties agree as follows:

1. Appointment
The Council agrees to employ Employee as City Manager to perform the functions and duties of City Manager specified by state law and as may be articulated in the San Carlos Municipal Code, and to perform duties and functions as the Council may from time-to-time reasonably assign. This appointment and employment hereunder are "at-will" and may be terminated by the Council as provided in Section 4.

Nothing in this Agreement prevents, limits or otherwise interferes with the right of either party to terminate the services of Employee at any time, except as provided in Section 4.

2. Duties and Restrictions
Employee agrees to devote Employee's best efforts, attention, and skills to performance of the duties of the position of City Manager . Employee may not engage, without the express prior written consent of the City Council, in any other business duties or pursuits whatsoever or, directly or indirectly, render any services of a business, commercial or professional nature to any other person or organization, whether for compensation or otherwise, that might cause a conflict of interest with the Employer or that might otherwise interfere with the business or operations of the City or the satisfactory performance of Employee's duties.

3. Term
This Agreement is effective as of May 11, 2026 ("Effective Date") and will govern the terms and conditions of Employee's employment as of that date, and will remain in force and effect for a term of three (3) years until May 11, 2029 or until terminated under Section 4. On May 11, 2029, (“Termination Date”) this Agreement will automatically terminate. As of the Termination Date, all rights and benefits, including those described in Section 4 B. 2. will be of no force and effect, unless the Agreement is extended or amended by written agreement between the parties prior to the Termination Date.

4. Termination and Severance Pay
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Notwithstanding anything in this Agreement to the contrary, the term of this Agreement may be terminated as follows by a 3/5 vote of the full Council:

A. Voluntary Resignation. Employee may voluntarily resign from employment with the City. If Employee voluntarily resigns or retires from employment with the City, Employee is requested to give the City 60 days advance written notice, unless the parties agree otherwise. At the City’s option, Employee may be requested to work or requested not to report to work during the notice period. In either instance, Employee will receive Employee's regular compensation during the 60-day notice period. If City and Employee mutually agree to a shorter notice period, Employee will only be entitled to compensation during that mutually agreed upon amended notice period.

B. Termination by City. The City may terminate Employee in accordance with the following:

1. With Cause. This Agreement may be terminated by Council for cause or misconduct by Employee. Written notice must be provided to Employee at least 30 days before the termination date setting forth the grounds for termination. If requested by the Employee within 10 days of receipt of the notice, Council will hold a meeting to consider the termination. The meeting will occur within 20 days of the request or at such time as is mutually agreed upon by the Parties. If Employee requests, Council will hold a public session as provided in Government Code Section 54957(b). At the meeting, Council may determine whether or not Employee should be terminated. Employee is not entitled to severance pay if Council determines to terminate Employee for cause. For purposes of this Agreement, "cause or misconduct" means:
• Willful breach or habitual neglect of duty of any City policy or procedure or any term of this Agreement;
• The commission of any material act of dishonesty, fraud, misrepresentation or any other act of moral turpitude;
• Gross carelessness or misconduct;
• Conviction of any felony, or conviction of any misdemeanor arising out of Employee's duties under this agreement and involving a willful or intentional violation of law; • Misappropriation of public funds, or misuse or destruction of City property; • Acts or conduct that may present an immediate danger to the public health and safety; • Insubordination, which means the willful refusal to obey lawful direction of the Council; • Violation of City harassment or discrimination policies; • Abuse of office or position; or,
• Absence without leave or death.

2. Without Cause. The Parties agree that circumstances may arise under which Council may wish to terminate this Agreement without reference to specific issues or failure to perform on the part of Employee prior to the Termination Date. If Council terminates Employee without reference to specific cause or misconduct (as defined in Section 4.B.1 above) during the Term, then Council will provide Employee with notice of such decision and Employee will be entitled to severance pay equal to twelve Docusign Envelope ID: 1EE8B0EB-6E7A-4CB3-BD3F-CD7DB0D006C9

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(12) months’ salary calculated at Employee's base salary in effect at the time notice is given, payable in a lump sum as of Employee’s separation date. In addition, the City will pay COBRA benefits (medical, dental, vision) on a reimbursement basis for Employee and family for twelve (12) months, or until Employee secures alternate employment, whichever comes first. The Parties agree that any termination under this provision will not be initiated: (a) during the 90-day period succeeding any municipal election held in the City at which a member of the City Council is elected; or (b) during the 90-day period succeeding the appointment of any member to the City Council. Nothing in this provision prohibits the placement of Employee on paid administrative leave during any period during which termination without cause is prohibited by this provision. In addition, nothing in this provision prohibits Employee from resigning from employment with the City at any time. Payment of any severance will be made in accordance with Government Code Section 53260 and is contingent on Employee signing a full general release of all claims to include a mutual non-disparagement clause.

C. Pay Upon Termination. Upon termination of employment for any reason, Employee will be paid for services rendered through the date of termination, including payment for all accumulated and unused vacation leave at employee's base hourly rate of pay (determined by dividing employee's annual salary by 2,080 hours) as required by law.

5. Abuse of Office
A. In the event City places Employee on paid leave pending an investigation, Employee must fully reimburse such pay to the City if Employee is subsequently convicted of a crime involving an abuse of her office or position.

B. In the event City funds all or part of a legal criminal defense for Employee, Employee must fully reimburse such funds to the City if Employee is subsequently convicted of a crime involving an abuse.

C. In the event this Agreement is terminated and Employee receives a cash payment related to the termination, Employee must fully reimburse those funds to the City if Employee is subsequently convicted of a crime involving an abuse of Employee's office or position.

D. For purposes of this Section, "abuse of office or position" is defined in Government Code Section 53243.4.

6. Disability
If Employee is medically unable, with or without reasonable accommodation, to perform the essential functions of the position, City may terminate this Agreement subject to the severance pay requirements of Section 4.B.2 above.

7. Salary
A. City agrees to compensate Employee for services rendered in the position of City Manager at an annual salary of $373,500 effective as of the Effective Date. The salary paid to Employee will be paid in installments on the City's normal paydays, in accordance with the City's normal pay practices, and will be subject to customary withholding for taxes and other required or authorized deductions.

B. The Parties agree to conduct an annual salary review concurrently with the annual performance evaluation set forth in Section 14. The annual salary review will include consideration of those benefits Docusign Envelope ID: 1EE8B0EB-6E7A-4CB3-BD3F-CD7DB0D006C9

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provided to Employee under this Agreement. The City Council may, but is not required to, consider or approve merit increases or other compensation enhancements in conjunction with the annual salary review, and may consider cost of living adjustments greater than the adjustments offered to the Management Group.

C. Except as provided herein, merit and cost of living increases in salary, performance bonuses, or other compensation adjustments will be determined by the City Council in its sole discretion as part of Employee's annual performance evaluation. A minimum five percent (5%) base salary differential shall be maintained for the Employee above the top of the range of the highest-paid San Carlos employed direct-report.

8. Pension, Health and Welfare Benefits
Unless modified by this Agreement, City will provide Employee the same benefit programs, including medical, dental, life insurance, disability plans and post-employment benefits, on the same terms as offered to the City's current Management Group employees.

9. Vacation and Administrative Leaves
Employee will be entitled to accrue vacation and administrative leaves at the rate offered to the Management Group at the rate granted to management employees with twenty-five (25) years of service as of the Effective Date.

10. Life Insurance The City will provide Employee with term life insurance in the amount of $400,000.

Employee understands a portion of this benefit is taxable and that he is responsible for remitting any tax owed.

11. Deferred Compensation
A. The City will provide Employee with access to a qualified deferred compensation plan under Internal Revenue Code Section 457, into which Employee may deposit funds from base salary at Employee's discretion and as allowed by law. The City agrees to make monthly payments of $1,150 into the deferred compensation plan. The contributions will not be deemed to increase Employee's base salary for any purpose.

B. The City will provide an Internal Revenue Code Section 401(a) plan into which employee may elect to make contributions in accordance with the plan. The City will make no contributions to Employee's account.

12. Management Benefits
A. Automobile Allowance. City will pay Employee a monthly automobile allowance of $250. This automobile allowance is intended to fully compensate Employee for the use of Employee's personal vehicle in performing City business.

B. Electronic Devices. The City agrees to provide Employee, with a laptop and other necessary peripheral devices.

C. Dues and Subscriptions. The City agrees to budget for and to pay for professional dues and subscriptions of Employee necessary for her continuation and full participation in national, regional, Docusign Envelope ID: 1EE8B0EB-6E7A-4CB3-BD3F-CD7DB0D006C9

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state, and local associations and organizations that are necessary and desirable for Employee's continued professional participation, growth and advancement, and for the good of the City.

D. Professional Development.

1. The City will budget and pay for the costs associated with maintaining Employee's membership in the ICMA.

2. Except as provided herein, the City will budget for and to pay for expenses of Employee for professional and official travel, meeting, and other occasions to continue the professional development of Employee, and to adequately pursue necessary official functions for the City, including but not limited to the ICMA and Cal Cities meetings and conferences, and such other national, regional, state and local governmental groups and committees (including community and civic organizations) thereof which Employee serves as a member, and for expenses of Employee for short courses, institutes, executive coaching, and seminars that are necessary for her professional development and for the good of the City.

Employee understands and agrees these professional development expenses must be made in accordance with City policies, are subject to budget constraints, and that the Council retains discretion to limit expenditures under this paragraph.

13. Work Hours
The position of City Manager is an exempt employee position. Employee is expected to work the hours necessary to fulfill the obligations of the City Manager position. As the chief executive officer of the City, the City Manager is expected to be available at all times and is generally expected to be physically present in the workplace during normal business hours on most days. In recognition of the position's demands, the Council wishes to provide Employee with the flexibility to determine Employee's own work schedule so long as Employee fulfills all work-related obligations. The Parties agree that Employee may therefore set Employee's own regular work schedule provided that this schedule averages at least 8 hours per regular workday (including leave taken) over a two-week period.

14. Performance Evaluation
A. City and Employee acknowledge that periodic performance evaluations are an important means by which City and Employee may ensure effective communications regarding expectations and performance. Toward this end, the Council shall review and discuss Employee's performance and set performance goals for Employee on an annual basis with the assistance of a mutually agreed upon professional facilitator in or around March of each calendar year . Employee acknowledges and accepts the fact that Council has the right to schedule an evaluation session more frequently than once a year .

B. Employee or Council may request and schedule the annual performance evaluation as appropriate under Council agenda procedures or as otherwise directed by the Council.

15. Bonds
City will pay the full cost of any fidelity or other bonds required of Employee by law or ordinance.

16. Indemnification City will defend, hold harmless, and indemnify Employee against any claim, demand, judgment or action of any type or kind arising out of an act or omission occurring within the course and scope of her employment to the extent required by Government Code Sections 825 and 995. In its sole Docusign Envelope ID: 1EE8B0EB-6E7A-4CB3-BD3F-CD7DB0D006C9

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discretion, the City may compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered therefrom.

17. Notices
Notices to Employee must be served (1) to Employee personally, or (2) by deposit in the custody of the United States Postal Service, postage prepaid, to Employee's home address on file with the City. Notice is deemed given as of the date of personal service, delivery or deposit, respectively. Notices to the City must be (1) delivered to the City Clerk personally, (2) delivered to the City Clerk's Office during normal business hours, or (3) deposited in the custody of the United States Postal Service, postage prepaid, address to the City Clerk.

18. Non-Disclosure of Confidential Information
Employee must not, during the term of this Agreement, or any time thereafter, impart to anyone any confidential information which Employee may acquire in the performance of her duties as city manager under this Agreement, except as permitted by the City or under compulsion of law.

19. General Provisions
A. Construction. "Herein" and other similar compounds of the word "here" mean this entire instrument and not any particular provision. Section headings and numbers have been inserted for convenience of reference only and are of no legal effect. In the event of any conflict between any headings or numbers and the text of this Agreement, the text controls.

B. Counterparts. This Agreement may be executed in one or more counterparts, each of which is considered an original, and all of which taken together are considered one and the same instrument.

C. Waiver . Waiver by either party of any term or condition of this Agreement or any breach is not a waiver of any other term or condition or breach of the Agreement.

D. Execution and Applicable Law. This Agreement has been executed in California and is to be governed in accordance with the laws of the State of California in every respect. The Parties agree that venue for any action arising out of this Agreement will be a court of competent jurisdiction siting in or with jurisdiction over actions arising in San Mateo County.

E. Amendment. This Agreement may not be amended or modified except by a written instrument executed by the parties.

F. Entire Agreement. This Agreement contains all of the terms agreed upon by the City and Employee with respect to the subject matter of this Agreement and supersedes all prior agreements, arrangements and communications between the Parties concerning such subject matter, whether oral or written, including but not limited to information published in the job announcement and other recruiting documents pertaining to compensation and benefits of the city manager position.

G. Mediation. Neither party may file any legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The Parties will pay the costs of the mediator, if any, equally. If a mediated settlement is reached, neither party will be deemed the prevailing party for purposes of the settlement and each party will bear its own legal costs.

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H. Attorney's Fees. In the event of litigation, reasonable attorney's fees shall be awarded to the prevailing party.

I. Successors. This agreement is binding upon and inure to the benefit of the heirs at law and executors of Employee.

J. Severance of Provisions. If any provision, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, is considered severable, not affected, and remains in full force and effect.

IN WITNESS WHEREOF, the City and Employee do hereby agree to the full performance of the terms set forth herein. City of San Carlos

Employee City

__________________________________ ____________________________________ Katherine Kleinbaum Pranita Venkatesh, Mayor

Approved as to Form:

________________________________
Gregory J. Rubens, City Attorney
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